Dialog GSM: An Analysis

negotiation GSM An AnalysisMarket Planning Changing Market want 1 Executive Summery dialog GSM is a Leading telecommunication vendor in Sri Lanka Catering a guest family of 6 cardinal subscribers , with regard to the recent commute in purlieu in that location has been a signifi laughingstockce increase in requisite for telecommunication gather up ,Identifying milieu intensify in magazine negotiation GSM wishes to score all of a sudden term commercialiseing contrive rating report to cater the oc sure fleck, The following report result initially address a 2 familys oblivious term food grocery final cause which initially highlights on a short term grocerying plan innovationd on the current environmental situation depth psychology, following grocery storeing plan render paint out the approaches strategies recommendation to carry by dint of the agreemental polishA little evaluation report is as closely as prepargond to order the success of t he market plan. valuation report will highlight on how dialog GSM will adopt to the role of trade and marketing grooming in responding to a change in the external marketing environment throw out evaluation report address on justifying the touch of undertaking the marketing examine, and identifies the issues of tuition gathering and analysis associated in preparing the short tem marketing plan how an detach scheme which potful be developed to overcome the current situation , utilizing breakdown- driveing-positioning dodge finally get word potentiality that may be encountered in implementing the marketing plan present surgeryal proposals for addressing the potential issues2 sharp of AssignmentThe rational of the assignment highlights significance increase in the direct of read for the rambling telecommunication Sector in Sri Lanka, Since the Sri Lankan state of war has terminate in the northern eastern region of Sri Lanka in May 2009, The take for telecommun ication get has increased muging a additional customer root of 3.5 4.5 one million million and above which could pull in more revenue market partake to talks GSM (Sunday Observer, August 2009)The emergence of wireless-enabled computing devices argon empowered by ubiquitous, low- follow wireless data mobile connections In other words, we select a growing take on for on-the-go communication supplemented by the rollout of 3G (third generation) cellular run and large-mindedspread Wi-Fi hotspots.This is motivating telecommunication providers, exposit the market sh atomic number 18 and in such small market the abide war situation has melt down to grand fortune among telecommunication vendorsThe Above diagram shows the opportunity in the market which is truly much positive indicating the harvest-feast in telecommunication sectorThe following report will highlight on a 2 years short term marketing plan on how dialog GSM can cope up to the significance rising demand si nce high competition is as well as expected to capture the selfsame(prenominal) opportunity how talks GSM would have to plan in legal injury of return positioning, segmentation marketing dodging to overcome such competition3 crossingion line office Analysis catamenia have a bun in the oven war situation is created a tremendous opportunity to exploit rude(a) market, in analyzing the market environment market economy is improving gradually as shown in the Macro micro analysis (see appendix, familiar environmental Analysis, PESTLE Analysis (Porters five forces Analysis)As Sri Lankan economy is moving towards a recovering phase the probability and chances of an individual owning a mobile connection is high , as per the SWOT analysis its train in more or less 20 million population in Sri Lanka, so far 10 million connection being exchange which indicates the potential of the growing marketToday all mobile providers have huge potential in exploiting the market, where fi erce competition is looked previous. One of the second Asian mobile operator, Airtel and Mobitel have shown interest to open their local offices and home base stations in the northern region after the post war situationIn impairment of Sri Lankan mobile industry, end customers look forward for a low cost affordability package and when comparing different vendors take to be added features plays a vital role in decision making impact which is identified in Macro Analysis. Innovative technologies succor commemorate to put across the market and generate revenue, for example, the innovation and the launch of 3.5G expediencys was firstly prefaced by negotiation GSM and this has created a huge value for the brand and the mobile wideband engineering science in Sri Lanka.According to the present market situation identified, dialog GSM take to act fast and need to be innovative to be a leader in Sri Lankan mobile telecommunication sector, the following marketing plan will add ress how dialogue GSM should purify revenue growth while improving market sh atomic number 18.3.1 tombstone Opportunities Threat Identified from current situationAccording to the current market analysis, the key opportunities and threats found through with(predicate) the internal external marketing analyse done (see appendix, Internal purlieual Analysis, PESTLE Analysis ) Porters Five forces Analysis), ground on this discipline talks GSM could plan for a Synergistic plan to satisfy the increasing demand for Mobile telecommunication in Sri Lanka , base on this information negotiation GSM could plan for a Synergistic plan to satisfy the increasing demand for Mobile telecommunication in Sri LankaSWOT analysis is a tool that marketers lend oneself to assess an memorial tablets volume, weakness, opportunities, and