(IDD Market - Hutchison Page 10)
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.
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.
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