Strategic Marketing- July 2016 Membership number-40001907

Company Background
Organization name Dialog Axiata PLC
Type of Organization Public Limited Liability Company
Size of the organization Large organization
-Market Capitalization Rs.87.1 billion as at 30th September 2015
-Turn over Rs.53,891 million (9 months ended 30th September 2015)
-Shares in issue 8,143 778,405 as at 30th September 2015
-10,312,108 prepaid customers
-9,177,454 postpaid customers
-Total assets- LKR 112.179 billion
-No: of employees 4245
Range of products and services provided

Mobile
Personal
Television

Broadband
Dialog
Fixed lines
Business Global
Main competitors
Customer base
Market share People and businesses both engage in a digital era where digital services play a
major role in the current situation hence the following types of customer bases can
be seen in Dialog Axiata.
 B2B C2C G2C B2C
The Stakeholders of Dialog Axiata
Customers, Employees, community, Shareholders, Regulatory, Suppliers, Media,
Business partners
Structure of Dialog
This has a hybrid structure which is a combination of matrix and a modular
structure. It has many Strategic Business units which are systematically linked to
each other. Hence there is an efficient and effective communication network
Dialog Mobitel Airtel
which is in the form of top down and a bottom up.
Hutch Etisalat Source: www.slideshare.net

Coverage Map of Dialog Axiata Milestones of Dialog in 19th century

Dialog was incorporated in Sri Lanka under the name of MTN Network Private
limited in 1993. Dialog started up their operations in 1995. Postpaid mobile
service was initiated in 1995. Then the automatic international roaming also was
introduced in 1997. SMS service was came into action in 1998. In 1999 prepaid
service was introduced. This was introduced under the KIT brand name. These
were the key milestones of Dialog Axiata in 19th century. Later on over the last
decade also they came up with lot of innovations. Recently Dialog Ice pal which is
a digital watch with SOS emergency button and location tracking service. Other
than that Ultra 99 package, 1 for 1 plan, Lasy pay, Dialog virtual tour, World class
cloud computing, Touch corporate fuel card, Dialog 4G LTE are the latest
advancements to the product portfolio and the promotional techniques.BBG aka
Bay of Bengal gateway is the latest innovation which is the newest cable system
meets the continuous bandwidth among India, South East Asia and Middle East.
Main Sources: www.dialog.lk official website, infogr.am, Annual reports of
Dialog Axiata 2013 and 2014, Sustainability report of Dialog 2014
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 Strategic Marketing- July 2016 Membership number-40001907
SWOT analysis
Strengths
Opportunities
 Strong infrastructure enables Dialog for wider network coverage
 Over 2000 2G and 1000 3G base station sites distributed over 9  Higher growth in telecommunication sector in Sri Lanka
provinces  Increased use of Smartphone and communication devices
 Country’s land mass coverage – Approximately 84% and  Demand for more value added services
 Country’s population coverage - Approximately 97%  More opportunities for innovation
 Pioneer in introducing GSM technology to Sri Lanka  More opportunity to cater broadband market as internet penetration
 Driven with innovations (4G LTE, cloud cumulus, Ez cash) is still low in Sri Lanka
 Strong public relationships and brand loyalty built over the past  More room for acquisitions(Dialog acquiring Suntel)
decade
 Uncontested marketing strategies Threats
 Global reach through international collaborations (Dialog  Volatility of technology
Roaming)- 211 destinations
 laws and regulations
 Large customer base consisting of 8,714,005 users as at 31st
 Higher levels of competition
December 2013
 Great emphasis on CSR activities  Changing customer preferences
 Strong distribution channels spread across the country  High real inflation
 Strong financial position  Competitors coming up with cost leadership strategies
 Well experienced management team  Sri Lanka Telecom introducing new internet packages with high data
 Launching Dialog branded mobile phones at a reasonable price usage amounts(GBs) for very low prices
 Very loyal base of employees over a long period of time  Competitors adapting to changes speedily
Weaknesses  Mobitel introducing roaming packages
 Slow service in some areas and regions  Mobitel introducing M-cash service to compete with Dialog Easy
 Some customer care center employees lack knowledge Cash service
 Less innovations considering pricing strategy when compared with Etisalat’s effort on acquiring Bharati Airtel Sri Lanka will make
competitors Etisalat the second largest telecommunication service provider in Sri
 Less competitive and attractive broadband packages Lanka Bringing extensive level of Competition to Dialog Axiata PLC
 Relative high prices on IDD calls and roaming packages
 Flop on Dialog CDMA

Marketing assets of Dialog Axiata PLC and How it contributes or prevents to competitive advantage
Brand equity The value of the brand name reported by Dialog in 2008 was Rs.12.4 billion. According to the Dialog personnel it’s the customer
who builds up the brand name. Dialog is a brand which commands higher awareness and consumer loyalty.

