Table of Contents

DETAIL PAGE

Acknowledgements 2

Introduction 3

Question 1 6

Question 2 8

Question 3 10

Question 4 17

Question 5 22

Reference 26

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ACKNOWLEDGMENTS

For first thank you to Asia e University would give the opportunity for me to further my
studies in Executive Masters in Management. I wishes to express appreciation to all person
that help me to preparing these assignment and give the information, support also to the
numerous persons from government and industry with whom the author has consulted in
preparation for article, books and web page. Many thanks to all my friends in class would
give me more knowledge, helping each others, some information and also thanks to our
management and tutor would help us to achieve the target to be the best student in this
subject. Hope the management will improve more programs like this to built the new
knowledge student and give more opportunity to them to improve in their further experience.

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INTRODUCTION

Celcom Axiata Berhad is the oldest mobile telecommunications company in Malaysia.

Celcom is one of a member of the Axiata group of companies. Being one of the very few
companies in Malaysia to originally obtain a cellular phone license, it successfully introduced
mobile telephony in Malaysia

Celcom started its operation as STM Cellular Communications in 1988 with Fleet Group and
Telekom Malaysia as shareholders. Subsequently Telekom Malaysia sold its 51%
shareholding to the TRI group, which was controlled by Tajuddin Ramli. Fleet Group's share
meanwhile was transferred to the Time Engineering group which was later sold to TRI. In the
initial years Celcom experienced a tremendous growth in subscriber base and network
coverage under the stewardship of Rosli Man, the President of the company. It was during his
tenure that Celcom turned into the leading cellular companies in Malaysia. He left Celcom in
1996.

When the cellular phone market was opened up in 1995, Celcom upgraded to the GSM900
service and quickly grew to become the largest mobile phone company in Malaysia.
Competition soon sets in, and several digital mobile Telco compete for market dominance. It
was the age of the phenomenal growth of mobile services.

Celcom introduced mobile telephony in Malaysia through its ART-900 (Automatic Radio
Telephone) service, using first generation (analogue) ETACS (Extended Total Access
Communication System) specifications of the United Kingdom, a derivative of the US-AMPS
(Advanced Mobile Phone System) technology. The ETACS ART-900 was started using the
prefix "010". Celcom now uses the dialing prefix identifier of "013" and "019" and offer
digital GSM (Group Special Mobile), an originally European standard, now largely a world
standard for mobile communications. The original frequency band for GSM is 900 MHz, and
was soon extended to 1800 MHz to cater for a much wider bandwidth requirements.

Through the Mobile Numbering Portability by the Malaysian Communications and

Multimedia Commission, CELCOM also provides Virtual Mobile Operator services. Celcom
also provides rural communications services using CDMA Technology and Satellite Phone.

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During the Asian financial crisis in 1997, Celcom's owner, Tan Sri Tajudin Ramli suffered a
debt crunch, and Danaharta, the national asset restructuring company, seized his shareholding
in Celcom. Failure to resolve his debts resulted in the controlling stake in Celcom being sold
to Telekom Malaysia, the government-owned incumbent fixed line operator in 2003.
Telekom Malaysia proceeded to merge Celcom with its own mobile-operator subsidiary
TMTouch through a reverse takeover of TMTouch.

Celcom is the Malaysian partner of the Vodafone mobile community. Celcom current CEO,
Dato’ Seri Mohammed Shazalli Ramly, has been with Celcom since 2005. His contract
expired in (2007) and has been renewed for another 3 more years.

On September 28, 2007, Telekom Malaysia announce a revamp of its mobile communication
units which includes Celcom. The revamp plan was to group Celcom under the TM
International, which houses other TM regional mobile units and emerge it as a separate
business entity. The restructuring exercise was completed by Q1 2008 and the new business
unit listed on the Kuala Lumpur Stock Exchange by Q2 2008.

TM International has been renamed as AXIATA as part of a telecom consortium in the south
east Asia. It's Stock Exchange code is AXIATA. Axiata is one of the largest Asian
telecommunication companies focused on high growth low penetration emerging markets.
Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka,
Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India
and Indonesia are amongst the fastest growing telecommunications markets in the world. The
Group, including its subsidiaries and associates, has over 120 million mobile subscribers in
Asia and serves the needs of Asia by providing affordable and innovative mobile services
covering over 1.5 billion people across 10 countries. The Group provides employment to over
25,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing
together the best throughout the region in connectivity, technology and people, uniting them
towards a single goal: "Advancing Asia".

