1. 1. Executive Summary

Telkom South Africa aims to provide Wi-Fi and internet services targeted to end users in Brazil. This plan seeks to generate a significant increase in company sales and profits from the delivery of infrastructure to strategic align with international partners.

The highlight of this plan are the targeted rollout sites as well as the amount of users we anticipate using the Wi-Fi service. The targeted gross margin and sales revenue for the first 5 years of this plan are presented in the charts and tables later in this plan We still need to do. These figures represent the key prospects available for public Wi-Fi Service in Brazil. These targets are attainable through a proactive approach and by partnering with the 2014 Brazil Soccer World Cup organizing comity.

The following business plan has been created on the basis of extensive market research which showed that there will be an massive demand for public internet services. With Brazil’s mountainous topography and dense popupated landscape it is almost impossible to cover large areas with GSM masts. Therefore it is economically viable to rollout smaller areas with local Wi-Fi access. Consumers demand high speed internet connectivity which technologies like 802.11 b and n will give them. There are multiple other benefits going with Wi-Fi rather than GSM. One such benefit is that the consumer can experience speed greater than 50mb/s without having to own a 4G LTE device. Wi-Fi is much cheaper to roleout than the latest 4G LTE GSM service.

The plan highlight that this service will be launched and fully operational ready for 2014 for the FIFA Soccer World Cup in Brazil. All ticket holders will get a free 10mb voucher which one could redeemed from any Wi-Fi Access point, at which point they can choose to become a subscriber to the ongoing paid service. The target market is more than just local and international soccer fans. This is a service that will be viable after the World Cup, seeing that most of the Capex would then be paid for.

2. Situation Analysis

South Africa within the global market
In 2011, South Africa officially operates as a member of the BRICS group of countries, the exclusive group of large developing nations leading the world out of the global recession, including Brazil, Russia, India, China and now South Africa. South Africa has much to offer and gain from these emerging economies – that currently make up about 42% of the world’s economy.
In contrast to first world countries, Africa is a continent on the rise. Development is rapid and dramatic, as Africa plays ‘catch up’ through a vast array of industries including telecommunications, infrastructure, energy, banking, insurance, housing and education.
South Africa and the 2010 FIFA World Cup
Decades of negative news coverage have often presented a one-sided view of Africa in general. The 2010 FIFA World Cup changed the image and perception of the continent internationally. Coverage of the event presented viewers with a different view of Africa, one of bustling cities, world-class facilities, speeding highways and an affluent people. Widespread media exposure and focus on Africa has enhanced the region’s brand as a global tourist destination and a sophisticated emerging market of choice for foreign investment.

About Telkom
Telkom is one of Africa’s largest communications companies, providing integrated communications solutions to both enterprise and consumer customers. Telkom is a leading communications services provider in South Africa and on the African continent. As of 31 March 2012, they have had approximately 4 million telephone access lines in service and 99.9% of Telkom’s telephone access lines were connected to digital exchanges. Telkom offers business, residential and payphone customers a wide range of services and products.

Telkom is aware that brands alone are not enough to be successful within the market. So taking this into account, from the very beginning, Telkom developed its business nationally and quickly became enlightened to the fact that the telecommunications industry is a social habit. That is why Telkom has always shown respect for diverse cultures and traditions, by introducing new products that services each relevant end of the market and even a little in between. Telkom activities to integrate itself as much as possible into the cultures and traditions where it is present, adding also to the local environment its own set of values. Therefore, Telkom embrace cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age.
Furthermore, Telkom believes that its activities can only be of long term benefit to the company if they are the same time beneficial to the local community. The environment is changing very rapidly and in particular customers are looking for answers to their concerns.

Internal assessment
In today’s rapidly changing business world, past results are no guarantees of future successes. It is believed that it costs five times as much to attract a new customer as it does to retain an existing one (Furlong, 1993:2).

Given the above scenario, Telkom has taken a universal approach in 2009 to achieve greater consistency and effectiveness in marketing while remaining responsive to local market needs and opportunities. With the focus on Global approach to exceptional strategy and communications planning, Telkom strives to create a universal mobile and internet brand. Telkom has repositioned itself and in so doing has a footprint in more than thirty two African countries and its current focus is to cross over continents and make an impact on the next soccer world cup hosts, Brazil and to reflect the business practises for multinational sales and marketing and to maximize available funding for this huge telecommunications project. As Telkom has previous experience of successfully providing infrastructure and 100% communication feeds to hundreds of countries and millions of people during the 2009 Confederations cup and the most successful soccer world cup to date in 2010 it is fitting that Telkom only focuses on those markets and consumer segments where there is the highest potential for return on investment by promoting the Telkom brand in the emerging and transitional markets of Brazil, not forgetting their core markets of Sub Saharan Africa of course. Even though marketers have found the international marketplace to be extremely hostile, Telkom has still chosen to focus and launch their public WIFI offering in Brazil.

The motivating factors for entering the Brazilian market are as follows: 1. Brazil is a vibrant and top performing tourism destination. 2. Large market size ( Thanks to a huge upper and burgeoning middle class of 50 million people) 3. Major profit potential. 4. Brazil is considered an emerging new market with great economic potential, particularly as its part of the developing world. 5. Offers by foreign distributors. 6. The Brazilian government will encourage the establishment of manufacturing plants in their country in order to create jobs. 7. As a result Telkom international will have an increasing growth rate. 8. Brazil is a ripe market for continued expansion due to the country hosting the 2016 Summer Olympics and the 2014 FIFA World Cup. 9. Continued business ties with South Africa as both countries are part of B.R.I.C.S. (The political and legal environment) 10. The official FIFA World Cup handover between South Africa and Brazil

Telkom is Africa's largest integrated communications company. They understand that the quality of communication services is a key enabler of global competitiveness.
Telkom's combination of fixed and mobile services provides an unrivalled business offering and aims to continue to be a market leader. This offering is being expanded even further, through the release of converged products, which will allow users to move seamlessly between fixed and mobile, voice or data services. Global public Wi-Fi hotspot numbers are set to grow from 1.3 million in 2011, to 5.8 million by 2015, a 350% increase.

