Singapore Cable Vision (SCV) is Singapore's fastest growing media provider and is a pioneer in subscription TV services.

Owned by STT Communications (32%), MediaCorp (41.3%) and SPH ( 26.7%).
SCV's mission is to enrich their customers lives by providing world-class entertainment, information and telecommunications services through an interactive broadband network.
SCV completed the construction of its island-side broadband network in Singapore in September 1999 and was designated a public telecommunications licensee in April 2000.

Market Research

Market Environment

In June 2000, SCV received a public telecommunications licence from the Infocomm Development Authority of Singapore (IDA). As a result, SCV became the third company in Singapore to be made a public telecommunications licensee (PTL) as recognition from the authorities of SCV's broadband cable network as a nationwide network infrastructure in Singapore.

Unlike other new players in the telecommunications sector, SCV's island-wide broadband network, built at a cost of S$600 million, is a ready-made network for running telephone services. The network, completed in Sep 99 already carries multi-channel cable TV signals and SCV MaxOnline, its broadband internet access service launched in Dec 99.

In SCV's effort to provide its customers with the most consistent level of service possible, it has capitalised on the liberalisation of the telecoms sector by signing on with three bandwidth suppliers to provide its international Internet connectivity. In August 2000,
SCV revealed that it now has three Internet bandwidth suppliers - UUNET, a WorldCom Company; Singtel and Starhub - reinforcing SCV's broadband connection to the Internet.

UUNET has a diverse network that spans more than 2,500 points of presence around the world, ensuring that its customers get a robust level of service. With several suppliers for international Internet connectivity, SCV gives their customers a diversity of routes into the backbone of the Internet in the US. This allows SCV to monitor their Internet connectivity by comparing the link quality and performance amongst the various suppliers. According to Thomas Ee, Vice president OF the broadband engineering services, this is another step aimed at providing our customer with greater consistency in SCV's MaxOnline service.

Profile of the Singapore Market Its Consumers

Singapore seems to have small market with an estimate of 890,000 residential homes. However, Singapore is affluent and tech-savvy. Many Singaporeans are now receptive to products of high-technology. The current trend among them is that which embraces an e-lifestyle. On top of a high-level of awareness and of IT services in Singapore, Singaporeans have become tech-savvy with the mindsets that an e-lifestyle will enrich both their quality of lives and employment opportunities. The top three familiar IT services in Singapore is the Internet email, Cable TV and the Internet World Wide Web.

The Singaporean Government has a high level of commitment in creating an IT literate society. It is consistently involved in building technology of high infrastructure with the ultimate objective in making Singapore an intelligent and regional IT hub.This is evident in many of its national programmes to promote IT skills.

According to the Infocomm Development Authority of Singagpore (IDA), more Singaporeans today own computers and subscribe to home Internet access as compared to 1995. This is revealed by the Survey in Infocomm usage in Households 2000 that they conducted. The 2000 survey shows that six out of 10 homes own at least one computer compared to about four out of 10 households in 1996. In terms of home Internet access, five out of 10 homes had Internet access in 2000, compared to about one out of 10 homes in 1996. Home computers and Internet access are no longer seen as luxury items but common resources used by many individuals.

Home computer ownership has grown rapidly since 1996, with six out of 10 homes in Singapore having at least one computer in 2000, compared to about four out of 10 homes in 1996. The rapid increase in ownership is largely attributed to national programmes which promote Infocomm usage among the general public and the workforce, as well as the emphasis on Infocomm usage in school curriculum.

Ownership of home computers among public housing has increased to 58% in 2000, compared to 31% in 1996. This positive sign is reflective of the increasing awareness and adoption of Infocomm technology among heart-landers in Singapore although computer ownership continues to be higher among private housing (78%).

Home Internet access has also grown rapidly in the last five years with half of Singapore homes subscribing to Internet access in 2000, compared to about one out of 10 homes in 1996. The high percentage of home Internet access can be attributed to affordable subscription fees provided by the Internet Service Providers, increasing popularity of Internet usage among the general public, as well as promotion of Internet usage through public education programmes.

In terms of users' profile, there are more multiple computer users in the homes now than in 1990 where there was only one user in more than half of the homes owning computers. The typical home computer user is male (53%), below 30 years old (61%) and has polytechnic/tertiary education (40%).

