1.0 EXECUTIVE SUMMARY 1988 witnessed the dynamic birth of celcom, a leading mobile phone telecommunications provider in Malaysia.

Since its inception, celcom has =steadily made its presence felt in the Malaysian market. It has, always continued to spread its wings and is undeterred by the dynamic nature of =he mobile communication industry. Our brand vision is about pleasing our customers and exceeding their expectation. It is our company's goal to empower the customers with =hoices and innovative solutions that will give them greater control and freedom to =ive it to the fullest. (Dato' Sri Jamaludin Ibrahim, C.E.O, celcom) Setting up a team of quality directors and staffs, has transited =elcom from first-generations to second-generation market leaders. For celcom, =ommunication is a serious business. This is why we have mainly products and service =eared toward maintaining business voices. This products and services includes =usiness prepaid plan, business supplementary plan, business post-paid plan and =usiness satellite. A major challenge facing celcom is how to increase profit and =maintain their competitive advantage in the Malaysian market. (Celcom =fficial Website, 2009) An evaluation of the company's internal strength and weakness and =xternal threats and opportunities served as the foundation for this strategic =arketing plan. The plan focuses on the company's growth, strategic analysis =uggesting ways in which it can build on existing customer relationship and =aunching of the new product and/ or services targeted to specific customer niche. =ur new marketing focus, made explicit in this plan, renews our vision and =trategic focus on adding value to our target market segments, the small business =nd highend home office users, in our local market. This is a sample planned market sale for the first three months of introduction to the market. 2.0 BUSINESS MISSION AND VISION

To delight our customers. To build a profitable enterprise that maximizes investors return. To empower, develop and reward our people, to become Malaysia's =referred employer. To build win-win relationship with all our business partners, =ased on mutual trust, respect and support To work to bridge the digital divide, to build our nation and to =nhance its standing abroad. To maintain the highest levels of transparency, integrity and professionalism.

Together with all our stakeholders, we will make Celcom Malaysia a =remium brand: a brand that symbolizes the spirit of freedom, aspiration, =onfidence, dynamism, timelessness, universality and globalism. (Celcom Official =ebsite, 2009) 2.0.1 SITUATIONAL ANALYSIS In business for twenty years, celcom was founded as a =elecommunications service provider and has evolved into high quality telecommunications =rovider across the Malaysian market.

Dato' Sri Jamaludin Ibrahim was appointed =s director/chairman of celcom (Malaysia) berhad on 25 April 2008. He is =urrently the president and group chief executive officer of Axiata group berhad =formerly known as Tm International Berhad). (Celcom Official Website, 2009) 2.1 MARKET SUMMARY 2.1.1 COMPETITIVE FORCE The competition in the specialty advertising industry is very strong =oth on local, regional and national level, making the Celcom the market leader =n Malaysia. Following the sales strategy developed by their local =ivals, celcom Malaysia has improved their competitive level, through developing =any telecommunications feature, providing quality services at considerable =rice. The competition in the telecommunication industry is very high with the =atest introduction of a new telecommunications service provider (U-mobile). =elcom has reduced the cost of sms from 50 cent to 25 cent and reduced the cost of =all from 35 cent to 20 cent per minute. Many other competitive measures are =xpected to enter the market soon as well. (Williams & Ferrell 1997, =.600) 2.1.2 BARRIERS TO ENTRY Basically in Malaysia, telecommunication service is not an =ligopolistic business. There is full freedom of entry once the company have meet up =ith the requirements and is ready to fulfil the government obligations. There =re many telecommunications service providers in Malaysia, ranging from local =ervice providers to international service providers. This makes the industry a =urely competitive market. Nevertheless, celcom has understood the need to make =customers satisfied and providing not just what they need today, but =hat they will need in the future. Through advancing technology, they have made it =difficult for small companies to enter the market, thereby, creating =arrier to entry for other small companies. (Williams & Ferrell 1997, =.600) 2.1.3 BUYING POWER (CUSTOMER) In today's society, consumers have less time for work and leisure. =he hallmark characteristics for today's product are convenience and =ase-of-use. In fact, if the product does not save time and is not easy to use, =ustomers will simply ignore it. Such is the same for Malaysian market. The customer's =deology of "quality service less price" is still the ruling key to =urchase. Understanding this is basics in every industry. Have been provided with =any choices, the consumers in Malaysia normally go for the best service that =ffers the least price. (Williams & Ferrell 1997, p.600) 2.1.4 PURCHASING POWER (SUPPLIER) Technology plays the most important role in this sector of the =alaysian market. Manufacturers understand the consequences of delayed supply, or insufficient supply when the demand and market price is high. This is =hy they make use of the best technology available to provide quality service to =heir customers. Many suppliers in Malaysia are more capital oriented than =ervice oriented. This means that they can only provide you with the best for =he highest cost that is a "more-for-more" marketing strategy.

