EXECUTIVE SUMMARY Astro Malaysia Holdings Bhd. is an investment company, which engages in the content, media, and entertainment businesses Its activities include television services, radio services, film library licensing, television content, creation, aggregation and distribution, magazine publication and distribution, multimedia interactive services, and home shopping business. The firm operates through the FIVE segments. Astro is the south East Asia's top cross media worker by means of Direct-to-home satellite TV services in Malaysia, Brunei, Singapore, Indonesia and other parts of south East Asia. Being the only dealer of Direct-to-home satellite TV services in Malaysia. Operation of this organization are done in All Asia Broadcast Centre, which is complete digital broadcasting and production center in Kuala Lumpur.Majority of the organization revenue comes from the subscription of its pay TV service and others from the television and radio advertisement and the allocation of its content assets. It also has its investment in a disburse TV and radio channels in India For target segment, we choose THREE out of FOUR which are Demographic, Psychographic and Behavioral. We choose these three because: for demographic (Malaysian household, 15-64years old dominant 63% which record 3.5 million sale in 2015), for psychographic (group consumer with high resources and experiencer), and for behavioral (relaxing programs and heavier user of HD service) Based on this study, we identify the issue of “Brand management” We also find out TWO main PROBLEMS which are: poor customer service and negative brand perception Here, we come up with solution from TOWS strategy : PRODUCT DEVELOPMENT (Action Planstro astri ACKGROUND AND COMPANY PROFILE + Astro Malaysia Holdings Berhad is a public company, leading content and consumer group in Malaysia and Asean. + Wi cus h, i read and sho ? ou D. n as th It Lee ale backgrounds, all with somethi ue to offer Based on 2012 statistics, it is estimated that Astro L contributed close to RM4.6 billion to the country’s Gp. tro astrPRODUCT AND SERVICE OFFERINGS 1. Astro TV Channels: * Offers 184 TV ee with 73 Astro-branded channe with i y ite T x ) * pl al muse 2. TE ., il s Offers 9 FM terre ee 9 FM terrestrial radi adio station with around 12.9 million listener ‘weekly and 3.9 millions unique visitors per month over terrestrial and digital platforms respectively.PRODUCT AND SERVICE OFFERINGS 3. Astro digital publications and print magazines: * Astro Digital is the to ocal publisher on mobile 4. Astro Advertising : * Offers advertisement services to various companies and organisations through its TV channels, publications and digital offerings.ASTRO TV Focusing on : ASTRO TV cay ay ao ae tase Contribute the most revenue to Astro year by year and it keep mother increasing oe Srrnaenpten sorrié Orr 1OFrIs 20RMI5 SORTS 4arvis [Snuree : AMH analysis presentation 40F¥15) Television segment represent 94% Revenue of total revenue in year 2015 “Television Radio Other (Source: Astro Annual Report 2015}TARGET MARKET In the television segment, the target customers is Malaysian households with TV sets (i) Household penetration increase from 56% to ha a e057 incr illion to 3.5 3.442 a: tf ann. repos) * Based On Demographic Se * Based On Psychographic Segmentation * Based On Geographic Segmentation * Based on Behavioral Segmentation PAY-TV | HOUSEHOLDS PENETRATIONWHY CHOOSE THE 3 SEGMENTS? 1) Based on Demographics Segmentation - Malaysian household (15 — 64 years old) dominant 63% which record 3.5 million sales in 2015. (sources: Astro Annual Report 2015) HOUSEHOLD PAY-TV PENETRATION HOUSEHOLDS 2015 2018 3.510 3.4422) Based on Psychographic Segmentation VALS Segmentation System 1. Customer motivation (horizontal dimension) * Group consumer with higher resources. * Experiences — Young, enthusiastic, and impulsive people who seek variety and excitement toward entertainment and media in Astro.3) Based on Behavioral Segmentation * users enjoy relaxing program, heavier user of HD service, growth of value pack subscription users * More users tend to subscribe to value pack as the living cost is increase. Syencdio 000s) S-yonch Q oom Esyeometiony PEE Ts a ae ee Se «ce ee SHEEEE 8 aH = . tis 2 7QM 4Q14 iQ) 2015 3Q1F 4015 3ais saa tais x ¥ ais! ultieoom yoo) STO cowntaads oon: 293 san oul 3OM 414 1015 2015 2015. 