The Internet is becoming an increasingly vital tool in Singapore'sknowledge-based economy given that there are about 1.3 million Internet users in Singapore and 42% of the population aged 15 years and above are Internet users.

Some Internet users have also chosen to take advantage of the widespread availability of some 7,000 public access points in community libraries, cyber cafes and schools, instead of subscribing to home Internet access.

Target Market Specification

The target market is segmented into consumer and business segments. The consumer segment is further segmented based on the benefits they seek from the services. The intersection of the consumer's most important benefits with the product's most important features is the focus of the marketing message (Moriarty, pp100) as can be seen from the different price plans and channel options offered for MaxTV and MaxOnline.

SWOT Analysis

SWOT refers to the study of the company's internal strengths and weaknesses and its perceived external opportunities and threats in the wider environment. The main purpose of the SWOT analysis is to identify strategies that align, fit or match a company's resources and capabilities to the demands of the environment in which the company operates.

Strategic alternatives generated by a SWOT analysis should build on a company's strengths in order to exploit opportunities, counter threats and correct weaknesses in the company structure and operations.

SWOT analysis is very helpful in determining whether the firm has distinctive competencies that will give it a strategic advantage. It also helps them to identify potential problems that could be corrected and whether these problems are of a magnitude significant enough to eliminate further consideration of certain strategies.

Strengths

The strengths in the SWOT Analysis refer to the inherent characteristics of the company that will assist them in achieving their business objectives.

Good Distribution System:

A good distribution system forms the core of any business because ultimately, delivering the finished products to the customers is still the primary objective in every transaction.

99% of all Singapore is now externally wired with a hybrid-fibre coaxial network.

First Mover Advantage:

SCV was given a seven year monopoly on cable TV that expires in June 2002. As SCV is the first and only cable service provider right now, it enjoys the first mover advantage. SCV is able to take advantage of this status to build customer loyalty, brand association and greater customer understanding.

1) Customer loyalty: The persistence of a customer to use a single product in spite of the existence of similar products.

2) Brand association: The reflexive association of a product category to a single product brand.

3) Greater customer understanding: The understanding of the customers' specific needs based on experience accumulated over time.

Good Customer Relations:

With better customer connectivity, SCV inadvertently builds up excellent customer relations. Close and intimate customer relations are invaluable to any company in today's ever-changing market.

A trusting long-term relationship with customers will not only ensure a steady customer base, but it also serves as an avenue for customer feedback, so that improvements can be made for the better.

High Access Speed

SCV's cable modem gives a high access speed of up to 10 mbps. This speed, when compared to other modes of connections, is extremely fast. Web pages can be viewed in the blink of an eye and heavy multimedia files can be downloaded in seconds.

Unlimited Access Time

The flat fee of $98 per month is for unlimited access, therefore computers can be left on all day.

No telephone Line or Dial-up Requirements

Without such requirements, users do not need to incur any telephone charges, which is a major cost factor for dial-up access. Connecting to the Internet will also not disrupt incoming or outgoing calls and thus there is no need to get a second phone line.

Exclusive Telecast Rights to Programmes

SCV has been able to get exclusive telecast rights of English Premier League matches, sporting events, news, movies, dramas and sitcoms. Consumers are unable to watch these shows on the free-to-air channels. This differentiates SCV from its competition.

Weaknesses

Weaknesses are the direct opposite of strengths and they refer to the negative factors that hinder the company from progressing in their intended direction.

Rarely Get to Enjoy Full Speed

SCV's cable modem was supposed to give a much higher access speed of up to 10 mbps but in reality, users seldom enjoy that full speed because they have to share bandwidth with other people in the neighbourhood or block using the same TV cable. This means that Internet access speed slows down when there are more people logging on. The speed of connection is 10 mbps divided by the number of users on the same bandwidth at the same time.

Programmes Cannot Meet the Needs or Expectations of Consumers

Programmes telecast by SCV are often repeated throughout the day and are reruns that have already been shown on free-to-air channels. Although it appears that consumers have more choice and variety with cable, the repeated telecasts of old programmes to fill timeslots does not satisfy the need of consumers adequately. Since SCV charges consumers a premium for quality programming, they have to ensure that quality is delivered to hold on to subscribers.

