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Formulating Segmentation, Targeting and Positioning strategies

The intend of this assignment is to formulate the Segmentation, Targeting and Positioning strategies, and
put up a proposal for the introduction of new services using these strategies. As the marketing Manager of
Maxis Communication Berhad, the writer will submit a proposal for the introduction of Maxis free prepaid
starter pack.
Before evaluating the STP strategies for the proposed product, the writer will provide a literature review on the
concepts and evaluate the various authors critiques on these strategies.
Maxis segment its market by splitting customer into different groups of buyers that require different products or
distinct marketing mixes. Maxis markets are segmented into geographic segmentation, demographic
segmentation, psychographic segmentation and behavioral segmentation, and these segmentations can also be
divided further into smaller sections.
After identify the various market segmentations of Maxis, the targeting strategies are evaluated. There are four
types of targeting strategies which will be evaluated in the areas of undifferentiated marketing, differentiated
marketing, concentrated marketing and micromarketing. Each of these areas has its own advantages and
disadvantages.
The positioning strategies are very important in determining a companys success. Possible competitive
advantages are identified and then the right ones are chosen. The overall positioning strategy will be selected and
a positioning statement is developed. Finally, the writer will publish the annual schedule of the program with its
marketing expenditures and conclude this work.
Effective strategies of segmentation, targeting and positioning gives an extra advantage in changing the highly
competitive environment. Thus, it cannot be denied that the use of these strategies in marketing management is
very crucial to a companys growth.

Table of Contents. Page

Executive Summary. i
Table of Contents. ii
Introduction. 1
Background of the Company and the Product Proposed. 1
Literature Review on Segmentation, Targeting and Positioning Concept. 2
Segmentation. 3
Targeting. 6
Positioning. 7
Basis for Segmentation and Targeting for Maxis. 8
Geographic Segmentation. 9
Demographic Segmentation. 9
Psychographic Segmentation. 9

Behavioral Segmentation. 9
Basis for Positioning Maxis. 11
Annual Schedule for the Program including Marketing Expenditure. 13
Conclusion. 15
References.

Introduction
In todays fast-paced competitive business environment, the telecommunication industry is becoming a fastest
growing sector, particularly the mobile market. In Malaysia the telecommunication sector is growing in a very fast
phase in line with the growth of the nations commercial and industrial sectors. The growth rate in the use of
telecommunication facilities has increased tremendously, especially the number of telephone subscribers. These
numbers are expected to grow even faster as the government plan to increase the telephone penetration rate of
50% across the country and 25% in the rural areas by 2020 (MCMC, 2007).
In any growing market, competition is one of the important elements for a company to watch for. In the Malaysian
telecommunication background, companies like Mobikom Berhad, Celcom and Sapura Digital Berhad have been
seen their company either being merged with bigger and more competitive companies or gone bankruptcy. Only
Telekom Malaysia has managed to maintain its presence in the industry. There are three major companies
competing in this sector today Maxis Communications Berhad, Digi.Com Berhad and Celcom Berhad (MCMC,
2007).
The mobile market today has become extremely competitive and service providers are moving aggressively
to attract customer by offering some attractive promotions and services. Thus, in order to win the market
share, it is important to understand the consumer perception and their passion on the service, and offer a
service that will exceed their expectation. Through this paper, the writer will submit a
proposal using the segmentation, targeting and positioning strategies for the
introduction of free starter packs to potential Maxis customers.

Background of the Company and the Product Proposed.

Maxis Communications Berhad is the leading mobile communications service
provider in Malaysia with over 12 million subscribers. Maxis business comprises of
three business segments namely mobile services, fixed services and international
gateway services. Since the commencement of its commercial operations, Maxis has
been providing a full suite of communication services on multiple platforms to satisfy the needs of individual
consumers, small and medium enterprises, and large corporations in Malaysia. In 2009, Maxis has captured 41%
of the market share and registered highest revenue of RM8.6 billion (Maxis, 2010).
Maxis' vision is to bring advanced communication services to enrich its customers' lives and businesses, in a
manner that is simple and personalized, by efficiently and creatively harnessing leading edge technology, and
delivering a brand of service experience that is reliable and enchanting. Maxis has pioneered and led the
Malaysian market in providing innovative mobile products and services. Maxis growth and strong track record of
enabling innovation, excellent customer experience and value to stakeholders have won it numerous awards over
the years. These include Asian Mobile Operator of the Year Award by the Asian Mobile News in 2008 and
Mobile Data Service Provider of the Year Award by Frost & Sullivan in 2009. Maxis was listed on Bursa Malaysia
in 2002 and then was de-listed in 2007 due to privatization offer. On 19 November 2009, Maxis was successfully
listed on Bursa Malaysia again (Maxis, 2010 and Bursa Malaysia, 2010).
Maxis continuously face tough competition from its competitors. However, not content with merely being a leader
in mobile communications, Maxis is embarking on the next phase of a transformation plan that will see it turning
into Malaysias premier integrated communications provider.

