Assignment 2 - Celcom vs. Maxis PDF

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GROUP ASSIGNMENTPRINCIPLES AND PRACTICE OF MARKETING (MKT420)GROUP ASSIGNMENT 2 / GROUP REPORTCOMPARISON ON MARKETING CONCEPT BETWEEN: -TWO ONLINE BUSINESSES ( CELCOM vs MAXIS )GROUP MEMBERNUR AMIRAH SUFIAH BINTI AZALI (2020573499)SYAFRIE SAZREEN BIN SAZOLI (2020252628)PREPARED FORSIR MOHD ISHAM BIN...

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GROUP ASSIGNMENT

PRINCIPLES AND PRACTICE OF MARKETING (MKT420)

GROUP ASSIGNMENT 2 / GROUP REPORT COMPARISON ON MARKETING CONCEPT BETWEEN: TWO ONLINE BUSINESSES (CELCOM vs MAXIS)

GROUP MEMBER NUR AMIRAH SUFIAH BINTI AZALI (2020573499) SYAFRIE SAZREEN BIN SAZOLI (2020252628)

PREPARED FOR SIR MOHD ISHAM BIN ABIDIN

TABLE OF CONTENT NO. 1. 2.

DESCRIPTION Acknowledgement Executive Summary

PAGE 3 4

Introduction:

3.

4.

•

Background of Company

•

Vision

•

Mission

•

Objective

Organizational Chart

5–8

9 – 10

Content and Topic Analysis for both companies 5.

•

Internal Marketing Environment

•

Micro Marketing Environment

•

Macro Marketing Environment

11 – 22

Marketing Mix for both companies:

6.

•

Product

•

Price

•

Place

•

Promotion

23 – 29

7.

Conclusion

30

8.

Recommendation

31

9.

References

32

10.

Appendix

33 – 35

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ACKNOWLEDGMENTS

Assalamualaikum wbt. Alhamdullilah, first I would like to thank Allah S.W.T. as we are finally be able to finish our assessment given by our lecture, Mr. Isham Bin Abidin. This task had been done with my assessment partner, Mr. Syafrie Sazreen Bin Sazoli. Although it takes time to prepared and dedicate our time to complete this assessment, we manage to settle down and adeptly our time and effort to finally finished it.

In preparation of my assignment, I had to take the help and guidance of some respected persons, who deserve my deepest gratitude. As the completion of this assignment gave me much pleasure. I would like to show my gratitude Mr. Isham Bin Abidin, our Course Instructor, for giving me a good guideline for assignment throughout numerous consultations. I would also like to expand my gratitude to all those who have directly and indirectly guided me in writing this assignment.

Finally, I would like to thanks my parent and friend that always stick with us with their support and special thanks to my partner, Mr. Syafrie Sazreen Bin Sazoli for always work hard for us to produce a good assignment. His outstanding ideas and suggestions on my paper which gave me an inspiration to improve the quality of the assignment.

3

EXECUTIVE SUMMARY

Celcom Axiata Berhad is the oldest mobile telecommunication provider in Malaysia. Other than wider coverage, celcom also has their own products such as broadband. Celcom Broadband is Malaysia's most popular mobile broadband provider, with 1.534 million subscribers as of the first quarter of 2015. Celcom is better than Maxis Berhad. Celcom has the best 4G availability and latency scores, while Maxis has the best download (17.7Mbps) and upload (6.6Mbps) scores. Open signal also has a new metric for this report, with the inaugural “Voice App Experience” award going to Celcom. And much rather interestingly, Open signal reports that Celcom has improved the experience of its users by 30% in improving their video experience. Not only that, is recorded that Celcom has improved of 67% of download speeds, and double the upload speeds.