Wardriving in Sao Paulo – Brazil
In this report Telkom has analysed the security of the Wi-Fi networks in Sao Paolo, Brazil. There are two chief reasons for this: * Brazil is the largest country in Latin America * Sao Paolo is the most important city in Brazil business-wise.
Sao Paolo is a lively and business-oriented city. Its geography and the architecture of its skyscrapers make it possible to easily implement Wi-Fi networks. In every corner of the city we visited there was at least one available Wi-Fi network. This report's data was gathered in public places: business areas, streets, parks, restaurants and transport stations. Telkom’s findings are unveiled below, starting with the physical characteristics of the equipment detected. It is worth noting that this research covers the 802.11a/b/g protocols.

Wi-Fi channels in Sao Paolo are shown in the following graph:

Wi-Fi network channels

Regarding the networks’ transmission speeds, most of them work with standard 802.11g – 54Mbp/s. This shows that the equipment used to implement the Wi-Fi networks is new or new generation -the maximum speed or the previous generation (802.11b) was only 11Mbps.

Wi-Fi network speed

What can be said about vendors or manufacturers of the hardware used in Sao Paolo? Our research reveals that a large portion of Sao Paolo's market belongs to D-Link. Nearly 42% of all Wi-Fi networks in Sao Paolo rely on D-Link-manufactured equipment. The second position, with 26% of the market, is held by Linksys.

Wi-Fi hardware vendors

As for the type of Wi-Fi networks in Sao Paolo, as expected, around 98% are infrastructure-type networks and only 2% are Ad-Hoc type.

Types of Wi-Fi networks
Based on available data regarding the number of networks and statistics shown above, we could conclude that Brazil is doing things right. However, more serious thought should be given to security of the Wi-Fi networks in order to guarantee: * Integrity * Confidentiality * Availability

Wi-Fi Roaming Analysis

Roaming, in the context of an 802.11 wireless network, is the process of a client moving an established Wi-Fi network association from one access point to another access point within the same Extended Service Set (ESS) without losing connection (e.g. within a defined time interval, usually in the range of a few seconds).

The Situational Analysis of Brazil
Latin America promises to be an engine of future growth for the world economy. Industries such as telecommunications, financial services, consumer goods, manufacturing and healthcare are advanced and face increasing domestic competition, as consumers increasingly demand first-class products and services. Brazil is liberal yet Evangelist.

While development in the region has been rapid over the past few years, it has been disorganized. As a result, there are stark disparities between the private and public sectors and many countries within the region are at different stages of development. The business opportunities from the natural resources, ethnic and geographic diversities and warm business cultures contrast starkly with the tremendous social disparities and major economic challenges that each country faces.
There are 40 cities in Brazil with at least 500,000 inhabitants, a daunting fact for anyone trying to penetrate the world’s 7th largest economy.

Demographers often describe Latin America as a “sea of poverty dotted by islands of tremendous wealth”. Poverty remains a vexing issue to the region while simultaneously Latin America is home to 36 different billionaires, according to the Royal Geographic Society. The region has the world’s worst distribution of income, which serves to disguise the impressive purchasing power of a slice of the population. With a GDP of over $400 billion USD, Mexico City’s middle class includes over 300,000 households that each earn over $250,000 USD per year. Traditionally, producers of luxury goods and basic staples have thrived in Latin America where concentrated wealth lives side by side with vast numbers of aspirational consumers.

Brazil has the region’s strongest and most advanced financial sector. Banking and credit penetration in Brazil, though higher than Mexico, is still less than 1/3 of that of the US. There is enormous potential to extend banking products to the masses, particularly those in the north underserved by banks. Beyond the 23.5 million people that moved up to ‘consumer class’ (SES C) between 2005 and 2008, another 3.6 million joined this group between 2010 and May 2011, making this segment the largest among social economic segments (over 105.4 million people as of May 2011). More than 127.9 million people are in consumer classes A, B and C combined. Unemployment has also further decreased over the last 3 years, from 8% in 2008 to 6.1% in 2011. Brazil is part of Mercosul (Southern Common Market), which promotes free movement of goods, currency and people amongst its members, Argentina, Brazil, Uruguay and Paraguay. As a trade union, its objective is twofold – to promote internal trade among members but also to provide a wall of protection from the cheap access of foreign made product. As strong currencies have overwhelmed manufacturers in Argentina and Brazil, the union’s most important members, more attention has been paid to castigating cheap imports from China, a problem for many US, Japanese, Korean and European brands that manufacture in Asia.

Recent policy tonal changes on trade reinforce the need to manufacture domestically at least some of the products that one chooses to sell in Brazil. The last two governments have gone to great lengths to improve the transparency and predictability of the investment climate in Brazil. Not surprisingly, FDI has soared, reaching an estimated $57bn USD in 2011, more than any country in the region.
In Brazil, profit seekers must push beyond the familiar south-east and tap huge demand in the north and southern tip of the country. Greater competition also obliges businesses to remain more keenly aware of their business environment, by employing monitoring practices, either internally or with external assistance. Business investments will receive greater scrutiny in an environment of less frenetic growth, thus pre-investment intelligence gathering becomes even more essential than ever.
Brazil is a vibrant and top-performing market within BRICS and we have identified our marketing strategy to target Brazil first due to Brazil hosting next 2014 Soccer World Cup. We foresee it being an opportunity for South Africa to shake hands with Brazil and handover the world cup.

There will definitely be changes and economic growth due to the country hosting the 2014 FIFA World Cup. The market is ripe for a telecommunications company to provide a sustainable WIFI solution that is in pilot phase over the duration of the world cup; running in June 2014. Telkom will market this new WIFI product by engaging tour operators, travel agents, airlines, and the media by means of Internet

3. The Marketing Mix

In 2010 Brazil’s economy out performed most projections with GDP growth of 7.5% following a 0.6% decline in 2009. Ranked number 7 in the 2010 overseas Market Portfolio Analysis.
Through identifying their objective, which is to introduce and distribute the Public WIFI and the OLWAYS ON package in Brazil, Telkom International has set the integration of the marketing mix elements.