Corporate Dialog is a telecommunication company which has been already awarded with large number of awards for their excellence in the
reputation current market including SLIM brands excellence awards for being the best service provider.
Special agreements It has built up special alliances with the OOredo uwait, Vodafone Quatar, Friendi Oman and Jordan to provide service at a lower
and alliances cost.
Customer loyalty They provide the customers with the most attractive low cost services which always assist them to enhance their customer
relationships.Their customer base is as huge as 10.312 million subscribers and commands 50% of Sri lanakan mobile market.

Key stakeholder Dialog has properly identified that it is their capability to cater the volatile needs of stakeholders which keep their business a
relationships sustainable one. Hence structured system for stakeholer engagement as well as needed information also have been provided then
and there.
Photo and video The dialog website nad many other social media accounts such as twitter, face book and you tube consists of vast amount of
stockpiles photos and video clips which enhances the awareness of their products to the potential customers and investors.

Marketing This company owns a huge amount of data regarding their competitors, customers, Products and markets. Many articles including
intelligence these informaton can be found in the internet.Thus they have a sound knowlede about all these aspects which lead them to easily
figure out market oportunities and make better decisions
Strong management The company owns a very experienced and a qualified set of loyal management team who have givn their contribution to uplift the
team company status over this period of time.
Unique selling prepositions of Dialog
Offering lower prices As a sample to demonstrate the price levels, the prepaid SMS charges of the competitors were taken into consideration.
Dialog, Mobitel and Etisalat charges 20 cents whereas Airtel and Hutch charges 25 cents.
Higher service quality and value Dialog offers a very high quality service to its customers by observing the subtle customer behavioral changes and
added services being closer to the customer. Not only Dialog except Airtel all the other competitors in the industry provides a wide
range of value added service to customers including entertainment, M health, M banking, M insurances…etc. The
specialty of Dialog is it has provided value added service for every product.
Offering better online customer Out of all the market competitors Dialog has the most sophisticated online customer support service with the highest
service level of clarity. The other online customer service systems are complicated for the general customers.
Wide amount of choices Mobitel, Etisalat and Dialog has the highest level of product and service diversification with wide amount of choices.
Comparatively Airtel and Hutch has a limited product portfolio.
Better guarantee Dialog and Mobitel offers the longest period of guarantee to its customers compared to the other competitors.
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 Strategic Marketing- July 2016 Membership number-40001907
Micro environment analysis (Porter’s 5 Forces theory)
Threat of new The TRCSL terms and regulations is a barrier for new entrants to enter into the market because the granting the license is a complicated
entrants process.
Threat from Substitute are minimal especially for mobile phony since Fixed and CDMA are the only substitutes.
substitutes
Bargaining power Telecommunication is an oligopolistic market hence the bargaining power of customers is low due to less availability of substitutes.
of customers But customers always can switch to the limitedly available brands.
Bargaining power Dialog has a supplier base of local as well as international suppliers. Dialog bought MTT Networks to access the national backbone
of suppliers network so they don’t have to significantly depend on SLT who has direct access to national backbone network

Rivalries among Rivalry is very high since every competitor strives to introduce new pricing strategies, spread the network coverage and continuous
competing firms innovations and value added service such as e-channeling, Ez cash, Mobile banking…etc
Macro environment analysis (PESTEEL)
Political Currently Sri Lanka has an unstable government which has created difficulties to all the investors as a whole. But the foreign investment
have been strengthened which will be beneficial for dialog
Economic Increase in per capita income would have been a major reason for the increased demand to Dialog services
Social Higher literacy rate in Sri Lanka would positively contribute towards increase in demand for services of Dialog as people prefer
communicating and knowledge sharing. Mobile phones are becoming a necessity in changing socio cultural environment especially among
youngsters with the increase of technological know how
Technology Accelerated pace of technological change has enabled Dialog to provide various values added services
Ecological Dialog needs to take in to account sound, air pollution, energy crisis and scarcity of natural resources in relation to Natural Environment
Legal It is the law in Sri Lanka to acquire licenses issued by the telecommunications authority (TRCSL) when providing various
telecommunication services in Sri Lankan market. Thus adhering to strict rules and regulations and to be abided by the law in increasing
governances would restrict Dialog in service provisions
Stakeholder analysis (Mend low’s Matrix) Customer analysis
Power
Factors such as age, occupation, economic situation,
High Low
lifestyle, personality etc will affect the buying decision. Best
Key players Keep Informed example would be, young people will buy a SIM card to use
Customers Regulatory
Employees Suppliers every feature of it such as calls, messages, internet etc. But
Shareholders Business partners old people will buy a SIM only to make calls. Groups, social
High

Board of directors Media networks, family, roles and status carry a significant
Senior management influence on customer’s buyer behavior. In Sri Lankan
Keep satisfied Minimal effort
Community Interns
context if a customer is within a friend group which majority
Government Public of friends or all of them uses a particular telecommunication
Interest

Manual workers Pressure groups provider, then the customer also will tend to select the same
Low

provider. It’s the same case with the family.

