Xavier University – Ateneo de Cagayan

School of Business and Management

Department of Business Administration

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 Nike Incorporated Page 2

I. Executive Summary

PLDT myHOMEDSL launched its ultra-fast wireless Internet service , which

is a Time-Division Long-Term Evolution (TD-LTE) wireless Internet for the home. It
is considered to be the country's first to foray in TD-LTE technology, which is an
innovation that uses dedicated network with an allocated bandwidth, apart from the
one used by mobile devices and pocket Wi-Fi modems.

"The launch of PLDT myHOMEDSL is part of our commitment to

continuously develop broadband connectivity in the country. Aside from the ongoing
roll-out and enhancement of PLDT HOME DSL, the addition of PLDT myHOMEDSL
to the PLDT HOME roster of services means that we intend to serve more areas,

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especially those unreachable by wired technology," said Ariel Fermin, PLDT

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executive vice president and head of PLDT HOME business.

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It aims to give an improved Internet service to have better access to social
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media, movies, games, and music online. It is currently being rolled out in key
areas across the country such as Bulacan, Pampanga, Tarlac, Bataan, Isabela,
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Nueva Ecija, Pangasinan, Aurora, Cagayan, Abra, and Nueva Vizcaya in Northern
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and Central Luzon; Cavite, Laguna, Batangas, Quezon, Sorsogon, and Palawan in
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Southern Luzon; Aklan, Iloilo, Negros Occidental, Bukidnon, and Leyte in Visayas;
and Misamis Oriental, Zamboanga del Sur, Agusan del Sur, Misamis Occidental,
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Lanao del Norte, and Sultan Kudarat in Mindanao.

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II. Situational Strategy
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PLDT (Philippine Long Distance Telephone) recently became a success with

their PLDT myDSL. Through PLDT myDSL wireless broadband technology and
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Smart WiFi, they can even service communities with no telephone landline facilities.
they can provide broadband Internet access almost anywhere in the Philippines,
provided you near a Smart-based station.

Market Summary

PLDT myDSL has cater most of the Philippine's internet users. Through savvy
marketing, advanced Internet infrastructure and integrated networking facilities, it has
grown to dominate the DSL market with an estimated 84,000 myDSL subscribers
nationwide. It commands an incredible 70 percent of small and medium-scale
business clients throughout the Philippines. PLDT myDSL is also the leader in
servicing the Internet cafe and network gaming markets nationwide. Netopia

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 Nike Incorporated Page 3

president Raymond Ricafort said that in a survey, 6,700 Internet cafes out of the total
of 8,000 Internet cafes nationwide use PLDT myDSL.

Market Demographics

The profile for typical PLDT myDSL users consists of the following geographic,
demographic, and behavior factors:

Geographics

 The target area of PLDT myDSL is all over the Philippines.

 The total targeted population is the 130,000 broadband users in the
Philippines

Demographics

 Ages 13-50.The 13-25 which are teens and the young professionals internet
users tend to cover the widest age range, including young users through

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adults. Ages 25 and above are those users who are working or providing an
internet connection in their family.

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 Of the users who are 20, 60% have an undergraduate degree or substantial
undergraduate coursework.

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 The adult users have a median personal income of Php 45,000.
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Behavioral

 Internet users uses internet to be part of the society

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 Internet users uses internet to get information they need.

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 Internet users uses internet to communicate with each other.

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 Internet users uses internet to relax and to have fun

 Internet users uses internet to watch movies, to read books, and other online
activites.
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Market Needs
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PLDT myDSL provides internet connection with different promo bundles that fits the
customers need and also their budget. They seeks to fulfill the following factors that
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the intenet users needs:

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 Fast Internet Connection. The customers especially the adults work hard for
their money to provide resources for their family and that includes the internet
connection, so they should not waste their money just to have a slow internet
connection.
 Fast Installation. The customer should not wait longer for the installation of
their internet.
 Customer Service. Excellent customer service is needed most especially
when in times of internet connection trouble.
 Equipment Flexibility. Some ISPs enable customers to supply their own
modems. Take advantage of these opportunities, as supplying your own
network equipment not only allows you to select the quality you want but
potentially lowers costs, too. Occasionally, ISPs lease modems to customers.

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 Nike Incorporated Page 4

 Accessible technical support. When things go wrong, and they will go

wrong, how accessible is technical support? It should be very accessible
especially if you run a business 24x7x365 per year.
 Pricing. This maybe is the most important factor in choosing an internet
connection. It should be fit with your needs and your budget.

