Suren Tanusia

Azhani

MARKETING PLAN

I.   EXECUTIVE SUMMARY

Maxis is Malaysia's leading telecommunications company and market leader with a total mobile phone subscriber base of more than seven million, as at 31 December 2005. Maxis continues to enhance how people communicate and live with an impressive array of innovative products and services. Surpassing the seventh million mark has become a milestone in our list of achievements. Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be a regional communications operator. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India will provide tremendous growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the world’s most attractive high-growth, low-penetration markets, while diversifying our market base.

Apart from that, Maxis was the first to launch 3G Connect Card, PC Webmail, Video Mail and 3G prepaid. They are having significantly increased the 3G service coverage since its launch in July 2005, catering to more than 740 sites across Malaysia. Their growing high-performance 3G network offers mobile telephony at broadband speeds enabling Internet access throughout Malaysia. Both mobile phone and laptop users can now enjoy enhanced communication combined with extensive entertainment and information on the go, such as video calls, live mobile TV, games and wireless broadband Internet with transfer speeds of up to 384 kilobits per second. The aim: affordable, instant access with real time-results.

Maxis Berhad is the leading mobile communications service provider in Malaysia with over 11.4 million mobile subscribers as of 30 June 2009.

• Maxis has been providing a full suite of services on multiple platforms to fulfill the telecommunications needs of individual consumers, SMEs and large corporations in Malaysia since it was established.

ABOUT THE COMPANY

Maxis mobile service is offered on a postpaid basis under the Maxis brand and via a prepaid format under the Hotlink brand. The use of these two distinct brands, underpinned by synergistic values, has enabled Maxis to develop its prepaid business successfully while maintaining growth in its postpaid segment.

Maxis has also pioneered and led the Malaysian market in delivering innovative mobile products and services.

It was the first to launch 3G services in Malaysia and it is known as Maxis3G.

• In July 2005 and in September 2006, it became among the world’s first to use HSDPA, where it is a high-speed upgrade of its 3G network, to provide wireless broadband services.

It was the first operator to bring the Blackberry and Apple iPhone (smart phones) to Malaysia.

ABOUT THE COMPANY (CONT.)

433SOURCE : http://www.2da6s.com/2010/04/forbes-global-2000/

II.   THE CHALLENGE

MAXIS is a communication and internet technology base company which provides various kind of services

In the ever challenging market, MAXIS had to compete against other company that provides the same services

Rate plans and marketing strategies plays an important role for MAXIS to gain success in sales figures

Other then that, having good customer services could increase peoples trust on them

III.   SITUATION ANALYSIS

Company Analysis GoalsMaxis is about life enablement. Simple - straight forward and easy to understand. Trustworthy - inspires confidence, assurance, conviction and reliance Creative - everything we do and everything we say

Focus - achieving an efficient cost structure, it is currently having to increase its investments, including subsidies and operating expenses to support its broadband and data business, which will provide significant additional revenue in the future.

Culture – Corporate Social Responsibility

Market share (2009) * Maxis -40% * Celcom – 34% * Digi -25% * U Mobile - 0.7%.

Customer Analysis

Different age group or target audience, MAXIS cater with different packages and plans. Basically there is a plan for everyone no matter their age, gender or culture backgrounds.

Family and FriendsPOSTPAID with supplementary lines

Working AdultsMobile plansHigh speed BroadbandIpad plans

School StudentsPrepaid Plan

StudentsHOTLINK YOUTH CLUB planBroadband plan

Collaborators

Acquisition of a :51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia

74% equity interest in Aircel, India

Competitor Analysis

DIGI, high coverage of EDGE and more stable. Slow but stable at 384 Kbps or 48KBps. Cheap calls plan but bad coverage.

CELCOM, best coverage in town with good speed but very expensive of RM98 per month of 3.6Mbps. Good for surfing but not download. Not worth for 5GB/month limitation.

IZZI, network with stable and fast connection at least times of 1 Mbps (no heavy traffic during certain times). Only at selected network coverage area and sometimes do not get internet even at best coverage zone.

DIGI vs MAXIS vs Celcom Postpaid Plan

IV. MACRO-ENVIRONMENTAL ANALYSIS

(PEST)

Political Economy

in 2008, the government announced all Telco

users compulsory to register their SIM CARDS

because there is a lot of crime happening through

phone calls, text messages, and MMS.

During economic downturn, a lot of employees

were retrenched. Since unemployment rate is

high, crime level in the country tend to increase.

Due to this, the government started to recruit staff

to work in the public sector.

Mobile and internet is misuse to deliver political

views. They also use mobile and internet to plan

demonstration

In 2009, the whole world was facing economic

downturn.

Malaysia was badly affected by this, but the way

consumers behave showed that there is no effect

on them.

Internet and mobile technology has widely used in

business to follow the economic situation

Social Technology Consumer’s tastes changes as they pay high

price for quality product in terms of acquiring the latest technology plus good customer services.

The latest social trend is people like to SMS more nowadays. With SMS consumers could convey their message in the cheapest way.

The family structures in the recent day are couple like to have only 2-4 children’s only. Compare to the olden days couples would have 4-7 children’s. This would influence the pattern of mobile usage/users.

