STRATEGIC MARKETING PLANNING (SMP)

Assignment Topic STRATEGIC MARKETING PLAN

Student Name W.H. Indika Nalindrasinghe
Reg. No. 0000029293

June 2019 Examination

Postgraduate Diploma in Marketing

Sri Lanka Institute of Marketing

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 ASSIGNMENT CHECKLIST & DECLARATION

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 Assignment Marking Scheme
June 2019

Subject Strategic Marketing Planning (SMP)

Student Registration Number 0000029293

Marks
Criteria
Allocated Awarded
Aligning to the purpose of the assignment 20
Some of the answer addresses to the purpose of the question 1-5
This has addressed the purpose of the assignment 6-10
Has addressed the purpose of the assignment coherently 11-15
This has addressed the purpose of assignment comprehensively 16-20
Clarity of expression 20
An attempt to organize in a logical manner 1-5
Satisfactory showing of logical manner and organization 6-10
Shows higher level of Carefully and logically organized 11-15
Shows coherent structure with clearly expressed ideas 16-20
Using examples/evidences 20
Shows a little use of examples 1-5
Some use of examples. Some evaluation attempted 6-10
Some use of examples. Well evaluated 11-15
Shows appropriate examples are fully and reliably evaluated 16-20
Critical analysis of concepts, theories, conclusions 20
Demonstrates limited evidence of critical analysis 1-5
Demonstrates some critical analysis of relevant theory 6-10
Demonstrates application of theory through critical analysis 11-15
Demonstrates application of critical analysis well integrated 16-20
Following assignment guidelines 20
Limited follow-up of assignment guidelines 1-5
Some level of follow-up of assignment guidelines 6-10
Good display of adherence to assignment guidelines 11-15
Excellent adherence to assignment guidelines 16-20

Total
100
Special Remarks

Signature of the Examiner

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 Postgraduate Diploma in
Marketing
Individual Assignment June 2019

Strategic Marketing Planning (SMP)

Examination /Assignment Registration 01st to 28th April 2019

Period

Examination / Assignment Registration 29th to 30th of April 2019

Grace Period

Assignment Submission Period 06th to 12th May 2019

Late Submission Period 27th to 31st May 2019

Assignment Acceptance time period Weekend and Weekday from 9.00am to 3.00pm

Presentation Date 22nd – 24th June 2019

Email address to send soft copy smp.pgd@slim.lk

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GUIDELINES

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 Refer student deliverables indicated below for specific details about assignment
submissions and presentations.

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STRATEGIC MARKETING PLAN

BACKGROUND

The strategic marketing plan (SMP) can be considered as the main tool of a marketer, in developing a
brand. The knowledge, attitude and skills you gather by formulating a SMP will be helpful in your
marketing careers.

YOUR TASK

Assume that you are representing a marketing consultancy firm. One of your clients (an entity
marketing a product/ service) has given you a consultancy assignment to develop a
comprehensive marketing plan, for a brand (product/a category of products), for the year
2019/20. You need to submit a written marketing plan, and make an oral presentation on the
same, to the board of directors of the client firm.

Important: In your presentation, you need to add 03 slides at the beginning, to describe the
terms;
I. SMP
II. Marketing Mix
III. The necessity for ‘Evaluation & Control’.

METHOD

 Select an entity where you can obtain internal and external data of its products, markets,
competitors, customers etc. It should preferably be a medium/ large scale one, with the
sales volume not less than Rs. 24 million per annum.
 Your arguments and forecast should be supported by relevant data/information and if
possible it should be included to the appendix. You are allowed to make rational
assumptions. (Please make sure to mention the assumptions, clearly)
 The provided SMP format has to be adhered. The page length of content stated therein
could change as per the merits of the case. However, you may not deviate more or less
than 15% of the given page length.
 The executive summary should be written after completing the SMP, and should describe
the whole SMP in a nutshell (A special practical session will be held during classes to coach
students on how to write an executive summary).
 Refrain from cutting and pasting information from websites or published reports. Analyze
them, and write in your own words. Make sure to reference your work according to the
Harvard referencing format. (A special session will be held during classes about the
Harvard citation style)

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TEACHING METHODOLOGY

 Lecture presentations: The theoretical knowledge and skills required in formulating a SMP
would be imparted through interactive classroom lecture presentations.
 Group exercise: Students are required to review and present their comments on
marketing plans that their peers had written in previous intakes. Active participation of
the students will develop their listening, analytical, presentation and discussion skills.
 Collaborative Learning: Students will be facilitated to draft their marketing plan in
collaboration with their peers within the class room setting. This will allow student to save
time and complete the marketing plan within the deadlines.

A SAMPLE FORMAT - THE STRATEGIC MARKETING PLAN

1. Executive Summary (Maximum 01 page)

2. Situational Analysis (Marketing Audit)

 The Company (Maximum 03 pages)

 Brief history, Current size, branches if any, the products and services that the company is
offering, growth and profitability, resources and corporate culture etc.
 The product/products selected to write the marketing plan and a brief description of them
on following elements :
 Revenue and revenue growth (last 05 years)
 Market share
 Distribution systems
 Pricing methods
 Promotional activities (in the last two years)
 Positioning and branding strategies etc.

 Customer Analysis (Maximum 02 pages)

 Description of the characteristics of target customers

 Factors influencing buyer behaviour
 Product/ service’s buying decision process

 Market Analysis (Maximum 01 page)

 Industry’s total sales, revenue and growth
 Market trend/s
 Opportunities and threats for the industry.

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  Competitor Analysis (Maximum 03 pages)


List of competitors

Possible new competitors, if any

Describe following details of the top two players in the market (OR the
two players who create the biggest impact on your brand).
 The products/ services offered
 Product life cycle and USP etc.
 Market share
 Distribution system/ pricing methods
 Positioning strategies/ branding and promotional activities (in the
last 02 years)
 Mind share and heart share
 Technological leadership (if relevant)
 PESTEEL Analysis (Maximum 03 pages)
 SWOT Analysis (One A4 page)

3. Sales Forecast and Sales Objectives (Maximum 1 page)

4. Marketing Objectives (Maximum 1 page)

5. Marketing Strategies (Maximum 15 pages)

 Segmenting, Targeting and Positioning

 Overall marketing growth Strategies
 Marketing Mix Strategies (7ps)

6. Marketing Operations and Budgeting (Maximum 03 pages)

 Action plans to achieve set goals

 Marketing Budget

7. Monitoring and Evaluation (Maximum 02 pages)

Illustration with graphics, plus a detailed explanation should be given. A maximum of 2 A4

pages can be used.

