Phillip Kevin Lane Kotler • Keller...Kotler • Keller Phillip Kevin Lane Marketing Management • 14e
Kevin Martin Marketing Plan Project
-
Upload
kevin-martin -
Category
Documents
-
view
219 -
download
0
Transcript of Kevin Martin Marketing Plan Project
-
8/2/2019 Kevin Martin Marketing Plan Project
1/15
T-Mobile USA, Inc.Marketing Plan Proposal
Prepared for: Doug Clopton
Prepared by: Kevin Martin
December 6, 2011
-
8/2/2019 Kevin Martin Marketing Plan Project
2/15
Table of Contents
Introduction 1Analysis 2 Target Market 2 Marketing Environment 5 Current Strategy 7Recommendations 12
-
8/2/2019 Kevin Martin Marketing Plan Project
3/15
Introduction
T-Mobile Background
T-Mobile USA, Inc. is an American mobile-network operator that can trace its roots as faras 1994 to the company VoiceStream Wireless.
In 2002 VoiceStream Wireless was acquired by
Deutsche Telekom AG, the largest
telecommunications company in Europe, and
officially became T-Mobile USA.
Later that year the companys 7 million customers would be the first to take advantage of
the first BlackBerry device with e-mail capabilities and in 2003 would experience the first
video messaging services in the United States. Since then the company has opened
thousands of Wi-Fi HotSpots at airports, restaurants, and retailers, unveiled a number of
innovative mobile devices, as well as earned years worth of J.D. Power and Associates
Customer Service, Customer Satisfaction, and Retail Sales Satisfaction awards. T-Mobile
USA now serves nearly 34 million customers securing the aforementioned title of fourth-
largest wireless carrier in the United States.
This report will attempt to analyze T-Mobile USAs current marketing strategy. It will include
an evaluation of the companys strengths, weaknesses, opportunities, and threats as well
as an analysis of the current target market, marketing environment, and marketing mix.
Recommendations will be provided based on these analyses to contribute to the future
progress and growth of the company.
1
-
8/2/2019 Kevin Martin Marketing Plan Project
4/15
Analysis
Target Market
Target Customers
As a national provider of wireless services, T-Mobile USA, Inc. has a network capable of
reaching over 293 million customers. The customers targeted by the company include any
individuals that desire mobile connectivity in the form of voice or data services. The
company offers separate product lines to appeal to customers searching for both personal
connectivity solutions and business connectivity solutions.
Current Customers
T-Mobile USAs third quarter of 2011 results report that the company served 33.7 million
customers as of November 10. Of these customers, 25.6 million are customers using
services requiring a contract while 8.1 million are customers using prepaid services. These
customers can be further divided into mobile handset customers and mobile broadband
customers within the respected categories, however these figures are not available at this
time.
Marketing ResearchTo improve customer satisfaction the company gathers both primary and secondary
research. Primary research is conducted mainly through voluntary survey opportunities
provided at retail stores, over the phone, and on the companys website. Secondary
research is obtained from outside firms such as J.D. Power and Associates and The
American Customer Satisfaction Index. The latest results from these firms report that
2
-
8/2/2019 Kevin Martin Marketing Plan Project
5/15
T-Mobile customer satisfaction scored4 and 5 points, respectively, behind
the segment leader (Figure 1). Other
statistics such as demographics are
provided by the U.S. Census Bureau.
Market Segmentations
Aside from company-specific
segmentation of the customers, the
following factors also play a major role
in the marketing strategy:
Demographic - With the
average age for a first cell
phone now down to under 12
years old, wireless carriers have a larger and more diverse customer
base to appeal to. While contract services require customers to be 18 years of age
or older due to credit reasons, prepaid services can be purchased without age
restriction. According to the U.S. Census Bureaus 2010 statistics, this leaves a
potential customer base of just under 270 million consumers (those over the age of
ten).
Psychographic - The CIA World Factbook determined that in 2010 the United
States had 279 million cell phone subscribers. This number represents the amountof potential T-Mobile customers based solely on the consumers perception of the
necessity of the products and services that the company provides.