 Axiata Group Berhad (formerly known as TM International)

 Incorporated on 12 June 1992

 Listed on the Main Board of Bursa Malaysia Securities Berhad

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 Principal activities - investment holding and provision of telecommunication and
consultancy services on an international scale; focusing in high growth low penetration
emerging markets

 Controlling interest in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with
significant strategic stakes in India and Singapore

 Over 120 million mobile subscribers in Asia (As of Dec 2009)

 Over 25,000 employees in 10 countries (As of Dec 2009)

 Revenue of RM13.5 billion (As of Dec 2009)

 Vision is to be a regional champion by 2015

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QUESTION 1

What do you think the major strength and the weakness of the “Celcom’s Blue Bear
advertising campaign. ( 10 marks)

Strength
Larger Asian telecommunication company, Celcom Axiata has controlling interest in
mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with
significant strategic stakes in India, Singapore and Iran. In addition, the Malaysian grown
holding company has states in non mobile telecommunication operations in Thailand and
Pakistan

Celcom is leading brand in the world of football Celcom is most valuable brand in
Malaysia and was named as the country’s No 1 Most Valuable Telco Brand. Customer loyalty
and brand equity

Celcom uses the world’s biggest football event to set the stage in positioning itself
against the rest, hence the campaign tagline of BLUE VS THE REST, signifying Celcom’s
intent to challenge the rest.

Celcom continued its march forward with a series of ads which compared Celcom
postpaid and prepaid packages to competitor’s products. Delight customers in every aspect
of services, Cheapest postpaid plan, This plan is most suitable for users who are only
allocated with
minimum budget for the monthly phone bill. Offers you the lowest postpaid plan in Malaysia
with commitment fee as low as RM20 per month.

Impactful advertisement campaign Celcom use the full 3D TV commercial entitled

‘Stadium of Fans’ was directed by well-known commercial film director Barney Chuah and
was brought to life by the skilful hands of animators of a production house in Hong Kong
called Many Many productions will generate revenue to the company attracting new ones by
offering and counter offering numerous sub product and rates fights to retain their existing
customer

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Weakness
Celcom was still very much a struggling entity. It was on the verge of decline in terms of
revenue and subscriber base. The company was bleeding profusely as it continued to lose
ground to its rivals and its profit margin continued to be eroded

Celcom lost market share to Maxis,Celcom was losing its subscribers ,The drop has been
attributed to lower revenues, higher marketing expenses and bad debt provisions.

Celcom Customer Service had long suffered negative associations and weak imageries. The
general perception amongst consumers was that of being unresponsive, uninterested, and not
helpful. Not surprising, these are mainly words from non-Celcom customers. Poor customer
service remains a perception rather than a fact.

Celcom also inherited some negative brand perceptions – bureaucratic, slow. The new
Celcom needed to shake off this negative image by redefining itself.

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QUESTION 2

Who do you think are Celcom’s customer? Justify your answer.(5 marks)

Prepaid : students, kids and age from 12-17

example : , if you join XPAX before 31 July 2010 and stay active (by uploading a
minimum RM30 amount), you’d get free 90 minutes worth of calls! Can download
Original games, music, wallpapers, comics and more.

Postpaid – saver customers, corporate customers, age 20 - above

example : 3G service, differentiate their products and services, upgrade and modernize
network, print ads, on-ground events, mobile and broadband devices, Celcom
Broadband, Celcom Blue, Celcom Sukses, Celcom Biz and Xpax, the package is
offering you the cheapest calling or SMS rates, online and social media contests, print
ads, with cute and cuddle Celcom Blue Bear

Broadband – students, teenagers, kids, corporate customers, age 20-above

example : Celcom Broadband gets the ball rolling by launching its exclusive limited
edition World of Football 2010 USB Modem Pack. It comes with a cute 1GB soccer
boot thumbdrive keychain and a mini football. Celcom give the special rate and reward
to their All new customers who subscribe to the monthly packages during the PIKOM
PC fair, happening nationwide from April 2 - May 9, stand a chance to win a lucky
draw featuring prizes like specially designed Perodua Myvi and two Modenas CT 100
Motorbikes, worth around RM60,000!

football lovers – special give, football games, money reward, footballs information.
example : fun football related activities and gear up with football online memorabilia
such as desktop wallpapers, ringtones and online games desktop applications. to deliver
live footballs coverage, online and social media contests, win RM10,000 every day
for 60 days when they SMS to Celcom to register.