Competitor analysis
Financial power -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2
Staying power -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2
Strong R & D -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2
Technological Breadth -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2
Quick response ability -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2
European marketing -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2 -2 -1 0 1 2
Customer relationship management
CRM metrics Description
Customer satisfaction measures Annual customer survey is carried out to identify the satisfaction levels of the customers. Call center calls are
followed up with simple questions to measure the satisfaction.
Net promoter score The group deliver function is cautious about delivering better customer experience which has enhanced the net
promoter score.
Survey results Survey results has proven that customers have problems in the areas of security, privacy protection, service
standards, clarity in market communication, protection of minors and health and safety. Thus work to optimize
the faithfulness on customer hearts minimizing the bad impact.
Customer retention and churn Introducing discount offers, Dialog self-care application, #147# unified USSD self-service portal, Dialog shops
with extended hours of service delivery
Cross selling ratio Dialog has a higher cross selling ratio because they have well identified customer needs and wants and the
products have been developed to cater into their wants.
Customer profitability The implementation of Oracle’s Siebel campaign management module at Dialog Axiata by Millennium IT with
the collaboration of Sakonet USA enables to engage with customers better than earlier and to come up with
personalized products which assists enhancing profitability
Customer life time value Dialog serves as a benchmark for customer care as it operates with Global standards. Thus there is high potential
CLV

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 Strategic Marketing- July 2016 Membership number-40001907
Cultural web
Rituals and Dialog works on an 8 hour standard working hour basis but based on the level of work certain staff members are supposed work
routines overtime. Meetings are held when there’s an emergency or else they have well scheduled timelines for meetings. The stakeholder
engagement activities are organized in an orderly manner which gives each and every stakeholder to discuss their objectives and
make clarifications whenever they want
Control systems The management of Dialog has a higher level of responsibility regarding the internal control systems of the organization where they
are required to precisely carry out all the subject matters free from frauds errors or misstatements. The company has a centralized
system regarding each and every function
Organizational Dialog Axiata has a widely spread organization structure. Under the CEO there are 5 directors. Mainly there are 8 divisions which
structures are accountable to the board of directors.
Power structure The organization practices more of a participative approach to exercise power. Because there is a lower level of power distance
among the senior management and the employees. They share a very friendly relationship which has made the work of the
employees flexible
Symbols Equality is a special feature of Dialog. Even though the structures are formal the atmosphere of the organization is peaceful. In
certain divisions the employees address their managers in their name itself and in certain cases the bottom level staff renders higher
level of respect to the senior management. He attire is formal and there is special tag designed for the employees to ensure their
identity
Stories Dialog was listed in the Colombo stock exchange in 2005.Dialog was the first to launch 3G network and HSPA+ in southern Asia. It
is the first to provide connection to the Jaffna peninsula. Dialog and BOI signed for a LKR 24.6 billion agreement recently and
recently it won the global award for the best customer serving network.
The Paradigm This Company is based on mainly the service from the heart, create the future, Champions of change, exceptional performance,
uncompromising integrity, responsible leadership and one team set of values.
Core competencies
High quality Human resource Technology and innovation Brand equity Governance and internal controls
According to the dialog prospectus The slogan of Dialog Axiata is Dialog has a very strong Dialog make it a point to always
the main point of differentiation and Future today. It always keeps on brand value. As per the maintain very strict internal control
uniqueness lies in its strong human doing innovations. They come up LMD business magazine mechanisms and they always get the
resource base. Since 2000 they have with new services and products to Dialog is at the third place influence of the international
been constantly maintaining a 97% the market. This makes them special among the most valued governance practices. Their attention to
employee retention ratio. The among the rest of the brands with a value of LKR the underprivileged people,
dynamic workforce always make compettors.Touch fuel cards, 28659 million. Their conservation of energy environment,
them different as they are capable of Cumulus cloud computing, Dialog objective is to push it to the and sustainable power consumption
adapting to the changes in the market Biz connect, The 1 for 1 plan and first place. The company makes them market leaders in the
even in an aggressive atmosphere. ultra 99 package are only few out of heavily invests on the brand industry.
The main reason for this is the hundreds of innovations. equity building efforts.
employees are selected based on their
level of performance.
Value chain
Infrastructure= The rapid success behind Dialog Axiata depends on its advanced infrastructure availability to support each and every element in the
value chain.
Support Activities

