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Marketing Proposal

Franco Aligaen Mhykl Nieves Jo Exel Rinon Mayurie Twatwunnaphong

Situational Analysis 1. Industry Profile/Analysis 1.1 Description of the Industry For as long as humans can trace, innovation has always been at the heart of evolution. It has allowed for new technologies to arise and as a result, things were made more efficient for the benefit of humans. The companies involved in telecommunications industry are one of the few forerunners of our world today. They have brought the world closer and has helped in the speed of industrialization of countries. In the Philippines, a country where division of land is no stranger to us, telecommunications can bring our divided country together given the funds and the support that it needs. Telecommunication innovation is a vision of a unified progressive and productive Philippine society. The telecommunications industry specializes in innovating for clients that may need their services and the way their company communicates to be upgraded. Specifically, they specialize in innovating mobile technologies and telecommunication solutions for Telecom Network Operators so that no opportunity is lost and every opportunity that is taken on is maximized to its fullest extent. Apart from providing solutions for telecom companies, the companies in the industry also provide support for Public and Private Organizations. To keep the consumers or the members of an organization of the clients satisfied, these companies continually innovate new ways the clients can serve their market. The services offered are Managed, Maintenance, Professional, and Consulting. Each service targets a specific problem that a client may need some addressing. These companies in this industry are responsible for the rapid and continual increase of the mobile technology available to the public. Today, the telecommunications industry is flourishing and is expected to grow even larger as our world becomes smaller through advancing technology. Businesses now have new ways of communicating to their consumers, private agencies now have seamless communication within the organization, announcements and warnings are readily available to the public, and ways to express oneself have increased. With the current stock market high in the Philippines, new mobile technologies, and with the help of investors will be available to the Philippine market. With increased investment on its way, the Philippine telecommunications market will surely experience a rapid increase in internet connection strength, availability, and stability. Content providers will also be able to go outside the conventional forms of media outlets, from TVs to portable devices.

1.2 Size of the Industry There are approximately 92,337,852 people in the Philippines based on the 2010 census. The size of the Telecommunications industry can be determined in three ways. It can be determined by the number of Telephone Lines there are in the country and the amount of Subscribers they have in the country, the number of Cellular mobile users they have in the country, and the number of broadband subscribers they have in the country. The data below shows the number of Telephone Lines that had been or is currently installed in the country.

If we take the year that had the most Telephone lines installed (Year: 2008, 7,371,318 telephone lines installed) the Industry, at this time installed telephone lines for approximately 7.98% of the Philippiness entire population. Currently, that figure has decreased by 0.67% and is now at 7.31%.

Based on subscribers and the data below:

The most the Philippines had as of now, was in the year 2008 with 4,076,140 subscribers to telephone lines via cable (data without the cellular subscriptions). Out of the entire Philippines population, 4.41% subscribed to telephone communications. For Cellular Mobile users, based on the data below:

The size of the Philippine population was based on the 2010 census. We estimate that the population of the Philippines has probably increased to around 95-96 million. So with that in mind, approximately 98% of the entire population has subscribed to cellular communication. For the number of subscribers the country has in broadband technology (internet connection):

In 2003, 11.8% of the entire Philippine population was subscribed to broadband technology. In 2011, that figure increased by 39.1% putting it up to 50.9% of the population subscribed to broadband technology. If we take at look at the ratio of subscriptions between the years 2003 and 2011, we can see that a lot more people would subscribe within a year as the years progressed. This meant that not only did the subscriber rate go up, but the popularity and demand of the technology too.

