This is the first of a two-case series. The case series explores Smart Telecommunication Inc's innovative approach to serving low-income customers in the Philippines. The case introduces a framework for developing strategies to serve low-income customers in developing countries - the 4A's. This framework is an adaptation of the classic 4P's of marketing that are likely to have been covered early in any marketing course. Case (A) provides an overview of the mobile phone market in the Philippines as of early 2003, as well as demographic and socioeconomic information. According to analysts, the mobile phone market in the country is heading towards saturation due to the fact that the majority of the population is unable to afford mobile services. It is estimated that in a best-case scenario, 35% of the population will be using a mobile phone by 2008. The CEO of Smart, Napoleon L Nazareno asks if it might be profitable to serve the massive but still untapped pool of low-income consumers, or whether his company should focus on pursuing market development opportunities to increase revenues from existing customers.

The (B) case demonstrates how Smart was able to implement a highly innovative marketing strategy to serve low-income customers. At the heart of this marketing approach was Smart Load, a mobile proposition involving sachet-based pricing (similar to that seen in the fast moving consumer goods (FMCG) world), a revolutionary over-the-air (OTA) mobile reloading technology, and a decentralized distribution approach. Through the implementation of this strategy analysts revised their estimates of market penetration from a maximum 35% of the population, to upwards of 70% by 2008.