How to win the competition through actionable insight? This presentation was created for guest lecturer at Bina Nusantara International College, Marketing Faculty. Please enjoy and let me know if you have any feedback. Thanks.

1. The Sun Tzu Principles in
MARKETING TODAY!!!
“Winning the competition through actionable insights”

2. Sumartok
8 years experience Pharmacy & Telecom Industry
Great passion on Marketing & Innovation
Love reading a lot and never say no to traveling
sumartok@gmail.com

3. Table of Contents
Introduction
Dramatic Shift in Marketing Today!!!
Sun Tzu in the Marketing Strategy
Research your customer in recession
Welcome to the real world...

4. Introducing...
Bakrie Telecom

5. Disruptive Innovation

6. 2006
The first cheapest call
in Indonesia
with Rp 1.000,- /hour

7. 2007
The first cheapest phone
in Indonesia
with Rp 199.000,- only

8. 2007
The first cheapest color phone
in Indonesia
with Rp 249,000,- only

9. 2008
The revolutionary SMS charging
in the world
with Rp 1/character

10. 2008

11. 9?
00
2

12. Esia Termurah Tariff
to All Destination
for Non JBJB area

13. Tarif Termurah SP 8
to All Destination
for JBJB area

14. The first cheapest international call
with clear voice
SLI Hemat 009

16. t?
ex
t n
ha
W

17. “How can we make profit with our very low and affordable price?”

18. Budget Operator

19. Marketing Today!!!

21. Marketing Today!!!
Product Solution
Promotion Information
Price Value
Placement Access

22. Know your enemy and know yourself and you
can fight a hundred battles without disaster
Sun-Tzu, Chinese Art of War

23. The relevant strategy component How does it work?
Knowing yourself - Business Intelligence
Business
What a new profitable business opportunities?
Intelligence
Who are the profitable customers?
Why are we perform or not perform well?
Knowing your field - Consumer & Market Insight
What our customer desire and trade needs?
Does customers satisfied with our products?
Relevant Which advertising generate sales?
Strategy
Knowing your enemy - Competitor Intelligence
What are my competitors doing now and tomorrow?
What our positioning in the market?
Consumer Competitive
& Market Do we still competitive in this cluttered market?
Intelligence
Insight
The Relevant Strategy

24. Is
Everything

25. Consumer & Market Insight

26. The important of presence
“I know bec
“Brand team often posses very ause I was
different lifestyles, profile and there”
background compared to their
consumers”
consumer
r
ou
hy
wit
ect
nn
co
Re
“What I hear, I forget,
what I see I remember,
what I do I know.” Chinese proverb

27. The Data Detectives
The The The The The
Researcher Quizmaster Deep Diver Helpline Profiler
for customer for customer for customer for customer for internal
surveys panels immersion complaints databases
The The The The The
Outsider Facilitator Neurologist AgonyAunt Partner
for market for focus for brain for customer for affinity
20 SOURCES OF profiling groups scanning feedback databases
CONSUMER
The The The The The
INSIGHT Pollster Cameramen Customizer Private Eye Categorizer
for omnibus for customer for previous for mystery for external
surveys vox pops co-creation shopping profiling
The The The The The
Ambassador Coolhunter Believer Front Liners Governor
for parallel for trend for personal for staff for census
markets spotting intuition anecdotes information
source : Customer Genius, Peter Fisk

28. Competitive Intelligence
Anticipating and preempting competitor’s moves

29. What is Competitive Intelligence (CI) ?
“A systematic and ethical program for gathering, analyzing,
and managing external information that can affect your
company’s plans, decision and operations”