8. Appendix

(Relevant data, research questionnaire, rate cards or any other material that would
substantiate your arguments or information in the assignment)

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GENERAL FORMAT TO BE USED

1. The report should be written in the third person format (please do not use word “our” “my’ ‘we’ when
referring to the company)

2. All pages should be A4 sheets printed on one side

3. Font style: “Times New Roman”, should be “Text justified”

4. Font sizes: The text - 12 pt./ Main headings 14 pt. (Bold)/ Sub headings 12 pt.

5. Margins: Top and bottom 1 inch, on right 1 inch, on left 1.25 inch

6. Beginning of each para, 4 spaces indented

7. Line spacing: 1.5 lines

8. The report should be spiral bound

9. Language should be checked for spelling, grammar and contextual accuracy

(Please read the Program Handbook for general guidelines in writing assignments)

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 Content
1. Executive Summary.................................................................................................................. 1
1.1 Summary of Situation Analysis ........................................................................................ 1
1.2 Summary of Marketing Objectives .................................................................................. 1
1.3 Summary of Marketing Strategies .................................................................................... 2
2. Situational Analysis .................................................................................................................. 3
2.1 The Company ................................................................................................................... 3
2.2 SLT has following companies as its subsidiaries. ............................................................ 3
2.3 The Products and Services That the Company Is Offering .............................................. 4
2.3.1 Product Life Cycle.................................................................................................... 4
2.3.2 Sales.......................................................................................................................... 5
2.3.3 Revenue and revenue growth (last 05 years) ............................................................ 5
2.3.4 Current Market Share ............................................................................................... 6
2.3.5 Current Distribution Systems ................................................................................... 7
2.3.6 Service Fulfillment Index ....................................................................................... 10
2.3.7 Customer Churn...................................................................................................... 10
2.3.8 Promotional Activities in Last Two Years ............................................................. 10
2.3.9 Positioning & Branding Strategies ......................................................................... 12
2.4 Customer Analysis.......................................................................................................... 13
2.4.1 Description of the Characteristics of Target Customers ......................................... 13
2.4.2 Factors influencing buyer behavior ........................................................................ 13
2.4.3 Buying Decision Process ........................................................................................ 13
2.4.4 The buying decision process of SLT broadband can be mentioned as below, ....... 13
2.5 Market Analysis ............................................................................................................. 14
2.5.1 Total Sales, Revenue and Growth (Industry) ......................................................... 15
2.5.2 Market Trends ........................................................................................................ 15
2.5.3 Opportunities & Threats of Broadband Market ...................................................... 16
2.6 Competitor Analysis ....................................................................................................... 17
2.6.1 List of Primary Competitors ................................................................................... 17
2.6.2 List of Secondary Competitors ............................................................................... 17
2.6.3 Possible New Competitors ..................................................................................... 17
2.7 PESTEEL Analysis ........................................................................................................ 21
2.7.1 Political ................................................................................................................... 21
2.7.2 Economical ............................................................................................................. 21
2.7.3 Social ...................................................................................................................... 21
2.7.4 Technological ......................................................................................................... 22
2.7.5 Environmental ........................................................................................................ 22
2.7.6 Legal ....................................................................................................................... 22
2.8 SWOT Analysis .............................................................................................................. 23

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3. Sales forecast and Sales Objectives ........................................................................................ 24
3.1 Revenue Forecasting ...................................................................................................... 25
4. Marketing Objectives ............................................................................................................. 26
5. Marketing Strategies............................................................................................................... 26
5.1 Market Segments ............................................................................................................ 26
5.1.1 Geographic ............................................................................................................. 26
5.1.2 Demographic .......................................................................................................... 26
5.1.3 Psychographic......................................................................................................... 27
5.1.4 Behavioral............................................................................................................... 27
5.2 Characteristics of Target Customers............................................................................... 27
5.2.1 Target Marketing Strategies ................................................................................... 27
5.3 Positioning Strategies ..................................................................................................... 28
5.3.1 The Nature of the Product Range ........................................................................... 28
5.3.2 Product Quality and Performance........................................................................... 28
5.3.3 Pricing Level .......................................................................................................... 28
5.3.4 The Nature of the Distribution Channel ................................................................. 28
5.3.5 The Types of Promotions ....................................................................................... 29
5.3.6 Customer Experience and Word of Mouth ............................................................. 29
5.4 Overall Marketing Strategies .......................................................................................... 29
5.4.1 Growth Strategies ................................................................................................... 29
5.4.2 Marketing Mix Strategies (7ps) .............................................................................. 30
6. Marketing Operations & Budgeting ....................................................................................... 36
6.1 Action Plans To Achieve Marketing Mix Strategies ...................................................... 36
6.2 Setting Marketing Budget............................................................................................... 44
7. Monitoring and Evaluation ..................................................................................................... 47
8. Appendix ................................................................................................................................ 49
Penetration level ......................................................................................................................... 49
SLT Customer Base.................................................................................................................... 49
List of References ........................................................................................................................... 50

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Table
Table 1 - Sales Progress of broadband service in last five years ...................................................... 5
Table 2 - BB sales break down ......................................................................................................... 5
Table 3 - Revenue and revenue growth in last 05 years ................................................................... 5
Table 4 - SLT BB Pricing method .................................................................................................... 9
Table 5 - Service fulfillment index ................................................................................................. 10
Table 6 - Customer Churn .............................................................................................................. 10
Table 7 - Customer Analysis .......................................................................................................... 19
Table 8 - SWOT Analysis .............................................................................................................. 23
Table 9 - Sales Forecasting (Fiber & LTE) .................................................................................... 24
Table 10 - Revenue Forecasting (Waterfall method) ..................................................................... 25
Table 11 - Product Strategy ............................................................................................................ 31
Table 11 - Price Strategy ................................................................................................................ 31
Table 12 - Promotion Strategy ....................................................................................................... 32
Table 13 - Place (Distribution) Strategy ......................................................................................... 33
Table 15 - Action plan .................................................................................................................... 36
Table 16 - Marketing Budget ......................................................................................................... 44

Figure
Figure 1 - Subsidiaries of SLT ......................................................................................................... 3
Figure 2 - Product life cycle (PLC) .................................................................................................. 4
Figure 3 - Sales revenue in 2018 and 2019 ...................................................................................... 5
Figure 4 - Revenue Mix Broad band ................................................................................................ 6
Figure 5 - SLT fixed broadband market share .................................................................................. 6
Figure 6 - Broad band market share ................................................................................................. 6
Figure 7 - Market Presence............................................................................................................... 8
Figure 8 - 2018 BB promotion (Speedup) Source – http://insite.slt.com.lk ......................... 10
Figure 9 - 2017 Extra GB Promotion ............................................................................................. 11
Figure 10 - 2018 Speedup BB Promotion ...................................................................................... 11
Figure 11 - Buying Decision process model .................................................................................. 13
Figure 12 - Market share ................................................................................................................ 14
Figure 13 - Industry growth............................................................................................................ 15
Figure 14 - Industry trend ............................................................................................................... 16
Figure 15 - Dialog Data Packages .................................................................................................. 20
Figure 16 - Monitoring & Evaluation process ................................................................................ 47
Figure 17 - Customer base of SLT BB Source: Annual ABP 2017 ............................................ 49

