if you are in the US, for sure you have heard of magicJack, it's heavily advertised and widely available in the supermarkets. magicJack is a VOIP telephone service where you connect this magicJack gadget into your computer USB and then connect your telephone to the mahicJack. the driver will load and you are ready to call anyone in the US and canada for free.
well, not entirely free but almost free - the magicJack costs $39.95 for the first year, included shipping and for succeeding years you pay $19.95 per year. you can make all the calls you want, in the philippine context you can make unlimited calls to any number in the US and Canada at no cost.
the good news - this works in the philippines, too!we have been using the magicJack in the philippines to call folks in the US on a regular basis. it's used often - an hour or so almost every day and it works just fine. the voice quality is very clear. at times it gets garbled and with an echo but it rarely happens. if that happens, just hang up and call again. it's recommended that no other computer uses the DSL connection when you are using the magicJack as there is at times some interference.
these are really very minor problems. the amount of hours we have been spending using the magicJack to call the US is very much worth the annual fee and the occasional problems.
the magicJack is actually available locally. there is a local company that sells the unit but it is not worth buying from them as it is more than double the cost of getting it from the US while the annual fee is more than triple the cost in the US.
what is the go around on this horrendous local cost? ask your friends and relatives from the US to buy the magicJack in the US and ask them to have the unit shipped to you in the philippines. once it arrives to your philippine home by courier, you can immediately use it. of course your friend in the US will need to shoulder the initial cost of it. you will probably need a credit card to continue the service after the first year.
a marketing note : the local company selling the magicJack in the philippines unfortunately is just like many other local companies in the philippines - they are terribly profit hungry. just like many other local companies that engage in services or products from the US, this company is too greedy in pricing the product and service twice to three times the cost in the US. but that is another topic.
mount pinatubo erupts shooting ashes several kilometers high, then floating to blanket many other towns hundreds of kilometers away
Showing posts with label pricing strategy. Show all posts
Showing posts with label pricing strategy. Show all posts
Monday, June 14, 2010
Thursday, April 30, 2009
shell philippines' 24/7 consumer promo program
well, yes we gas up at shell. and we noticed that shell runs back-to-back consumer promotions. that is strange.
the marketing idea behind consumer promotions is to pump up volume sales and market share over non-promoted months. consumer promos will either get new users to try the product and/or get current users to increase their purchase. getting a bump on those hopefully will enable to retain and convert new users into regular users and build loyalty among current users.
what is the point then of conducting consumer promotions 24/7?
first, how do you assess the success of the promos you conduct? all months are promoted, there is no way to determine one promo was able or unable to push up sales and market share.
the marketing expense will be extremely high. consumer promotions are expensive to conduct. having a consumer promotion 24/7 means the product margins will be lower.
instead of conducting consumer promos 24/7, i would instead take that marketing expense and lower down the gas prices of their products. oil products as anyone know is very price sensitive. consumers actually know exactly how much they paid for it the last time they filled up their vehicles with gas. lowering the price of gasoline we think is the most effective way to lure in new users and increase purchase of regular users.
shell and the other big 2 oil companies, petron and caltex are in direct competition with smaller oil retailers. the small oil retailers are always able to under-cut the big 3's pricing. the big 3 know that if their gas station is beside or near any one of the small oil retailers, they will need to keep their prices as low as possible as they know not doing that will mean consumers will move to the small players.
moving the consumer promo expense to lowering the retail price of their products will allow shell to better compete with these small retailers. but i will do a little more than just lowering the gas prices, i will do something more creative and more attention grabbing than just doing a universal price decrease. i would treat the price reduction like a consumer promotion but will be creative in implementing it so that it gets the most attention and surge they need.
what can these creative ways be? that is next here in WAWAM!
the marketing idea behind consumer promotions is to pump up volume sales and market share over non-promoted months. consumer promos will either get new users to try the product and/or get current users to increase their purchase. getting a bump on those hopefully will enable to retain and convert new users into regular users and build loyalty among current users.
what is the point then of conducting consumer promotions 24/7?
first, how do you assess the success of the promos you conduct? all months are promoted, there is no way to determine one promo was able or unable to push up sales and market share.
the marketing expense will be extremely high. consumer promotions are expensive to conduct. having a consumer promotion 24/7 means the product margins will be lower.
instead of conducting consumer promos 24/7, i would instead take that marketing expense and lower down the gas prices of their products. oil products as anyone know is very price sensitive. consumers actually know exactly how much they paid for it the last time they filled up their vehicles with gas. lowering the price of gasoline we think is the most effective way to lure in new users and increase purchase of regular users.
