MARKETING MIX

MKT420
(PRINCIPLES AND PRACTICE OR MARKETING)
GROUP MHR 2
PREPARED BY:
1. MOHAMMAD FAQRUL FARIS BIN MOHD NORDIN 2016779839
2. SITI NURUL NAJWA BT MOHD JAMEL 2016369407
3. NUR NAZIHAH BINTI HASSAN 2015119153
4. MUHAMAD ZURI ISKANDAR BIN IDRIS
5. MUHD ADY SHUKRIE BIN MOHD SARU

PREPARED FOR:
PUAN NORRAEFFA BINTI MD TAIB

DATE OF SUBMISSION
16 DECEMBER 2017
Table of Contents
ACKNOWLEDGEMENT.............................................................................................................................2
ABSTRACT.................................................................................................................................................3
INTRODUCTION.........................................................................................................................................5
i- Company Background....................................................................................................................6
ii- List of products and / or services that they provide........................................................................8
iii- Company mission statement..........................................................................................................9
iv- The analysis on current business portfolio...................................................................................10
v- The possible developing strategies on current business portfolio...............................................13
PRODUCT................................................................................................................................................16
i- The level of product......................................................................................................................16
ii- List of product and/ or service that they provide..........................................................................17
iii- Individual product and service decisions......................................................................................20
iv- Product line and product mix decisions........................................................................................21
v- Branding strategy..........................................................................................................................22
PRICE.......................................................................................................................................................24
i- General Pricing Approaches.........................................................................................................24
ii- Product Mix Pricing Strategies.....................................................................................................25
iii- Price Adjustment Strategies.........................................................................................................26
PLACE......................................................................................................................................................30
i- Number of channel levels (CELCOM)..........................................................................................31
ii- Strategy used for its marketing intermediaries.............................................................................33
iii- Types of retailer / wholesaler that carry their products / services................................................34
PROMOTION............................................................................................................................................36
i- Concise analysis on their advertising strategy with example.......................................................36
ii- Advertising, Public relation, Personal selling and Direct Marketing.............................................41
CONCLUSION..........................................................................................................................................44
RECOMMENDATION...............................................................................................................................45
REFERENCES..........................................................................................................................................46
APPENDIX................................................................................................................................................47
FORMAT...................................................................................................................................................48

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ACKNOWLEDGEMENT
Bismillahirahmanirrahim. First of all, we would like to thank ALLAH S.W.T and HIS messenger, Prophet
Muhammad S.A.W. It is because of HIS blessing, it is possible for us to finish this assignment. We also
like to thank our parents. It is because of them we can finish and possibly to do this assignment. With
their support, hope and prayers, we were able to complete this assignment.

We also like thank our lecturer, Madam Norraeffa Bt Md Taib. Due to her guidance, ideas and
knowledge, we were able to finish this assignment with full inspiration and determination. She also
gives a lot of advice on how to finish this assignment. We would also like to thank all of our classmates
because of their classmates because of their support, new ideas, opinions and additional information
for this assignment.

Finally, we would like to thank everyone that got involved in helping to complete this assignment
successfully. Without them, we would be facing plenty of complications and challenges for finish this
assignment.

Thank you

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ABSTRACT

3
INTRODUCTION

4
INTRODUCTION
Celcom Axiata Sdn Bhd, a Technology Resources Industries (TRI) Bhd company has been the
leading mobile cellular operator in Malaysia for the past 10 years. Celcom's main business
activity is to develop and market Mobile Services 

1988 witnessed the dynamic birth of Celcom, a leading mobile telecommunications provider in
Malaysia. Since its inception, Celcom has steadily made its presence felt in the Malaysian
market. It has, always continued to spread its wings and is undeterred by the dynamic nature of
the mobile communication industry.

Celcom business Vision and Mission is: -

• To delight our 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.

Together with all our stakeholders, we will make Celcom Malaysia a premium brand: a brand
that symbolizes the spirit of freedom, aspiration, confidence, dynamism, timelessness,
universality and globalism. (Celcom Official Website, 2009).

Setting up a team of quality directors and staffs, has transited Celcom from first-generations to
second-generation market leaders. For Celcom, communication is a serious business. This is
why they have mainly products and service geared toward maintaining business voices. This
products and services includes business prepaid plan, business supplementary plan, business
post-paid plan and business satellite. A major challenge facing Celcom is how to increase profit
and maintain their competitive advantage in the Malaysian market. (Celcom Official Website,
2009).

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6
 i- Company Background

Celcom started its operation as STM Cellular Communications in 1988 with Fleet Group and Telekom
Malaysia as shareholders. Subsequently Telekom Malaysia sold its 51% shareholding to the TRI group
which was controlled by Tajuddin Ramli. Fleet Group's share meanwhile was transferred to the Time
Engineering group which was later sold to TRI. In the initial years Celcom experienced a tremendous
growth in subcriber base and network coverage under the stewardship of Rosli Man, the President of
the company. It was during his tenure that Celcom turned into the leading cellular companies in
Malaysia. He left Celcom in 1996.

When the cellular phone market was opened up in 1995, Celcom upgraded to the GSM900 service and
quickly grew to become the largest mobile phone company in Malaysia. Competition soon sets in, and
several digital mobile telcos compete for market dominance. It was the age of the phenomenal growth
of mobile services.

During the Asian financial crisis in 1997, Celcom's owner, Tan Sri Tajudin Ramli suffered a debt crunch,
and his shareholding in Celcom was seized by Danaharta, the national asset restructuring company.
Failure to resolve his debts resulted in the controlling stake in Celcom being sold to Telekom Malaysia,
the government-owned incumbent fixed line operator in 2003. Telekom Malaysia proceeded to merge
Celcom with its own mobile-operator subsidiary TMTouch through a reverse takeover of TMTouch.
Celcom was originally listed on the Bursa Malaysia, but after the merger with Telekom Malaysia
Berhad, it has since remained private. Owing to the bad management of its former management
Celcom was as found liable by an arbitration panel in Switzerland for infringing an agreement signed
with Deutsche Telekom AG’s unit, DeTeAsia in 2002.