Product
Telkom’s public WIFI offering and their ALWAYS ON solution has achieved international appeal in Africa. The company has adopted a product adaptation approach both at corporate and business level, as they feel the product needs to be adapted because of local needs in Brazil. Consumers demand high speed internet connectivity with technologies such as like 802.11. There are multiple other benefits going with WI-FI rather than GSM. One such benefit is that the consumer can experience speeds greater than 50mb/s without having to own a 4G LTE device.

Promotion
Telkom has proved its trustworthiness and good corporate governance. The organisation has used their improved public image to its advantage when targeting sectors and advertising all their services. This is being accomplished through: * Developing good public relations by distributing press releases to all media sources. * Telkom uses public icons to communicate its brand values. * South Africa is a sport loving country with different sport codes being followed by different groups. Seasonal sport is being targeted as the medium to spread the brand image and the message effectively. ( Bafana vs. Brazil friendlies)

Price
Because pricing products in foreign countries is complicated by exchange rate fluctuations, tarrifs, government intervention and shipping requirements, Telkom marketing managers have decided to introduce the WIFI offering at a lower price for their product in Brazil which will help to build market share.

Place

Telkom International aims to provide WI-FI and Internet services targeted to end users in Brazil. Telkom has identified key areas, such as Brazil’s mountainous topography and densely populated landscape to roll out their local WI-FI access which is more economically viable than providing these areas with GSM masts. Telkom has targeted the upcoming showcase in Brazil and this service will be launched and fully operational for the 2014 FIFA Soccer World Cup in Brazil.

4. Findings

Strengths: * Economic Scalability and Cost Effective Solution * Business Flexibility and Student Communities * Space Age Technology * WiFi uses unlicensed radio spectrum and does not require regulatory approval for individual deployers. * WiFi has a set of global standards. Not like the cellular carriers, the same WiFi users can work in different countries around the world at all time. * WiFi networks can support roaming. This allows mobile users with laptop computer to be able to move from one access point to another. * Prices are considerably lower as competition amongst vendors' increases. * Reduced CAPEX and OPEX including backhaul for both operators and users, and effective migration from previous release shall be possible.
Weaknesses:
* Spectrum issues have yet to be overcome * Security regulations for Mobile WIMAX has not yet been solved * Mobile WIMAX has yet to made commercial
Opportunities
* Acquisitions * Asset leverage * Innovation * Online * Product and services expansion * Takeovers
Threats
* Competition * Cheaper technology * Economic slowdown * External changes (government, politics, taxes, etc) * Exchange rate fluctuations * Lower cost competitors or imports * Maturing categories, products, or services * Product substitution

5. Objectives

Traditionally Telkom has strategically concentrated on the international market by installing and running tier 1 infrastructure like sub-seas cables and international satellite services. By considering this marketing plan, Telkom will be creating a global footprint which caters directly for end users. The following objectives are proposed which will make Telkom the leading WiFi Internet provider in Brazil.

* Increase lifetime value of customers * Aiming for 12 or 24 month subscriptions from customers * Create a world class network * Build a brand that would be trusted by users * Execute a strategy which will influence consumer behavior * Increase customer satisfaction * Increase visibility and memorability of brand identity * Increase new customers from referral and word of mouth * Be seen as a brand that innovates * Be customer centric in future strategies

Specific
Knowing that Telkom has won the tender to be one of the technology partners for the 2014 Brazilian World cup, This plan aims to leverage on the relationship and give Telkom the opportunity to become the leading provider of localized WiFi internet service in all the cities which will each host a game. Telkom aims to partner with the Brazil World Cup organizing comity to build a trusted brand which would serve local and international users and over time they can trust.

The new brand will start advertising three month be for the opening ceremony of the World Cup. This will assist when the service launch that people recognize the service. The service will be available in most public areas like restaurants, Café’s and stadia. When using a WiFi enabled device the user will het 5mb free, which could be seen as a teaser and test how well the service will work. After the 5mb the users will then be prompted to purchase the service. There will be a pay as you go option as well as more cheaper options like 12 and 24 month contracts. The client could also buy vouchers from participating retailers or just add in to their bill in the restaurant.

Measurable
When launching a new internet service all usages and sales could relatively easily be measured this is by means of the total about of Terabytes that will be utilized and the amount of Megabytes each user will use. The Management Information System will automatically generate reports of new subscribers and usage on a minute by minute basis.

It is also important to have a reliable and very accurate fault finding capability, because if the network is down this means that there is no money coming in ether.

Achievable
The number of people with Internet access in Brazil has hit a record 82.6 million during the first quarter of 2012, out of a total population of 192 million, the research firm IBOPE announced today. As it points out, this represents a 5% year-on-year increase – and a big milestone.

It is important to note that this figure includes multiple connection environments – work and home of course, but also cyber cafés and schools. In other words, it provides a fuller picture than a recent IBOPE Nielsen study which reported that one in three Brazilian had access to the Internet at home or at work.

At that time, it also noted that only 48 million of them were active users – and that number hasn’t changed much, with 48.9 million Brazilians accessing the Internet from home or from work during the month of April 2012.

While this number has grown 14% year-on-year, it is slightly lower (1.7%) than March 2012 results. The same also goes for time spent online – an average of 60 hours in April, compared to 64 hours in March. However, this could be nothing more than a seasonal variation following the end of the summer; when looking at the bigger picture, Internet growth in Brazil seems to be a much steadier trend.

