Marketing Plan

High Speed Broad Band (UniFi)

[Type text]
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MARKETING PLAN – TM (HSBB)
2010

Table of Contents
1.0 Executive Summary............................................................................................................. 1
2.1 Market Summary...............................................................................................................4
2.1.1 Market Demographics................................................................................................4

Appendix

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2010

1.0 Executive Summary

High Speed Broadband (HSBB) is a broadband service that offers bandwidth

delivered at network speeds of 10Mbps and above. Unlike normal broadband
connections which deliver bandwidth at network speeds ranging between 256kbps
and 4Mbps, basic HSCC packages will eventually allow Malaysians to experience
high speed internet of up to 100 times faster than the usual rate while business will
be able to have maximum speeds of up to 1,000 Mbps (1Gbps). HSBB will initially
be deployed via DSL in Klang Valley, Iskandar Malaysia and key industrial zones
throughout the country. It is expected that 1.3 million premises will have the ability
to access HSBB coverage by end 2012.

HSBB is the product of Telekom Malaysia “TM”. TM was established as the

Telecommunications Department of Malaya in 1946, TM charted a growth path
saw its privatization in 1987 and listing on the bursa securities in 1990. Over the
years, TM has evolved to become the largest integrated communications solutions
provider in Malaysia and one of Asia’s leading communications companies.

Today, TM has 23,600 dedicated employees across the nation and offers a
comprehensive range of services and solutions in broadband, data and fixed line.
With its new vision to become Malaysia’s leading new generation communications
provider. TM is moving up the value chain to embrace fully the needs of its 4.3
million fixed line customers and 1.6 million broadband customers and provide them
with innovative services in an environment of service excellence.

TM is now facilitating Malaysia’s entry into a knowledge economy. In September

2008, it signed a Public-Private Partnership with the Government to develop high-
speed broadband (HSBB) network and services that will deliver speeds of 10Mbps
(Megabits per second) to 100.0Mbps via fibre optic infrastructure to residential
customers and up to 1.0Gbps (Gigabits per second) to high economic impact

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2010

businesses. The infrastructure needed will be developed over a period of 10 years,

with the Government investing RM2.4 billion and TM, RM8.9 billion.

Under the HSBB initiative, 1.3 million premises are to have high-speed broadband
access by 2012. TM is responsible for the last mile access network to homes and
businesses, and will employ three main technologies to achieve this: Fibre-To-The-
Home (FTTH), Ethernet-To-The-Home (ETTH) and Very High-Speed Digital
Subscriber Line (VDSL2). Complementing this, TM will roll out its core Next-
Generation Network (NGN) backbone based on an all-IP platform as well as
expand the nation’s global capacities via new international gateways for enhanced
connectivity and network efficiency. The latest consortium cable spearheaded by
TM, the Asia America Gateway (AAG), will connect Malaysia directly to the US,
with landing points in the Philippines, Vietnam, Thailand, Brunei, Hong Kong and
Singapore. To be completed mid-2009, AAG will position TM as a regional IP hub
for ISPs to gain connectivity to the US. Within Malaysia, TM ensures the highest
level of customer experience and convenience through several channels. It has an
established and strategically distributed network of TMpoints that serve as one-
stop centres at which customers can check and pay their bills, enquire on and
apply for new services. Enhancing the use of the IT platform, TM Online allows
customers to perform these same actions on a secure, customized self-service
portal. TM is committed to achieving excellent customer service and conducts
regular customer satisfaction survey for feedback. Its achievements as a service
provider is reflected in a number of awards bestowed.

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2.1 Market Summary

2.1.1 Market Demographics

The profile for the existing TM customers consist of the following;

Geographic, demographics and behavior factors.

a) Geographic
 TM has identified and divided its Broadband Deployment into 3
zones:

I. Zone 1 – High economic zone area

II. Zone 2 – Urban/Suburban
III. Zone 3 – rural area

 In Quarter 1 2010, TM will launch its HSBB to these areas, namely

Shah Alam, Taman Tun Dr Ismail, Subang Jaya and Bangsar.
 The Total Targeted population in Q1 2010 is 150,000 premises.