The tribunal ruled that Celcom was liable to pay DeTeAsia US$177.2 million in principal plus US$16.2
million in interest as well as other legal and arbitration costs. This works out to a tidy sum of about
RM740 million, leaving Telekom to intensify its efforts at recovering monies from Celcom’s previous
owners for their misdeed. Only then will TM be able to fully exorcise itself from the haunting of Celcom’s
tumultuous past.

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Celcom is one of the largest telecommunications service providers in Malaysia and the region. Its core
business remains prepaid and postpaid mobile voice services. Celcom has also achieved significant
growth in mobile broadband, m-commerce, enterprise solutions and bulk wholesale services. Celcom
continues to have the widest network coverage in the country. Through ongoing investments in network
coverage, capacity and performance, Celcom intends to maintain its technology leadership and position
as the country’s best mobile service provider.
In line with market focus and positioning strategy, we will continue to focus on a more sophisticated
segment management, new product and services beyond voice, a significant enhanced Human Capital
Management and major transformation on customer experience.

Celcom is part of Axiata Group, one of the largest Asian telecommunication companies, focused on
high growth low penetration emerging markets. Apart from Celcom, Axiata has controlling interests in
mobile operators in Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in
India, Singapore, Pakistan and Thailand through its various subsidiaries and affiliates.

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 ii- List of products and / or services that they provide

Flexible postpaid plan

Their Business Postpaid plan is the only Internet plan that comes with free calls and SMS. They will
also enjoy other additional advantages like no extra charges when exceeding the data limit and
discounts, which mean more savings for us.

Affordable internet plans

Their Business Internet plans are designed to meet all their business requirements. They offer us
flexible data allowances at an unbeatable price point, so we can choose a plan that meets our needs
best, helping us manage our costs.

Device bundles
We have a wide range of devices to fit your needs and budget. Pick from a list of smartphones and
tablets from a variety of manufacturers. Special device packages are also available.

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 iii- Company mission statement

Brand Vision
Our brand vision is about pleasing our customers and exceeding their expectations. It is our goal to
empower them with choices and innovative solutions that will give them greater control and freedom to
live it to the fullest.

Brand Mission

Committed to pursuit excellent and constantly reflect warmth friendliness and approachability through
service and work.
Reputation and Image
U Mobile is one of the cheapest telecommunication service which has the low calling rates for local and
international calls. The customers get to know about U Mobile through paper and online advertisement.
They are reaching 1 million subscribers within 1 year of operation.

Current Marketing Objective

Target market Objective:
 To target a million subscriber within a year of operation.

Promotional Objective:
 To target by boosting our distribution channels, adding more service features as well as more exciting
promotions and deals.

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 iv- The analysis on current business portfolio

SWOT Analysis

1.1 STRENGTH
• Celcom maintains a product differentiation strategy resulting from a strong market
orientation, commitment to high quality, and customization of products and
services.
• There is little turnover among well-compensated employees who are liked by
customers. The relatively big size of the staff fosters communication and quick
response to client’s needs.
• A long-term relationship with the primary suppliers results in shared knowledge of
the product’s requirements, adherence to quality standards, and a common vision
throughout the development and production process.
• The high percentage of sales, suggest a satisfied customer base as well as
positive word of mouth, which generates new business per year.
• Being the oldest telecommunications service provider in Malaysia, has given
Celcom a competitive edge and increased customer’s trust and loyalty to the
brand.

1.2 WEAKNESS
• Celcom’s current facilities are crowded; there is little room for new employers or
equipment’s to fit into the company.
• Celcom is reactive rather than assertive in its marketing efforts because of its
heavy reliance on customer’s reaction for product satisfaction.
• While the staff size improves growth and communication, it also impedes
commitment on the side of the staff and lack of specialization.
• Both the product line and the client base lack diversification. Dependence on
current recorder rates could bleed complacency, invite competition, or create false
sense of customer satisfaction. Development of a product that would provide
better quality service by the competitors would probably put Celcom out of
business.

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 • The non-seasonality of the products and services creates bottleneck in
productivity and cash flows, places excessive stress on the personnel and strains
on the facility.
• The poor niche market could be a competitive advantage for their competitors to
gain an advantage over them, and this could lead to a dramatic decrease in
customer’s loyalty.
• High cost of products and service could alter the buying power of the consumers,
especially in this time of global recession.

1.3 OPPORTUNITIES
• Advertisement in Malaysia alone exceeds 200 million Malaysian Ringgit annually.
More than 20 million Ringgit is spent on specialty advertisement which is the
potential for Celcom’s growth.
• Celcom is currently the Malaysian partner of Vodafone.
• Celcom is currently doing nationwide promotion using power icons like including
international footballers Steven Garrard, Michael Owen, Ryan Gigs and Robert
Pires and Chinese entertainers JJ Lin and Wang Lee Hom as well as local actress
Maya Karim.
• Celcom currently has the widest 3G and HSDPA coverage in Malaysia since its
launch on 17thmay, 2005.
• Celcom provides many products and services that suites different customer
needs, ranging from economic, business, and family and leisure satisfaction.
• The director and manager of the company, Dato’ Sri Jamaludin Ibrahim is
currently working with the company for the seventh year, this is different when
compared with other telecommunication service providing companies and with his
full experience, he has helped guide Celcom to a resting edge with quality
management.
• As more and more Malaysians look for ways to keep in touch with each other,
Celcom’s popularity and quality services has helped draw more customers to the
company through customer relationship and brand loyalty.

