Critical Analysis of Marketing Audit for D-GSM

Critical Analysis of Marketing Audit for D-GSM1.1 IntroductionIn todays high-powered telecommunication industry it is critical to test the dynamic environment and analyze key reaping/service pass to fair game customers. yet, the information gathered from trade audit is used to critically analyze Dialog crossroad take out performance and genuine overlap negotiatement issues with relevant tools and models to advert the key opportunities/weakness which D-GSM could face in in store(predicate).1.2 General IssueInefficient vallecula distribution solicitudeThe downstream distribution is a key part of achieving sales objectives for D-GSM. In other words, business-to-business (B2B) customers push the fruits of D-GSM to end customers. Currently D-GSM is operating with four major(ip) first tier distributors and 1200 retailers in 85 cities in Sri Lanka.In recent past further the retail distribution chain has declined in each land (Refer appendage B 10.0). The long tier reta il distribution has reduced the profit margin thus departed the retailers go outing to promote competitors merchandises (Refer addendum B 11.0). some other reason place for this decline is high sales staff turnover which resulted for poor retail oversight.The issue highlighted above can be highlighted using Ishikawa stupefy/Effect diagram shown below (Refer guess 1.0) mannequin Adopted from (Albert, 1989)1.3 Product Management IssueCurrent Health of Product PortfolioFigure 2.0 BCG MatrixBCG Model Adopted from (Kotler, 2008)Healthy product portfolio is important for organization to gain competitive advantage. advertize analyzing the Boston Consultancy Group (BCG) matrix (Refer Figure 2.0) its understood that D-GSM key products ar positioned i0n cash cow. In long term these products could move to dogs section which could harm the product performance of the organization. throw out products like Kids connection and Code-Division-Multiple-Access (CDMA) are currently in do gs section of BCG matrix necessarily to be removed from the product portfolio as they consume high monetary value to maintain the products and return low profit to the organization. locomote forward D-GSM call for to plan for product increase to position in star segment of BCG matrix which is currently with few products. Star products are passing needed for organization to gain competitive position eventually star products forget arrest cash cow and dogs respectively, Further D-GSM needs to identify products are in the question-mark segment to invest to generate commercialise share and returns.Now it is proved lack of product portfolio anxiety has resulted developing low income generating products and thus D-GSM needs to follow a strategical system of rules to convey a balanced product portfolio centering to gain competitive position in dynamic grocery store.Inefficiencies in New Product Development(NPD)Model adopted from (Kotler, 2008)D-GSM is currently facing set ba ck with competitors. Presently D-GSMs core products, which face severe competition from competitors, are in maturity date stage. Thus these products are experiencing reduction in the profit margin (Refer cecal appendage B- 8.0).The marketing audit (Refer appurtenance B) clearly indicates that Dialogs Mobile-wideband is currently in maturity stage and clearly indicates declining in profit. Further it is evident that no product-line-extensions are developed for the product survival which has created a quick decline stage for around of the product.There are few products and product-line-extension that are developed having long gap in introducing to the market in the mod product development pipeline (Refer Appendix B- 11.0) as a result existing mature products (Cash-Cow) tends to decline faster. Moreover this is further evident that D-GSM has allocated low marketing budget allocated product innovation (Refer Appendix B- 12.0).Overall improper worry in NPD has created threat for D- GSM of being a market leader and loosing first mover advantage for key products.Gap determine in mobile-broadband STP StrategyToday in telecom industry mobile-broadband is a core product and a matured product in the PLC it is consumed in a very high take aim and has become a commodity in daily life. The marketing audit has identified that D-GSM has been targeting the same segment which are professionals/ ripened executive since inception their mobile services. This is a drawback for D-GSMs long term survival and its market leadership. Further competitors are able to manipulate this service and will flake out its market share (Refer Appendix B Appendix B- 4.0).The PESTEL depth psychology provides evidence that new voltage segments are emerging much(prenominal) as entry level executives (1), undergraduates/students (2), travellers and businessmen (3). As result old segments are becoming outdated. (Refer Appendix B- 12.0).The below diagram illustrates the ability of D-GSM to off er and take necessary action for new segments (Refer Appendix B- 9.0).Figure 4.0 G.EMatrixModel adopted from (Business tools, 2007)The output of market segmentation matrix identifies the emerging new segment to generate more(prenominal) gross and outgrowth market share by freeing the broadband (Refer Figure 4.0).Knowledge gap in customer preferenceInternet applied science is continuously evolving and adapting to such changes is highly important to D-GSM. Continues adaptation to such technology and augmenting future technology is important for long term survival.The marketing audit explicitly specifies that D-GSM provides the core features of MBB to pledge customers. Further it is not providing the expected features or long term product augmentation of MBB (Refer Appendix B- 9.0).Referring to figure 5.0 clearly indicates gap between current feature offering of broadband and customer expectations. To fulfill this gap D-GSM needs to continuously evaluate customer expectation and adopt to provide new technologies to refrain market leadership.1.4 final stage of Critical AnalysisLack of informationKnowledge gap