30. How can competitive profiling and analysis drive key decision?
“The Four Key Question”
What?
According to dealer, Fren plan to launch a new tariff on Feb 2006
What is happening or will happen? Objective, One of technical team from mobile-8 said the tariff will be half then Esia
synthesized, clear and concise report about market and
competitive developments.
Why? Esia is growing very fast with 750k subscribers by Q1 2006 while Mobile-8
has 1.3 M. Mobile-8 look at Esia as a threat to their market since Esia has
What are the reason for this? An explanation of the “Talktime” campaign with Rp 3.000,-/hour.
forces responsible.
So What? If mobile 8 give half price to Esia, it will potential shifting Esia subscribers to
Fren. We need to achieve our critical mass (1M subscribers soon). If
So what is the impact on us? An analysis of the mobile-8 success with their Rp 1,388 per hour campaign, imagine what
possible implications for your company, and their magnitude. happen to Esia?
Now What? No other way, we need to bring give more attractive tariff before mobile-8
come with their Rp 1.388,- per hour. We campaign our new tariff Rp 1,000/
Now what should we do? Recommended course of hour a day before mobile-8 with a big exposure.
action to counteract, pre-empt or lead

31. Esia Rp 1.000,-/hour
Kompas, 2 Feb 2006, page 11

32. Fren, Rp 1.388/hour
Kompas, 3 Feb 2006, page 23

33. One day faster is very valuable
in the tough competition

34. It’s Not the Big That Eat the Small
but
It’s the Fast That Eat the Slow

35. In time of recession, research your consumer

36. Youth Today!!!

37. “I was born under unusual circumstances”
The Curious Case of Benjamin Button” is a time traveler’s tale of the
people and places he bumps into along the way, the loves he loses and
finds, the joys of life and the sadness of death, and what lasts beyond
time.
Adapted from the 1920s story by F. Scott Fitzgerald about a man who is
born in his eighties and age backwards
… and so does Mobile Phone Users Profile

38. More young people (teenager) use mobile phone
Age Profile HP Owner
Q2’07 vs. Q4’08
11%
14-17yo
14%
28%
18-24yo
27%
30%
25-34yo
29%
21%
35-49yo
22%
10%
50++
8%
Q2 2007 Q4 2008
Source: Single Source Roy Morgan, up to Q4-08, it is also confirmed by Brand Health Tracking where the proportion of age range 14 – 19 yo is increasing

39. 2007
27% of teenagers have mobile phone

40. 2008
45% of teenagers have mobile phone

41. I’m the Superstars !!! Center of attention...
“All the world is a stage and all the men and
women merely players...but...
I like to take center stage
source : Synovate Young Asian Survey 2007

42. Anything to be the center of attention
“...So that my friend will
think that I have a lot of
mobile phone...”
“I want to match the
phone cover with my
dress...”
te ms
ze dI
n ali
rso
Pe
source : Synovate Young Asian Survey 2007

43. Anything to be the center of attention
“Kribo” hairstyle
currently back popular
as ‘Nidji’ (local band)
hairstyle
Sun hat in night club
te ms
Tribal Tattoo dI
na lize
sque
style rso
Bur le thing
Pe
clo
source : Synovate Young Asian Survey 2007

44. Still strong on family and togetherness My g
randp
Urba a’s birthd
n’s K a
itchen y at
nd their
Wit h my cousins a
girlfriends
“My family is part of My Life - What I
do and achieve, I do it for my family” At JCo,
Ciwalk
with gra
and dad ndma
t Su ltan
Lebaran Day a
source : Synovate Young Asian Survey 2007

45. Cell-phone is my ‘second soul’
“Mobile
phone is
“If I go to the campus and forget as our s
econd so almost the sam
to bring m y cell-phone, I feel like I Jobber ul.” - Fem e
ale, Fir st
am not w earing any clothes. ” -
Female Student
source : Synovate Young Asian Survey 2007

46. Virtual Socializing - just important or more important than being
together physically
“Everyday, the first thing I do upon arriving home is
open my Facebook, who knows there’s somebody who
sends me hugs.” (Irene, 23 y.o)
source : Synovate Young Asian Survey 2007

47. TREND SPOTTING

48. WHAT’S HOT?

49. What’s NOT?

50. Huawei is strongest amongst younger age groups, possibly due to it
lower price positioning
Source : Global Telecom Insight 2009 - TNS

51. Imaging and music features are critical for consumers looking to buy their next mobile phone
% Global (2008) Indonesia (2008)
(40%) (55%)
Imaging
(15%) (19%)
(39%) (40%)
(6%) (9%) Messaging
(7%) (4%)
(10%) (10%)
Music
(12%) (12%)
(15%) (6%)
(4%) (4%)
(11%) (11%)
(6%) (6%)
Source : Global Telecom Insight 2009 - TNS