This makes the purchasing power to be vested more on the hand of the =arket leaders, and this is another competitive advantage celcom has over its competitors in the Malaysian market. (Williams & Ferrell 1997, =.600) 2.1.5 POLITICAL FORCES There are no expected political influences or events that could =ffect the operation of celcom in Malaysia. This is because; celcom is a registered =ompany and functions under company provisions act of the Malaysian law. =Williams & Ferrell 1997, p.600) 2.1.6 TECHNOLOGICAL FORCES Celcom currently offers the best broadband network in Malaysia. =echnology is the fastest growing market trend nowadays. To maintain their position as =arket leader, celcom has enhanced their products technologically to keep the =alaysian telecommunications updated with ever technological advancement. =Williams & Ferrell 1997, p.600) 2.1.7 CURRENT MARKETING OBJECTIVES AND =ERFORMANCE Celcom sends personal sales representatives to market their products =n potential customers and create service concepts for their business or =hoice of order. Specifications are then sent to suppliers. This enhances more =ustomer loyalty and relationship with the company. Although some of the =ustomers do go on credit, of the annual sales are obtained from this form of marketing =ales and this is designed to reach their objectives of being the market =eader and providing quality services for the customer and profit to the company in =return. This is a potential advantage they have over their =ompetitors as well. Celcom's current marketing strategy to maintain customer-company =elationship with potential customer. 2.2 SWOT ANALYSIS 2.2.1 STRENGTH v Celcom maintains a product differentiation strategy resulting =rom a strong market orientation, commitment to high quality, and customization =f products and services. v There is little turnover among well-compensated employees who =re liked by customers. The relatively big size of the staff fosters =ommunication and quick response to client's needs. v A long-term relationship with the primary suppliers results =n shared knowledge of the product's requirements, adherence to quality standards, =nd a common vision throughout the development and production process. v The high percentage of sales, suggest a satisfied customer =ase as well as positive word of mouth, which generates new business per =ear. v Being the oldest telecommunications service provider in =alaysia, has given celcom a competitive edge and increased customer's trust and =oyalty to the brand.

2.2.2 WEAKNESS v Celcom's current facilities are crowded; there is little room =or new employers or equipments to fit into the company. v Celcom is reactive rather than assertive in its marketing =fforts because of its heavy reliance on customer's reaction for product satisfaction. v While the staff size improves growth and communication, it =lso impedes commitment on the side of the staff and lack of =pecialization. v Both the product line and the client base lack =iversification. Dependence on current recorder rates could bleed complacency, invite competition, or create false sense of customer satisfaction. Development =f a product that would provide better quality service by the competitors =ould probably put celcom out of business. v The non-seasonality of the products and services creates =ottleneck in productivity and cash flows, places excessive stress on the personnel =nd strains on the facility. v The poor niche market could be a competitive advantage for =heir competitors to gain an advantage over them, and this could lead to a =ramatic decrease in customer's loyalty. v High cost of products and service could alter the buying =ower of the consumers, especially in this time of global recession. 2.2.3 OPPORTUNITIES v Advertisement in Malaysia alone exceeds 200 million Malaysian =inggit annually. More than 20 million ringgit is spent on specialty =dvertisement which is the potential for celcom's growth. v Celcom is currently the Malaysian partner of Vodafone. v Celcom is currently doing nationwide promotion using power =cons like including international footballers Steven Garrard, Michael Owen, Ryan =igs and Robert Pires and Chinese entertainers JJ Lin and Wang Lee Hom as well as =ocal actress Maya Karim. v Celcom currently has the widest 3G and HSDPA coverage in =alaysia since its launch on 17th may, 2005. v Celcom provides many products and services that suites =ifferent customer needs, ranging from economic, business, and family and leisure satisfaction. v The director and manager of the company, Dato' Sri Jamaludin =brahim is currently working with the company for the seventh year, this is =ifferent when compared with other telecommunication service providing companies =nd with his full experience, he has helped guide celcom to a resting edge with =uality management.