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Question 3

Who do you think are Celcom’s competitor? Justify your answer.(5 marks)

The emergence of new technologies such as cloud computing and fixed mobile convergence
continues to transform Malaysia's telecommunication industry. This has increasingly required
service providers to differentiate their products and services in order to stay ahead of
competition service keeps market players informed of the latest industry developments and
competitive trends. It provides in-depth and forward-looking analysis on the evolution of the
different telecommunication services markets, examines end-user communication usage and
preferences and sizing of critical market segments, and explores developments that are
impacting the telecommunications industry. The lowest monthly commitment fee offered by a
telecommunication company doesn’t mean the package is offering you the cheapest calling or
SMS rates but it also best deal of monthly lowest commitment fee plan are budgeting for a
package, Celcom, as one of four 3G service providers currently operating in Malaysia (The
others being Maxis Communications, DiGi Telecommunications, U Mobile)( Note: XOX,
Tune Talk, are Virtual Operators.

Celcom with its Blue Bear has been focusing on mobile online world cup coverage with
downloadable contents. Among those seemingly minor offers, one particular activity called
‘Blue Bear Hunt’ caught quite a lot of attention from users. Subscribers will stand a chance to
win a BlackBerry Curve everyday for a total of 14 days by only finding ‘Blue Bear’ in Clues
page and text it to 33111. Users find the reward in cash to be appealing and thus Celcom
Broadband goes for the extra mile to present winning prize of RM10,000 and a World Cup
theme USB modem, whereas their prepaid Xpax team also did the similar prize of RM10,000
reloading user accounts with RM30 voucher code.

Maxis have been edging their way to compete with their nemesis telcos in every possible
approach from the official screening, to Hotlink prepaid goodies, to football matches
streaming, and packages for your mobile full coverage on this worldly fever. The goodies
from Hotlink will distribute 3D poster or 3D postcard for every purchase of the prepaid
voucher. The most captivating offer will have to be the video streaming of all matches
without extra charges required. If that is still not enough, Maxis also present subscribers with

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News, MMS updates, SMS Trivia and Gossip packages for mobile services.

Digi, as always has been very competitive in every telco war event in the country, particularly
with the variety of packages for their postpaid. This includes Match Reminder, Top 10
Countries, Caller Ringtone, and World Cup Goal Packages. Weekly SMS competition with a
prize of official football jersey will be given to the winner. The prepaid team comes out with
similar weekly prize goodies for topping vouchers.

Being a relatively new telcos of Malaysia and young blood to the family, U Mobile have been
making impressive offers to keep their league in line with other telcos with packages
including Football Trivia, SMS Alert, and MMS news for subscription.  The downloadable
areas contain a wide range of goodies such as animations, wallpapers, and Java games.

Teams qualified for the Finals in World cup will try to play hard to stay in the game, whereas
telcos of Malaysia will try to play tough and smart with their own whooping offers to stay in
the league.

Maxis Communications Bhd

Founded: established 1993, publicly listed 2002
Headquarters: Maxis Tower, Kuala Lumpur, Malaysia
Revenue : 6.37 billion MYR (2005)
Employees: 2200+
Parent: Usaha Tegas Sdn Bhd

Maxis Communications Berhad Owned by Ananda Krishnan, is a leading mobile phone

service provider in Malaysia. It was started in the year 1995. It uses the dialling prefix
identifier of "012" , "017" and “0142”. Their mobile services are provided over the 900 &
1800 MHz GSM band and as July 2005, the 2100 MHz UMTS band.

Maxis FastTap

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Maxis is also the pioneer of Malaysia's first NFC (Near Field Communication) service called
FastTap. It integrates Touch 'n Go and Visa Wave from Maybank. [6]

Maxis Berhad (‘Maxis’), the country’s leading integrated communications provider today
followed up on its earlier announcement of mobile broadcast sponsorship of the sporting
world’s most wanted event, the 2010 FIFA World CupT with a full kick-off of its services
and contents specially developed to keep over 12 million customers ahead of every move in
the game from 11 June till 11 July.

Maxis’ online customers will enjoy streaming of all 64 live matches through the Maxis World
Cup web portal athttp://www.maxis.com.my/FIFAworldcup.  Maxis’ mobile customers will
enjoy the same privilege on their 3G devices. In both cases, standard data charges will apply
but access to the coveted content is free.