Maxis Berhad is a Malaysian telecommunications company which providing a higher quality networks and wider reach in Malaysia. When opposed to its rivals, the price charge in this telecommunication company is still incredibly high. While Maxis Berhad is still able to enjoy big market share in Malaysia, although the higher price it charges, this demonstrates how well the strategic expertise Maxis that had in Malaysia. While Maxis Berhad main attraction is its cheap price, Maxis Berhad needs an increasing in their amount of new main attraction and scheme. Maxis Berhad need to create stronger competency and new plan or unique product to attract their customers

4

INTRODUCTION

BACKGROUND OF MAXIS BERHAD Maxis Berhad is the largest telecommunications service provider in Malaysia which currently covers approximately 11.73 million service subscribers. Maxis Berhad secured a license in 1993 to operate a nationwide mobile network called GSM 900, which is a regional fixed network and an international gateway. Maxis Berhad launched its mobile business in August 1995 and began running its fixed line and international gateway in early 1996. Nowadays, to address the need for telecommunications for customers, small companies, and major organizations, such as mobile fixed line, prepaid line and internet broadband networks, Maxis currently offers a comprehensive range of services on multiple channels. Maxis Berhad is a Malaysian telecommunications company which providing a higher quality networks and wider reach in Malaysia. When opposed to its rivals, the price charge in this telecommunication company is still incredibly high. While Maxis Berhad is still able to enjoy big market share in Malaysia, although the higher price it charges, this demonstrates how well the strategic expertise Maxis that had in Malaysia. Moreover, Maxis Berhad had launched 3G services such as 3G link card, PC Webmail, Video Mail and 3G prepaid where it is the first telecommunications company which based in Malaysia. The coverage of 3G networks in Malaysia that up to 740 locations and is also being expanded from time to time. Maxis’ 3G services allow all the users to enjoy while using the internet access in Malaysia. Entertainment and networking options such as video calls, live mobile TV, gaming, and wireless broadband Internet could be used via mobile phone and laptop, which are moderately priced and efficient to connect with real-time performance. Maxis does have many internet subscribers and it has offered a decent deal price and by providing free modems which it supports broadband networks. If users or new users have signed up for the subscription plan, they could get a free modem from Maxis telecommunication itself. In addition, Maxis Berhad also has a comprehensive customer support network that would give their customers to ease for making any payments monthly that users subscribe, going to sign up and as well as to make any report if there is any issue or problem need to be solved.

(Maxis Logo)

5

BACKGROUND OF CELCOM AXIATA BERHAD (CELCOM) Established since 1988, Celcom, a one of the members of the Axiata Group of Companies. Celcom also is the the first mobile operator that exist in Malaysia. The company headquarters were located at Petaling Jaya, Selangor. Celcom provided coverage such as 2G, 3G and 3.5G. However, the coverage can only detect about 98% in a populated area. Even though 4G is the most Advantages, 4G can only around 76%. Having about 9.7 million customers all around the world, Celcom keep improvise yearly to achieve their customer need. Celcom also MVNO known (Mobile Virtual Network Operators) that offering roaming services around almost 97 countries and having about 462 network partners worldwide.

Being one of the very first telecommunication company in Malaysia that provides a cellular phone license, Celcom manage to succectfully introduced their mobile telephony in Malaysia through the system called iART-900 (Automatic Radio Telephone). Using their ETACS (Extended Total Access Communication System) Celcom manage to derivative their first (Advanced Mobile Phone System) technology. Celcom is known to use their dialing prefix identifier of "013" and "019" and offer digital GSM (Groupe Special Mobile), as their mobile communications. The original frequency band for GSM is 900 MHz and was then been extended to 1800 MHz to manage to cater the wider requirement. Celcom is also has been licensed and has been operating FDD-LTE on 1800 MHz and 2600 MHz’s.

Finally, in 2013, Celcom has managed to sustain 31 consecutive quarters of growth, and has been recorded to have above RM8.0 billion in revenue, the highest in history. Celcom also win the best Net Promoter Score with by voted as the highest satisfaction score among the four Telco’s by the user. Researched done by AC Nielsen, saying that Celcom has manage to grab the satisfaction regarding in Network, Package plan, Line Service, and Preferable in billing. Not only that, in 2018 Celcom has been recognized by Forbes as the “Top Ten Most Customer -Focused companies in Asia” during the rece nt Contact Centre Association of Malaysia (CCAM) award night.