SWOT ANALYSIS

Strengths
1. Leading Market Position in its operating market in Philippines
2. Diversified Business Operations across the telecommunication domain
3. Advanced Integrated Network helping to provide better services
4. Over 18,000 people form the backbone of the workforce
5. Total mobile, broadband and other service subscriber base is approximately
100 million

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Weaknesses

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1. Over dependence on a smaller market without huge global operations

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Opportunities rs e
1. Strategic Partnerships across the geographies for growth
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2. Network Expansion helping to serve wider number of customers
3. Growing demand for Wireless services in Philippines
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Threats
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1. Intense Competition causing margin pressures

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2. Rapid Technological Changes needing constant strategic changes

3. Currency Fluctuations impacting foreign revenues
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Competition
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PLDT myDSL competitors are Globe Telecom, Digitels and BayanTel.

Product/Promo Offering
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PLDT myDSL now offers several promos:

 PLDT HOME DSL is the country's #1 home broadband that lets your family
enjoy family-sized connection
with speeds of up to 15 Mbps or plans for as low as P990.
 CIGNAL FAM PLANS. Enhance your TV Viewing experiencing with Cignal's
premium HD channels. This promo comes with a PLDT myDSL + Cignal
Digital TV Channels comes with Catch-Up TV + Landline
 It also offers 100+ Digital Channels that comes with PLDT myDSL and
Landline.

Critical Issues

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 Nike Incorporated Page 5

Since PLDT myDSL captures 77% of the internet users in the Philippines,there are
also issues that PLDT faces:

 With its large subscribers, some customers are having a hard time with their
internet connection due to slow internet connection.
 PLDT phone support are always on delay and makes the customers wait
longer and waste their time.
 Some customers are complaining with their defective modem and late
technician to fix the problem.

III. Marketing Strategy

IV. Financial Projection

PLDT mydsl will address financial projection, sales forecasts and expense forecast

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I. Projected Income Statement:

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Projection: We Projected an income statement for the following 3 years (2016-2018)

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under the following assumptions

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1. Average income growth of 2015 and 2014 (9.24%)
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2. Expenses decrease. In the last two years, the total expenses decreased ( at an average of
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2%), but this situation cannot be continued, so we consider the total expenses(95,797) to be
constant in the 3 years
3. Income tax (22%)
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with this assumptions, this are the figures:

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Description 2015 2016 2017 2018

Total Income growth(9.24%) 25,355 27,697.80 30,257.08 33,052.83

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Total Expenses(2%) 95,797 95,797 95,797 95,797

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Income before tax 70,442 68,099 65,540 62,744

Income tax 7,338 8,952.36 10,921.88 13,324.69

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Net projected Income 63,104 59,147 54,618 49,419

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The assumption of fixed expenses probably is not effective and some adjustments
should be placed after the company stabilizes that causes increase in total income
and decrease of expenses.

II. Sales Forecast

PLDT feels that the sales forecast is aggressive. It will steadily improve sales as the
marketing budget allows.
although the target market forecast lised all of its potential customers divided into separate
groups.
- The sales forecast groups
- Customers into three categories: Data and Broadband subscribers, Fixed Line Service

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 Nike Incorporated Page 6

subscribers and
- Wireless Service Subscribers.

Data and Broadband Revenues (in millions)

Sales 2015 2014 2013

Data and Broadband 35,655 31,043 35,400
Fixed Line Service 43,650 41,473 53,700
Wireless Service 83,234 86, 120 116,700
Total Sales 162,539 72,516 205,800

Direct Cost of Sales 11, 709 10, 180 11,806

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III. Expense Forecast

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Marketing expenses are to be budgeted so they peak during months before a

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busy period to provide visibility at a time that people are subscribing to new
services.

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Marketing Expense Budget (in millions) 2015 2014 2013
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PHP PHP PHP
Selling and Promotions 7,379.00 7,905.00 9,776.00
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PHP PHP PHP

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Professional and other contracted services 6,049.00 5,404.00 6,375.00

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PHP PHP PHP

other expense 831.00 1,104.00 1,609.00

PHP PHP PHP

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Total Sales and Marketing Expense 14,259.00 14,413.00 17,760.00

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Percent of Sales 9% 20% 9%

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V. Implementation/Control
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