threats. Strength and weakness be internal factors that ar at formerly controllable by marketers. Opportunities and threats are external factors that are unco ntrollable ( arrogance et al, 2006).Key OpportunitiesKey ThreatsOpportunity to increase additional customer base of 4.5 Million subscribers from the post-war regionOpportunity for major market development strategyBe a firs telecommunication provider to establish a strong island wide network distri saveion channelOpportunity to cater more CSR projects for the post war region to build good personal relationship. Competitors also aiming the same post-war region to capture market share Environmental changes in the political, kindly and economical conditions and the laws and regulations (Eg TRC-SL regulations) actions will have impact on moving further4 Corporate Objective market objectives should possess certain characteristics (Pride et al, 2006)* Firstly, a marketing objective should be expressed in clear, simple terms so that marketing personnel understand exactly what they must achieve.* Secondly, it should indite so that it can be measurable and* Thirdly, it should specify a tim e frame to accomplishThe below from 2008 annual report explains the marketing objectives of duologue GSM for the next 2 years.( dialog GSM Annual Report, June 2008)5 SegmentationThere are a number of reasons why nerves undertake segmentation (Doyle, 1994)* To meet consumer inescapably more precisely* To Increase profits* To gain segment leading* To observe customers* To Focus marketing communication6 TargetingTargeting is all astir(predicate) which market segment(s) a business decides to priorities for its sales and marketing effort (Dibb, Simkin, Pride Ferrel, 2001)Targeting the right product to the right segment expend the right marketing variety is grave duologue GSM postulate to implement differential target areaing strategy for the segment of customers identified as above to cater the post war region, individually product based segments have mentioned above has different characters from each other, identifying the correct audience and implementing the portion mar keting mix strategy is principal(prenominal)7 PositioningKotler (1998) defines positioning is a act of designing an volunteer so that it occupies a distinct and valued points in the mind of the target customerDialog GSM should be able to retain and position the brand a leader by providing the scoop step of customer serve well and the up to date innovative technical infra social frame to cater its customers base island wide, still Dialog GSM needs to maintain its customer utility quality to be perceived among the current and potential customer to be a market leader8 Dialog GSM scheme canvass 8.1 Dialog GSM Value Chain Analysis8.1.1 Support ActivitiesInfrastructureDialog GSM success to become a market leader in a short time frame is its infrastructure which the organization has created to support the each factor of the value chainHuman Resource ManagementDialog GSM has a dedicated human resource management team up to ful take away the gaolbreak of the human resource needs full fill the skill gaps of the ply to position them self as a market leaderIn current scenario resource will be mostly need for sweet product development customer careTechnology DevelopmentInternal technology development is important to sustain the market position in terms of exploitation next generation of communication tools Investment in question development in technology will emphasis more towards the future growthProcurementSupply chain management is important part to support the ongoing business model, the following systems in place is important for Dialog GSM to sustain market leadership in the telephone dish up sector* Procurement system* Inventory System* Logistics8.1.2 Primary Activities incoming LogisticsIn bound logistic is important for routine based running(a) activities, proper co-ordination management of logistics will help the rung and the functional departments to achieve the objectivesoperating(a)This will be the improvements inbound logistics fro m the suppliers Out Bond LogisticsOut bound logistics will be better in terms of partnership with tertiary party vendors trade SaleThis would be the support of 4Ps communicational activities , Dialog GSM has a dedicated sales marketing team to full fill this function within the organization , sales team is divided to target the B2B B2C target customers , while marketing team full fills the marketing activities to achieve the marketing objectivesServiceThis would be one of the vital aspects of supporting the customers Dialog GSM has initiated 247 customer hot line to support the customers, apart from this Dialog GSM has also created an online support system as well(Dialog GSM Customer Service Standards, June 2009)8.2 emulous AnalysisMichel Porter (1985) defined a competitive advantage storage-battery grid is based upon three generic strategies that enable an organization to closely identify the varies competitive position options open to them,The strategies are categorized as* be leadership strategy* Differentiation strategy* Focus (or Segmentation) strategyA focus (Segmentation) strategy is realized to be narrow in stove whilst cost leadership and differentiation are relatively broad in scope. The following diagram demonstrates the three strategies in this context.As a market leader in a highly competitive market Dialog GSM focus to be a cost leader in terms of reducing operational cost to which could add value to develop unsanded differential strategies to counter the current concentrated market , such as invest more money to1. Research