Opportunities

Opportunities are external environmental factors that a company can utilized to further their business goals.

Government Support
Singapore has a high level of government commitment in creating an IT-literate society, building high-technology infrastructure and making Singapore an intelligent island and a regional IT hub.

Singapore ONE is the world's first nation-wide broadband high-speed and high-capacity network that delivers a new level of interactive, multimedia applications and services. SCV is an access provider for Singapore ONE.

Future Multimedia Interactive
SCV's broadband network is capable of delivering more than just cable TV and cable modem services. It has the potential to offer many future multimedia interactive services such as e-commerce, interactive TV, Internet TV, video conferencing, video email, cable telephony and music and video on demand services.
These will be introduced as soon as open standard technology platforms are established and relevant as well as affordable applications and services become available.

Broadband Cable Telephony Coming Your Way Soon

With the government's announcement of full liberalisation of the telecoms market, SCV is well-positioned to take advantage of this opportunity to deliver cable telephony services to Singapore businesses and consumers. After all, its broadband network was built essentially to deliver not just video and data but voice services as well to every household in Singapore.

Cable Telephony is poised to be SCV's third service via the broadband network. SCV was designated a public telecommunications licensee by the Infocomm Development Authority of Singapore (IDA) this year.

For cable telephony, network upgrading will be required and should be completed by year-end. This means that consumers will be able to enjoy fixed-line phone services via cable instead of the conventional phone network. For SCV subscribers, they can look forward to more choice, greater convenience and benefits as they would be able to enjoy cable TV, broadband internet access and telephone service through the same cable point and from one service provider.
Getting phone service via cable

There are four possible ways of offering telephone services via cable. The first is to provide subscribers with a cable TV set-top box that has a phone jack connected to a normal phone. This method is ideal for cable TV subscribers who do not need Internet access.

The second way, targeted at broadband internet access subscribers, is to connect the phone to a phone jack in the cable modem. The third method does away with the telephone equipment completely. Using a cable modem with built-in PC telephony functions, users can talk over their PCs with the help of telephony software.

The last method requires a standalone unit commonly known as "gateway" providing telephony services to everyone, even if they don't have a set-top or a cable modem.

SCV will explore all modes of connection depending on equipment availability and market developments. To provide international call services (or IDD), SCV could either develop a partnership with a gateway provider or build its own gateway. A gateway, which is the entry/exit point of a network, acts as an intermediary between SCV's broadband network and telephone networks from other countries.

Telephony trials are expected to take place in the latter half of this year with the service becoming available at the end of the year. Singaporeans can therefore look forward to greater choice and experience the full potential of broadband.

Threats

Threats are external events or situations that steer a company away from its business objectives.

Threat of New Entrants:

It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always would be minimal.

Once SCV's monopoly of the cable market ends in June 2002,they will have to contend with other cable companies entering the market. The erection of barriers to entry is the only alternative to offset this threat. The barriers of entry applicable to the cable industry are as follows:

1. Overall Cost Leadership: To achieve minimum cost of production through mass production.

2. Production Differentiation: To distinguish a product by introducing perceptual differences to consumers.

3. Good Consumer Relation: Close links with customers ensure a steady and loyal consumer base that will discourage the entry of competitors.

Substitute Products:

Substitute products refer to products in other industries. A threat of substitutes exists when a product's demand is affected by the price change of a substitute product. Substitute products affect a product's price elasticity - as more substitutes become available, the demand becomes more elastic since customers have more alternatives. A close substitute product constrains the ability of firms in an industry to raise prices.

In this case, consumers could perceive the free-to-air channels as substitute products.

A product can only be substituted by another product if they are perceived to be similar. Hence, product differentiation is a good strategy to reduce the risk of substitution. For example, SCV is has the sole rights to telecast English Premier League matches in Singapore. If consumers wish to watch these matches they have to subscribe to SCV. This point has been reinforced through advertisements, press releases, brochures and sales promotion.

It will be more difficult to differentiate between different brands of the identical products since they share the same relative advantages. In this case, being the first mover in the broadband cable industry would bring substantial benefits in the form of brand association as mentioned above.