1.4 THREATS

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• Reengineering, right-sizing and outsourcing trends in management may alter
traditional channel relationship with brokers, dealers, and distributors or even lead
to elimination of the channel.
• Specialty advertisement through promotional items relies on gadgetry and ideas
that are new and different. As a result, product life cycle may be quite short.
• Completion from other telecommunications service providers is strong.
• High cost of products and service would be a competitive advantage to their rivals
over customers, through implementing low cost quality products and services.
• There are no barriers of entry and this could be a great threat because it could
make new fast productive companies to come into the market and try to gain a
stand of their own.
• Fast technological advancements would result in faster product life cycle, increase
the need for improvement and might result in low sale of less quality products, or
products with less technological features.

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v- The possible developing strategies on current business portfolio

By understanding the customer’s needs, Celcom 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-dept. research in the characteristics if the Malaysian market, Celcom 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.

FINANCIAL STRATEGY

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.

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 CONTROLS STRATEGY

 IMPLEMENTATION SCHEDULE
Activities, responsibilities and time for completion: all implementation are designed to
create customer awareness and boost sales

 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 Celcom the opportunity to focus its effort on the need and specifications of
each target market. Celcom marketing efforts will be organized around the following
marketing groups:

a) Manufacturing group,
b) Business-to-business group,
c) Customer satisfaction group, and
d) Customer relationship group.

Each group will be headed by a Sales Manger 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 Celcom 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.

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PRODUCT

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PRODUCT
i- The level of product

Figure 1 : Level Of Product

Level I: Core Product

Level 1 is the most basic level and simply looks at what people set out to buy and what benefits the
producer would like their product to offer buyers. So prior to designing any product designers should list
the core benefits the product needs to provide. In Telco industry, customers always seek packages that
will give extra benefits especially in speed and internet data.

Level II: Actual Product

Level two is about translating the list of core product benefits into a product that people will buy. There
may be competitor products offering the same benefits so the aim at this stage is to design a product
that will persuade people to purchase the product. These are involving deciding on the quality level,
product and service features, styling, branding and packaging.

Level III: Augmented Product

Level three involves deciding the additional non tangible benefits that a product can offer. Competition
at this level is based around after sales service, help lines, warranties, and free or cheap delivery. In
other words it is things that the product does not do but customers may find them useful. Non tangible
benefits such as product warranties offer customers peace of mind and demonstrate the manufacturer

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has faith in the quality of its product. In fact the ubiquitous uses of some augmented benefits have turn
some level three benefits into a customer expectation.

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 ii- List of product and/ or service that they provide

Celcom has the widest and most extensive coverage nationwide in Malaysia, compared to other cellular
operators. In 2015, Celcom claims its dual-band GSM (900/1800 MHz) coverage has reached over
97% of Malaysia's populated area, and 100% through satellite coverage. Celcom has an 86%
nationwide mobile service coverage with 3G availability expanding from Klang Valley, Johor Bahru,
Melaka, Kulim, and Penang.

As of 2015, Celcom has 3500 4G LTE sites in the country. The Telco aims to offer up to 80% human
population coverage by the end of 2016, and 95% of 4G LTE coverage by 2020.Celcom offers 2G, 3G,
4G LTE services on its postpaid and Xpax prepaid brands. On 28 June 2000, Celcom launched GSM
WAP on 2G GPRS at 170 Kbit.

On 15 May 2005, Celcom launched the first 3G service in Malaysia, covering most major towns where
there is a Telekom Malaysia telephone exchange and either HSDPA or EDGE services within 15-mile
(24 km) radius (GSM UMTS maximum allowed range) with GPRS as basic data coverage.

In 2013, the 4th generation standard of FDD-LTE was deployed gradually nationwide. The initial license
is only on the 2,600 MHz band. In second quarter, its 1,800 MHz band has been reformed to cater for
both 2G and 4G.

In April 2016, the Celcom CEO told Malaysian Wireless that both Ericsson and Huawei would build the
Celcom 4G network in Klang Valley from 2016 till 2020. As for other states, Ericsson would build the 4G
network in Sabah & Sarawak, Kelantan, Terengganu, and Pahang. Huawei would focus in Penang,
Perlis, Perak, and Johor.

Celcom operates 2G GSM/GPRS/EDGE, 3G WCDMA/HSPA+, 4G LTE networks.

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Frequencies used on Celcom Network in Malaysia

Frequency Frequency Protocol Notes

Width

900 MHz () 2 * 10 MHz GSM/UMTS

1800 MHz () 2 * 20 MHz GSM/LTE
2100 MHz 2 * 15 MHz UMTS/HSPA
(1950~1965,
2140~2155)

2600 MHz 2 * 10 MHz LTE

(2530~2540,
2650~2660)

2600 MHz 2*20 MHz LTE Spectrum sharing with

ALTEL (ALTEL
own 2*20 MHz, but
only share 2*10 MHz
with Celcom)

Celcom Broadband

Celcom Broadband is Malaysia's most popular mobile broadband provider, with 1.534 million
subscribers as of the first quarter of 2015. The broadband network cover 86% of Malaysia's populated
areas.

Celcom Broadband was awarded the prestigious Frost & Sullivan’s Mobile Broadband Provider for two
years.

Kolony

Kolony, launched by Celcom on 8 April 2011 was the first ever SMS-based social networking service in
Malaysia. Kolony targeted Malaysian youths and those that wanted to be connected to their family and
friends frequently by using their mobile phone. It ran on the regular SMS based platform, allowing users
to participate in social networking activities using the most basic mobile phones with or without a 3G
connection. It is a service consisting of a multi-user environment, including software and websites. After
only a few weeks of its launch, Kolony recorded a total of 1.5 million subscribers.