shell and the other big 2 oil companies, petron and caltex are in direct competition with smaller oil retailers. the small oil retailers are always able to under-cut the big 3's pricing. the big 3 know that if their gas station is beside or near any one of the small oil retailers, they will need to keep their prices as low as possible as they know not doing that will mean consumers will move to the small players.
moving the consumer promo expense to lowering the retail price of their products will allow shell to better compete with these small retailers. but i will do a little more than just lowering the gas prices, i will do something more creative and more attention grabbing than just doing a universal price decrease. i would treat the price reduction like a consumer promotion but will be creative in implementing it so that it gets the most attention and surge they need.
what can these creative ways be? that is next here in WAWAM!
Friday, January 16, 2009
red mobile takes the long road to something
a new mobile service was launched last year, red mobile. we're not sure if the philippine market can take one more. the top 3, smart, globe and sun cellular is just about to reach saturation levels. smart is the dominant leader followed by globe and a far third is sun cellular.
red mobile is going after sun cellular. what? why go after sun, the smallest of the three? we will answer that question later.
sun's core strategy is excellent value. they launched on the basis of unlimited calls and unlimited texting. that has caught on as there is a growing segment of the market, most specially among teen-agers and young adults who have switched to sun and an even larger segment who have added a second cell phone to their globe or smart cellphone service.
the mobile phone market is quite mature in the country and many have actually more than one handset. users tend to replace their handsets often and buying a second hand or used handset is quite easy and cheap. so, adding a second mobile service is quite easy. the habit is to use the sun cellular handset when you want to indulge yourself with numerous text sending or make long calls.
sun cellular, however, has not grown its market share to anywhere close to being a real threat to smart or globe for a simple and really idiotic reason - not enough cell sites. everyone knows texting and calling a sun cellphone is a very painful process. the network is always busy or over loaded that you can't get a line or the person you are calling is often out of coverage. texting is equally painful - success at sending texts takes a long time and receiving one takes longer.
and now to the question - red mobile is going after sun as most likely red mobile was launcheed as a flunker brand, a brand owned by smart or globe meant to blunt further growth of sun. our guess is it is owned by smart.
will red mobile succeed? we don't know yet. it might, but we need to wait for sometime.
red mobile's lowest costs are only applicable for texts and calls to other red mobile cell phones. and since this is a new mobile service provider, there are very few people who have it. everyone will simply be on a wait and see mode.
the other turn off factor here is that, they are not offering superior or even the same rates as sun cellular. sun is offering unlimited text and unlimited calls, red is not offering unlimited texts/calls, just lower rates versus globe and smart. they are actually selling quality and reliable service - calls will be clear, you can text/call anywhere in the country and you will not experience network problems. those are all sun cellular issues or problems.
now there is a lot of problems with that strategy. here's why - red is going against sun cellular not with superior rates but better quality and reliable service. quality and reliable service is something sun users are used to and obviously something they don't mind suffering from. the fundamental reason why sun users have stayed on is the unlimited text and calls or best price/value point.
we think there is no way red mobile will be able to get sun users to switch on the basis of better quality and reliability. price/value point is THE motivator and poor quality and reliability is just an inconvenince to live with.
that kind of attitude is true for many other services and products the filipino consumer buy - they will not mind a less than superior or less than perfect service or product as long as it gives the best or lowest price point.
red mobile's marketing strategy is a WAWAM!
red mobile is going after sun cellular. what? why go after sun, the smallest of the three? we will answer that question later.sun's core strategy is excellent value. they launched on the basis of unlimited calls and unlimited texting. that has caught on as there is a growing segment of the market, most specially among teen-agers and young adults who have switched to sun and an even larger segment who have added a second cell phone to their globe or smart cellphone service.
the mobile phone market is quite mature in the country and many have actually more than one handset. users tend to replace their handsets often and buying a second hand or used handset is quite easy and cheap. so, adding a second mobile service is quite easy. the habit is to use the sun cellular handset when you want to indulge yourself with numerous text sending or make long calls.
sun cellular, however, has not grown its market share to anywhere close to being a real threat to smart or globe for a simple and really idiotic reason - not enough cell sites. everyone knows texting and calling a sun cellphone is a very painful process. the network is always busy or over loaded that you can't get a line or the person you are calling is often out of coverage. texting is equally painful - success at sending texts takes a long time and receiving one takes longer.
and now to the question - red mobile is going after sun as most likely red mobile was launcheed as a flunker brand, a brand owned by smart or globe meant to blunt further growth of sun. our guess is it is owned by smart.
