Essay about Celcom Pricing Strategy
Celcom use price penetration strategy and psychological pricing when it comes to gain large market share and customer base. Celcom often offers new product from year to year that it is crucial to play around with the figures to either trick or attract customer to win over their preferences when selecting Telco Company.
“With high availability of internets across the Malaysian globes, a price penetration strategy is advisable to enhance customer’s usage, and introducing the service. On the other hand, they would use that opportunity to increase price on improved products. Celcom should also be sensitive to the price elasticity of its product and overall consumer demand.” (Celcom Official Website, 2009)
Penetration pricing …show more content…
“It is apparent that these types of customers are most based in the urban areas,” he told StarBiz.
Since last October, Celcom’s prominent products that are expected to strengthen its urban presence are in the postpaid segment namely First Basic 85 with monthly commitment plan of RM85 for five gigabit (GB) plus another GB Wi-Fi for data, with 700mins and 700SMS with call and SMS and also the First Elite with a monthly commitment plan of RM235 for 8GB with 8GB Wi-Fi for data with and a second SIM, unlimited calls and SMS to all networks with call and SMS.
It has also ramped up it prepaid segment under Xpax, with better data offerings and another introductory postpaid package called the First Basic 38.
Zalman said their competitive edge was based on the accessibility of Internet via innovative data packages at affordable pricing.
“In a couple of weeks we are expected to announce our expansion plan for the LTE that would focus on metro transit areas such as shoppping malls, other market centres and strategic