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Magic SIM

On 4 June 2015, Celcom launched its latest Xpax limited edition sim card package, the Magic SIM. A
RM5 Xpax Magic SIM starter pack comes with free basic internet, free 200 MB of highspeed internet,
and 20 free minutes free calls and SMS or SMS to Celcom numbers.

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iii- Individual product and service decisions

Launch of Celcom 4G LTE Experience Hubs at selected Blue Cube outlets. The launch was intended to
give customers first hand preview of the fast speeds of 4G LTE. The launch and was well received and
reaffirms Celcom's position as the fastest and widest network in Malaysia. Along with this, Celcom
launched the Celcom Fastest Territory marketing campaign, featuring world record breaking sprinter
Usain Bolt.

In the first quarter, Celcom's main prepaid brand for youth introduced two versions of the Reload Kaw
Kaw credit top-up card each to cater to heavy social media users or voice callers, packed with
additional freebies and airtime.

Meanwhile as part of the commissioning of a better business solution platform, Celcom signed a
strategic teaming agreement with nTels Co. Ltd, a global provider of integrated wired and wireless
business solutions for the provision of Celcom's own machine-to-machine (M2M) business solutions
platform, to give customers more control over deployed devices within their organisation.

Celcom also became the first, exclusive service provider to offer the latest personal computing offering
from Samsung with the functionality of a notebook PC on Windows 8 in a convertible design.

Celcom further enhanced its youth proposition by refreshing its Xpax offer. The new Xpax not only
offers the best voice and SMS rates but also free calls and Facebook access to customers.

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iv- Product line and product mix decisions

Celcom has developed an intangible attribute 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 research for consumer buying behaviour
and product development.

Through gaining retailers cooperation and distribution channels across Malaysia, it would be easy for
the service to reach the target market. The SIM PACK is light weight and would be easy to transport
huge number of the product with the service in it across Malaysian market.

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v- Branding strategy

The FIRST Basic 38 is Celcom’s marketing strategy to keep momentum with its brand promise and to
ensure that the customers stay ahead of others in getting the best from the range of postpaid plans in
the market. Additionally, this new plan will expand the use of broadband at all levels of the society and
make it viable for customers to own plans which will enhance their communication needs with no
wastage of internet. An advantage of this new plan is that customers, especially those who manage
SMEs and businesses, can choose to adopt the FIRST Basic 38 base plan as the FIRST Basic 38 for
BUSINESS with additional features, and this will provide them an edge over other plans with its Internet
offerings while keeping their businesses talking nonstop.

By understanding the customer’s needs, Celcom 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 department research in the characteristics if the Malaysian market, Celcom 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.

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 PRICE
///////////////////////

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PRICE
i- General Pricing Approaches

Celcom Axiata Berhad anncouned ‘Xpax Magic SIM’ comes with the cheapest mobile prepaid starter
pack on this list, and is priced at RM5. It comes with a pre-loaded value of RM3 with 5 days validity,
which isn’t too bad considering you also get free 200MB high-speed Internet (4G LTE speed) and
500MB basic Internet (Up to 64kbps) on a monthly basis
The Internet Burung Hantu feature is handy for those who enjoy surfing the Internet in the wee hours of
the night, as it gives you unlimited data usage from 1am until 7am every day when you subscribe to the
weekly or monthly data plan. Plus, data plan subscribers are also entitled to free unlimited Yonder
Music streaming each month
As part of Celcom’s stable, Xpax Magic SIM offers wide coverage nationwide and a stable Internet
connection. The call rates are among the cheapest compared to its other competitors, at only RM0.25
to the same network and RM0.10 to all other networks. The SMS rate however, is comparable to
Hotlink at RM0.12 to all networks.
The data plans are available on daily, weekly or monthly basis, with the daily plan priced at RM5 for
300MB of 4G LTE Internet. The weekly plans vary from RM10 (500MB) to RM15 (800MB) whilst the
monthly plans are priced from RM30 (1.5GB) to RM60 (4.5GB) – all of which are offered with 4G LTE
Internet (wherever available). The best part about these plans is that they are all bundled with free calls
and SMS – free 3 minutes + 3 SMS for the daily plan, 15 minutes + 15 SMS for the weekly plans and
75 minutes + 75 SMS for the monthly plans.
All in all, Xpax Magic SIM is a great option for night owls and those who are looking to be frugal on data
usage as well as having low (if not free) call rates to all networks.

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 ii- Product Mix Pricing Strategies

Pricing Strategies

- Product line pricing

Product line pricing takes into account the cost difference between products in the line, customer
evaluation of their features and competitors’ prices.
For example: Product of Celcom Axiata

Celcom Axiata Berhad announced a major upgrade for its Celcom FIRST postpaid plans today that
gives customers Internet quota up to 60GB. Celcom FIRST Postpaid offer different package internet
with different prices per month. FIRST Platinum with 60GB data at RM150/month , FIRST Gold Plus
with 40GB data at RM98/month and FIRST Gold with 20GB data at RM80/month.

