ALWAYSLOCA L Eric Lee Eric Lemay Léa Leduc Berryman Sharon Luk Sarah MacKay.

ALWAYSLOCAL

Eric Lee

Eric Lemay

Léa Leduc Berryman

Sharon Luk

Sarah MacKay

AGENDA

The product Marketing Profile Marketing Mix Financial Analysis Foreign Entry Implementation

THE PRODUCT: ALWAYSLOCAL

New Add on for Rogers Wireless plans New SIM card technology

Two Canadian phone numbers on one SIM Card

Double the minutes on customer’s existing plan Local and long distance minutes

SWOT ANALYSIS

MARKET PROFILE Market Profile

Canadian wireless telecommunications services valued at $15 billion dollars

21.5 million subscribers Average of 400 minutes of monthly talk Growth in demand/value:

Mobile subscription has risen 10.8% annually between 2003 and 2008 6% of Canadian households own only cell phones (20%

increase in 2 years) 75% of Canadian households have a mobile subscription

Saturation point has not been reached

Euromonitor. (2009 January 20). Consumer Lifestyles. Retrieved October 25, 2009, from Global Market Information.

MARKET PROFILE

Market Share ComparisonRogers Communications : 37%BCE inc. : 30.3%Telus Corporation : 28.6%

Fixed-line telephony (traditional landlines)Voice over Internet Protocol (VoIP)

•E.g. Skype

Datamonitor. (2009 July). Wireless Telecommunications services in Canada – Industry. Retrieved October 22, 2009.

CONSUMER PROFILE Target market

People who make a lot of long distance calls

1. University students

• 73% of cell phone owners are in 18-34 age group• High spenders:

• Cell phone bill between $41 to $50 monthly• To compare, an average bill is under $36 monthly• Spend 81% of their disposable income on communications

• Supported by baby boomers (parents)• 57.5% do not pay for their own cell phone bills

PMB Online. (2009a Spring). Business Travel. Retrieved October 30, 2009, from Print Measurement Bureau. PMB Online. (2009c Fall), Occupation. Retrieved October 30, 2009, from Print Measurement Bureau.

CONSUMER PROFILE

2. Commuting business professionals

7.4% of cell phone users 20% of Canadians between 20-64 travel on business 5% travel over 5 times a year

High spenders: 43% spend between $36 to $50 per month on cell phones

CONSUMER PROFILE

Amount of Canadians in University

Amount of out of province students

Total Canadian out of province students

978,480(Statistics Canada 2009b)

12% 117,417.60

Number of Canadians Business travel over 5 times a year

Total frequent business travelers

33,843,873 (Statistics Canada 2009a)

5%(PMB Online 2009c)

1,692,193.65

Students and Commuters

Rogers Market Share

Canadians who have cell phones

Total target market

1,809,611.25 37%(PMB Online 2009b)

61.30%(PMB Online 2009b)

410,438

MARKETING MIX: PRICE

$45 monthly service fee with Canadian

Long distance Saver 125

$45 monthly service fee with AlwaysLocal

Cost of the add-on $15 $5

Short distance minutes 400 0-800

Long distance minutes 125 0-800

Monthly bill $60 $50

Cost per long distance minute

$0.12 $0.02

Cost per additional long distance minute

$0.35 $0.35

MARKETING MIX: PRODUCT

High switching costs

Low switching costs

Expensive

Cheap

Frequent traveler

Infrequent traveler

Long distance use

Short distance use

AlwaysLocal

Nationwide 30 (Telus)

200 Canadian Long distance (Bell)

My5 Local calls (Rogers)

Product Positioning map

DISTRIBUTION

Sell directly to customers Online

Purchase as an “Add-on” to existing plans Pick up SIM card in Rogers retail stores

In-stores Product offered in all Rogers stores (35 000)

PROMOTION

Advertising accounts for 11% of revenue

Promotional goals

Educate about the new concept

Promote the feature to Rogers/non-Rogers customers

Retain existing AlwaysLocal users

Remind target audience of corporate reputation

PROMOTION – COMMUNICATION FRAMEWORK

Framework consisting of communication guiding principles to consistently and effectively convey key messages to potential and existing AlwaysLocal customers through the various promotional initiatives.

