Marketing Strategy of New Common Carrier to Enter into Domestic Mobile Telecommunication Business

Park, Hwaill Department of Business Administration Graduate School of Business Administration Yonsei University

The purpose of this study is for a new entrant to develop and implement marketing strategy based upon customer needs found from marketing research and environmental analysis in monopolistic domestic mobile telecommunication environment.

Market demand forecast of mobile phone service in Korea, technological characteristics and environment, government policy to open domestic mobile telecommunication business, and marketing strategy of existing operator are also considered. Also, the development trend of domestic mobile telecommunication market was examined in terms of product life cycle and technology life cycle theory.

Key target market segmentation was conducted by means of market research and secondary data analysis and Logistic model was applied to forecast market demand. Among market surveys are current market survey, target market survey, distribution survey conducted by phone and face-to-face method. Market survey was conducted in order to discover customer nerds and wants which bring up market opportunities for new entrant.

Key success factors to meet the opportunities were considered to develop marketing strategy. Major emphases of the strategy are aggressive investment and R&D effort needed to improve service quality and rapid penetration by means of competitive service pricing. It was recommended that severe head-to-head price competition with current operator is not a proper strategy but that an excellent customer service system which is required to provide quality service for customer is preferred. Establishing efficient distribution channel is essential to satisfy customer wants promptly, It is evident that key success factors for entry into the market are availability of diverse add-on features and existence of quality customer service program.