1.3 Growth and Decline Patterns of the Industry

In the Non-cellular side (Traditional Cable telephones etc.) The industrys growth has been fluctuating. Based on the Telephone Lines installed diagram, from the year 2001 - 2004, the industry was experiencing a decline meaning that there was less need for telephone lines to be installed at the time. This somehow correlates with the figures in the Subscribers diagram because from 2001 - 2002, the amount of subscribers increased and the change in installed Telephone Lines was very minimal. Between 2002 and 2003 however, the increase in subscribers was extremely minimal and seemed to have a negative impact on the industry because less Telephone lines were needed to be installed therefore causing the drop between 2003 and 2004 in both the number of Subscribers as well as the number of Telephone lines. However, between 2004-2006, the number of Telephones lines increased as well as the amount of subscribers. From 2006-2008, the industry experienced both a decrease and an increase however, only for Telephone lines, for the subscribers, the figures increased. Conversely, from the year 2008, the industry was undergoing a decline, subscriber data also showcased that he industry did not receive as much or more subscribers but less.

In the Cellular side (wireless telephones) of the industry, it has been experiencing a somewhat stable growth based on the Total Cellular Subscribers diagram. Having 84,619,980 inhabitants in 2003 and 22,509,560 cellular subscribers, the country went from having 26.6% cellular subscribers to a whopping 92.5% (Population: 101,833,900; Cellular Subscribers: 94,189,795). That is a 65.9% increase in less than 10 years (9 years). In the broadband side of the industry, the growth was stable, gradually increasing every year. With the ratios between the years and the subscribers increasing, this meant that more and more people found out, learned, and embraced the technology therefor causing the rapid growth of it yearly.

1.4 Analysis of factors contributing to growth and decline Being the one of the contributors in the service sector of the countrys GDP, it is inevitable that with regards to their big share in the GDP contributions, their growth will also be persistent. With the amounts that they were contributing, it only meant that the industry itself was growing. However, in the year 2009, the world experienced the Great Recession. It manifested to be a liquidity crisis in the year 2007 which eventually turned into a financial crisis. Nonetheless, Philippines still managed to have reported economic growth during this time hence the increasing growth figures seen in the previous diagrams during these years. However, it did not mean that the country failed to experience some of the economic impact of the recession, because the economy was partially based on the remittance of overseas Filipino workers, most who worked in countries directly affected by the recession.

1.5 Industry contribution to Philippine economic growth There are three major sectors that contribute to the growth of the Philippine economy: Agriculture, Industry, and Services. These three major sectors grew throughout the 1950s, 60s, and 70s but slowed during the unfortunate economic crisis that took place in the 1980s through to the 1990s. The diagram below shows the contribution of each major sector to the Philippine economy during the 1990s. Agriculture contributed 12.9%, Industry, 35.3%, and Services 51.9%. From the years 2001 to 2006, the contribution to GDP growth were as follows: Agriculture = 15.9%, Industry = 22.6%, and Services 61.5%. We can see from those figures that the contribution of Agriculture increased while Industrys slipped down by 12.7 but most importantly, services contribution increased by 9.6% pushing it up to 61.5% in contribution. This meant that compared to the other two major sectors, Services was doing well thus contributing the most to the countrys GDP growth. Telecommunications is a subsector of the services industry and was and still is partly responsible for the continuous growth of the countrys GDP. The services sector constantly raising the Philippine GDP rate, from 40.7% in 1986 to 51.9% in the 1990s, and 61.5% in 2006, implies that all subsectors of the Services sector (including Telecommunications) had a positive effect and significant contribution to the countrys economic growth. More specifically, Telecommunications accounts for 2.5% of the countrys GDP. Thats approximately around Php 267,000,000 contributed yearly to economic growth.

