PT. Ericsson Indonesia has been given the first opportunity to launch R190, the dual mode handset that can be used as a satellite-phone as well as a GSM-phone. In order to "make it all happen", Ericsson has an agreement with PT. Pasifik Satelit Nusantara up until the end of year 2001. PT PSN has the responsibility to provide the Access satellite network through Garuda I satellite which is deployed over the Asia Pacific region.

Rl90 offers a solution for users who face a coverage problem. This product can be used anytime, anywhere, even in the middle of the ocean. The calling cost is very competitive with a fixed rate that is much cheaper than the ordinary satellite phone and users will get benefit if using Rl90 to make an international call compared to GSM. In addition, Rl90 has also other facilities such as Internet, facsimile and e-mail that will enable people to communicate better.

On the other hand, it is such a challenging task for PT. Ericsson Indonesia to market this product since the previous satellite-based phone system, Motorola Iridium, with similar concept of Rl90 had been failed to penetrate the market. Besides that, the bulky size and long/gun-like antenna of Rl90 has made people perceive this product as unfashionable compared to ordinary GSM phone although it is indeed much smaller than ordinary satellite phone.

The primary targets of R190 are institutional buyers that can be divided into 5 groups: agro-business industry, mining industry, multinational companies with high mobility employees, companies which need up to date information all the time and foreign companies in remote area. Meanwhile, the secondary target market is individual buyers

This Group Field Project is trying to give some recommendations to PT. Ericsson Indonesia considering this new innovative product launching strategy, especially the marketing mix (product, price, place and promotion) and also some feedbacks from the evaluation of post launch customer satisfaction and television advertisement effectiveness.



Research Location: PT Erindo Utama

Supervisor: Rhenald Kasali, PhD.

Accepted : 19 January 2001



Confidential Until 2003