MM5012

Case:
Telkom Triple Pay

Sydicate 2:
Abiyan Satrio/ 29118155
Andrew C. Putra/ 29118014
Clarashinta / 29118126
Fela Putri / 29118090
Case Overview

Telkom as the biggest telecommunication

company in Indonesia need to market their new
product (which is Indihome) across the country.
Indihome itself is an abbreviation for Indonesia
Digital Home. This product marketed as Triple
Play service, which consist of former Telkom’s
product, which is Home Telephony, UseeTV,
and High Speed Internet Acces (Speedy).

Telkom need to know the potential of each city in Indonesia. With abundant
potential of a metropolitan city, Telkom Witel Surabaya has the responsibility to
perform better than any other Witel in Regional V. However, Witel Indonesia has so
much issues on selling Indihome product compared to the other smaller region. By
knowing the city potential, Telkom can devise a proper strategy in order to market
Indihome as efficient as possible.
Problem

Surabaya is one of the most highly prospective cities to sell Indihome product.
But in reality, the sales achievent until November 2015 is not like the expected
as the figure shown below
Root-Cause Analysis
TOWS Analysis

Internal Factors
Strength Weakness
External Factors

Opportunities SO WO

Threats ST WT

Internal
Factors
External
Factors
Opportunities
O1. Existing fibre-optic backbone in
Surabaya can help minimize capital cost
needed
O2.Online Shop and Online game as the
most frequent activity done through the
home internet
O3. Box office movies as the most
watched shows on TV cable
O4. Consumer needs of package for
calling Cellular non Telkomsel number
Threats
T1. Survey showed that consumer in
Triple Play service industry is price
sensitive
T2. 4G mobile can beat Indihome
internet speed easily
T3. Conventional satellite TV can beat the
number of TV channel with far more
lower price
T4. Telkom’s triple play service bundling
strategy contradicts with anti monopoly
law
Strength
S1. Have access to a lot of capital funds
S2. Widest coverage area in Surabaya
S3. Have the most number of CR channel
S4. Unbeatable internet stability
S5. Pause and rewind features on TV
cable
S6. The only true triple play with
telephony service and free calls included
SO
S1.S4.O2
Invest on online shop and online games
platform Attract them with the high
speed and stable internet connection
ST
S1.S5.T2.T3
Develop mobile app for streaming TV
channel through IndiHome service and
provide pause and rewind features
Weakness
W1. Difficulties on premium positioning
without any significant differentiation
W2. Centralized marketing strategy
W3. Highest price compared to
competitor
W4. Higher package only provide higher
internet speed and not giving more TV
channel
WO
W1.W4..O3
Maximize Box Office movies channel on
TV cable for the higher package
W3.O1
Equalize the price with competitor in the
same area
WT
W1.W3.T1
Offering customer specific products and
giving periodical discounts and use
brand image
W4.T3
Promote the internet and TV cable
package is giving more benefit than
satellite TV
 Strategy 1

Invest on Online shop and Online games platform. Attract them with the high speed
and stable internet connection

Key External Factors

• Customer: Indihome will gain customer from Online shop and Online games platform
• Social: Aligning with current lifestyle will increase company attractiveness
• Technological: Improve and maintain the quality of internet connection service
• Competitive: Providing wide service and cooperation with others will give differentiation

Key Internal Factors

• Management: Establish a good investor relation with those platform
• Marketing: New marketing strategy could be applied, multi-platform marketing
• Finance: Investment performance in other platform must be watched over
• Product: New or extension product line can be created
• Research and Development: R&D task could be given to the other platform
 Strategy 2

Maximize Box Office movies channel on TV cable for the higher package

Key External Factors

• Customer: Maximize service on specific product could gain more customer percentage. This
also create potential for loyal customer.
• Social: Company will be more easy to enter society
• Technological: No big development needed, low cost strategy in technology aspects
• Competitive: Higher package will be more attractive with alignment with market need

Key Internal Factors

• Management: Management should anticipate the risk of focusing on one channel category
• Marketing: Good pricing strategy is needed to maintain price attractiveness
• Finance: More channel will influence company cost planning
• Product: Focusing on one channel is easily imitated by competitor, right timing and right
channel to gain market is necessary
• Research and Development: maintain the package of box office movie in case there is some
issue or develop additional features.
 Strategy 3

Develop mobile app for streaming TV channel through IndiHome service and provide
pause and rewind features

Key External Factors

• Customer: Customer will have more option and intensify the use of our products
• Social: Innovative product is a common strategy in this time
• Technological: Mobile technology is increasing and the cost of it is more affordable
• Competitive: More option in the service will gain more competitive advantage