2. Corporate Profile and Analysis 2.1 Corporate History (Alcatel-Lucent) Beforehand, Alcatel-Lucent were two separate companies namely Lucent Technologies and Alcatel. Both were already part of the telecommunications industry since the late 19th century. Today, these two companies have merged together to form what we now know as Alcatel-Lucent. Known for breakthrough such as lightRadio, Alcatel-Lucent has proven that it can provide solutions that are worthy of a market leader in mobile, fixed, IP optics technologies, and in applications and services. Breakthroughs like lightRadio, which has enabled companies to cut cost because of decreased power consumption but at the same time, proving internet speeds that would normally be followed by high costs. Innovation is at the heart of Alcatel-Lucent, a brand of innovation that has led to sustainable, affordable, and accessible communication technology. Being a leader comes with the experience of attaining that status, Alcatel-Lucent along with Bell Labs has given the world a brand of ideas that have revolutionized the industry. 2.2 Product Line and Offering To cater to the concerns regarding IPTV, Alcatel-Lucent offers services to remedy complex problems that may arise throughout the life cycle of the product. Professional Consulting: Alcatel-Lucent offers professional and valuable advice under the Professional Consulting Services. With post-implementation in mind, Altacel-Lucent takes the Local Network Service Provider (LNSP) and gives them directions in the form of advice in Market Products, Technology Investments, and Network Operations. Consultation is crucial for Local Service Network Providers since IPTV is a relatively new technology, and these Providers will need all the professional help they can get when problems or concerns arise. Business Consulting: With new technologies at hand comes a new business model to go with that technology. IPTV carries great potential, but without a proper business model, it carries the risk of failure on the side of the Local Service Network Provider. Decisions regarding content acquisition strategy, market entry, and service mix are all part of the IPTV business model and Alcatel-Lucent would want to help as much as possible in the planning and the execution of the business model. With IPTV, there is a potential for gaining new customers that have caught interest in the IPTV product. Apart from new customers, the average revenue per user has the potential to increase given that the product is backed by innovative business plans.

Definition/Description Alcatel-Lucent works with service providers on service definitions/service evolution roadmaps to ensure that they deliver on customer, market and competitive requirements. Content Acquisition Strategy Alcatel-Lucent provides a review and comparison of available content acquisition approaches, which includes content aggregators, consultants and recommendations for working direct with content providers. Network Consulting: For IPTV to know what the Local Network Service Provider needs in terms of network features, capacity, and recovery, Alcatel-Lucent offers Network Consulting so that the capacity of the network can be determined whether it can be shouldered or not by the network. After the ability of the network has been evaluated, the corresponding video technologies are chosen and implemented. Recommendations include a reference architecture with a partner ecosystem. AlcatelLucent also helps services providers quantify the abilities of the existing network (core, transport and access) to handle launching of IPTV services: network features, capacity, disaster recovery. This service also provides a migration plan for impacted infrastructure with recommendations to mitigate gaps in critical areas. This service can detect and resolve network conditions that could lead to: Video quality impairments like freezing, pixelization, and black screen. Exceeding utilization thresholds of links and network element. Packet loss, excessive packet delay and jitter. Product Line Offering and Analysis With IPTV being a relatively new technology, it can be seen that Alcatel-Lucent is doing well in providing troubleshooting solutions for prospective Local Service Network Providers. Alcatel-Lucent bears upon itself the problems that these LNSP may face as the product launches and during the post-release period of the product. It appears to be that Alcatel-Lucent has a drive to be a reliable partner of LNSP when it comes to pre and post implementation of IPTV. With these services, companies can easily trust Alcatel-Lucent to be a safety net for launching new and innovative mobile solutions to the public. Operations Analysis and Optimization: Analyze the impact of the new services on the operational and business processes, the support However, this study is going to be focused on a product line that is not disclosed with its consumers. It is specifically going to tackle a specific product in the companys Applications 2.3 Growth And Decline Patterns of the Company


In order for us to know the growth and decline pattern of Alcatel-Lucent, we should look at their yearly sales and income to determine if the company is gaining market share in its respective industry. Below shows the total sales of Alcatel-Lucent from 2007-2012.

