100%(1)1 out of 1 people found this document helpful
This preview shows page 12 - 14 out of 16 pages.
As shown in Table 1 and 2, rural users, young adults, students are within the segment which is price sensitive. UM should form strategic alliance with other service providers to ride on their infrastructures and extending its service to the same market segment in different states. Once UM has achieved the repositioning, it can close the gap between itself and Digi or replacing Digi’s as the top 3 Telcos in Malaysia by creating its points-of-difference (PODS) (Goh 2015b; Ennew & Waite 2013). In addition, formation of strategic alliance can also allow UM to create new perception within the same market with its scarce resources. UM can own less teleccommunication tower and reallocate its resources in necessary infrastructure developments and offer better service qualities. When the service qualities are improved, people will start to change their brand perception and attempt to accept the offered products (Liew 2016). For instances, Digi was perceived to have bad signal coverage in early years however it managed to recover by improving its service quality and creating a successful marketing campaign known as “Yellow Coverage Fellow”. The marketing campaign resulted a massive increase of brand score and succesfully changed the perception of “bad coverage” (Campaign 2010).
5.0 Recommendations UM can choose to implement market-challenger strategies to attack the market leaders aggressively to gain future market share. As a challenger, UM can set high aspirations while leaving the market leaders to fall prey and run business as usual. Although UM aspired to be the top telco in Malaysia but realistically it should target its market challenger strategies towards Digi, which also offering affordable products to subscribers (Kotler & Keller 2015). It was suggested that UM has to reposition itself in the previous session and expand its subscriber base by targeting the same segment at different geographical locations or different segment in the same regions. Each chosen target customer segment should have a tailored marketing mix based on the competitive advantage of the company (Ennew & Waite 2013). Table 3 and table 4 below illustrated the recommendation of marketing mix decisions while targeting different customer segments. Recommendations in table 3 are tailored for decision to penetrate into same customer segment residing at other geographical locations, while table 4 suggested the decisions to penetrate into new market, particularly the corporate/professionals segment. During the growth stage of market penetration, UM has to raise marketing expenditure to meet competition and continue to education the targeted market segment to adopt its products. Under such circumstances, UM will be expecting to experience sale rise and lead to profits increase when marketing expenditures are average out over larger volume. However, the marketing activity has to be monitored and shift the trial communications to loyalty communications at the later stage (Kotler & Keller 2015). Gerpott et al. (2001)