Competitive Analysis

Direct competitors to SCV's Max online broadband internet service are Singnet Broadband and Pacnet Broadband. Both Singnet and Pacnet provide high speed access with Asymmetric Digital Subscriber Line (ADSL) technology. With ADSL technology, consumers can engage in several online activities simultaneously. Subscribers can even use the phone and fax while surfing on the same telephone line at the same time. Subscribers can choose from the Volume-based, Unlimited or Time-based Single User Business Access Plans.

Free-to-air channels are indirect competitors to SCV's Max TV services.

A look at SCV's current Marketing Mix

Distribution

SCV uses a hybrid-fibre coaxial network. 99% of all Singapore is now externally wired. There are currently 265,000 homes subscribing to SCV MaxTV, the company's cable TV service and 56,000 homes on SCV MaxOnline, the broadband Internet access service.

With the launch of the cash-and-carry scheme, SCV MaxOnline has appointed 17 computer retail shops as its authorised resellers. These resellers are located all over Singapore, making it even more convenient for new subscribers to sign up. They just need to pop into one of the authorised outlets, bring a USB cable modem home and plug and play. It's instant broadband connection to the Internet.

SCV's showroom in Wisma Atria, MaxLife, also offers consumers a venue for walk-in applications as well.

Product

MaxTV
SCV introduced cable TV services to Singapore in June 1995. Subscribers here have close to 40 quality international channels of news, movies, entertainment, sports, music and education to choose from.

MaxTVonline
In December 1998, SCV launched its broadband access service. Singaporeans could enjoy broadband access via a cable modem as long as their home was connected to SCV's network. This service offers 24-hour connectivity to the Internet and Singapore ONE.

Business Services
Due to the high demand for the programming carried on the cable network, SCV launched the Multi-point Multi-channel Distribution System (MMDS) to meet the needs of the commercial sector in April 1997.
MMDS uses Super High Frequency (SHF) channels to transmit TV programming over the air instead of through overhead or underground wires. Ten channels from existing cable TV programming are offered to supplement the existing UHF service.

Price

SCV MaxTV Subscription Plan
Since the inception of cable TV in June 1995, the minimum subscription or what is termed Basic Tier had been priced at $34.With the new SCV MaxTV subscription plan, cable TV starts from just $20 monthly.
"This new SCV MaxTV subscription plan is the result of our extensive customer research. We know our customers have little issue with price. But having certain channels they don't watch in their subscription package affects their perception of SCV MaxTV's value-for-money," said Tham Loke Kheng, SCV's Senior Vice-President (Sales and Marketing).
For new subscribers, the low entry price will make it very attractive for them to jump in now. From $20 monthly, families will get to enjoy nine or more Basic channels instead of just the usual fare from free-to-air channels.
SCV also offers Value Packs for specific target groups, eg. Happy Family, Action Seekers, Movie Lovers. These packages can also be customized to specific consumers, as they can also have the flexibility of adding more channels to the Value Pack of their choice with the Value Pack-and-Add-On Scheme.

TIER GROUPS CHANNELS SUBSCRIPTION RATES
BASIC GROUPS World News ? BBC World ? CNN ? CNBC Singapore Any 3 Groups $20Any 4 Groups $25Any 5 Groups $28
Education ? Animal Planet ? Discovery Channel ? National Geographic Channel
Entertainment ? AXN Action Channel ? Hallmark Channel ? MTV S.E.A. ? STAR World
Kids ? Cartoon Network* ? Eureka Learning Channel** ? Nickelodeon
Chinese ? PowerTV ZhongTian Channel ? MTV (Mandarin) ? Phoenix Chinese Channel ? TVBS Asia
BASIC PLUS GROUP Sports ? ESPN ? STAR Sports ? SuperSports/ Football Ch***
$6 per Group
ENHANCED CHANNELS - ? Disney Channel ? SunTV ? TVRI ? TV3
$4 per Channel
ASIA CHANNELS - ? CCTV-4 ? TVBJ ? Zee TV
$8 per Channel
PREMIUM CHANNELS - ? HBO ? Cinemax ? STAR Movies ? VV Drama & VV Entertainment
$12 per Channel
INTERNATIONAL CHANNELS - ? TV5 ? Deutsche Welle ? NHK World Premium ? WorldNet
$15 per Channel