4015 1Q15 4Q15Marketing Strategy (Positioning & BranMARKET SEGMENTATION DEMOGRAPHIC (i) AGE Malaysia has a young population (>65% of our Population are aged between 15-64 years old) 15-64 years old Working age refers to those who Ssctpantton are between 15 to 64 years age group (Source : Department of statistic) wos wos 7-17 years old = an Astro Tutor TV — primary and secondary school soo: students on | m0 4-9 years old oe 08: Dunia Ceria - region’s 1st kids social network (ii) GENDER — Male and female (Source: Department of statistic)MARKET SEGMENTATION ‘Mean Monthly Household Consumption Expenditure by State, IEOGRAPHIC (i) states Urban area- more likelyto watch international sports tournament/high consumption expenditure Rural area - more interested to watch Malaysian sports tournament/low consumption expenditure W.P. Putrajaya recorded the highest mean monthly household consumption expenditure followed by W.P. Kuala Lumpur, Selangor, Melakaand Johor. The other states recorded the mean monthly household consumptien expenditure below the national level (ii) COUNTRY Malaysia, Brunei, Indonesia, Singapore ‘Malaysia, 2008 ané 2014 ‘Sustes “we Ee is a 5 ——!-"~ eo z — = oo elie oe wee — aed aa ed an _< sa 2 —_ a 1008 itn = — ess = a = sign ed am a ins reco em fu ae um coi a tom, oe (Source: Department statistic, 2002)MARKET SITUATION Price analysis Source: Astro website ‘Onlinebundle |* Pack: Family HD= RM 60.37 /monthly * Pack: Family pack + Learning + kids = RM 61.43/ monthly + Pack: Family + Learning +Variety = RM 61.43/ monthly M1 69.91/ monthly Pac! Family + Learning + Veriety + Metr Valuepack | + _Nilai Pack= RM &4.80/ monthly | + Namma Pack = RIM 84.80 / monthly + Web Pack= RM 84.80/ monthly * Fans Pack=RM 104.94 / monthly + StarsPack= RM 104.94/ monthly Superpack + Superpack 1 =RM 146.28/ monthly * Superpack2 =RM 146.28/ monthly * Superpack 3 = RM 164.30/ monthly + Superpack4 = RM 146.28 / monthly Superplus = * Super pack plus 1=RM 188. 68 / monthly pack |* Superpack plus. (Mi 188.68 / monthly Super pack plus 3=RM 188.68 / monthly Super pack plus.4 = RM 241.68 / monthly Astro offer various package by different prices according to the custamers’ affordability starting from the cheapest pack of FamilysMustika (RM56.08) to the expensive pack of Super plus 4 (RM241.68)MARKET SITUATION Price analysis (Advertising + Publication) Source : Astro ftadio report Production #4 x Creative Version (Web & Mobile} (800 x 600 & 300 x 250) *1xVo 1x Scripting (Complimentary) Lx Recording & Mixing & Studio For more than 4 language, an additional charge of RM 1,000 per language is applied. Price = RM1855 Video Simple video (1 video only) Price = RM 8,480 * 1. Camera, Basic Saund, Studio shoot, includes Changes X 2 Medium Complexity (4 Video only), Price= RM 12,720 + 2.Camera, Basic Sound & Lighting, within Klang Valley, includes Changes X 2 Complex video (1 video only), Price = RM21,200 > Event Coverage /Storyboard-hased Shoot, Director & Producer, Rehearsals & Location Reccee, 2.4 Cameras, Basic Sound & Lighting Includes Changes X 2 Event live streaming, Price = RM10,600 #1 Camera (1 Angle}, Sound & Video Setup, 5 Hou's HD Streaming, 15Gb Bandwidth, 4 man team TV advertising income shows a strong growth with total share of TY adex from 31% in year 2014 to 33% in year 2015 (Source - Astro annual report 2015) ‘8) Value Packs Take your pick from the best Malay dramas, Indian reality series, exciting TVB dramas or international sports with Astro Value Packs Watch them all in HD at a deal you cannot resist! ® NilaiPack :RM 84.80 per month :Save RM 31.64 Valued at RM 116. 