Human Resource Management= Dialog HR strategy focusses more on innovations and customers. The HR management team of Dialog always
make it a point to fill the staff gaps and extensive training programs have been designed to ensure the skills of the employees.
Technology Development=This organization has heavily invested in advanced technology and it always assist them to reach success very easily.
In terms of a telecommunication company it is essential to develop latest technology to protect the market position while optimizing the returns.
Procurement = The procurement procedure of Dialog is efficient because they have very strong controls over the inventory management and supply
chain management process. The long term trusted relationships with suppliers has made this even more effective.
Inbound Logistics operational outbound Marketing and sales Services
In achieving the The keen The long term Dialog is blessed with a very skillful sales and It has a 24*7 customer care
corporate objectives, inspection alliances and marketing team who handles every situation unit as well as an online
Primary

processes carried
the divisions are affairs built up tactfully. It serves both B2B and B2C support system to resolve the
out ensure smooth
supported through with third parties, customers. The marketing objectives set at the customer issues. The latest
Activities

functioning of
better inbound operations. ensure effective beginning are achieved systematically in a development is the portal
management and outbound logistic. given period. available for customers to
coordination. mutually help each other.
Brand development
Dialog brand indicates the strong The next thing is identifying the Then Dialog has to identify the The last step is communicating
connectivity influenced with the target market for the brand yet to be different factors which will their brand to the customers via
advanced technology. Motivated developed. Dialog always addresses influence the customers to different types of Medias. Dialog
employees, concern for customer, a specific customer segment. Their purchase the newly developed is a well-established company with
advanced technology infrastructure brand development process is brand based on the different traits a large market capitalization.
and quality service are their core improved on this base. Whichever the of them. They carry out surveys to Hence promoting a brand is not a
competencies. Whichever the brand brand they develop, Dialog make it a figure out that special feature difficult deal for them since they
they develop Dialog make it a point point to target only a specific which draws the attention of already have a strong brand equity
to include these features in their customer segment. different customer groups to buy and their financial status is very
brands the new brand stable.

