Maxis Ang Zheng Zhe(J09005452)

MKT 228
1.0 Introduction-Maxis Mobile Sdn. Bhd.

Maxis Mobile Sendirian Berhad is the leading telecommunications service provider in Malaysia
and it is founded in year 1993, by its founder, Ananda Krishnan. Being the leader within the
telecommunication industry, Maxis Mobile is the fifth largest Public Company in Malaysia with
total subscribers of 6.4million, providing a wide range of innovative mobile, fixed and
international network services to their customers. The head office is located within Menara
Maxis, an elegant 49 storey building adjacent to the Petronas Twin Towers Kuala Lumpur City
Centre. The building is the headquarters of the Tanjong Plc Group of Companies, Maxis
Communications Berhad and their associated companies. Maxis Mobile Sdn Bhd first used the
Cardax System (CC Unix) since 1998 when they moved their operations into Menara Maxis,
owned and managed by Tanjong City Centre Property Management (Tanjong Plc Group of
Companies). Generally, Maxis provide varieties of mobile telecommunication products and
services such as broadband, international roaming, MMS and so on. They started with the phone
number starting with the prefix of 012. Later they purchased the Timecel which is another
mobile services provider and that is when they started offering phone number starting with prefix
of 017.

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2.0 Identify and assess company’s current marketing effort and strength

In today’s competitive economy and globalization, company must to be better equipped to create
successful businesses. Consumers nowadays are armed with internet, are more informed than the
past periods. Hence, in order to be success, company must first understand how to deal with
these market changes.

2.1 Marketing Mix of Maxis

The marketing mix is conducted now to determine issues and to extract information in relation to
the Maxis product, price, place and promotion.

2.1.1 Product

Maxis provide a wide range of services and these includes of mobile services, fixed services, and
also international gateway services. These services are not simple to differentiate and the only
part of it services that is capable of being subject to differentiation is Maxis service package, that
contains the SIM card used to enable the use to make phone calls and various other activities
relating to the use of a mobile phone. This will be the product that we will subject here for
analysis. There is clearly a need for more diversification of the features of the service pack in the
sense that the services need to be enhanced and differentiated from the competition, which is the
service pack provided by the Maxis. What is needed is more attractive features and bonuses that
are not offered by competitors such as DiGi and Celcom. There needs to be an incentive to
encourage the users of the mobile phone to select the Maxis package in contrast to other
packages.

2.1.2 Price

Concerning pricing issues, the price at present is not very different from their competitors and
hence there needs to be a change in the pricing strategy of Maxis in order for the pricing to be
even more competitive than that of its competitors. Through proving the customers with better
prices than its competitors, Maxis can go a step closer to achieving its marketing objectives.

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2.1.3 Place

Maxis has a number of branches all around Malaysia and it is based in KLCC. There are
thousands of dealers that sell Maxis products all over Malaysia and these dealers are licensed to
sell Maxis products. Through the use of this strategy, Maxis increases its reach and strengthens
its presence. This is an important consideration and what can be recommended here is that Maxis
continue to enhance its reach all over Malaysia and overseas as well. This is something that DiGi
has not do yet and to be the first to do this will be a good opportunity for Maxis to increase its
reach, performance and profitability.

2.1.4 Promotion

Promotional activities have to be enhanced in order to deliver the message about the benefits of
the improved product and hence, there will be a need for a more intensive promotional campaign
within Malaysia. The following are some of the tools that can be used by this company to
advertise its services more effectively:

1. Newspapers advertising

2. Television advertising

3. Radio advertising

4. Sales promotion

5. Public relations

6. Magazines advertising

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2.2 SWOT Analysis of Maxis

Here, SWOT analysis method is being used to analyze the strengths, weaknesses, opportunities
and threats of Maxis. In these report, strengths and opportunities of Maxis are more emphasized.
Diagram 1 below shows that SWOT analysis of Maxis

Strengths Weaknesses
-Strong regional player -Over dependence on Malaysia
-Affiliation with MEASAT Satellite System

Opportunities Threats
-Alliance with Microsoft -Regulatory framework
-Growing broadband market in Malaysia -Mobile number portability in Malaysia
-Accelerating wireless market in Asia Pacific -Intense competition