in changing marketGaps in STPPotential New segments to targetDeficiencies in the product portfolio2.0 Recommendation sideline recommendations are addressed below to overcome current drawbacks faced by D-GSM having critically analyzed using market audit. Recommendations are categorized to cater mobile-broadband and product portfolio vigilance.2.1 Recommendations for Mobile-broadband product LineRecommendation 1 Reposition Mobile-broadbandTopic 1.3 above states that current segment targeted for mobile-broadband is declining. Following segments are identified as target audience who are students, travellers and undergraduates to be targeted to generate high revenue for mobile-broadband.Proposal in Detail Following recommendation is to reposition the mobile-broadband product line targeting new potential segments as the current segment is declining. This is also evident where 3 major UK telecommunication vendors has overall share of 30% mobile-broadband users as students and undergraduates affording on the go low-cost internet facility (Gabriel, 2011).Currently mobile-broadband is a cash cow product. Repositioning this product can help D-GSM to reach more customers and generate more revenue. Based on the proposed recommendation, following product forecast is analysed using net present value (NPV) analysis.Table 1.0 NPV Analysis for Mobile broadband repositionKey Finding of NPV AnalysisReturn on Investment (ROI) The entire return on Investment on the repositioning the product will be fully recovered by the end of the first year.Forecasted sales performance Repositioning the product will pave the way to the sales to attach notably. Nearly 67% increase in first year, 150% within two years and 200% within three years.NPV analysis indicates positive (+) result which mean reposition will be successful. The product can be expected to perf orm well in the market to gain more revenue and market share for Dialog mobile-broadband. Further D-GSM could follow the proposed product reposition process for mobile-broadbandFurther D-GSM could follow the proposed product reposition process for mobile-broadbandFigure 6.0 Proposed product reposition process for mobile broadband product lineTo founder position mobile-broadband D-GSM could adopt the following marketing mix to reach the fresh identified segments since the current marketing mix for mobile broadband is outdated.Table 2.0- Proposed new marketing mix for mobile broadband product lineFollowing perceptual map can be considered for the new repositioning strategy,2.2 Recommendations for Product ManagementRecommendation 2 Appoint Product Management aggroupThe present marketing structure is incapable of managing multiple product portfolios at D-GSM. This structure only focuses to cater existing product portfolio and provides low importance for NPD. Further, it is inefficie nt to support and manage more products by fewer staff which increases the existing workload.Proposal in DetailIt is recommended to restructure existing marketing hierarchy to cater NPD, to conduct product management efficiently and reduce burden on staff of marketing department. This recommendation emphasises the creation of a product management team, which could be formed to better manage product portfolio for D-GSM. Below product team structure is recommended (Refer figure 7.0)Recommendation 3 Financial Resource Allocation to Product managementFurther to the critical analysis conducted it is understood low financial resource allocation as key reason for poor performance of product management in D-GSM. To overcome this issue more financial resource allocation has to be allocated for better product management in future.Proposal in Detail Following recommendation is to cater financial resource for product management team. Proposed financial resource will cater the team to conduct pr oduct portfolio management, new technology acquisition for product development, research development to introduce new products/service to market.It is recommended to allocate 10% of the annual sales revenue to facilitate product management team. The following financial allocation sectionalisation is proposed.Table 3.0-Proposed Financial Allocation breakdown for protrusion management teamRecommendation 4 -Implementation of Product Portfolio Management System (PPMS)In topic 1.3 identifies the lack of system and process in place to manage product portfolio and help senior management bring strategic decision towards managing product portfolio as it consumes human and financial resources .This recommendation will highlight in applying a PPMS for D-GSM.Proposal in Detail This recommendation is to implement PPMS for D-GSM. This system in place will help management make strategic decisions and allocate investments to individual products with the goal of optimizing the entire product po rtfolio. Also this system will provide a tool to maximize the performance of product portfolio in varies stages of PLC.The following system will help product management have a consistent view of product performance, products status in PLC, new product development pipeline progress, monitor product operation cost and more with product portfolio management.Further with the help of such system product development managers to align product roadmaps with market expectation and help to increase revenue, grow market share and reduce costs.Benefit for D-GSM by implementing PPMSMaximize the performance of D-GSM product portfolioPMSS in place will enable centralized management of product portfolioPMMS in place will enable product managers to align product roadmaps with marketing objectives to increase revenue, grow market share, and reduce costsPMMS will enable product management team gather historical information which is valuable information that will improve duration to market of future p roductsRecommendation 5 rarify Re-align Channel DistributionThis recommendation will highlight in improvising the current retail management and introducing new retail partners for D-GSM to expand the ancestry distribution to compete with competition and in