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 Strategic Marketing- July 2016 Membership number-40001907
A justified conclusion on how marketing assets contributes or prevents competitive advantage of Dialog axiata.
Brand equity Dialog has been recognized as an influential brand. The Loyal customer base considers Dialog brand as an identity of attribute, use,
benefit, value and to demonstrate ones status. The Brand Name is registered. The value of the brand name reported by Dialog in 2008
was Rs.12.4 billion. According to the Dialog personnel it is the customer who builds up the brand name. Dialog is a brand which
commands higher awareness and consumer loyalty. Their competitive capability has been increased significantly because of the strong
brand equity. The customers have a great deal of faith towards the company because of this. Dialog brand has been also voted Sri Lanka's
Peoples Awards for the most preferred telecommunications brand further Sri Lanka's most valuable brand of the year by Brand Finance.
Corporate Dialog Axiata is a subsidiary company of Axiata group of Malaysia. In the field of internet provision also it plays the leader’s role. It is
reputation the first in the region who supported with high speed packet based mobile data service with the launch of GPRS technology since 2001.
Dialog pioneered 3G technology and MMS in 2002.Mobile banking, mobile email, information on demand service, interactive short
messaging services were some of the new developments since its establishment. Dialog has taken up and initiated a wide variety of
community development programs which have assisted them to enhance their corporate reputation. Giving sponsorships to the national
events, helping the speech and hearing impaired people and disabled ones. Dialog has been recognized with no of awards to mark its
successful performance.
Special The latest agreement they entered into was with the BOI. Dialog is the largest foreign direct investor operating under the aegis of
agreements and Board of Investment Sri Lanka. It entered into an agreement of LKR 24.6 billion. This is basically for the purpose of developing ICT
alliances infrastructure for the sri Lankan economy. And also this will be utilized to further develop the fiber optic transmission network,
international telecommunication network and digital satellite infrastructure. Dialog targets towards expansion of its digital service
portfolio spanning ventures and initiatives in digital payment commerce education and health. Dialog has entered into many such
agreements which makes them the market leader in the telecommunication industry.
Customer The value of the brand name reported by Dialog in 2008 was Rs.12.4 billion. According to the Dialog personnel it is the customer who
loyalty builds up the brand name. Dialog is a brand which commands higher awareness and consumer loyalty. Dialog has launched various sales
promotional programs such as special packages, loyalty point systems, billing and rates systems, value added services etc.
Some of these facilities include long term benefits rather short term benefits. Dialog lord of the reload, nexus points, easy cash, club
vision are some of the programs initiated to enhance the loyal base of customers. Thus the customers are very loyal to the organization
Key Company always look into the needs and wants of the stakeholders. They try their level best to figure out the problems faced by the
stakeholder interested parties. For each and every stakeholder category they have arranged a form of engaging with them and how to ensure
relationships sustainable relationship identifying the issues and coming up with long existent solutions. On the other hand they have specifically
figured out the frequency of engaging with stakeholder affairs. Due to all these formalities they have got a strong set of stakeholders
which facilitates them to enhance their competitive advantage.
Photos and The dialog Axiata website has been developed in a manner such that the user can easily understand the services provided by the
video company. Not only that the magazine which is published monthly also consist of many photos which is capable of attracting the clients.
stockpiles The website is more efficient since it gives a clear guide and it is user friendly to everyone.
Market Dialog is company which has short history but has a very sound level of market intelligence. Their staff is recruited based on the
intelligence performance. And they have taken steps to be alert about the market place as well as space using different tactics. Therefore the level
of information they own is comparatively higher to that of other competitors in the market.
Strong Most of them are well experienced professionals in the industry over a long period of time and the most specific feature of them is their
management capability to adapt to the volatile market conditions while inventing new products and services.
Corporate reputation management Rep Trak framework
Dimensions Description Supportive Description
of behavior
reputation
Products and High quality of the product portfolio, the uniqueness in value Purchase Dialog is the undisputed market leader because the
service added services has enhanced the corporate reputation of consumers tend to purchase Dialog products due to the
Dialog. Roaming facilities across more than 200 countries. quality aspect as well as low prices and uncontested
Dialog TV has the special feature of Direct to home satellite customer service. The transparency, accountability,
TV service. It provides the television experience to the viewers professionalism, consistency, flexibility and their
both in the forms of SD and HD. Mobile money service also genuine behavior has thrived them to manage the
was first introduced by Dialog corporate reputation over the past few years
Innovations Dialog frequently innovates products coupled with strong Recommen The customers are willing to recommend company to
promotion campaigns.EG: First to provide South Asia region d others simply because Dialog exercises all their values
with 4G-FDLTE facility in 2013 and 3G network in 2006. Bay from the depth of it
of Bengal new gateway a new cable system meets a vast
bandwidth growth of Middle east, India and South east Asia
Workplace As an intern of Dialog I can guarantee about the working Crisis proof Dialog’s one other great assets is their customer service
conditions of Dialog which facilitates the employees with which stick into customer issues and address them then
utmost freedom, financial as well as non-financial benefits and there.
Governance Dialog is an ethical entity with fair business practices. Mobile Verbal There is a great trust towards the company which drives
payment license was rendered to Dialog by CBSL support its performance.
Citizenship The entity is very environmental friendly and they maintain a Invest Potential investors are waiting to invest in this company
separate sustainability report to record its sustainability efforts. and if the CSE figures are concerned Dialog has a higher
ISO 9001 certificate and rated as number one corporate market capitalization and a higher share price.
accountability company. Sponsors Sri Lankan cricket team.
Leadership Strong management team is a great asset for Dialog they can Work The job market in Sri Lanka has a very high demand to
understand the exact customer requirements and addresses real obtain the jobs in Dialog it is visible from the number of
issues of customers. applications received even for trainings.
Performance Dialog has proven its financial as well as nonfinancial progress
through a wide range of awards and exceptional financial
performance over the past decade
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 Strategic Marketing- July 2016 Membership number-40001907
Vision Mission Values
“To be the undisputed leader "To lead in the provision of technology enabled connectivity touching  Service from the heart
in the provision of multi- multiple human sensors and faculties, through committed adherence to  Create the future
sensory connectivity customer driven, responsive and flexible business processes, and  Champions of change
resulting always, in the through the delivery of quality service and leading edge technology  Exceptional performance
empowerment and unparalleled by any other, spurred by an empowered set of dedicated  Uncompromising integrity
enrichment of Sri Lankan individuals who are driven by an irrepressible desire to work as one  Responsible leadership
Lives and Enterprises.” towards a common goal in the truest sense of team spirit." Source:  One team Source: www.dialog.lk
Source: www.dialog.lk www.dialog.lk
Objectives
Financial objectives Marketing objectives
 Boost annual returns on investment or EVA  Increase sales of existing products by 10% and launch new services to enhance the
from 15% to 20% market share by 5%
 Increase the Return on capital employment and  Decrease price of Dialog fixed line by 2%
return on equity by 15%  Advertising campaign expenses increase by 2% to promote lesser brand equity
 Increase earnings per share by 5% products and to enhance customer loyalty
 Increase the net profit and gross profit margin  Increase the excellent customer ratings each month
by 10%  Reduce the distribution expenses by 6%
 Target at least 10-15 investment agreements  Improve the brand equity among all the bases of customers about Dialog Global
annually with third parties  Grow average return on sales by 25%
Key issues (Adapted from Sustainability report) Source: www.dialog.lk
Creating value Delivering value Preserving value
1 Offering applicable products and services Stability and profitability Confidentiality of customer information
2 Affordability Employee development Following best practices
3 Network Quality Managing environmental impacts
4 Compliances with codes, polices and regulations
5 Health and safety
Segmentation
Individual customers Corporate customers
Platinum Gold Silver Bronze Large Emerging Global
Geographic
Density Urban Urban Urban Suburban/Rural Urban Urban/Suburban Urban
Demographic
Age Young/Adult Young/Adult Adult/ Teens Senior citizen Adult/Young Senior / Young Young/Adult
Family size Large Large/Nuclear Nuclear Small - - -
Income >100,000 80,000-100,000 50,000-80,000 <50,000 <100,000 20,000-100,000 <100,000
Occupation Professionals Professional/Prop Academic/Prof Student/House - - -
rietors essionals wives/Laborers
Psychographics
Social class High class High and middle Middle Middle, lower Mass Emerging Mass market
Behavioral
Loyalty status High High High/Medium Medium/Low High Medium/low High
Benefit sought Prestige/Bette Better service Convenience/C Convenience Convenience Convenience/Che Reachability and
r service onnectivity ap strong connectivity
Readiness stage Aware Interested/Aware Interested Intending to buy Aware Intending to buy Unaware/Aware
Targeting
The above segmentation demonstrates the fact that Dialog serves a variety of product to different customer segments. Under each and every product they
serve, Dialog has customized their product portfolio based on customer segment. Thus it’d be concluded that Dialog follows differentiation
Positioning Price
 Perceptual map
 Gap analysis H
 Repositioning map Gap 1 Dialog Gap 2
fixed
line