Principle Description

Provides new information (Introduction Phase)

The launch of a new product or concept especially requires a concise and simple description to inform the customer of its benefits; a more thorough explanation should always be readily available (in-store and online)

Promotes the benefits in a persuasive manner

The various advertisements and promotions need to emphasize the benefits and tailored in a way to get the best response from the target audiences (i.e. students, business travelers, etc.)

Explains the difference between AlwaysLocal and similar long distance plans

Rogers is required to stress that this new feature allows a customer to call to/from two specific destinations and not everywhere in the world, but for a lower price; this differentiates this feature to long-distance plans.

Emphasizes the minimal efforts for the customer

It is essential to highlight no switching costs and the simple feature-adding process to create a favorable perspective of this new concept.

PROMOTION – MEDIA CHANNELS

AlwaysLocal – Decision factors Specific/small target market Relatively low potential profit margins

• Essential to keep advertising costs low to maintain profitability

TELEVISION Emphasize corporate reputation

• I.e. Best signal, GSM network, largest Canadian network

Introduce new phones/plans

Conclusion Too expensive to advertise AlwaysLocal using television advertisements Not suitable to solely advertise a feature with low profit margins


RADIO Hard to introduce a new technology and concept over a short period of time Not a conventional corporate media channel No visual element to effectively explain the function of the SIM card Does not constitute an effective media channel to target a specific audience

AlwaysLocal target market is specific

Conclusion Radio is not yet an effective promotional media channel for AlwaysLocal

• Potentially rewarding once AlwaysLocal concept is mainstream


NEWSPAPER/MAGAZINE One-time exposure; lack of sustainable exposure Not a conventional corporate media channel Does not constitute an effective media channel to target a specific audience

AlwaysLocal target market is specific

Conclusion Newspapers and Magazines do not offer Rogers a sustainable advertising

option for AlwaysLocal

PROMOTION – DIRECT MARKETING

IN-STORE Promote AlwaysLocal feature through informative signage Inform the customers through face-to-face explanations and pamphlets Drive sales of the feature to new and existing Rogers customers

Identify customer behaviors to offer feature to individuals with high long-distance charges

INTERNET Promote the feature on the Rogers website Option to add the AlwaysLocal feature upon subscribing to all phone plans E-mail to all Rogers customers to promote new feature Tailored communiqué will be sent to all Rogers customers with high long

distance charges to promote AlwaysLocal AlwaysLocal will be advertised on Facebook

Essential to attract specific target markets

PROMOTION - OTHER INITIATIVES

SALES PROMOTION New/existing AlwaysLocal customers can get the feature for 3 months free

upon satisfying the sales promotion condition

Condition: Refer 10 individuals to add the feature on their phone plan Promotion will be advertised on the Rogers website, in-store and on

university/college campuses

PUBLIC RELATIONS : UNIVERSITIES AND COLLEGES Gain exposure at campus events

Especially at the beginning of semesters Expose feature in campus newspapers and communications

i.e. Articles on how to save money as a student

FINANCIAL ANALYSIS

Possible new technology costs Would include SIM card technology and cell phone

software $1 million $3 million $5 million

BREAK EVEN ANALYSIS ($1 M TECHNOLOGY)

92,241 Subscribers ($6,278,708 in Revenue)