Diagram 1

2.2.1 Strengths of Maxis

2.2.1.1 Strong Regional Player

Maxis is one of the leading telecommunications service providers in Malaysia which offer
various types of services in the area of mobile communications, fixed line, international gateway
and broadband internet services. Currently, Maxis has presence in India, Indonesia and Malaysia.
According to the research, Maxis announced that their active 3G user base had reached 1.3
million in March 2008, compared to 350,000 in March 2007. Not only that, Maxis also provides
broadband services, which ranked as the number 1 retail broadband VSAT for petrol stations in
FY2006,with more than 800 sites nationwide. Besides that, Maxis has also consistently ranked
among the top 10 public companies in Malaysia. In year 2007, Maxis has awarded for excellence
in telecommunications sector in mobile telecommunications.

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2.2.1.2 Affiliation with MEASAT Satellite System (MSS)

Maxis is a fully owned subsidiary of MEASAT Global. MEASAT Global operates in India and
Philippines. It provides satellite communication services to Asia’s broadcasters, direct-to-home
pay television platforms and telecommunications operators. MSS has operating satellites across 3
orbital slots and they provide satellite capacity to over 145 countries. In 2008, MSS expanded its
fleet with the launch of MEASAT-3a satellite.

Maxis is a telecom service provider and therefore the company’s affiliation with MSS makes it a
vertically integrated company. Not only that, MSS provides a range of broadcast and
telecommunications services. Hence, Maxis can leverage the MSS’s subscriber base to
strengthen its market position in Malaysia and internationally as well.

2.2.2 Opportunities of Maxis

2.2.2.1 Alliance with Microsoft

Maxis has entered into a partnership with Microsoft in year 2008. Under the partnership, both
Maxis and Microsoft will develop and deliver integrated solutions that address communications
requirements in the enterprise sector. These solutions will include of integrated internet-mobile
services for enterprises of all sizes. In alignment with the partnership, Maxis has recently
launched two solutions, Maxis Mail and Maxis Push Email to expand into the business email
market. Maxis Mail is a subscription-based email service that delivers desktop email using
Microsoft’s exchange solution on office PC for SME’s. With this solution in the Malaysian
enterprise market, Maxis Mail eliminates the need for companies to purchase an enterprise server
for email. Through Maxis Mail, Maxis expects to improve enterprise email capability and
mobility for small and medium-sized businesses, which make up about 520,000 accounts in
Malaysia. Meanwhile Maxis Push Email allows business employees to send, receive email and
schedule their appointments based on Microsoft Exchange Solution using their Windows
Mobile-based device.

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2.2.2.2 Growing broadband market in Malaysia

Recently, the broadband adoption in Malaysia has witnessed a sharp growth. According to the
research, the total number of residential DSL connections and revenues in 2007 was 0.9 million
and 314 million respectively, which is expected to reach a value of 2 million and 776 million
respectively in the year end of 2011. Being one of the leading players in this segment, Maxis
Communications is likely to benefit the most from this opportunity.

2.2.2.3 Accelerating wireless market in Asia Pacific

The telecom industry has witnessed growth of mobile phones. The total number of mobile
subscribers worldwide at 2007 stood at 3.1 billion. And this figure is expected to be increase
until 4.4 billion by the end of 2011. This growth is mainly driven by the booming Asia Pacific
mobile market. From the statistic above, growing Asia Pacific wireless market will boost
demand for the products of Maxis.

2.3 Marketing Philosophy

In the modern world, marketers want to build a customer driven marketing strategy for creating
lasting customer relationships. To do this, they can use one of the five marketing management
philosophies- production, product, selling, marketing and societal marketing concept. The
appropriateness of these philosophies depends on the nature of the business and target market.
Now we will discuss each of these philosophies for products and services that offered by Maxis.

2.3.1 Production Concept

Companies following production concept believes that it should produce goods efficiently and
try to bring down prices so that products become affordable. This concept is useful where the
demand is more than supply. In this case, Maxis can use production concept if their target market
belongs to any third world country, where people are more interested in obtaining products than
its features.

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2.3.2 Product Concept:

According to product concept, people like products and services which are very good in terms of
performance and quality. Maxis can adopt product concept if their target customers are often
judge products and services before they are buying.

2.3.3 Selling Concept:

According to selling concept, company’s entire focus is on selling and hence making a lot of
sales. The selling effort is backed by serious promotional activities and aggressive advertising.
Maxis can use selling concept in the marketing of their products such as broadband service, if
they have overcapacity.