L M H
Dialog
mobile
Brand
Gap 3 Gap 4 equity
Dialog
global 6
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 Strategic Marketing- July 2016 Membership number-40001907
Branding Strategy of Dialog
Brand extension The product they launch, is named along with their brand name. This also demonstrates the example of naming
individual product along with company trade name. E.g.: Dialog mobile, Dialog broad band services, Dialog TV
Company trade name combined Dialog use this basically for the high tech products manufactured by them. E.G: Dialog ice pal, Dialog infinity,
with individual brand name Dialog win pad, Dialog tab 3
Managing distributors and supply chain
 Direct marketing channels= Customer relationship manager, Staff, Direct sales team and website
 Indirect marketing channels= Distribution of recharge cards and Dialog SIMS and Dongles
Types of Distribution Distribution strategy
 Retailers= 4381 registered  Multichannel Distribution system= Direct distribution to SMEs and large business enterprise and indirect
retailers over 26 districts, distribution to retail and domestic customers
More than 35,000 retailers  Selective distribution= Dialog concerns about working environment, the hours of work, remuneration,
give their intermediation in level of freedom, discrimination, child labor issues into consideration. There is special supplier code of
distribution process. conduct to be followed by the Dialog suppliers.
 Franchises= Abans Dialog has taken certain initiatives to uplift the life standards of retailers by launching Vyapara Diriya programs.
Porter’s generic strategies Differentiation
Competitive advantage This strategy also is practiced in Dialog because it always sets their market
Lower cost Differentiation price and they carry on different researches which enable them to always come
up with innovative solutions. They always come up with value added services
Cost leadership Differentiation such as customer care, GPRS solutions, and highest data speeds, 3G and 4 G
Broad targets Stuck network facilities. They always come up with different new products, services
and campaigns to make the lives of the customer convenient in comparison to
in the
Market scope the other market players. Not only that but also opening up new outlets in the
middleDifferentiation post war regions, and identifying new markets are special features which
Cost focus
Narrow focus demonstrates their differentiation strategy.
Cost leadership
Ansoff metrics Dialog serves a very broad market and some of their strategies are based on
Products cost leadership. Dialog mobile, Dialog Tv and Dialog Global demonstrates this
Existing New strategy.

Market Product Product development

Existing This is about providing new products to the existing market. This also is
penetration development practiced in Dialog because they come up with a variety of new products to
Markets their existing customers every year ez cash, e channeling, dialog 4G,
Market Diversification Increasing data capacity, increasing the talking time and the broadband
New development speed.
Diversification and market development strategies are also being used in very
small scale. When they introduce new products such as HSPA wireless
Market penetration internet connection they expect new customers as well. By doing so they can
The focus of this strategy is to promote existing products in the attract new markets which facilitates them to provide their existing products
existing markets. This is used in Dialog’s context because the to those new markets.
existing products are promoted in a wider manner among a large base
of subscribers as the competition in the industry is getting aggressive.
They use special promotion campaigns and advertisements to
accomplish this. Blue ocean strategy and four actions frame work

