Progress Report – Fibernet Malaysia Sdn Bhd
Fibernet Malaysia is a brand new player in the already-packed and competitive broadband industry in Malaysia. We are a wireless Internet Service Provider employing the next generation of WiMax technology covering strategic and profitable market segments and geographical areas around the Klang Valley. In the future, we plan to expand to densely populated areas in major towns such as Ipoh, Penang and Johor. Our aim is to provide first class services while maintaining profitability. To achieve this, we need to provide Business broadband on top of serving the higher end consumers who require fast and stable broadband. This company is fictitious but this report can also serve as a Business Proposal.
Introduction
Fibernet Malaysia offers one single product; that is broadband internet services.
Many other competitors and big players like Telekom Malaysia and Maxis has a wide portfolio of product offerings for different markets. By simplifying our product line-up, we can concentrate on providing what consumer and business customers need the most; fast and reliable internet access.
For businesses, we offer unlimited internet access with no restrictions. The only thing companies have to decide is how much they want to spend and what the speed requirements are.
For home users, we offer flexibility in choice of plans. You can go for “Speed” or “Volume” or “both”. To explain further, refer to the table below.
|
Package
|
Speed
|
Cap
|
Price (RM)
|
|
A
|
2 mbit
|
20GB
|
79
|
|
B
|
2 mbit
|
100 GB
|
139
|
|
C
|
5 mbit
|
20 GB
|
99
|
|
D
|
5 mbit
|
100 GB
|
159
|
Options
For 2 mbit, additional 10 GB block of data allowance: RM 10
For 5 mbit, additional 10 GB block of data allowance: RM 12
What happens when you “exceed” the quota allowed?
The bandwidth will be throttled. This means the connection will slow down to 10% full speed until the next quota cycle. You will still be able to surf the internet and do almost everything. It will be slightly slower, but tolerable.
Managing the Campaign
We intend to hire an external team to handle the advertising and promotional campaign. Being a new company and having little experience of this nature, it is best to look for professional help from people who have done it before.
Target audience and Reason for Advertising
Our general goal is to raise awareness of the availability of such a service. Being a new player, it is important that word spreads out to as many people as possible about the existence of our company. The course of action will be described in the final report.
The campaign will last 2 months (8 weeks)
|
Time
|
Kind
|
Media
|
|
Week 1
|
Teaser Ad
|
Newspaper, Website
|
|
Week 2
|
Informational Ads
|
Newspaper, Magazines
|
|
Week 3-8
|
Free Trials
|
[Sales promotion]
|
|
Booths in Malls
|
[Sales promotion]
|
The campaign will be ready when the technological infrastructure, the backend support as well as the employees have been well training and prepped for the launch.
The best time to start with the teaser ads is the 3rd week of May. By the time the informational ads in week 2 start to appear, it would be almost the end of the month. Consumers would have more spending power and it might psychologically influence their decision.
Situational Analysis
[Direction of the campaign: Very simple, concentrate on one area at a time at most employing 3 media options at one time]
About the Firm
Fibernet Malaysia was fortunate to receive a RM 1,500 million investment from a oil-rich Arab investor to set up an ISP. The current broadband market is dominated by Telekom Malaysia with their huge international computer network infrastructure, so any new players would have to have huge financial backing to get started.
Bandwidth comes primarily from Singapore. The biggest internet “pipes” in this region is in Singapore. They are well connected to over 50 countries around the region with dedicated access to vital internet hubs in Europe, Japan and America. All that Fibernet has to do is to pull a fiber line to Singapore and connect to other Tier 1 ISPs including Singtel’s rich network to provide connectivity to the Internet.
Strength
- We have the financial muscle to explore new technologies which might be costly
- We are new, so we can learn from other competitor’s mistakes
- We can meet customer’s demands for better reliable connections.
Opportunity
- Current broadband (in our market) is either too slow (either pure speed, or latency), too expensive for what they offer, and only available in selected areas.
- Our competitors “piggy-back” on two major networks, either Telekom Malaysia or Jaring. This means they’re merely resellers of bandwidth. We bring in our own bandwidth to the Internet.