For the Last 5 years of its operations, Alcatel-Lucents total sales range from 14 Billion up to 18 Billion Euros which indicates a very high amount for the company. For 2007, the company gained an estimate of 17.79 Billion Euros in revenues. However, it decreased its sales to 16.98 Billion Euros at the end of the year 2008. It continued to decline in 2009 with a 15.16 Billion worth of sales. The following year was a good year for Alcatel because of a 16 Billion worth of revenues which ended the declining stage. Unfortunately, it declined again for year 2011 and 2012 with a 15.32 and 14.44 Billion Euros respectively. With their billions of revenues every year, the company still operates at a loss because of their spending. For the year 2007, the company had gained a net loss of 3.52 Billion Euros. In 2008, Alcatel-Lucent reported a net loss of 5.22 Billion Euros. Fortunately, the company was able to reduce the net loss to 524 Million Euros for the year 2009. The net loss continued to decrease in the year 2010 with a 334 Million loss. And for the first time in 5 years, the company reported a positive income for 2011 with a 1.095 Billion Euros profit with a 0.42 earning per share. Sadly, the company reported a net loss of 1.3 Billion Euros for 2012 which triggered the step down of the CEO, Ben Varwaayen. During 2012, reports say that according to the CEO of Alcatel-Lucent, they are planning to cut 500 million euros in cost for the said year. The company will cut 1,800 positions in Europe through firings and relocation.


Overall, the performance of Alcatel-Lucent for the last 5 years had been poor because of the volatile progress in terms of profit. The job cuts also reflected that the company wants to lessen cost because of their big losses every year. 3. Product Profile and Analysis (IPTV) 3.1 Profile of the Product/brand which is the subject of the research plan The IPTV is a service technology aimed at users who live life on-the-go. It is provided by Local Service Network Providers ie. Globe, Sun, Smart, Sky Cable, PLDT, and etc. The aim of this product is to bring the television experience right into the hands of the consumer. Consumers will be able to enjoy their favourite television shows without being subject to sitting in front of a television set. In our ever-advancing society, mobile entertainment has opened the opportunity for Alcatel-Lucent to innovate the IPTV technology. Users will be able to customize their IPTV experience with their favourite shows.

3.2 Marketing Mix Analyses for the Product/Brand Product Convenience is what the IPTV is all about. The focus is bringing what is supposed to be a sit-down activity into something the consumer can bring anywhere. Price Despite the fact that the product of IPTV has not yet been released in the Philippines, the group thinks that the pricing strategy should be the Market Penetration strategy. This would allow for the IPTV to be introduced to the market without scaring away potential customers because of the initial price. The actual value of the product should be lower than the perceived value so that the LNSP can eventually increase actual price in response to the projected perceived value. Place Since the product is in digital form, it will always be available to the public. What needs to be taken care of is the scope of the product when it comes to certain regions. The Philippines being an archipelago, may pose some difficulty for LNSP to ensure that the reach of IPTV goes far enough that the quality of the product is not compromised despite the distance from telecommunication towers. Promotion The Lifestyle execution style should be used for the promotion of the IPTV. It is meant that the consumer must be convinced that possession of this new technology will enhance their lifestyles. Apart from the mainstream media that offers popular