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3 Demographic

 Based on survey done by Malaysian Communications and

Multimedia Commission (MCMC) on internet users, 51.9% of
Malaysian Internet home users are male and 48.1% are female.
Distribution of age for home internet users are as below:

 TM will use the above data as a basis of developing a new HSBB

product. Target customers are those in the age of 20 years – 24 years
and 35 years to 39 years. In brief, TM shall market its HSBB product to
customer of age ranging from 20 – 39 years.

 In term of urban-rural distribution, TM shall concentrate on urban users

as they outnumber rural users 6 to 1. Refer to survey result done by
MCMC in 2008 below:

90
80
70
60
50 Urban (%)
40 Rural (%)
30
20
10
0
2005 2006 2008

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a. Behaviors Factors
 Customers prefer to use broadband to connect to internet even though
they are given a choice to connect through both dial up and broad
band.
 Here, TM may use customer preference behavior to introduce a new
product in the market. The product should be better than the existing
broadband available in the market.

% Connection Preference

1%

25%

 TM should make use of customer preferences of

using broadband to promote another product. The
product can be the add on to the High Speed Broad
73.9
Band (HSBB) or a value added services to HSBB
such as IPTV, Game Online and etc.

2.1.2 Market Needs

With the bandwidth provided by HSBB, a whole new lifestyle

experience will open up for Malaysians in terms of providing
greater opportunities and access to rich content like never

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2010

before in entertainment, gaming, education, business, work,

health, communications, services and much more.

Consumers will be able to:

 download large (file size) DVD quality movies and music

video clips in a matter of minutes or even a few seconds
depending on the file size.
 enjoy a new TV experience through TV over broadband
(IPTV) with access to TV channels over a private network in
high definition format with high stability. IPTV also offers
the ability for high content user interactivity.
 work from home and stay in touch with the office, clients and
business associates anywhere in the world in real time
through high speed Internet, video and voice connections.
 have a richer, secure shopping and e-commerce experience
from the comfort of their homes by accessing virtual shops
on-line around the world through real time video and chat.
 play on-line games simultaneously with anyone in the world
in real time.
 access educational services such as ‘study on-line’ and
participate in virtual classroom discussions with their tutors
anywhere in the world as well as enjoy a rich research
experience by being able to download books, journals and
magazines in a matter of minutes.

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 receive medical diagnosis and advice in the comfort of their

homes or offices from medical practioners locally and abroad
in real time through high speed Internet, high definition video
and voice connections.

2.1.3 Market Trends

 Current market trend for access in Asia Pacific is largely

driven by Cellular and Broadband and TM expects the
upward trend will continue.
 Access demand is fueled by demand for IP=based
services and bandwidth hungry applications such as
IPTV, High Speed broadband and its related product.
 Consumer Internet usage is shaped by the ever
increasing use of peer-to-peer applications. The lack of
domestic content in most countries will further accentuate
this behavior.

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2.1.3 Market Growth

Malaysia’s broadband penetration rate is very low compared

to other countries such as Korea, Japan, Hong Kong and
Singapore. As of August 2009, broadband penetration rate is
only 25% as compared to these countries, which recorded a
penetration rate ranging from 75% and above.

By year end 2009, 150,000 premises are expected can enjoy

HSBB and by end 2010, it is expected 1.3 million premises
are HSBB ready.

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2010

The implementation of nationwide broadband services will

significantly contribute to the development of the country’s
social-economic development. In the past, water supply and
electricity were important factors in attracting foreign
investment and today, broadband connectivity has become a
basic necessity.

2.2 SWOT Analysis

2.2.1 Strength

 At present, TM has the largest established fixed

communications network in Malaysia with reach

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2010

throughout the country. The fibre network required for

HSBB can be over-laid on the existing network to
bring about lowered costs and speed of deployment.
 On top of that, TM has the experience of managing
and maintaining large network required. In term of
financing capability, TM has the financial capability to
undertake such a large project. Apart from that,
currently TM has the largest fixed broadband
customer base of 1.4 Million (Sept 2009) which is
ready to migrate to HSBB.
 Q3 2009 revenue shows incremental revenue of 2.6%
as compared to Q3 2008, mainly contributed by non
voice services such as broadband, IPVPN and IP
Value.
 The group’s strong cash flow position strengthened
further over the last three years, mainly contributed by
aggressive collection activities by Credit Management
Unit and Account Management. The balance sheet
shows ample liquidity and remains strong with healthy
cash and reasonable gearing level.

