Strategic Marketing Management: SingTel's Approach to Esports Services

This report provides a comprehensive analysis of SingTel's marketing management strategies as it ventures into the esports market. It begins by examining the external marketing environment, including political, economic, social, and technological factors, to identify potential competitive advantages for SingTel. A SWOT analysis is conducted to evaluate SingTel's internal strengths and weaknesses, as well as external opportunities and threats. The report also includes a TOWS analysis to formulate strategic options based on the SWOT findings. Furthermore, it discusses market segmentation, perceptual mapping, and market positioning strategies for SingTel in the esports sector. The report concludes with recommendations for SingTel to effectively navigate the esports market and capitalize on its potential, considering factors like market penetration, global presence, and the competitive landscape. Desklib offers this and other solved assignments to aid students in their studies.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the university
Author note

1MARKETING MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Determination of the external marketing environment....................................................................3
Identification of the industry potentiality........................................................................................5
SWOT ana1ysis...............................................................................................................................6
Strengths......................................................................................................................................6
Weaknesses..................................................................................................................................6
Opportunity..................................................................................................................................7
Threats.........................................................................................................................................8
TOWS analysis................................................................................................................................9
Strengths – opportunities.............................................................................................................9
Weakness – opportunities............................................................................................................9
Strength – threat.........................................................................................................................10
Weakness – threat......................................................................................................................10
Benefit segmentation.....................................................................................................................11
Perpetual mapping.........................................................................................................................12
Market positioning strategies.........................................................................................................14
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................16
Reference.......................................................................................................................................17

2MARKETING MANAGEMENT

3MARKETING MANAGEMENT
Introduction
Internet plays an important role in the current global scenario including the business as
well as for the individual use. Moreover, the popularity of the internet is increasing with the
increase in its alternate uses among the users and becoming the major revenue source for the
telecommunication sector (Battistella 2014). This is due to the reason that a few years back,
mobile connectivity was the major source of revenue for the telecommunication sector but in the
current time, internet service is taking the pole position by making the voice call services
irrelevant. This situation is also making the exiting players in the telecommunication sector to
upgrade their connectivity infrastructure along with offering more internet based services. In this
case, Singaporean telecommunication limited is the one of the leading name in the Asian market
(Kim, Jun and Lee 2014).
Singaporean Telecommunications Limited or SingTel is based out of Singapore and is the
leader in providing the internet based services to the customers across Asia, Australia, Europe
and the United States. It is reported that they are currently having more than 650 million active
subscribers across the globe (singtel.com 2019). Currently, the service portfolio of SingTel
includes voice call services, information communication solutions and multimedia contents such
IPTV services. However, in the current business scenario, esports are also emerging as a
potential internet based services across the world with the more online players are getting
involved.
This report will discuss about the internal business factors for SingTel in their current
business approach along with determining their effectiveness in overcoming the challenges. In
addition, market segmentation and positioning will also be discussed for SingTel and

4MARKETING MANAGEMENT
accordingly a few recommended steps will be stated. The external determining factors will also
be discussed in this report that will help in identifying the competitive advantages of SingTel.
Determination of the external marketing environment
Political factors  Overall political environment in the South Asian region is
favorable and this is helping SingTel to expand well in the region.
 Holding of the Singaporean government in SingTel is also helping
in dealing with the regulations and political challenges effectively
(Keane and Fung 2018).
 Esports industry is related to the entertainment market and thus
they are having less political issues in respect to the customer
service providers.
Economical factors  Average cost for esports is reducing with the development in this
industry. Thus, potentiality is increasing for the operating firms.
 However, due to good initial cost in esports, emergence of
economic recession or downturns will cause reduction in the
potentiality (Seo 2013).
 Esports is still being given less preferences compared to the
conventional sports and thus spending will be more restricted.
Social factors  According to different reports, popularity of esports is rapidly
increasing and with the inclusion of online games in different sports
events such as Asian games, it is further getting amplified.
 Esports is also applicable for domestic and amateur usages and thus