entertainment, niche markets will also be able to enjoy their favourite channels on the go. Television can now be portrayed as something that is portable and customizable in comparison the the immovable television set in our homes. 4. Competitor Profile and Analyses 4.1 Corporate Profile of each Competitor Nokia Siemens One of the leading telecommunications solutions provider in the world. Nokia Siemens aims to enable their clients(Telecommunication companies) to have an efficient mobile technology for them to satisfy their end users. Their expertise is to invent new capabilities in order to improve and maintain the high standards of mobile broad bands of their clients. They provide the worlds most efficient mobile networks, the intelligence to maximize the value of those networks, and the services to make it all work together seamlessly. Long before it was called Nokia Siemens, It was two separate companies namely Nokia of Finland and Siemens of Germany. Nokia, a cellphone brand, and Siemens being a provider and innovator of Household Appliances. The joint company was established in June 19, 2006 and began its operations in April 1, 2007. Their headquarters are in Espoo, Greater Helsinki, Finland. It is now operating in 150 countries all around the world. Similar to Alcatel-Lucent, they offer many products that enhance mobile connections for their customers and also provide services for sustainability. They have 16 categories that distinguish the use of their products namely Business Support System, Convergence/IMS, Customer Experience Management, Dedicated Networks, Evolved Packet Core, IP Partner Products, Microwave Transport, Mobile Broadband, Operation Supports Systems, Service Enablement, Small Cells, Transport Networks. Ericsson Ericsson is the number one provider of telecommunications equipment and services to mobile and fixed network operators. More than 1,000 networks in 180 countries and more use Ericssons network equipment, and more than 40 percent of the worlds mobile traffic goes through Ericsson networks. In the Philippines, Ericsson has helped shape the Philippine telecommunication landscape since 1988 when the company was set in Manila for its operations. Ericsson Telecommunication, Inc. is a local subsidiary of Ericsson Telefonaktiebolaget LM Ericsson (LME), with headquarter in Stockholm, Sweden. Ericssons earliest projects in the Philippines were for the supply, design and implementation of Smarts TACS network, Smarts LEC network and Suns Cellulars LEC network. Also, Ericsson was a major partner for PLDTs Zero Banking Program. Today, Ericsson is still the latest telecommunication solutions in the Philippines.


Huawei Huawei is one of the Global ICT solutions provider.Through their dedication to customer-centric innovation and strong partnerships, they have established end-to-end capabilities and strengths across the carrier networks, enterprise, consumer, and cloud computing fields. They are committed to creating maximum value for telecom carriers, enterprises and consumers by providing competitive ICT solutions and services. Their products and solutions have been deployed in over 140 countries, serving more than one third of the world's population. Huawei's vision is to enrich life through communication. By leveraging their experience and expertise in the ICT sector, they help bridge the digital divide by providing opportunities to enjoy broadband services, regardless of geographic location. Contributing to the sustainable development of society, the economy, and the environment, Huawei creates green solutions that enable customers to reduce power consumption, carbon emissions, and resource costs.

Indirect Competitors Cisco 20 years of commitment to innovating technology, Cisco has developed as a result the Internet Protocol (IP)-based networking technologies. Found in 1984, Cisco has prided itself in developing industry-leading products despite its small beginning in Stanford University in 1984. Core technologies such as home networking, IP telephony, optical networking, security, storage area networking, and wireless technology are provided by Cisco through two means: direct sales force and channel partners In addition to providing innovative technologies for companies, Cisco also through its sales force for large enterprises, commercial businesses, service providers, and consumers. As a result of providing for the technological needs of clients, Cisco also with its experience offers service offerings that includes technical support and advanced services, giving individuals, private and public entities easy access to information. HP HP(Hewlett-Packard) is a leading global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. Their offerings include:


personal computing and other access devices; multi-vendor customer services, including infrastructure technology and business process outsourcing, technology support and maintenance, application development and support services and consulting and integration services; imaging and printing-related products and services; and enterprise information technology infrastructure, including enterprise server and storage technology, networking products and solutions, information technology (IT) management software, information management solutions and security intelligence/risk management solutions. HP was incorporated in 1947 under the laws of the State of California as the successor to a partnership founded in 1939 by William R. Hewlett and David Packard. Effective in May 1998, they changed their state of incorporation from California to Delaware.

4.2 Marketing Mix Analysis for each competitor Nokia Siemens (IPTV Business bought by Accenture) Product Nokia Siemens IPTV is an innovation of Television Entertainment. It is an application suite that delivers channels through internet protocols and streams it in multiple platforms. With IPTV, viewers can watch whatever channel they want, whenever they want, and wherever they are. IPTV offers live television, time-shifted Television, and Video on Demand so that their consumers will be flexible with the time they want to watch TV. Price For the pricing strategy, skimming pricing is used by Nokia Siemens in selling IPTV. Since it is an innovation, this strategy helps the price to more flexible on the response of customers to the product. If the customers will not buy the initial price, the company can decide to lower down the price. Place Since IPTV is digital, the place of distribution is not a problem to the company. Promotion