Happy Family Usual Price: $53Value Price: $48Savings: $5 per month$60 per year 4 Basic Groups1 Enhanced Channel2 Premium Channels Experience quality family entertainment from more than 20 channels. With educational programmes for kids, 24-hour world-class news for Dad, blockbuster movies and ethnic language entertainment, there's always something for everyone in the whole family.
Action Seekers Usual Price: $50Value Price: $46Savings: $4 per month$48 per year 3 Basic GroupsSports Group2 Premium Channels Front row seats at the best sporting events delivered to you 'live' on three premier sports channels! Plus more box-office action with the best Hollywood blockbuster movies and top-rated Hongkong serials from any two Premium Channels of your choice.
Movie Lovers Usual Price: $56Value Price: $49Savings: $7 per month$84 per year 3 Basic Groups3 Premium Channels Strictly for the serious movie buff and hardcore Hongkong serial fan. Take your pick from five 24-hour premium channels. Nothing but the best selection of blockbuster movie entertainment and first-rate Hongkong movies and serials, right in the comfort of your living room.
Ultimate Pack Usual Price: $190Value Price: $98Savings: $92 per month$1,104 per year All Channels plus one additional set-top box A package of earthquake proportions! All 36 world-class channels designed for that ultimate TV experience that will keep everything within your view. It's maximum satisfaction guaranteed!

SCV Max Online Subscription Plan

SCV MaxOnline subscription list price S$96

Connection Fee Scheme for Landed Homeowners

Connection Fee Scheme (Option 1) Monthly Fee
24-month interest-free instalment with free SCV MaxTV service S$98*
* Includes complimentary SCV MaxTV service (comprising 4 Basic Groups, Sports Group, 1 Enhanced Channel and 1 Asia or Int'l Channel) worth S$43 per month during the 24-month instalment period. Includes free installation of set-top box and one cable point on the ground floor of your home. SCV MaxOnline subscription also available at a special rate of $66 per month.
Connection Fee Scheme (Option 2) Monthly Fee
24-month interest-free instalment with free SCV MaxOnline service S$98**
** Includes complimentary SCV MaxOnline service worth $96 per month during 24-month instalment period. Includes complimentary use and free installation of cable modem and one cable point on the ground floor of your home. SCV MaxTV subscription also available from $20 per month.

Promotion

Product is a high-involvement, thinking one. Thus the think-feel-do model comes into play here. Consumers will most likely follow the sequence of thinking about the product, forming an attitude or opinion about it, and then finally taking action and responding to it. Demos are especially useful in letting the user experience the product before he/she makes the high-involvement decision.

Advertising

SCV currently has advertisements in television and print (newspapers).

Sales Promotion

SCV does price bundling for the various channels, e.g. the value packages.

Also, there are price discounts for subscribers of both MaxTV and MaxOnline. (Subscribers to MaxTV get a $10 discount off MaxOnline, and their connection fee waived.) Freebies are also given out for buying certain packages. (A free Nike watch will be given away with every subscription of MaxTV with sports group channels.)

There are also tie-ins with other external companies, e.g. Citibank.

Well-designed brochures containing relevant information are available for information-seekers. These further enhance the company's image and put the company in positive light.

Personal Selling

MaxOnline is also a very good personal selling tool that is being used. It introduces the product to potential consumers, and allows them to try out the product for themselves. Salespeople are also well trained, eloquent, and knowledgeable. They also portray a very friendly yet professional image. Personal selling plays an important role in giving the intangible service a personal touch.

Public Relations

To 'do its part for community' and to show that it cares, SCV has implemented the Creative Classroom. SCV's Creative Classroom is a schools' initiative from SCV that aims to make learning an adventure for students in Singapore. This non-profit initiative makes available high-quality educational TV programmes on SCV channels to educators and students.

Schools are encouraged to connect to SCV's state-of-the-art network so as to have access to high-quality international programming and SCV MaxOnline, the broadband Internet access service via the cable modem. Under SCV's Creative Classroom, there is a sponsorship for schools to help them get connected, with free subscriptions given to cabled schools.