- Optional Product Pricing

Optional product pricing takes into account optional or accessory products along with the main product.
Celcom Axiata use this strategies. The time table show Celcom FIRST plans The new Celcom FIRST
plans comes with other features including unlimited music with Yonder Music, WONDEROAM 1-day
Internet roaming at RM38 and WONDEROAM 1-week Internet roaming at RM138.The main of Celcom
FIRST plans is internet but you have option to choice plans that SMS rate are different, FIRST Platinum

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comes with unlimited sms to all network but FIRST Gold Plus & FIRST Gold sms charges will be rated
at 20sen/SMS

iii- Price Adjustment Strategies

Companies must adjust their basic prices to account for differences in customers and situations. There
are seven price adjustment strategies: Discount and allowance pricing, segmented pricing,
psychological pricing, promotional pricing, geographical pricing, dynamic pricing and international

pricing.
The 7 Price Adjustment Strategies

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Dynamic Pricing

In dynamic pricing which is by adjusting prices continually to meet the characteristics and needs of
individual customers and situations, we can see that Malaysians are really getting spoilt for choice as
the major Telco’s have gotten into a postpaid price war by delivering more data for less. After U
Mobile start introduced its Hero Postpaid plan that offered 7GB of data and unlimited calls to all
networks for RM70/month, the competition of all Telco’s is seriously heating up.

Umobile Hero P70 and Celcom FIRST Gold comparison

However, Celcom start introduced new Celcom FIRST Gold that offers the best value to win the
competition of telcos. On the surface, we can see Celcom offers the best value with 10GB for
RM80/month. That’s equivalent to just RM8 per GB, and customer also get unlimited free calls and
SMS for greater peace of mind. However the only gripe is probably the way they split the data. 5GB
is given for all day use and the other 5GB is only for the weekends (split at 1.25GB per weekend).

If customer need more data, customer can top up RM20 per GB and it is valid according to the billing
cycle. Another plus for Celcom is that customer can carry forward unused data up to 5GB but this is
only from the all-day data bucket. On top of that, they are giving out 5GB of WiFi for free, but that’s
only usable if customer can find a Celcom WiFi hotspot in the first place.

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Promotional Pricing

Price promotions or promotional pricing is the sales promotion technique which involves reducing

the price of a product or services in short term to attract more customers & increase the sales volume.

On the surface show, Celcom have some promotion that can attract more customers and increase the
sales volume in short term. Customers have a choice of their favourite smartphone for free when sign
up with either first gold plus, gold supreme, platinum or platinum plus. Starting price plan from RM80
and customer will get a free smartphone and may save their money. But offer valid while stocks last.

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PLACE

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PLACE

DEFINITION
The definition of the channel level are refers to the intermediary in marketing distribution channel
between the producer or manufacturer and the end of consumer. Besides that, every channel level
shows a part in making the good manageable to the end consumer. The number of channel levels
between the producer and consumer could be 0,1,2,3 or more. For Example:
 Zero levels (0): Channel is a direct marketing channel where there is no intermediary and the
producer sells directly to the consumer. For example, the through mails and telemarketing.
 One level (1): Channel has one intermediary, typically a retailer between a manufacturer and
consumer. Similarly a 2 level channel and a 3 level channel have 2 and 3 intermediaries
individually.

Below is an example of various channel levels is illustrated:

0 Levels Channel 1 Levels Channel 2 Levels Channel

Manufacturer Manufacturer Manufacturer

Retailer
Retailer

Retailer

Consumer Consumer Consumer

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 i- Number of channel levels (CELCOM)

Channel level contains of consumer marketing or the industrial marketing channels. An element
corporate among both channel level is that both include the producer as well as the end customer.
Besides that, the marketing channel used by Celcom broadband is the indirect channel. Therefore, from
the indirect channel, Celcom has selected retailer channel as their marketing channel. Celcom
distributes their broadband through the intermediate which is the retailer. The purpose for Celcom using
the retailer channels is because the retailer can support them to stimulate their products face-to face
with the customers. Hence, Celcom retailer sells the product and services directly to the customer for
individual or commercial use. The product line of Celcom broadband is confidential under specialty
growth. Other than that, Celcom broadband is considered as the narrow product lines with deep
assortment. Celcom has set up their specialty stores, “Blue Cube”, which is the mobile
telecommunication retailer outlet for Celcom products and solutions in Malaysia. Celcom has arranged
trained and experience sales person in their “Blue Cube” stores to provide professional services to
satisfy the customer.

Moreover, in the Celcom “Blue Cube” store, they have provided full services that related to the Celcom
products to the customers. Besides, locations of the store also play a significant role in promoting the
Celcom broadband. Celcom usually set up their retailer center at those crowded places such as
shopping complex, roads, and streets and so on. As a result, they can attract more customers to
purchase their product. Customers also can find their store easily no matter where the customer is and
more suitability for them if they require any inquiry toward the Celcom products and services.

Meanwhile, Celcom also stimulating their broadband by set up temporarily store during the PC fair such
as Pikom PC fair. By set up store in the PC fair, Celcom can fascinate more people to purchase their
broadband and increase the short run sales. Furthermore, they are usually will do a lot of advertising
and lower down the broadband price in order to fascinate more customers. Therefore, Celcom used
advertising method. Next, the advertising can be defined as engaging your message in any form of paid
media, such as newspapers, magazines and journals, television, cinema, radio, outdoor advertising
such as poster. In the advertisement, Celcom is trying to tell the readers about their specialty, their
unique and superior value, the information and show their differences with other telecommunication
company and also persuades the customers to choose their products at the same time in the local
newspaper such as:

1) China Press newspaper 2) Star newspaper 3) Berita Harian newspaper

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Another example is in Golden Screen Cinema, every time before a movie starts, the advertisement of
Celcom will be played and let the audiences know about the class of that particular movie. Next,
second tool used by Celcom to promote Celcom Broadband is Internet marketing, which also called as
I-marketing, web-marketing and online-marketing. Internet marketing promotes the products or services
over the internet. Celcom used the power of internet wisely because they can promote, inform, get
attention, and persuade the internet users to use their broadband in a cheaper and efficient way, as the
expensive printed cost can be eliminated. Moreover, Celcom has their own group or page in some
popular social networking site like Facebook, Twitter and Friendster.
Moreover, Celcom also used the public relations as one of their advertising strategies. In order to build
good relationship, obtaining advantageous publicity and build a good corporate image, Celcom has
sponsor for special event such as:

 Go Mobile 2010

 Euro 2008

 The Blue Ribbon Campaign (BRC)

There is a campaign that educates the public about the childhood cancer. Other than that, through the
support done by Celcom, Customer will found out that Celcom is a company that trustworthy and they
will deliberate purchasing products and services from Celcom when they need it. Besides that, Celcom
broadband also use public relation to publication regarding management, speculation, and current
issue.

