DiGi - AB112 case (self)study

DiGi is a mobile telecomm service provider in Malaysia, founded in 1995. It was the first in Malaysia to launch and operate in a fully digital cellular network. It is the smallest and youngest player in the Malaysia telecomm market, competing with Maxis and Celcom. DiGi prepaid has the most number of prepaid mobile phone customers in Malaysia as of June 2006. Prepaid mobile market in Malaysia is quite different from that in Singapore as post-paid mobile plan is not as common there and a typical Malaysian teenager may hold up to an average of 2 prepaid numbers. Inter-operator SMS and call rates are on average 300% more costly and thus, many consumer will choose to use what most of their friends are using. Consequently, switching cost is high and consumer loyalty in the prepaid market is highly valued.

DiGi's marketing strategy
Positioning - Being Strategy
Segmentation was done based on demographic attributes. and DiGi seems to be targeting at teens' mobile market with their increasing spending power and profitability. Positioning deals with issue of how target market perceives it. In facing two giant competitors (Maxis, being the largest mobile phone service provider and Celcom, subsidiary of Telekom Malaysia, monopoly of Malaysia fixed line telecomm service), DiGi positions itself as the fu-yoh service provider. In the beginning of their advertising effort, tagline such as "It's time to change" was used. Later on, pioneering in offering many kinds of consumer benefits(esp those in prepaid service), it managed to capture the mindshare of most Malaysian teens, substituting Maxis the previous "cool" prepaid service.

Differentiation - Core Tactic
To yield competitive advantage, DiGi focuses mainly on its prepaid services.
- First prepaid service provider to introduce the new generation prepaid services which include Quickmail services, Voicemail and International Roaming.
- The first operator in the Asian region to commercially launch General Packet Radio Service (GPRS) services on both prepaid and postpaid platforms.
- The first mobile communications service provider to launch Multimedia Messaging Service for both its prepaid and postpaid mobile customers in Malaysia
- Flexi e-load(reload at any amount above RM5) and Talktime Transfer(sharing a fixed denomination of RM3 to friends and family's DiGi account) are DiGi's two first-of-its-kind prepaid services that offer greater convenience to customers.
- First of its kind in Malaysia, DiGi together with MTV Networks Asia launched its new youth service package. [FREE unlimited SMS to Friends & Family numbers all day long, FREE unlimited MTV downloads, FREE daily MTV gossips via SMS, an exclusive WAP portal, exciting web portal, and special invites to parties, movies and concerts]
- Introduced one low, flat rate for calls to anyone, on any network, any time, anywhere.
- Lower price for start-up kit and rates compared to its competitors

Brand - Value Indicator
DiGi. "Always the smarter choice".
In year 2006, DiGi launched one of the most successful branding campaign in Malaysia. Entitled “DiGi Yellow“, and taglined “DiGi’s WIDEST Coverage. Always with you." The commercials incorporated an upbeat theme song "I Will Follow You". Public response to the campaign was very positive as "I Will Follow You" had become a catch phrase among the Malaysian public.

then now lets look at some of their interesting promotion methods
1. Interative and innovative website
2. Damn creative Television commercials featuring the Yellow Coverage Fellow (YCF [pictured]) (or youtube here)
3. YCF - "I Will Follow You" CD Single in English, Malay and Mandarin. co-released with Warner Music Malaysia.
4. First Malaysian branded entertainment TV programme, Ejen 016 (comedy aired on TV3)
5. YCF friendster profile (!)
6. YCF blog (!!)

Anyway. DiGi lost in the bidding on both 3G and WiMax license. while Maxis and Celcom are already offering 3G plans. Lost the chance to continue with its "always the first" position, will DiGi lose its competitive advantage against the other 2 operators? Perhaps no. It wasnt the firstmover in Malaysia telecomm service remember? Furthermore, 3G is still quite a new technology here and havent been fully developed. It should now continue to focus on the prepaid market that it has already gained a substantial value while trying to have breakthrough in the post-paid market.



Credits: Wikipedia. NBS Ab112 notes.
Solely for shioksendiri purpose.