Ericsson Product Ericsson provides a pre-integrated, end-to-end solution for the IPTV delivery. The IPTV delivery enables the best-in-class TV and VOD while preparing the way for the Individual TV Experience, which is the next generation of TV that emphasizes personalized and connected entertainment experiences.The IPTV Solution of Ericsson combines core Ericsson includes middleware, video processing, video-on-demand back-office solutions, asset management and media servers of on-demand content and distribution, CA/DRM, QoS monitoring, TV applications, IPTV Home Environment and open interfaces for charging, provisioning and operation and maintenance. The core component of the Ericsson IPTV Solution is the IPTV Middleware, which is the worlds first commercially available IPTV middleware that is integrated with IMS. Price Ericsson knows that pricing will always remain a key selection criteria from a customers viewpoint. However, the price alone does not guarantee the success, if the overall offerings, such as choice of channels, quality of service and premium services, do not meet the customers expectations. Place Promotion Huwawei Product The challenges of the IPTV service imposes a higher demand on QoS, reliability, security, and convenience. The existing IP bearer networks are majority built and relied on best-effort and open principles. Because of this, there are a lot of problems found in the IPTV service is directly born in existing networks. Huawei service solution on this problem is the Huawei IPTV Integration Solution which provides customers the IPTV bearer network assessment, IPTV planning integration, D2C (Day2Care), and network bearing audit in all stages. The services mentioned can help the problems concerning the IPTV development to store, schedule , forward, and play multimedia contents, reducing consumption of server and bandwidth resources and improve service quality. Price Place Promotion Indirect Competitors

Cisco Product To access media anywhere, anytime, on any device requires a medianet, which is an end-to-end IP network optimized for rich-media services. This medianet provides an IPTV platform that is network-aware, media-aware, and device-aware to deliver more personal, social, and interactive media experiences. Cisco offers the IPTV Headend which differentiates video offerings with a comprehensive solution for acquiring, processing, encoding, and managing video services. The Price Place Promotion HP Product HP IPTV is a standard-based video-over IP platform that enables service providers to deploy video that is high quality and delivers service that enables subscribers to watch live broadcasts or on-demand video content at any place, time, and in whatever way wanted. HP IPTV Solutions is enabled by high-performance HP ProLiant servers and HP Integrated Service Management solutions. The range of services help organizations design, architect, test and implement complex IPTV environments. There are more than 400 service providers that use HP OpenView software. Price Place Promotion 5. Target Market Profile/ Analyses Alcatel-Lucents target market is primarily composed of companies instead of people. Companies like PLDT, Sky Cable, Globe, Sun, Smart, Digitel, and companies of the like are a part of Alcatel-Lucents target market. They are the companies that benefit the most from the innovative technologies and solutions provided by Alcatel-Lucent. Corporate Information on the following companies:


PLDT The Philippine Long Distance Telephone Company, Parent Company or commonly known as PLDT, was incorporated under the old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928, following the merger of four telephone companies under common U.S. ownership. Under its amended Articles of Incorporation, PLDTs corporate term is currently limited through 2028. In 1967, effective control of PLDT was sold by the General Telephone and Electronics Corporation, then a major shareholder since PLDTs incorporation, to a group of Filipino businessmen. In 1981, in furtherance of the then existing policy of the Philippine government to integrate the Philippine telecommunications industry, PLDT purchased substantially all of the assets and liabilities of the Republic Telephone Company, which at that time was the second largest telephone company in the Philippines. Globe Telecom Globe Telecom, Inc. is a stock corporation organized under the laws the Philippines, and enfranchised under Republic Act 7229 and its related laws to render any and all types of domestic and international telecommunication services. Globe Telecom is one of the leading providers of digital wireless communication services in the Philippines under the Globe Handyphone (GHP), Touch Mobile, and Tattoo brands using a fully digital network. It also offers long distance communication or carrier services domestically and internationally. The company is listed in the Philippine Stock Exchange, and has been included in the PSE composite index since September 17, 2001. Major stockholders of Globe Telecom include Ayala Corporation, Singapore Telecom Inc., and Asiacom Philippines, Inc. None of these companies exercise control over Globe Telecom. DIGITEL Digital Mobile Philippines, Inc. (DIGITEL) was registered with the Security and Exchange Commission on September 18, 2001. The company was incorporated in the Philippines on August 31, 1987. The company is one of the largest providers of working wirelines in the Philippines. DIGITEL was owned by JG Summit Holdings Incorporated, one of the Philippines most diversified conglomerates. DIGITEL telephone lines are open for use in 281 towns and cities throughout Luzon through 694 regional and local exchanges. The company offers a wide range of service innovations for mobile telephony from voice, messaging and international roaming services, to wireless broadband and value-added services for consumers and businesses alike. SMART SMART Communications is a wholly owned mobile phone and Internet service subsidiary of the Philippine Long Distance Telephone Company. Smart was organized


by a group of Filipino investors on January 24, 1991. The company acquired its congressional franchise on April 1992 and was granted provisional authority to operate a mobile cellular service on May 1993. Smart then commenced its cellular service commercial operations on December 1993. Ever since 1999, SMART has introduced world-first wireless data services such as Smart Money, Smart Load, and Smart Padala. Analysis Because all of the companies mentioned above are telecommunication service companies, which are among the best of the best of the country which is widely used in the Philippines, the main devices and products of these companies will benefit most from the IPTV as being a portable and on-the-go product. 5.1 Demographics

5.2 Psychographics Review Of Related Literature The review of related literature for this study focuses on how the IPTV can be properly developed to ensure that market penetration and secure a place in the mobile technology market. This review focuses on some concepts taken from the course of MARKET1 and aptly applying it to the research and how these concepts relate to each other and the product. Boston Consultancy Group Matrix The IPTV falls under the Cash Cow category in the BGC Matrix. The reason being is that one, it is a consumer convenience good. Under this category, it is expected of the product to produce relatively high volumes of cash and profits. Since IPTV is a digital product, the investments should be kept relatively low. It is expected that the IPTV will become a consumer convenience product because of its electronic nature. Advertising Life Cycle Being a new development in mobile technology, it would be within reason to place the IPTV under the Introductory Stage of the Advertising Life Cycle. The advertising needs to reach the consumer in such a way that he sees himself with the product and imagines the product to be part of his itinerary. On the part of IPTV, the declaration of a new innovation will always guarantee to create some sort of interest, so it is important that the language used will be relevant to the target market so that the potential customers wont be driven away, but be rather drawn to the product. Product Life Cycle

New products that are introduced in the market will more often than not, incur some loss. For the IPTV to be a successful product, a lot of money must be put into advertising and promotion, while production and distribution bring down the cash value even more. In the Introduction Stage of the Product Life Cycle, it is expected that the product will incure some negative figures before it starts to grow and get those figures back. Maslows Hierarchy of Needs Maslows Hierarchy of Needs summarizes human nature and impulse. For IPTV, the product is classified under the Self-Esteem category as IPTV provides that need to be a unique individual with personal tastes, likes, and dislikes. The customization feature of the IPTV can be attributed to this concept since some people would like to identify themselves as individuals by the content they watch. This is especially relevant among niche markets. Breakthrough Opportunities Breakthrough Opportunities is defined as opportunities that help innovtors develop hard-to-copy marketing strategies that will be very profitable for a very long time. This is most especially relevant to the industry handling IPTV. Once a LNSP grabs hold of the market for this technology, the competition may prove to be difficult to deal with. Since people are very connected nowadays, the IPTV will provide a good opportunity for Alcatel-Lucent to increase the average revenue per user (ARPU).


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