5MARKETING MANAGEMENT
the social preferences are more over the conventional sports.
 There are less cultural barriers for esports and thus the social
challenges are also low.
Technological factors  Esports have come up a long way in terms of technological
improvement, which may be a challenge for the new entrants such
as SingTel in operating in this sector.
 Extensive infrastructure of SingTel will also help SingTel in
operate in this new sector in the most holistic manner.
Competitive advantages of SingTel
 Being in the business scenario in the South Asian region for years will help SingTel to
deal with the political challenges in the case of esports business also.
 SingTel is having adequate knowledge about the telecommunication sector and thus they
will be able to design the service elements according to the economic condition of the
target market.
 SingTel is already having favorable market penetration, which can help them in meeting
the increasing social preferences.
 It should be noted that the data services of SingTel should be in line of the current market
standards and they should offered the latest technologies in the market.
 However, SingTel is already offering different data services, which will help them to
design esports centered data services (Naha 2018).
Identification of the industry potentiality

6MARKETING MANAGEMENT
In the current time, internet services are highly penetrated in the market with having the
presence in each and every corners of the world. Thus, the population covered by the internet
services is also getting more (Das 2017). In the case of SingTel, entering in this market will be
one of most potential strategies. This is due to the reason that, according to the blue ocean
strategy, organizations should enter in the market, which is less competitive and emerging.
Growth of esports market is going recently and competition is still lower than that in other
internet based services such as IPTV and broadband.
SingTel will have the maximum potentiality by offering the internet facilities specific for
the requirements in the esports along with offering varieties of online games to different users.
This will help them to have both the forward and backward integration in providing the esports
services. In addition, the more will be the popularity of the esports, the more will be the demand
for data. Thus, offering esports centered data services will help SingTel in having more
potentiality.
SWOT ana1ysis
Determination of the internal effectiveness for SingTel is important to have fair
understanding about the gap areas in the current business approach.
Strengths
One of the major strengths for SingTel is their high market penetration mainly in the
Singaporean market. This is due to the reason that it reported about having the market leadership
in both voice and data services by SingTel. In addition, SingTel is having shares of some of
market leaders in the telecommunication sectors in other countries. For example, they are having
stakes of Bharti Airtel, which is the largest telecommunication service provider in India. Thus, it

7MARKETING MANAGEMENT
can be concluded that high market penetration of SingTel will help them to push the sales of
esports services in the market (Dos Santos 2014). In addition, it is also being identified that
global presence of SingTel will further help in having the larger available market for them for
their newer services. The average revenue per user (ARPU) is also more for them compared to
their competitors. This is mainly due to the higher level of operational profit of SingTel. It is
reported that net profit margin of SingTel is standing at 31 percent as of 2018. Thus they are
having the financial capability to develop their esports services and market around the world.
Weaknesses
One of the major weaknesses for SingTel is the dependence on the partnered firms
outside of Singapore. This is due to the fact that SingTel is not having the market leadership as
the single entity in any of their foreign country operations. This may pose challenges in their
distribution and marketing strategy of esports in different regions. In addition, it is also identified
that reduction of the liquidity position of SingTel is their major weaknesses (Dash et al. 2016).
This is due to the reason that liquidity ratio for SingTel is decreasing from the last few years,
which is already posing challenges for them to maintain their daily activities. Thus, lack of
liquidity will cause SingTel to face challenge in developing the esports services and offering
them to the customers. Moreover, entering in this sector will be perceived as the late entrant as
there is already number of players operating. Thus, the advantages of early mover will not be
gained by them. This will also pose challenge for SingTel to compete with the established
players in the market.
Opportunity

8MARKETING MANAGEMENT
One of the major opportunities for SingTel is the growing popularity for online gaming.
Thus, the more will be the trends for online gaming, the more will be the demand for game
specific and higher capacity internet services. It is denoting that market opportunity for SingTel
is increasing. It should also be noted that SingTel is already having the research and development
wing known as FutureNow Innovation Centre, which helps them in enhancing their digital
services (Jenny et al. 2017). Thus, it will be beneficial for them to develop the services in
relation to esports and will also be able to continue the developing cycle. It is identified that
SingTel is already developed wireless communication technologies, which will be beneficial for
them in developing the esports services. In terms of the marketing opportunities, SingTel will
gain the increasing viewership of the online gaming programs in their network. It is estimated
that by 2019, the global viewership for the esports will be more than 345 million, which denotes
that SingTel is awaiting huge traffic in their network if they can offer proper services in this
sector. Thus, it can be concluded that entering in the esports market will help SingTel to
diversify their existing business along with increasing the revenue.
Threats
Regulations and legislations are the major challenge for SingTel in operating in this
sector. This is due to the reason that different countries are having different sets of rules for
buying frequency spectrums. This will cause added cost for them. In addition, it should also be
noted that high level of taxation will also pose threat for SingTel due to the fact that
telecommunication sector is not exempted from any tax benefits. Thus, it will take the toll on the
profitability of SingTel. Emergence of competition can also be termed as a prime threat for
SingTel due to the reason that the more will be the competition; the lower will be the
profitability for them. In addition, increase in the competition will further change the market