52. Consumers are looking to move away from candy bar phones to sliders
Form factor owned Form factor desired
%
Source : Global Telecom Insight 2009 - TNS

53. SMS is remains the dominant messaging form with almost universal penetration
% using
Global (2008) Indonesia (2008)
!"#$%& !/)$%&
!'($%& !+)$%&
!)#$%& !)'$%&
Messaging
!))$%& !0$%&
!*$%& !)$%&
!#$%& !'$%&
!+"$%& !+'$%&
Connecting
!*$%& !+$%&
!'$%& !1$%&
Internet
!,-.%& !,-.%&
!,-.%& !,-.%&
!'$%& !1$%&
Source : Global Telecom Insight 2009 - TNS

54. Pooling phones for family use is a strong reason for owning multiple phones
% selecting primary reason for having multiple phones
Global Emerg Asia Indonesia
Source : Global Telecom Insight 2009 - TNS

55. Welcome to the real world...

56. If you cannot measure
then you cannot manage

57. Who is the champion?

58. Total subscriber reach 167 M by end of March 2009
Telkomsel 72.1
Indosat 33.3
XL 24.8
Flexi 13.3
Bakrie Telecom 8
Hutchison 5.3
Natrindo 3.5
Mobile-8 3.2
Smart 1.9
StarOne 0.85
Sampoerna 0.8
Source : published report

59. Too Huge?

60. Market Share Development
Q1’06 - Q1’09
Operators Q1’06 Q1’07 Q1’08 Q1’09
Telkomsel 50.3% 51.3% 45.1% 43.1%
Indosat 24.2% 23.8% 23.2% 19.9%
XL 15.3% 13.3% 16.1% 14.8%
Telkom Flexi 5.8% 6.1% 5.9% 8.0%
Bakrie Telecom 1.4% 2.4% 3.9% 4.8%
Hutchison 0.0% 0.0% 2.0% 3.1%
Natrindo 0.0% 0.0% 0.0% 2.1%
M8-Fren 2.5% 2.7% 2.9% 1.6%
Smart 0.0% 0.0% 0.2% 1.1%
Starone 0.4% 0.6% 0.6% 0.4%
M8-Hepi 0.0% 0.0% 0.0% 0.3%
Source : various information, published report

61. We’re leading as the best CDMA operator in national level
Simpati 29.5%
IM3 20%
Kartu AS 16.5%
Bebas XL 12%
Mentari 8.6%
Esia 8.4%
Flexi 7.9%
Jempol XL 2.3%
3 (Three) 1.3%
Smart 0.8%
Fren 0.7%
Axis 0.6%
Ceria 0.6%
Kartu HALO 0.5%
StarOne 0.4%
Xplor 0.2%
Matrix 0.1%
Hepi 0%
Source : Single Source - Roy Morgan as of Q1‘2009

62. We’re even leading as the biggest market penetration in Jabodetabek
Esia 30.4%
IM3 26.5%
Simpati 20.1%
XL Bebas 11.9%
Mentari 9.6%
Flexi 6.2%
Kartu As 3.3%
3 (Three) 1.8%
Smart 1.6%
Fren 1.2%
Axis 0.7%
Ceria 0.6%
Matrix 0.5%
Kartu HALO 0.4%
HEPI 0.2%
XPLOR 0.2%
StarOne 0.2%
Source : Single Source - Roy Morgan as of Q1‘2009

63. y?
Wh

64. Consistently “TOP 3” spontaneous brand awareness in Jabodetabek & West Java
Q1-2008 Q2-2008 Q3-2008
Simpati 93 Simpati 81 Simpati 86
Mentari 78 Esia 79 Esia 78
Esia 65 Mentari 76 Mentari 73
IM3 60 IM3 67 IM3 68
Flexi 59 XL Bebas 60 XL Bebas 63
Q4-2008 Q1-2009 Q2-2009
Simpati 86 Esia 85 Simpati 82
Esia 85 Simpati 82 Esia 81
Mentari 71 Mentari 74 Mentari 75
IM3 67 IM3 69 IM3 70
Flexi 53 Flexi 51 Flexi 50
Source : BHT-TNS , up to Apr 2009, Base : users random (in %)