will red mobile succeed? we don't know yet. it might, but we need to wait for sometime.
red mobile's lowest costs are only applicable for texts and calls to other red mobile cell phones. and since this is a new mobile service provider, there are very few people who have it. everyone will simply be on a wait and see mode.
the other turn off factor here is that, they are not offering superior or even the same rates as sun cellular. sun is offering unlimited text and unlimited calls, red is not offering unlimited texts/calls, just lower rates versus globe and smart. they are actually selling quality and reliable service - calls will be clear, you can text/call anywhere in the country and you will not experience network problems. those are all sun cellular issues or problems.
now there is a lot of problems with that strategy. here's why - red is going against sun cellular not with superior rates but better quality and reliable service. quality and reliable service is something sun users are used to and obviously something they don't mind suffering from. the fundamental reason why sun users have stayed on is the unlimited text and calls or best price/value point.
we think there is no way red mobile will be able to get sun users to switch on the basis of better quality and reliability. price/value point is THE motivator and poor quality and reliability is just an inconvenince to live with.
that kind of attitude is true for many other services and products the filipino consumer buy - they will not mind a less than superior or less than perfect service or product as long as it gives the best or lowest price point.
red mobile's marketing strategy is a WAWAM!
Monday, September 1, 2008
globe iphone 3G's pricing blunder
you have probably seen the tv ads for globe's iphone 3G, some print ads were also released and we see the posters in globe hubs for the iphone 3G. globe's iphone 3G ads exclusively talk about the excellent features and use of the iphone 3G. these marketing activities makes a lot of sense as globe is the only authorized dealer of the iphone.
clearly, globe is selling the iphone handset.
globe in the case of the iphone 3G has taken the role of handset marketer and seller, not anymore just a mobile service provider. in these iphone 3G ads, globe does not at all talk about their mobile services or plans. it's 100% talk on the iphone 3G as a handset.
and that is where the problem of globe's over-pricing the iphone 3G begins. i would even say that is where globe's marketing blunder in pricing also starts.
first, let's look at the consumer. based on globe's over-pricing of the iphone 3G and now it's advertising, it is obvious globe is targeting the upperclass, AB upper C target market.
these upperclass target market i would say already own a cellphone, i would think a high 99% of them own at least one cellphone and is already a current subscriber of a mobile phone service.
the marketing objective therefor of globe iphone 3G is to get the target market to switch from their old/current cellphone to the iphone 3G.
since globe is asking the target market to switch, or to change their old cellphone to the iphone 3G, consumers will naturally look into the features of the iphone 3G and compare these to their current handsets.
not only will consumers compare the features of the iphone 3G, they will also look into the price of the iphone 3G that globe is selling it for.
they will compare the iphone 3G's price versus the price they bought their current handset for, the present price of an equivalent model now and the top of the line models of nokia, sony ericcsson and samsung. and because these are from the upper class, they probably will go to t he internet and find out that THE IPHONE 3G HANDSET is being sold in the US for $199 or P10,000 while globe is selling exactly the same iphone 3G handset for P16,000 or P38,000.
that clearly says the iphone 3G as priced by globe is over-priced.
the first battleground that globe needs to win on their marketing push for the iphone 3G is handset sales. the question of mobile service subscription plan is a second stage battleground. they first need to win consumers on the handset battleground. if globe does not win their target market on that first battleground, their intended consumers WILL NOT move to the second battleground.
in fact i think this second battleground of mobile service subscription plan is actually not really a battleground. i think there is no war on that level, that globe does not even have to fight for anything at this level. why is that? for the simple reason that these target consumers of globe ALREADY OWN A CELLPHONE AND ALREADY HAS A MOBILE SERVICE SUBSCRIPTION PLAN (pre-paid or post paid).
in other words, these consumers are actually already spending money on a subscription plan. it's no big deal if they move from their current plan to a new one with the iphone 3G. it is the shelling out for a new handset, to buy the iphone 3G that is a new expenditure. and because that is where they will incur a new expense on, that is where the battleground of value or price comes into play. and in that battleground, globe lost because they over-priced it.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
clearly, globe is selling the iphone handset.
globe in the case of the iphone 3G has taken the role of handset marketer and seller, not anymore just a mobile service provider. in these iphone 3G ads, globe does not at all talk about their mobile services or plans. it's 100% talk on the iphone 3G as a handset.and that is where the problem of globe's over-pricing the iphone 3G begins. i would even say that is where globe's marketing blunder in pricing also starts.