If numbers are to be believed, Brazilians may already be looking forward to their next holiday break; the hotel category has grown 192% over the last year and 3.2% in April, boosted mostly by hotel-focused daily deal websites (see our previous post mentioning Hotel Urbano). As for humour websites, their audience increased by 72% between April 2011 and April 2012.
Brazil fixed-line, broadband, and mobile statistics – 2010 - 2012 Sector | 2010 | 2011 (e) | 2012 (e) | Fixed-lines in service | Total subscribers (million) | 42.14 | 42.80 | 43.40 | Penetration rate | 21.3% | 21.4% | 21.4% | Annual growth | 1.6% | 1.6% | 1.4% | Broadband | Total subscribers (million) | 13.80 | 16.60 | 20.00 | Penetration rate | 7.0% | 8.3% | 9.9% | Annual growth | 21% | 20% | 20% | Mobile telephony subscribers | Total subscribers (million) | 206.26 | 246.38 | 293.00 | Penetration rate | 104% | 123% | 145% | Annual growth | 17% | 19% | 19% |
(Source: BuddeComm based on industry data)

Realistic
By making this a reality Brazil can enable more citizens with internet access. This could be used to as a vehicle to deliver information to citizens. Countries like India have started local internet portals site which citizens can log on to, to get local and government news. This is truly a low cost way to share information and create a online sociality.

Time- Based
Telkom has given themselves 2 years to roll-out this project. There wil be 13 costing cities wich will be rolled out with the service.
List of all the cities Telkom will implement the service. 1. Belo Horizonte 2. Brasília 3. Cuiabá 4. Curitiba 5. Fortaleza 6. Manaus 7. Natal 8. Porto Alegre 9. Recife 10. Rio de Janeiro 11. Salvador 12. São Paulo

The first phase of the project will see the technical infrastructure to be rolled out and ready to be utilized. The next phase of the project is to rollout the service at all MacDonald’s restaurants in the hosting cities. After which the project will be rolled out to all burger king restaurants across each hosting city. The third phase will see more public infrastructure rollouts like trains stations, markets and shopping malls. This will see all marketing activities and efforts to be focused on the June 2014 launch

6. Fundamental Strategy

Background
This is a proposed roll out for Telkom’s new WIFA proposed campaign that would run over one month concurrently with the 2014 FIFA World Cup.
Findings identify the weakness with regards to connectivity in the WIFI space. We recommend that we target the BRICS countries, given the strategic alignment with regards to our country, South Africa. Brazil being our first bull’s eye- given the upcoming 2014 FIFA World Cup, we will use this country as a pilot.
As noted in the executive summary, all ticket holders of the 2014 FIFA World Cup will get a free 10mb voucher which one could be redeemed from any Wi-Fi Access point, at which point they can choose to become a subscriber to the ongoing paid service.
We will focus on only Phase 1, which is a general awareness campaign through above the line partnerships, Internet channels and Social Media. The campaign will take place in June 2014.
The Campaign’s proposed name is WIFA; in line with the WIFI Solution and the FIFA World Cup.
Communication objectives * To support the building of the Telkom brand by creating greater awareness and understanding of the WIFA product offering as the first phase in Brazil. * Driving a large-scale shift in mindset from using local to embracing the South African brand. * Continue building partnerships and co-operation with International players.
Target Market
Citizens of Brazil
Our first target would be the football fans; everyone who purchases a ticket obtains free WIFA. These people form the consumer market of our campaign.
Business leaders
Offering businesses the opportunity to use WIFA would be the second phase in our plan, which we do not discuss in this first phase. Much of business remains inwardly focused and unwilling to take on a greater role to incorporate change due to fear of the unknown.
Media Target market
We define a media target market in terms of demographics, the markets that we have identified are;
Consumers
As it is almost everyone who loves soccer and supports the FIFA World Cup- we suggest a target market of LSM 1-10, National in Brazil, Age 16-50(+). Universe – 12 854 000 people
Business Leaders
Assumed demographic – LSM 9-10, working in the private sector, age 35+. Universe – 1,199 000 people
Partnership Opportunities
Awareness around the Telkom brand will be cemented by partnerships developed with other popular brands, so that they promote WIFA on their website and other above-the-line material such as Television, Radio and Print.
In order to tap into the Brazilian telecommunications market, we have to introduce WIFA to the market in partnership with an established brand. So taking this into consideration, the following will need to take place. Trusted partners identified in Brazil are;
Partnership 1: Ideal
Ideal works with reputation management, creating and executing customized communication solutions for companies that consider communication a strategic element for their organizations. They deal with the best tools available in the market to offer premium services, according to their clients’ needs and expectations. Working for companies like Google, Nike, GE, Fiat, McDonald’s, PepsiCo, Nextel, Grupo Pão de Açúcar and Grupo EBX, among others, they reach local, regional and global audiences. Ideal has a team of more than 100 professionals, including very talented people, making them the agency with the higher growing rate in Brazil, according to the Deloitte/EXAME PME ranking.
We will utilise the Ideal agency website and above the line media to leverage the partnership by co-branding;

Partnership 2: Red Ant
Established in 1999 and with an in-house team of full-time digital experts, Red Ant is a digital strategy agency with offices in the UK, Republic of Ireland, China and Brazil, delivering return on investment solutions to meet business objectives and campaign aims. Using a four-stage approach – planning, creating, actualising and evaluating – Red Ant develops digital and social strategies which enable clients to listen to customers, talk to potential clients, engage with relevant audiences and increase revenue opportunities at every stage.
We will utilise the Red Ant website and above the line media to leverage the partnership by co-branding;

Partnership 3: Riot
They are the first and largest social media-focused agency in Latin America, with up to 150 allocated employees and clients across 6 countries. Reinventing itself in tandem with the rapidly evolving digital scenario, Riot helps both global brands and local businesses build and strengthen relationships, as well as drive leads and sales, by delivering world-class social media management service & Facebook Platform development unparalleled in the Latin American market.
We will utilise the Riot website and above the line media to leverage the partnership by co-branding;

Phase 1 - Roll Out
Awareness and Education Campaign through above the line media and Internet channels which will be discussed in further detail below in tactics.
Timing
June 2014 to July 2014
Objective
Creating greater awareness and understanding of Telkom and its product offering as a recent Consumer and Trade research survey highlighted that - * 39% of adults felt that they needed a reliable source of WIFI * 41% disagreed * 20% did not know
From a consumer perspective, it is the 20% that do not know that Telkom needs to reach.
Strategic Approach
Media Channels
There will be a host of 10 Television advertisements which will feature WIFA in partnership with Brazilian channels for the duration of the 30 days. Radio and print will take the same format.
From an above the line perspective, we will look at;
Television- through strategic alignment with Ideal, Rent Ant and Riot
Radio- through strategic alignment with Ideal, Rent Ant and Riot
Print- through strategic alignment with Ideal, Rent Ant and Riot
Online- through strategic alignment with Ideal, Rent Ant and Riot
Note: The reasoning behind this is that we cannot pierce the market as a foreign entity in the telecommunication industry as this industry is currently flooded with too many players. We want to be known as a trusted entity and aligning partnerships with existing trusted players with give us the desired trust.
Media penetration
Television

Radio

Note: We will only penetrate the most popular channels in Brazil through our partnerships.