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 1. Executive Summary
1.1 Summary of Situation Analysis
Sri Lanka Telecom PLC (SLT), pioneer telecommunication service provider in Sri
Lanka. SLT has upgraded the fixed line from copper (Mega Line) to fiber optic (Smart
line) two years ago to give the experience of ultimate speed in broadband service to Sri
Lankans. LTE also has been launched to expand the foot print of SLT as fixed wireless
broad band service in same period. SLT broadband customer base is nearly 975,500 and
sales volume is expected about Rs.460, 000 which generates Rs.9, 593 million revenue at
end of 2020, covering 21% of total SLT revenue.
The mobile phone industry in Sri Lanka goes for mergers and acquisitions with
growing competition eroding profitability. Sri Lanka’s Telecom industry has heavy
competition during the last couple of years and this remains the financial risk to telecom
operators in the country. SLT Broadband is expected increase the growth rates in future
to attract market share, as current household penetration of fixed BB is 12.1% since the
SLT market share in fixed BB market is 76%.
Dialog, Mobitel and Etisalat identified as the main competitors in BB market
since 79.8% of Mobile BB market is covering by these three services. Current SLT
service fulfillment index is recorded as 73%. Therefore SLT have to focus more on
service quality, distribution network and customer retention etc. to capitalized the market
share.
1.2 Summary of Marketing Objectives
By considering last 5yeras of BB sales, following objectives have been
recognized as marketing objectives in 2020.
 Increase the broadband market share up to 17.5% within the next marketing year
 Target 30% revenue growth in year 2020 from broadband products
 Increase broadband sales volume through fiber and LTE. (90,000 fiber
connections and 185,000 LTE connections) with in 2020 marketing year
 Reduce broadband customer churn to 13% in 2020.
 Increase broadband service fulfill index up to 79% next year
 Increasing Regional offices up to 45 in next marketing year.

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 1.3 Summary of Marketing Strategies

SLT is planned to capture niche market in remote areas such as north east areas
and other island wide remote areas. From this SLT can be targeted profitably by small
firms and residential customers who have relatively small overheads because SLT already
have island wide networks. SLT also planned Mass/undifferentiated marketing by selling
a broadband product to the whole market in metro region as well as island wide potential
customers through regional telecom office and teleshops. It can produce on a large scale,
benefiting from low unit production costs via economies of scale. SLT Differentiated
marketing is concerned with targeting each segment with a product with its own
marketing mix designed by various packages according to the customer needs within the
segment for that SLT broadband designed various kind of broadband packages according
to High volume/low volume and high upload/ high download speed customer segments.
SLT has high broadband sales volume in some areas like Colombo, Kandy,
Matara, Kalutara, and Negambo where the market penetration is exist. LTE is in product
development stage since the service has been introduced by SLT last year. SLT can carry
out i-Sri Lanka project to expand broad band customer base where the SLT broadband
service was not exist as marketing development.

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 2. Situational Analysis

2.1 The Company

Sri Lanka Telecom PLC (SLT) is Sri Lanka's national information and
communication technology (ICT) provider and one of the largest companies in the
country with annual turnover exceeds more than 50 billion. And having more than 160
years of history we are also the leading broadband and backbone infrastructure services
provider in the country. SLT has started its operations in 1858 with establishing the first
telegraphic Circuit between Galle and Colombo. In the same year it established its first
international Telegraph Communication between then called Ceylon, and India. We have
been delivering cutting edge and sophisticated solutions to our customers throughout the
decades of our services. We will continue to do so as we move onto the arena as a fully-
consolidated digital lifestyle services provider.

2.2 SLT has following companies as its subsidiaries.

Figure 1 - Subsidiaries of SLT

Source: Annual report 2018

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 2.3 The Products and Services That the Company Is Offering

SLT is the only fully integrated telecommunication service provider in Sri Lanka.
Its services range from provision of Domestic Wire Line Connections, Domestic Wireless
Connections, International Voice and Data Services, Internet Services, Broadband and
Internet Protocol (IP) Services to Mobile Services.

The SLT serves its customers under four main market segments mentioned below,
1. The household market
2. SME Customers
3. The corporate customer market
4. Government Sector

2.3.1 Product Life Cycle

SLT Broadband share is in fixed broadband market is 76% in Sri Lanka. And SLT
has increased its customer base by 32% and sold nearly 356,000 broadband connections
during last year mainly for customers who want to access high-speed internet services.
This marketing trend illustrates the growing trend of the broadband product and SLT
broadband demand is rapidly increasing. Therefore we can identify SLT broadband
product is located in Product life Cycle as a growing stage.

SLT Broadband

Introduction Growing Maturity Decline

Stage Stage Stage Stage
Figure 2 - Product life cycle (PLC)

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 2.3.2 Sales
Since SLT has introduced new technologies for Broadband through Fiber and LTE, 2019
Assume sales have been growth by 47.41 %.

Year 2015 2016 2017 2018 2019

Sales Volume 116483 119931 142956 175820 259173

Growth % 2.81% 2.96% 19.2% 23.9% 47.41%

Table 1 - Sales Progress of broadband service in last five years

Last two years, BB sales breakdown is as follows. In 2017, sales growth has been
increased due to Fiber and LTE services.
2018 2019
Megaline 113869 125000
Smart Line 6971 37821
LTE 47980 96352

Table 2 - BB sales break down

2.3.3 Revenue and revenue growth (last 05 years)

2014 2015 2016 2017 2018 2019
Sales Revenue Rs. Mn 3,689 4,123 5,552 6,232 7,037 9,263
Growth % - 11.76% 12.24% 12.20% 12.90% 31.60%

Table 3 - Revenue and revenue growth in last 05 years

9263
7037

2018 2019

Figure 3 - Sales revenue in 2018 and 2019

Source – Annual Business plan

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 2018 2019

Figure 4 - Revenue Mix Broad band

Source – Annual Business plan

2.3.4 Current Market Share

SLT Broadband share is in fixed broadband market is 76% and in mobile/fixed market is
12.1%.

Figure 5 - SLT fixed broadband market share

Source – Annual Business plan

Figure 6 - Broad band market share

Source: TRCSL, SLT estimates (Co-St Section)

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 2.3.5 Current Distribution Systems
SLT broadband information and services can be accessed from all the teleshops
and Regional offices established around the country. These offices were designed to
perform variety of services including payment of bills, registering for new connections,
selling of telephone accessories, etc. In order to provide convenient services to their
customers the SLT has established 40 teleshops, 35regional telecom offices (RTO), 24
maintenance centers and 8 contacts Centers all island. And some teleshops equipped with
experience centers which are located to get some broadband experience to customers.

SLT dealer channels also functioning in every urban and suburb areas in the
country to promote SLT broadband and other service to customers. These channels
mainly co-ordinate with regional offices and SLT has appointed 35 external channel
coordinators for every regional offices to get the maximum output from them.