V
a 0 Very low
6
l 5
4 1 Low
u 3
2 2 Lower moderate
e 1
0
f 3 Moderate
o 4 Highly moderate
c
5 High
u
Dialog Other competitors 6 Very high
s B l u e o c e a n s t r a t e g y c a n va s s
Reduce Call drop rates, power consumption, fuel usage, employing full time generators, postal delays of payment slips, material usage, lead time for
customers
Create Shared value for stakeholders, new electronic payment systems, High performing teams, systems to help hearing and speech impaired
Raise Energy saving, E bill payments, concern for stakeholder issues, concern for sustainability, strong protection for employees
Eliminate Paper usage, network problems, customer complaints
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 Strategic Marketing- July 2016 Membership number-40001907
7S’s
Strategy Dialog GSM has well planned is strategy to position them self as market leader in Sri Lanka, quick geographic expansion, dedicated R&D
team towards delivering new technologies and specific key alliance have been key strategies of Dialog GSM
Shared Dialog GSM has been successful in terms of focusing the entire organization towards a single vision by incorporating all individuals goals and
Value objective together , Also Dialog emphasis more on shared value within the organizational culture,
The core values are
* Customer delight - A commitment to exceed customer expectation
* Leadership by example - Commitment towards setting standers in business and transaction & be an example for the industry and teams
* Pursuit of Excellence - A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to
become the best
Style Management style of Dialog GSM always depends on targets & objectives. Organizational activities are monitored on strict deadlines while
organizational performance, quality of service, progress is monitored constantly at all functional levels within the organization
Staff incentive & staff benefit scheme are implemented to motivate & produce high performance based staff environment.
Dialog GSM also emphasis on recreational activities such as Office trips, get-together, sports day…etc to take staff some time out from the
busy working schedules & a Casual wear for work on Fridays
Staff Dialog GSM currently employs staff workforce of 4000 who is considered important to the Dialog GSM organization's growth and success.
Annual human resource planning and staff recruitment is carried out in parallel to the organizational business plan. New staffs are recruited
requirements of the business plans applicable & respective needs of functional departments within the organization. Ten percent (10%) of the
total HR cost is allocated to staff training & development. The training needs for staff and teams are identified from the competency
requirements arising from the employee's skills gap, annual performance review/quarterly appraisals
Skills Dialog GSM team consists of number of individuals with different distinctive capabilities and competences from top to bottom. Dialog GSM
is proud to be served by a talented team of high caliber individual in the Sri Lankan Industry with lot of talent and exposures which will help
achieve the organizational goals
Systems Dialog GSM has implemented several systems to execute their business & operational strategies successfully. Example;
* SAP ERP (Enterprise Resource Planning) - SAP ERP application integrates all the inter functionalities within the organization and manages
the work flow process
* Subscriber Billing system - Currently customer billing system is deployed towards updating customer on their bill statement
* Customer Support System - CSS is used to rectify and response in time to the customers concern , the investment of such system was crucial
for Dialog GSM to deliver a timely based customer services
* Dialog Intranet - Web based intranet is developed for organization news update, document collaboration and other HR aspects integrated to
the Intranet
Structure * Dialog GSM business operations are managed under the supervision of the executive director. Everyone is known as associates irrespective
of his position in the company, this has made flexibility for everyone to have equal chance among every staff to grow with the organization
7 P’s
People Dialog has trained its staff with proper guidance in serving customers and their recruitment policies are flexible yet concerned about the skills
of the staff. Thus the staff always make it a point to be friendly to customers in resolving issues.
Processes The service provision processes are transparent and the waiting times are very less with higher quality processes.
Physical As earlier mentioned being a Dialog employee the company premise is very tidy, spacious, attractive, user friendly with strict security
evidence controls.
Product Products and services of Dialog are very famous among customers. But Dialog always make it a point to reach the international level by
seeking the latest technologies. Heavily invests on research and development.
Place Dialog uses the most effective channels of distribution for its distribution processes.
Price Dialog has fair price for most of its products but due to the rigorous competition the competitors may outperform. Thus the customers’
expectations should be matched and prices should be reduced in certain products like Dialog fixed and broadband services
Promotion Marketing division is equipped with the world’s best technology and the skillful designers. Hence they have creative promotional campaigns
Budgets
Action (LKR MN) 2017 2018 2019 Rationale
1 Comprehensive market research on 1.5 1.8 2 To analyze about already possessed and future viability of acquiring marketing assets
marketing assets
2 Introducing a Marketing - 1.8 - MKIS is a very important tool to take better marketing decisions and this tool is very