44 ® Namma Pack: RM 84.80 per month ‘ Bo Stars Pack RM 104.94 per month : Save RM 31,75 Valued at RM 136,69PROMOTION MIX SITUATION * Promotion mix encompasses more than just advertising and public relations. Sales promotion, personal selling and direct marketing are all aspects of promotion. * Astro Circle, a loyalty, promotional programme, has been enhanced during the year. Apart from providing access to exclusive on ground events, it now also incorporates a point based rewards system, which can be redeemed for many unique experiences.Sales promotion Advertising Sales force Public relation Direct marketing PROMOTION MIX SITUATION ‘Astro do a lot of short-term incentives to encourage the purchase ofAstro product such as free Astro decoder with unlimited time warranty, only pay RMS0 installation to any place in Malaysia and ete. (Astre website) Astro's advertising platforms covering TV, radio, publicationsand digital Astro Publications has released the digital formats for six of its magazine titles: Style, Car, InTrend, FHM, Men's Uno, and ifeel. The di offer interactive content with videos and current information through updates every other day. al versions will Astro also use sales force directly to sell their product to the end user. Sales force marketing more efficient because Astro can directly promote and sell their product to the customers. Sales force represents a long-term commitment between customers and Astro. Astro involves in many CSR activities (1)Lifelong Learning -Kampus Astro bersama Komuniti Sekolah, AStro Kasih and Astro Scholarship. (2) Commnity development Astro Hostel, Astro Kash EkoVillageand NJOI, (3) Sports and ‘Wellness - Astro Kem Bola ad Kem Badminton Astro. (4) Environment- Beautiful Malaysia Longest Underwater Clean up and |SO14001 Environment. Astro use direct mail to communicate with the customers such as reminder of bill & paymentand newsletter.(i) DEMOGRAPHIC ENVIRONMENT * The majority of the population in Malaysian id mase up by three main ethnic which are Malay, Chinese and Indian. In year 2015, the total population in Malaysia was 30.8 millon which is the highest for the past 5 years (Source : Malaysia Economic Outlook, 2016). Besides that, Malaysia have more than 65% of younger population which between 15-64 years old (Source : Department of statistic) * Median monthly household income for Malaysian in 2014 also increased to RM4,585 than RM3,626 in 2012 (growing 11.7%) (Source : Department of statistic, 2014) * For Astro, they will targeting the Malaysian household (all ethnic) either male and female which age between 15 to 64 years and target a users with rising income which seek lifestyle, variety and excitement. oH 2012 BOS oe 2B ica ili 21205 308(iii) ECONOMIC ENVIRONMENT (Cont..) * Unemployment rate in Malaysia for year 2015 is 3.3% which is the highest compare to the previous year thus suggest that the unemployed will have less purchasing power and less disposable income. As Ringgit Malaysia weaken against USD, it was expected that the Astro content cost is going to rise up again in the following year. The loyalty of Astro customers will be tested whether they would switch to a cheaper Astro packs or terminate Astro and subscribe to other competitors. Malaysia Economy Data so.282 1.909 40.785 70.797 40: 53 55 a7 60 950 os a4 78 Oo Ge Inqusteat Progucton jannuat variation ia re ee ee) (asta ae a0 8028) (Source : Malaysia Economic Outlook, 2016)(v) TECHNOLOGICAL * When old industries ignore new technologies, there is probability that the business will decline. * Astro already launched the first High Definition (HD) broadcast in Malaysia in December 2009 under the brand Astro B.yond. The recent trend shows that there are high demand on HD services from the customer compare to the previous years before. * However, Astro still faces ongoing risk from content piracy and pirated cable TV over the past few years which is the threat to their operation. This shows that competitor can copy their product and have a greater innovation whether it is legal or not. * Astro's customer still experience a broadcast failure during the bad weather for this past 10 years and yet it is still not being solved.SWOT RENGTHS 51 Strong brand awareness $2 Diverse business portfolio 53 Government backing $4 Joint venture with Maxis (IPTV) $5 Strong cash generation 101 The