2.3.4 Marketing concept:

The marketing concept is concerned with identifying customer needs and delivering products
which give greater customer satisfaction than the competitors do. Marketing concept believes in
“gardening” instead of “hunting”. Marketing concept rests on four pillars- target market,
customer needs, integrated marketing and profitability. If Maxis target market belongs to
businessmen, they should use marketing concept, because customers are more conscious about
understanding more about the products and services offered by Maxis.

2.3.5 Societal Marketing Concept:

Societal marketing concept holds that organizations should not develop marketing strategy by
only keeping customer needs in mind but also consider the well-being and betterment of society.
Maxis can use societal marketing concept such as promoting paper-less bill payment (e-bill) to
reduce the wastage of paper and also save the environment at the same time.

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3.0 Discuss the pivotal role marketing plays in the present technological environment

3.1 PESTLE Analysis

A review of the company’s external environment is a pre-requirement to succeed in designing a

strategy that is fit with the company’s situation (Thompson, Gamble & Strickland, 2004). The
PESTLE is used here to analyze external business environment.

3.1.1 Sociological

Keating (2001) argues that the telecommunication industry affects the society. The way of
people live and work had been changed by the products that transformed to society. In the
current world, telecommunication such as Maxis broadband is being implemented and adopted
widely. The demographic environment such as age, gender, education, income and occupation
has an impact on the adoption of telecommunication. In other words, higher educated people
used computer more than less education people. Therefore, the broadband service provided by
Maxis are more targeting on IT literacy.

3.1.2 Technological

Broadband is one of the products that launched by Maxis which is made by the latest technology.
Broadband refers to high-speed “always on” connections to the internet that support the delivery
of innovative content and services (Communication from, 2004). Compared to traditional
narrowband “dial up” connections, broadband access is immediate. With every new technology
created, businesses will either improve or decline. Since technology rapidly changes, it is
important for telecommunication companies to ensure they understand the changing
technological environment and they are updated to what is happening and be alert to any possible
negative aspects of any innovation that might bring resistance from users and cause decline in
sales.

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4.0 Identify the six challenges

In this part, we will identify what are the challenges for Maxis and provide recommendations for
the problems occurred at the following part.

4.1 Keeping the brand relevant

A common challenge faced by marketers is that as customers’ age their interests and purchasing
habits evolve. Some companies like Maxis are able to develop products and services to appeal to
customer as they age from one demographic and psychographic segment to the next. However,
there are many companies which lack of resources to engage in ongoing research and product
development. If company found their brand is rigidly contained within a demographic segment,
it is encouraged for company to start thinking about how their brand is positioned in the minds of
the next generation of consumers. One of the keys to revitalizing a classic brand is to understand
how the positioning of the brand affected consumers’ purchasing behavior in the brand’s heyday
and evolve that positioning to be relevant to today’s consumer. And this same thinking can be
applied to every brand that is locked into a demographic “boundary.” Sooner or later, customers
are going to grow up, grow old or even death and company got to maintain a healthy pipeline of
customers.

4.2 Marketing ROI (Return On Investment)

Here, the proposed sales forecast for Maxis will be show at the following table:

Element (RM) Sales 2010 (RM) Expected Incremental Sales 2011 (RM)
(%)
Prepaid Card 10,687 million 20 12824million

Postpaid Card 2,073 million 15 2384 million

Broadband 594 million 20 712 million

Total 13,354 million 15,920 million

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Currently, Maxis is the market leader in this telecommunication sector in
Malaysia which has a 39.9% among the mobile subscribers market at December 2010. Follow by
Celcom at 34.4% and Digi at 25.7%.

4.3 Getting the correct POSITIONING platforms to communicate with the consumers

Diagram 2: Product Life Cycle

The telecommunication industry, as well as the others industry sectors are now facing the same
problems which are increasing number of demands focused on reducing the environmental
impacts of how products are designed, manufactured, used and managed at end-of-life. As for
Maxis, the product life cycle consist of four stages, there are introduction, growth, maturity and
decline stages. In this case, we will take broadband as the example for product life cycle.

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4.3.1 Product Life Cycle
4.3.1.1 Introduction stage
In the introduction stage, Maxis seeks to build product awareness and develop a market for their
new launched broadband. The impact of marketing mix of Maxis is as follows:

-Product branding and quality level of the broadband is established and intellectual property
protection such as patents and trademarks are obtained.