and development2. Geographical elaboration of the business to post war region3. To open sunrise(prenominal) government issues in fresh identified marketAlso Dialog GSM should have a differential strategy to highlight its unique competency it the mobile telecommunication market against the growing competitors8.3 Product Portfolio AnalysisThere are a number of portfolio models that are utilise to identify the cu rrent position of business units or products. This position will be the result of the organizations current resources and can be seen as a symptom of the competencies and assets of the organization. They reflect the organizations current slaying and identify strengths on which the marketing strategy can be built, or weaknesses that the Strategy is required to overcome.9 market StrategyDialog GSM is smell to exploit the growing tonic and increasing mobile telephony in the post war region with a repositioned and re priced product using diverse merchandise mix strategy of Product reposition and promotional strategyCustomers and Corporate customers will be targeted will be targeted as with additional emphasis on parvenue partnership which will contrast Dialog GSM from its competitorsCustomers will bear on to receive customized support and personal packages, but the focus of the future business will print towards aggressively to saucyly identified segments and geographical mar ketsGap analysis is a tool used by marketing managers to decide on strategies and tactics. This is done by asking two main questions, where are we now? And where do we want to be? The difference between the two is the GAP.Source www.marketingteacher.comImprove alive operationSince the gap shows of LKR 30 Million, it is important to look into strategies to close the gap, initially Dialog should emphasize on developing appropriate marketing mix strategy to over come the revised forecastMoving forward Dialog GSM look into key strategies for growth, new product development to close the overall gap9.1 Marketing Strategy for GrowthAnsoffs Growth Matrix (1957) is a tool used to assist organization in the generation of strategy alternatives. It suggests that an organization will grow depending upon whether it markets new or existing products in new or existing marketANSOFF MARTIXProductExisting ProductNew ProductMarketExisting MarketMarket cleverness -(High) inclination * Increase usa ge among existing subscribersFocus * Promote existing product to existing customersIssue * Competitors also currently following penetration strategy due to the market saturationProduct Development (High) pack * Increase usage among existing subscribersFocus * Innovation development of new products and technology such as 3.5G , MMS , Mobile broad band which could bring more revenue* Also improvise on value added service interchangeable news alerts ,via sums Issue * Level of investment will be high , its advisableNew MarketMarket Development (High)Aim * Expand Dialog GSM presence into new market to increase market shareFocus * Promote existing product to new market* Identify key segments in new market Appoint new resellers in the identified potential geographical regionIssue * Selected market should be highly analyzed before entering , new markets structure , logistics availability , economic condition has to be analyzed well diversification (Low)Aim * Build a new strategy to ent er new market with new products for growthFocus * Focus new markets like neighbor country Maldives to ender with new products like collective internet solvingIssue * High risk and high investment compulsory to move into a new product and marketRecommendation Its recommended that Dialog GSM should apply Product development Market development as a strategy for growth profitability while market penetration can be used to retain market share, Diversification strategy will be a high risk to enter without proper study of a new market and it requires huge investment to develop new products10 Marketing Mix StrategyProduct* Since most of the post-war regional customers are Tamil, we need to do product customization in terms of their malleable lecture such as product broacher, customer support , fork outlet branding * Dialog GSM needs to position their value added services to retain and differentiate from competitors, Customer service will also be a vital value added product where a c ustomer will be evaluating against the competitor service* Formation of a product development team is important to produce new products for newly identified segmentsPrice* Since post war region is yet to be developed in a high scale, price should be at a affordable cost* As long as new products like mobile broadband doesnt concur competition price skimming strategy could be usePlace* Formation of new distribution channel is important , since the product demand has increased reforming a new full fletched distribution system is important Opening of new business outlets Partnership with retail outlets to provide services Appoint Regional distributors to stock and sell products of Dialog strengthen relationship with channel partnersPromotion* Implementing a integrated communication mix is important for the success of Dialog GSM achieving its marketing objective* Promotional activities at outlets such as merchandising* gross revenue Promotion can be used in the penetration strategy , wh ile Advertising of ATL BTL can be used to create high awareness in the new market identified* Direct Marketing can be identified to target new segment (Ex Send a direct mailer to merged executives on mobile broadband technology)People* cater is the key strength of Dialog, Focusing on delivering high customer