65. Esia is perceived as a brand who provide cheap handset
Q1-2008 Q2-2008 Q3-2008
Smart 48 Esia 48 Esia 45
Esia 43 Smart 34 Flexi 29
Fren 25 Fren 32 Simpati 23
Simpati 17 Flexi 29 Fren 17
Flexi 17 Ceria 29 Kartu As 12
Q4-2008 Q1-2009 Q2-2009
Esia 76 Esia 74 Esia 74
Flexi 49 Flexi 59 Flexi 48
Smart 22 Smart 28 Smart 27
Fren 18 Fren 16 Fren 17
Simpati 11 Hepi 9 Axis 11
Source : BHT-TNS , up to Apr 2009, Base : users random (in %)

66. Esia still perceive cheap tariff perception in the tough price wars period
March 2007 June 2008 April 2009
Esia 81 Flexi 63 Esia 45
Flexi 67 Esia 62 Simpati 37
IM3 38 Bebas 33 Flexi 35
Fren 34 IM3 32 IM3 29
StarOne 30 Simpati 20 Mentari 21

67. Ads Reach GRPs Reach/100 GRPs Motivated
Mentari-Sakti 93 6,348 1.5 41
XL Monyet 96 5,493 1.8 47
Tri (3) - Maen SMS 86 4,513 1.9 65
Tri (3) - Nelpon Murah Luar Negri 71 4,349 1.6 31
Axis - Good GSM 74 4,253 1.7 52
Axis - Reporter 1000 SMS 87 3,258 2.7 29
Smart - Free Talk Indra Birowo 75 2,904 2.6 61
BEBAS - Rp 0,1 / detik 94 2,714 3.5 85
Esia - Huawei Rp 249k 85 2,333 3.7 75
Esia - Diskon 25% ke semua operator 79 2,052 3.8 50
Esia - SMS Rp 1/karakter 80 2,021 3.9 56
Esia - RINGGO CASH BACK 87 1,937 4.5 63
Esia - Huawei Color Ringgo 90 1,902 4.7 63
Simpati Pede - Indra Bekti 92 1,806 5.1 83
Simpati - Duet 74 1,635 4.5 43
Esia - Ringgo HP Kilau Warna 82 1,565 5.3 50
Esia - HP Hidayah 79 1,509 5.2 56
Kartu As - Bicara Gratis 1 Menit 74 1,467 5.0 35
Esia - Ringgo Tariff Comparison 90 1,346 6.7 55
IM3 - Cumi Mudik 83 1,017 8.1 37
Esia - HP Kilau Warna 69 1,070 6.4 55

68. w?
Ho

69. Show me the numbers...

70. Continues to educate consumers that Esia still the cheapest
while others try to project “cheapest look” image

71. Esia Termurah vs. Simpati
“On Net-Peak Hour”
800
600
400
+618
200
i!!! h
0
Q1’08 Q2’08 Q3’08 Q4’08 kt ra
Q1’09
rbu mu
Te er
aT
Esia Simpati
Esi

72. Esia Termurah vs. IM3
“On Net - Peak Hour”
700
525
350
+612
175
i!!! h
0
Q1’08 Q2’08 Q3’08 Q4’08 kt ra
Q1’09
rbu mu
Te er
aT
Esia IM3
Esi

73. Esia Termurah vs. XL Bebas
“On Net-Peak Hour”
600
450
300
+560
150
i!!! h
0
Q1’08 Q2’08 Q3’08 Q4’08 kt ra
Q1’09
rbu mu
Te er
aT
Esia XL Bebas
Esi

74. Esia Termurah vs. XL Bebas
“On Net- Off Peak Hour”
400
300
200
+310
100
i!!! h
0
Q1’08 Q2’08 Q3’08 Q4’08 kt ra
Q1’09
rbu mu
Te er
aT
Esia XL Bebas
Esi

76. Thank You