-Price of broadband is low penetration pricing in order to build up market share among the
competitors.

-Distribution of broadband is only available at Maxis Center and some selective partnership
center until consumers show acceptance of the product and demand for it.

-Promotion such as free gifts is given out for the early subscriber.

4.3.1.2 Growth stage

In the growth stage, Maxis is looking out to build brand preference and increase their market
share.

-Quality and services of broadband is maintained and additional features and support services
may be added such as extra quota for selective plans.

-Price of broadband is maintained as the company want to increase the demand with little
competition.

-Now, Maxis is providing more distribution channels at selective area as demand increases and
customers accept the broadband service.

- Promotion is now target to a broader audience.

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4.3.1.3Maturity Stage

Here, the strong growth in sales is decreasing. Now, competitors like Digi and Celcom might
come out with similar products. Objective at this point is to remain market share and maximizing
profit at the same time.

- At this point, Maxis might add the value to the broadband service in order to differentiate from
the competitor.

- Not only that, Maxis will offer a lower price compare to the competitor.

-There will be more outlets which offer broadband at this stage so that it is convenient for
customer to subscribe the broadband.

- Promotion that used now will be more emphasizing on differentiation.

4.3.1.4 Decline Stage

At this stage, broadband service might be declined due to there is new technologies which will
take over the broadband service. As the sales of broadband decline, Maxis will have options
either to:

-Maintain the broadband service by adding in new features and finding new uses.

- Harvest the product to reduce costs and continue to offer the service.

- Stop providing the broadband service.

The term “life cycle “ implies a well-defined life cycle as observed in living organisms, but
products do not have such a predictable life and the specific life cycle curves followed by
different products vary substantially. Consequently, the life cycle concept is not well-suited for
the forecasting of product sales.

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4.3.2 Boston Consulting Group

Boston Consulting Group is one among the best tools for companies to develop marketing
strategies and perform marketing analysis related to plan and analysis the portfolio of products
and services. By using the BCG Matrix Analysis approach, business and marketing managers are
able to better understand the marketplace and develop effectively plans and strategies. The BCG
Matrix uses simple and yet very powerful approach to position each portfolio member such as
product and service into the four-quadrant BCG Matrix as shown at diagram 3.

Diagram 3

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4.3.2.1 Question Marks (Problem Children)

BCG Matrix - Question Marks

The portfolio member positioned in the Question Marks quadrant of the BCG Matrix has low
market share compared to another three portfolio member. The Question Mark position is typical
for new products and services that are currently well established businesses in this. This market
is growing and there are opportunities for new businesses and the market is becoming more
competitive. At the same time there is a high risk involved with investing in this market and
because Question Marks have to develop and grow and require continuous investments and
competitiveness. The typical strategic scenario for Question Marks is increasing the market share
by using resources / investments from the company's current Cash Cows. In this case, fixed line
service that provided by Maxis can be recognized as question marks as this service is still
growing and there is high risk involved which it has to develop and continue to grow by using
the resources from the cash cow products of Maxis.

4.3.2.2 Star

Stars are the businesses, products and services with high market share compared to their
competitors. Here, broadband is recognized as the Stars for Maxis. Stars do business in high-
growth market and they are the market leaders. Most successful and competitive business
organizations must have at least one Star on their BCG Matrix. Dealing with strong competition,
Stars have to continuously improve their business in order to keep their leadership position in the
marketplace. So, it is strongly recommend that Maxis should invest more on broadband service
in order improves the service of broadband and to keep their position as market leader among
their competitors.

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4.3.2.3 Cash Cow

Cash Cows are SBUs, products and services which generates most of the cash flows in business
organizations. The market is not very attractive, the market growth rate is generally very low, but
the Cash Cows have high market share compared to their competitors. This business generates a
lot of cash from the Cash Cows and invests in other businesses, products and services to build a
strong long-term portfolio. In this case, postpaid and prepaid service provided by Maxis would
be the cash cow for Maxis because these two services generate the majority of cash flows in
Maxis. Postpaid and prepaid have to be strong in order to protect and keep the market share
while maximizing the cash flow at the same time. Therefore, Maxis should focus on keeping the
strong market position and defend the current market share, take advantage of sales volume and
leverage the size of operations to support another three portfolio members.