SCV will also be sending letters to all existing subscribers in batches to inform them of the new subscription plan. To move to the new plan, they can do one of the following:
* Mail or fax back the new subscription plan response form
* Submit an online application via the website, www.scvmaxtv.com.sg
* Call the 24-hour interactive hotline at 885 7777
* Call the Customer Service hotline at 873 8888
* Go to the SCV MaxLife showroom at #01-05, Wisma Atria
* Visit our customer service centre at 59 Killiney Road.
* Meet SCV representatives at these roadshows:
Locations Period
Jurong Point 1 Jun - 26 Jun
Causeway Point 11 Jun - 24 Jun
Tampines Mall 15 Jun - 1 Jul
Lot 1 25 Jun - 1 Jul
Caltex House 2 Jul - 6 Jul
Parkway Parade 2 Jul - 8 Jul
Sun Plaza 2 Jul - 15 Jul
West Mall 9 Jul - 15 Jul
New subscribers can call the sales hotline at 873 3333, send a fax to 870 1603 or email SCV at customerservice@scv.com.sg. Alternatively they can visit the SCV MaxLife showroom or go to one of the roadshows.
To better service the existing base of more than 265,000 subscribers, SCV is staggering these communications over one month.
SCV offers a weeklong trial of all its channels to subscribers to help them decide which plan or channels suit their purposes best.

To encourage landed-property owners to connect to the cable network, SCV offers MaxTVonline services free for two years to new MaxTV subscribers who install cable points. Or MaxTV free for two years for new subscribers to MaxTVonline.

Critique and Suggested Improvements

Promotional Communication Objective

Message objectives

It is crucial to explain to consumers the product that SCV is offering to better their lives. Be it cable TV or broadband Internet access. The message put across should inform the consumers about the products and the benefits that it would bring to the consumer.

A good way to catch the attention of the public is through problem recognition. The public TV may not be able to satisfy the consumer, or normal dial-up internet services are too slow and are charged according to access time. SCV offers better alternatives with the cable TV channels and Internet broadband access.

Then SCV should also feature the key advantages that it has over competitors like Singnet and Pacnet, to persuade consumers to choose SCV over the rest.

In anticipation of new entrants in June 2002, SCV should try to establish a brand in the minds of consumers. They should concentrate on selling the "SCV lifestyle". They have achieved lifestyle branding to a certain extent through advertisements and the opening of the MaxLife showroom at Wisma Atria. SCV needs to continue to establish and reinforce their brand name in order to continue market domination.

There should also be greater effort made by SCV to simplify the technical process of installing or connecting cable to consumers. Add in figures about how only 20% (?) penetration. SCV can continue to attract consumers by coming up with new and innovative ways of marketing cable TV and internet to different consumers.

Design objectives

It is important to differentiate the products from those offered by the competition.

We shall begin with product differentiation. SCV's cable channels need to be differentiated from the rest of the public channels offered by TCS or Mediaworks. SCV offers the latest programs, many of which are specialized and unavailable on public TV channels. Also, SCV's line-up of programs is such that the concept of prime time no longer stands.

An example of product differentiation in the channels would be the sports channels, which offer 'live' coverage of the English Premier League and the 2002 World Cup.

Next, we have to consider product positioning. Product positioning is the process of identifying the most important beliefs, attitudes and product-use habits of the customer.

SCV's current positioning seems to be rather upmarket, as it is a service that is over-and-above the usual choice, or an added extra and luxury in life. This is evident from the classy showroom in Wisma Atria, with modern interior design, lush sofa seats and flat screen monitors. Knowledgeable and presentable salespeople are also employed to further portray this image. In fact, the salespeople are even given the latest laptops to use.
This is further supported by the advertisements, where smart businessmen and well-to-do families are shown.

This is image positioning strategy focuses on the tangible and intangible characteristics of the product that cannot be duplicated easily by competitors.

Advertising

Advertising is "any paid form of nonpersonal presentation and promotion of ideas, goods, services by an identified sponsor to a targeted audience and delivered primarily through the mass media" (Moriarty, pp279). Advertising helps identify the meaning and role of products for consumers by providing information about brands, companies and organisations, this in turn, helps sell products and build brand and company reputation.