v As more and more Malaysians look for ways to keep in touch =ith each other, celcom's popularity and quality services has helped draw more =ustomers to the company through customer relationship and brand loyalty. 2.2.4 THREATS v Reengineering, right-sizing and outsourcing trends in management may alter traditional channel relationship with brokers, dealers, and distributors or even lead to elimination of the channel. v Specialty advertisement through promotional items relies on gadgetry and ideas that are new and different. As a result, product life cycle may be quite short. v Completion from other telecommunications service providers is strong. v High cost of products and service would be a competitive advantage to their rivals over customers, through implementing low cost quality products and services. v There are no barriers of entry and this could be a great threat because it could make new fast productive companies to come into the market and try to gain a stand of their own. v Fast technological advancements would result in faster product life cycle, increase the need for improvement and might result in low sale of less quality products, or products with less technological features. 2.2.5 MATCHING STRENGTH TO OPPORTUNITIES & CONVERTING WEAKNESS AND THREATS v The acceptance of technological advances and the desire to control time creates a potential need for technologically rich products with varieties of features. v Celcom must modify its management hierarchy, empowering its employees through a more decentralized marketing organization. v Celcom should consider diversifying its product line to satisfy new market niche, as well as developing products that are seasonal to boost sale. v Celcom should consider surveying its current customers and its customers' client to better understand their needs and changing =reams. v Have gone into partnership with Vodafone, celcom should consider establishments in its neighbouring countries, especially the lower technologically advanced ones like Vietnam, Laos, Myanmar etc. 2.3 COMPETITION Competitors: the major competitors are Digi and Maxis respectively according to their level of threat. 2.3.1 OBJECTIVES AND STRATEGY OF DIGI

The main objectives of Digi are to become the main market leader in Malaysian market. This they have done by implementing many marketing strategies to persuade customers. This strategy includes the Digi family and friends, 8 cent per any local call, reward on reload according to the amount reloaded within a month and mass advertisement. 2.3.2 STRENGTHS OF DIGI The main strength of Digi is the market size they occupy through their extensive marketing strategy and promotions. This has made them one of the market leaders and their service are largely demanded across the Malaysian market. 2.3.3 WEAKNESS OF DIGI Their main weakness is limited coverage across Malaysia and the world. For example, sometimes when you send message to African continent with Digi, the message will not be delivered to the recipient. 2.3.4 SIZE AND TREND OF DIGI IN THE MARKET =HARES Digi currently holds the second largest trend in the Malaysian market shares. 2.3.5 OBJECTIVES AND STRATEGY OF MAXIS Maxis are one of the new entries into the telecommunication service providers market, and their main objective is to get as much customers as they would. This they have down through mass advertisement, sponsoring sports programmes, rewards to their customers and organizing shows for students and the public at large. 2.3.6 STRENGTH OF MAXIS Their sponsorships for sporting programming is drawing many customers =attention since Malaysia is a country vast in sporting activities 2.3.7 WEAKNESS OF MAXIS Their services are inconsistent, due to poor and limited coverage as =ell as products features. 2.3.8 CELCOM'S COMPETITIVE ADVANTAGE Being the oldest and most experienced amongst the three, celcom has =any competitive advantages against its major rivals Digi and Maxis. They currently posses the highest trend in the market share, giving the highest coverage, many products features and having the highest customer size in the Malaysian market. They are applying many future strategies to maintain their position as the market leader in the Malaysian market like niche marketing, business package development, intercontinental and international service expansion. 2.3.9 FUTURE COMPETITIVE MEASURES In other to maintain their current market position celcom has developed competitive measures to fight off their rivals both at the present and =n the future, this ranges from delighting their

