Marketing Paper for Value Brands

1239 Words Feb 14th, 2012 5 Pages
Marketing Paper For Value Brands


Touch Mobile or TM is one of the cellular service brands of the second largest telecommunications company in the Philippines, Globe Telecom, Inc. Positioned as the champion brand for value seekers in the country, it was triumphant in gaining recognition as the first-mover in providing the most affordable, hence lowest priced call and text promo offers. It was also the first brand that paved way for popularity of bucket promos that include all network texts and voice calls allowing TM subscribers to connect to other local sim users. Currently with around 11 million subscribers, TM has a meager 15% share in total prepaid mobile market ranked as the 4th key player in
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high speed broadband, better after sales service, wider network coverage).
• They have considerably low switching costs as SIM cards from other networks are currently priced at P40-P50.
Barriers to Entry
• Various government regulations and policies which potential entrants need to comply with are being implemented.
• High amount of capital is required to set up communications infrastructure.
• There is already an established brand equity among existing dominant players which makes it rather difficult for entrants to level the playing field.
• Competitors are perceived to have attained economies of scale over the years.
• There are only three dominant players in the market which are directly pitting against each other.
• Competitive advantage of the market leader in terms of network coverage and mind share among consumers makes it difficult for other two competitors to dictate industry game plan.
Threat of Substitutes
• Possible substitutes are other communication channels particularly driven by internet access e.g. social networking sites, video messaging, etc.
Supplier Power
• Network technology support is highly dependent on outsourced service providers and entails high switching costs to players.

There are currently 5 prepaid brands competing against each other – Smart Buddy and Talk ‘N Text of Smart Telecom; Globe Prepaid and Touch Mobile of Globe Telecom and Sun of Sun Cellular, Inc. Of the other four brands, TM’s direct

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