first, let's look at the consumer. based on globe's over-pricing of the iphone 3G and now it's advertising, it is obvious globe is targeting the upperclass, AB upper C target market.
these upperclass target market i would say already own a cellphone, i would think a high 99% of them own at least one cellphone and is already a current subscriber of a mobile phone service.
the marketing objective therefor of globe iphone 3G is to get the target market to switch from their old/current cellphone to the iphone 3G.
since globe is asking the target market to switch, or to change their old cellphone to the iphone 3G, consumers will naturally look into the features of the iphone 3G and compare these to their current handsets.
not only will consumers compare the features of the iphone 3G, they will also look into the price of the iphone 3G that globe is selling it for.
they will compare the iphone 3G's price versus the price they bought their current handset for, the present price of an equivalent model now and the top of the line models of nokia, sony ericcsson and samsung. and because these are from the upper class, they probably will go to t he internet and find out that THE IPHONE 3G HANDSET is being sold in the US for $199 or P10,000 while globe is selling exactly the same iphone 3G handset for P16,000 or P38,000.
that clearly says the iphone 3G as priced by globe is over-priced.
the first battleground that globe needs to win on their marketing push for the iphone 3G is handset sales. the question of mobile service subscription plan is a second stage battleground. they first need to win consumers on the handset battleground. if globe does not win their target market on that first battleground, their intended consumers WILL NOT move to the second battleground.
in fact i think this second battleground of mobile service subscription plan is actually not really a battleground. i think there is no war on that level, that globe does not even have to fight for anything at this level. why is that? for the simple reason that these target consumers of globe ALREADY OWN A CELLPHONE AND ALREADY HAS A MOBILE SERVICE SUBSCRIPTION PLAN (pre-paid or post paid).
in other words, these consumers are actually already spending money on a subscription plan. it's no big deal if they move from their current plan to a new one with the iphone 3G. it is the shelling out for a new handset, to buy the iphone 3G that is a new expenditure. and because that is where they will incur a new expense on, that is where the battleground of value or price comes into play. and in that battleground, globe lost because they over-priced it.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Saturday, August 30, 2008
globe iphone 3G - over-pricing or good value?
to answer that question, we need to look into the consumer psyche. that's next in WAWAM! tonight.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
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read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Thursday, August 28, 2008
globe iphone 3G - over-pricing caused a "not-for-me" brand image
the globe marketing people must be grumbling , the long lines and excitement did not 
materialize on the launch of the iphone. smart telecom marketing people on the other hand must be happy. the smart telecom people are happy because by pricing the iphone at the current levels, it meant globe decided not to use the iphone as the tool to take market leadership away from smart.
why did globe iphone 3G's sales disappoint? i don't think it's lack advertising or lack of promotion. the iphone 3G has been widely expected in this market. people were already waiting for it.
i think it's the pricing.
globe already gave us a hint that the pricing was the killer for their launch. many weeks ago, globe already announced their prices on the iphone. then weeks after that initial launch and around 3 days before the actual launch, they announced a "price roll-back". it's not actually a roll-back since they have not launched it yet, but that back pedalling on the prices told the iphone's pricing strategy was the biggest weakness in their launch plans. in fact we can say with the roll-back, globe admitted they made a mistake on the pricing of the iphone.
"value" or the perception of "good value" or "sulit" is always an issue among filipino consumers on almost everything. fail at communicating good value or fair value and the brand is dead in the market. it does not matter if this brand is the true superior product in the market place. if a brand is seen as inferior in good value, superior product performance will not matter.
and i think this is what happened to globe's iphone launch in the philippines. globe failed on their pricing strategy. i think globe committed this blunder on pricing for several reasons :
materialize on the launch of the iphone. smart telecom marketing people on the other hand must be happy. the smart telecom people are happy because by pricing the iphone at the current levels, it meant globe decided not to use the iphone as the tool to take market leadership away from smart.why did globe iphone 3G's sales disappoint? i don't think it's lack advertising or lack of promotion. the iphone 3G has been widely expected in this market. people were already waiting for it.
i think it's the pricing.
globe already gave us a hint that the pricing was the killer for their launch. many weeks ago, globe already announced their prices on the iphone. then weeks after that initial launch and around 3 days before the actual launch, they announced a "price roll-back". it's not actually a roll-back since they have not launched it yet, but that back pedalling on the prices told the iphone's pricing strategy was the biggest weakness in their launch plans. in fact we can say with the roll-back, globe admitted they made a mistake on the pricing of the iphone.