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Figure 7 - Market Presence

Source - Annual Report 2018

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 Pricing Methods

One Speeds Monthly Usage

Monthly
Time Off
Rental Downl
charge Upload Peak Peak & Total
Rs. oad
Rs. Upload
Entrée 500 499 7 GB N/A 7 GB
up to
Web Lite 500 450 6 GB 9 GB 15 GB
Light User 512
Web Starter 500 740 Kbps 11 GB 17 GB 28 GB
Web Pal 500 990 18 GB 27 Gb 45 GB
Web Family
1000 1490 36 GB 54 GB 90 GB
Plus
Family
Web Family
1000 2690 60 GB 90 GB 150 GB
Xtra
Supper Web Pro 1000 4890 95 GB 140 GB 235 GB
Middle Web Master 1000 8990 up to up to 1 170 GB 255 GB 425 GB
Web Champ 1000 13690 21 Mbps 270 GB 405 GB 675 GB
Heavy 1000
Web Life 1000 19890 Mbps 400 GB 600 GB
GB
1000 1700
Web Inspire 1000 33000 700 GB
GB GB
Ultra Heavy
Web 1250 1750 3000
1000 58000
Premier GB GB GB
Higher
500 390 4 GB 6 GB 10 GB
Education 1 up to
Concessiona
Higher 512
ry 500 790 12 GB 16 GB 30 GB
Education 2 Kbps
Abhimana 1000 390 6 GB N/A 6 GB
Table 4 - SLT BB Pricing method

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 2.3.6 Service Fulfillment Index
Service fulfillment level is in not satisfaction level as 73% in 2018.

2017 2018
Broadband 69% 73%
Table 5 - Service fulfillment index

Source – Annual Business plan

2.3.7 Customer Churn

2014 2015 2016 2017 2018
Broadband 18.6% 19.2% 17.6 16.1% 14.8%
Table 6 - Customer Churn

Source – Annual Business plan 2018

2.3.8 Promotional Activities in Last Two Years

2018 BB promotions:

Figure 8 - 2018 BB promotion (Speedup) Source – http://insite.slt.com.lk

10
Figure 9 - 2017 Extra GB Promotion

Source – http://insite.slt.com.lk

2018 BB Promotions

Figure 10 - 2018 Speedup BB Promotion

Source – http://insite.slt.com.lk

11
 2.3.9 Positioning & Branding Strategies

SLT broadband have positioned through following basis

a) Product Characteristics and according to the Consumer Benefits

Ex. “ADSL heavy and ultra-heavy.”:-The ability to give high bb volume

b) “Price-Quality”
The price-quality issue is so important in some product category. SLT considered about
this and introduced high quality Broadband services with assured price. SLT cannot offer
very low broadband prices because all the pricings are controlled by TRCSL.

c) Use Approach
Associating the product with a specific use is another commonly used positioning
strategy. Sometimes, this type of positioning strategy may also be used to expand market
for a particular brand.

d) Product User basis

This is a strategy of associating the product with a particular type or class of user. One
way of doing this is through celebrity endorsements. For this SLT is hiring some popular
figures as brand ambassadors.

e) Culture Symbol
SLT have focused on protection of local heritage and also concern about Sri Lankan
cultural life style, they have made the broadband advertisements accordingly

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 2.4 Customer Analysis

2.4.1 Description of the Characteristics of Target Customers

Sri Lanka Telecom has brought about infrastructure developments including

laying fiber optic cables, copper network expansions, upgrading exchange capacities,
more switching capacities, copper line quality improvements and ISP bandwidth
upgrades. When considering all those aspects BB main target market is domestic
customers and business organizations. And also government servants and government
institutions, emerging youth segments will concerns as another special target market. SLT
is looking for those segments to attract for the BB services through supplying with
uninterrupted services and effective speeds.

2.4.2 Factors influencing buyer behavior


 Affordable price
 Ability buy the product with financial capacity
 Continuously fluctuating priority for the broadband
 Quality of the product

2.4.3 Buying Decision Process

Figure 11 - Buying Decision process model

Source: www.google.com

2.4.4 The buying decision process of SLT broadband can be mentioned as

below,

 Recognition of the Need or Requirement
In this scenario customer will recognize the need that he/she wants to buy a
broadband connection with considering a better speed and uninterrupted service.

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  Information Search
When a customer discovers a problem for the broadband connection, he/she will
likely to search for more information. Those can be search through online, or media or
any other known friends engaged with the industry and company websites or social
media.

 Evaluation of Alternatives
Customer will analyze the informations what he/she got with all the competitors
and compare them with all the brands and its values and services with his knowledge.
And resolve the issue with his/he satisfaction by choosing the best suitable brand.

 Purchase Decision
Purchase decision can be taken by the main consumer or knowledge person of the
family which is relevant to domestic customer. On the other hand if customer is an
organization or government sector, then there will be a decision maker with DMU to take
the decision of purchasing of the broad band service.

 Post Purchase Evaluation

After the purchasing the broadband product customer does the post evaluation of
the product by considering the quality of service, promised speed, customer services if
any issues arises, ability to deliver in time, and value for money.

2.5 Market Analysis

There is a huge potential in the market for Broadband connections as penetration
of the market still I very low.

Figure 12 - Market share

(Source: TRSCL statistics Dec 2014 & 2015 Q2 SLT Estimated

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 2.5.1 Total Sales, Revenue and Growth (Industry)
Sri Lanka Represents a saturated voice telephony market with nearly 131.6%
mobile penetration and 12.1% fixed line penetration. Broadband market is fast growing
with 20% penetration and still there is a huge potential exist for broadband.

Year Fixed(BB+NB) Mobile BB

1996 2,504
1997 10,195
1998 18,984
1999 25,535
2000 40,497
2001 61,532
2002 73,468
2003 85,500
2004 93,444
2005 115,000
2006 130,000
2007 202,348
2008 234,000
2009 249,756 91,359
2010 302,000 200,000
2011 359,000 485,000
2012 423,194 942,461
2013 507,845 1,664,003
2014 606,100 2,790,195
2015 682,512 3,408,408
2016 929,089 3,991,465
2017 1,221,960 4,682,300
2018 1,330,981 5,228,734

Figure 13 - Industry growth

Source: TRCSL
2.5.2 Market Trends

 Applications with Smart Devices are becoming pervasive, even within home.
Everyone in home may have separate smart devices to access internet nowadays.

This will influence the growth of internet usage in the country.

 Data traffic Keeps growing with the support of smart devices, social networks,
Content and online services. People are adapted to log in to some web sites

frequently like Face book, eBay, ikman.lk etc.

15
  Demand for wireless access in Public places is rising. Since the most of people have

smart devises like smart phones, tablets, iPod etc.so they needed a connectivity.

 Government pushes to install free Wi-Fi. Places like train stations, bus stands,
universities, shopping complexes, at the moment free Wi-Fi zones initiated in several

public places and more places will cover in due course.

 There is a demand for broadband connections foe CCTV surveillance cameras for
security measures and with the broadband connections it is enable to see the location

anywhere in the world

 Industry collaboration on facilitating innovation and improving competitiveness with


Global OTT providers.

Figure 14 - Industry trend

Source: Ericson mobility report 2015

2.5.3 Opportunities & Threats of Broadband Market

Opportunities

Fast expanding Indian cellular market.

Latest and low cost technology

Huge market to cover (still 20% penetration)

High dependability on ICT

New innovations through new technologies


Threats

Technology war / Technology obsolescence

Unfavorable regulations by TRC

Changes in currency exchange rates

Unstable economy


16
 2.6 Competitor Analysis

2.6.1 List of Primary Competitors

SLT was the first company to offer commercial broadband services in the country
and also the only provider of wired broadband access hence SLT had a monopoly in the
fixed line market and Island wide cable network connectivity through copper wire and
optical fiber till 2012. Dialog Axiata has started providing broadband services from end
of January 2013 through LTE technology and they have gain a market share in quick
time. And also they have laid the cable for fiber connectivity which is still in pending
approval. But SLT is still the market leader of Broadband market which is offering
through fiber, copper and LTE technologies. .