Online strategy executions
The online statistics point to Brazil’s growing potential as one of the world’s most influential countries in the online sphere. The tactics executed throughout the 2014 FIFA World Cup will align with the following internet advertising mediumsThe following consideration included in our marketing analysis of the Nestle.•Produc•Place•, Promotio•Padvertising online will include; * Content Advertising
The first type of advertising technique is content advertising. It basically uses content to draw visitors’ attention. Content advertising is a pull, rather than a push, strategy. Content advertising does not interrupt, it attracts the user. * Link Advertising
This is a technique that uses a short link with some description to attract the visitors and directs them to the Telkom website, with more information on the product. * Incentivized advertising
This is where the traffic is rewarded to visit your website. When we were kids, the promise of a gold star or a sticker was all the incentive we needed to do our very best on a spelling test. As we grew, the incentives did too, a higher allowance for keeping your room clean, then a higher salary for doing a good job at work. So it’s no wonder that consumers are willing to give a little more of themselves to a brand, as long as there’s a prize at the end.
Experts found that 91% of people pay attention to the brand message when they interact with an ad. 48% said that they may have initially gone in just to get the reward, but ended up staying for the messaging anyway. They also found that more people came away with a positive feeling about a brand after participating in an interactive activity. This positive feeling carried over into purchase intent with one product seeing a 56% lift as compared to the control group. * Obtrusive advertising
This is where traffic is forced to view your ad. Typical examples include popup and pop-under advertising.
A pop-up ad is an ad that "pops up" in its own window when you go to a page. It obscures the Web page that you are trying to read, so you have to close the window or move it out of the way. Pop-under ads are similar, but place themselves under the content you are trying to read and are therefore less intrusive.

The Creative Execution
Pantone colour

The logo
WIFA

Banners and pop ups will follow the below proposed theme;

Viral advertising
This is word of mouth advertising in the online world. It encourages your existing traffic to invite more traffic to your website. It’s the holy grail of digital marketing, the viral ad, a pitch that large numbers of viewers decide to share with family and friends.
Social media in Brazil
Facebook helps to improve every business. Recorded today there are currently 60 747 200 Facebook users in the Brazil alone, which makes it number in the ranking of other countries in the world. We have created a Facebook fan page where they can talk about their WIFA experience during the World Cup;
Facebook fan page created;

Users in Age
The largest age group is currently 18 - 24 with total of 19 439 104 users, followed by the users in the age of 25 - 34. We will use social media as a means to populate WIFA across all our partners’ viral campaigns as well; so that we are associated with trusted brands.

Users in gender
There are 46% male users and 54% female users in Brazil

Brazil is amongst the top three countries that use Twitter, we will leverage off partners twitter pages;

The graph below shows that these users have a relatively high rate of online consumption and involvement.

Bonin Bough, keynote speaker from PepsiCo said that Brazil has the world’s second-largest Twitter community and these social networking statistics will only grow as broadband becomes more widely available.
These social networking statistics point to Brazil’s growing potential as one of the world’s most influential countries in the online sphere. This demonstrates and supports the online strategy.
Control and Review
The below indicates a clear projected plan for the marketing campaign for WIFA;

The Marketing Execution
Findings identify the weakness with regards to connectivity in the WIFI space. We recommend that we target the BRICS countries, given the strategic alignment with regards to our country. Brazil being our first bull’s eye- given the upcoming 2014 FIFA World Cup, we will use this country as a pilot. As noted in the executive summary, all ticket holders of the 2014 FIFA World Cup will get a free 10mb voucher which one could be redeemed from any Wi-Fi Access point, at which point they can choose to become a subscriber to the ongoing paid service.
The Campaign’s proposed name is WIFA; in line with the WIFI Solution and the FIFA World Cup.
WIFA

The tactics executed throughout the 2014 FIFA World Cup will align with the following internet advertising mediumsThe following consideration included in our marketing analysis of the Nestle.•Produc•Place•, Promotio•Padvertising online will include;

Content Advertising
The first type of advertising technique is content advertising. It basically uses content to draw visitors’ attention. Content advertising is a pull, rather than a push, strategy. Content advertising does not interrupt, it attracts the user.

Link Advertising
This is a technique that uses a short link with some description to attract the visitors and directs them to the Telkom website, with more information on the product.

Incentivized advertising
This is where the traffic is rewarded to visit your website. When we were kids, the promise of a gold star or a sticker was all the incentive we needed to do our very best on a spelling test. As we grew, the incentives did too, a higher allowance for keeping your room clean, then a higher salary for doing a good job at work. So it’s no wonder that consumers are willing to give a little more of themselves to a brand, as long as there’s a prize at the end.
Experts found that 91% of people pay attention to the brand message when they interact with an ad. 48% said that they may have initially gone in just to get the reward, but ended up staying for the messaging anyway. They also found that more people came away with a positive feeling about a brand after participating in an interactive activity. This positive feeling carried over into purchase intent with one product seeing a 56% lift as compared to the control group.