2.2.2 Weakness

 Despite of having the largest established fixed

telecommunication network, TM might need to
replace some of its old network and it might require
high investment in replacing this cable. Customers
may not be able to enjoy the high speed broad band if
these cables cannot provide throughput at the
maximum level of capacity.

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2010

 The existing agent shall be equipped with product

knowledge so that they are able to explain the HSBB
products when doing their promotion. Based on past
experiences, the agent keep on replacing their
salesperson and the new salesperson is unable to
explain in details about TM products which lead to
confusion to customers.

 Customers are not happy with TM Customer Service

where they did not get what they asked and wanted.
Long awaiting time will lead to customer
dissatisfaction.

 Only selected area can enjoy the HSBB Broadband

and IPTV due to networking problem. This will lead to
customer frustration over TM services.

2.2.3 Opportunities

 Based on research done by International Data Centre

(IDC), demand for notebook and desktop will increase
from year to year and with the increase of demand for
computer, there will be an increase in broad band
users.

 Based on table xx there are 12% gap between PC

penetration rate and current Broad Band penetration
rate and this can give TM the opportunities to market its
HSBB products.

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2010

BB & PC Penetration at National Level 2005A-2011F)

 Government incentives to TM where it pays TM RM1

for every ringgit it invest to HSBB will give TM
opportunities to explore more on HSBB market as the
Source: IDC return is guaranteed even though the revenue from
customers subscription is yet generated.

2.2.4 Threats

 Customers’ readiness to invest in new product as

HSBB price for HSBB product is higher compared to
current broadband offerings by TM.
 Future and potential competition from content providers
such as Astro. With IPTV roll out, users can opt for
IPTV or stay with Astro.
 Economic slowdown that could have a negative effect
on people’s spending on broadband products where
might not considered as their necessities.
 Site readiness where not all area in Malaysia can be
offered with HSBB product due to poor networking
Source: especially in rural area.
*MCMC Yearly Report
**PC Penetration is taken from
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2010

2.3 Competition

TM is forming its own High Speed Broadband market in all states of Malaysia.
However, government of Malaysia will to TM to accommodate a second
provider of high speed broadband over fibre optic networks to the home.

A Pahang state-backed company – Jalur Lebar Nasional Sdn Bhd (Jalenas)

can be the sole and it has planned to rollout to other cities nationwide.

TM has to analyze its competitor strategies and it needs to gather information

on each competitor’s strength and weaknesses. Generally, TM should
monitor three variables when analyzing its competitors:

a. The competitor’s share of the target market

b. The percentage of customers who named the competitor in
responding to the statement “Name of the company that comes to
mind in this industry”.
c. The percentage of customers who named the competitors in
responding to the statement “Name of the company from which
you would prefer to buy the products”.

While trying to expand its total market, TM should defense its

market share through either frontal attack, flank attack,
encirclement attack or Bypass attack. At the same time, TM must
know how to hold current customers and win a new share of new
customers. The existing loyalty program (Exhibit 1 ) should be
more attractive and customer satisfaction index should be improve
from time to time.

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2010

Exclusive Monthly Rewards

 
Once you are a TM Rewards online member, you get to enjoy additional exclusive discounts and
privileges every month. These exclusive discounts and privileges will not be available elsewhere and is
exclusive for members only.

To redeem is easy, simply view the available online vouchers, click the preferred vouchers and print it for
easy redemption at the outlets. Some offers are even redeemable at selected partner’s website.