(Celcom Logo)

6

Vision of Maxis Berhad To bring the future to our customers’ lives and business, in a manner that is simple, personalised and enriching, by efficiently and creatively harnessing leading-edge technology and delivering a brand of service experience that is reliable and enchanting.

Mission of Maxis Berhad •

Our purpose: Always be ahead.

•

We exist to bring together the best of technology to help people, businesses and the nation always be ahead in a changing world.

•

What we offer: An unmatched personalized experience: Connectivity, services and solutions that put people ahead of technology. An experience that is always easy to use, discover and tailored to people’s needs.

Objective of Maxis Berhad To reach all Malaysians in all areas, and this brand purpose will help because we are looking forward to taking all Malaysians ahead, helping them to always be ahead and connect with them.

7

Vision of Celcom “Celcom brand vision is about pleasing our customers and exceeding their expectation”.

Mission of Celcom Celcom’s mission is: •

To delight the customers.

•

To build a profitable enterprise that maximizes investors return.

•

To empower, develop and reward our people, to become Malaysia’s preferred employer.

•

To build win-win relationship with all our business partners, based on mutual trust, respect and support.

•

To work to bridge the digital divide, to build our nation and to enhance its standing abroad.

•

To maintain the highest levels of transparency, integrity, and professionalism

From that mission, it is clearly showing the purposes of the business on what they want to achieve in their business. The mission was easily understood and allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity. Together with all their stakeholders, they will make Celcom Malaysia a premium brand. A brand that symbolizes the spirit of freedom, aspiration, confidence, dynamism, timelessness, universality, and globalism. They not only focusing on the profitability of the company but also concern toward customer’s satisfaction, built good relationship with their partners, and enhance business market.

Objective of Celcom Celcom has been in the telecommunication business with the primary objective to keep people connected and helping companies to market their goods and services as well as keeping them close to their customers. Besides formulating a market-orientated and customer-focused mission statement, celcom has established and objective to achieve cumulative growth in the next five years with a 50 per cent net profit for the newly launched U-verse. To accomplish these objectives, Celcom has developed a benchmark for progress in three different categories. Firstly, through using a market penetration pricing, the service will be brought to the customers at affordable and reasonable prices. Secondly, by gaining a better understanding of the need and satisfaction of the current customers, they will improve the service to encourage re-orders. Finally, the service is to be able to utilize its current technology and knowledge base, and research as well would be conduct on similar products with an eye towards developing the services to a specialty advertising product.

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ORGANIZATION CHART OF MAXIS BERHAD

Raja Tan Sri Dato' Seri Arshad bin Raja Tun Uda Chairman/ Independent Non – Executive Director

Tan Sri Mokhzani bin Mahathir

Dato' Hamidah Naziadin

Alvin Michael Hew Thai Kheam

Independent Non – Executive Director

Independent Non – Executive Director

Independent Non – Executive Director

Lim Ghee Keong Non – Executive Director

Gokhan Ogut

Wayne Treeby

Morten Bangsgaard

Mriam Bevi Binti Batcha

Chief Executive Officer &

Chief Financial &

Chief Technology &

Chief Corporate Affairs Officer

Acting Chief Marketing

Strategy Officer

Information Officer

Paul Mcmanus

Tan Lay Han

Natalia Navin

Rob Sewell

Chief Enterprise

Chief Sales &

Chief Human

Chief Digital &

Business Officer

Service Officer

Resource Officer

Transformation Officer

Officer

9

ORGANIZATION CHART OF CELCOM

IDHAM NAWAWI President / CEO

JENIFFER

IMRI Chief Operating Officer

ALLAN

Chief Financial Officer

AZLAN

Chief Commercial Officer

AZMI

Chief Enterprise Business Officer

CHEE HON

Chief Human Capital Officer

CS YAP

Head of Internal Audit

DANNY

Chief Network Officer

ROY

Chief Retail Officer

Chief Product Officer

SHANTI

T KUGAN

Chief Customer Experience Officer

Chief Emerging Business Officer

SHANTI Chief Digital Officer

MUNIFF Chief Strategy and Value Creation Officer

ZURAIDAH Chief Regulatory and Societal Development

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CONTENT AND TOPIC ANALYSIS

The marketing environment of a company is a number of factors and strengths beyond marketing that will affect the ability of a manager or an organization in growing and maintaining its business or companies. Internal marketing environment, micro marketing environment and macro marketing environment is a group in marketing environment. This marketing environment provides an opportunities and threats to the business or companies.