Weakness
- Our prices are higher than competitors
- We are unsure whether customers are willing to pay for a better service
- It will take at least 10 years to recoup the initial investment
Threats
- Government regulation on new ISPs entering the market
- Foreign investment might be limited. The government might want to protect the local industry and investors
- Licensing of WiMax technology is based on bidding style auctions. It is difficult to obtain.
- The nature of running a business in Malaysia is questionable (especially having to deal with big government projects)
Fibernet Malaysia’s Internal Factors
The management team makes decision with the help of advisors from different fields and specialties. The company structure is divided into teams with a Project Manager in charge of a specific task.
The firm has no past promotional campaigns, but the marketing team has experience with advertising. We will employ external help to kick start and help to plan our campaign.
In general, WiMax is viewed by the public as “overpromise, under-deliver”. The technology has the potential, but the implementation is very weak. The name has been tarnished by the constant delays in roll-out as well as the paltry bandwidth limitations. Investment cost is high, which is one of the factors to the failure and the bad image of this technology.
We plan to change all that with our new Service.
How are we to change the status quo? Well, we solved one problem by having a big financial advantage, so making full use of our resources would be key to success. Implementation of the technology is important, but it must be backed up with competent staff, promotional team as well as great advertisements.
External Influences
Our target customers are dissatisfied customers of current wireless broadband connections. We must admit that we cannot directly compete with fixed line products like Streamyx or Jaring’s Wired Business broadband. However, there is a lot of room to improve on WiMax implementations.
Our major competitor is P1 WiMax. The good thing is that they have cocked up and tarnished the WiMax name.
As described earlier, there are various legal and political issues involved in setting up the service. We have to bid for government license. The process is non transparent and often dubious.
Competitive Advantage. In this business, there are only 2 measures of success: Speed and Stability. That’s it. If we can achieve that at a reasonable price, then we would be successful.
Sales Objective. We intend to make a good impression to the Innovators and Early Adopters of the service. The way we are going to do that will be described in the final report.
Budget
We will refer to the “Media Guide” to see how much full page Ads will cost. Our advertising partner will guide us with the Billboard Ad as well as the Website. We intend to spend prudently, using the bottom-to-top. We would concentrate more on providing a good service. We do not want to over-promise and under-deliver.
The prices below are quoted from an Advertising Agency, TPMG.
RM 50,000 – Billboard Ad for billboard, half a year.
RM 88,000 – Online Campaign a website will cost up to RM80,000, but if to implement banner ads like msn those type, maybe around RM8,000. This figure includes the promotion of the site through various online channels.
RM 24,000 – Newpaper ad, one week twice will cost around RM3 to 4k per month. This number is for 6 months.
RM 10,000 – Direct Marketing (Booths, etc). small direct marketing booth cost is low, maybe RM1k including promoters for 3 days.
We are planning to give “free trials” to bloggers / Tech review people as well. In order to save promotional cost, we plan to use cheap media blogs and social networking sites.
Target Audience
Since this is a high end product, we will target the KL business district and the City Centre at first. The second phase will be the high class residential areas like Sierramas, Shah Alam, Damansara and Hartamas. Thirdly, we target the upper-middle blue collared workers demographic.
We position ourselves to be the BMWs and Mercedes of Internet Service providers.
Communication Strategy
We want to distinguish ourselves from P1 WiMax, who is well known for their dirty marketing tactics and the smearing of the Wimax name. We want to compete with Time, Jaring Business Broadband is Telekom Malaysia in terms of Quality of Service.
Among the strategies we use are:
- Simple message. We fulfill two requirements of a good broadband service: Fast and Stable.
- Our webpage loads fast through clever methods of optimization.
- For our Promotional Booths and Demonstrations, we instruct our salespeople and agents to do real world, no gimmick tests and benchmarks of our service. P1 WiMax employs dirty tactics to make their service “seem” fast. After sign up, the customer satisfaction level is very low.
Creative Strategy
Yes, we do provide a huge distinct competitive advantage due to our huge investments.
[copy platform?]
[advertising execution?]
Draft Advertisements [note: attached]
Media Planning
Newspaper & Magazine. Newspaper has huge coverage and reach. Computer magazines have a specific target.
Scheduling, as above.
[end]
Philip Khor
philip@taylorians.com