demand for HD service are increasing 02 increasing demand for live coverage of sport events ‘03Pay TV industry keeps growing (04 Collaboration among TV makers 05 Household rising income 06 Video game market 07 International expansion(vii) NEEDS AND TRENDS (cont..) Market growth 1) Consumers are increasingly seeking more personalized and niche content, diverging from old ne i 2) As p bey p nin th rging to digi vertisin; 3 ss cortmues to enhanelisigalmeta such Astro On the Go, Astro Go Read, Astro Go Play, Astro Self Service, Astro View, Astro Circle and Raku.STRENGTHS Strong brand awareness Astro have highest traffic site with 28 million page views, and 7 million unique visitors (AMH 4QFY15). The top-of-mind brand amongst Malaysians. S1 | Product/ service 52 Product/ | Diverse business portfolio Astro Malaysia Holdings Bhd. engages in the content, media, and entertainment businesses, Astro have four core business which are the Astro TV, Astro Radio, Astro digital publication and Astro advertising. astro astro astro astro ON-THE-GO ae SB Government backing Khazanah which are the government strategic investment fund department holding around 29.3% share of Astro. Therefore the Malaysia government are protecting Astro TV (Retrieved from Khazanah official website)Wi W2 wa wa Product/ service Price Product/ service WEAKNESSES Poor customer service Most of the Astro subscribers have a bad experience with customer service and feel disappointed with Astro (Retrieved from Astro Facebook Official Page) Poor brand reputation from customers Astro TV associate with negative brand reputation because Astro keep repeating the same show & movie again and again even they pay for premium package (Retrieved from Complaints Board Astro), There is also a case of hidden charges without notifying the customers and during bad weather, customer suffered broadcast failure and interruption to its service. Content costs increase Astro's content cost constantly increase from year 2012 until 2015 and if the content costs increase significantly, this could negatively impact on Astro's earnings (Source : AMH 4QFY15) Astro depends heavily on TV subscription for revenue 94% revenue of Astro are come from the TV subscription. (Retrieved from Astro Annual Report 2015)O1 o2 “03 Product/ service Product/ service OPPORTUNITIES The demand for HD service are increasing HD service have become really affordable and the picture c sharper than before. The demand also increase since SON’ blue-ray system (Retrieved from article “The demand for HI Dr David Harrison) | Increasing demand for live coverage of sport events There are high demand to watch variety of sport shows in customer wants to see a live coverage of local and inter sport, The more sport show available on Astro, the more ¢ consumer will subscribe on Astro Pay TV industry keeps growing According the analysts Media Partners Asia (MPA) the Asi pay-TV industry will grow at a 6.6% average annual rate frc to 2019 (Retrieved from Asia Pacific Pay-TV & Broadband 2015 at Media Partners Asia).OPPORTUNITIES oa Collaboration among TV makers For example, LG & Sony where Sony relies on LG for their LCD sereens. Because this product is a new technology, well it is waste of time to test which content provider will suit with this new TW smart, Astro should join this alliance by becoming their exclusive content providers. 05 Household rising income The rising incomes of the Malaysian household lead to strong purchasing power especially for middle class. It could influence users to spend more on entertainment, branded channel and lifestyle. 