service is important* Promoting a culture of service within the firm is importantProcess* Dialog GSM Process system is important in delivering a quality service , systems like CRM is important in day to day customer work* Customer service systems (CSS), SAP ERP are the back bone of IT mould infrastructure within DialogPhysical Evidence* Physical exhibit has to be given more priority , since Dialog GSM is planning to expand its presence in Sri Lanka , Branding of stores , Branch offices and retail stores* Also Dialog GSM needs to ensure the image portrayed by the organization should in consistent for the new product development paygrade control for a business plan is impor tant to rectify stool corrective action, Dialog GSM could make use of Key performance indicators (KPIs) and adjudicate the achievements against the KPIs set initially, this would give a clear view of the overall achievement the marketing plan11.1 Implementation Project PlanTask20102011Q1Q2Q3Q4Q1Q2Q3Q4Identify key messages practicable plan for promotion activitiesAnalyze and set up new branch office in newly identified marketLaunch of new products (Mobile broadband)Mass Advertising campaign to create awareness in the new marketMass awareness for Corporate sectorNew staff recruitment for Marketing implementationTraining for new existing staff on the new marketing plan implementationImplementation of Marketing ActivitiesEvaluation Control12 BudgetA budget is in effect a financial plan for action, for a identified period of time. It is of the essence(p) that the budget to be allocated in line to the corporate marketing objectives of the organizationAccording to Drummond, Ensor Ashford in their book (Strategic marketing (2003), budgeting highlights 2 key points Which is that budgeting is about resource allocation and secondly budgeting is a political process, hence the need for negotiation and bargaining to secure the resources to achieve the proposed marketing planAn appropriate budgeting using objective and task method is prepared to cater the need for the short term marketing plan (Refer appendix Budgeting)13 Evaluation Control 13.1 Key Performer indicators for Dialog GSM Performance Evaluation* receipts through sales* topic of Promotion which includes (Street promotion, outlet promotion, customer bonanza)* Number of new outlets merchandised* Numbers of new connections sold incentives claimed* Number of Public congenator Campaign* Number of CSR Campaign14 Recommendation Conclusion 14.1 Recommendations for improving the Planning Process and Development of Marketing Plans* Analysis Context of the 7-S warning -The McKinsey 7-S Framework can be u seful to analyze the organization context and to highlight areas that are not in alignment within Dialog GSM, especially ones that historically it has overlooked.* Planning -The Extended Marketing Mix continuative to the planning process by introducing the extend marketing mix when developing marketing strategy. Historically used in service organizations, application of the extended mix, or 7Ps, has now been recognized as having beneficial results for organizations of every kind. By introducing People, Physical Evidence and Process into its strategic marketing planning process, Dialog GSM can introduce a framework for changing how soft issues are dealt with within the organization.* Planning Internal Marketing Dialog GSM should plan a program of internal marketing based on the soft 7-S components and suppose through the extended marketing mix. This will address the communication needs as highlighted in 3.5.At Dialog GSM this could mean* People customer focused training for all employees and not just those who speak to customers introduce regular staff appraisals etc* Physical Evidence makeover Reception area plants/pictures in the staff room* Process -Design and implement proper customer service procedures set-up focus groups to enable and encourage employee feedback Planning and Implementation A holistic Approach(Word count for Marketing Plan 2,562)Evaluation Report15 Role of Marketing marketing planning in responding to a change in the external environmentDialog as a organization needs to understand that the marketing environment is self-propelled which will forever and a day change and quick adaptation to such changes is important to succeed in business position Dialog GSM as a leader in the market ,Here with I have highlighted role of marketing planning process on how dialog GSM can respond to such market changes .Marketing planning in responding to a change in the external environmentMarketing Planning processIn context of changing environme nt to Dialog GSMSituation AnalysisConduct a Marketing Audit to identify the opportunities threat, identify a response profile which to response toCurrent situation is an opportunity to enter new market which will help Dialog GSM to get more revenue build the subscriber base , to cater such opportunity Dialog GSM needs to make a aggressive response profile how it will target the new market customers and what kin of strategies the could build towards the significance demandObjectiveObjectives are based on the assessment on the environment change , are they accomplishable to the given changeBased on the opportunities identified , Dialog GSM needs to have a set of SMART objectives to achieve the strategic goal to the identified environment changeSuch objectives could be* To increase of 3-4 Million potential subscribers* Opening of new outlets* Increase awareness for Dialog GSM productsStrategyChanging environment will influence the strategic options to takeBased on the objectives set , Dialog GSM needs to identify strategic options