Exhibit 1- TM Rewards – Customer Loyalty Program

(http://tmrewards.com.my)

2.4 Product Offerings

TM will offer various product which use HSBB as a platform. They are:

a. High Speed Internet – up to 20 Mbps

b. IPTV – customer can enjoy watching television via broadband

c. Video on demand

d. Online games

e. Digital Lifestyle

2.5 Key to success

The key to success are designing and producing products that can fulfill the
customers’ need. In addition to that, the ability of TM to ensure the products
offered are at high quality is very crucial as customers’ expectation on HSBB

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2010

is very high. Furthermore, customers are willing to pay for high price provided
they are satisfied with the quality.

TM must ensure the HSBB products are zero defect products where no
complaint is received due to dissatisfaction over its speed or break down of
devices.

Most of all, customer service of TM shall play an important roles in promoting

the products as they must be well verse with the products and able to explain
when ask by the customers. If these keys to success are achieved, TM
investments in HSBB are worthwhile and profitable.

2.6 Critical Issues

As a new product, TM need to identify the power of buyers, power of TM as a

suppliers, Industry rivalry, threat of substitutes and threat of new entrants.
Refer to Table Exhibit 2

Exhibit 2- Five Forces Analysis

This is the single most powerful aspect of the company’s business.

Power of
All of its success depends on customers’ business; MISC must
Buyers
continue to provide obvious value.
As the largest Telecommunication service provider in Malaysia

Power of with its network backbone and advanced technology throughout

Suppliers Malaysia, TM is ready to embark on a new generation product
such as HSBB.

Industry Rivalry in the industry can be from other wireless broadband

Rivalry providers such as P1 Wi Max, Celcom, Maxis and Red Tones.
Threat of Substitute product is a wireless product such as P1 Wimax,
Substitutes

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2010

Celcom and Red Tones.

The industry is a capital-intensive one, and even a new entrant has
Threat of New to use TM backbone for their wireless.
Entrants

Apart from above, TM needs to:

 Constantly monitor customer satisfaction, ensuring all issues related to

HSBB are resolved within the acceptable time frame by customers.

3.0 Marketing Strategy

HSBB and IPTV are new products in the market. Although TM is well known for

its existing broadband product such as streamyx, but as for HSBB and IPTV, TM

must decide when to enter the market.

At Introduction Stage, promotional expenditures are high and the profit may be

low because of the need to inform potential customers on the new product in the

market, induce product trial and secure distribution in retail outlet. However, as a

pioneer, TM will be able to strengthen and expand its market share and the early

users will recall TM HSBB product and IPTV if the product satisfies them.

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2010

Since TM has its own Product Development Division, the product managers

might also try to stimulate new sales by modifying its existing marketing program

elements such as below:

a. Price – Would a price cut attract new buyers?

b. Distribution – Can the company obtain more product support and display

in existing outlet? Can the company introduce the product into new

distribution channel? At present, TM has it Sales Channel Management

Division to recruit, train and monitor TM Channel performance.

c. Advertising – Should the advertising expenditure be increased? Should

the timing, frequency or size of advertisement be changed?

d. Size of promotion - Should the company step up sales promotion –

rebates, gifts or contests?

e. Personal Selling – Should the number or quality of salesperson be

increased? Should the sales force incentives be revised? With the

realignment of Line of Business in TM, sales person should concentrate

on getting revenue through aggressive sales and in order to encourage

non sales staffs involvement in revenue generation activities, Program

Kenalkan Rakan dan Keluarga has been introduced where commission

will be paid to the staffs based on the product sold.

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2010

f. Services – Can the company speed up delivery? Can it extend more

technical assistance to customers?

3.1 Objectives

TM will try to penetrate the market to win back broadband customers which had

been migrated to P1 Wimax and this company will use this product as a platform

to deliver cutting-edge communications, information and entertainment services

throughout the nation.

TM marketing objectives is to provide HSSB services to premises nationwide by

the end of 2012. The nationwide areas which will be targeted to be served

include Inner Klang Valley, Wilayah Pembangunan Iskandar Johor Bahru, all

state capitals, higher learning institution, key industrial zones throughout the

country and entry point like airports and ports

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TM has set aggressive but achievable objectives for the first and second years of

HSBB product and IPTV market entry:

 First Year Objectives

TM aiming for 350,000 premises installed and subscribes its HSBB product

and IPTV Services.