Other services providing free content and up-to-the-moment updates include: SMS Alerts
giving end of day results and Video Highlights featuring forecast commentary and full time
game updates. To subscribe, send ON FREE to 22010 to obtain SMS Alerts and ON VID to
26000 for Video Highlights.

For only RM2 per week, football devotees can subscribe to comprehensive services contained
in the SMS Match packagefeaturing game previews, team line-ups, goal alerts and full time
outcomes. For RM5 a month, the SMS/ MMSNews package orSMS Trivia package will bring
customers news updates throughout the day, or curious football facts every day, respectively.

The full range of mobile World Cup services can be accessed by dialling *100# and selecting
‘FIFA World Cup’ or by sending GET WC to 22010. Maxis has also designed original 2010
FIFA World CupT applications for the iPhone, for BlackBerry and for Android devices - 
giving customers alerts with daily news, fixtures, results, country profiles, venue information,
and hall of fame and historical data. iPhone users may download Maxis’ World Cup apps
from the App Store.

Original games, music, wallpapers, comics and more

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This isn’t the World Cup as you’ve always known it, when you also get to combine your love
of mobile and online entertainment with your love of the sport.

Maxis is pleased to bring gamers and footballers, the official mobile game for the 2010 FIFA
World CupT. Send GET WC to 27100 to receive the EA SPORTS 2010 FIFA World Cup
South Africa game for only RM8, playing as your favourite country team amongst more
than 105 international teams.

To download the Official Music Package, send GET WAKA to 29000. For RM5, customers
will receive one full song, one caller ringtone, one true tune and one wallpaper.

Customers may also download official Zakumi Maskot wallpapers in both static and
animated versions at RM3 per download.

Maxis is also offering together with Stadiumastro.com, through the Maxis web portal, the
online game StadiumAstro Fantasy. Customers have the chance to be virtual team managers
and call all the shots! Points earned are based on actual players’ performance during the
World Cup 2010, adding an intense element of reality into the game’s fantastic potential.

Comics enthusiasts will be pleased to discover the Soccer Striker Comic. Send ON SS to

23268 to enjoy at normal MMS charges, the engaging exploits of two brothers enrolled in a
football league.

Still more value-added services and live atmosphere

During the season, customers will never miss an opportunity to get together with the local
football community for some ‘live match atmosphere’. Send GOL to 301 and
the FINDER301 service will send you a return SMS alerting customers to restaurants, pubs,
mamak spots and the like which are screening all 64 matches, and which are in their present
vicinity.

What’s more, GOL FINDER301 will host parties for World Cup fans all around the Klang
Valley, giving away HTC Android phones. Find out more by joining or following
FINDER301 on Facebook or Twitter, with full details at http://gol.finder301.com

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Maxis’ Malaysia ambassadors for the 2010 FIFA World CupT, football icons Dato’ Soh Chin
Aun, Santokh Singh, James Wong and Hassan Sani, have brought a legendary atmosphere to
on-ground events in May till the present start of season. Malaysians may still look forward to
more from them, in the World Cup Chat Lounge via Maxis Voice Portal, from 12 June till 11
July – where they’ll share their thoughts about the upcoming state of play. To participate,
customers need to dial 13232 to join the World Cup Chat Lounge. They may also join them
in a game or two at Karnival Jom Heboh Kuantan on 26 and 27 June.

Exclusive Maxis-World Cup collectibles

What’s World Cup without its souvenirs as well as memories? Until 31 July, customers may
pick up limited edition, football-themed top-up cards – the Hot Ticket at RM8 or RM15,
building in the guaranteed best deals on calls and SMS to all networks. Maybe best of all, the
Hot Ticket also comes together with free, 3D postcard and poster collectibles of the top 16
players.

DiGi Telecommunications
DiGi.Com Berhad
Founded: 1995, Publicly listed 1997, known as Mutiara Swisscom Bhd. The name of DiGi Swisscom
Bhd., the holding company of DiGi Telecommunications Sdn. Bhd., was changed to DiGi.Com Berhad. in
2000
Headquarters: Headquartered in Lot 10, Jalan Delima 1/1, Subang Hi-Tech Industrial Park Shah Alam
40000 Shah Alam, Malaysia
Revenue: 3.65 billion MYR 2006
Profit: 806 million MYR 2006
2.88 billion MYR 2005
Profit: 470 million MYR 2005
Employees: 1500

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Digi Telecommunications is a mobile service provider in Malaysia. It is owned in majority
by Telenor ASA of Norway with 49%. On 24 May 1995 DiGi became the first telco in
Malaysia to launch and operate a fully digital cellular network.