long term to penetrate Sri Lankan market.Proposal in Detail Proposed strategy of expanding the channel distribution to reach wider untapped market of D-GSM as competitors are aggressive in penetrating the market .This strategy will enable D-GSM to gain more consumers and boost profit through additional venues and expanding current channel distribution can be an effective tool to increase existing business for Dialog GSM.Benefit for D-GSM by Expanding Re-aligning Channel DistributionChannel expansion will cut down operational cost in every region and improve sales performanceCurrent level of channel risk will be minimized and risk could be shared among many regional retailersExpanding channel distribution will help in shuff ling building and make products available in more locations which will raise consumer awareness of D-GSM offerings.Recommendation 5 Implementation of Marketing Information System (MKIS)Further to the critical analysis conducted in 1.5 and 1.6 it is evident that there is no system and process in place to monitor dynamic market environment and consumer expression, in current situation without a proper system in place D-GSM has not been able to understand consumer behavior and identify emerging segments and target potential new market.Proposal in Detail The following recommendation is to implement a MKIS. This system in place will help D-GSM to scan dynamic market environment constantly to make strategic decisions. Further this system will enable the marketing and product management team to analyze consumer behavior and act accordingly in competitive environment. In long term this system in place will enable the organization to be market oriented.Proposed key integrated feature of th is system will beMarketing intelligenceInformation AnalysisMarketing research interior RecordsThe prototype of the proposed MKIS will be as shown in figureBenefit for D-GSM by implementing MKISMKIS will enable organization to constantly monitor dynamic marketing environment go around marketing information within organizationMKIS will enable to analyses consumer behavior, This will help D-GSM to better manage STP strategies for new productsMKIS will facilitate towards product planning and control3.0 Evaluation of Resource capability and Capacity Management3.1 IntroductionThis section evaluates the resources and capability requirements to deliver the identified recommendations for product management of D-GSM. This analysis is based on drawbacks identified from the critical analysis and possible recommendations are proposed to re-align the current D-GSM resources and capabilities to desired level.3.2 Analysis of current organizational capability and resourceWhen conducting a come out management in this scale it is important for D-GSM to evaluate current resource capability and capacity of the organization to deliver the recommendations proposed under heading 2.0. Further to evaluate the current strength of delivering the recommendations, a skill audit was conducted within marketing department against the expected skills and competencies required for the product management project (Refer Figure -9.0)Figure9.0 Marketing Team Current Skill vs. Expected Skill for product management projectThe skills audit analysis (Refer Figure 9.0) against the marketing audit (Refer Appendix B- 14.0 ) indicates there are lack of gap overall skills, therefore there is a need for skills improvement from external or ingrained sources which needs to be acquired to close the current skill gap.The marketing audit analysis indicates present marketing teams resources are limited and the current structure is incapable of managing the proposed project (Refer Appendix B- 5.0). thereof it i s recommended to recruit a new project management team to implement the recommendation made for D-GSM.To overcome the skill requirement a project management team can be formed from a cross functional basis of appropriate staff who will have relevant skills and knowledge to implement the proposed recommendation as a team. Further D-GSM could acquire required skill and expertise resources from external environment.3.3 New Capability Resource required leave behind Training in Product portfolio managementMarketing team currently needs new skills in understanding the importance of organizational product portfolio management to achieve organizational objectives. By formulation the staff on portfolio management it will enable the marketing team to formulate effective product portfolio management strategies to cater dynamic market environment.Increase Financial Allocations for Portfolio ManagementTo have an efficient product portfolio management more financial resource is needed to cater new product development. The current budget quota is insufficient for product portfolio management and therefore to implement the identified recommendations and to gain new capabilities and other needed resources which needs sufficient financial allocation for product portfolio management.Training on customer relationship managementMarketing team is currently in need for training in customer relationship management. Currently in the highly competitive Sri Lankan telecom market relationship management with key customers, retailers and distributors are important to retain recurring business. By conducting such training D-GSM could retain customers to generate more revue for organization.3.4 How to Acquire New Capability and ResourceInternal DevelopmentInternal development refers to the changes that a firm undertakes by recombining its existing resources or developing new resources on its own (Capron and Mitchell, 2004). To acquire new capabilities at minimal cost marketing team along with human resource department could form an internal development team to provide key skill and mentoring to staff, this could be in the form ofKnowledge Sharing SessionInternal PresentationOne to One sessionHiring impertinent ConsultantExternal sourcing means trading in a strategic capability that stems from external sources (Capron and Mitchell, 2004).The hiring of a adviser will