Alwayslocal
This presentation is the property of its rightful owner.
Sponsored Links
1 / 35

AlwaysLocal PowerPoint PPT Presentation


  • 77 Views
  • Uploaded on
  • Presentation posted in: General

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

Download Presentation

AlwaysLocal

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Alwayslocal

AlwaysLocal

Eric Lee

Eric Lemay

Léa Leduc Berryman

Sharon Luk

Sarah MacKay


Agenda

Agenda

  • The product

  • Marketing Profile

  • Marketing Mix

  • Financial Analysis

  • Foreign Entry

  • Implementation


The product alwayslocal

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

SWOT Analysis


Consumer and market profile

Consumer and Market Profile


Consumer and market profile1

Consumer and Market Profile

  • Target market

    • People who make a lot of long distance calls

  • Students

  • Spend 81% of their disposable income on communications

  • 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

  • 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 and market profile2

Consumer and Market Profile

2. Business professionals

  • Represent 7.4% of cell phone users

  • High spenders:

    • 43% spend between $36 to 50 per month on cell phones

  • 20% of Canadians between 20-64 travel on business

  • 5% travel over 5 times a year


Consumer and market profile3

Consumer and Market Profile

  • Market Profile

    • Canadian wireless telecommunications services was worth $15 billion dollars

    • 21.5 million subscribers

    • Average of 400 minutes of monthly talk

    • Potential for rising demand/value:

      • 6% of Canadian households own only cell phones (20% increase in 2 years)

      • 75% of Canadian households had a mobile subscription

        • Saturation point has not been reached

      • 400 minutes of monthly talk

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


Consumer and market profile4

Consumer and Market Profile

Direct competitors

Market Share

Rogers Communications : 37%

BCE inc. : 30.3%

Telus Corporation : 28.6%

Indirect competitors

Fixed-line telephony

VoIP

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


Marketing mix price

Marketing mix: Price

* Cost of new SIM card = $15


Marketing mix product

Marketing mix: Product

Product Positioning map

High switching costs

Expensive

Frequent traveler

My5 Local calls (Rogers)

Short distance use

Long distance use

Nationwide 30 (Telus)

Infrequent traveler

200 Canadian Long distance (Bell)

Cheap

AlwaysLocal

Low switching costs


Distribution

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 communication framework

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.


Promotion media channels

PROMOTION – media channels

TELEVISION

  • Emphasize corporate reputation

    • i.e. Best signal, GSM Network, Largest Canadian network

  • Introduce new phones/plans

    AlwaysLocal – Decision factors

  • Specific/small target market

  • Does not constitute Rogers core value propositions

  • Relatively low potential profit margins

    • Essential to keep advertising costs low to maintain profitability

      Conclusion

    • Too expensive to advertise AlwaysLocal using television advertisements

    • Not suitable to solely advertise a feature with low profit margins


Promotion

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 media channels1

PROMOTION – media channels

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


Promotion media channels2

PROMOTION – media channels

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

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

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/CEGEP campuses

    PUBLIC RELATIONS : UNIVERSITIES

  • 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


Break even analysis 1 m technology

Break Even Analysis ($1 M technology)


Financial analysis

Financial Analysis

  • Unsure about new technology costs

    • Would include SIM card technology and cell phone software

      • $1 million

      • $3 million

      • $5 million


Break even analysis 1 m technology1

Break Even Analysis ($1 M technology)


Break even analysis 3 m technology

Break Even Analysis ($3 M technology)


Break even analysis 5 m technology

Break Even Analysis ($5 M technology)


Financial analysis1

Financial Analysis


Financial analysis2

Financial Analysis


Financial analysis3

Financial Analysis


Financial analysis conclusion

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

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

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


Implementation1

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


Implementation2

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)


Bibliography

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.


  • Login