customers with their numerous service features, developing greater customer relationship strategy, implementing more societal marketing schemes and supporting the government. (Celcom official Website, 2009) 2.4 PRODUCT OFFERING Celcom provides varieties of products and service to their customer, which is why they are presently the best in Malaysia. But we intent to launch a few product (U-verse), that lets customers, pay their bills through phone, took online flight tickets and hotel reservations. U-verse: this is a popular product offered by AT&T in the United States. The products allow customers to pay their bill. Following our counter parts, in developing a cutting edge technology, we enhanced the U-verse service into paying bills, booking flight tickets and making hotel reservation. A service designed for both travellers and the market in general. This would be the first of its kind in South East Asia, and it would go long to way to convince celcom customers about the company's commitments towards providing the best service to keep them delighted and in developing the country into a globally connected nation with the best telecommunications service. 2.5 DISTRIBUTION With over five thousand trade channels in Malaysia, the distribution of the service won't be difficult. The service (U-verse) is designed in a way that it can be automatically activated once a customer purchases a SIM CARD, by =licking *128#, then U-verse and following the instructions, or by going to any celcom dealer near him for activation. The distribution channel is designed in a way that it is so efficient for customers and increases potential sales for the company. Celcom dealers can be found in over 90 per cent of Shopping =alls, Colleges, Universities, Recreation Centres and Mega Stores across Malaysia, making it easy for the customers to reach. 3.0 MARKETING STRATEGY 3.1 OBJECTIVES Celcom I in the business of keep people connected to together and helping companies to market their goods and services as well as keeping them =lose to their customers. Besides formulating a market-orientated and customer-focused mission statement, celcom has established and objective to achieve cumulative growth in the next five years with a 50 per cent net profit for the newly launched U-verse. To accomplish these objectives, celcom has developed a benchmark for =rogress in three different categories. Firstly, through using a market =enetration pricing, the service will be brought to the customers at affordable and reasonable prices. Secondly, By gaining a better understanding of the =eed and satisfaction of the current customers, they will improve the service to encourage re-orders. Finally, the service is to be able to utilize it's =urrent technology and knowledge base, and research as well would be conduct on =imilar products with an eye towards developing the services to a speciality =dvertising product. (Williams & Ferrell 1997, p. 364) 3.2 TARGET MARKET

3.2.1 TARGET MARKET 1

large travel agencies or holiday planners

For example, travel agencies like wahtung sdn brh, can use the =ervice to provide 24/7 travel planning's to their numerous customers, thereby =ncreasing the companies ticket sales and profit. 3.2.2 Target Market 2

Niche market of business travellers

For example, business men and women who normally use online system =or their reservation will find it easy to make reservations and flight booking by =ust a simple press on the button, and that would be more convenient to =ravellers. 3.2.3 TARGET MARKET 3

Direct consumer market of hand phone user.

For example, this service can be utilized in our day to day life, =ike paying bills and checking account balance, making it easier for our families by =ust pressing a button instead of having to go to the company or bank to pay =ur bills. 3.3 POSITIONING Celcom has since its establishment, positioned itself as the number =ne Malaysian network in the Malaysia market. This they have done by =roviding efficient network connectivity and linking of individuals together. =oday celcom stands in the heart of every Malaysia as the telecommunication service =rovider that offers a "more for more" customer satisfaction, by providing the =ustomers with products to keep them satisfied above their competitors and =harging them more money for the quality they yield in the products. It has made our =ork so easy, that by launching this service as the first in south East Asia, it =ill go a long way towards convincing the present customers that celcom is truly =he number one Malaysian network, persuading the non-customers both in =alaysia, and the neighbouring countries where celcom is currently expanding to join =he leading network. Physiologically, celcom has influenced the status of =heir customers, because they are considered to be financial capable by using =elcom services. 3.4 STRATEGIES By understanding the customer's needs, celcom has used its strength =o fill the needs of the customers more than any other telecommunications =ervice provider in Malaysia presently. This has given them a competitive =dvantage, boosted enthusiastic sale and increased more customer loyalties. Through careful and in-dept research in the characteristics if the =alaysian market, celcom has created distinctive target markets for its products =hrough creating a strategic marketing mix that just not makes the product =vailable, but also affordable, convenient and unique at a