4.3.2.4 Dogs

Dogs have very low market share and operate in low-growth market. It is unlikely that this
business is very profitable and more likely Dogs are losers. Dogs do not generate substantial cash
flow and have no potential to grow. Dogs need careful strategic consideration and most likely
new strategy development. Potential strategies are include withdrawal from this business, selling
this business, repositioning the current business and developing stronger business or optimize
operations and reduce costs as much as possible. Until now, Maxis doesn’t has any products and
services which fall under this category.

By using these BCG Matrix, company like Maxis is able to screen opportunities that open to
them and help company to identify how cash and resources can best be used to maximizing
future growth and profit as well.

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4.4 Cutting costs but still growing more value to the Brand

Today, many companies are looking forward to cut their cost. By using the correct method to
analysis, companies can cut the production costs but still growing more value to the brand. One
of the best method is using Ansoff Matrix as shown in diagram 4.

Diagram 4

4.4.1 Market Penetration

Market penetration occurs when a company enters/penetrates a market with current products.
Maxis want one of their product-broadband to make more well-known all over the nationwide in
Malaysia in order to gaining competitors customer in telecommunication sector. Therefore Maxis
make a lot of promotion and using different way such as advertising, through television, internet,
newspaper and so much more to recall from customer their mind.

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4.4.2 Market Development

A market development strategy targets non-buying customers in currently targeted segments. It

also targets new customers in new segments. Maxis seeks to earn consumers’ confidence and
preference and to follow and anticipate consumer trends, creating and responding to demand for
its products. Maxis have been operates in more over 63 countries in the world and they are keep
increasing their market and target on non-buying or competitor’s customer.

4.4.3 Product Development

Product development is an event that design new similar or same region of product and introduce
into the current market. Existing products and services offered by Maxis are a lot, but yet Maxis
still keep invest and design new better products and services to their customers to expand their
sales.

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4.5 Getting anyone to pay attention to what you’re saying

In order to getting people to pay attention to what we’re saying, promotion is one of the best tool
to use because promotion can attract customers to purchase, and it involves communicating
information between distribution channels. There are three promotion objectives which are
inform, persuade and remind. Now, promotion mix is used here to communicate the information
between the distribution channels of Maxis and its customers. There are five elements in
promotion mix which will be mentioned as below :

4.5.1 Sales Promotion

Sales promotion is to stimulate customer interest trial and purchase. Sales promotion offer
intermediaries for promotion allowance and discount. Maxis has a very good reputation that
people would like to try the products. The sales promotion will do further encourage to customer
to purchase the services and products. It also encourages the intermediaries to promote services
provided by Maxis. And Maxis should show the advantages of their services and products to
customer that compare to their competitors.

4.5.2 Advertising

Advertising can introduce new product to the market or remind customers the product .Maxis
should use product advertising for their broadband service because their broadband service is
well known than the other competitors. The advertisement for Maxis can build the selective
demand of customers. Media such as magazine, TV and internet advertisement can remind their
target customer about their services and products.

4.5.3 Salespeople

To attract the customer to buy the product, Maxis should know their customer better. Maxis is
encourage to use salespeople to promote their products and services because they have enough
budget. Through promoting using salespeople, customers might build up awareness and also
confident in products and services that offered by Maxis.

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4.5.4 Other Promotion

Besides advertising and salespeople, Maxis can also use external environments as opportunities
to promote their products and services. Since the economic recession, people might prefer
valuable plans and services. Hence, Maxis can offer lower price for services and products so that
these would be the best choice for the customers.

4.5.5 Integrated Marketing Communication (IMC)

In order to deliver a consistent and complete message to target customers, Maxis should use IMC
to communicate with their customer. An example of that is the design relate to the budget setting
and advertising strategy.

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4.6 Fighting to grow the market share in presence of stiff competition

4.6.1 Porter’s Five Forces

The Porter’s five forces are used to understand where power lies in a business situation. In this
case, five forces is used here to helps Maxis to understand the strength of broadband and its
current competitive position.

4.6.1.1 Threat of New Entrants

The mobile telecommunication industry has a high barrier to entry due to its high startup capital,
licensing requirements, the need of wide network coverage, scare spectrum allocation and the
overcrowded nature of the industry (Maxis Berhad Prospectus, 2009). Apart from that, through
years of strong marketing push and establishment, consumers are tied with leading operators in
Malaysia. However mobile broadband services are competing to provide wired and wireless
broadband solutions to consumer apart from services offered by mobile operators.

