Marketing Report: Analysis of Melita Telecommunications Strategies

This report provides a comprehensive analysis of Melita Telecommunications' marketing strategies. It begins with an executive summary highlighting the company's focus on high-speed internet and customer loyalty through technological innovation. The introduction establishes the context of marketing management and its application to Melita, a telecommunications firm in Malta. The main body delves into the background of the telecommunications sector, focusing on Melita's history, services, and market positioning. It examines the competitive landscape, including major competitors like GO and other smaller players, and analyzes market share and trends in fixed and mobile telephony. The report also addresses the challenges faced by Melita, such as technological advancements and competition, and explores the company's market position and unique selling proposition. Furthermore, the report discusses marketing audit tools, particularly SWOT analysis, to assess Melita's internal strengths and weaknesses, as well as external opportunities and threats, to inform strategic planning and identify gaps between current marketing strategies and the external environment. The report concludes with a discussion of new marketing mix actions to address identified gaps and achieve company objectives.

MARKETING
MANAGEMENT

Table of Contents
Executive summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
1. Background..............................................................................................................................4
2. Marketing audit and market attractiveness and potential for market growth..........................7
3. New Marketing Mix Actions to identify gaps between the company present marketing
strategy and external environment.............................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

Executive summary
Melita telecommunication has been focused achieving the high-speed internet connectivity to
build the customer loyalty and provide better customers experience for the services provided by
the company. The company has been adopted different technological innovations in the fields of
mobile networks to be sustained in the market for longer time. Here the report has discussed
some of the different marketing audit tools which help Melita in looking for its strengths and
weaknesses and the external opportunities and threats which are underlying within the external
market. Marketing mix is mainly conducted by business in form of business tactics which they
use to promote their products and services at global level. This had been helped to business for
future and further growth. Sometimes competitors use this procedure to attract the interest of
customer in local market. This strategy is implemented in case of having large number of
competitors in market. In case of Melita they can use this marketing mix techniques to enhances
the interest of customer for longer time period.

INTRODUCTION
Marketing Management focuses on practical application of the market orientation. It is
process of planning, pricing, promotion, execution of the concept, distribution of services and
products, distribution of ideas, etc. (Jerez and et.al.,2018) which helps the organisation to
achieve the objective of the company with the help of exchange, creation and satisfy the
individualist and company goals. In this report, the chosen firm is Melita company which deals
in telecommunication industry. The products of the firm are mobile phones and ancillary
products. Melita was founded in 1992, headquarters are in Gasan Centre Imriehel By Pass,
Birkirkara, Malta Malta. The present report will study about the background of the industry and
market positioning as present unique selling proposition of the firm. The study will be based on
market auditing of organisation with the help of externals and internals business analysis which
will help to outline the market attractiveness and assess the growth potentials of the company in
the market. Lastly, the report will analysis the gap between company present marketing
strategies and external environment for the firm which will further help to determine the gap and
defended with the help of new marketing mix to achieve the objectives of the company.
MAIN BODY
1. Background
The telecommunication sector is providing safe and effective communication services to
customers. This made up of the all telecommunication companies and internet services provider
and plays the curial role in the evaluation of the mobile communication and the information
society. This sector is consisting with the three sub sectors telecom equipment and telecom
services. Melita was established in 1992 as in telecommunication industry (Di Benedetto and
Lindgreen, 2018). The head office of melita is in Gasan Centre Imriehel By Pass, Birkirkara,
Birkirkara, Malta. As Melita operates the number of retail outlets which offer the numbers of
customers service. The products that Melita provides are cable television, broadband internet,
mobile telephone, fixed line services etc. (Boscagli,2019). Melita company was first to offer
high definition television with Melita net box that is digital set-top box which was introduced in
2010. In 2000 Melita launches internet services under the brand Onvol. Melita cables initiate
digital cable TV. In 2006 fixed telephony services were initiated under the name of brand Hello
(History of Melita, 2019). in 2007 Melita was purchased from UPC and Gasan group by coming
in the venture capital the main aim of the companies were to focus on telecommunication,