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 ii- Strategy used for its marketing intermediaries

Marketing intermediaries are also known as middlemen or distribution intermediaries. There are
important parts of the product distribution channel. Besides that, Intermediaries are individuals or
businesses that make it possible for the product to make it from the manufacturer to the end user,
fundamentally facilitating the sales process. According to Business Dictionary, there are four basic
types of marketing intermediaries which are:

 Agents

 Wholesalers

 Retailers.

 Distributors

In addition, in order to make strategy for its marketing intermediaries, Celcom has adapted the major
brand strategy decisions which are the brand development and the brand sponsorship. Firstly, is a
brand development. The brand development strategies used by Celcom is the line extension. Next,
Celcom has added new packages under prepaid services category to attract more customers. For
instance, Celcom has launched packages such as:

 “School of X”

 “University of X”

Furthermore, there are the packs with different features under the same product group. The existing
brand name is X Pax prepaid services. The X Pax prepaid services is to gratify customer originate from
different age of group. Moreover, Celcom also used the brand extension strategy.
Other than that, Celcom has come out the new services in their new product category. There is the
broadband service. It is using the same brand name of “Celcom”. Secondly is a brand sponsorship. The
brand sponsorship strategy used by Celcom is the cobranding strategy. Furthermore, Celcom has
cooperated with Citibank and they have launched Citibank for Celcom credit card. This credit card is an
inventive credit card that gives customer profits such as cash rebate, reward point and airtime rebate.
Besides, Celcom also collaborate with AirAsia Bhd. Both the companies has announced the launch of a
RM4.99 AirAsia-Celcom prepaid starter pack that can only be accepted at Celcom Service Centre in
Kuala Lumpur International Airport (KLIA) and also in all AirAsia in-flight sales. The purpose for Celcom
launches the AirAsia- Celcom prepaid starter pack is to break new market ground and expansion more
market share.

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 iii- Types of retailer / wholesaler that carry their products / services

There are 2 types of retailers which can be defined by the size of their business and the system they in
which they merchandising their goods. The main types of retailers are;

i. Wholesaler - The wholesalers are the marketing intermediaries who purchase goods in large
quantities from the manufacturers for selling to the retailers. Meaning that, Celcom is also a
developer of industry leading wholesale partnership which includes Mobile Virtual Network
Operators (MVNOs) as well as domestic and international 41 roaming. To illustrate, Celcom
currently has six MVNO partners that provide additional channels to the market, covering niche
segments with strong growth potential. Assuming that, with the strong support from celom,
MVNOs as an important alternative channel for servicing place consumer and continuously
evaluates new MVNO partnership.

To the extent that, Celom’s long standing partnership with the local and global operators have
resulted in broad internet network coverage with roaming services in 200 countries via over 550
network partners. In fact, part of the Axiata group, its customer also enjoys great and
consistent experiences while roaming. In moving with growing technologies, Celom
emphasizes a culture that places customer experiences in all its products and services.
Altogether, this is reflected in our award winning customer service, product and other corporate
accolades at a regional level.

ii. Retailer – A retailer takes title to, or purchases, products from other market intermediaries.
Retailers can be independently owned and operated, like small “mom and pop” stores, or they
can be part of a large chain, like Walmart. The retailer will sell the products it has purchased
directly to the end user for a profit.

Meaning that, customers can go to any retailer store or dealer if they had faced any
problematic in using their product. Moreover, Celcom “Blue Cube” also affords services such as
postpaid bill payment, broadband registration, mobile phone repairing and more to the
customers.

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PROMOTION
///////////////////////

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PROMOTION
i- Concise analysis on their advertising strategy with example

Celcom use IT in their business. Offering their customers more than 10 solutions, Celcom
PowerTools™ significantly increases the efficiency of their customers business with a few simple clicks.
The improved business solutions and voice plan meets the vigorous demands of today's workforce.

The integrated services stresses on being mobile to stay ahead of competition, to get to the prospect
first, to gain tactical advantage as well as to initiate smooth service delivery. In order to increase their
sales and productivity, Celcom understand the need of their customers. Identifying the need to be in
touch constantly, it is about letting their client’s workforce take the office wherever they go. The main
solutions offered to Celcom’s customers are Email Connectivity, Workforce Mobility, and Data
Accessibility. Each of this main cluster comprises of a suite of powerful solutions for various types of
industries and vigorous demands.

Email connectivity gives Celcom Email & Beyond, a universal system utilizing Microsoft and other
platforms for instant and effective push and pull email –Celcom most important business productivity
tools. These solutions also allow Celcom to manage and enforce security protocols effectively and
wirelessly.

Workforce Mobility from Celcom PowerTools™ consists of a comprehensive suite of solutions from
Sales Force Automation & Field Service Automation to Enhanced Enterprise Messaging & Mobile
Financial Services.