 Second Year Objectives

Our second year objectives is to market value added services to HSBB

products such as Game Online, Home Surveillance and more IPTV channel

and to increase revenue from these products by 30%.

In a highly competitive environment that TM is facing now and to be Malaysia’s

leading new generation as a communication provider, TM is driven to deliver

value to its stakeholders and continue to give quality enhancements and

innovations in terms of customer service. TM is also creating innovations in

telecommunication to embrace customer needs and produce excellence

execution. This is to correspond with the TM mission which is:

i. to strive towards customer service excellence and operational efficiency

ii. to enrich consumer lifestyle and experience by providing innovative new

generation services

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2010

iii. to improve performance of our business customers by providing high

value information and communications solutions

iv. to deliver value for stakeholders by generating shareholders value and

supporting Malaysia’s growth and development

HSSB services are expected to provide capabilities and capacities which can

support the heavy use from all sorts of the applications and services required by

the end users in these areas.

In order to achieve the above mentioned, TM will create awareness regarding

this product to increase their sales and market share among competitors. With

the launch of new product, TM is hoping that it will attract new clients and

strengthen it’s relationships with the existing clients

TM also expected that by producing these products to the market, it can broaden

TM geographic base since the product use the high speed networking throughout

the nation.

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3.2 Financial Target

TM currently has more than 1.4 million Streamyx customers (excluding

Streamyx Zone customers) as at Q2 2009. To this end, TM has embarked

on various initiatives which include introduction of more customer touch

points for greater accessibility to TM’s products and services,

implementation of innovative approaches for speedier service. TM

expected to reach RM200million sales with these new products. As at end

of Q2 2009, the Government has reimbursed TM a total of RM665mil for

work completed. This has covered the expenditure of the new products.

With the launch of these products and the help from TM hope it will

increase the overall net sales and return on investment of the company.

3.3 Target Market

With the increase development of telecommunications and internet

industries in Malaysia, TM wants it’s product to penetrate to more users in

broader market as discuss before. Market segmentation can be done by

TM in many ways. It can focus on three common types which is by

geographical, demographical or psychographic.

i. Geographical segmentation

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By geographical segmentation, market is divided into different

geographical units, like nations, states, countries, cities etc. For

TM, by dividing their market target into these different units, it can

help TM to increase their sales and compete with their competitors.

For example, networking and broadband are widely use in cities

compared to villages.

ii. Demographic segmentation

By using demographic segmentation, market is divided into groups

which use the basis of variables for example age, life cycle,

occupation, education etc. TM can use these variables to focus in

doing their marketing strategy. As an example, since student in

higher education centre are the consumer who use a lot of internet

service and broadband, so it will be best for TM to focus their new

product to be marketed in that area and other area which are can

fully use these new product

iii. Psychographic segmentation

In this segmentation, buyers can be divided into different groups on

the basis of lifestyle or personality or values. People within the

same demographic group can exhibit very different psychographic

profiles. TM can use this marketing segmentation in promoting the

high speed networking since today activities and economy depend

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on fast and effective networking within the nation and also

worldwide.

Based on the above, TM strategy will be based on a positioning of product

differentiation. Its primary consumer target for High Speed Broadband and IPTV

are those customers with age ranging from 20 – 39 years old, middle to upper

income professionals who need to use high speed broadband to access data and

to do a web based transaction at home. Those early 20s is the target market for

Game Online and we will work together with Sony and to come out with a special

device so that the consumers can play the game online interactively.

And, secondary consumer target is housewives and pensioners. We will

accommodate them by providing a real time banking transaction where they don’t

need to go to the bank for banking and passbook update. We will offer more

IPTV channel at a reasonable price to them and they can enjoy watching movies

without any service interruption especially during raining. They can download and

record any movies at reasonable price at their time convenient.

Each of marketing mix strategies conveys TM’s differentiation to these target

market of segments.

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3.4 Positioning

Using product differentiation, TM will position itself as the leader in internet and

multimedia services.TM will use their experience to give the best services and

gain advantage over the competition.TM is a largest communications solution

provider in Malaysia.TM management must able to use their capability to connect

all Malaysian to the spellbinding world of entertainment in a more time and cost

effective manner. Our marketing will focus on the high speed broadband, IPTV

and value added services, adds on to the High Speed Broadband subscribers.