3
Figure 1
-
8/2/2019 Kevin Martin Marketing Plan Project
6/15
Figure 2
Geographic - As mentioned before, the T-Mobile wireless network is capable ofserving 293 million customers based on mobile coverage in all fifty of the United
States as well as parts of Mexico and Canada.
Behavioristic - Behavioristic factors can include how often a consumer believes
they would need to use the product or service and the loyalty of customers. T-
Mobile does offer multiple variations of its products and services but quantitative
figures are unavailable for the potential customer base in this respect. Customer
loyalty, however, can be seen in the number of branded customer losses present in
recent quarters. This indicates the decrease in the amount of customers that use a
product or service with the T-Mobile brand name specifically. Recent quarters show
a decrease in customer loss which can be seen in Figure 2.
B
T-Mobile
anded Net C
USA, Inc.
stomer Loss
s
Q3 2011 Q2 2011 Q1 2011 Full Year
2010
Q4 2010 Q3 2010
135,000 608,000 656,000 1,582,000 509,000 404,000
4
-
8/2/2019 Kevin Martin Marketing Plan Project
7/15
Marketing Environment
The marketing environment for any product or service contains uncontrollable factors that
can greatly affect a companys ability to satisfy the wants and needs of its customer base.
These factors have been examined based on T-Mobiles target market to determine the
following:
Socio-cultural - The major socio-cultural trend affecting the company is also a
technological trend, that of a sharp increase in the demand for touch screenphones and smartphones. Out of the 29 phones that T-Mobile currently offers, 19
of them are touch screen phones while 22 of them are smartphones. Another trend
that only one major wireless carrier has made a major attempt to target is the trend
of environmental sustainability. T-Mobile competitor Sprint carries the Samsung
Replenish smartphone made partially from recycled materials and wrapped in fully
recyclable packaging. Sprint also carries solar powered chargers and conventional
chargers that are Energy Star compliant, as well as deriving 80% of the electricity
for their headquarters from wind energy.
Technological - In the same manner of the socio-cultural trends, the increase in
demand for touch screen phones and smartphones has been a large factor in all
wireless carriers marketing strategies. One major downfall for T-Mobile, however,
which is also a competitive factor, is the absence of an Apple iPhone in its phone
lineup. This line of phones that was first released in 2007 now contains the number
1 and 2 bestselling smartphones, and T-Mobiles three larger competitors have it.
Other factors include an increase in mobile internet services as well as the ability to
purchase products and services online, both of which T-Mobile has handled
appropriately. T-Mobile offers the least expensive unlimited internet package for
handheld devices and in addition to the ease of use, its website frequently offers
special incentives for purchasing online.
5
-
8/2/2019 Kevin Martin Marketing Plan Project
8/15
Economic - In response the decline of the economy, T-Mobile has promoteddecreases in the cost of their products and services, as well as new offerings that
offer less but are more cost effective. Examples of these include the no contract
value plans, the $30 per month prepaid plan with 100 minutes and unlimited web
and text, as well as offering four different data plans for contracts starting at $10
versus the one $30 plan offered previously.
Political - Companies can target a consumers political and patriotic views to gain
favorable impressions. T-Mobile recently has not had any positive or negative
effects caused by political trends and has not attempted to alter their marketing mix
with regards to this trend to gain a larger customer base or increase revenue.
Regulatory - There have been numerous regulations that have affected wireless
carriers over the years. These can include regulations from 2003 allowing
customers to keep their cell phone number when they switch carriers, to more
recent distracted driving bans outlawing cell phone usage while on the road.
Another major regulatory factor is the amount of taxes and surcharges automatically
added to an accounts monthly bill, often equaling 15 to 20 percent of the net price.
Competitive - T-Mobile USA has three major competitors, AT&T, Verizon, and
Sprint. All four companies offer very similar products and services and equipment is
at times identical among the carriers, i.e. iPhone and Samsung Galaxy S phones.
The main factors that set these companies apart in the eye of the consumer
(excluding price which will be covered later on) are:
- coverage for both voice and data
- a selection of phones that are high quality and make use of advanced
technology
- good customer service
6
-
8/2/2019 Kevin Martin Marketing Plan Project
9/15
Figure 3
T-Mobile has achieved one of these three goals consistently over the years and thatis good customer service. As mentioned before the company has won many J.D.