"value" or the perception of "good value" or "sulit" is always an issue among filipino consumers on almost everything. fail at communicating good value or fair value and the brand is dead in the market. it does not matter if this brand is the true superior product in the market place. if a brand is seen as inferior in good value, superior product performance will not matter.
and i think this is what happened to globe's iphone launch in the philippines. globe failed on their pricing strategy. i think globe committed this blunder on pricing for several reasons :
- they forgot that their target market, most likely AB, upper C already own a cellphone. they need to be given very strong reasons for them to buy a 2nd handset. they will already be "wasting" the money they invested on their current cellphone, they need a really smart reason to buy the iphone. pricing the iphone at the current levels made them feel it's not worth the investment.
- globe also forgot that their target market most likely own a computer and has access to the internet and read newspapers and magazines. that means they most likely know the iphone has been launched in other markets ahead of the philippines. and they most likely know the iphone is being sold at $199 in the US. looking at globe's announced iphone handset pricing, all notions and hopes of "good value" disappeared.
the instinct of the globe brand manager who "rolled-back" the iphone's price was right. it was just that the price action was too little.
i'm also wondering - did globe forgot to read the newspapers in the last few months? this country has been punished by inflation, the highest in 17 years, gas prices in certain times were being increased on a weekly basis, there is a rice and food crisis and growth has slowed. given that scenario, good value, if not prices have become increasingly very important to consumers. and in that most important criteria, globe's iphone launch failed.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Sunday, August 24, 2008
globe iphone 3G launch - no long lines, hardly new subscribers
went to the globe business center at the shangrila in pasig. it was mostly empty, except for the banners announcing the availability of the iphone and a small white table on top of which was a white mac but no one seated on the chair and more importantly no customers buying the iphone. unlike in other markets in europe and in the US, lines did not form to buy the iphone. talked to the person at the door, and he confirmed as of that hour, which was around 4pm, nobody has come to buy or even to inquire about the iphone. 
it's most likely the pricing. as posted in this blog, it is an over-priced handset given that most people most probably know that in the US, it was sold only at $199 a handset.
which leads us to an important question - with very few people wanting to buy the iphone, why did globe make the people who reserved the iphone before launch wait for them to get their iphones? what's keepin globe from immediately giving the iphones to those who reserved them?
getting the iphone as fast as they can to the hands of subscribers in fact is to the advantage of globe. it has the potential to create buzz. what was the point of making them wait?
it would be interesting how the press and globe play up this launch.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
it's most likely the pricing. as posted in this blog, it is an over-priced handset given that most people most probably know that in the US, it was sold only at $199 a handset.
which leads us to an important question - with very few people wanting to buy the iphone, why did globe make the people who reserved the iphone before launch wait for them to get their iphones? what's keepin globe from immediately giving the iphones to those who reserved them?
getting the iphone as fast as they can to the hands of subscribers in fact is to the advantage of globe. it has the potential to create buzz. what was the point of making them wait?
it would be interesting how the press and globe play up this launch.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Thursday, August 21, 2008
part 6 : globe's iphone 3G pricing a good time to launch or just a "good time"?
i both agree and disagree with the analysis on the timing of globe's launch of the iphone. i agree that consumers, even high income ones are now more value conscious than before. we also know that in times of economic worries, the tendency specially among high income consumers is to at least delay purchase of high ticket items.
i agree with the analysis that within that framework, globe's iphone launch is bad timing as of the moment BUT ONLY IF globe launches the iphone at the price they have set it. it is a highly over-priced product specially that philippine consumers, specially the high income ones are aware that the iphone is being sold in 
the US only at $199 or equivalent P9,032 versus their declared price of P15,100 for plan P1,599 and for pre-paid buyers at P37,599.
in fact this prevailing attitude of looking at value before making high ticket purchases may be the best time to launch the iphone IF glone launches the iphone at the same US price of $199.
at $199 or P9,032.00, all consumers will view the iphone as giving the BEST VALUE given the low price together with superior technology and features, bar non and superior brand image, bar non. given the iphone brand image and verifiable superior features, many will most likely see the iphone as dirt cheap.
and that goes to the point i have raised earlier where we are saying the iphone may be used by globe as their weapon of choice to gain new users and most specially a substantial number of switchers from smart and eventually become market leader in as short as two year's time.
unfortunately, based on the pricing that globe has announced, globe seem to have decided they do not want to use the iphone as their weapon to gain market leadership. smart telecoms must be relieved of globe's decision on its pricing on the iphone.