Advertising's primary strenghth is that it reaches a mass audience to intensify broad-based demand for a product. It can build brand awareness,create long-term brand images and brand positions and increase brand knowledge effectively. Advertising also serves as a reminder of a product or brand with which a consumer has had a positive experience. Finally, advertising provides message repitition, an important factor in memorability.

However, advertising has its limits. Consumers often perceive it as intrusive. They might avoid advertising by turning the page, changing the channel, muting the sound or using other technology to screen out an ad. Advertising is also perceived as cluttering the media environment because of the large number of competing ads in most media. Another problem with advertising is that although it reaches a large audience, many of those audience members are likely to be nonusers of the product. As a result, advertising wastes a large number of impressions.

SCV uses advertising mainly to publicise promotions and new developments. Present advertisements seem to target the individual consumer, instead of families. SCV can make its services more appealing to consumers by positioning itself as a one-stop entertainment service for the whole family. If consumers perceive that SCV services provide something for everyone, it will enhance SCV's value-for-money image.

We propose issuing limited edition MRT cards to tie-in with future promotions.

Sales Promotion Program

The Coucil of Sales Promotions Agencies defines sales promotion as a marketing communication tool that offers sales-related incentives to generate a specific, measurable action or response for a product or service. Sales promotion may be targeted at any or all of the consumer and trade audiences.

The main purpose of sales promotion is to offer consumers and trade members an "extra incentive" to act. This extra motivation is what distinguishes sales promotion from the other marketing tools.

Sales promotion is based on the premise that each brand or service has an established perceived price or value and that sales promotion changes this accepted value by increasing the value, lowering the price or both. Thus, sales promotion offers consumers an immediate inducement to buy a product by the simple step of making the product more valuable.

The most important strength of sales promotion is its ability to stimulate people to act - to try or buy something. From the company's perspective, sales promotion is used to increase purchase frequency and/or quantity.

Sales promotion also offers businesses the flexibility to meet different marketing communication objectives and to reach any target market. All kinds of businesses can use the wide range of promotion techniques. Sales promotion activities directed at sales forces and resellers can motivate these important trade members to "push" the product by supporting promotions and giving the product more sales attention.

Finally, sales promotions that require customers to fill in name and address information, such as rebate or mail-in coupons, enable businesses to build databases of customer information. The database is useful for tracking consumer behaviour for targeting consumers with direct mail.

Sales promotion activities may have negative consequences. The main weakness of sales promotion is its contribution to clutter. Promotions try to be more creative, shout louder or deliver ever-increasing discounts to get the attention of consumers and the trade. Another weakness of sales promotion is that repeated use of price-related techniques may reduce the perceived value of the product or brand. Further, consumers and resellers have learned how to take advantage of sales promotions. Also, some sales promotion techniques lend themselves to abuse.

A key weakness of trade promotions is that it is difficult to get busy trade members to cooperate. Promotion planners, then, should work closely with the trade audience to provide incentives that will inspire cooperation.

If not used carefully, sales promotion may also contribute to declining brand loyalty by shifting consumer focus from brand value to price.

SCV should offer special price plans to commercial subscribers such as pubs, restaurants and hotels. At the moment, SCV has value packs for consumers and MMDS for commercial buildings but no special packages for other businesses. We suggest a flexible scheme that allows commercial users to subscribe to certain channels only. For instance, some pubs might want to provide sports entertainment for patrons but have no use for the other channels. In such cases, SCV could tailor specific packages to meet their needs. This plan would only be available to commercial subscribers and promotion of this scheme would be mainly through appropriate trade publications and direct mail.

Personal Selling Program

Personal Selling is the face-to-face presentation of a product or an idea to a potential customer by a representaive of the company or organisation (Moriarty, pp.411). It is characterised by interpersonal communication. Information is presented personally, there is immediate feedback and adjustments to the message can be made immediately.

The most significant strength of personal selling is flexibility. Salespeople can tailor their presentations to fit the needs, motives and behaviour of individual customers.

Personal selling also minimises wasted effort. The sales force pinpoints the target market, makes a contact and expends effort that has a strong probability of leading to a sale.

