Critical Analysis of Marketing Audit for D-GSM

Critical synopsis of selling Audit for D-GSM1.1 doorIn todays propelling telecommunication exertion it is scathing to give out the high-octane purlieu and analyze key ingathering/service offering to commit customers. win, the in trendation gathitherd from grocery storeing inspect is used to critically analyze Dialog crossway line murder and current overlap way issues with relevant beams and models to identify the key opportunities/weakness which D-GSM could face in early.1.2 ecumenic IssueInefficient Channel Distribution worryThe downstream diffusion is a key part of achieving sales objectives for D-GSM. In other words, argumentation-to-business (B2B) customers carry on the proceedss of D-GSM to end customers. Currently D-GSM is operating with four major first stratum distributors and 1200 retailers in 85 cities in Sri Lanka.In recent past elevate the retail dispersion chain has declined in each province (Refer cecal appendage B 10.0). The commodious t ier retail dispersal has reduced the gelt margin therefrom runed the retailers get outing to promote competitors crossings (Refer appurtenance B 11.0). some other reason set for this decline is gritty sales module overthrow which resulted for poor retail focal point.The issue highlightinged in a higher place terminal figureinate be highlighted using Ishikawa Cause/Effect plat shown below (Refer account 1.0)Model espouse from (Albert, 1989)1.3 point of intersection c be IssueCurrent Health of Product Portfolio manikin 2.0 BCG MatrixBCG Model Adopted from (Kotler, 2008)Healthy fruit portfolio is important for system of rules to gain competitive advantage. except analyzing the Boston Consultancy Group (BCG) matrix (Refer pick up 2.0) its understood that D-GSM key proceedss be spatial relationed i0n cash cow. In long terminus these yields could move to dogs section which could harm the product performance of the organization.Further products standard ized Kids connection and Code-Division-Multiple-Access (CDMA) argon soon in dogs section of BCG matrix take to be removed from the product portfolio as they consume high represent to fend for the products and return low profit to the organization.Moving forward D-GSM postulate to plan for product growth to position in star section of BCG matrix which is currently with few products. Star products ar highly require for organization to gain competitive position eventually star products leave behind become cash cow and dogs respectively, Further D-GSM of necessity to identify products are in the question-mark dish out to invest to generate food food market per centum and returns. straight it is proved lack of product portfolio counselling has resulted developing low income generating products and thus D-GSM take to follow a strategic system to have a balanced product portfolio make lovement to gain competitive position in dynamic market.Inefficiencies in New Product increase(NPD)Model adopted from (Kotler, 2008)D-GSM is currently facing set back with competitors. Presently D-GSMs core products, which face hard competition from competitors, are in maturity stage. Thus these products are experiencing diminution in the profit margin (Refer appurtenance B- 8.0).The merchandising analyze (Refer vermiform appendix B) clearly indicates that Dialogs Mobile-wideband is currently in maturity stage and clearly indicates declining in profit. Further it is evident that no product-line-extensions are developed for the product selection which has created a quick decline stage for most of the product.There are few products and product-line-extension that are developed having long bed cover in introducing to the market in the tonic product development melodic line (Refer vermiform dish out B- 11.0) as a result quick mature products (Cash-Cow) tends to decline faster. Moreover this is that evident that D-GSM has allocated low selling budget alloca ted product innovation (Refer Appendix B- 12.0).Overall im proper(ip) management in NPD has created threat for D-GSM of beingness a market leader and loosing first mover advantage for key products.Gap determine in runny-broadband STP StrategyToday in telecom industry mobile-broadband is a core product and a matured product in the PLC it is consumed in a very high aim and has become a commodity in daily life. The market audit has identify that D-GSM has been targeting the corresponding segment which are professionals/senior executive since inception their mobile services. This is a drawback for D-GSMs long term survival and its market leadership. Further competitors are qualified to manipulate this service and forget lose its market share (Refer Appendix B Appendix B- 4.0).The PESTEL analysis issues evidence that impudent potential segments are emerging such as entry level executives (1), undergraduates/students (2), travellers and businessmen (3). As result old segments are becoming outdated. (Refer Appendix B- 12.0).The below diagram illustrates the ability of D-GSM to cater and take necessary bringion for upstart segments (Refer Appendix B- 9.0). outerize 4.0 G.EMatrixModel adopted from (Business tools, 2007)The output of market segmentation matrix identifies the emerging parvenu segment to generate to a greater extent revenue and append market share by stiring the broadband (Refer Figure 4.0). companionship gap in customer preferenceInternet technology is endlessly evolving and adapting to such changes is highly important to D-GSM. Continues adaptation to such technology and augmenting future technology is important for long term survival.The marketing audit explicitly specifies that D-GSM provides the core features of MBB to present customers. Further it is not providing the expected features or long term product augmentation of MBB (Refer Appendix B- 9.0).Referring to figure 5.0 clearly indicates gap among current feature offering of broadband and customer expectations. To fulfill this gap D-GSM needs to continuously rate customer expectation and adopt to provide new(a) technologies to retain market leadership.1.4 Conclusion of Critical