technology and media sectors. Melita company then launches its fibre undersea cable which
provides broadband connectivity to Europe and upgrades by offering 50 Mbps. In 2009 Melita
launches advance 3 G mobile communication services. In 2011 Melita launches fibre power
broadband with nationwide speed of 100 megabit per seconds. Melita connected its customers to
the tier 1 operator LEVEL 3 in Milan in 2012 (History of Melita, 2019). since 2016 Melita is
owned by private equity investment funds Apax partners and Fortino capital which was
previously acquired by the investors GMT communication partner, Gasan group, MC venture
partner and Black-rock communications. As the global entryway distance was approximately
250 kilo meters between Catania and Malta which carry main three traffics that were voice,
internet and data. Malta radically transformed by implementing high speed broadband
nationwide and joined the gigabyte movement. During past 20 years the telecommunication
sector has faced many rapid changes as it bought privatisation with de- regulation (Stouten And
et.al., 2019). The Maltacom was rebranded as GO which was sole communication provider on
the island due to the liberalisation policy adopted by the country it increased the competition in
the country. In 2008 the virtual networks were adopted where as in 2010 the mobile data network
services were adopted to provide faster and high-speed internet services were introduced. Melita
also become first to establish the superfast 4.5 G on the Maltese island as it helped to make the
country as the fastest network operator. With the introduction of new technology, it enables the
public of Malta's to download the data at high speed that is 33% faster than the network
accessible to Gozo and Malta at 300 mbps (History of Melita, 2019).
Competitive market in telecom sector is key force for economic development and growth
of the company. As telecom sector contributes 2% in the growth of the economy which provides
the job to some 2000 people (Danso and et.al., 2019). In the telecommunication market of Malta
there are three largest competitors that are GO, Melita and Melita each of them have competitive
capabilities to compete with each other. As company faces small players also which involves
mobile virtual network operators and other three institution that are SiS, Ozone and Vanilla
telecoms which provides fixed telephony and internet services. Bandwidth is costlier in Malta as
compared to other European countries because of the fact that Malta is an island (Danso and
et.al., 2019). As GO has 65% of market share which operates in fixed telephony market then
followed by 34% share with Melita in 2016. as in the mobile sector Melita share is 44% then
followed by GO has market share of 38% and Melita has market share of 17%.

Development in Maltese telecoms market has gained more registry in mobile telephony
as the subscribers and traffic volumes in contrast the volume of fixed telephony is been falling
(History of Melita, 2019). Totals subscription for fixed line was 2,34,383 at the end of 2016
which was 2,30,226 a year earlier. Which represents that landlines are largely replaced with
mobiles. But still 90% of Maltese are using fixed line. As with mobile the numbers of out-
flowing communication calls are 9.9 %. this means that mobile penetration has increased its
share in the market. The SMS sending are declining steadily in the Malta due to rise in instant
messaging services such as Vibers and Whats App (Tibebe and Ayenew, 2018). The
telecommunication foundation was to provide support to which makes the difference from
Maltese communities. It is the prime objective of foundation to provide fund and support to the
projects that comes under the good programme for connectivity. The aim of the program is to
improve the innovative technology related to mobiles which can bring social change.
The key challenges faced by the company will maintain fair competition and help to
adopt the changes which will facilitate more modified facilities to next generations. As in the
long run the companies need to find different ways for the generation of revenues which can be
generated by offering high value services to the user of melita (Jerez and et.al.,2018). The
company may face challenges in relation to changes in technology rapidly which will affect the
company to invest huge amount in the adoption of technological advancement. When rivals’
companies are able to invest more amount in adoption of the innovative mobile technology it
generates more revenue and occupies larger markets shares as compared to others rival firms in
the market (History of Melita, 2019). Another challenge is advancement in the Gigabit economy
as the rival companies may adopt different offers to accomplish more market share in
telecommunication sector. The companies may offer high speed connectivity at lower price
offered to the public. As Malta expected to achieve economic growth with the help of trigging
demand for resilient bandwidth which creates the opportunity to grow in the market. The
government role will be transferred to the private’s sector for the growth with the help of
adoption ICT innovation. As the technologies deployed in telecom company’s emphasis on
healthy working environment which also requires huge investments to thrive the ecosystem of
suppliers and regulatory framework that support the strong competition. As developing of gigabit
technology is not easy in the economy without huge investment in Malta (Parker, 2018).