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http://newsinfo.inquirer.net/breakingnews/infotech/view/20080818-155357/Timing-not-so-good-for-iPhone-3G-in-RP-says-analyst
Timing not so good for iPhone 3G in RP, says analyst
By Lawrence CasirayaINQUIRER.net
MANILA, Philippines--Despite the hype surrounding Globe's forthcoming launch of the iPhone 3G, one analyst believes Apple's latest device is coming to the Philippines at a very bad time.
"The iPhone's roll-out in the Philippine market came at a very bad time," said Benedict Ferrer, analyst for XMG Asia Pacific. Globe is scheduled to launch the iPhone 3G on August 22. The operator initially announced earlier this month that it would sell the device for prepaid accounts at P41,899 and P48,899, for the 8-gigabyte and 16-gigabyte models, respectively.
Last Friday, Globe announced price rollbacks and said it would sell iPhone 3G prepaid kits starting at P37,599 (8Gb) and P43,799 (16 GB)." Despite of the price cuts made by Globe, technology consumers are now very cautious on spending for high-end luxury items due to spiraling food and transportation costs," Ferrer said in comments e-mailed to INQUIRER.net.
He believes Globe's revenue growth from iPhone subscriptions will still be limited due to "application cost, value proposition and application usage acceptability among consumers." In terms of preference, he said consumers in general will still prefer prepaid plans primarily because these do not have a "lock-in" contract with Globe.
The iPhone 3G is also available via postpaid subscriptions ranging from P1,599 to P4,999 in monthly fees. "iPhone's brand recognition, market positioning and loyal followers will provide the strategic advantage in capturing high-end techno savvy consumers versus other smart phone brands," Ferrer said.
Globe's prepaid plans come with P1000 in load credits spread over five months, or P200 per month. Also, the first 1,000 phonekit purchases will get an additional P1,000 discount off the purchase price, Globe said in last Friday's announcement.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Wednesday, August 20, 2008
The Top 10 Reasons Why I Am Not Buying Globe's Iphone
10. i keep reading nasty problems with the iphone - battery life sucks, it shuts down on it's own, connectivity problems, turns into a brick, unstable software, etc. the iphone 3G is just on it's 1st year, apple products are always at their best on year 3 or year 4.
9. i already have a cellphone and it's doing great.
8. i have a nasty feeling globe will repent and will be forced to eventually reduce their prices. so why buy now?
7. globe's landline and internet services suck big time! many of their internet subscribers want to burn down globe. if they have not improved on this over the years, how much more worse will it become with a new product like the iphone that is very much into the internet?
6. i am not a techie. the iphone is a lot like a twin to the internet and very much into frequent upgrades and synchronization on the net. if something goes wrong, i don't think i can fix it. what if my computer crashes? i lose all the data and all the goodies. it will be a pain to transfer to another computer.
5. what if something goes wrong with the iphone? or i need to replace the battery? i won't have a cell phone for 2, 4 to 6 weeks!? argh!
4. what, deal with globe's customer service? that scares the hell out of me. how much do they know about the itunes and the internet? it's hard enough being able to contact them now, what more with additional iphone users?
3. battery life is one big issue. with all the other goodies in the iphone, i don't think i can stop myself from using it more on things other than as a cellphone like text or voice calls. and those other things WILL discharge the battery. i need a cellphone to send/receive text and voice calls and i want that available to me 24/7. using the other goodies in the iphone puts me at risk of discharging the battery and losing it's primary function of being a cellphone for text and voice calls.
2. i feel very cheated in having to pay the over-pricing of the iphone by globe. can't stand the thought i'm allowing globe to screw me. imagine, i would have the feeling of being screwed for 2 years, the lock up period.
and the number 1 reason why i am not going to buy globe's iphone is:
1. i already own an ipod touch and it's great! i am able to enjoy all the goodies of the iphone without having to deal with any of the current and future bad things about the iphone and most specially globe, read - # 2 to # 10, above. most of the coolest stuff on the iphone are on the ipod touch.
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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
9. i already have a cellphone and it's doing great.
8. i have a nasty feeling globe will repent and will be forced to eventually reduce their prices. so why buy now?
7. globe's landline and internet services suck big time! many of their internet subscribers want to burn down globe. if they have not improved on this over the years, how much more worse will it become with a new product like the iphone that is very much into the internet?
6. i am not a techie. the iphone is a lot like a twin to the internet and very much into frequent upgrades and synchronization on the net. if something goes wrong, i don't think i can fix it. what if my computer crashes? i lose all the data and all the goodies. it will be a pain to transfer to another computer.