Obtrusive advertising
This is where traffic is forced to view your ad. Typical examples include popup and pop-under advertising.
A pop-up ad is an ad that "pops up" in its own window when you go to a page. It obscures the Web page that you are trying to read, so you have to close the window or move it out of the way. Pop-under ads are similar, but place themselves under the content you are trying to read and are therefore less intrusive.
Banners and pop ups will follow the below proposed theme;

Viral advertising
This is word of mouth advertising in the online world. It encourages your existing traffic to invite more traffic to your website. It’s the holy grail of digital marketing, the viral ad, a pitch that large numbers of viewers decide to share with family and friends.

Social media in Brazil
Facebook
Facebook helps to improve every business. Recorded today there are currently 60 747 200 Facebook users in the Brazil alone, which makes it number in the ranking of other countries in the world.
Users in Age- The largest age group is currently 18 - 24 with total of 19 439 104 users, followed by the users in the age of 25 - 34. We will use social media as a means to populate WIFA across all our partners viral campaigns; so that we are associated with trusted brands.

Users in gender- There are 46% male users and 54% female users in Brazil

Twitter
Brazil is amongst the top three countries that use Twitter;

The average age of a Brazilian Internet user is 28.9 years, and these young adults are composed primarily of Knowledge Seekers (26%), Networkers (16%) and Communicators (15%). Statistics show that Networkers and Communicators will be interested in social networking to create and maintain relationships, while Knowledge Seekers will be keen to connect with like-minded people and share ideas. The graph below shows that these users have a relatively high rate of online consumption and involvement.

Bonin Bough, keynote speaker from New York-based Corporation PepsiCo, said at a conference in Sao Paolo that in Brazil and Latin America as a whole, shows great vibrancy and a large online population of content creators. Brazil has the world’s second-largest Twitter community and these social networking statistics will only grow as broadband becomes more widely available.
These social networking statistics point to Brazil’s growing potential as one of the world’s most influential countries in the online sphere.
Partnership Opportunities
Awareness around the Telkom brand will be cemented by partnerships developed with other popular brands, so that they promote WIFA on their website and other above-the-line material.
In order to tap into the Brazilian telecommunications market, we have to introduce WIFA to the market. So taking this into consideration, the following will need to take place;
Trusted partners in Brazil are;

7. Marketing Tactics
Introduction:
Now that Segmentation is established and our niche market selected, the primary goal is to introduce Telkom‘s WIFI Product which has good Marketing potential and to be anchored in the South America content. According to BRICKS, Brazil is a continent which mobile network is overloaded and threatens to choke the economy leaving no use for land lines and an extensive competitive market for mobiles. This is good news for Telkom and the opportunity to be innovative and extend our product range to Brazil. With the FIFA World Cup approaching new developments and Foreign Investments will be pouring into Brazil. Telkom has tailor made a Product that will not only encourage but add lots of connivance to commuters of Brazil.

Prodcut
Free connect (Sem ligação) is the leading Wi-Fi hotspot provider with the most extensive Wi-Fi hotspot network in South Africa and more International roaming agreements than all over Southern African Wi-Fi hotspot providers combined. By introducing the admiring Wi-Fi this will be available all over Brasília targeting many (Sem ligação) venues in South America.
Official Accommodations in Brazilia which will have connectivity to Free connect: * COPA SUL HOTEL – Located one block from Rio’s famous beach * HOTEL FAZENDA MATO GROSSO * HOTEL EXPRESS EXECUTIVE * FRANCHISE: SUBWAYS, PITA PITA , MCDONALDS

Free connect (Sem ligação) specializes in WI-Fi technologies and related billing solutions. The Idea of our Wi-Fi hotspot solution is to stimulate the surrounding business and by doing this there will be a attraction of visitors to venues, enabling the business to attracting more consumers and create new revenue streams by offering Wi-Fi hotspot facilities to consumers at no additional cost .
By keeping up with International standard, laptops mobile devices such as cellular phones and iPods have built in Wi-Fi adapters where customers expect venues such as hotels , conference centers , Airports , guest houses and coffee shops to offer Wi-Fi hotspot services .Internet access , Business or home networks will be enabled for all important on-line tasks supported by these venues . It’s therefore essential to offer such reliable service to be offered at these hotspots.
Popular tailor made solututions for Venue owners include: * Free-to-owner – A Popular solution available for all venue types. Free connect (Sem ligação) ,manages , maintains Wi-Fi hotspots at your venue for no monthly set up costs other than your Telkom line rental portion of ADSL. We supply everything else, including unlimited ISP bandwidth for the Wi-Fi hotspot service. As a minimum you therefore get a "subsidized" ADSL service at your venue.

* Free-to-guest – available in hotel environments. . Free connect (Sem ligação) manages, maintains a Wi-Fi hotspot at your venue for a nominal fee that is added to the guests' daily room rate. We supply the complete solution, including unlimited ISP bandwidth for the Wi-Fi hotspot service.

* Limited-free-access - available in coffee shop, restaurant and small guest house environments. Free connect (Sem ligação) manages, maintains a Wi-Fi hotspot at your venue for a fixed monthly fee. We supply the complete solution, including unlimited ISP bandwidth for the Wi-Fi hotspot service.

A username and password would be required if Customers want to connect. A free online registration link is made available on the venue's landing page (login page) which enable customers to register for their free username and password that will provide them with a certain amount of free time or data per day. All other commercial packages are still available to customers who require access beyond the complimentary access. This also ensures that access acquired via a guest's service provider or at another venue is still valid at "free-to-guest" venues.
Benefits of Free connect (Sem ligação) for the Venue Owners: * Our market research has shown that the availability of Wi-Fi hotspots influences more and more the type of hotel, coffee shop, conference suite, restaurant customer’s visit. Therefore the Wi-Fi hotspots are no longer a nice to have but an essential service which could enable your customers to be loyal or flock to your competition. * Free connect (Sem ligação) Wi-Fi hotspot solutions ensures that your customers have a positive experience when making use of our services at your venue, since we utilize high quality hardware, specialist installation teams, business class internet bandwidth, together with our superior software solution and support teams. * Free connect (Sem ligação) Solutions have passed Intel's Centrino® certification testing program, which ensures compliance to international standards. * Provide Wi-Fi hotspot facilities to your customers at little or no cost to yourself with free maintenance and 24 hour support. * Custom branding enables you to offer the service under your own brand that fits in with your venue's look and feel. * Flexible billing that enable you to offer your customers different payment options (i.e. credit card, voucher or cell phone).