consistent and flexible =evel. This is geared towards improving new and existing products as well as =rofit to the company. 3.5 MARKETING MIX 3.5.1 PRODUCT Celcom has developed an intangible attributes to the new products, to =consistently meet or exceed customer's expectation, enhance speedy =esponse to customers demand and attribute anticipate new customer needs. This will =e achieved through investing in consumer research and product development. =Celcom Official Website, 2009) 3.5.2 PRICE With high availability of internets across the Malaysian globes, a =rice penetration strategy is advisable to enhance customers usage, and =ntroducing the service. On the other hand, they would use that opportunity to =ncrease price on improved products. Celcom should also be sensitive to the price =elasticity of its product and overall consumer demand. (Celcom, =009) 3.5.3 DISTRIBUTION Through gaining retailers cooperation and distribution channels =cross Malaysia, it would be easy for the service to reach the targe market. =he SIM PACK is light weight and would be easy to transport huge number of the =roduct with the service in it across Malaysian market. (Celcom Official =ebsite, 2009) 3.5.4 PROMOTION Through educating consumers on product improvement and creating =wareness to nonconsumers, advertisement and sales promotion would be used to =ntroduce the new service to the Malaysian market. (Celcom Official Website, 2009) 3.6 MARKET RESEARCH Extensive market research is to be implemented to regulate customer's =satisfaction, anticipate and understand customer's new need, and improve =he products to either make the customers delighted or satisfied. (Celcom =fficial Website, 2009) 4.0 FINANCIAL 4.1 CONTROL AND PERFORMANCES STANDARDS The following performance standards and financials are suggested.

The total budget for launching the new product, research, and =ustomers survey will be equal to 80 percent of the annual promotional budget =or the product introduction year. Each team is responsible for reporting all financial expenditures, = including personnel salaries and direct expenses, for their segment of =he project. A

standardized reporting form will be developed and provided =y the marketing director. The marketing director is responsible for adherence to the project =udget and will report overages to the company president on a weekly basis. =he marketing director also is responsible for any redirection of budget =ollars, as required for each project of the business analysis team. The new product offering would be evaluated on quarterly bases to determine its profitability. Product development expenses will be =istributed over a two year period, and will be compared with gross income =enerated during the same time period.

5.0 CONTROLS 5.1 IMPLEMENTATION Activities, responsibilities and time for completion: all =mplementation are designed to create customer awareness and boost sales and are to begin =long with the New Year on January 1 2010 v On January 1, create sales manager position along with =arketing and advertising director. The marketing director will serve as a project =eader for a new business analysis team, while the advertising director will take =ull charge of advertisement v By January 18, the business analysis team will review all recommendations from the project managers. v By January 20, develop a marketing information system to =onitor client reorder patterns and consumer satisfaction. The managers are responsible. v By February 2, develop a plan for one year product offering =long with potential customer. The business analysis team is responsible. v By February 5, finalize customer satisfaction for current customers. v By February 10, implement a new product offering =dvertisement and sample to potential customers. The business analysis team is =esponsible. v By February 15, analyse and report the result of all customer =satisfaction survey and evaluate new product offering. The market =irector is responsible. v Re-establish the objectives of the business analysis team for =he New Year. The directors are responsible. 5.2 MARKET ORGANIZATION Because the new product requires extensive commercialisation to match =customers need, it is necessary to organize the marketing function by =ustomer groups. This will give celcom the opportunity to focus its effort on the =eed and specifications of each target market. Celcom marketing efforts will =e organized around the following marketing groups: 1] manufacturing group, =] business-to-business group, 3] customer satisfaction group, and 4]

=ustomer relationship group. It group will be headed by a saes manger who will =eport to the marketing director. Each group will have full decision making authority and responsible for marketing the new product to the target =ustomers within the segment. These changes in marketing organization, enables celcom to be more =reative and flexible in meeting customers' need, reduce highly centralized =anagement hierarchy and finally, give better opportunities to monitor the =ctivities of competitors. REFERENCES Celcom's Official Website 2009, accessed on 10 July 2009, Joe, T, John, B & Keith, P, 2005, managing innovation: =ntegrating technological, market and organizational change, 3rd Ed, john Wiley, England. William, D & Jerome, M 1999, Basic marketing: a =lobal-management approach, McGrawhill, London. William, M & Ferrell, O 2005, marketing: concept and =trategies, 10th Ed, Houghton Mifflin, New York. www.ilokabennethchiemelie.com