5. what if something goes wrong with the iphone? or i need to replace the battery? i won't have a cell phone for 2, 4 to 6 weeks!? argh!
4. what, deal with globe's customer service? that scares the hell out of me. how much do they know about the itunes and the internet? it's hard enough being able to contact them now, what more with additional iphone users?
3. battery life is one big issue. with all the other goodies in the iphone, i don't think i can stop myself from using it more on things other than as a cellphone like text or voice calls. and those other things WILL discharge the battery. i need a cellphone to send/receive text and voice calls and i want that available to me 24/7. using the other goodies in the iphone puts me at risk of discharging the battery and losing it's primary function of being a cellphone for text and voice calls.
2. i feel very cheated in having to pay the over-pricing of the iphone by globe. can't stand the thought i'm allowing globe to screw me. imagine, i would have the feeling of being screwed for 2 years, the lock up period.
and the number 1 reason why i am not going to buy globe's iphone is:
1. i already own an ipod touch and it's great! i am able to enjoy all the goodies of the iphone without having to deal with any of the current and future bad things about the iphone and most specially globe, read - # 2 to # 10, above. most of the coolest stuff on the iphone are on the ipod touch.
----------
read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Tuesday, August 19, 2008
part 5 : globe's iphone launch strategy : double the price, take a pass on the chance to market leadership
here is the bottom line for globe on the iphone launch - it has missed the boat on many things in their marketing launch plan for the iphone.
what a shame and what a waste - globe passing up the chance to take market leadership from smart. globe's very high and out of reach pricing strategy on the iphone shows globe is treating
the iphone just like any other other new cellphone model. globe has totally missed the point on the true power of the iphone and what it can do to it's market share.
globe decided to take a marketing strategy of taking short term profits on the sale of the iphone handsets over long term market share growth, user base expansion and market leadership. they preferred profits on cell phone unit sales over increase in number of subscribers.
the true value of the iphone is it is an irresistible magnet to consumers. and if we are going to read the marketing strategies behind the iphone's world domination marketing plan, we will most likely read these statements:
this was nurtured for the iphone from day 1. the iphone was launched just a year ago - it had industry leading features and in fact took the whole market into a whole new different playing field. it's price was very stiff but it continued to sell just the same and to wow consumers and the industry.
the net effect of the iphone's year one was --- superior product and superior brand image. while the iphone achieved it's year one cell phone unit sales objective, everyone knew the only barrier to world domination was it's price.
what a shame and what a waste - globe passing up the chance to take market leadership from smart. globe's very high and out of reach pricing strategy on the iphone shows globe is treating
the iphone just like any other other new cellphone model. globe has totally missed the point on the true power of the iphone and what it can do to it's market share.globe decided to take a marketing strategy of taking short term profits on the sale of the iphone handsets over long term market share growth, user base expansion and market leadership. they preferred profits on cell phone unit sales over increase in number of subscribers.
the true value of the iphone is it is an irresistible magnet to consumers. and if we are going to read the marketing strategies behind the iphone's world domination marketing plan, we will most likely read these statements:
- superior product features and capabilities, bar none
- superior brand image, bar none
- superior pricing, if not highly competitive pricing
this was nurtured for the iphone from day 1. the iphone was launched just a year ago - it had industry leading features and in fact took the whole market into a whole new different playing field. it's price was very stiff but it continued to sell just the same and to wow consumers and the industry.
the net effect of the iphone's year one was --- superior product and superior brand image. while the iphone achieved it's year one cell phone unit sales objective, everyone knew the only barrier to world domination was it's price.
that is what they fixed on year 2 with the launch of the iphone 3G this year. the highly aggressive 50% off $199 pricing was meant to silence all other competitors. here you had industry leading features, industry leading brand image and what did they do? added 3G and dropped the price like hell. in marketing terms, that's a very clear signal that the iphone is on it's way to world dominance. that kind of pricing is meant to close down all competition. it has been successful so far. it has now sold more than 3 million handsets.
we are talking here of only year 2 for the iphone! think of what will come next on it's year 3! the iphone juggernaut has only just began. we all know what apple is capable of, specially on technology, innovation and design. if we are all wowed by the iphone now, we will be blown away on year 3.
think what the ipod has achieved! the scale of success and numbers that the ipod has achieved is what the iphone intends to do. and globe did not see that?
this is the other part that globe has failed to see. we think globe can easily take market leadership away from smart with the iphone in a very short two year's time. it's amazing how globe can choose profits on a few handset sales versus 15 to 20 million new subscribers by next year! the numbers that globe is missing on their current iphone marketing strategy is staggering!