They were also the first to offer GPRS (2.5G) and later EDGE (2.75G) in Malaysia in 14
May 2004. DiGi primarily uses the GSM1800 band with the network code of 50216.

DiGi is listed on the Bursa Malaysia under the Infrastructure category.

It uses the native dialling prefix identifier of "010", "016", "0143", "0146" and "0149",
although with the implementation of Mobile number portability mandated by the Malaysian
government this does not apply to subscribers who switched from their old mobile service
provider over to DiGi. At the moment, switching to DiGi is free.

Digi and World cup

Digi also have the own promotion is call Like DiGi’s Bola! Bola! Bola! campaign there’s
really not much value in it for the customers. Its also give the new best promotion to other
consumers and also the loyal customers. Digi, as always has been very competitive in every
telco war event in the country, particularly with the variety of packages for their postpaid.
This includes Match Reminder, Top 10 Countries, Caller Ringtone, and World Cup Goal
Packages. Weekly SMS competition with a prize of official football jersey will be given to
the winner. The prepaid team comes out with similar weekly prize goodies for topping
vouchers.

Founded: 1998 (As MiTV Networks Sdn Bhd)

Headquarters: Berjaya Times Square, Kuala Lumpur, Malaysia
Key people: Tan Sri Vincent Tan

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Products: Mobile LiveTV™ (discontinued)
Mobile Data (Surf with U)
Mobile Telephony
Mobile Multimedia
Employees:700++

U Mobile Sdn Bhd is Malaysia’s newest 3G service provider and was founded in 1998 as
MiTV Networks Sdn Bhd. U Mobile is a wholly owned subsidiary of U Television Sdn Bhd
which was formerly known as U Telecom Media Holdings Sdn Bhd and MiTV Corporation
Sdn Bhd.

Utilizing the 018 prefix allocated to the organization by the Malaysian Communications and
Multimedia Commission (MCMC), U Mobile seeks to enrich the lives of consumers by
making communication, entertainment and information easily accessible through advance
technology via one convenient, ubiquitous platform.

In addition to offering mobile telephony and mobile data, U Mobile intends to be Malaysia’s
first ever true mobile TV service provider with its Mobile LiveTV service that utilises
[2]
internationally accepted Digital Video Broadcast – Handheld (DVB-H) technology . U
Mobile targets to commence its mobile service and Mobile LiveTV user trial before the end
of 2007.

U-mobile and World cup

The World Cup fever has begun and we can see loads of brands trying to leverage on the one
of the biggest events this year. Our local telcos are in it in a big way too with Maxis leading
the way becoming the official mobile broadcaster for the ultimate football event.

U Mobile – a telco that’s still looking to find a strong footing in the local market – has just
started a promotion campaign around the World Cup theme. Like DiGi’s Bola! Bola! Bola!
campaign there’s really not much value in it for the customers.

The U Mobile U Football Mania campaign is just offering some very generic subscription
based content on football trivia and news along with SMS alerts on the latest scores and

15
results from World Cup matches. There’s also some free mobile downloads if you’re
interested. Although, we had a look at it and it doesn’t look interesting to us.

We don’t get why telcos see SMS alerts and the like as a feasible business proposition when
more and more people are getting their updates for free from social media networks like
Twitter.

Very simillar to DiGi, U Mobile is also running a contest that offers free travel to anywhere
around the world. The difference here is that it’s not for football fixtures. Still, its something
we don’t see adding much value to the subscriber. Apart from Maxis – who will be the first
telco in the world to broadcast World Cup matches live to mobile phones – it’s funny how
telcos are paying big money to associate themselves to the World Cup but at the end of the
day really not giving anything of value to the consumer. We think that’s just a waste of
money.

What we would like to see is, for example, a competition where we get to choose a
country and if that country makes to the World Cup playoffs we’ll be rewarded with free
talk time or a free phone or something – for example. That would be more interesting
and fun, not to mention cheaper than paying for trips around the world

QUESTION 4

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What are the marketing segmentation and targeting strategies that Celcom adopted in
its Blue Bear advertising campaign? (10 marks)

Market segmentation is the division to develop detailed profiles of each segment, focusing
on any number of variables that may differ among the segments: demographic, psycho
graphic, geographic, behavioral, needs-benefit, and other factors may all be examined.
Marketers also attempt to track these segments' perceptions of the various products in the
market. The purpose of market segmentation is to leverage scarce resources; or to ensure that
the elements of marketing mix (price, distribution, products and promotion) are designed to
meet specific needs of different customer groups

Celcom’s excellent execution of segmented marketing strategy, a fully restructured sales and
distribution network, continuous improvement in network quality and customer service,
strong discipline in Performance Management culture as well as its continued focus on
improving mobile and broadband. Focusing on high quality in customer touch point
experience.