Key Internal Factors

• Management: New management team is needed to manage the new features
• Marketing: Diverse advertising media is needed to introduce the new feature
• Finance: This will generate more income but maybe costly in starting phase
• Product: More cost, need to have efficient and effective product.
• Research and Development: R&D is needed to develop the mobile app which have good
performances. Innovation needed to avoid imitation
 Strategy 4

Offering customer specific products and giving periodical discounts and use brand
image

Key External Factors

• Customer: New customer likely to enter. Customer loyal may be possible
• Social: Discount products attract attention in many society
• Technological: what action to do is according to the products customer need
• Competitive: Good brand image will be company competitive advantage

Key Internal Factors

• Management: The company culture could influence brand image
• Marketing: Good pricing strategy is important for discount. Develop more brand value also
customer demand research is necessary
• Finance: Pricing strategy must still considering financial goal of the company
• Product: Choose the best products
• Research and Development: Research the best indicate features of the discounted product
and maintain in case there is an issue.
Key Internal Factors (IFE)

Strengths Weight Rating Weighted Score

1 Have access to a lot of capital funds 0,15 4 0,6
2 Widest coverage area in Surabaya 0,1 4 0,4
3 Have the most number of customer relationship channel 0,05 3 0,15
4 Unbeatable internet stability 0,1 4 0,4
5 Pause and rewind features on TV cable 0,05 3 0,15
6 The only true triple play with telephony service and free calls
included 0,15 4 0,6
Weakness
1 Difficulties on premium positioning without any significant
differentiation 0,15 1 0,15
2 Centralized marketing strategy 0,02 2 0,04
3 Highest price compared to competitor 0,1 1 0,1
4 Higher package only provide higher internet speed and not giving
more TV channel 0,13 2 0,26

Total 1 2,85
Key External Factors (EFE)

Opportunities Weight Rating Weighted Score

1 Existing fiber-optic backbone in Surabaya can help minimize capital 0,15 4 0,6
cost needed
2 Online shop and Online game as the most frequent activity done 0,1 3 0,3
through the home internet
3 Box office movies as the most watched shows on TV Cable 0,1 2 0,2
4 Consumer needs of package for calling Cellular non Telkomsel 0,12 1 0,12
number
Threats
1 Survey showed that consumer in Triple Play Service industry is 0,15 2 0,3
price sensitive
2 4G mobile can beat Indihome internet speed easily 0,1 3 0,3
3 Conventional satellite TV can beat the number of TV channel with 0,15 1 0,15
far more lower price
4 Telkom’s triple play service bundling strategy contradicts with anti 0,13 4 0,52
monopoly law
Total 1 2,49
EFE / IFE Matrix

IFE Total Weighted Scores

Strong Average Weak
3.0 - 4.0 2.99 - 3.0 1.0 - 1.99
3.0 2.0 1.0
4.0

High
3.0 - 4.0 I II III
3.0

EFE Total
Medium
Weighted 2.0 - 2.99 IV V VI
Scores 2.85 , 2.49
2.0

Low
1.0 - 1.99 VII VIII IX
1.0

Possible Strategy for indihome in this quadrant:

Market Penetration (Strategy 2, 4)
Product Development (Strategy 1, 3)
QSPM

Invest on online shop Develop mobile app

Offering customer
and online games Maximize Box Office for streaming TV
specific products
platform Attract movies channel on TV channel through
and giving periodical
them with the high cable for the higher IndiHome service and
discounts and use
speed and stable package provide pause and
brand image
internet connection rewind features
Key External Factors Weight Rank Score Rank Score Rank Score Rank Score
1 Customer 0,1 3 0,3 4 0,4 4 0,4 3 0,3
2 Social 0,05 2 0,1 3 0,15 2 0,1 3 0,15

3 Technological 0,1 4 0,4 2 0,2 4 0,4 1 0,1

4 Competitive 0,2 4 0,8 3 0,6 3 0,6 4 0,8

Key Internal Factors

1 Management 0,05 2 0,1 2 0,1 3 0,15 2 0,1
2 Marketing 0,1 2 0,2 4 0,4 3 0,3 4 0,4
3 Finance 0,1 4 0,4 2 0,2 4 0,4 2 0,2
4 Product 0,15 3 0,45 4 0,6 4 0,6 3 0,45
Research and
5 0,15 2 0,3 1 0,15 4 0,6 1 0,15
Development
Total 1 3,05 2,8 3,55 2,65

Most significant strategy

Thank you