Power and Associates Customer Service, Customer Satisfaction, and Retail Sales
Satisfaction awards. T-Mobile also currently has The other two leave factors do
leave the company lacking a bit more than their competitors, but T-Mobile is not far
behind. One major drawback is the companys coverage, while not sparse, still falls
behind the three larger companys as seen in Figure 3. All four companies sell very
similar phones and as mentioned before, T-Mobile carries 29 different models, 22 of
which are smartphones. They do not, however, carry the bestselling iPhone that
their competitors do carry.
7
-
8/2/2019 Kevin Martin Marketing Plan Project
10/15
Current Strategy
Product Mix
T-Mobile USA, Inc. provides wireless services and equipment. Services include mobile
voice and data connectivity as well as technical service and support for equipment.
Equipment includes mobile phones, tablet PCs, mobile broadband devices, and
associated accessories.
Both T-Mobiles service and equipment would be considered homogenous shoppingproducts. While shopping for wireless products, most consumers are simply looking for
the lowest price, unless they see a major advantage in something more expensive.
T-Mobile offers a multitude of wireless plans and features including prepaid plans, no-
contract value plans for both individuals and families, contract plans for both individual
families, as well as contract plans for both small and large (100+ employees) businesses.
T-Mobiles contract service plans, which brings in the majority of its revenue, have a major
advantage and disadvantage versus its competition. The advantage is that the companyis one of only two of the major carriers that offers unlimited data services. The
disadvantage is that they fail to offer unlimited mobile-to-mobile calling on any network
which has become increasingly popular among Sprint and AT&T.
T-Mobiles bestselling mobile phones use either the BlackBerry or Android operating
systems, two of the most popular operating systems
currently out. These products are designed by the
manufacturer of the phone, such as Samsung, HTC, and
RIM, specifically for T-Mobile services and then sold
directly to the authorized and third-party retailers.
In the mobile handset business a products life cycle is usually short lived and can easily be
seen. Even the bestselling iPhone has an easily visible life cycle as seen in Figure 4,
although it has had a considerably longer life than most handsets. For the year 2007 the
8
-
8/2/2019 Kevin Martin Marketing Plan Project
11/15
Figure 4
slow sales as a result of market introduction are visible, followed by market growth in2008, and eventually peak sales during market maturity in 2009. In 2010 iPhones sales
started to decline.
Price Mix
T-Mobiles prices are determined by a number of factors. Internally these include, but are
not limited to the cost of:
staffing
mobile devices, as well as exclusive contracts with companies to produce
company-specific phones
capital expenses, i.e. buildings, towers, and other equipment (including
maintenance) for day-to-day operations
logistics
advertising and promotion
9
-
8/2/2019 Kevin Martin Marketing Plan Project
12/15
Externally the prices can be determined primarily by the:
availability of the product or service
demand for the product or service
competitors products, services, and prices
When comparing many of the services that T-Mobile offers to their competitors similar
services, T-Mobile proves to be marginally less expensive. This can be seen in the
comparison in Figure 5.
Place Mix
T-Mobile provides its branded contract and no-contract products and services through
authorized specialty stores as well as through third-party retailers such as Best Buy and
Walmart. Prepaid products can be purchased at these stores as well as at convenience
stores and other retailers such as Walgreens and even Toys R Us and Family Dollar. T-
Mobile also provides services to mobile virtual network operators (MVNOs) which in turn
provide T-Mobiles service to the consumer without the T-Mobile brand name.
All physical products are purchased by the retailer directly from the manufacturer which
provides Freight On Board destination.
Promotional Mix
T-Mobile has had a strong presence in promotional media since its inception in 2002 when
Catherine Zeta-Jones became the spokesperson for the company. Back then the
companys slogan was Get More, today the official slogan is Stick Together. However,
with the increase in mobile internet usage among consumers, current advertising largely
emphasize that T-Mobile has Americas largest 4G network.