information system hardly used in many Sri Lankan organization which will enable Dialog to capture
competitive advantage
3 Brand enhancing initiatives 1 1.2 1.5 Dialog brand is very powerful in Sri Lanka. But as per http://lmd.lk/brands-annual/ the
brand rank has come down from 3 to 4. Thus brand enhancing should be taken serious
4 Training and development 0.6 0.8 1 This is essential since the entire organizations success depends on the expertise of the
senior management and other staff members.
5 Research and development 0.5 0.6 0.9 Research should be carried out on new product innovations. Or else there are many
advancements Dialog can introduce as an organization
6 Customer loyalty focused 1 1.2 1.4 Even though the loyalty scheme Club vision is there in progress it needs more
promotions developments and other offers to ensure genuine loyalty of customer
7 Digital events targeting the key 0.08 0.1 0.15 It is essential to maintain a strong relationship with stakeholders thus even its
stakeholders incapable physically ,digital media should be tried out(webinars, virtual events)
8 CSR activities 2 2.2 2.5 Dialog maintains a separate sustainability report. Company’s corporate reputation
depends on these activities.
9 Content marketing 0.4 0.6 0.7 The content is very important to take strong strategic decisions.
10 Social media investments 0.3 0.5 0.7 Social media information are very critical to understand customer behavior and
changes in it. Hence higher concern should be given
Total 7.38 10.8 10.85 29.03 will be the total budget figure for Dialog
8
 Strategic Marketing- July 2016 Membership number-40001907
CSFS
CSF Description
1 Brilliant understanding on customer Customers are the most important to any business organization and so as to Dialog. They have identified the
expectations real needs and expectations of the customers over the past through their extensive research and customer
handling programs.
2 Creative idea generations procedures Dialog has a team of very creative staff who come up with lucrative and new business ideas to Dialog which
has enabled the company to reach its success
3 Customer friendly service When a customer enters into any of the Dialog offices the customer is served with the best of their hospitality
4 Well experienced management team The senior management team of Dialog is unique in comparison to other organizations. It has foreigners as well
as native people with many years of experience.
5 Independent working environment As an employee worked in Dialog I can assure the fact that Dialog has a very independent working
environment which has led to higher level of efficiency and effectiveness
6 Strong distribution network The distribution channels are very strong because there are Dialog outlets in many urban cities
7 Unique technological systems and This company exercises the best and the most advanced technology and IS tools. They upgrade their systems in
IS strategies a manner which matches the contemporary needs of the society.
Metrics and measures
Metrics Measures Deming
1 Profitability  Net profit Dialog usually works according to this
 Operational profit
 Return on capital employed
concept. The best example is the latest
 Return on investment invoicing scheme called Megatron which
2 Customer  Customer life time value implemented through the Plan, do, check, act
 Customer retention rate basis
 Customer loyalty rate
Kaizan
 Net promoter score
3 Sales force and  Sales force effectiveness Kaizan demonstrates incremental continuous
management  Sales goals improvement. Their major approach of
 Out of stock working in all the divisions is this concept.
4 Promotion  Baseline sales They take incremental steps but once in a
 Pass through
 Percent sales
while big bang approach also can be seen.
5 Digital  Bounce rate TQM
 Abandonment rate TQM is rigorously practiced in the
 Cost per click organization during their working hours as
 Friends/Followers/supporters
well as in their products and services since it
6 Innovation  Number of ideas generated by an employee
 Number of ides implemented per year directly affects the brand equity and
 reputation.
Incremental revenue generated from the innovative idea
implementation Benchmarking
 Average cost of implementation
Dialog carries out benchmarking practices to
enhance their processes, performance, strategies, policies, product developments, customer care and cost control to
that of the main competitors like Mobitel, Hutch and Airtel.
Operational measures for marketing and KPIs
Perspective Objective KPI Target
Financial 1. Increase profitability PBIT +10% annually
2. Increase revenue Sales revenue +15% annually
3. Increase marketing investment ROMI +5% Bi annually
4. Manage operating costs Operating profits + 20% annually
Customer 1. Acquire customers No of new customers acquired + 350 Quarterly
2. Increase customer loyalty Customer life time value + 15% annually
3. Reduce customer churn Churn rate -10% annually
4. Delight the customer Customer reviews + positive reviews monthly
Internal 1. Acquire and develop more marketing assets Brand rating + brand position by 2 ranks annually
business 2. Spread the service excellence all around the Mystery shopping, replenishment + 10% annually
process country rates
3. Engage in CSR activities increase No of CSR initiatives implemented + 10 CSR activities quarterly
Learning 1. Training and development No of trainings 2 trainings per annum
and growth 2. Employee motivation Absenteeism rates -5% annually
3. Reduce employee turnover Turnover rates -7% annually
4. Increase employee engagement in idea Performance evaluation + four ideas per year and two
generation Number of employee ideas performance evaluation sessions per
implemented per year annum