Markets position of Melita is from last 20 years over 22 percent of mobiles in Malta as
the Melita is branding product, the agreements vary from product, services re-sale a roaming.
The company has many partner like apex and fortino its investor are GMT Communications
Partners, Blackrock Communications, Gasan Group and MC Venture Partners (History of
Melita, 2019).
Unique market proposition of Melita company to build the trust of customers by
providing high speed connectivity and competitive price for the data networks. The company
tries to adopt the unique technology for introduction of high speed connectivity in the markets
Malta. The company vary data charges when it faces tough competition in the market in
telecommunication industry to survive. As using of differentiated pricing policies makes the
customers easily switch over the Melita (Danso and et.al., 2019). The company uses advertising
as promotional tool on large basis from rival companies to increases its market presence and
creates new customers which helps the company to be sustained in market. As Melita is oldest
and largest telecommunication firm which create the sense of trust for the consumers due its
goodwill and pure image in the markets of Malta (History of Melita, 2019). The company is able
to deliver good customers experience with the help of providing innovative mobile networks
with high speed connectivity due to which customer gets satisfied with the services of the Melita
and gives valuable experiences to the consumers (Parker, 2018).
2. Marketing audit and market attractiveness and potential for market growth
Marketing audit refers to as a thorough analysis of the complete business environment
where in the company deals or wishes to work. Marketing audit may also be defined as a
comprehensive and systematic evaluation and analysis of both the internal and the external
business environment (Moutinho and Vargas - Sanchez, eds., 2018). The major reason
underlying the marketing audit is that the business exists in the dynamic and ever-changing
world where changes takes place very frequently which may affect the business in both good and
bad way. Therefore, it is very necessary for the company to do the complete research of the
market that what things are in favour of company and which are not favourable for the company.
There are many different types of tools which company can employ in order to carry on a market
audit. Some of these marketing audit techniques for Melita in Malta are discussed in the
adjoining points below-

SWOT analysis- It is a marketing audit tool used by Melita in order to know its internal
position. It is a type of strategic tool which is used in order to evaluate the different strength and
weaknesses which the company has and what are the underlying threats and opportunities which
Melita can face from the outside environment. This tool helps in knowing the strengths and
weakness and the opportunities and threats present in the market and then accordingly plan the
business on way of success. Melita in Malta SWOT analysis is discussed in the following table-
Elements Description
Strengths  The major strength of Melita is that it has a strong brand
position within the market and has subsidiaries in many
different countries such as Europe, Africa, Asia and many
joint ventures in Italy operate under the name of Melita itself
(Heding, Knudtzen and Bjerre, 2015).
 Another strength of Melita is that in Malta it is one of the
leading companies in the field of telecommunication in terms
of largest number of customers.
 Another strength of the company is that it provides a wide
variety of different products and services which attracts more
and more customers. The different types of services provided
by company in Malta are like voice SMS, different type of
mobile data services such as 3G, 4G, 4G+ and other ancillary
products.
Weaknesses  The major weakness is that as the company operates in many
different countries all over the globe so it is very difficult for
the company to manage all the legal requirement of all the
subsidiaries within the countries (Di Benedetto and
Lindgreen, 2018).
 Another major weakness is that the Malta have different
types of culture of working and company has some different
set pattern of working. Therefore, sometime there are some
problems being created because of these differences.

 One more weakness of the company is that it is not very good
at forecasting the demand. This is a weakness because of the
reason that if the demand will not be estimated in proper way
then the sales will not be appropriate.
Opportunities  The major opportunity for Melita is that the cellular market
within Malta and nearby places is growing and this is an
opportunity for the company as it can grow to a more extent
and can earn immense amount of revenues and profits.
 Another opportunity is Mobile Network Portability which is a
newer concept that helps a person to convert other network
operator within Melita itself.
 Also, Melita is bringing a new technology names
Narrowband- Internet of Things technology in Malta which is
developed in order to enforce efficient communication and
long-term battery for the devices distributed all over the area.
Threats  The major threat for Melita is its competitors which are
trying to copy Melita so that its customers can be attracted by
the rivalry firms (Kleinaltenkamp, Plinke and Geiger, 2016).
The competitors of Melita in Malta are Redtouh, GO, Melita
and many other.
 Another threat is that many new companies are also entering
into the market with cheaper and lower offers which is a
major threat for the company.
PESTLE analysis- This is yet another tool which is used for marketing audit. PESTLE
analysis is useful in analysing the impact of external environmental change on the business
performance (Mariani, Di Felice and Mura, 2016). It is necessary to apply this marketing audit
technique which helps in analysing all the external factors and their impact on the business. For
understanding the market position, it is very necessary for Melita to conduct a PESTLE analysis
in accordance with the marketing condition of Malta. This will help the company to know that