10
-
8/2/2019 Kevin Martin Marketing Plan Project
13/15
Figure 5
The companys promotional strategy relies largely on a push effort, but with someproducts, such as obtaining iPhone, a pull effort may be needed. The low prices as well
as data coverage have been a staple for their advertising in recent years, although
currently the company advertises many different types of plans in ambiguous ways that
have been confusing to customers. For example, large signs at retailers state $69.99,
unlimited talk, text, web, and 2 lines, yet in small print on these signs the price is
established as per line, doubling the believed price. They also advertise their classic and
value plans without acknowledging the numerous differences between the two.
Numerous times, though, the company has attempted to appeal to families by offering
sales on additional lines, including their 2010 Kids are free till 2012 promotion. T-Mobileretailers also do well to communicate these promotions in store for consumers to establish
connections between the two.
The company also uses a personal selling strategy to gain more retail outlets as well as to
sell services to small and large businesses.
11
-
8/2/2019 Kevin Martin Marketing Plan Project
14/15
Recommendations
Based on my evaluation of the current marketing strategy of T-Mobile USA, Inc., it is my
belief that the following can help the company progress and further the development of the
company.
While T-Mobile does offer many plans to fit the customers needs, I feel that the presence
of so many rate plans confuses consumers and can deter them when they realize the
actual facts behind some of the plans. The company should stick to contracted services
and prepaid services and weed out the plans and features that are scarcely taken
advantage of. They should continue to promote through the media their data coverage
and low prices, two of the main features consumers are looking for. Their sales
promotions on additional lines is also a great way to increase revenue and bringing
younger customers in provides the chance of a long-term relationship with that customer.
The company needs a flagship mobile handset that makes use of some of the most
advanced cellular technology available today. T-Mobile currently has the MyTouch as their
exclusive line of premium phones, but they have proved to be subpar and unpopular. A
profitable solution, I believe, would be to obtain the rights to sell iPhone. This could alsoincrease the companys reputation and bring other customers in.
Focusing on customer service both before and after the sale is extremely important. T-
Mobile has excelled at this previously and needs to continue to do so and not neglect its
current strengths.
12
-
8/2/2019 Kevin Martin Marketing Plan Project
15/15
References
(2011). Average age for first cell phone is now 11.6 years-old . The Online Mom, Retrieved from http://www.theonlinemom.com/secondary.asp?id=1981&t=average- age-for-first-cell-phone-is-now-116-years-oldThe American Customer Satisfaction Index, (2011). May 2011 and historical ACSI scores. Retrieved from website: http://www.theacsi.org/index.php? option=com_content&view=article&id=205:acsi-scores-may&catid=14&Itemid=261Central Intelligence Agency. (2010). Country comparison: Telephones - mobile cellular. The World FactbookSprint. (n.d.). Sprint sustainability. Retrieved from http://green.sprint.com/index.php
T-Mobile USA, Inc., (2011). T-Mobile USA reports third quarter of 2011 results. Retrieved from website: http://www.t-mobile.com/Company/pdf/English/ TMUS_Q3_2011_Press_Release.pdfU.S. Census Bureau, (2012). Statistical abstract of the united states. Retrieved from website: http://www.census.gov/compendia/statab/2012/tables/ 12s0007.pdf
13
http://www.census.gov/compendia/statab/2012/tables/http://www.census.gov/compendia/statab/2012/tables/http://www.census.gov/compendia/statab/2012/tables/http://www.t-mobile.com/Company/pdf/English/http://www.t-mobile.com/Company/pdf/English/http://www.theacsi.org/index.php?http://www.theonlinemom.com/secondary.asp?id=1981&t=average-http://www.theonlinemom.com/secondary.asp?id=1981&t=average-http://www.theonlinemom.com/secondary.asp?id=1981&t=average-http://www.census.gov/compendia/statab/2012/tables/http://www.census.gov/compendia/statab/2012/tables/http://www.t-mobile.com/Company/pdf/English/http://www.t-mobile.com/Company/pdf/English/http://green.sprint.com/index.phphttp://green.sprint.com/index.phphttp://www.theacsi.org/index.php?http://www.theacsi.org/index.php?http://www.theonlinemom.com/secondary.asp?id=1981&t=average-http://www.theonlinemom.com/secondary.asp?id=1981&t=average-http://www.theonlinemom.com/secondary.asp?id=1981&t=average-http://www.theonlinemom.com/secondary.asp?id=1981&t=average-