06 Video game market Malaysian consumer spending items more an video games and the trend is expected to continue until year 2019 (Source : PWC Global Entertainment, 2015) il 07 International expansion Beginningsolely in Malaysia, Astra is currently available in Singapore, Indonesia and Brunei. Astro should continue to invest in new territories to reach a wider audiencein THREATS Increasing free live TV on internet Users can watch movie or show in internet via Youtube, website and many more. It can be threat to Astro because a lot of users are attracting to watch movie and show via internet for free. (Retrieved from article: The future of Television by Aditya Pisharody) T2 Intense competition With the deregulation of government policy, there are more company getting a license and enter the Paid-TV industry like HapyTV, ABN, DETV and so on. (Retrieved from SHRI GANESH’s Blogger). The recent one is Mytv which is the collaboration between company under Bukhari and RTM. The starting cost is only RM200 which is cheaper than Njoy and can be a threat for Astro _to maintain their customer base. T3 Price Tax changes GST issue is one of the reason why the fee keep increase. It will weaken the customer sentiments and the users are looking for other alternative to substitute the expensive Astro,Shes Syesow oping hte morerorey Fe aR ako Smee sarpresrs 522900) yet canes he a 1s ae aot wai ronan ‘= Ase ob ouarCjat ane uty ee coutrurmarin ‘ar basta a. ta, ine Raph hp Date aa hak: jaineas tang ttt ise wNORE IB Se Senora cnzsatenapneen ones ons ese 208 hommes ryan ache? me neon EURO 278 wena DL une ELAO me Us at Way 2ee5er = Sure rane ston Rane Pts sian ert ‘eresatchdig' gee rere ISSUE JounHO Avr, te wee advesiarnanisin HD, buLyou ony provides ‘@annel in 5D qual? As weatl bend uk Mchetecn channel ar6a3y auaiabie nO ong agobut Aa any prove he channel SD plus ‘Rone brermowon (P52 al Pe me Hale. nat asancolnmeat. Ube Reoiy- 92 Way? at ian 3 AaoO rah, Trancyu eye tesa wl an rs our escort a mtpectan duparmantir Mer SMEreR, ey hw Reniy My 7 areataTelevicion Poor deal wi Asiro monovely PROBLEM 1 CUSTOMER SERVICE ¥ Service cycle time (time from service request to service receive) ~ Information (timely/accurate answer for any problem) ¥ Service flexibility (ability to solve unusual problem) vy Post sale support (efficiency in providing technology support/repair) ¥ Payment (inaccessibility, long queue, timing) | beeras . PROBLEM 2 NEGATIVE BRAND PERCEPTION y¥ Technical charges (customer very frustrated and dissatisfied) ¥ Bad service (signal unavailable even no raining/ customers cannot enjoy watch television because suddenly Astro terminate that channel withoutMARKETING OBJECTIVES 1. Achieve at least 80% excellence customer service rating each month (Poor customer service) 2. To increase the number of enquiries from our marketing communications activities by 15% by the end of the year (Negative Brand Perception)FINANCIAL OBJECTIVES 1. To growth rate in ROE! of customer service of 20% by the end of year 2016. (poor customer service) 2. To achieve 15% growth in revenues and earnings within the next 12 months. (negative brand perception)(S1,S5,05,06) LISTS OF STRATEGIES SO Strategies Introduce domestic video game streamingto consumers. Astro already have a strong brand awareness in Malaysia which also led to strong cash generation year by year. Astro should use the cash excess to partnership with global leading console game subscription service in order to introduce the video game streaming TV experience. The app should offered along with other prime video and music applications to add high value on the gaming experience. Example : Partnership between GameFly and LG (S1,54,05) Collaborate with Maxis by Introducing more package of add on and reward. Maxis is the only network that installs redundant fibre connectivity and extra fibre back-ups while Astro already have a strong brand name of pay TV service. Astro should introduce more package of add on under Maxis and also come out with reward incentive. With the rising income of household, it was expected that this target market will spend more on entertainment especially on their smartphone. To appreciate the customers, Maxis can offer some reward to the customer such as small gigabytes data or Astro-Maxis renewable point. The point later can be use to redeem voucher, movie or any games app. Example : Collaboration between Netflix and Optus(82,55, 01, 05,07) SO Strategy (cont.) Join alliance and become exclusive content provider for Smart TV HDR-compatible hardware for new TV and HDR content is needed in order for customer to get the