As the marketing manager of Maxis Communication, the writer will be presenting a proposal for the introduction of
free starter packs to potential customers. Currently, 76% of Maxis mobile subscriptions are on Prepaid products,
22% on Postpaid and 2% on Wireless broadband. Although Maxis has a biggest market share compared to its
main competitors Celcom (31%) and Digi (27%), the price wars are intense especially on the prepaid services,
thus Maxis needs to be competitive in continuously improving its service offered to their customers. The writer will
justify this proposal using the Segmentation, Targeting and Positioning strategies below.

Literature Review on Segmentation, Targeting and Positioning concepts.

Matching the right marketing mix to the right customer is the aim of all good marketing. Segmentation, targeting
and positioning concept is vital for this match to be achieved. Starting with determining which type of customers
groups and potential market exists, then, selecting which ones are the best to serve and finally implement a
strategy to optimize the products or services for the identified segment as illustrated in the diagram below.

Diagram 1: Segmentation, Targeting and Positioning.

This review will provide an overview of the theoretical underpinnings of the concepts and critically evaluate
the Segmentation, Targeting and Positioning strategies.

Segmentation.
Segmentation is the first step in the process and consists of partitions of the market
with the purpose of selecting one or more market segments which the organization
can target through the development of specific marketing mixes that adapt to
particular market needs. Kotler (2009) described market segment consist of a group
of customers who share a similar set of needs and wants. He cited that a company
cannot connect with all customers in large, broad or diverse market, but they can
connect by dividing such market into groups of consumers or segments with distinct needs and wants.
Lynch (1997) described segmentation is the identification of specific parts of a market and the development of
different market offerings that will be attractive to those segments. He also cited that segmentation is the
fundamental to the development of corporate strategy as some parts of markets may be more attractive than
others. Thus, careful analysis of segments and their characteristics is therefore important.
McColl (1994) described segmentation as a process of dividing a heterogeneous group of buyers into more
homogeneous group with relatively similar product needs, and through segmentation the company can serve its
customer better, compete more effectively and achieve profitability.
Regardless of the type of segmentation a marketer use, the outcome of the segmentation process should yield
true market segments" and recognize the customer differences. Segmentation is done for consumer market and
industrial market. The followings are the several different kinds of variables can be used for consumer market
segmentation:

Table 1: Consumer Market Segmentation

Geographic segmentation
Segment the markets according to the location such as town, cities, countries and regions to understand the
consumers requirements and product usage. The consumers requirements from the same Geographic locations
are often related to one and another. Geographic characteristics are also measurable and accessible.

Demographic segmentation
Dividing the market into groups on the basis of age, gender, income, occupation, education, religion, race, family
size, nationality and social class. These variables are famous among marketers as it is easy to measure and

often associated with customer needs and wants.

Psychographic segmentation
Dividing the buyers into different groups on the basis of psychological / personality traits, values and lifestyle.
People in the same demographic Group can have different psycho graphic makeup. Thus, psychographic
segmentation helps the marketer in examining attributes related to how a person thinks, feels, and behaves.

Behavioral Segmentation
Dividing buyers according to their knowledge of attitude towards use of, or response to a product. Behavioral
segments also can group consumers in term of :
Occasion defined in term of time of day, week or year. Distinguished buyers according to product use occasions.
For example, airline passengers triggered by occasions related to business, pleasure, or emergency.
Usage level segmentation grouping of people into whether they are heavy, medium, light users and nonusers of
the products.
Benefit Segmentation grouping of people seeking similar benefits, for example, buyers who seek for low price,
higher product quality and excellent service.
The industrial markets are contrast to consumer markets as the number of customer are fewer but they
purchase in large quantities. However, some of the consumer market segmentation variables can be applied
to industrial market segmentation such as demographic, geographic and psychographic segmentation. The
followings are the variables can be used for industrial market segmentation:

Table 2: Industrial Market Segmentation.

