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Marketing Paper for Value Brands

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Marketing Paper For Value Brands

REPUBLIKA NG TM: ASTIG TAYO DITO!

Touch Mobile or TM is one of the cellular service brands of the second largest telecommunications company in the Philippines, Globe Telecom, Inc. Positioned as the champion brand for value seekers in the country, it was triumphant in gaining recognition as the first-mover in providing the most affordable, hence lowest priced call and text promo offers. It was also the first brand that paved way for popularity of bucket promos that include all network texts and voice calls allowing TM subscribers to connect to other local sim users. Currently with around 11 million subscribers, TM has a meager 15% share in total prepaid mobile market ranked as the 4th key player in the industry.

Sinong Pinaka-ASTIG? : Introduction to the Environment of TM

“Hyper-competitive” has been the superlative tagged to Telecommunications (Telco) Industry in the past few years as evident in the continuous exponential upsurge of telco subscribers clamoring for better, to say the least, value for their communications enabler day after day. Dubbed as the “Texting Capital of Asia”, the Philippines has posted around 75 million phone subscribers processing an average daily texting rate at 1.39 billion SMS messages per day. This consumer behavior has been the concrete evidence that fuelled steady growth, even during the height of 2008 recession, of three dominant players in the Philippine telecommunications industry -- Smart Telecom (a wholly owned subsidiary of PLDT Co.), Globe Telecom and Sun Cellular, Inc. (a wholly owned subsidiary of Digitel).

The nature of the industry in which TM operates is discussed in the following Porter’s Five Forces Model.
Buyer Power
• Mobile subscribers have high bargaining power.
• They can easily influence players to force down prices (e.g. lower bucket offers, unlimited voice/SMS

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