The internal marketing environment

encompasses all of the factors which present in the organization and influences the overall operation of the business. The factor that might be include in the internal marketing environment is manpower or employee from all department, policies of company, an asset of capital, logistic and inventory. All factor in the internal marketing environment would give an impact and affect in the organization in determining the marketing decision which connect toward its customer or consumer. Thus, the organization can be controlling all of these factors in the internal marketing environment.

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INTERNAL MARKETING ENVIRONMENT

What is internal marketing environment? Internal environment in marketing refers to components inside the firm that are unique to the firm. An analysis of the internal environment is critical in the development of marketing strategy to ensure to ensure that the firm's strategy is based upon its situation, resources, and goals.

Company Policy

▪

Maxis Berhad The Maxis dividend policy as set out in the IPO Prospectus dated October 28, 2009. It is to

formulate together for a reference of the statement of the interim dividend and the proposed final dividend is at the discretion of the Board. Thus, for the year of any final dividend is subject to the consent of shareholder. It is the intention of the company to pay a shareholder’s dividends for the future. However, the payment of dividend will be pay out when it is depends on the several factors which consist in term of the income, the requirement of capital, a general of financial conditions or any others factors or elements that are would think or considers as a relevant by the Board to make their decisions.

▪

Celcom Celcom took their customer information, privacy, and security very strictly. One of Celcom

company policy is to endure that customer user data and privacy is well protected. Celcom can only collect the data with the consent of their customer. With that not only that Celcom gain trust from their user, but Celcom can also improve their security system.

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MICRO MARKETING ENVIRONMENT

The Micro Marketing Environment contains all those elements that are directly linked to the company's activities and affect its working. The factors that affect into micro marketing environment into business or companies consist of customers, employees, supplier, shareholder, media, competitors, government and general public. These factors can be controlled to a certain extent by an organisation in order to survive their business becomes success. In this report, I would like to discuss about customer, competitors and shareholder factors of micro marketing environment in which give an affect to sustain their business. So, the following is the comparison factors between Maxis Berhad and Celcom Axiata Berhad in micro marketing environment.

1. Customers Customers refers to the individual or a person who buy any product or service that provided by an organisation. As an owner of the business, we must know the needs and wants of the customers. It is because, if there are no customers to buy or purchase goods in our business, company cannot be survived for a long time. If customers do not want to purchase or get our product and services provided, a survey is one of the ways that can be do to improve towards business.

▪

Maxis Berhad Nowadays, digitalisation strategy was commonly used by an organisation in Malaysia

toward its customers. In line with this strategy, Maxis Berhad has been decided to develop a mobile application which is MyMaxis, Hotlink RED and Hotlink Postpaid Flex apps. The application developed by the company is to facilitate customers in implementing various things including account management, to pay monthly basis bill, data usage, for reward, and any deals from time to time. So, with this application, it will become easy for the users to use as it is a convenient and efficient application. Based on the Maxis Berhad Integrated Annual Report 2019, there is about 49% of users in the postpaid primary account are using MyMaxis Apps and 64% of users in the prepaid mobile internet using Hotlink Red Apps. So, with this type of strategy, it will reflect and increase the demand of the customers by using a digital service provided as it is more convenient and easier to manage.

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▪

Celcom While Celcom, to satisfy their customer need, develop the Xpax plan. Xpax goals are

to attract Celcom’s main prepaid brand for youth. Their strategies are too providing unstoppable internet experience and reused the unused internet using the plan Xpax. Celcom also introduces their new plan, FIRST Basic 38, improvising their FIRST plan. The new First Basic 38 offers an all-in-one package consisting of 3GB data + 3GB Wi-Fi. Not only that, but the upgrade plan also provided with 50 minutes of calls and 50 SMS for each month. However, the 3GB data is offered fo...