Corporate branding agency for Celcom, M & C Saatchi Malaysia has been tasked with
conceptualizing the framework of the new customer service and to develop the
communication campaign. First, the generic, can-be-duplicated customer service is to be
moved to a branded customer service platform that becomes the contact between Celcom and
the customers. Its segment-focused marketing strategy, particularly with the youth and Malay
segments. Celcom successfully repositioned the brand, rolling out impressive communication
campaigns since early last year, offered desirable products, the next crucial step is to
humanize the Celcom brand via its Customer Service. The Customer Service team will
substantiate the Celcom brand promise, the experience of being a powerful consumer.
Growth in prepaid net additions derived primarily from Youth segment whilst postpaid
customers continued to chart positive growth driven by the robust broadband acquisition.
providing choice to its subscribers by launching innovative products that encourage and
monetize usage.

When the world's biggest event to take centre stage once more. In addition, as every
imaginable brand out there seeks new means and ways to exploit the World Cup, Celcom has

17
once again made itself known as the leading brand in the world of football. The entire
campaign took place in two different phases.
Phase 1 – Celcom Vs The Rest
It all began with a flurry of ideas but the one that really stuck was the introduction of an
icon that would cut through the clutter and yet appeal to fans and non-fans across the board.
The full 3D TV commercial entitled ‘Stadium of Fans’ was directed by well-known
commercial film director Barney Chuah and was brought to life by the skilful hands of
animators of a production house in Hong Kong called Many Many productions. This epic
3D masterpiece was launched on the 16th of April 2010 to huge applause in homes all over.
It showed for the first time ever, a massive stadium filled with cute and cuddle Celcom
Blue Bears as they celebrate the most beautiful game in the world. The bears were spotted
supporting their World Cup teams in their respective home jerseys which included Brazil,
Germany, France, England, Spain, Portugal, Argentina and Italy.

Celcom Introduce more innovative campaigns to the market with a segment. Improvements
in distribution, customer service and network quality to drive further growth, supported by
nationwide strategies, product simplicity and innovation ation-based approach the like of the
Celcom Sale campaign held last quarter. Celcom uses the world’s biggest football event to
set the stage in positioning itself against the rest, hence the campaign tagline of BLUE VS
THE REST, signifying Celcom’s intent to challenge the rest. continued its march forward
with a series of ads which compared Celcom postpaid and prepaid packages to competitor’s
products.

Phase 2 – Celcom Blue Bear Collection

On May 17, customers are presented with the chance to own their very own Celcom Blue
Bear, an actual plush toy bear which is given away free when they purchase / sign up with
any of the participating Celcom products which include Celcom Exec, Celcom Broadband,
18
Celcom Blue, Celcom Sukses, Celcom Biz and Xpax. Not only are customers rewarded
with a cuddle and loveable free bear plush toy but they will also stand a chance to win
RM10,000 every day for 60 days when they SMS to Celcom to register.

A series of 8 collectible Celcom Blue Bear toys wearing football jerseys are up for grabs
from mid May till the end of the World Cup tournament, as each new bear is released every
week for 8 weeks. These bears are aptly named after the country they are rooting for which
include Bearzil (Brazil), Bearmany (Germany), France (BearyFrance), Englbear (England),
BearItalia (Italy), Bearespanyol (Spain), Beartugal (Portugal) and Beargentina (Argentina).

Celcom is also looking into enhancing customer experience, by rolling out Celcom Blue
Cube over the next two years, progressively replacing all existing retail touch points and
where viable, move into new subscriber-centric geographies. The year 2010 marks the start
of their transformation period towards being a Company with high performing culture.
Celcom focusing on various areas and benchmark against the industry locally and
internationally. Campaign that aims to ignite the football fever amongst Celcom’s customers
and the general public. Continue to strengthen segment-oriented strategies while being
focused on driving a culture that always looks at placing customers.

