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Marketing Strategy for Sprint PCS

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Marketing Strategy for Sprint PCS

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    1. Marketing Strategy for Sprint PCS George Ruiz New York University Direct and Interactive Marketing Jfr229@nyu.edu http://georgeruiz.tripod.com

    2. Presentation Outline Current Situation Background SWOT Objectives Marketing Strategy Action Programs Projected P&L Controls Conclusion

    3. Current Situation: Sprint PCS First to build an all digital proprietary wireless CDMA network that is both scalable and reliable. Has a good market history of providing better quality products. Sprint users are three times the industry average at 21-25% Boasts one of the best ratings for providing wireless applications for consumers and enterprise alike Total parent company revenues near $23 billion

    4. Background: Telecom Industry

    5. Background: Telecom Industry U.S. mobile consumers will rise from 5 million to 65 million by 2004 and the market size in 2005 will be near 12 billion (Gartner). This might look like a large number, but other countries already boast over 60% of total population owning at least one mobile phone. The U.S. adoption curve is currently at 7-10% PDAs have a 70% lead in wireless penetration and will lead as the preferred enterprise wireless unit. Currently, only 2.3 of less than 1 million telecommuters access email through wireless devices out of the total population opportunity, which is 42 million.

    6. Background: Customer Adoption Process

    7. Most Important Issue facing the Product Line: Handset Quality It all comes down to this one simple fact: Customers do not care about the technology, they just want a reliable mobile phone that works well, has good reception, good battery life, and if it has other useful functionalities- Great!

    8. SWOT Analysis: Opportunities and Threats Opportunities Little differentiation across handsets, services and product offerings leads to a high rate of customer defections Bad competitive campaigns across the industry have confused the customer. There is little organizational preference between operators and manufacturers to specify handsets. Threats Sprint is still a market follower. It may have the only all-digital CDMA network in the U.S., but it does not have the resources that AT&T wireless does. It is very expensive to bring integrated telecommunications products to the market. More importantly, U.S. customers are not used to paying for content. Asking customers to upgrade to new, expensive handsets might require a lot of convincing.

    9. SWOT Analysis: Strengths and Weaknesses Strengths Sprint is the only carrier to build the first all-digital network from the ground up. The strong partnership with Qualcomm allows Sprint to order handsets to specifically work better on their network. In the business enterprise services side, Sprint holds several prominent contracts that bring in revenue. Weaknesses Allowed Cingular to strike deals with RIM and with Palm to provide their respective wireless networks. Cingular now virtually leads the space for mobile PDA use. Relies too much on business contracts to generate cash flow and their business units seldom work on joint projects.

    10. Goals of the Marketing Campaign The main objective is reinforce Sprints position in the market placer as a leader in mobile handsets and wireless communications. Integrated media campaign Two new product offering e-mail/web access with unique features of: Digital photography location services.

    11. Campaign Analysis Target Demographic Able income consumers 18-30 media savvy suited for mobile communications. Own PDA, and a mobile phone over a year old with an average monthly phone bill of $50. Unique Selling Proposition Emphasize how only this product solves or fulfills a need! On the go pictures Always on access to rich localization information Success Metrics Increase in market share in early adopters Increased brand awareness for product across media Redefinition of handset/service expectations in the marketplace Increase in ARPU through higher volume usage of data driven services Target acquisition is 60,000 customers for the first year with profit targets for 3 years at 5, 15, and 20 percent respectively.

    12. Campaign Analysis Acquisition Skim top 30% of customers and early adopters Convert dissatisfied competitor customers Offer unique product mix to clearly differentiate from competition Retention Loyalty programs (the more you stay, the cheaper it is) Service upgrade trials Lifetime Value segmentation Increase breath of quality 3rd party content providers Engage opt-in feedback campaigns for complete customer interactivity

    15. Competitive Analysis AT&Ts upcoming mMode service is an Americanized version of NTT Docomos successful mobile content service. Cannot imitate, so differentiate by what makes Sprints products successful: technology, people, and services!

    16. Timeline Integrated media Campaign will run over a 12-month period and each media vehicle will be implemented over a 3-month period.

    17. Projected Financials Media Plan Profit/Loss Life-Time Value Retention 3 Year P&L Operational Budget

    18. Media Plan

    19. Lifetime Value

    20. Retention

    21. 3 Year Profit/ Loss Statement for handsets only

    22. 3 Year Profit/ Loss Statement for handsets and services combined

    23. Operational budget

    25. Thank You! George Ruiz New York University Direct and Interactive Marketing Jfr229@nyu.edu http://georgeruiz.tripod.com

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