Handphones and internet technology has became a trend in the new millennium

Consumers tend to change just to use the latest mobile plans

Nowadays top up for prepaid phones can be done through internet transaction.

Payment could be done using kiosk machine which is situated at hot spots

Improvement in communication technology. By using hand phone, users can call their friend and look at what they are doing via 3G. 3G enable users to view users from different places. If users were to use internet, they can do video calls.

Users can surf internet to check mail, facebook, twitter , map (GPS). They even could check their account, bills and latest packages and plans online

E-learning, nowadays studies is not necessary done at class room only. New improvement in technology has enable users to learn virtually. As long as the users can surf the internet user can study anywhere and anytime in the world.

V. SWOT ANALYSIS

Strengths Weaknesses

Good network coverage around Malaysia

Have strong brand image and as merge as the market leader in Malaysia

Good deals and special offers for different age groups and also target groups

The oldest and biggest in terms of size and technology.

Provides reasonable plans and packages for all users

Always the first to introduce new mobile plans

All type of telecommunication and internet technology services.

Interruption of the line at certain areas

Bad customer services

Deals and offers are limited to certain time and area only

Users tend to switch to other telco with the existing number remains with no extra cost.

Lack of MAXIS centers to enquire information or to pay bills.

For broadband, speed is good during the first 7 days after activation, then the speed goes slower later on.

Opportunities Threats

New technology is developing like mushrooms, so when there are new telecommunication gadgets, there will be opportunities to explore in.

Growth of people using hand phones and internet services provides more market opportunities.

Expanding their business to overseas

Building more MAXIS centers especially suburban areas

New events and occasions to be sponsored

Growing market where many exiting telco company plus new emerging telco company are competing with MAXIS.

Maxis customer switch to different telco in terms to enjoy the service and benefits by their competitor

New rules stating that all the hand phone users must register their number to their own respected telco centre

Financial crisis, economical issues or natural disaster

]

VI.   MARKET SEGMENTATION

MAXIS

Description

HOTLINK PREPAID SERVICES, HOTLINK YOUTH CLUB

It is only for college students only who can provide an ID card of the college that they are studying currently. And the limitation is that student cannot exceed 25 years old

Percentage of sales

Edge Financial Daily: Net profit - RM552 million first quarter ended March 31, 2010.

Hotlink prepaid profit has decrease due to new low rate plan. The market share for maxis in the industry is 40.9%.

What they want

Youngsters, prefer products cheaper price, once students register, the phone is activated for 4 years. If they don’t reload for a couple of months, the line won’t be barred unlike normal plans.

Better Speed, Better Value

MAXIS

How they use product

For prepaid users, they need to reload manually by getting it from the shop or online

For postpaid users, they need to pay monthly where bills will be send to them

Packages and Plans, depends on which package they choose and benefits they entitled too

Maxis broadband, there are few packages with different Internet benefits

Hotlink Youth Club, where student use them by showing student ID card

How to reach them

Advertisement on TV stations Facebook, twitter and youtube Phone, e-mail and snail mail Online advertisement MAXIS centers

Price sensitivity

Competition Based Pricing : For instance, Celcom first launch its SMS rate which was RM0.10. Thus maxis starts to reduce their SMS price rate to more cheaper RM0.05

Now lately RM0.01 per SMS. Another example if maxis come out with a new plan,

immediately digi and celcom will launch a new plan of theirs.

PRODUCT / PRICE

VII. MARKETING MIX (4 P’S)

PLACE

Distribution Channels:

ZyXEL Communication Corporation (M) Sdn. BhdAdvanced Broadband Communications Sdn. BhdTechScience Consultants & Services Sdn. Bhd

MAXIS Partners

MAXIS Alliances

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

 Below is the list of Maxis offices and its locations.

MAXIS HEADQUARTERS - LOCATIONSMaxis BerhadAras 18, Menara MaxisKLCC, Off Jalan Ampang50088 Kuala Lumpur

MAXIS OTHER OFFICES AND LOCATIONS Maxis Subang Hi-TechPlot 12155Lot 13, Jalan Delima1/1 Subang Hi-TechIndustrial Park40000 Shah Alam

Maxis System Operations Center Sg-BesiLebuhraya Puchong-Sg Besi57000 Bukit JalilKuala Lumpur

Maxis SunwayLevel 1, Menara Sunway AnnexJalan Lagoon TimurBandar Sunway46150 Petaling Jaya

USJ WarehouseLot 651, Jalan Subang 2Off Persiaran Subang47500 Subang Jaya

PROMOTION

VIII.   CONCLUSION

At just six years old, Maxis Communications might seem young to be

Malaysia's leading mobile telco company. However, despite its relative

youth, the company has matured rapidly and amassed the country's

largest subscriber base of more than 7 million users. Going forward, while

its eyes are still on the mobile business.

Maxis will also grow its broadband business, invest selectively in its own

fixed-line footprint and leverage on the HSBB initiative. It intends to

capitalise on its large customer base to push more content and offer

broadband services. it has its eyes set on future growth and regional

expansion - and there has been no shortage of rumors about its

aggressive search for a new international partner.

THANK YOU

Any Questions ?????