A successful segmentation must be measurable (size, purchasing power and
profiles), accessible (can be reached and served effectively), substantial (large or
profitable enough to serve) differentiable (distinguishable and respond to different
marketing mix elements and programs) and actionable (effective programs designed
for attracting and serving segments). Thus, the advantages of segmentation for a
company are as follows:
Helps in better understanding the customers needs and wants.
Better targeting and position of the product.
Encourages two-way communication among the potential buyer and the organization.
Maintaining effective relationship with the customers.
Retaining the existing customers and attracting new ones.
Improving service delivery standards.
Reducing cost/expenses on various marketing activities and increases market share; resulting in higher profits.
In certain market, the customer needs are becoming more heterogeneous over time and therefore even greater
needs for segmentation required. This leads to the cost of segmenting and maintaining the market becomes
higher than the increased sales from the segmentation process.
In general, it holds true that you cant be all things to all people, and experience has demonstrated that firms that
specialize in meeting the needs of one group of consumers over another tend to be more profitable. As described
by Kotler, Lynch and McColl, segment-oriented marketing approach offers a wide range of advantages for
businesses as well as the customers. A careful analysis of market segments enables decisions about intensity of

marketing activities in particular segments.

Targeting.
Once the segments are identified and their relative importance to the firm determined, the targeting strategy is
selected. In this process, the decision to target one or more segments is being made. McColl-Kennedy (1994)
describes the process of evaluating and selecting the target market using the following seven factors:

Table 3: Evaluating and selecting target market.

Step 1
Target a generic market
Identify a generic market the company will be focusing on a larger market than it hopes to reach, but at the same
time search for suitable target market at this broad level
Step 2
Analyze benefits desired in the generic market
Using techniques and procedures of marketing research such as the SELECT six steps marketing research
process model
Step 3
Remove qualifying benefits
Common benefits that all potential customers desire. Because everyone wants them, they are not useful for
segmentation purpose
Step 4
Group remaining benefits into segments
After removing the qualifying benefits, group the remaining benefits into segments or groups of potential customer
desire similar benefits
Step 5
Enumerate customer characteristics of segments
These gives the marketers a profile of the consumers or organizational customers based on demographic,
geographic and lifestyle variables in each segment
Step 6
Evaluate the potential of the segments
This is done using a number of tools such as market potential and sales forecasting; jury of expert opinion; sales
force composite; buyer intentions; and regression and time series analysis
Step 7
Select the market segment and an appropriate marketing strategy
the selection is depends largely on the market potential in each segment and the companys sales forecast in
each segment

Source: McColl-Kennedy, (1994) Marketing: Concepts and Strategies.

In evaluating different market segments, Kotler & Keller (2009) suggest marketers to
look at two factors the segments overall attractiveness and the companys
objectives.
Porter (1985) proposes a similar approach but also recommends studying the
companys resources and skills as reflected in the value chain, and their suitability to
target market alternatives. Aaker (1995) bases his selection criteria on the SWOT
analysis produced during the strategic marketing planning process.
Lancastre and Massingham (1996) proposed to analyze the characteristics of the market segment itself with
regards to a number of key factors such as market size, market dynamics, factors for success, competitive
structure and profitability analysis.
Selecting a target market is very crucial for a company. Thus, the writer suggests the marketers need to pick up
the right group of consumers through a careful segmentation and targeting process to determine the needs and
buying behaviour of the consumers in each segment and the differences between one segment and the others. In
other words, the marketers not only identify the characteristics of each segments but also the distinctive
excellence that is required for catering the specific needs of the consumers and the capability of the company in
delivering the products or services.