Benefits for the Customers: * High speed, reliable and secure Internet access * Wired or wireless connections * Offer your customers the ability to use their Internet time at other Free connect (Sem ligação) Internet facilities, i.e. roaming * Offer different billing options i.e. contract, prepaid, credit card * No special computer configuration requirements * Free 24 x 7 telephone support * No 3G cards or expensive routers and networking equipment needed * Real-time usage reporting

Price
Prices Tailors for all types of connections, corporate and personal opportunities.
Wi-Fi hotspot corporate access enables a corporate to create a virtual organization, granting their user base remote access to their existing network infrastructure via existing Wi-Fi hotspot venues, without the need to invest in and deploy additional infrastructure. From as low as R300 per month, corporate customers receive a bundle of 1000 Wi-Fi hotspot minutes, to access at any Free connect (Sem ligação) Wi-Fi hotspot. These data minutes can be assigned and distributed to any number of users within the organization, or even guests of the company. Once a corporate user has been set up and issued with a username and password they will then be able to login to any Free connect (Sem ligação) Wi-Fi hotspot. Distribution
The use of a disintermediation channel of distribution is they forward which would cut out all intermediates. The highly informative website helps the consumers too directly to channel online. The informative website also allows consumers to view hot spot venues search .This makes it very convenient and assures that you’ll be connected at all times. The search option has a list of venues which you can select, locations and the WIFI option you contracted to.
Another clever initiative is the Hot Spot Suggestion, where you can suggest a location our service provider will approach the suggested venue and if an agreement is reached, you’ll receive a month’s free WIFI Hot Spot access.

Promotions
The FIFA world cup will be the driving force for our intended sale promotions. By encouraging the Hot Spot venues to enable WIFI will bring about business for the Hotels, restaurants. Loyal Marketing programmes will be the key for attracting potential consumers. No fancy Promotions needed, venues will provide meal deals, live matches to be watched and of course free WIFI will attract consumers to these Hot Spots. Post world Cup consumers will still be buzzing about, corporate catching up with important e-mails, business deals and meeting.

Service Mix
People
Telkom’s online data base allows consumers to log any complaints, suggestions and contact the help desk (All Hours). The call centre encourages consumers to raise any concerns and also educates the users of quicker and updated software related matters. The online help option has a list of important instructions for consumers with needs. An online rating card is very important as part of our service and consumers are encouraged when online to complete. This is used as evidence to ensure that our standards and services are matained.

Physical Evidence
By carefully selecting our partners, this will prove as physical evidence that our service is regarded of the highest standard. The WIFI connection is of course available everywhere but in order to enjoy the benefits and comfort ability we try to closely relate our product with partners, targeting the similar target audience.

Process
Our service is regarded as informative processing. Our service cannot be physically touched for our service is related more online related and call centre based. The advantage is that it’s All Hours available and very user friendly online.

8. Key Success Factors

Telkom recognises that for sound business operations to take place in different countries the corporation has to arm itself with understanding and acceptance of the local culture in Brazil. Convergence is their strength and with a new leadership team in place they are going on the offensive and they have the tools to do that, notably technology and staff. The current global trend in the telecommunication industry indicates that there is an increasing demand in data traffic, where voice was the previous leading traffic. This is due to the rapid expansion of data networks on the Internet. This results in an increasing demand for the integration of voice, data and video on the same network. As the telecommunication market is being liberalised, it is expected that many competitors (both nationally and internationally) will compete with Telkom in the international market. If it has no proper technology-based business strategy, Telkom will not be able to survive and grow in the new competitive environment, as many of its current technologies may soon become obsolete. For these reasons, the necessity of developing a technology-based business strategy for the organisation is crucial. Currently, many Telkom technologies are used in the international network. These are X.25, frame relay, Asynchronous transmission mode, diginet, synchronous data hierarchy, wavelength division multiplexing, Internet protocol, asynchronous digital subscriber line, single carrier per channel, time division multiple access, demand assigned multiple access, intermediate data rate and frequency division multiple access. Telkom over the past ten years has invested heavily in upgrading its technology and improving the quality of its service in a move to strengthen its business in South Africa and especially overseas and has international roaming agreements with 147 countries. A Telkom survey found that smartphone connections to Wi-Fi hotspots will soon overtake laptops globally. Laptops now represent less than half (48%) of the connections to hotspots, smartphones account for 36 percent and tablets 10 percent.
Advantages of Telkom Wi-Fi are as follows:

* Allows LANs to be deployed without cabling, potentially reducing the costs of network deployment and expansion. Spaces where cables cannot be run, such as outdoor areas and historical buildings, can host wireless LANs. * Wi-Fi products are widely available in the market. Different brands of access points and client network interfaces are interoperable at a basic level of service. * Wi-Fi networks support roaming, in which a mobile client station such as a laptop computer can move from one access point to another as the user moves around a building or area. * Wi-Fi is a global set of standards. Unlike cellular carriers, the same Wi-Fi client works in different countries around the world.