Targeting strategies used to define demographic and psychographic market

segmentation. Demographic segmentation consists of gender, age, income, family size,
family life cycle, occupation, and education. The target market in this article consists of
females, age 18-20; single, with no more education than high school. This matches
most of the criteria for demographic segmentation. Psychographic segmentation
consists of identifying certain lifestyles based on the consumer’s values, activities,
interests, opinions, and demographics. This article conveys that these women are
Strivers, which means they are unsure of self and need approval from others. This
group also seems to be search of some type of relief from their current lives (relief

19
seekers). All of this data provides an idea of this group’s value as well its activities and
interests.

Loyal customers – women, men, postpaid members and prepaid members

attractions:More reward, special rate, discount, extreme price, birthday reward,
Example : lowest monthly commitment fee, the package is offering you the cheapest
calling or SMS rates, best deal of monthly lowest commitment fee plan, remain the best
rate and value, customers are presented with the chance to own their very own
Celcom Blue Bear, an actual plush toy bear which is given away free when they
purchase / sign up with any of the participating Celcom products which include
Celcom Exec, Celcom Broadband, Celcom Blue, Celcom Sukses, Celcom Biz and
Xpax, Customers also rewarded with a cuddle and loveable free bear plush toy but
they will also stand a chance to win RM10,000 every day for 60 days when they SMS
to Celcom to register.

Teenagers –boy, girls, age 15-20, single, with no more education,attraction :Toys,
Wallpapers, games, Example : A series of 8 collectible Celcom Blue Bear toys
wearing football jerseys, fun football related activities and gear up with football online
memorabilia such as desktop wallpapers, ringtones and online games desktop
applications. each new bear is released every week for 8 weeks. These bears are aptly
named after the country they are rooting for which include Bearzil (Brazil), Bearmany

20
(Germany), France (BearyFrance), Englbear (England), BearItalia (Italy),
Bearespanyol (Spain), Beartugal (Portugal) and Beargentina (Argentina),

football lovers – men, girls, boys, teenagers age 18-35 attractions :special gift,
football games, money reward, footballs information. Example : to deliver live
footballs coverage, online and social media contests, win RM10,000 every day for 60
days when they SMS to Celcom to register. The event will see 32 futsal teams battling
it out for the grand prize of RM30,000, while teams placed second, third and fourth will
get RM16,000, RM8,000 and RM4,000 respectively.

New customers – students, college, university, corperate customers, attraction: new

plan, special rate, best reward Examples: All new customers who subscribe to the
monthly packages during the PIKOM PC fair, happening nationwide from April 2 -
May 9, stand a chance to win a lucky draw featuring prizes like specially designed
Perodua Myvi and two Modenas CT 100 Motorbikes, worth around RM60,000!

21
Question 5

Discuss Celcom’s positioning strategy for each of their Blue Bear advertising campaign
mentioned in the article above (10 marks)

Positioning was an emerging concept and a term, in at least limited use, within the marketing
and advertising community at the time that Trout and Rise first wrote
Positioning strategy is look at brand position, product awareness, customer base, the various
stakeholders, market share, sales and profits.

Celcom must identify the desired positioning should they want the company, product, or
brand to occupy in the target customer's mind. This positioning is often an encapsulation of a
key benefit the company's product or service offers that is differentiated and superior to the
benefits offered by competitive products.The positioning should also be sufficiently relevant
to the target segment such that it will drive the purchasing behavior of target customers.

Here are Five fundamental product positioning principles that will help you destroy the
competition:

Find a product attribute that captures the customer’s imagination. It’s so easy to get
trapped in the same old box of features and benefits. If you can’t differentiate that way, look
at the problem with fresh eyes and fresh data. Find a new attribute that can get customers
excited and focus your positioning around it.

Corporate branding agency for Celcom, M & C Saatchi Malaysia has been tasked with
conceptualizing the framework of the new customer service and to develop the
communication campaign. Celcom continued its march forward with a series of ads which
compared Celcom postpaid and prepaid packages to competitor’s products. Celcom use the
corporate color “blue” as their identity to occupy in the target customer's mind images of the
launch campaign were plastered all over town with ambient mediums such as building
wraps, 3D free standing structures on public roads and plasma TV wraps in restaurants and
coffee shops ensured that every corner is turned into a Celcom ‘stadium’. Life-sized
Celcom Blue Bear Mascots were also seen in shopping complexes in key market centres

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like Kuala Lumpur, Johor Bahru and Penang as performed flash mob dances, which got
other shoppers dancing along and squealing in delight. These features put a physical body to
the soul. There is an identity instead of a generic, undifferentiated customer service that
drowns both the service team and the customers in the sea of sameness.

