SUNDAY communication Essay Example | Topics and Well Written Essays - 2000 words

SUNDAY communication - Essay Example Before going to the main discussion the study will define the background and business context of the problems faced by to SUNDAY Communications Ltd in recent times in order to provide logical background of this consultancy proposal. Background Information & Literature Review Choi, Lee and Wong (2001) presented the case study named as â€Å"Sunday communications ltd: A marketing strategy for the wireless future† in order to highlight existing challenges faced by the telecommunication company and challenges regarding future plan of the company. In such context, consideration of the research works of Langlois (2003) reveals the fact that it is very difficult to establish identifiable position in a small market place which is pretty much saturated due to presence of competitors. Same is the condition for Sunday communications ltd which was founded in the year 1994 when the Hong Kong telecom market was already dominated by large telecom players like PCCW-HKT, SmarTone Telecommunica tion Holdings Ltd, Hutchison Telecom (HK) Ltd, New World Telephone and Peoples Phone. There is no doubt that Sunday communications ltd was new entrant and none of existing competitors was ready to give free space to the new entrant. . Garbarino and Strahilevitz (2004) and Harris, Jenkins and Glaser (2006) stated that new entrants need to adopt product differentiation strategy in order to establish distinctive brand image in the mind of customers of a small saturated market. Kotler (2000) pointed out that marketers should increase engagement level of customers while offering low engagement products because customers do no spend much time in making purchase decision for low involvement products like telecom network connections, FMCG goods. Therefore, Sunday communications ltd had two challenges, 1- to establish distinctive brand positioning in the mind of customers of Hong Kong and 2- to compete with existing telecom players in the market with the help of product diversification. Comp etitive pressure on Sunday communications ltd has further increased after Office of the Telecommunications Authority (OFTA) launched Mobile Number Portability (MNP) during 1999. After launching MNP, existing six telecom operators in Hong Kong started competing on price because in newly launched system, subscribers can switch to other network provider without altering the mobile number. Competitors like PCCW-HKT, SmarTone Telecommunication Holdings Ltd, Hutchison Telecom (HK) Ltd, New World Telephone and Peoples Phone not only stopped in reducing the subscription price to attract customers but they even started offering handsets at minimal price to customers. There is story behind the brand name â€Å"Sunday† which was created by the company in order to portray relaxed and easygoing attitude. Another thing is that the company had the plan to launch the brand internationally therefore they thought that using a universal name would help global customers to connect easily (Choi, Lee and Wong, 2001). Sunday communications ltd used product diversification strategy in order to establish distinctive market positioning. Global System for Mobile Communications (GSM) service (through mobile Intelligent Network) was speciality of the company while Sunday communications ltd also started offering services like Wireless Application Protocol (WAP), IDD, ISP & portal etc to customers. The company also used aggressive pricing strategy like 24-hour flat subscription rate in order to win the completion. Even, Sunday communications ltd launched SO WAP and ISP (narrow-band dial-up service) which gave users opportunity to access