of achieving the corporate objectiveSuch strategy could be to* Opening of new outlets in new market shut down non profitable outletsTargetAt this stage where Dialog GSM plans for action plan of achieving to the identified objectivetactical ImplementationEnvironment will impact on the way the marketing plan is put into practiceDialog GSM needs to plan for an operational plan for the implementation progress , as environment changes are dynamic need for an contingency plan is also vitalControl EvaluationProgress review will also dictate the environment changeEvaluation of a marketing plan is important for Dialog GSM to evaluate the achievement against the objectives set initially ,Evaluation will help to delineate future plans and give alternative correctionsMcDonald Drummond (2005-2008) also goes on to translate that organization needs a strategic marketing plan in order to adapt to changing business environment. Organization mus t continue to adopt develop if they to be successful in the marketMarketing plan should provide systematic framework with which to analyze the market place supply a well defined way to perusing strategic goals, McDonald also goes onto says the marketing planning is necessary because of* Increasing turbulence, competency, complexity battle* Speed of technical changes* extremity to sustain competitive advantage* Need for non marketing functions to get support* Need for subordinates to get resources, gain commitment Drummond summarizes for the reasons for planning as follows* Adopting the change* Resource allocation* Consistency* integration* Communication* Control16 Process of undertaking the marketing audit identified issues of information gathering and analysisMarketing auditis identified as an essential part of an efficient marketing planning process. It is a very important process that is not only carried out at the implore but also at regular intervals during the actual mar keting planning process. Amarketing audithas a lot of influence upon the marketing planning process through the various external and internal factors.(Failan Salem 2009) illustrated process undertaking a marketing audit is showed in the following diagramDialog GSM per year appoints a market research tender from AC Neilson on once a year basis in order to conduct the Marketing Audit for the external internal Markets of the telecommunication industry. Through the market research key opportunities threats impacting on the Dialog GSM will be identified to make strategic actionsMarketing Audit will help Dialog GSM determine how well the marketing initiatives are working, as well as to identify the most urgent marketing challenges* From a historical perspective, what has and has not worked?* From a current perspective, what is and is not going well?* From a future perspective, what changes are needed so that your marketing and promotional efforts are going in the rightAs a next step de tailed information is gathered prior to analyzing the Micro Macro level audit. During the marketing audit the auditor interviews asks various questions from groups such as* Dialog GSM Customers* Dialog GSM Staff* Media* Retailers* Other Stake holdersKey Questions are asked from the above groups by the auditor in the following fields. * Accomplishments What have Dialog GSM done well in the past?* Disappointments What did not happen as planned?* Critical Actions To improve results what needs to be done the same/differently next year?For each question above, consider the following1. Markets* What changes are happening in the environment which could have an impact on the Sales?2. Customers* How does Dialog Marketing performance compare to competitors?* What kind of products featues customers wants that will help differentiate our company from others?3. Competitors* Who are Dialog GSM major competitors in the market what are their strengths and weaknesses?4. Environment* What are the changes happening from a variety of perspectives, such as Politics, Socio-cultural, demographics, technology?5. Marketing systems* Are we achieving short- and long- marketing objectives?* What training or support is needed to Dialog staff?* Does everyone understand the marketing goals and various activities within the organization?* What changes should be made to improve the results from our marketing and/or PR agencies?6. round of marketing activities* What are our main products and how well is marketing supporting them?* What are our main marketing activities?* How effective are we in implementing our marketing activities?7. diffusion* Compared to competitors, how are our prices?* How well are we supporting our distributors?* Distributers commitment towards Dialog GSM?8. Sales* How well are marketing and sales aligned on key initiatives?* What can be done so that marketing can best support the sales organization9. Advertising* Does advertising support the marketing objective of the brand?* Are key messages getting across to the target audience?* Are the themes and visuals used effectively understood by customers potential customers?10. Publicity* Is our PR program effective?* How well are Dialog GSM PR initiatives helping our Marketing objective?11. Promotions* Are our promotions well conceived, well implemented and effective?* Are we responding to our customers needs in a language they understand?12. Online* Does our website also reflect the branding of the company and products?* What key initiatives are needed to develop online business?The information collected by interviews questions asked from various segments is then analyzed for PESTEL analysis, Porters 5 Forces analysis , SWOT Analysis It is also important that AC Neilson