AlwaysLocal

1. AlwaysLocal Eric Lee Eric Lemay Léa Leduc Berryman Sharon Luk Sarah MacKay

2. Break Even Anaylsis

3. Financial Analysis

4. Marketing mix • Product New SIM card technology Available through a new “Add-on” to Rogers Wireless plans Two features : Upgrade to total calling time Offer of two phone numbers in two Canadian area code

5. Marketing mix • Pricing * Cost of new SIM card = $15

6. Marketing mix 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

7. Consumer and Market Profile • Target market Frequent travelers: Students (10.2% of the population) Business professionals (20% of the population) • Students spend 81% of their disposable income on communications • Baby boomers : highest purchasing power 57.5% of students do not pay for their cell phone bills • Consumers are highly sensitive to price changes 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.

8. Consumer and Market Profile • Market Profile In 2009, the Canadian wireless telecommunications services was worth $14.9 21.5 million subscribers 6% of Canadian households are cell phone only (20% increase in 2 years) 400 minutes of monthly talk Market not a saturation point yet Telecommunications industry will be growing by 30% over the next 5 years Euromonitor. (2009 January 20). Consumer Lifestyles. Retrieved October 25, 2009, from Global Market Information.

9. Consumer and Market Profile Direct competitors Market Share Rogers Communications : 37% BCE inc. : 30.3% Telus Corporation : 28.6% *Telus and BCE do not have GSM networks and SIM cards Indirect competitors Fixed-line telephony VoIP Datamonitor. (2009 July). Wireless Telecommunications services in Canada – Industry. Retrieved October 22, 2009.

10. 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

11. 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.

12. 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

13. 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

14. 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

15. PROMOTION – direct marketing 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 • 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

16. 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

17. 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

18. 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 • In-store informative signage and active selling to new and existing customers • Online initiatives to advertise AlwaysLocal on the website and through • e-mail

19. IMPLEMENTATION • PRODUCT LAUNCH (continued) • 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)

20. 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.