An additional strength of personal selling is that measuring effectiveness and determining the return on investment are more straightforward than for other marketing communication tools.
Another benefit of personal selling is that the salesperson is in an excellent position to encourage the customer to act. The one-on-one interaction allows specific requests for action on a repeated basis, if necessary. This facilitates buyer action.

A final strength of personal selling is the multiple tasks the salesforce can perform. In addition to selling, a salesperson can collect payment, service or repair products, return products and collect product and marketing information.

High cost is the primary disadvantage of personal selling. Finding and retaining high-quality people is another disadvantage as both salespeople and the company look for ways to maximise personal benefits.

Another weakness is message inconsistency due to the independence of the salesforce. It is also difficult to motivate salespeople to use required sales techniques, make all necessary sales calls, use new technology and behave ethically.

SCV Max Life, first showroom, opened in Dec 2000, ground floor of Wisma Atria. After a visit to the store, we were impressed by the level of service delivered by the sales staff. The sales staff were articulate, friendly and knowledgeable about SCV services. This high level of customer service should be maintained through staff incentives and training programmes.

Public Relations

"Public relations (PR) is the management function that establishes and maintains mutually beneficial relationships between an organisation and the publics on whom its success or failure depends." --- Cutlip, Center and Boston

The principle goal of other promotional elements is to establish and enhance a positive product or brand image and thereby persuade buyers to purchase the particular product. PR differs because its main aim is not to persuade but to enable the public to conclude for itself on the basis of the best possible information. Although a selling message is not the purpose of PR communication, information about a new product and a media relations campaign to excite the interest of identified journalists in such a product are legitimate PR activities. Public relations is the use and communication of information through a variety of media to influence public opinion.

Public relations has a number of strengths. First, public relations targets and manages relationships with important stakeholders. Second, public relations can reach difficult-to-reach audiences, such as opinion leaders and upscale consumers. Third, public relations professionals can advise clients and companies on the implications of trends and corporate activities. Fourth, public relations specialists can present the company as a good citizen through careful relationship management and monitoring of an organisation's reputation and corporate image. Fifth, they can plan how to handle crises, thereby minimising negative effects on the orgaisation's reputation. Sixth, public relations offers a business more message flexibility compared with advertising and sales promotion because the laws governing news releases are less strict than for those regulating advertising of all forms.
Seventh, PR adds credibility and believability because target audiences usually consider news stories to be more objective than other marketing communications that are developed, presented and paid for by the sponsor. Eighth, PR breaks through the clutter more effectively than other marketing communications areas because people are more willing to believe a news message than a commercial message. Finally, PR is relatively cost-effective because news coverage, if warranted. is free.

SCV Creative Classroom is a schools' initiative that aims to make learning an adventure for students in Singapore. By harnessing the broadband capabilities of SCV, Creative Classroom makes the school curriculum come to life. SCV can use its affiliation with schools to explain how easy it is for consumers to install or connect to its services.

SCV can educate children in schools on the benefits of subscribing to MaxTV and MaxTVonline. They can also hold workshops for parents on how to make Internet surfing safe for their children. They can then communicate the benefits and ease of subscribing to SCV to parents.

SCV should update their newsletters and website more frequently to ensure that customers get the most up-to-date information at all times.

Exclusive events for SCV subscribers only can be held in conjunction with promotional programmes eg concerts, meet-the stars sessions.

Bibliography:

Burnett, J. & Moriarty, S. (1998). Introduction to Marketing Communications : An Integrated Approach. New Jersey: Prentice Hall.

Ahmed, Z.U. & Tan T.W. (2000). Cases In Marketing: A Singapore Perspective. Singapore: Prentice Hall.

Infocomm Development Authority of Singapore. (2001)
Available: http://www.ida.gov.sg/Website/IDAhome.nsf/Home?OpenForm

Singapore Cable Vision. (2001)
Available: http://www.scv.com.sg

Singnet Broadband. (2001)
Available: http://www.singnet.com.sg/product/broadband/flashmain.html

Pacnet Broadband. (2001)
Available: http://www.pacfusion.com/broadband/

Pan Asia Gaming Network. (2001)
Available: http://www.pagn.net