Analysis leave out of informationKnowledge gap in changing marketGaps in STPPotential New segments to targetDeficiencies in the product portfolio2.0 good wordFollowing good words are addressed below to flog current drawbacks face by D-GSM having critically analyzed using market audit. testimonials are categorized to cater mobile-broadband and product portfolio management.2.1 Recommendations for Mobile-broadband product LineRecommendation 1 depot Mobile-broadbandTopic 1.3 above states that current segment targeted for mobile-broadband is declining. Following segments are identified as target audience who are students, travellers and undergraduates to be targeted to generate high revenue for mobile-broadband.Proposal in item Following recommendation is to reposition the mobile-broadband product line targeting new potential segments as the current segment is declining. This is also evident where 3 major UK telecommunication vendors has overall share of 30% mobile-broadband users as students and undergraduates affording on the go low- represent internet easiness (Gabriel, 2011).Currently mobile-broadband is a cash cow product. dislodge this product back end wait on D-GSM to reach more(prenominal) than customers and generate more revenue. Based on the proposed recommendation, pursuit product forecast is analysed using net present assess (NPV) analysis. add-in 1.0 NPV Analysis for Mobile broadband repositionKey conclusion of NPV AnalysisReturn on Investment (ROI) The full(a) return on Investment on the repositioning the product entrust be full recovered by the end of the first year. prowcasted sales performance Repositioning the product give pave the way to the sales to increase notably. approximately 67% increase in first year, 150% withi n dickens years and 200% within three years.NPV analysis indicates positive (+) result which mean reposition will be successful. The product can be expected to perform well in the market to gain more revenue and market share for Dialog mobile-broadband. Further D-GSM could follow the proposed product reposition process for mobile-broadbandFurther D-GSM could follow the proposed product reposition process for mobile-broadbandFigure 6.0 Proposed product reposition process for mobile broadband product lineTo better position mobile-broadband D-GSM could adopt the chase marketing undulate to reach the fresh identified segments since the current marketing mix for mobile broadband is outdated. control panel 2.0- Proposed new marketing mix for mobile broadband product lineFollowing perceptual map can be considered for the new repositioning strategy,2.2 Recommendations for Product ManagementRecommendation 2 shoot Product Management TeamThe present marketing coordinate is incapable(p) of managing multiple product portfolios at D-GSM. This social organization only focuses to cater existing product portfolio and provides low importance for NPD. Further, it is inefficient to support and manage more products by fewer staff which increases the existing workload.Proposal in expatiateIt is recommended to re organize existing marketing hierarchy to cater NPD, to conduct product management efficiently and reduce burden on staff of marketing department. This recommendation emphasises the creation of a product management police squad, which could be concord to better manage product portfolio for D-GSM. Below product aggroup structure is recommended (Refer figure 7.0)Recommendation 3 Financial pick Allocation to Product managementFurther to the critical analysis conducted it is understood low fiscal vision allocation as key reason for poor performance of product management in D-GSM. To overcome this issue more monetary resource allocation has to be allocated for better product management in future.Proposal in Detail Following recommendation is to cater financial resource for product management team. Proposed financial resource will cater the team to conduct product portfolio management, new technology acquisition for product development, research development to introduce new products/service to market.It is recommended to allocate 10% of the annual sales revenue to facilitate product management team. The following financial allocation sectionalization is proposed.Table 3.0-Proposed Financial Allocation breakdown for go through management teamRecommendation 4 -Implementation of Product Portfolio Management System (PPMS)In topic 1.3 identifies the lack of system and process in place to manage product portfolio and help senior management make strategic decision towards managing product portfolio as it consumes human and financial resources .This recommendation will highlight in implementing a PPMS for D-GSM.Proposal in Detail This recommend ation is to implement PPMS for D-GSM. This system in place will help management make strategic decisions and allocate investments to individual products with the goal of optimizing the entire product portfolio. Also this system will provide a tool to maximize the performance of product portfolio in varies stages of PLC.The following system will help product management have a consistent spatial relation of product performance, products status in PLC, new product development pipeline progress, admonisher product operation cost and more with product portfolio management.Further with the help of such system product development omnibuss to align product roadmaps with market expectation and help to increase revenue, grow market share and reduce costs.Benefit for D-GSM by implementing PPMSMaximize the performance of D-GSM product portfolioPMSS in place will alter centralized management of product portfolioPMMS in place will enable product managers to align product roadmaps with marketi ng objectives to increase revenue, grow market share, and reduce costsPMMS will enable product management team gather historical information which is invaluable information that will improve period to market of future productsRecommendation 5 Expand Re-align Channel DistributionThis recommendation will highlight in improvising the current retail management and introducing new retail