This assignment is about DIGI Telecommunications Sdn. Bhd. (DIGI) company's strategic analysis of its daily operations. Segmenting, targeting and positioning will clearly show that how DIGI company segments its customers to different types of segments, then they targets those market that will provide profits to the company than lastly positioning them. Then SWOT analysis will provide clear details information about the company's main strengths and exploit them through opportunities, then understand the company weakness to avoid incoming threats to the company. Just to survive within the competitive market, DIGI should also learn competitors marketing strategy as well so that they can counterattack them just like chess strategy.
A situational analysis is where the DIGI Telecommunication Sdn. Bhd. (DIGI) provides the operation of searching an important factor to accommodate the external contingency and internal capability. Then a choice should be decided to overcome all weaknesses and threats along with maximizing the company's strengths and business opportunity.
SEGMENTATION TARGETING & POSITIONING (STP)
In order to survive running a business, it is crucial for DIGI to know their market segmentation, targeting and positioning so that DIGI can target their customer accurately and efficiently. After segmentation, targeting and positioning, management will then uses the most appropriate strategies to achieve the company's goal even faster.
At this stage, DIGI will have to differentiate their customer into different segments based on their common need or their response to marketing action taken by DIGI.
Each of these response will them decide which strategy mix will be used by the company.
There are a few ways to differentiate market segments, like demographic, psychographic, behavioral and geographical location. For DIGI, is best to use either psychographic and geographical location segmentation. In psychographic segmentation, customers will then based on the social lifestyle like their daily lifestyle, social class and individual attitudes. DIGI in this section can differentiate customer to high income or lower income customer. In geographical segmentation, customer will then based on their behavior like prior purchases and brand preference. In this section, DIGI may provide phone packages along with well-known brand hand phone like Samsung, Apple and Sony.
After segmenting customer into different groups, DIGI now will have to choose their targets. There is no strategy suits all kinds of segments, so in order to be effective and efficient, development of the correct strategies is very crucial. There are three general strategies for target marketing and they are undifferentiated targeting, concentrated targeting and multi-segment targeting.
In this situation, the appropriate targeting for DIGI to be used is multi-segment targeting. In this target is being used because DIGI has to focus more than two segments and for each of the segments, different strategies must be applied. In this targeting, there are many benefits, but it also quite costly, as it needs more efforts from management, market research and also new promotional strategies to attract more customers.
In this stage, positioning is where DIGI will have to develop a product and provide brand image into the minds of the customers. It also involves advancing customer's perception to know what does customers experience. DIGI always reminds their customers that choosing DIGI is the smartest choice. DIGI is also well known for yellow man and the logo sign is yellow. To show the unique of DIGI, even the store is painted yellow and it really strikes out the customers view.
An effective positioning includes a deep understanding of the competitors' products as well. DIGI should differentiate their advantages to excel among the competitors.
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Mumtaz Abdul Hameed , Steve Counsell , Stephen Swift, A conceptual model for the process of IT innovation adoption in organizations, Journal of Engineering and Technology Management, v.29 n.3, p.358-390, July, 2012
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