2.6.2 List of Secondary Competitors

There are some competitors apart from dialog in the market for SLT.They are also
providing mobile broadband and fixed wireless broadband but not considerable market
share as Dialog. And those broadband providers can be mentioned as below,


  Mobitel (Pvt) Ltd



  Etisalat Lanka (Private) Ltd



  Hutchison Telecommunication Lanka (Pvt) Ltd



 Bharti Airtel Lanka (Pvt) Ltd

2.6.3 Possible New Competitors

Due to heavy competition, price war and government regulations in telecommunication

industry unable to gain profits. Because of those new competitors are reluctant to attract

17
 Sri Lankan BB markets. However existing competitors can develop new
products and packages. Hence SLT BB implements strategies to get maximum
competitive advantage. SLT, Dialog, Mobitel and Etisalat are the main competitors in
BB market. They have given more focus on penetrating the mobile broadband
connection around the country.
Dialog Mobitel
Downloading and uploading link The company offering broadband
starting from 512 kbps, 128kbps services starting from 128 kbps to
to 1mbps, 256 kbps. These 100Mbps. Both prepaid & Postpaid
packages include futures of Email systems are available for customer
The products boxes, Mb web space, FUP and convenience. Commonly service is
and services dynamic IP depending on the type provisioning under static IP &
that the of package. Additionally include dynamic IP also can be obtaining
company is some services of Auto attend, according to the requirement. The
offering instant call group, ring tones and company is highly focusing to
hint group. expand the business with
integrating the latest technology to
give an optimum service due to the
massive competition.
Current 49.6% in broadband market 16.5% in broadband market
market share
One of Sri Lanka’s largest Mobitel broadband information
distribution networks operated and services can be accessed from
primarily by 10 exclusive all the branches ,outlets and all SLT
business partners. It comprises of teleshops established around the
over 42,000 retail outlets, 22 country. Mobitel has one of biggest
Current
company managed state-of-the- company managed distribution
distribution
art service centers and over 100 network around the country. Other
system
franchised customer service than that Mobitel made partnership
points. This unrivalled with Abans Pvt Ltd for distributing
distribution network has also mobile broadband for customers.
made Dialog ubiquitous in even
distant rural areas.

18
 Fixed line 4 broadband packages 3 main bb plane of postpaid
based on the monthly rental package, senehasa, upahara
starting from Rs 2500 to Rs 4000. package and prepaid package.
Pricing
Dialog offers mobile broadband Postpaid packages starting from Rs
methods
with two main categories which 240, with 1 GB data limitation.
are prepaid and post paid Prepaid connection starting from
Rs 20/= with 100 MB
Free 1GB data in 3months when Upahara for state sector the
Promotional purchasing 4G smart phone from opportunity to obtain a dongle free,
activities in last Abans./ sponsorship for the Sri along with 5GB data free as well in
two years Lanka cricket team the new year period/ Mobitel’s
Cash Bonanza Rewards
high rated but with a higher speed “less costly” but with “limited
Positioning
and unlimited broadband internet data”
strategies
connection
Mobile broadband is mainly 2 3 main broadband packages
plans. Prepaid plan includes sub namely, prepaid, postpaid and
packages of Internet cards, time senehasa upahara. Postpaid plan
based packages, daily rental include 4 sub packages Starting
Branding
packages and monthly rental with minimum speed 1mbps to
strategies
packages. Postpaid plan includes 3.65 mbps. Special package,
sub packages of ultimate data senehasa Upahara worth for Rs
packages, limited data packages 240. Prepaid package includes
and monthly rental packages other 4 data plans
fixed broadband service is based Mobile broadband is based on
on Wi-MAX technology and GSM /GPRS /EDGE
Technological
Dialog mobile broadband is used /UMTS/HSPA network utilizing
leadership
the technologies of WCDMA, 3.5G technology. For fixed
HSPA, EDGE and GPRS wireless used Wi-Max technology

Table 7 - Customer Analysis

19
Dialog Data Packages

Figure 15 - Dialog Data Packages

Source: WWW.Dialog.lk

20
 2.7 PESTEEL Analysis

2.7.1 Political

 The ministry has been created with the specific but the broad objective of creating the

Knowledge Hub which is the most innovative hub out of six hubs.

 Ensuring the efficient management of bottleneck facilities, including the frequency

spectrum, numbers, and rights-of-way encouraging and supporting research and
development in the industry, including participation by Sri Lankan universities and

private sector operators in regional and global R&D consortia and projects.

2.7.2 Economical

 Telecommunication and Information Technologies cover a vast array of fields and the
use of ICT for development is conceptualized by using many paradigms and
frameworks. The innovative use of ICT in public administration, agriculture,
education, health and trade will have a significant impact on the national economy
and development.

 Sri Lanka moving towards upper middle income category

 Increasing FDIs/foreign Remittance/Tourism

 Growth in SME


2.7.3 Social

 Changes in social trends can impact on the demand of the Internet it is a nice
medium to connect with the entire World. People use it as a medium to connect with
other people, sharing files, entertainment, information and lots of other activities that
are useful and beneficial in many terms.

 Increase in demand for online services

 Knowledge hungry people

 Increasing e-literacy

21
 2.7.4 Technological

 New technology and new inventions comes up with the new generation, with the
advancement of technology internet services are showing a rapid growth. The data
transfer speed should be increased as to the demand. GPRS, HSPA, EDGE, Wi-
Max, 4G are the technologies used in providing fixed line internet services.

 Smart devices & gadgets - Internet of Things


Technology move towards OTT


2.7.5 Environmental

 Ecological & Environmental factors do not have a significant impact on broadband

services. But under E-waste management, SLT promote E-Billing system to their
customers to reduce paper waste through broadband facility.

2.7.6 Legal

 In the 2013 Budget, the Government of Sri Lanka reduced the Telecommunications
Levy of 25% to 10%, for broadband is a relief for the customers and the operators as
it is affected to the growth of broadband connections in the country. And also
imposing VAT impacted negatively to customers.

 Concerns of information security & privacy

 Encouragement to share resources among Telco’s

 High tax structure

22
 2.8 SWOT Analysis

Strengths Weaknesses
 Multiple Access Technologies (ADSL,  Delays in FTTH and LTE rollout
LTE, FTTH, Wi-Fi)  Regulatory restrictions on Mobile
 Highest Quality and speed through bundled product
Fiber optic  Poor Quality of Copper cables in
 Reputed Brand Image certain locations
 License for last mile Wire line  Distance limitations due to less wire
connectivity line coverage
 Island wide branches and external  Low after sales services and
channels dealers Process inefficiencies
Opportunities Threats
 Tech savvy young generation and  The possibility of second fixed line
growing demand for BB and online operator with Fiber license
services  Growth of Mobile Broadband
 Government initiatives to promote Services
ICT  Social factors – Lack of knowledge
 Increasing popularity of Smart devices on advantages in Internet services and
and IOT(internet of things) traditional culture offer of
 Rapid technological advancements to  Lack of proactive involvement of
offer advanced ICT services the regulator for innovations VAS
 Lifestyle changes due to global  Lack of customer satisfaction &
exposure over the internet and smart trend of spreading through social
services media
 Huge government taxes

Table 8 - SWOT Analysis

23
 3. Sales forecast and Sales Objectives

Sales objective for the 2019 is to increase the broadband customer base through
LTE and FTTH as those are the newest technology in the market. And SLT need to
penetrate the said both technologies in the market. Expected sales through fiber and LTE
are 90,000 and 185,000 respectively. And the RTO wise sales forecasted as mentioned
below table for year 2020.