Positioning.
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the minds of
the target market. The goal is to locate the brand in the mind of consumers to maximize the potential benefit to the
firm (Kotler and Keller, 2009). Successful creation of a customer-focused value proposition is the result of
positioning, a cogent reason why the target market should buy the product. Positioning requires the similarities
and differences between brands be defined and communicated. For example, in the automobile industry
Mercedes is positioned for luxury segment and Volvo is positioned for safety.
Kerin et al. (2009) prescribe two approach for positioning a product in the market. Head-to-head positioning
involves directly competing with competitors on a similar product attributes in the same market and Differentiation
positioning involves seeking less competitive, smaller market niche in which to locate a brand.
Ferrell et al. (1998) recommends to differentiate the products from competitive offerings and then, position it so
that it seems to possess the characteristics the target market most desired. The most important element that
communicates the differences between one product and another is the brand, besides that, three other important
bases are product descriptors, customer support services and image. In product positioning strategies, Ferrell et
al. (1998) recommends the following strategies in which marketers can choose any one or all of them to create a
positive image for their products Strengthening the current position, moving to a new position, or attempting to
reposition the competition.
Gunter and Furnham (1992) prescribe the marketers to develop positioning objectives to then develop them into a
detailed marketing mix. However, Aaker (1996) recommends developing the positioning objective only after the
brand identity and value proposition have been developed. In exploring the latter, it is useful to understand Aaker's
definition of positioning is "the part of the brand identity and value proposition that is to be actively communicated
to the target audience and that demonstrates an advantage over competing brands." Kotler (1994) refers to it as
the unique selling proposition.
In developing the positioning objective, Ries (1996) described "positioning is not what you do to the product,
but what you do to the mind." Ries and Trout (1990) suggest the position is the mental angle used to enter
the prospect's mind and the role of the entire strategy is to support that tactic.
In summary, once the organization has decided which customer groups within which market segments to target, it
has to determine how to present the product to this target audience. This allows to exactly addressing the needs

and expectations of the target groups with a tangible marketing mix. Effective strategies of segmentation, targeting
and positioning gives an extra advantage in changing and highly competitive
environment.
The literature reviewed here is by no means comprehensive. There are far too many
studies on the subject matter, but this exploration is to provide an overview of the
Segmentation, Targeting and Positioning process for this work.

Basis for Segmentation and Targeting of Maxis.

Understanding market segmentation is very important for a service-oriented
company like Maxis. Thus, Maxis divided its consumer market into smaller segments to be more efficient and
effective in the provision of its products and services. The writer will focus on the four market segments in detail
and evaluate how the proposed product will benefit the consumers and the company.

Geographic Segmentation
Other than Malaysia, Maxis had ventured into the telecommunication market in India and Indonesia. The firm has
localized its products there by having local celebrities in their advertising promotions and providing services that is
adapted to serve local needs such as mobile astrology in India (Maxis, 2010).

Demographic Segmentation
Malaysia is a multicultural diverse country with 28 million populations with 30 million mobile subscribers or 106%
penetration rate (MCMC, 2009).
Maxis offers HerMaxis service for their female customers and provides mobile coupons on beauty, fitness, spa
and cosmetics products. There is income segmentation when it comes to the type of rates for its mobile services.
A package is available for customers subscribe to the minimum top-up amount because of lower usage and enjoy
the longer validity period. Race segmentation can be noticed through Maxis WAP portal dedicated to the Muslim
community where Islamic information are provided, while Chinese customers often receive discounts for Chinese
concert tickets.
For college students, special services are offered according to their needs, for example, allowing the phone to act
as a bulletin board among their friends. Finally, for younger generation, a youthful outlook is portrayed by having
music, games and sports web portals, exclusive for them (Maxis, 2010).

Psychographic Segmentation
Through psychographic segmentation, Maxis has allocated its products according to the life style of their
consumers. This ranges from travel, entertainment, traffic check, API reading to dining hotspots. Besides that,
information on stock, news and entertainment is provided to consumers who pay for these services (Maxis, 2010).

Behavioral Segmentation
Behavioral segmentation is divided into segments like occasion, benefit, user status, user rates and attitude
towards product (Kotler and Armstrong, 2006).
Occasion segmentation is obvious during the festive periods as Maxis offers lower call and SMS rate to increase
the usage. Benefit segmentation can be seen through the different types of services offered ranging from mobile
money transfer, mobile instant messaging, banking and rewards. On user status, Maxis gives a special bonus on
the customers birthday as an appreciation to their loyalty. Maxis also segment its market according to the usage
rate. For those customers forget to reload their prepaid within the validity period, a text message is sent with a
reward offer as inducement for them to reload within a stipulated time. Lower rates are also given to customers
who frequently use their mobile services. Segmentation is also seen according to the attitude towards the product.