Further Telkom studies have revealed that Wi-Fi HotSpot or PWLAN has been so popular in the globe particularly among the travelers and the business community over the last couple of years. In fact Wi-Fi is becoming a necessity due to the convenience and the mobility it provides. Questionnaire responses from the sample Wi-Fi users in Brazil were investigated on different perspectives of technological, social/environmental, and economical levels. The conceptual model was developed based on the findings of the literature survey, to identify the CSFs of Wi-Fi HotSpot deployments in all the major cities in Brazil. Finally Telkom identified four main business models in Wi-Fi deployments in Brazil and two models were recommended one for public and one for private Wi-Fi HotSpots. Telkom believes it has the key ingredients to successfully enter the mobility space. The barriers to entry are constantly being lowered for new players - both national and international - in the telecommunications market. This situation results in the number at the dining table increasing a lot, quicker than the size of the pie on offer

9. Implementation

The 2014 FIFA Soccer World Cup has created a great opportunity for Telkom to roll out the WIFI connectivity access in Brazil. With the massive demand for Internet services the overflow of business investments will surely grow. By partnering up with the local hospitality industries creates a pathway for struggling business. The objectives of implementing this type of service in South America is for Telkom to footprint its extended products and service to big events such as the FIFA world Cup and International recognition.
The list of Advertising Mediums, in the Market Strategy by partnering with the FIFA World cup will to achieve to get the message out. Telkom plans to launch this WIFI and create sustainable product.
.Advertising Mediums: * Content Advertising * Link Advertising * Incentivized advertising * Obtrusive advertising * Viral advertising

Social Media:

* Twitter * Face Book

Venues:
By partnering with the local restaurants to make our WIFI available enables to promote the initiative.
This will be how we plan to implement Telkom’s WIFI Launch in South America (BRAZIL)

10. Budget Telkom Global and Internet Marketing Plan Budget | Category | Estimated Quantity | Estimated Cost Per Unit | Estimated Subtotal | Research | | | | Research firm fees | 2 | R 500 000.00 | R 1 000 000.00 | Web research | 1 | R 200 000.00 | R 200 000.00 | Independent research | 1 | R 250 000.00 | R 250 000.00 | Other research | 1 | R 100 000.00 | R 100 000.00 | Reasearch costs total | | | R 1 550 000.00 | Communications | | | | Web | | | | Content Advertising | 30 | R 10 000.00 | R 300 000.00 | Link advertising | 30 | R 12 000.00 | R 360 000.00 | Incentivized advertising | 30 | R 30 000.00 | R 900 000.00 | Obtrusive advertising | 30 | R 12 000.00 | R 360 000.00 | Viral advertising | | | | Management | 30 | R 20 000.00 | R 600 000.00 | Above the Line Advertising | | | | Partnership 1: Ideal Fee | 1 | R 2 000 000.00 | R 2 000 000.00 | Television Budget Allocated | 1 | R 2 000 000.00 | R 2 000 000.00 | Radio Budget Allocated | 1 | R 1 000 000.00 | R 1 000 000.00 | Print Budget Allocated | 1 | R 1 000 000.00 | R 1 000 000.00 | Partnership 2: Red Ant fee | 1 | R 1 000 000.00 | R 1 000 000.00 | Television Budget Allocated | 1 | R 2 000 000.00 | R 2 000 000.00 | Radio Budget Allocated | 1 | R 1 000 000.00 | R 1 000 000.00 | Print Budget Allocated | 1 | R 1 000 000.00 | R 1 000 000.00 | Partnership 3: Riot fee | 1 | R 1 000 000.00 | R 1 000 000.00 | Television Budget Allocated | 1 | R 2 000 000.00 | R 2 000 000.00 | Radio Budget Allocated | 1 | R 1 000 000.00 | R 1 000 000.00 | Print Budget Allocated | 1 | R 1 000 000.00 | R 1 000 000.00 | Communications costs total | | | R 18 520 000.00 | Networking/ Partnerships | | | | Travel for allocated teams | 200000 | | R 200 000.00 | Meetings with various partners | 300000 | | R 300 000.00 | Networking/partnerships total | | | R 500 000.00 | Advertising Grand total | | | R 20 570 000.00 |

11. Control and Review

The key to good organising, planning and controlling in global marketing is to create a flexible structure or framework which enables organisations to respond to relevant differences in the markets in which they operate, but, at the same time, delineates relationships clearly between parts and personnel of the company. There are no prescriptive solutions to the questions of what is the most appropriate organisational structure, planning framework and form of telecommunications control. One thing is clear though -organisations can only work effectively if structure is defined, standards of performance are designed and communicated, and the control framework is fair, clear to all and agreeable. This is not to say that once the structure is defined, it cannot be changed. In fact, modern marketing thought is that formal structure is just not the order of the day. Many informal structures develop within formal frameworks. Many organisations make the mistake of setting a structure first, long before they have decided on a strategy. This is a recipe for disaster as it forces organisations to fit the strategy to the structure, with all the inherent dangers of such rigidity.

12. Literature review

In today’s world, Telecommunication companies are operating in a very challenging business environment. The Telecommunication industry possesses large amounts of data, generated from a number of operational systems that is confronted with many business problems that need urgent handling. The main purpose of this paper is to present a solution to Telkom’s Global identity and help them position themselves to penetrate the market, from a business perspective.

As a group we have identified the following sources to gather information to create a Global Internet Strategy plan for Telkom. The information will be extrapolated via interviews and in-depth research and analysis:
The following information resources were identified: 1. Telkom Website 2. Government gazette 3. Earmarked specific Telkom employees 4. Third Party Websites like: Money web, ITWeb and Telecoms Daily. 5. Telkom Suppliers 6. Existing and perspective Telkom Clients 7. Client Facing Telkom store 8. Research from further Marketing Management material such as, Philip Kotler and Kevin Lane Keller books
This gave us much insight as Telkom is a brand that stands out due to their unique offering, being a trusted brand in South Africa. This has given us a good platform to establish Telkom in the international/global market.

13. References

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* Cape Peninsula University of Technology. n.d. blackboard. * http://myclassroom.cput.ac.za/webapps/portal/frameset.jsp. * [25 August 2012]. * Chase, J. 1979. Advertising in the modern world. New York: Simon & Schuster. * Chiaravalle, B. & Schenck, B.F., 2007, Branding for Dummies, Wiley, Hoboken, N.J. * Ellis, R. & Peters, J.P. 2000. Writing about literature. London: Macmillan. * Mohr, P. & Fourie, L., 2008, Economics for South African students, Van Schaik, Hatfield, Pretoria. * Hartline, F., 2011, Marketing Management Strategies, Cengage Learning, Canada. * Social Bakers. Brazil Facebook Statistics. http://www.socialbakers.com/facebook-statistics/brazil [1 October 2012]