we think the marketing strategy that globe has decided on the iphone is a monumental failure of missed opportunities.
we are talking of monumental missed business opportunity just on their mobile service business. the other huge missed opportunity is on their wifi internet business. pldt dominates this segment of the market. globe has launched their own internet service but it is nowhere near what pldt has done.
the iphone 3G, together with it's wifi capabilities could have trampolined globe into becoming a real threat to pldt on internet services. use of the iphone for internet browsing is of course very different and inferior versus using a laptop or a desktop but they could have used their internet use through the iphone as a consumer base to convert them into subscribers to their telephone based laptop/desktop internet subscribers at home.
it's really hard to understand how globe's plans for the iphone misses many of the facts about the iphone and how it has failed to see the long term view.
read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
Monday, August 18, 2008
part 4 : iphone 3G philippine launch - globe gives up chance to market leadership
WAWAM! is of the opinion that with the 3G iphone, globe has an excellent chance in gaining market leadership over smart in the philippine mobile service market. the iphone has all the right ingredients - a pedigree of success in other markets, a hands down "it" cell 
phone image, no debating it is the must-have cell phone today.
it's features and capabilities are unmatched by its competitors. more importantly, it has been priced in the US at $199.00. at today's peso - US$ exchange rate of P45.39, that's just P9,032.61. with its features and brand image, that is dirt cheap.
the iphone was launched in the US a year ago at double the price. the price cut apple did when they launched the 3G ("twice as fast, half the price") was meant to achieve market leadership.
and that is exactly where the problem is in globe's planned launch of the iphone - it's pricing. globe has originally announced a very high price on the iphone but just last friday announced a new lower pricing. but the new lower pricing is still way too much compared to the US price and the iphone's implied pricing strategy.
the lowest plan is at P15,100, that is a +67% versus the iphone pricing strategy equivalent peso of P9.032 at the lowest post-paid monthly fee of P1,599 here at globe.
for existing post-paid subscribers, subs of the lowest monthly rate will need to pay P29,000 for the iphone or equivalent US$638.90 or +220% versus the pricing strategy of US$199 in the US.
these pricing structure tell you globe's marketing strategy in their launch of the 3G iphone is not to gain market leadership but to make a huge profit on the iphone sales. it looks like they do not believe the iphone is capable of pushing globe to market leadership.
this is short sighted marketing and i think a fatal mistake. this is a one time chance to gain market leadership for them but they passed it up for short term profit. what a shame and a WAWAM!
read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :
http://the-wawam-file.blogspot.com/search/label/iphone
read more about globe's iphone pricing here:
http://blogs.inquirer.net/m-ph/2008/08/18/globe-rolls-back-3g-iphone-prices/
http://www.mukamo.com/globe-sell-iphone-3g-philippines-august-22-price-41899-pesos/
phone image, no debating it is the must-have cell phone today.it's features and capabilities are unmatched by its competitors. more importantly, it has been priced in the US at $199.00. at today's peso - US$ exchange rate of P45.39, that's just P9,032.61. with its features and brand image, that is dirt cheap.
the iphone was launched in the US a year ago at double the price. the price cut apple did when they launched the 3G ("twice as fast, half the price") was meant to achieve market leadership.
and that is exactly where the problem is in globe's planned launch of the iphone - it's pricing. globe has originally announced a very high price on the iphone but just last friday announced a new lower pricing. but the new lower pricing is still way too much compared to the US price and the iphone's implied pricing strategy.
the lowest plan is at P15,100, that is a +67% versus the iphone pricing strategy equivalent peso of P9.032 at the lowest post-paid monthly fee of P1,599 here at globe.
for existing post-paid subscribers, subs of the lowest monthly rate will need to pay P29,000 for the iphone or equivalent US$638.90 or +220% versus the pricing strategy of US$199 in the US.
these pricing structure tell you globe's marketing strategy in their launch of the 3G iphone is not to gain market leadership but to make a huge profit on the iphone sales. it looks like they do not believe the iphone is capable of pushing globe to market leadership.
this is short sighted marketing and i think a fatal mistake. this is a one time chance to gain market leadership for them but they passed it up for short term profit. what a shame and a WAWAM!
read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe
read WAWAM! posts on the iphone here :
http://the-wawam-file.blogspot.com/search/label/iphone
read more about globe's iphone pricing here:
http://blogs.inquirer.net/m-ph/2008/08/18/globe-rolls-back-3g-iphone-prices/
http://www.mukamo.com/globe-sell-iphone-3g-philippines-august-22-price-41899-pesos/
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