Table 9 - Sales Forecasting (Fiber & LTE)

Sales objectives for 2020 are established by assuming 2019 target has been fully
achieved.

 Increase the broadband market share up to 17.5% within the next marketing year
 Target 30% revenue growth in year 2020 from broadband products

24
  Increase broadband sales volume through fiber and LTE. (90,000 fiber

connections and 185,000 LTE connections) with in 2020 marketing year

 Reduce broadband customer churn to 13% in 2020.
 Increase broadband service fulfill index up to 79% next year
Since the SLT is service providing organization, most of the revenue is generated
by monthly rentals. Therefore waterfall revenue forecasting method can be applied to
SLT. 30% revenue growth is expected in 2020. Therefore the revenue Rs.12, 041.9 Mn
can be forecasted as below.

3.1 Revenue Forecasting

Sales revenue in 2019 (Rs) = 9,263 Mn
Expected revenue in 2020 (Rs.) = 12,041.9 Mn
Different (Rs.) = 2,778.9 Mn
Expected Customer churn = 13%
= 1,565.45
2,778.9 + 1,565.45 = 4,344.35 Mn
Sum of moths = n (n+1)
2
= 12(12+1)
2
= 78
Additional Revenue per month = 4,344.35/78
= Rs. 55.696Mn

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696 55.696
55.696 55.696 55.696 55.696
55.696 55.696 55.696
55.696 55.696
55.696
668.352 612.656 556.96 501.264 445.568 389.872 334.176 278.48 222.784 167.088 111.392 55.696

Table 10 - Revenue Forecasting (Waterfall method)

25
 4. Marketing Objectives
Also marketing objectives for 2020 are established by assuming 2019 target has been
fully achieved.
 Increase Broadband product awareness
 Increase customer service
 Increase Broad band coverage
 Increase Brand preferences
 Increase Customer retention
 Increasing Regional Offices to 45 in next marketing year

5. Marketing Strategies

5.1 Market Segments

There are a few market segments exist in SLT and it can be mentioned as below

5.1.1 Geographic
Market has been segmented in category wise and region wise as geographical
differences. Fiber, Mega and LTE coverage and target are based on these segmentations
in those areas. Ex - Category A, Category B, Category C
Region I, Region II, Region III

5.1.2 Demographic
Sri Lanka Telecom consider the ADSL Age gaps as,
Teen age : they are usually familiar with FB, YouTube, and Games etc.
Adults : Skype, Newspaper web sites
Below 50 : Movies, Music, sports web sites
Over 50 : health conscious and religious web sites
Range of packages has been introduced according to income, education, ethnicity,
Occupation, family size, age etc.
Ex- Student package : High studies students
Web family plus : For family use / middle income
Web family extra : Foe family use / High income

26
 5.1.3 Psychographic
SLT broadband Psychographics is the study of personality, values, attitudes,
interests, and lifestyles. Considering all Sri Lanka telecom products the target market has
built long term faith towards to the company with long term relationship with the
company and all fixed income customers need to have land line with Internet. Nowadays
most of the people are willing to have a fiber connection rather than copper connection.
They feel fiber is more prestige than copper connection.

5.1.4 Behavioral
SLT has considered the behavior variables of the customers to segment the
market. There are high BB usage customers and low usage customers in the market.
Some customers especially in hotel field, the usage is varying seasonally. Impact of
growing the smart phone industry, people prefers to have wireless BB to wired BB.

5.2 Characteristics of Target Customers

Sri Lanka Telecom has brought about infrastructure developments including

laying fiber optics and copper network expansion, upgrade exchange capacities, more
switching capacities, copper line quality improvements and ISP bandwidth upgrades.
When considering all aspects ADSL main target market is domestic customers and
business organization with government servants and government institutions with the
emerging rogation at the future segments will concern and looking for reasonable
effective and efficient speed, uninterrupted service. Through SLT Broadband, customers
receive access to multiple services of voice, broadband internet and TV/multimedia and
all other benefits through a single wire line connection.

5.2.1 Target Marketing Strategies

SLT is planned to capture Niche/concentration marketing in remote areas such as

north east areas and other island wide remote areas – this is concerned with targeting one
particular, well-defined group of customers (a niche) within the overall market.
SLT adopted this approach by targeting groups of customers interested in
broadband connections at a time when this group of consumers represented a relatively
small proportion of the overall market. From this SLT can be targeted profitably by small
firms and residential customers who have relatively small overheads because SLT already
have island wide networks

27
 SLT also planned Mass/undifferentiated marketing – this is concerned with selling
a broadband product to the whole market in metro region as well as island wide potential
customers through regional telecom office and teleshops. It can produce on a large scale,
benefiting from low unit production costs via economies of scale.
SLT Differentiated/selective marketing – this is concerned with targeting each
segment with a product with its own marketing mix designed by various packages
according to the customer needs within the segment for that SLT broadband designed
various kind of broadband packages according to High volume and low volume customer
segments .

5.3 Positioning Strategies

5.3.1 The Nature of the Product Range

SLT has introduced 15 different types of broad band packages according to
customers’ needs. In 2015 SLT launched fiber which gives ultimate speed of internet. To
achieve next year target SLT should share the customers mind and heart for above
product range.

5.3.2 Product Quality and Performance

SLT provide the broadband service via copper, LTE and fiber. So the quality
and performance is always very high.

5.3.3 Pricing Level

Customers have selection of broadband packages from Rs.390/- to Rs.58, 000/- .

So customers have freedom to select as his/her requirements. As a developing country
people are very concerning on price. This price level will help to capture customers mind
to accomplish marketing objectives Sri Lanka has the lowest price in broadband, and SLT
has the best prices among the other competitors.

5.3.4 The Nature of the Distribution Channel

By increasing distribution channels, customers will be able to access SLT outlets

easily. It will enhance customers’ faithfulness towards SLT. And they are now
establishing new franchise teleshops and strengthen the dealer channels aggressively for
the benefit of its customers.

28
 5.3.5 The Types of Promotions

Promotions are the best positioning strategy that SLT can use next year. Through
mass media, conducting events, giving promotional offers will help to position the brand
image on customers mind. Ex- Speedup foot cycle race.

5.3.6 Customer Experience and Word of Mouth

Good experience will always place a good position on customers. Conducting

training sessions, awareness programs to front line officers and call center officers will
help to serve better customer services. Customer experience and word of mouth is the
best tool for brand promotions which will stimulate others to get SLT broadband service.