9MARKETING MANAGEMENT
scenario frequently, which will also be a challenge for SingTel. Fluctuations in the foreign
exchange rates will also be a major threat for SingTel due to the reason that major chunk of the
business for them is coming from outside of Singapore. For example, reduction in the valuation
in one of their foreign markets will have direct impact on their investments and this will also
have adverse impact on the entire business. In addition, it should be noted that in the current
volatile business situations, probability of currency fluctuations is more for SingTel and thus the
chance of threat is also more.
Strength
 Higher market penetration
 Global presence
 Higher operational profits
Weakness
 Lower liquidity ratio
 Dependence on the partnered firms
 Late entrant in the esports sector
Opportunity
 Increasing popularity of esports
 Increase in the viewership
 Opportunity for alternate revenue
sources
Threat
 Stricter regulations and legislations
 Emergence of competition
 Currency fluctuations
TOWS analysis
Strengths – opportunities
This element states about leveraging the strengths of the company in taping the
opportunities. In the case of SingTel, the major strength for them is higher market penetration,
which can be used to tap the growing popularity of esports. Higher market penetration is also

10MARKETING MANAGEMENT
helping in having positive brand image in the different market. Thus, initiation of the product
development strategy will further help to market the esports services. It should be noted that with
the global presence of SingTel, they will be able to identify the available markets for esports and
with high level of market penetration; the new services can be effectively distributed. In addition,
it is also identified that another major opportunity for SingTel will be the provision for
alternative revenue sources, which can be met by their strength of higher operational profits. This
is due to the reason that favorable financial capability of SingTel will further helps them to
develop different services based on esports and can tap the different customer segments.
Weakness – opportunities
It is identified that SingTel is very much dependant on their strategic partnerships with
other firms in different countries. It is termed as weakness as it will create hindrances in foreign
market operations but with initiation of strategic relationships with the firms already operating in
esports, SingTel will be able to tap the growing market for online gaming. In addition, initiation
of the strategic relationships with that of different esports entities will help in gaining the
expertise required for SingTel to have the strong foothold in this sector. On the other hand, late
entry in this sector is also being identified as a major weakness for SingTel. However, this can
also have a number of benefits for them due to the fact that being the late entrant; SingTel will be
able to identify the key trends in the market and design their services accordingly. Thus, the
probability of facing market challenges will be less for them.
Strength – threat
One of the major threats of SingTel being identified is the emergence of competition. In
this case, the strength of SingTel in having favorable market penetration will be beneficial for

11MARKETING MANAGEMENT
fending off the competition. This is due to the reason that new entrants will find it difficult to
penetrate the market along with cover the market area served by SingTel. Thus, even though the
emergence of competition will affect SingTel by their profitability but it can be waived off with
the help of higher market penetration of them. In addition, it is also identified that SingTel is also
facing the threat of frequent currency fluctuations, which may be mitigated by leveraging on the
higher level of operational profits of them. This is due to the reason that higher operational
profits will be helpful for SingTel to deal with the fluctuations in the foreign currencies to a
certain extent.
Weakness – threat
One of the major weaknesses being identified for SingTel is lower level of liquidity ratio.
This may further led to the threat for currency fluctuations in the long term. This is due to the
reason that emergence of the currency fluctuations will have more impact on the business if
SingTel is not be able to posses proper financial health. Thus, it is recommended that cash flow
should be increased in the business that will enhance the liquidity ratio of the company. The
more will be the liquidity ratio of SingTel, the more will be their financial capability to withstand
the impact of currency fluctuations. On the other hand, it is also being identified that in terms of
the strategic partnerships, SingTel should opt more for acquisitions over joint ventures. This will
help them to have their presence in the esports sector along with having lower dependability on
other firms.
Benefit segmentation
In the current marketing scenario, conventional segmentation variables are becoming
more irrelevant due to the fact that customer segments are becoming more globalized and unified