4.6.1.2 Power of Buyer

Mobile broadband focuses on mobility. With existence of WiMAX and mobile broadband which
is provided by mobile operators, consumer has little bargaining power as there are only few
providers and little substitute. Currently, Maxis and Celcom are focusing on High-Speed
Downlink Packet Access (HSDPA) which provides better broadband service. For high speed
mobile broadband, consumers are limited to either Maxis or Celcom, which makes fewer choices
for mobile HSDPA. Meanwhile, due to limitation of area coverage offered by WiMAX provider,
mobility become an issue and makes mobile broadband a priority of consumers.

4.6.1.3 Power of Supplier

Mobile broadband requires equipments such as modem and infrastructures in order to meet
consumer’s expectations. There are only few established companies such as Huawei which
broadband providers could rely on in providing consistent quality and quantity. As there are
limited choices of supplier, operators are bound to a high switching cost and bargaining power of
supplier.

4.6.1.4 Product Substitute

With the growing demand for mobile broadband, Worldwide Interoperability for Microwave
Access (WiMAX) has been developed to meet the needs for mobility. Close competitors such as
Digi and U Mobile whom had recently began developing HSDPA technology to compete with
Celcom and Maxis who is the pioneer in HSDPA technology. Telekom Malaysia is engaging in
High Speed Broadband (HSBB) to counter mobility and wireless broadband providers (High-
speed Broadband, 2009).

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4.6.1.5 Intensity of Rivalry

Competition is intense as mobile broadband providers are securing their own market share by
offering wired and wireless broadband services. However, The Malaysian Communications and
Multimedia Commission (MCMC) monitor competition through Communications and
Multimedia Act 1998 (CMA) by lessening competition (Maxis Berhad Prospectus, 2009). The
Act prevents rate fixing, market sharing or boycotts. It has rights to direct licensee to cease
conduct which affects a balanced competitive market.

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5.0 Make company more market and customer

5.1 How to keep the brand relevant?

There are the ideas that Maxis can use:
i) Conduct attitude, awareness and usage studies with consumer which younger than
customer’s youngest demographic boundary. Through using insights which gained
from these research, this will help company to plan ahead and set the tone that
company must continue to evolve its marketing activities to stay relevant. For
example, Maxis can conduct a usage studies on customer which age from 28-40 to
understand what are the needs of these age group on telecommunication services.
ii) Build a knowledge-base of the media, consumption habits, favored brands and
cultural trends impacting or influencing company’s future consumers. A great benefit
to this activity is company will often gain great ideas through the study of other
brands and seeing how they communicate with their customers. In this case, Maxis
has built a knowledge base of favored brands of smartphones currently. And Maxis
has comes out with their new plans which attracted the younger generation instead of
the businessmen. Maxis has offered several plans with is affordable and worthy for
younger generation to subscribe. With the subscription of plans with Maxis, customer
can get the latest high tech smartphones such as BlackBerry and Iphone at a lower
price or even get it for free.
5.2 Return On Investment (ROI)
Sales forecast:
Element (RM) Sales 2010 (RM) Expected Incremental Sales 2011 (RM)
(%)
Prepaid Card 10,687 million 20 12824million

Postpaid Card 2,073 million 15 2384 million

Broadband 594 million 20 712 million

Total 13,354 million 15,920 million

Gannt Chart:

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Activity / Jan Feb March April May June July Aug Sept Oct Nov Dec
2011
Website ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Roadsho ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
w
Public ✓ ✓ ✓ ✓
Relations
Exhibitio ✓ ✓ ✓ ✓
ns
Printing ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Media

Promotion budget

Promotion Strategy Strategies Cost (RM)

Website Most visited website/blog, homepage of 50,000
maxis
Road show Every Tuesday and Friday 350,000
Public Relations During holiday 400,000
Exhibitions During holiday 400,000
Printing Media Every Friday and weekend 50,000
Total 1,250,000

Contingency plan

Promotion tools The risk that would make the Contingency Plan
promotion strategy
unattractive
Website Low number of visitors Advertise at website which
has a high flow of browsing.
Road show Cost is high. Organize event in Maxis
center.
Public Relations Fail to attract the public Organize in shopping mall
Exhibition Fail to attract the public Organize in shopping mall
Printing Media Cost is high. Only advertise on selective
media

5.3 Getting the correct positioning platforms

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By using the BCG Matrix Analysis approach, business and marketing managers are able to better
understand the marketplace and develop effectively plans and strategies. However, there are
limitations of using this BCG Matrix analysis. For example, it neglects the effects of synergy
between business units. Besides that, this model uses only two dimensions which are market
share and growth rate. This may tempt management to emphasize a particular product, or to
divest prematurely. Therefore, it is strongly suggest that company should use more dimensions
instead of only that two.