5.4 Overall Marketing Strategies

5.4.1 Growth Strategies

a. Market penetration:
SLT has high broadband sales volume in some areas like Colombo, Kandy, Galle,
Kalutara, Negombo etc. Pricing can be used as marketing strategy to encourage current
customers to buy SLT broadband service.
b. Product development:

LTE in product development stage since the service has been introduced by SLT
three years ago. Customers can enjoy more benefits from LTE like get a SLT broadband
service without fixed line rental with same packages, access internet via same username
in anywhere etc.
c. Market development:

SLT has carried out i-Sri Lanka project to expand broadband customer base where the
SLT broadband service was not exist especially in rural areas. There are still new markets
mainly in north and east province where the fixed broadband service is not established yet.
d. Generic Competitive Strategies
Since the SLT is the market leader of fixed broadband service, it pursues a
strategy of differentiation and overall cost leadership in broadband packages.
Differentiation:

SLT offers a range of broadband products in different price, different volume and

different speed to select as customers’ choice.

29
 
Those products includes more features like adding extra GB, free email accounts,

web guard facility, issue public IP etc.


SLT adapts new technology always by being the first into new market
Ex- FTTH (Fiber to the home)

Since SLT is semi Government Company and it is a one of giant companies in Sri

Lanka, SLT is keeping stronger and more meaningful relationships.


Level of service and delight the customer is in considerable level.

e. Overall cost leadership:

SLT has capability of setting broadband packages’ price at lower level than its
competitors. Since SLT is offering high volume at low price it cause to build market
share. Overall cost leadership will help to resist all the five competitive forces and protect
SLT’s long term position.

5.4.2 Marketing Mix Strategies (7ps)

To achieve above objectives SLT has to follow the 7Ps which is another
marketing strategy as mentioned below. Those are,
1. Product 2. Price
3. Place 4. Promotion
5. People 6. Process
7. Physical evidence
a) Product Strategy

Increase Increase sales

Increase sales Increase service Reduce
broadband volume of fiber
revenue fulfil index customer churn
market share and LTE
Expand SLT BB Introduce new Expand fiber Maintain un- Increase down
footprint - add attractive services network in urban interruption line load speed up to
new 1,800 DP -mobile apps / areas (add 10,000 condition 20Mbps
specially in North SLT new fiber DP)
& Est provinces, entertainment
and where free portal
loops are not
available/ add

30
 150,000
broadband ports
Introduce bundle Stimulate Introduced ensure to Increase carrier-
packages to customers to buy backup solution maintain product grade Wi-fi.
business additional GB to business delivery time for (Cover the
customers. when the usage customers 24hours for strategic places
(wireless BB reach the (bundle wireless existing by SLT hot-spots
packages with limitation (via bb with fiber bb customer and to give customers
wired BB SMS, emails) connection as 3working days mobility)
connection) alternative path) for new
customers
Introduce new introduce e- Increase LTE attend faults
BB package with learning service base stations up reported by
high upload to 150,000 business
speed (ex-upload customer within
≤ 4Mbps 2hours and
download ≤ residential
1Mbps) customers within
2days
Table 11 - Product Strategy

b) Price Strategy

Increase broadband Increase sales Increase sales volume Reduce customer

market share
stimulate existing
non BB customers to
get minimum price
package- Rs.390/-
waive off the startup
fee of BB for Peo TV
customers
Table 12 - Price Strategy
revenue of fiber and LTE churn
Introduce special
Increase the sales of Motivate customer to
package rate for
Wi-Fi prepaid cards get a low package other
voice+BB+Peo
and extra GB by than disconnect the
customers starting from
giving bundle discount service.
Rs.3,000/-
Charge high price for give 50% off for
new package with second new fiber
high upload speed connection fee

31
 c) Promotion Strategy
Increase broadband
market share
Free router for the
customers use
competitor internet
connections over
3moths in April and
December seasonal
promotions
Implement vendor
support program by
allocation appropriate
budget to promote
BB
In mid of year
conduct win back
promotion for
disconnected
customer by giving
adjustment for
unused rentals in last
3months
Table 13 - Promotion Strategy
Increase sales Increase sales volume Reduce customer
revenue of fiber and LTE churn
motivate customers to Win back promotion in
purchase more extra give intensive for over 3rd quarter to connect
GB (ex. extra 5GB achieve FTTH and LTE TOS customers by
free for 10GB sales officers giving 3 months rental
purchasing) adjustment
raffle draw in April
and December give valuable gift items one month free service
seasonal promotions like self-stick, flash of mobile app/e-
by offering amazing drives, smart phones learning/web guard for
gifts for new bb over for fiber customers in non-used customers
1490/- (Air tickets, April and December over 3moths
Holiday packages)
conduct promotions
in schools to upgrade
Frist months rentals
bb package to 1490/-
free for new corporate
or above by giving
customers
free web guard
service in two months
32
 d) Place (Distribution) Strategy
Increase Increase sales
Increase sales Reduce Increasing
broadband volume of fiber
revenue customer churn teleshops
market share and LTE

facilitate to sell Establish new

Assign team in
CPEs, upgrade Appoint separate 2teleshops in
each RTO to
packages at Establish 10 fiber team at every Northern - East
convert CDMA
dealer point experience center teleshops to central and one
to Mega line
in teleshops handle teleshop in
with bb and
located in urban disconnection and Northern province
exciting
areas. win back the to expand the
customer to get
customer distribution
BB
channels.
collect
facilitate online outstanding and
assign more
facilitate online registration to appointed connect the
external channel
registration for existing separate external service of TOS
dealers to new
bb to existing customers for dealer only for customer by
teleshops in north
non BB VAS , extra GB fiber and LTE sending letters,
and east province to
customers and package sales visiting and
expand footprint
upgration discussing over
the phone

Table 14 - Place (Distribution) Strategy

e) People Strategy
 Consider the new connection target achievement of sales staff at performance

interview.
 Consider (KPI) key performance indicators at performance interview of OPMC

staff.
 Conduct training and build employees’ moral and loyalty towards increasing

company interest
 Special training for fiber technology, new features and handle fiber customers

 Special training for front line staff to handle annoyed customers
 Training to develop both technical competence and people skills

33
 f) Process Strategy
 Give smart devices to service fulfillment staff to check service orders and faults

inbox.
 Outsource new connection and faults to separate team and monitor the KOP

monthly

 Implement Queue Management System to serve customer to get maximum output
 Give priority in annual transfers for non-executive staff to go on transfer to the

regional offices for sales.
 Start project to develop operation support system to check new connection facility

availability (DP loops) using google map.

g) Physical evidence
 Give every sales officers (SLT and outsource) business cards and identity card to
get customers' attention
 Design dealer outlet as SLT office
 Update web page to get customers' attraction on fiber and LTE
 Improve the interior design of customer units and provide uniforms to front office
staff.


h) Public Relations

SLT has undertaken many PR activities in past. In 2020 SLT can implement
following activities to enhance Brand image and Advertise.
 TV advertisement for seasonal offers
 Radio advertisements about BB speed and volume
 Appoint suitable brand ambassador for BB
 Sponsorship for Katukurunda motor race.
 Conduct Knowledge sharing programs at National/International schools,
Universities and Vocational training centers.