Machine-to-Machine is divide by two which is fleet management and SCADA /telemetry. M2M - Fleet
Management is the perfect solution to ensure timely delivery of Celcom products to its destination. The
behaviour of drivers and their vehicles can be monitored for safety, cost effective operations and for
merit/reward programmes. Celcom is the leading provider of fleet and tracking services in the country.
M2M - SCADA / Telemetry is the most convenient solution for enterprise to monitor and managed fixed
assets effectively. It is ideal for data collection, remote control, alarms/warnings and ground
surveillance. It also offering the widest coverage, excellent packages, strong technical and
operational support.

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On the other hand, mobile financial service offers three ways which are 188Mobile, Mobile Banking and
Mobile Payment. With 188Mobile, customers can get stock information in their mobile phone whenever
they require. These include real-time prices, summary snapshot, in-depth details, intraday charting,
stock tracker and multiple viewing options. They also receive access to OSK research, and market
breaking news. Celcom mobile banking solutions offer customers unrivalled convenience to check
account summary, perform bill payment, transfer funds, and many more. Recently, Celcom introduce a
new mobile payment known as Wireless EFTPOS. It is a new wireless payment system that is fast to
set up and ideal for point-of-sales transaction, allowing customers to make payment whenever and
wherever they may be.

Enterprise Messaging Service (EMS) gets Celcom message to everyone - employees, customers or
even business associates, in an instant. From web to wireless, it is the fastest way to provide real time
status or alert information. Field Service Automation is the solution that allows instant access to Celcom
corporate database by their field personnel. It is ideal for usage at warehouses, assembly plants,
technical support centre and for mobile enforcement. Sales Force Automation is one of the best way to
keep Celcom sale force lean and mean, online and on top of every job. This solution allows the capture,
routing and monitoring of leads across their sales force. Celcom also can keep track of assignment and
status of jobs and planned schedules. Ultimately, they can check customer's credit or payment details
and inventory status from wherever they may be. Enhanced Enterprise Messaging (EEM) provides
wireless connectivity with customised back-end integration offering convenient and immediate
connectivity to all network service providers. It features SMS Bulk for auto alerts, SMS Broadcast, SMS
Hotline and SMS Premium for Mobile Vouchers, surveys & polls and for Information-on-Demand
applications. Enterprise Mobile Portal is ideal for Celcom’s customers to access information through
their mobile phones via 3G/GPRS. This solution is great for new product promotion, online product
ordering and product survey.

Data Accessibility -With Data Accessibility from Celcom PowerTools™, customer can get a Mobile
Connect Card for unrivalled 3G/GPRS coverage and real-time access. Even without PC, they can still
get full-spectrum data roaming with mobile phone in over 100countries.

The Celcom 3G Connect Card provides both voice and data access via any laptop. The stable
connection capability and affordability of this card make it one of the better connect cards available.
Data roaming with data capable mobile phones via 3G/GPRS is available in over 100countries and
operators worldwide. Customers enjoy the best rates available when they roam.

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Global voice and data coverage from Celcom and Vodafone can cross all the problem of geographical
borders, communication barriers and travel distances. With the business solutions provided to customer
through this alliance, the advantages of accessibility via the Celcom and Vodafone partner networks
help customers build their business empire while travel.
The competitive nature of business requires efficiency, speed, and most importantly, mobility. That is
why the BlackBerry® from Vodafone is designed with these qualities to put Celcom customer on top of
the game. It is a single handheld device that delivers phone, SMS, MMS, browser, instant messaging
and organizer applications. Now Celcom customers can manage all their information and
communications efficiently, giving them more time to focus on business.

With the Vodafone Mobile Connect Card, Celcom customers can access the Internet wherever they
may be. Powered by Celcom 3G/3GX (HSDPA), all Celcom customers can surf the Internet, check
emails, review reports, and download files more faster and easier.

The Palm® Treo is act like a personal assistant that fetches email, downloads attachments, get Celcom
customers on the web instantly and many more. Minus the unnecessary small talk, so the customer of
Celcom can get on with the important stuff, like building their empire.

CELCOM TARGET MARKET

• 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.

•Niche market of business travellers

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 travellers.

• Direct consumer market of hand phone user.

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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.

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Celcom has since its establishment, positioned itself as the number one Malaysian network in the
Malaysia market. This they have done by providing efficient network connectivity and linking of
individuals together. Today Celcom stands in the heart of every Malaysia as the telecommunication
service provider that offers a “more for more” customer satisfaction, by providing the customers with
products to keep them satisfied above their competitors and charging them more money for the quality
they yield in the products. It has made our work so easy, that by launching this service as the first in
south East Asia, it will go a long way towards convincing the present customers that Celcom is truly the
number one Malaysian network persuading the non-customers both in Malaysia, and the neighbouring
countries where Celcom is currently expanding to join the leading network. Physiologically, Celcom has
influenced the status of their customers, because they are considered to be financial capable by using
Celcom services.

By understanding the customer’s needs, Celcom 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, Celcom 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.

Celcom has developed an intangible attribute 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 research for consumer buying behaviour
and product development.

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. Celcom should also be sensitive to the price
elasticity of its product and overall consumer demand.

Through gaining retailers cooperation and distribution channels across Malaysia, it would be easy for
the service to reach the target market. The SIM PACK is light weight and would be easy to transport
huge number of the product with the service in it across Malaysian market.

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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.

Extensive market research is to be implemented to regulate customer’s satisfaction, anticipate and

understand customer’s new need, and improve the products to either make the customers delighted or
satisfied. This marketing research comprises of two types, firstly the internal marketing research which
would be done by team employed and directed by Celcom and secondly research paid institutions. The
result from both researches will be compared and analysed by the customer relationship team, to find a
new year of maintaining quality customer-company relationship and brand loyalty.

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 Celcom the opportunity
to focus its effort on the need and specifications of each target market. Celcom 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 Celcom to be more
creative and flexible in meeting customer’s need, reduce highly centralized management hierarchy and
finally, give better opportunities to monitor the activities of competitors.