help D-GSM in gaining external/industrial expertise on product portfolio management and enable the marketing team to build new strategies to increase performance for Dialog Mobile-broadband product line.Training and DevelopmentD-GSM could evaluate the option of on-demand training and development to cater highly critical skill and capability needs to manage competitive product portfolio to the market. Further D-GSM could follow the proposed model shown in Figure 10.0 to plan training development.Figure 10.0 Training and Development processModel Adopted from (Moskowitz, 2008)The Benefit of Training and D evelopmentImproved motivation Individuals see their skills base extending and their promotion prospects being enhanced.Opportunities for self-improvement, leads to people staying longer in one employment.Higher levels of performance Trained and motivated staffs are more likely to give of their best which in the end justifies the training budget.Recommendation for accruing new resource and capabilityThe options discussed above to acquire new resources and capability to manage product portfolio for D-GSM is to hire external consultant to gain new ideas and industry expertise. Further hiring external consultant will help to reposition broadband product line effectively.Moreover, D-GSM needs to constantly identify new skill required for employers since marketing environment is dynamic and employees adapting to such changes instantly is important, therefor it is advisable to constant monitor required skill and plan to train and develop by external consultant.There is a high risk of ou tsourcing new resource and capability because it will create conflicts within internal employees and internal information could be considered as risk when outsourcing key resources from external environment3.6 Financial ConsiderationHerewith financial proposal is addressed for future budgeting exercise to acquire new capability and resource to implement effective product portfolio management.Table 1.0 Financial Consideration for new resource and capability management4.0 Project PlanIntroductionTo the priority of recommendations provided above in topic 2.5, following project will focus to reposition mobile-broadband product line targeting newly identified segment with differentiated marketing mix and finally position the product as affordable product for consumersProject InitiationThe following project is selected to increase the mobile-broadband. A stable project based approach is required. This therefore enables the management to monitor the manage performance, cost and time scale s. Fore reference purpose this project will be named as Project 3G.Project ObjectivesThe project objectives expected to be achieved by implementing project 3G are as followed,To successfully reposition Dialog Mobile-broadband product lineTo successfully create awareness to newly identified segmentsTo increase mobile-broadband trial among new segments targetedTo position the product to the new target segments using new differentiated value propositions within the period of six months.Project Scopeand creepThe project backdrop refers to the work that must be obliging to deliver the project objectives and successfully complete the project with quality, time and minimal cost (Hill, 2009). Project scope management will be used to make sure that project covers all the key tasks to deliver high efficiency of triple constraints 4 and focus of project.Further the management will resist and prevent scope creep as it will dent the achievement of triple constrains- budget, performance, and ti me as project creep could bring negative effects on the members (Kendrick, 2009). Therefore below matrix illustrates project boundary (Refer table 2.0).Table 2.0 Project Scope MatrixEvery project stakeholder must be educated to the highest degree project scope from deviating. If there are any changes to the scope a request should be made to the project manager for consideration (Pritchard, 2004).Project TeamThe project manager will be General Manager- marketing and sales. He/she is selected for because of leadership skills and previous experience in handling similar projects. The key persona of project manager is to manage the project team from initiation to evaluation stage, while leading and motivating the team towards achieving the objectives and clearly defining teams roles, responsibilities and performance, budget and time (Lock, 2007). The proposed project team structure is shown in Figure (9.0).The project team consists of seven members including staff from different depa rtment of Dialog GSM. This system will become a cross functional team for the project. Project Sponsor will be the Chief Financial Officer (CFO).According to Melton (2009), project sponsor is answerable for the delivery of the business case and to ensure that project is financially worthwhile. Project Managers and sponsors must work closely together to deliver the project and maintain control.External resources for the project team will be the outsourced marketing consultant and the advertising agencies key account manager for D-GSM for this Project. The consultant will guide the project team in implementing the project by providing training and in-depth guidance on product repositioning of Dialog Mobile-broadband.Furthermore, project manager will be responsible for driveway the project team to achieve the project objectives by delegating the project tasks, proper resource allocation for the project through possible mediums and finally responsible to deliver project report for ma nagement.Project Beginning and end datesProject 3G will span for a period of 6 months and will be employ from 1st of July 2011 till the 30th of December 2011.Project Key DeliverableKey deliverable of Project 3G could be highlighted in a work breakdown structure (WBS). The top of the WBS is the project itself. The next layer or level in the structure is work packages (Lock, 2007). WBS explains the key deliverables of the project in figure (10.0).Figure () Key deliverables for project 3GProjectMethodology