3.5 Strategies

The objective is to position TM as the leader in internet and multimedia services,

serving the domestic market. The first marketing strategy that TM use is to

create customer awareness about the broadband and IPTV product their sell. TM

will offered extra value lifestyle package to their customers, upgrade the

broadband speed and more coverage in this country.

The second marketing method will be advertisements placed in mass media. TM

has to advertise their products in television, radio and website to compete with

their competitors. The advertisements must can attract the new generation and

create their awareness about new technologies in internet and multimedia

services. TM must be a leader in their segment by providing excellent services.

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3.6 Marketing Mix

As competition continues to increase well past the point at which nearly everyone

believed it could not surpass, the marketing mix continues to become even more

significant for marketers and their employers. The four Ps - product, price, place

and promotion - provide a method of breaking down the marketing mix into

manageable and maneuverable components. As more marketers seek the

attention of more customers in a relatively finite number of outlets, close

management of each “p” is critical to the success of a product, service or

business.

a) Product Strategy

The product, obviously, is that thing being sold. It does not need to be a

tangible good, it can also be a service. In short, it is the thing, commodity or

service that an organization exchanges with consumers for money. Its sale or

function keeps the organization alive and growing. Products that TM had

focus is broadband and IPTV. TM will ensure their product has extra value of

lifestyle package. TM also has to upgrade the speed for their broadband and

has to upgrade their coverage all over the country to compete with their

competitors. This product also will provide the right connections to help

people close one close.

b) Price Strategy

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Consumer products today are priced according to demographics of the target

market and how long the producer believes the product life cycle will be. TM

also use price responding to competitors to ensure they leads the segment of

offering the best internet and multimedia services. TM has to ensure their

price can compete their competitor price. Customers will choose the products

that have suitable price and excellent services.

c) Place Strategy

The place in which the product will be offered will affect the type of consumer

it can attract and the price consumers are willing to pay.

d) Promotion Strategy

Fischer and Keith (2001) report that promotion has four components, and that

its primary purpose is to provide a method of communication with the

consumer. Those four components are:

 Public Relations

 Advertising

 Incentives

 Atmospherics (Fischer and Keith, 2001; p. 4Ps).

“Public relations includes publicity and personal contact. It is the interaction

between” (Fischer and Keith, 2001; p. 4Ps) the supplier and the consumer,

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2010

and it is the driving force behind efforts to discover the true needs of

customers. Advertising is the publicity that marketers purchase, and it is the

area of marketing that often is the most visible. This type of publicity is that

which marketers can slant to whatever light they choose, as long as their

claims honestly reflect the qualities and uses of their product. TM will use

mass media like television and radio to promote their services and to attract

new generation to used broadband. Incentives include all the “pulls” that

marketers attach to products either at the time of introduction or at other times

in which a specific product needs rejuvenation with consumers. In the case of

TM, incentives are grounded in superlative customer service and made even

more attractive by lower rates than many of its competitors charge.

“Atmospherics consist of ambience and environment of the ‘place.’ It deals

with ‘comfort zones’ and ‘comfort levels’” (Fischer and Keith, 2001; p. 4Ps).

They are connected with place but are not limited to it. An example is that of

a user-friendly web site or the ease with which TM customers can manage

their value and supply chains.

Neither of the four Ps can stand alone in contributing to the success of a

product, at least not on a long-term basis. Each, however, can contribute to

the product’s success and profitability for the producer (Joseph, 2001). Each

of the four Ps needs to be addressed and managed as a valuable contributor

to the product’s - and the company’s - long term success.

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3.7 Marketing Research

TM has to do their research about their products either their products can

give maximum satisfaction to their customers or not. TM also has to use

other method like survey and they will get the feedback what their

customer needs from them and has led to several improvements. TM

survey not only with its own customers, but also with other dedicated and

“newbie” users.

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4.0 Financial Performance Assessment

4.1 Break even Analysis

The break even analysis indicates that RM 5,843,250.64 is required in

monthly sales revenue to reach the breakeven point.