Customers concern in safeguarding their information in the phone can request for backup service for the
phonebook and messages (Maxis, 2010).
Upon completing the segmentation, it is important to evaluate those segments and decide which segment
Maxis can serve best. Maxis main targeting strategy is through differentiated marketing. It offers different
telecommunications products aimed at defined segments. Postpaid services is targeted to high usage
pattern while prepaid services is targeted at customers who use less or requires
control over their usage.
Maxis use concentrated marketing when endorsing its prepaid segment. It tends to
use more of its resources on the promotions and advertisements for its prepaid
market compared to the other segments. Concentrated marketing is advantageous
as Maxis is able to market more effectively by fine-tuning its prices and products for
the prepaid services. This in turn makes it highly profitable (Maxis, 2010).
Recently Maxis is facing high competition from its rivals, Digi and Celcom. Thus, this
is hitting Maxis badly as it needs to compete to maintain its market position.
After evaluating the different segments, Maxis can offer the free starter pack targeting to all its Prepaid customers.
Some of the target segment that will be attracted with this free starter packs are those listed in the demographic
and psychographic segments. Currently, Celcom is offering free starter pack for schooling younger generation
through its School Of X (S.O.X) package (Celcom, 2010). Maxis can offer this package in order to stay
competitive from its competitors while increase its market share position. This can be easily achievable as Maxis
has the economies of scale with a huge subscriber base.

Basis for Positioning Maxis.

Customer needs are always changing. Therefore Maxis needs to continually innovate and move forward. In 2009,
the industry continued to see a rapid rise in customer usage and spending on mobile services. Maxis leads the
way by expanding its network and marketing strategies dramatically to deliver the experiences the customers are
expecting and stay competitive. In choosing a positioning strategy for the proposed product, Maxis can use the
existing competitive advantage that it has captured and offers the best quality of services to its consumers. In fact,
it needs to deliver more value than its competitors (Kotler and Armstrong, 2006 and Maxis, 2010).

Table 4: Prepaid Comparison Plan by Service Provider.

Operator
Celcom
DIGI
Maxis Hotlink
Package
X pax (Mid Plan)
Prepaid
EXtra

Starter Pack Price

RM 8.50

Free for S.O.X

RM 8.50
RM 8.80
Voice Call Within Network
35 sen/min
36 sen/min
12 sen/min after daily hit of RM 1 total usage*
1st min 33 sen
2nd min onwards 25 sen/min
Voice Call Other Networks
Local 45 sen/min
Adjacent RM 1.40 /min
Non-Adjacent RM 2.60 /min
*All voice calls, international roaming, SMS, MMS, data and IDD from the main credit balance.
1st min 35 sen
2nd min onwards 28 sen/min
Charging Block
20 sec
30 sec
60 sec after RM 1 Total Usage Hit
60 sec
SMS Within Network
Peak 10 sen/min
Off-Peak 1 sen/min
10 sen
1 sen only to all DiGi number after daily hit of RM 1 total usage
7 sen
SMS Other Networks
20 sen

15 sen
SMS International
50 sen
20 sen
20 sen
MMS Within Network
35 sen/50KB
25 sen
25 sen
MMS Other Networks
35 sen
50 sen
Video Call Within Network
45 sen/min
N/A
1st min 33 sen
2nd min onwards 25 sen/min
Video Call Other Networks

N/A
98 sen/min
Voice Call to Favorite Numbers
15 sen/min
15 sen/min
12 sen/min after daily hit of RM 1 total usage
15 sen
SMS to Favorite Numbers
1 sen
1 sen for DiGi
10 sen for Others
1 sen

MMS to Favorite Numbers

35 sen
25 sen
25 sen
Video Call to Favorite Numbers
15 sen/min
N/A
15 sen/min
Source : http://www.rmvalues.com/mobile/mobile_pre.html
Though Maxis offers similar services as its competitors, its company and brand image convey its products
distinctive benefits and positioning. Maxis image did not grow overnight, but it is a compounding effect over the
years that today it is rated as Malaysias most admired company since 2006 by The Wall Street Journal Asia 200
survey (The Wall Street Journal Asia, 2009).
As Maxis vision is to be a regional communications leader of choice, it needs to give higher priority to its products
and services offered. This is important as the consumers would like to benefit from higher quality of
communication and value added services. It is also distinctive in the sense that Maxis is able to offer its products
in a more unique way than its competitors. Maxis positioning statement is: We believe technology isnt all that
special, life is. It shows the brands superiority is made on its points of difference (Kotler and Armstrong, 2006 and
Maxis, 2010).
Over the years, Maxis has been developing its services in the form of product and service differentiation. Maxis
always attempts to provide speedy and convenient technical support. Maxis subscribers can make any enquiry or
reports service interruptions by calling their friendly customer service through a toll free number 24 hours a day.
Besides that, Maxis dealers nationwide are known for their exceptional quality of service. The dealers are well
trained to ensure their knowledge on the products and services are well passed on to the customers. Maxis gains
people differentiation by selecting their work force carefully and training them better than their competitors.
Competent human resources are hired to ensure they continuously perform and deliver expected results. With the
excellent customer service and availability of dealers nationwide, Maxis is able to gain competitiveness through
high quality direct distribution channels and this in return will make Maxis gain greater customer loyalty and sales
(Maxis, 2010).
Maxis products are also communicable and visible to the consumers as the form of advertising taken is very
aggressive. Maxis products are preemptive as competitors are not able to compete to the high level of technology
that Maxis has invested. Knowing the fact that customers choose products and services that give them the
greatest value, Maxis can consider positioning this product in value for money proposition. An effective
marketing advertisement with the efficient positioning strategies discussed above will ensure the propose product
will hit market and be placed in the mind of the customers.
It is very clear that the competitiveness among the service providers are very obvious from cost perspective. As
mentioned earlier, Celcom is already providing the free start pack to its younger generation segment, thus, Maxis
needs to explore this proposal before Celcom expands its offering to other segments, and Digi starts to offer this
package.