34
 i) Direct Marketing

 SLT can use mails, emails, SMS, leaflets etc. as direct marketing tools.
 Send direct mails to existing voice only customers to promote BB. This can send
with monthly bill to reduce postal cost
 Arrange telemarketing activity to win back customers
 Send emails to existing customers to convert from Mega line to fiber
 Send mobile massage alerts about promotional activities
 Distributes leaflets via external dealers
 Use social media as Facebook to promote the product


35
 6. Marketing Operations & Budgeting

6.1 Action Plans To Achieve Marketing Mix Strategies

Table 15 - Action plan

36
37
38
39
40
41
42
43
 6.2 Setting Marketing Budget
Table 16 - Marketing Budget

Out Flow In Flow

Note Rs. Mn Rs. Mn

Marketing Expenses Forecasting Revenue 12,041.9

Stimulate customers to buy extra

GB when reach the limitation via
SMS, emails 1 0.5

Increase download BB speeds 1.0

Increase carrier-grade Wi-Fi 5.0

Waive off the startup fee of BB for
Peo TV customers 2 0.5
Free router for the customers who
uses competitor internets 3 15.0

Implement vendor support program 1.5

Win back promotions by giving
adjustments for unused last 3
months rentals for disconnected
customers 4 13.5
Motivate customers to purchase
more extra GB (ex. extra 5GB free
for 10GB purchasing) 1.0

Raffle draw for new bb over 1490/- 0.5

Conduct promotions in schools to
upgrade bb package to 1490/- or
above by giving free web guard
service in two months 5 0.3

44
Give incentives for over achieve
FTTH and LTE sales officers 0.5
Give valuable gift items like
selfie-
stick, flash drives, smart phones
for
new fiber customers 0.1
Frist months rentals free for new
corporate customers 6 3.0
Win back promotion to connect
TOS customers by giving 3
months
rental adjustments 7 7.5
One month free service of mobile
apps /e-learning/web guard for
non-
used customers over 3 months 0.1
Facilitate to sell CPEs, upgrade
packages at dealer points 0.1
Establish 10 fiber experience
center
in teleshops located in urban areas. 1.0
Collect outstanding and connect
the
service of TOS customer by
sending letters, visiting and
discussing over the phone 0.2
Give smart devices to service
fulfillment staff to check service
orders and faults inbox. 1.0
Design dealer outlet as SLT office 0.2
Improve the interior design of
customer touch points and arrange
staffs with uniforms. 0.5
TV ads for seasonal offers 0.2
Radio ads about BB speed and 0.2

45
volume
Appoint suitable brand
ambassador
for BB 2.0
Sponsorship for Katukurunda
motor race. 1.5
Conduct Knowledge sharing
sessions at National/ International
schools, Universities and
Vocational training centers. 1.0 57.9

Profit after marketing expenses 11,984.0

Total 12,041.9 12,041.9

Note 1
Average cost = Rs.1.00 Expected over usage Customers = 500,000
Note 2
Startup fee = Rs.500 Expected Peo TV customers=100,000
Note 3
Router cost = Rs.3, 000 Expected sales = 5,000
Note 4
Rental per month (maximum) = Rs.450 Expected customers = 10,000
Note 5
Rental per month = Rs.100 Expected customers = 1,500
Note 6
Rental to be adjusted (maximum) = Rs.1490 Expected customers = 2,000
Note 7
Rental per month (maximum) = Rs.500 Expected customers = 5,000

46
 7. Monitoring and Evaluation

1. Objectives
2. Strategies Set Evaluate
3. Activity standards Standards vs.
Schedule Actuals
4. Budget

Continue No
Difference

Take Yes
immediate
actions

Figure 16 - Monitoring & Evaluation process

Standards need to be set for the objectives, strategies, activity schedule and budget
that executed for year 2018. Then actuals need to be evaluated over standards
periodically. If there is a difference, an immediate action should be taken to correct it. If
there is no difference, the process can be continued.
The following could be done in order to monitor and evaluate the progress of the
marketing plan for SLT broadband:

Sales force efficiency

Sales promotion efficiency

Conducting monthly sales review meetings

Branch and outlet managers should communicate with top management in a timely
basis

Conducting customer researches

Conducting a market share analysis

47
If is there any gap between standards and actuals, immediate actions need to be taken


If any drop in sales, corrective measures should be taken. Ex – conduct spot
campaigns and telemarketing to increase sales.

Training the staff

Motivating the SLT customer service officers


48
 8. Appendix

GDP Growth rate

Indicator As at 31/12/2016

Population 20.675 mn

GDP per capita USD 3,625

Literacy rate 92.5%

ICT Literacy >40%

Number of Households 5.301 mn

Electrification Level 98%

Figure 17 – GDP Growth rate

Source: Annual ABP 2016

Penetration level

Penetration levels (per 100 inhabitants)

• Fixed lines – 12.1%
• Mobile – 131.6%
• Internet connections - 20%

Figure 18 – Penetration level

Source - TRC

SLT Customer Base

700000
600000
500000
400000
2017
300000
2018
200000
100000
0
FTTH LTE ADSL

Figure 17 - Customer base of SLT BB Source: Annual ABP 2017

49
 List of References
1. SLT.LK | Welcome to Sri Lanka Telecom. 2018. SLT.LK | Welcome to Sri Lanka
Telecom. [ONLINE] Available at: http://www.sltnet.lk/. [Accessed 21 May 2018].
2. Sri Lanaka Telecom. 2018. Sri Lanka Telecom PLC - Annual Report. [ONLINE]
Available at: http://www.slt.lk/en/about-us/investors/financial-reports/annual.
[Accessed 21 May 2018].
3. Dialog Home Page. 2018. Dialog Home Page. [ONLINE] Available at:
http://www.dialog.lk/. [Accessed 21 May 2018].
4. Etisalat Sri Lanka. 2018. Etisalat Sri Lanka. [ONLINE] Available at:
http://www.etisalat.lk. [Accessed 21 May 2018].
5. Mobitel. 2018. Mobitel. [ONLINE] Available at: http://www.mobitel.lk.
[Accessed 21 May 2018].
6. Home - Telecommunications Regulatory Commission of Sri Lanka. 2018. Home -
Telecommunications Regulatory Commission of Sri Lanka. [ONLINE] Available
at: http://www.trc.gov.lk/. [Accessed 21 May 2018].
7. Sri Lanaka Telecom. 2018. Annual Bussiness Plan. [ONLINE] Available at:
http://insite.slt.com.lk/sites/cco/cs/SitePages/Home.aspx?RootFolder=%2Fsites%
2Fcco%2Fcs%2FShared%20Documents%2FAnnual%20Business%20Plan%2FA
BP%202016%2FBoard%20Presentation%2FFinal%20Submission&FolderCTID=
0x01200041895DE3F68C1A4A905A17780C2635CF&View={48396D7F-A3E3-
4BC8-9481-F4D18BA1385B}. [Accessed 21 May 2018].
8. Gillian, C and Wilson R.M.S. ( 2009) Strategic Marketing Planning

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