Smart Celfone: The smart alternative for 1995

Date of Publication

1994

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Marketing Management

Subject Categories

Marketing

College

Ramon V. Del Rosario College of Business

Department/Unit

Marketing and Advertising

Abstract/Summary

February of 1994, SMART COMMUNICATIONS, INC, entered the highly volatile telecommunications industry with the company seen as being full of potentials. With its bid of becoming a premier telecommunications company, SMARTCOM has much strength and opportunities to maximize. Upon its entrance, it has continually edged its position in the market.

Instead of going into the A,B market of cellular phone users, SMARTCOM DECIDED to develop a new market, that of the C market which has the same need for communication. As such, the company gained its niche and strength in the market with its very affordable cellular phone and services rates. Recent marketing efforts of the company has also alarmed the key players in the Cellular Mobile Telephone Service (CMTS).

This service plan aims to maintain the company’s marketing efforts and at the same time develop certain areas to fully deliver quality service. Recommendations would cover services aimed at increasing customer satisfaction and loyalty. Service development programs are proposed to run for the whole year while specific advertising schedules are for the first half of the year. This allows flexibility in this highly competitive industry.

At present, competition is stiff in the market. However, SMARTCOM has successfully launched its advertising and promotional activities. With this, a continuous advertising strategy is proposed with at least one exposure a day in any of the trimedia. Non-traditional ads will also be utilized to maximize advertising opportunities. Service development is also a thrust with better services and customer-driven promotions are proposed to offer more value for the subscriber’s money.

Pricing strategy would most likely be maintained so as to be consistent with the company’s overall selling proposition with enough leverage to give way to inflation and other economic forces. Sales and distribution would also be more efficient as more distribution media would be needed to service the increasing demand nationwide. An efficient and effective agent-company relationship is hoped to be established as more care is taken in training the sales staff. Establishment of branch offices in key cities is also recommended as a primary tool for more efficient service delivery to more people nationwide. The latter also helps in advertising and public relations.

An increased budget would be required to sustain the company’s performance in the market. Being a very promising player in the industry, an adequate sustaining budget would be required to reach potential users and develop loyalty to existing subscribers through the various marketing efforts. A marketing budget of P 93.3 M is targeted to maintain the company’s competitive stand in the cellular service market at least for the year. Advertising activities account to 86% of the said budget with 71% going to television advertisements and radio ads at 27%. Service development programs take 7.5% while promotional activities account for 6%. The company’s rapid expansion programs also picture CMTS as taking an important role especially upon attaining the 90,000 subscribers target by 1995. This goal has encouraged the support for the development and promotion of the cellular phone service. Recommendations are drawn up in order to aid in attaining this and other company goals. The responsive market and the encouraging, proposed promotions aim to increase sales and income through airtime charges. However, the company’s start-up costs in its second operating year for break-even only by 1996 especially with the scheduled public offering of company shares. As such, this plan qualitatively targets for building a good corporate image and quality service whereas quantitatively, it hopes to trim down the year-end net loss, inspite of marketing activities, which will subsequently improve the company’s financial standing later on. Evaluation procedure would be carried out through assessment forms before and after activities, surveys, sales and activity reports financial documents and other in-house and outside studies.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16666

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

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