Annual Schedule for the Program including Marketing Expenditure Budget.

As the old saying, plans are nothing but planning is everything alludes to the fact that an effective planning
will ensure the success of a marketing plan. The secret of creating a high-impact marketing plan is to accomplish

the marketing strategy according to the schedule and within a limited budget. Every dollar spent should produce a
good return of investment. Marketing expenditure budget is the amount the firm
intends to spend in order to achieve its marketing objectives. The following is the
proposed annual marketing schedule for the proposed product:

Table 5: Proposed Annual Marketing Schedule.

Marketing impact can be greatly improved by using multiple marketing channels.
Prospects will likely become buyers if they read about the product in the newspaper,
television, radio and website advertisement, well marketed by the sales
representative and attractive take home brochures. The followings are the marketing
expenditure estimated for the proposed product:

Table 6: Forecasted Marketing Expenditure.

Marketing Expenditures (in RM)

Quarter 4' 2010

Quarter 1' 2011
Quarter 2' 2011
Quarter 3' 2011
Salary
300,000
240,000
180,000
60,000
Administrative Expenses
150,000
100,000
100,000
100,000
Public Relation
50,000
25,000
20,000
20,000

Print Advertisement Newspaper & Magazine

2,400,000
1,500,000
1,200,000
900,000
Radio & Television Advertisement
1,500,000
1,200,000
900,000
600,000
Tradeshows
180,000
120,000
90,000
60,000
Event Sponsorship
300,000
240,000
180,000
90,000
Travel & Accommodation
150,000
90,000
60,000
30,000
Direct Marketing
180,000
120,000
90,000
60,000
Online Marketing

80,000
60,000
60,000
60,000

TOTAL
5,290,000
3,695,000
2,880,000
2,020,000
Market research firm, The Nielsen Company Malaysia published its finding on the Malaysias advertising market in
which the mobile telecommunication companies are in the top 10 advertiser list. The companies such as Celcom
spends about RM69 million, Digi spends RM61 million, Maxis spends RM44 million and Telecom Malaysia spends
about RM36 million for their advertisement campaign and these companies are ranked third, fourth, seventh and
ninth in the top 10 advertiser list (Nielsen, 2010).
It is very obvious that the advertisements play an important role in penetrating the target market and create an
image to occupy a distinctive place in the minds of the consumers.
Thus, investing large amount of money in the advertising activity will ensure a fruitful return.

Conclusion.
In summary, we can conclude that the segmentation, targeting and positioning are the key factors for any services
or products to be successful. Segmentation outlines the companys opportunities, but target marketing is where
the marketing manager makes money for his company. Turning the segmentation opportunities into real markets
is the main focus. Thus, a company has to figure out the best way to position itself for competitive advantage.
Positioning involves implanting the brands unique benefits, and differentiation in customers minds.
Maxis are using market segmentation to focus on the market that has higher potential of purchasing its products. It
has divided its market into various segmentations so that it is able to reach the target market and satisfy the
needs of its potential customers.
As the competition between telecommunication companies are growing, Maxis needs to regularly review its
current position and reposition the products in more competitive way to stay competitive in this challenging
market. The introduction of Maxis free prepaid starter pack can be easily achieved as Maxis has the economies of
scale with a huge subscriber base. Besides helping to retain the existing customers, this will also help to attract
more new customers from low-income groups and ensure Maxis as the preferred choice for many customers.

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