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Posted: January 1st, 2025

Dialog GSM: An Analysis

Market Planning & Changing Market Demand

1 Executive Summery

Dialog GSM is a Leading telecommunication vendor in Sri Lanka Catering a customer base of 6 Million subscribers , with regard to the recent change in environment there has been a significance increase in demand for telecommunication need ,

Identifying environment change in time Dialog GSM wishes to have short term marketing plan & evaluation report to cater the current situation, The following report will initially address a 2 years short term marketing plan which initially highlights on a short term marketing plan based on the current environmental situation analysis, following marketing plan will identify the approaches strategies & recommendation to achieve the organizational goal

A critical evaluation report is also prepared to company the success of the marketing plan. Evaluation report will highlight on how Dialog GSM will adopt to the role of marketing and marketing planning in responding to a change in the external marketing environment

further evaluation report address on justifying the process of undertaking the marketing audit, and identifies the issues of information gathering and analysis associated in preparing the short tem marketing plan & how an appropriate strategy which can be developed to overcome the current situation , utilizing segmentation-targeting-positioning strategy & finally identify potential that may be encountered in implementing the marketing plan & present operational proposals for addressing the potential issues

2 Rational of Assignment

The rational of the assignment highlights significance increase in the level of demand for the Mobile telecommunication Sector in Sri Lanka, Since the Sri Lankan war has ended in the northern & eastern region of Sri Lanka in May 2009, The need for telecommunication need has increased targeting a additional customer base of 3.5 – 4.5 Million and above which could bring more revenue & market share to Dialog GSM (Sunday Observer, August 2009)

The emergence of wireless-enabled computing devices are empowered by ubiquitous, low-cost wireless data & mobile connections; In other words, we have a growing need for on-the-go communication supplemented by the rollout of 3G (third generation) cellular services and widespread Wi-Fi hotspots.

This is motivating telecommunication providers, expand the market share and in such small market the post war situation has lead to tremendous opportunity among telecommunication vendors

The Above diagram shows the opportunity in the market which is very much positive indicating the growth in telecommunication sector

The following report will highlight on a 2 years short term marketing plan on how Dialog GSM can cope up to the significance rising demand & since high competition is also expected to capture the same opportunity how Dialog GSM would have to plan in terms of Product positioning, segmentation & marketing strategy to overcome such competition

3 Situation Analysis

Current post war situation is created a tremendous opportunity to exploit new market, in analyzing the market environment; market economy is improving gradually as shown in the Macro & Micro analysis (see appendix, Internal Environmental Analysis, PESTLE Analysis & (Porter’s five forces Analysis)

As Sri Lankan economy is moving towards a recovering phase the probability and chances of an individual owning a mobile connection is high , as per the SWOT analysis its identified in about 20 million population in Sri Lanka, so far 10 million connection being sold which indicates the potential of the growing market

Today all mobile providers have huge potential in exploiting the market, where fierce competition is looked forward. One of the South Asian mobile operator, Airtel and Mobitel have shown interest to open their local offices and base stations in the northern region after the post war situation

In terms of Sri Lankan mobile industry, end customers look forward for a low cost affordability package and when comparing different vendors value added features plays a vital role in decision making process which is identified in Macro Analysis. Innovative technologies help brand to lead the market and generate revenue, for example, the innovation and the launch of 3.5G services was firstly introduced by Dialog GSM and this has created a huge value for the brand and the mobile broadband technology in Sri Lanka.

According to the present market situation identified, Dialog GSM needs to act fast and need to be innovative to be a leader in Sri Lankan mobile telecommunication sector, the following Marketing plan will address how Dialog GSM should improve revenue growth while improving market share.

3.1 Key Opportunities & Threat Identified from current situation

According to the current market analysis, the key opportunities and threats found through the internal & external marketing audit done (see appendix, Internal Environmental Analysis, PESTLE Analysis )& Porter’s Five forces Analysis), based on this information Dialog GSM could plan for a Synergistic plan to satisfy the increasing demand for Mobile telecommunication in Sri Lanka ,Based on this information Dialog GSM could plan for a Synergistic plan to satisfy the increasing demand for Mobile telecommunication in Sri Lanka

SWOT analysis is a tool that marketers use to assess an organization’s strength, weakness, opportunities, and threats. Strength and weakness are internal factors that are directly controllable by marketers. Opportunities and threats are external factors that are uncontrollable (Pride et al, 2006).

Key Opportunities

Key Threats

Opportunity to increase additional customer base of 4.5 Million subscribers from the post-war region

Opportunity for major market development strategy

Be a firs telecommunication provider to establish a strong island wide network & distribution channel

Opportunity to cater more CSR projects for the post war region to build good personal relationship.

• Competitors also aiming the same post-war region to capture market share

• Environmental changes in the political, social and economical conditions and the laws and regulations (Eg: TRC-SL regulations) actions will have impact on moving further

4 Corporate Objective

Marketing objectives should possess certain characteristics (Pride et al, 2006):

* Firstly, a marketing objective should be expressed in clear, simple terms so that marketing personnel understand exactly what they must achieve.

* Secondly, it should written so that it can be measurable and

* Thirdly, it should specify a time frame to accomplish

The below from 2008 annual report explains the marketing objectives of Dialog GSM for the next 2 years.

(Dialog GSM Annual Report, June 2008)

5 Segmentation

There are a number of reasons why organizations undertake segmentation (Doyle, 1994):

* To meet consumer needs more precisely

* To Increase profits

* To gain segment leadership

* To retain customers

* To Focus marketing communication

6 Targeting

Targeting is all about which market segment(s) a business decides to priorities for its sales and marketing effort (Dibb, Simkin, Pride Ferrel, 2001)

Targeting the right product to the right segment using the right marketing mix is important; Dialog GSM needs to implement differential targeting strategy for the segment of customers identified as above to cater the post war region, each product based segments have mentioned above has different characters from each other, identifying the correct audience and implementing the appropriate marketing mix strategy is important

7 Positioning

Kotler (1998) defines positioning is a act of designing an offer so that it occupies a distinct and valued places in the mind of the target customer

Dialog GSM should be able to retain and position the brand a leader by providing the best quality of customer service and the up to date innovative technical infrastructure to cater its customer’s base island wide, still Dialog GSM needs to maintain its customer service quality to be perceived among the current and potential customer to be a market leader

8 Dialog GSM Strategy Audit

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