1.20% of Rogers customers

22.47% of Targeted Rogers customers

0.445% of Canadians who own a cell phone

FINANCIAL ANALYSIS - $1M TECHNOLOGY COSTSRevenue

Price Per annual Unit $ 60.00

Number of total units sold 205219Net Sales $ 12,313,137.83

Expenses: Variable Costs

Price Per unit (SIM card) $ 15.00

Cost of Goods Sold $ 3,078,284.46 Contribution Margin $ 9,234,853.37

Expenses: Fixed Costs

Advertising Expenses $ 1,456,166.05

Cost of Technology $ 1,000,000.00

Total fixed costs $ 2,456,166.05

Profit Year 1 $ 5,322,521.27











Profit Year 1 $ 3,322,521.27











Profit Year 1 $ 1,322,521.27

FINANCIAL ANALYSIS: CONCLUSION

Technology is not very complicated Change SIM card formatting to roam simultaneously in

two networks Ample space for another phone number since SIM

cards hold address books, pictures and video Software already exist for dual SIM card phones Decide $3 Million is reasonable

All break downs are profitable in the first year if Rogers upgrades over 160,000 of its existing customers Only 2.1% of their existing customers

FOREIGN ENTRY POTENTIAL

Country: Germany Extensive transportation infrastructure Protection of intellectual property Currency

Entry Strategy: Licensing agreements with German firms for the new SIM card technology

IMPLEMENTATION

DEVELOPMENT/DISTRIBUTION Technology facet already completed

Quality control testing was completed successfully Rogers has secured distribution rights for AlwaysLocal SIM cards technology

IDENTIFICATION PROCESS Instill a process to identify customer behavior in customer accounts

Identify customers with high long-distance charges Automate process that will offer AlwaysLocal to customers enrolled in long-

distance plans (i.e. Long-distance Saver 125)

Goals Strengthen customer loyalty by helping Rogers customers save money Identify new behaviors to better direct R&D in developing new services for the

new SIM card technology

Timeframe: March - July

IMPLEMENTATION

PRODUCT LAUNCH Planned for next back-to-school

period Important spending period for

students; especially non-local students

Collaborate with universities to include the feature in campus publications and events

Online initiatives to advertise AlwaysLocal on the website and through e-mail

In-store informative signage and active selling to new and existing customers

IMPLEMENTATION

PRODUCT LAUNCH

Sales Promotion Advertise on campuses, online,

in-store, by mail (with monthly phone bill)

Create process to record referrals in respective accounts

Goals Create demand Gain quick brand exposure Attract non-Rogers customers

Timeframe: August to November (4 months)

ANY QUESTIONS?

BIBLIOGRAPHY Burns, Enid. (2006 August 25), Teen, College students are most active cell phone users. Retrieved November 1,

2009, from http://clickz.com/3530886.

Datamonitor. (2009 July). Wireless Telecommunications services in Canada – Industry. Retrieved October 22,

2009.

Euromonitor. (2009 January 20). Consumer Lifestyles. Retrieved October 25, 2009, from Global Market Information.

Heller, David (2009 January 29), Grad school applications increase. Retrieved October 26, 2009, from http://media.www.gwhatchet.com/media/storage/paper332/news/2009/01/29/News/Grad-School.Applications.Increase-3603379.shtml

K, Hercules. (2009 October 6), CDMA carrier Bell and Telus to launch iPhone in Canada. Retrieved October 25, 2009, from http://business2press.com/2009/10/06/cdma-bell-telus-to-launch-iphone-canada/

PMB Online. (2009a Spring). Business Travel. Retrieved October 30, 2009, from Print Measurement Bureau.

PMB Online. (2009b Fall), Cell phones, smartphones, Hhld Organizers. Retreived October 25, 2009, from Print Measurement Bureau.

PMB Online. (2009c Fall), Occupation. Retrieved October 30, 2009, from Print Measurement Bureau.

ALWAYSLOCA L Eric Lee Eric Lemay Léa Leduc Berryman Sharon Luk Sarah MacKay.

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Transcript of ALWAYSLOCA L Eric Lee Eric Lemay Léa Leduc Berryman Sharon Luk Sarah MacKay.