picture quality upgrade, HD service have become really affordable and the demand also increase since SONY launch blue-ray system. Because the product is new techriology, it is waste of time to test which content provider will suit with this new product. Astro should join this alliance by becoming their exclusive content providers and have the opportunity for international expansion, Example : Amazon become content provider for LG and Sony smart TV (S2,01,03,07) Partnership with world leagues and helda pay-per-view events There are high demand ta watch variety of sport shows in TV and customer wants to see a live coverage of local and international sport. Due to certain regulation on the international events, sometimes Astro only can broadcasts the final or highlights. Perhaps, Astro should partner with world leagues to air the entire season and also held a pay-per-view events like UFC and boxing matches. Example : Amazon Fire TV and Fire TV Stick have full access to all UFC Pay Per View broadcests via UFC app(W3,01,02,03) WO strategy Reduce and remove the unprofitable channel and focus on high subscription package like sport event show in HD Astro should eliminate the low subscription channel to reduce cost and focus on the popular channel like sport shows with HD. If contentcost is greater than target range set by management, there could be a potential downside to Astro earnings in future. | (w2,02) (W1.W2,W3, O1, a2) Strengthen online customer service programs Astro should strengthen the customer service program especially in online technical support to customer like live chat, 24 hours call line and email to better communicate with customer and help them to solve their problems. ‘Online tools can save money on implementation, ongoing platform and service costs, and employee task time. Product development - Conduct R&D for better product customer-focus, technology and greater front line staff Astro need to invest in R&D programs to come out with better product customer-focus which means that the decisions about the product are made based on aligning customer needs and wants with the overall goals of the Astro, R&D is needed in field of technology to reduce the broadcasting failure, stability in connection and training program for customer service staff.{51,52,55;12) (54,56.71,T475) (s3,74,75) ST Strategies Enhance Brand Equity Astra can use the advantage of strong financial and diverse business porttolia to provide competitive price with relevant promotion. improve relationship with customers by increase the program of ads and public relations strategy. As well as expanding in social media activity to sustain strong brand loyalty among customers. Thus, it will enhiarice the brand equity in order to compete with other competitor. Improve Technology and Innovation Astro can use its experiences with Maxis for integrating (IPTV) and use strong cash generation to engage and develop new technology especially in term of stability in connection and coverage. Astro and Maxis can collaborate together iby sharing their expertise in innovation process to offer the best value in entertainment and high speed broadband to customer. Enforce the regulation to protect Astro from the threat of pirate cable and devices Recently, pay-TV piracy or hacking is happening now. Pirated cable TV has. become more material over the past few years. Astre should use their privilege with government to enforce the law effectively. it is because pay-TV piracy and pirate cable is against the law.RESEARCH : EMPLOYEE TRAINING | Budget Responsible ACTIVITY Background * identify training needs RM200,000 R&D team: applied research =| * observation & interview: + collection data & generate result Selection of * role playing RM150,000 R&D team, HR method * case study team * mentor mentee program + on the job training Selection of + oulscurcing professional trainers RM100,000 HI earn trainees & * selection front line sales foree trainers: ng period — | + off job training | RM250,000 HR tearm Evaluation of * Evaluation process onthe selected — RMB80,000 HR team, R&D training employees jean ot