BREAKEVEN ANALYSIS

Monthly Unit Break Even 21,803

Monthly Sales Break Even RM 5,843,250.64

ASSUMPTIONS

Average per unit Revenue RM 268

Average per unit Variable Costs RM 98.35

Estimated monthly Fixed Cost RM 3,698,908.48

Exhibit 3: Breakeven Analysis

4.2 Sales Forecast

Targeted customers for HSBB Broadband is those customers staying at

high end areas such as Bangsar, Taman Tun Dr Ismail, USJ and selected
Shah Alam areas.

Based on survey done, in the first year of its roll out, 687, 181 existing TM
Streamyx customers are willing to take up the HSBB offers and out of
these customers, it is expected than 250, 000 customers will apply for
IPTV services. Forecasted number of customers is shown in Exhibit 4.

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MARKETING PLAN – TM (HSBB)
2010

Exhibit 4: Forecasted No of Customers for HSBB Broadband and IPTV

In term of revenue, it is forecasted that TM will enjoy fruitful revenue of RM

1139.49 Mil in the first year of HSBB product roll out and within five years of its
operations, HSBB product will record a Cumulative Average of Growth Rate
(CAGR) of 13.90% for its broadband and 22.96% for IPTV respectively.

With more channels offer to customers, it is expected that customers dependency

on ASTRO TV will be reduced as IPTV will have no effect in a raining day.
Forecasted Revenue for HSBB Broadband and IPTV are shown in Exhibit 5.

Exhibit 5: Forecasted Revenue for HSBB Broadband and IPTV

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MARKETING PLAN – TM (HSBB)
2010

4.3 Expense Forecast

As shown in Exhibit 6, Table will allocate high portion of expenditure on

Subscriber equipment as TM will bear this cost for its HSBB Broadband
and IPTV customers.

Revenue 2010 2011 2012 2013 2014 CAGR

RM Million 2010-2014
BROADBAND
HSBB Broadband 1099.49 1151.51 1391.02 1599.67 1839.62 13.90%

CONTENT
IPTV 40.00 47.4 59.25 79.00 90.85 22.96%

Exhibit 6: Forecasted Marketing Expenses for HSBB Broadband and IPTV

However, TM will ensure HSBB Broadband and IPTV expenditure are

ranging from 5.00% to 7.00% of its forecasted revenue in order to ensure
its contribution margin/sales do not below than 93%.

UUMKL Campus
October 11,
MARKETING PLAN – TM (HSBB)
2010

5.0 Control

The purpose of this TM’s marketing plan is to serve as a guide for the
organization. The following areas will be monitored to gauge performance:

 Revenue, monthly and annual

 Expenses, monthly and annual
 Customer Satisfaction
 New Product Development

5.1 Implementation

Once approval has been obtained, TM will move swiftly to implement the
plan. It is essential that there be an implementation plan and a control plan
to ensure success. Controls will be put in place to monitor and measure
the results of the project to ensure the desired objectives are achieved.

The work program to implement the proposed marketing strategies is

detailed in a table presented in the sample marketing plan.
DATE /
ACTIVITY
FREQUENCY
Obtain Board approval By October 2009
By November
Sensitize staff and pursue their buy-in
2009
Contract an advertising agency to formulate an By November
advertising plan 2009
By November
Select the sales team
2009

UUMKL Campus
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MARKETING PLAN – TM (HSBB)
2010

DATE /
ACTIVITY
FREQUENCY
By December
Train the sales team
2009
Development an incentive program for the sales By December
team 2009
Provide the members of the sales team with a By December
formal written program of the project 2009
Provide each member of the sales team with a By December
job description 2009
Provide the sales team with the necessary tools, By December
such as cell phones 2009
By December
Advertise the service on our website
2009
Hold an official launching By January 2010

E-mail prospective customers By January 2010

Advertise the service on the local radio and
By January 2010
television
Advertise in the local newspapers By January 2010

Road show across Malaysia By February 2010

The work program of the marketing control process to assist Management in

keeping TM on the course to success is detailed in a table appended to the
sample marketing plan available on this site for download.

