FlatCall 01016 is one of Indosat services which provide an international direct dialing (IDD) access code in low price and fair quality. This code can be accessed by Indosat cellular phone and fixed wireless only. So that there is present a high connection in cellular subscriber and IDD users growth. Since launched in October 2005, this service has a bit responds from Indosat subscribers. Therefore the appropriate promotional strategy must be implemented in order to improve brand awareness of the service and add new subscriber in cellular or fixed wireless subscribers.

We conduct analysis of the service based on product life cycle, SWOT analysis, Boston Consulting Group (BCG) Matrix analysis, strategy based on market structure, and Porter's generic competitive strategy. Based on these we conclude that the service is still on the stage of introduction to growth. The star position of BCG matrix supports this analysis. Combine with analysis on market structure we conclude that aggressive advertising is a must to maintain market leader position even though there is any declining of average revenue per user (ARPU) caused by price war competition. Porter's generic strategy put this service position on the low cost strategy. In this term we conduct analysis of fixed and variable cost. We conclude to have cost leadership, company must maintain variable cost which is contains of interconnection cost and other variable costs.

To support our recommendation on promotional, we conduct survey based on Malang as prototype project to know the customer behavior of 100 users, customer demand, brand awareness, and customer loyalty in cellular services. Having these data, we propose promotional action plan from July to December 2007 as well as budget proposed.

We hope that this paper have a good contribution to the company, so that the company will gain benefit of it. Otherwise, we are welcome to all comments or input in purpose to enhance our learning process in IPMI business school.



Research Location : PT Indosat Tbk.