partners for D-GSM to rotate the bestow distribution to compete with competition and in long term to penetrate Sri Lankan market.Proposal in Detail Proposed strategy of expanding the channel distribution to reach wider untapped market of D-GSM as competitors are aggressive in penetrating the market .This strategy will enable D-GSM to gain more consumers and boost profit through additional venues and expanding current channel distribution can be an effective tool to increase existing business for Dialog GSM.Benefit for D-GSM by Expanding Re-aligning Channel DistributionChannel expansion will cut down operational cost in both region and improve sales performanceCurrent level of channel risk will be minimized and risk could be dual-lane among m both regional retailersExpanding channel distribution will help in brand embodimenting and make products available in more locations which will raise consumer awareness of D-GSM offerings.Recommendation 5 Implementation of Marketing tuition System (MKIS)Further to the critical analysis conducted in 1.5 and 1.6 it is evident that there is no system and process in place to monitor dynamic market surround and consumer deportment, in current situation without a proper system in place D-GSM has not been able to understand consumer behavior and identify emerging segments and target potential new market.Proposal in Detail The following recommendation is to implement a MKIS. This system in place will help D-GSM to scan dynamic market environment constantly to make strategic decisions. Further this system will enable the marketing and pro duct management team to analyze consumer behavior and act accordingly in competitive environment. In long term this system in place will enable the organization to be market oriented.Proposed key integrated feature of this system will beMarketing intelligenceInformation AnalysisMarketing researchInternal RecordsThe range of the proposed MKIS will be as shown in figureBenefit for D-GSM by implementing MKISMKIS will enable organization to constantly monitor dynamic marketing environmentDistribute marketing information within organizationMKIS will enable to analyses consumer behavior, This will help D-GSM to better manage STP strategies for new productsMKIS will facilitate towards product planning and control3.0 Evaluation of Resource potentiality and Capacity Management3.1 IntroductionThis section evaluates the resources and ability requirements to relinquish the identified recommendations for product management of D-GSM. This analysis is based on drawbacks identified from the cri tical analysis and possible recommendations are proposed to re-align the current D-GSM resources and capabilities to desired level.3.2 Analysis of current organizational capability and resourceWhen conducting a support management in this scale it is important for D-GSM to evaluate current resource capability and capacity of the organization to deliver the recommendations proposed under heading 2.0. Further to evaluate the current strength of delivering the recommendations, a skill audit was conducted within marketing department against the expected skills and competencies required for the product management hurtle (Refer Figure -9.0)Figure9.0 Marketing Team Current Skill vs. Expected Skill for product management dropThe skills audit analysis (Refer Figure 9.0) against the marketing audit (Refer Appendix B- 14.0 ) indicates there are lack of gap overall skills, hence there is a need for skills improvement from outdoor(a) or privileged sources which needs to be sired to close the current skill gap.The marketing audit analysis indicates present marketing teams resources are limited and the current structure is incapable of managing the proposed project (Refer Appendix B- 5.0). Therefore it is recommended to recruit a new project management team to implement the recommendation made for D-GSM.To overcome the skill requirement a project management team can be formed from a cross functional basis of usurp staff who will have relevant skills and knowledge to implement the proposed recommendation as a team. Further D-GSM could acquire required skill and expertness resources from external environment.3.3 New Capability Resource requiredProvide readiness in Product portfolio managementMarketing team currently needs new skills in understanding the importance of organizational product portfolio management to achieve organizational objectives. By training the staff on portfolio management it will enable the marketing team to formulate effective product portfolio management strategies to cater dynamic market environment.Increase Financial Allocations for Portfolio ManagementTo have an efficient product portfolio management more financial resource is needed to cater new product development. The current budget quota is meagerly for product portfolio management and therefore to implement the identified recommendations and to gain new capabilities and other needed resources which needs sufficient financial allocation for product portfolio management. genteelness on customer consanguinity managementMarketing team is currently in need for training in customer blood management. Currently in the highly competitive Sri Lankan telecom market relationship management with key customers, retailers and distributors are important to retain recurring business. By conducting such training D-GSM could retain customers to generate more revue for organization.3.4 How to scarper New Capability and ResourceInternal DevelopmentInternal development refers to t he changes that a firm undertakes by recombining its existing resources or developing new resources on its own (Capron and Mitchell, 2004). To acquire new capabilities at minimal cost marketing team along with human resource department could form an internal development team to provide key skill and mentoring to staff, this could be in the form ofKnowledge Sharing SessionInternal initiationOne to One sessionHiring External ConsultantExternal sourcing message trading in a strategic capability that stems from external sources (Capron and Mitchell, 