The project assigned by PT Simpatindo Multi Media ( PT SMM ) was to develop strategies to improve the business of distributing telecommunication products .



(Telkomsel) by expanding and exploring new channels within PT SMM coverage. Telecommunication business is growing very fast by 25%-30% annually. The subscribers will be projected to reach 70 millions in the end of 2007 and bring the penetration ratio to 32%. Currently. there are 5 GMS telecommunication operators and 5 COMA operators which are Telkomsel, Indosat, XL, Hutchisson, Telkom Flexy, StarOne, Esia, Mobile 8 and Smart Telecom.



PT SMM is one of Telkomsel distributors to distribute telecommunication vouchers both physical and electrical. The business contribution for both products is 20% and 80%, respectively. PT SMM is currently having 195 retail outlets in Jakarta, Surabaya and Bali which contribute 25% of the business. The rest of the business was contributed by traditional dealers (65%) and modem channel (35%).

After comprehensively observing the PT SMM business operation, we were focusing on the 2 business issues:

1. Short term:

a. Limited Channel Coverage

b. Lack of new channel development 2. Mid-Long term:

a. Technology changes which affect directly to the business b. Customer's expectation's changes

Our Team developed a comprehensive proposal especially to address the 'short term' issues which according to our team is critical and needs immediate actions to overcome. After this short term issues are solved, we believe they will be able and ready to anticipate the Mid-long term issues.



Our proposal concentrates on improving the current performance of the distribution team to be more effective in expanding the coverage. Our group is also proposing a new emerging channel development to be included in their coverage.

In summary, our recommendation is based upon deep study of territory management concept as well as analyzing, selecting and making decision on new channel development. And we truly believe that with our proposal PT Simpatindo Multi Media will be able to improve their business and at once they will be able to strengthen the position as Telkomsel's distributor and having competencies to anticipate 'potential' problems in the future.



Research Location : PT Simpatindo Multi Media