5.4 Diversification
Besides offering postpaid and prepaid service, Maxis is also pursuing a diversification strategy
by introducing many new products to its ranges. For example, Maxis is going to launch new
phone and GPS of their own brand in near future.
5.5 Promotion
Due to the high cost of promotion mix, Maxis can reduce the costs of advertising using
all the five tools in promotion mix. Maxis can select the most effective tool such as online
advertising which has a higher influence power and save cost.

5.6 Grow the market share

Seems Maxis is the market leader in its current sector in Malaysia, Maxis can consider on
international opportunity as the global market for telecommunication is continuing to grow. To
compete in growing telecommunication market around the world especially in Asia Pacific
countries such as India and Indonesia, Maxis should enhance its expertise in providing their
products and services.

Conclusion:

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MKT 228
Maxis is one of the more successful Malaysian companies that has had a very strong presence
and wide brand recognition in Malaysia. However, Maxis is facing a huge challenge with the
effects of the changing external market and also from competitor. Maxis has to be innovative so
it could have a competitive edge. A strategic alliance with T-Mobile will create a competitive
edge as Maxis will learn the technology and expertise from T-Mobile. With this technology
advancement, further innovative and advance products and services are expected to be launched.
Combined with the strength Maxis currently possess, Maxis will be the leading
telecommunication service provider in Malaysia and maybe global once they are establish in
Malaysia.

References:

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MKT 228
Rockart F 1986 in, "A Primer on Critical Success Factors" in ‘The Rise of Managerial
Computing: The Best of the Center for Information Systems Research, Dow Jones-Irwin, 1986.

Kotler P, Brown L, Adam S, Burton S and Armstrong G 2007, (Marketing), 7th Ed Pearson-
Education Australia

Maxis Company Profile, 2010 (available at

http://www.maxis.com.my/personal/about_us/profile/vision.asp accessed - 5-13-2011)

Yahoo Finance – Company Profile for Maxis 2010 (available at

http://biz.yahoo.com/ic/141/141542.html accessed - 5-7-2011)

IW– Maxis Company, 2010 (available at

http://www.infoworld.com/news/feeds/08/05/07/Maxis-offers-SMS-spam-blocking-and-black-
listing-option.html accessed - 5-7-2011)

Maxis Company Mission Statement, 2010 (available at

http://www.maxis-cg.com/missionstatement.html accessed - 5-11-2011)

Nokia Critical Success Factors, 2010 (available at

http://www.e-competitors.com/Strategy/SBUPlanning/SBUPositioning/SBU_Critical.htm
accessed - 5-11-2011)

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MKT 228
AR –Economic Growth for Malaysia, 2010 (available at

http://www.aseansources.com/jsp/malaysia_economy_stat.jsp accessed - 4-28-2011)

WM - Malaysian Mobile Phone Culture, 2010 (available at

http://web.mit.edu/comm-forum/forums/cell_phone_culture.htm accessed - 4-28-2011)

The Street Dictionary.Com -Mobile Phone Culture in Malaysia, 2009 (available at

http://www.streetdirectory.com/travel_guide/117442/cell_phones/mobile_phone_culture.html
accessed - 5-11-2011)

Companies and Markets – Maxis Communications SWOT Analysis, 2010(available at

http://www.companiesandmarkets.com/Summary-Company-Profile/maxis-communications-bhd-
swot-analysis-43363.asp

http://finance.yahoo.com/q?s=MSFT accessed - 5-18-2011)

Maxis.com – Maxis Reports, 2010(available at

http://www.maxis.com.my/personal/about_us/newsroom/reports/2003/r_19_September_2003_d.
asp accessed - 5-19-2011)

Economy Watch – Malaysia, 2010(available at

http://www.economywatch.com/economic-analysis

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