2004).The hiring of a adviser will help D-GSM in gaining external/industrial expertness on product portfolio management and enable the marketing team to build new strategies to increase performance for Dialog Mobile-broadband product line.Training and DevelopmentD-GSM could evaluate the option of on-demand training and development to cater highly critical skill and capability needs to manage competitive product portfolio to the market. F urther D-GSM could follow the proposed model shown in Figure 10.0 to plan training development.Figure 10.0 Training and Development processModel Adopted from (Moskowitz, 2008)The Benefit of Training and DevelopmentImproved motivation Individuals see their skills base extending and their promotion prospects being enhanced.Opportunities for self-improvement, leads to people staying longer in one employment.Higher levels of performance skilled and motivated staffs are more likely to give of their best which in the end justifies the training budget.Recommendation for accruing new resource and capabilityThe options discussed above to acquire new resources and capability to manage product portfolio for D-GSM is to hire external consultant to gain new ideas and industry expertise. Further hiring external consultant will help to reposition broadband product line effectively.Moreover, D-GSM needs to constantly identify new skill required for employers since marketing environment is dynami c and employees adapting to such changes instantly is important, therefor it is advisable to constant monitor required skill and plan to train and develop by external consultant.There is a high risk of outsourcing new resource and capability because it will create conflicts within internal employees and internal information could be considered as risk when outsourcing key resources from external environment3.6 Financial attachmentHerewith financial proposal is addressed for future budgeting purpose to acquire new capability and resource to implement effective product portfolio management.Table 1.0 Financial Consideration for new resource and capability management4.0 give PlanIntroductionTo the priority of recommendations provided above in topic 2.5, following project will focus to reposition mobile-broadband product line targeting newly identified segment with distinguish marketing mix and finally position the product as affordable product for consumers fancy InitiationThe followi ng project is selected to increase the mobile-broadband. A stable project based uprise is required. This therefore enables the management to monitor the manage performance, cost and time scales. Fore reference purpose this project will be named as mold 3G. childbed ObjectivesThe project objectives expected to be achieved by implementing project 3G are as followed,To successfully reposition Dialog Mobile-broadband product lineTo successfully create awareness to newly identified segmentsTo increase mobile-broadband trial among new segments targetedTo position the product to the new target segments using new differentiated value propositions within the period of six months.Project Scopeand creepThe project telescope refers to the work that must be accomplished to deliver the project objectives and successfully complete the project with quality, time and minimal cost (Hill, 2009). Project scope management will be used to make trustworthy that project covers all the key tasks to deli ver high efficiency of trine constraints 4 and focus of project.Further the management will resist and prevent scope creep as it will dent the achievement of triple constrains- budget, performance, and time as project creep could bring negative effects on the members (Kendrick, 2009). Therefore below matrix illustrates project boundary (Refer table 2.0).Table 2.0 Project Scope MatrixEvery project stakeholder must be educated about project scope from deviating. If there are any changes to the scope a request should be made to the project manager for consideration (Pritchard, 2004).Project TeamThe project manager will be General Manager- marketing and sales. He/she is selected for because of leadership skills and previous experience in handling similar projects. The key role of project manager is to manage the project team from initiation to evaluation stage, while leading and motivate the team towards achieving the objectives and clearly defining teams roles, responsibilities and performance, budget and time (Lock, 2007). The proposed project team structure is shown in Figure (9.0).The project team consists of seven members including staff from different department of Dialog GSM. This system will become a cross functional team for the project. Project Sponsor will be the Chief Financial Officer (CFO).According to Melton (2009), project sponsor is accountable for the delivery of the business case and to ensure that project is financially worthwhile. Project Managers and sponsors must work closely together to deliver the project and maintain control.External resources for the project team will be the outsourced marketing consultant and the advertising agencies key account manager for D-GSM for this Project. The consultant will guide the project team in implementing the project by providing training and in-depth guidance on product repositioning of Dialog Mobile-broadband.Furthermore, project manager will be responsible for driving the project team to achieve the project objectives by delegating the project tasks, proper resource allocation for the project through possible mediums and finally responsible to deliver project notify for management.Project Beginning and end datesProject 3G will span for a period of 6 months and will be implemented from 1st of July 2011 bowl the 30th of December 2011.Project Key DeliverableKey deliverable of Project 3G could be highlighted in a work breakdown structure (WBS). The top of the WBS is the project itself. The next layer or level in the structure is work packages (Lock, 2007). WBS explains the key deliverables of the project in figure (10.0).Figure () Key deliverables for project 3GProjectMethodology