THE COMPANY’S STRATEGIES ANALYSIS

THE COMPANY’S STRATEGIES ANALYSIS

Current Strategies for Maxis

          By understanding the customer's needs, Maxis has used its strength to fill the needs of the customers more than any other telecommunications service provider in Malaysia presently. This has given them a competitive advantage, boosted enthusiastic sale and increased more customer loyalties. Through careful and in-depth research in the characteristics if the Malaysian market, Maxis has created distinctive target markets for its products through creating a strategic marketing mix that just not makes the product available, but also affordable, convenient and unique at a consistent and flexible level. This is geared towards improving new and existing products as well as profit to the company.

Maxis will focus on pushing its mobile broadband service to sustain its quarterly growth streak. Its primary target now is to double its mobile broadband customer base to one million by end-2010 from 475,000 in the third quarter ended September 30 2009. In the third-generation (3G) mobile broadband space, Maxis currently lead other mobile operators in terms of subscriber base. Maxis Bhd has fewer than 200,000 subscribers as of the third quarter of this year. Its third quarter net profit of RM404 million is the highest quarterly net profit in its history. They will be implementing new synergies focusing on customer touch points, human capital and strengthening position with renewed zest and commitment. This will be done concurrently with an accelerated broadband push and continued 'smart spending' cost management.

Implementations

Financial Control and Performances Standards

The following performance standards and financials are suggested.

       The total budget for launching the new product, research, and customer’s survey will be equal to 80 percent of the annual promotional budget for the product introduction year.Each team is responsible for reporting all financial expenditures, including personnel salaries and direct expenses, for their segment of the project. A standardized reporting form will be developed and provided by the marketing director.The marketing director is responsible for adherence to the project budget and will report overages to the company president on a weekly basis. The marketing director also is responsible for any redirection of budget dollars, as required for each project of the business analysis team.The new product offering would be evaluated on quarterly bases to determine its profitability. Product development expenses will be distributed over a two year period, and will be compared with gross income generated during the same time period.

Implementation of Services and Products

Activities, responsibilities and time for completion: all implementation are designed to create customer awareness and boost sales and are to begin along with the New Year on January 1 2010.

 On January 1, create sales manager position along with marketing and advertising director. The marketing director will serve as a project leader for a new business analysis team, while the advertising director will take full charge of advertisement. By January 18, the business analysis team will review all recommendations from the project managers.

          By January 20, develop a marketing information system to monitor client reorder patterns and consumer satisfaction. The managers are responsible. By February 2, develop a plan for one year product offering along with potential customer. The business analysis team is responsible.

 By February 5, finalize customer satisfaction for current customers. By February 10, implement a new product offering advertisement and sample to potential customers. The business analysis team is responsible. By February 15, analyze and report the result of all customer satisfaction survey and evaluate new product offering. The market director is responsible. Re-establish the objectives of the business analysis team for the New Year. The directors are responsible.

Implementation of Market Organization

Because the new product requires extensive commercialization to match customers need, it is necessary to organize the marketing function by customer groups. This will give Maxis the opportunity to focus its effort on the need and specifications of each target market. Maxis marketing efforts will be organized around the following marketing groups: 1] manufacturing group, 2] business-to-business group, 3] customer satisfaction group, and 4] customer relationship group. It group will be headed by a sales manager who will report to the marketing director.  Each group will have full decision making authority and responsible for marketing the new product to the target customers within the segment.

  These changes in marketing organization, enables Maxis to be more creative and flexible in meeting customers' need, reduce highly centralized management hierarchy and finally, give better opportunities to monitor the activities of competitors.

Target Market

Target Market 1

Large travel agencies or holiday planners. For example, travel agencies like WahTung SDN BHD, can use the service to provide 24/7 travel planning's to their numerous customers, thereby increasing the companies ticket sales and profit.

Target Market 2

Niche market of business travelers. For example, business men and women who normally use online system for their reservation will find it easy to make reservations and flight booking by just a simple press on the button, and that would be more convenient to travelers.

Target Market 3

Direct consumer market of hand phone user: For example, this service can be utilized in our day to day life, like paying bills and checking account balance, making it easier for our families by just pressing a button instead of having to go to the company or bank to pay our bills.

Analyze And Evaluate The Strategy

Description	HOTLINK PREPAID SERVICES, HOTLINK YOUTH CLUB ·         It is only for college students only who can provide an ID card of the college that they are studying currently. And the limitation is that student cannot exceed 25 years old.
Percentage of sales	·         Edge Financial Daily: Net profit - RM552 million  first quarter ended March 31, 2010. ·         Hotlink prepaid profit has decrease due to new low rate plan.  The market share for maxis in the industry is 40.9%.
What they want	·         Youngsters, prefer products cheaper price, once students register, the phone is activated for 4 years. If they don’t reload for a couple of months, the line won’t be barred unlike normal plans. ·         Better Speed, Better Value
How they use product	·         For prepaid users, they need to reload manually by getting it from the shop or online ·         For postpaid users, they need to pay monthly where bills will be send to them ·         Packages and Plans, depends on which package they choose and benefits they entitled too ·         Maxis broadband, there are few packages with different Internet benefits ·         Hotlink Youth Club, where student use them by showing student ID card
How to reach them	·         Advertisement on TV stations ·         Facebook, twitter and youtube ·         Phone, e-mail and snail mail ·         Online advertisement ·         MAXIS centers
Price sensitivity	·         Competition Based Pricing : For instance, Celcom first launch its SMS rate which was RM0.10. Thus maxis starts to reduce their SMS price rate to more cheaper RM0.05 ·         Now lately RM0.01 per SMS. ·         Another example if maxis come out with a new plan, immediately digi and celcom will launch a new plan of theirs.

Identify the Most Applicable Strategy

Marketing Mix Due To 4p (Product, Price, Place, Promotion)

Product

Maxis has developed an intangible attributes to the new products, to consistently meet or exceed customer's expectation, enhance speedy response to customers demand and attribute anticipate new customer needs. This will be achieved through investing in consumer research and product development. (Maxis Official Website, 2009).

PRICE

With high availability of internets across the Malaysian globes, a price penetration strategy is advisable to enhance customer’s usage, and introducing the service. On the other hand, they would use that opportunity to increase price on improved products. Maxis should also be sensitive to the price elasticity of its product and overall consumer demand. (Maxis Official Website, 2009).

PLACE

In an increasingly competitive and complex communications industry, the pace of technological innovation is such that no single company can survive if it operates alone. And Maxis has long recognized the need to work with a range of different partners locally and globally to broaden their range of offerings and to enhance their capabilities as the preferred communications solutions provider.

  

Figure 6.1 Maxis Partners and Maxis Alliances.

Below is the list of Maxis offices and its locations.

MAXIS HEADQUARTERS - LOCATIONS Maxis Berhad Aras 18, Menara Maxis KLCC, Off Jalan Ampang 50088 Kuala Lumpur	Maxis System Operations Center Sg-Besi Lebuhraya Puchong-Sg Besi 57000 Bukit Jalil Kuala Lumpur
MAXIS OTHER OFFICES AND LOCATIONS Maxis Subang Hi-Tech Plot 12155 Lot 13, Jalan Delima 1/1 Subang Hi-Tech Industrial Park 40000 Shah Alam	USJ Warehouse Lot 651, Jalan Subang 2 Off Persiaran Subang 47500 Subang Jaya

PROMOTION

Through educating consumers on product improvement and creating awareness to non-consumers, advertisement and sales promotion would be used to introduce the new service to the Malaysian market. (Maxis Official Website, 2009).

Figure 6.2 Product Promotions to Increase Sales Production