(IDD Market - Hutchison Page 10)

Tactical planning  

1.Product

Product strategies focus on the functional characteristics of IDD goods and service. IDD services actually are convenience products that consumers want to purchase frequently, immediately, and with minimal efforts. Sales of convenience products usually hinge on brand names and low prices.

Consumers rarely visit competing stores or compare price and quality when purchasing such convenience products. However, consumer do not always remains permanently loyal to one brand of IDD service companies. People continually receive new information from advertisements. The low prices of most convenience product also trial purchases of competing brands or products with little financial risk. These trials often lead to new product preferences.  

Convenience products help consumer use the product frequently. Since consumer devote little effort to purchase decisions for convenience products, Hutchison must strive to make these exchanges as convenient as possible. They should provide IDD service in all fixed networks, such as telephone in house , shopping centre, street etc.  

Product differentiation helps Hutchison more competitive. IDD industry continues to grow during the early part of the maturity stage, but eventually they reach a plateau as the backlog go potential customers dwindles. By this time many competitors such as New World, City telecom, CTI have entered the market , and the firm’s profits begin to decline as competition intensifies.

In the maturity stage, differences between competing products diminish as competitors discover the product and promotional characteristics most desired by consumers. This situation strongly supported Hutchison to differentiate their IDD service by focusing on attributes such as quality, reliability, and service.  

Conference call – provide various services to satisfy the need of the customer do establish the customer loyalty. We can observe that there are more and more family use IDD service to contact with their relatives. If the new service provides the chance to those customers communicate with each others, listen to their voices. It will be more convenient to communicate with only one.  

Foreign hotline – useful hotline can motivate customer use IDD service more frequently. Customer will sometime seek for information. For example, customer will eager to know the situation of foreign airport when there is some emergency in those place. Providing useful hotline with especial code can help the customer receive their information more easily, also they will enjoy to sate and use Hutchison IDD service.  

Study foreign language – providing a chance to communicate with foreigner will motive our customer enjoy our service. Co-operate with some foreign education institute and conduct some programs that help local and foreign students communicate. Which service can help the customers gain more benefits form using IDD service.  

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2.Price

In the mature stage , Hutchison can seeks to maximize sales within a given profit constraint. They can seek to maximize sale in the belief that the increased sales are more important than immediate high profits to the long-run competitive picture.

Other discounted rate – The more you use , the less you pay. In order to motivate the level of using IDD service, Hutchison can provide some planning such as provide a high discount after 30 minutes or 50 minutes. It can help the customer feel that they are getting some benefit after using Hutchison ‘s IDD service.  

Free air time – Base on the same concept, Hutchison can give the free air time per 150 minutes IDD service. Which can increase the loyalty of our customer, and help them committed to use IDD service only in Hutchison in order to gain the extra profit.

3.Promotion

Concentrate on the convenience product, brand name become more important. We can use reminder advertising strives to reinforce previous promotional activity by keeping the name of our IDD service, Hutchison company , before the public, It is common  in the latter part of the maturity stage and throughout the decline stage of the product life cycle.  

Sale promotion – using sales promotion techniques were originally intended as short-term incentives aimed at producing immediate consumer buying responses. We suggesting offer discounts continually like “talk more, save more” scheme, low price in particular countries.  

Bundling- Link with other products within Hutchine Company. We can use fixed monthly pay like $100 for 90 min IDD service per month or $300 for 310 min IDD service for every country per month. The remaining air time can transfer to Hutchine ‘s mobile and internet services. Which can motivate customer consume in Hutchin in different area and make them feel flexible.

Luck draw – Monthly Luck draw with utchison’s product such as mobile, pager, internet, IDD service, supermarket, housing etc. can attract more customers to joint utchison product.

   Choosing media

In order to provide a temporary nature of message, we use about 37% of Broadcast media such as television and radio to have a great and immediacy impact . 53% of print media such as newspapers, magazines and outdoor advertising to capture a public concern. 10% on electronic combination such as internet to conduct two-way communication .

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