Market share gains are expensive. There’s simply no way around this. Market share comes
at a heavy cost and your product planning and positioning must reflect that or your P&L will
suffer and you’ll end up back at the drawing board. The cost is a function of how entrenched
the leaders are and the perceived “switching cost” for customers. Celcom Customer Service
is charged with the mission to keep customers powerful. All about the Celcom Customer
Service must be stem from this proposition. The programmed not only covers the hygiene
intangible features like attitude, tone of voice, product knowledge, assistance beyond call of
duty. it is complemented by visible external changes in the look of the store, the uniform, and
the comprehensive range of sales support material. Market leader company needs to be
innovative, agile, revolutionary, obsessive and supportive. Since merging with the
corporatized Telekom Malaysia (TM) in 2003, Celcom inherited a huge tangible asset - its
extensive network, ability to reaching its wide customer base, increased touch points and
intangible assets – being part of a gigantic corporation, stability and ‘government-backed.

They expanding its coverage and capacity and substantially increase its investment in
network infrastructure to meet consumers’ demand. Adding that these efforts are in line with
Celcom’s utmost priority to cater to the customers’ different wants and needs. Celcom
pleasing customers and exceeding their expectations alsogive more choices and innovative
solutions. Celcom often dominates all his competitors in areas such as: customer loyalty,
distribution coverage, image, perceived value, price, profit, and promotional spending.
Celcom highlight new best rates and promotion in their service,they use project tagline “Let
the world battle begin”, Blue bear wearing favorite football team jersey representing eight
different countries. Reward the loyal customers with money reward such as RM10,000
thousand to give away daily, this programmed is one such effort to “BLUE VS THE REST”

Reinvent the “customer experience.” Nothing matters more, and it’s not just for Internet and
B2B. Just as with product attributes, you can shake up the competitive landscape by
rethinking the customer experience in new terms. What’s important to customers changes as

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a function of time and market conditions. Celcom continue the aggressive marketing strategy
and introduce more innovative campaigns to the market with a segmentation-based approach
revenue on advertising and promotional activities. Celcom spending measures, aggressive
campaigns, expansion and product offerings, exciting programs, unbeatable offers,
exceptional rewards and bonuses awaiting their customers and the general public. . Celcom
is also looking into enhancing customer experience, by rolling out Celcom Blue Cube over
the next two years, progressively replacing all existing retail touch points and where viable,
move into new subscriber-centric geographies. The year 2010 marks the start of their
transformation period towards being a Company with high performing culture.

Only target up, not down the totem pole. Publicly and to customers, always position your
product relative to the market leader. It elevates your product in terms of customer
perception. That said, train your sales force (and other internal groups) on features - benefits
versus all competitors. That’s a whole different story. Continue to strengthen segment-
oriented strategies while being focused on driving a culture that always looks at placing
customers. Celcom focusing on various areas and benchmark against the industry locally
and internationally. Campaign that aims to ignite the football fever amongst Celcom’s
customers and the general public. The Celcom Sale offers amazing discounts on all Celcom
products and services, as an initiative to reward customers for their loyalty and continuous
support. The products and services on discount vary in models and prices, depending on the
customer’s choice. Celcom is always looking at different ways to give back to their valued
customers and to see such joy on the faces of the lucky winners is simply the greatest,
Especially during this festive season.

Infrastructure (or ecosystem) as a competitive barrier. This is an important and often

ignored aspect of product planning and positioning. Many products and services, especially
in technology, require related companies and industries to support them in some way. If you
get enough support for your product, it can be an extraordinarily effective competitive barrier
that you can use in positioning.Market leader objectives are to continue expanding their total
market by finding more new consumers to purchase their product, creating new uses for the
current product which they are selling, and to encourage more usage among the current
consumers. Celcom give more choices and innovative solutions with new subscribers to
services including Celcom Exec,Celcom Broadband and Celcom Blue.To be market leader

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should always be equipped with a defense strategy that will help defend against any new
threats that might threaten their position as a market leader. Also, another objective to
achieve is to keep increase their market share of their product.Now we have yet to see any
major campaign from the competitor, Maxis whom are also the official broadcast sponsor
for the World Cup. It looks like Celcom has already won the battle before it has even
begun.

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