UUMKL Campus
October 11,
MARKETING PLAN – TM (HSBB)
2010

Date /
Activity Performed by Frequenc
y
Complete Performance evaluation of Marketing
Annually
sales staff Manager
Review salaries and other incentives of Marketing
Annually
the sales staff Manager
Marketing Monthly /
Measure financial results against
Manager / Quarterly /
projections
Accountant Annually
Carry out survey to determine
customers' satisfaction with the product Internal Audit Annually
and the service quality.
Diagnose any gap / shortfall to identify
As
the causes for such gap / shortfall and Internal Audit
necessary
recommend corrective measures
Marketing As
Take corrective action
Manager necessary

5.2 Marketing Organization

UUMKL Campus
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MARKETING PLAN – TM (HSBB)
2010

Organization structure is the formal and informal framework within which people
work to achieve organizational objectives. Designing and implementing a suitable
organization structure is necessary for the implementation of marketing strategy.
Aspects like internal and external organizations, vertical structure, horizontal
relationships, speed of response, managing the operating environment, etc. are
the major considerations to be made in the design of a marketing organization.

The options that are available for designing the marketing organization can be
grouped into traditional structures and new forms. Traditional structures include
functional, product, market, and matrix organizations. A functionally organized
structure is organized on the basis of various functions like marketing,
production, research and development, and finance.

To ensure the successful of the products, TM will form a strong marketing

organization which will be based on the research done by the experts. The
marketing organization that will be used is the one which is already proven and
will be the key of the products success.

UUMKL Campus
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MARKETING PLAN – TM (HSBB)
2010

The chart below shows a marketing organization that will be implemented by TM.

UUMKL Campus
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MARKETING PLAN – TM (HSBB)
2010

There will be 10 types of marketing strategies that will be implemented which are:

i. PUBLIC RELATIONS
ii. STAKEHOLDER RELATIONS
iii. INDUSTRY RELATIONS
iv. COMMUNITY RELATIONS
v. PRESS/MEDIA RELATIONS
vi. ADVERTISING
vii. MEDIA ADVERTISING
viii. PRINTING/DIRECT MAIL
ix. NEW MEDIA
x. SPECIALTIES

To ensure the success of the promotions, TM will also take one step ahead with
introducing the new media’s promotion which involves the usage of website,
internet, blogs, FACEBOOK and also TWITTER. This is because the biggest
market-share for IPTV and HSBB are the youngsters or GEN Y; which are also
known to be the most users of this new media.

UUMKL Campus
October 11,
MARKETING PLAN – TM (HSBB)
2010

5.3 Contingency Plan

Since projects involve uncertainty and risk, it is likely that TM will need to develop
contingency plans for key areas of risk. Basically this involves identifying risk
scenarios which, should they actually occur, would have a significant impact on
the ability of the institution to carry out its business and considering what options
are available.

Assumptions relate to external factors over which the company has little control.
These should be stated as a series of points that relate to, and which preface,
the make-up of the detailed marketing mix plans in the next stage. Assumptions
should be as few as possible and if they are not needed then they should not be
introduced. For each assumption, a contingency plan should be formulated, so in
the case of an assumption being wrong, the appropriate contingency plan can be
brought in.

TM has identified several factors that fall in the key area of risk and its
contingency plan as a precaution measures in case any problems occur. The
complete contingency plans are as described in the table below.

UUMKL Campus
October 11,
MARKETING PLAN – TM (HSBB)
2010

N PROBLEM CONTINGENCY PLAN

O
1 Similar product from Identify new and improved
competitor technology for the consumers in
scheduled stages
2 Unforeseen technical Ensure adequate training on after
failure with product sales services
3 Demand exceed forecast Emphasize on demand planning
to be based on recent statistics
and ensuring constant supply of
product with buffer stocks
availability
4 Promotion strategy failure Provide a wide variety of
promotional strategy to cover
every aspect i.e road show, press
ad, mailer

UUMKL Campus
October 11,
MARKETING PLAN – TM (HSBB)
2010

Appendix – Presentation Slides

UUMKL Campus