whether there is growth for the company in Malta or not. The PESTLE analysis carried on by
Melita is discussed in the connected point below-
Elements Description
Political factor There is a lot of political instability in Malta which is not at all
good for the Melita (Malta political stability, 2019). It is because of
the reason that due to frequent changes in the political sector there
are also changes in the cellular policies which affects Melita
potential growth. Within the political sector, taxes on Malta have
increased then the Melita also has to pay more taxes and vice versa.
(Morschett, Schramm - Klein and Zentes, 2015). But if the tax rate
will be lower then it is an opportunity for Melita because of the
reason that now the company will have to pay less taxes. This
opportunity will have a positive impact on the business because this
money can be invested in other options.
Another impact of political factor on business is that the company
sometimes has to develop some infrastructure in accordance with
the guidelines provided by the government. Like for instance the
government of Malta has specified that the network tower of
cellular companies needs to be in the range of 20 km from the city.
This is because of the reason that these towers emit some radiations
which are harmful for the people. This is also an opportunity and
the positive impact of this policy is that if company follows this
rule than the goodwill of the company will increase. This is because
of the reason that company is taking care of the environment
therefore this will be liked by the population of Malta.
Economical factor With increase in technology and globalization there has been an
immense increase in the consumption of data and other mobile
services. Therefore, this is very good for company as it can increase
its level of business in other countries as well and earn more profits.
Also, this has provided many job opportunities for the people where

more branches have been opened and this has increased the
purchasing power of the people (Karjaluoto, Ulkuniemi and
Mustonen, 2015). Presently in Malta there is condition of inflation
which is not beneficial for Melita as people because of high charges
not use many networks (Index of Inflation, 2018). This has a
negative impact on the business because now as the rates are higher
of 4 G network so the consumers will shift to 2G and 3G network
and because of this the sales of Melita 4G network will be impacted
negatively.
Social factor The socio-cultural factor plays a very important role in identifying
the potential growth opportunity for Melita. It is because of the
reason that if what the company is proposing is not liked by the
people living in Malta then they will not like the product. The latest
cultural trend is use of mobile is on rise because many people have
developed much interest and addiction in using mobile. Therefore,
this is an opportunity for company to increase its operations in
Malta as there is more usage of mobile phones by residents of Malta
(Taheri, O’Gorman and Baxter, 2016).
Technological factor This is the most important factor which every company needs to
pay attention to. It is majorly because of the reason that in this
modern and globalized world there are new technology coming
frequently and if the company not focus on this then it will become
obsolete. Therefore, it is very necessary for Melita to time- to- time
do a thorough study of the whole technological environment so that
it can adapt to the latest techniques. Malta focuses on new and
advanced technology which in turn helps in high growth
opportunities. Like for instance there is growth of 5G network in
Malta hence Melita can try to come with 5G networks in Malta.
This is an opportunity for the company to develop its own 5G
network and establish in Malta. This will have a positive impact

because of the reason that it will be more favoured as they like
more advancement in technology.
Legal factor As the company operates in many countries. Therefore, every
country has its own set of rules and regulations and different laws
which are applicable to that particular country only (Najafi - Tavani
Sharifi, and Najafi - Tavani, 2016). Before entering into a new
country or new market it is very necessary for the company to
understand the legal structure and then enter into that market. Like
in one country harsh advertising is normal but in many countries
harsh advertising is a crime. Similarly, in many countries taking
care of environment is not necessary but, in some countries, taking
into environmental consideration is a must. Similarly, in Malta also
there are such laws which have positive impact on the company.
Therefore, Melita follows all the applicable rules and regulation like
Contract act, Employment act and other similar laws than it will be
an opportunity. This will have a positive impact because of the
reason that the consumers of Melita will like the fact that its
company is following all the legal requirements.
Environmental factor In this modernized era, it is very necessary for the company to take
care of the environment to a great extent. This is majorly because of
the reason that because of globalization and modernization the
consumers have become more advance and ethical in their approach
and they also want that Melita also needs to pay attention to the
environment. Melita must comply with various environmental laws
and regulations in order to effectively carry out their business
operations. The laws are like Environmental protection law,
Corporate social responsibility guidelines and many more. For this
the company can place its towers to a distant place so that the
residents of Malta are not disturbed with the radiations coming
from these towers (Wierenga and Van der Lans, eds., 2017). The