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 ii- Advertising, Public relation, Personal selling and Direct Marketing

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. Here’s some of the example of sales promotion.

1) Get the Galaxy Note7 with the most talked about plans in Malaysia

Figure 16 : Celcom Galaxy Note Plan

The Samsung Galaxy Note7 one of the most people talked about plan in town. While the Galaxy
Note7 will officially go on sale in Malaysia on 19th August, Celcom will allow you to collect it
earlier on 18th August. On top of that, those that pre-order will get to enjoy the following offers:

With FIRST,

 enjoying the best privileges in town. Indulge in high speed internet without breaking the
bank plus more data for your weekend.
 enjoy 10GB of internet for only RM80/month and you also get to carry forward to up
2.5GB of unused internet to the following month.
 domestic calls on FIRST Gold are unlimited
 enjoy free and unlimited instant messaging on WhatsApp and WeChat as well as free
access to Yonder Music streaming.

 FIRST Gold 1+5 keeps your family closer at only RM30 per line.

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 2) Celcom introduces Xpax Turbo with free YouTube, Facebook and offpeak data

Figure 17 : Celcom Xpax Turbo

Celcom has revamped its prepaid offering by introducing Xpax Turbo.

 For the night owls, Xpax Turbo comes with 10GB of off-peak usage between 1AM to
7AM daily.
 For greater value, Xpax Turbo also gives you additional free data quota for Facebook
and YouTube usage
 For short term usage, RM5 gives you 200MB of high-speed data plus 100MB for
Facebook usage that’s valid for 3 days.

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 3) Celcom offers the iPhone 7 from RM1, 688

Figure 18 : Celcom Iphone 7 Plan

Before the iPhone 7 pre-orders commence in Malaysia, Celcom has revealed its phone
bundling to those who have registered their interest. The iPhone 7 is offered from as low as
RM1,688 on its FIRST postpaid plans from RM98/month.

4) Celcom FIRST Postpaid now upgraded with even more data

Figure 19 : Celcom FIRST Postpaid

Celcom has once again revamped its FIRST Postpaid plans following Digi’s recent new postpaid
refresh. Not only they are offering more mobile data, but they are also giving you the option to combine
both all day and weekend quota for greater freedom.
The popular FIRST Gold Postpaid Plan at RM80/month now gets twice the amount of data (20GB) with
10GB all day and another 10GB for weekend use. If that’s not enough, you can double up again with
Gold PLUS plan (40GB) which gives you 20GB of all day and 20GB of weekend data for only
RM98/month.

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CONCLUSION

Hence, it is important to let Celcom practice strategic management process, by analysing and
evaluating strategic analysis, strategy formulation and strategy implementation in order to achieve
corporate goals and objectives. Apart from this report, the author had learnt how to analyse and identify
the general and competitive environment to formulate the strategy.

Besides, the author had learnt and used scenario planning to identify the possible future, in order to
analyse the SWOT analysis. By using SWOT analyses, Celcom had analysed the strength to support
the organization’s goals and understood the environment methods which were always changed. Due to
strategy formulation, the author had learnt how to formulate the strategy by analysing business level
strategy and corporate level strategy in order to expand the business and market share.

Lastly, strategy implementation is the last part of the process which helps the Celcom to identify the
organization structure and organizational culture, in order to improve leadership and strategy control
system. Without the strategic management process, it is hard to let organization grow business and
position in the market, while hard to compete with the competitors in the industry.

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RECOMMENDATION

In our opinion, Celcom have done well for their market. They also have controlling interest in mobile
operator in Asian. They got the cheapest plan for subscriber with minimum budget. They improve quite
a lot in wider coverage also. I also like to suggest on Blackberry package that they offer to users. For
young adults, I believe a monthly RM50 commitment fee for voice call will suffice. Celcom price for
monthly subscription fee at RM118, meanwhile Digi at RM108 and of course Maxis is the expensive
about RM200. About the Term and Condition on Blackberry Plans, I hope they will state clearly Term
and Condition compared to Maxis. They have very detailed Term and Condition.

Celcom need to understand and respond to its competitors' business structure and strategies, and
capitalize on their weaknesses. Stay up to date on the major developments affecting the company.

The company's core strengths and weaknesses and areas of development or decline to be analysed
and presented in the profile objectively. Recent developments in the company covered in the profile will
help to track important events.

Equip itself with information that enables Celcom to sharpen its strategies and transform its operations
profitably.

Opportunities that the company can explore, and exploit should be sized up and its growth potential
assessed in the profile. Competitive and/or technological threats should be highlighted.

Gain key insights into the company for academic or business research.

Key elements such as SWOT analysis and corporate strategy are incorporated in the profile to assist
Celcom’s academic or business research needs.

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REFERENCES

1. CELCOM. (1988). Retrieved from http://www.celcom.com.my/personal

2. MIND TOOLS. (2014). Retrieved 2016, from
https://www.mindtools.com/pages/article/newTMC_05.htm
3. THE MARKETING MIX DEBUNKED. (2014). Retrieved 2016, from
http://marketingmix.co.uk/
4. UK ESSAYS. (2015). Retrieved from
https://www.ukessays.com/essays/marketing/analysis-of-major-players-in-
malaysiantelecommunication-
industry-marketing-essay.php
5. UNI ASSIGNMENT CENTRE. (2015). Retrieved from UAC:
http://www.uniassignment.com/essay-samples/management/u-mobile-cannot-predictexternal-
environmental-changes-management-essay.php

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APPENDIX

The table shows that Celcom is more efficiency compare to other company in many types of term. It
also shown Celcom create competitive advantage where the customer place greatest values compare
to competitor.

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FORMAT

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