Post on 26-Jan-2023
Marketing PlaniPad3 with 4G Internet
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Executive summary
This report is based on the marketing plan of Telstra
Telecommunication Company for their new products “ipad3 with 4G
internet services”. This report maintained all the rules and
methodology of developing a marketing plan. Various articles,
books and research papers relate to marketing plan, Telstra
telecommunicating and Australian market are collected. Even a
little communication is made with the company to get information
about the product.
Australia is the sixth largest country in the world according to
its area but it has a population of 22,897,164 which is very
limited compared to others and all the population may not be the
customers of telecommunication business. For this, Telstra
introduced a latest ipad3 with 4G internet service which will
give all the internet facilities with the basic mobile service
like, voice, text message etc. This report mentioned various
marketing strategies for the new and technology oriented
products.
Very few telecommunication companies in Australia have marketing
practices but Telstra has a great investment in marketing
activities and they are very professional in marketing activities
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because marketing activities help to survive in a competitive
market. For this Telstra is leading the telecommunication market
in Australia. This report shows how a telecommunication company
can achieve huge the market share.
Table of Contents
1. An introduction:............................................4
2. Literature Review:..........................................4
3. Situation analysis:.........................................6
3.1 Internal Audit:............................................6
3.2 External Audit:............................................7
3.3 SWOT Analysis:.............................................7
4. Target market:..............................................9
4.1 Marketing Research:........................................9
4.2 Consumer Behavior:........................................10Page | 3
4.3 Segmentation:.............................................10
4.4 Positioning:..............................................11
5. Marketing Objective:.......................................11
6. Marketing Strategy:........................................12
7. Action Programs:...........................................13
8. Implementation:............................................13
9. Control of Marketing Plan:.................................14
References:...................................................15
1.An introduction:Telstra Corporation limited called “Telstra” which is a famous
Australian media and telecommunication company and established a
strong telecommunication networks as well as providing various
products and services like mobile, voice, pay television and
internet access. Telstra is a historical company in Australia and
started being a governmental department with Australian post. But
now it is totally a private company and David Thodey, CEO of
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Telstra, has taken various marketing programs to increase its
sales and maximizing it profits. (Plc, 2008)
National Broadband Network of Australia has taken various
promotional programs to encourage Australian citizens for the
adoption of internet which made a structural change of Telstra
and the company is trying to cope with the situation.
Before 2009 the Telstra was losing their marketing share because
of ineffective marketing plane. For this, early in 2010, The
Telstra declared an amount of $1b considered as “fighting fund"
to invest for marketing activities to win back the market share.
This effort helped them to have strong sales momentum. The
Telstra also decided to make their company to provide some
digital services for the customers mainly various banking
services. For this they hired Gerd Schenkel from national
Australian bank. Recently, Telstra offered ipad3 with 4G internet
service. (Plc, 2008)
2.Literature Review:
Australia is a large country with limited population and has a
44% teledensity. So, the telecommunication market is limited here
and all the population of Australia aren’t the customers of
telecommunication business. On the other hand the customers of
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telecommunication services are not satisfied with voice and text
message services because Australian people are not interested to
send text message except especial days. So, telecommunication
companies need to provide other value addition services with
voice to survive in market like internet service because the
penetration to internet is 42.4% and it is increasing gradually.
Recently Australian government has taken some programs to give
internet service to almost 93% of the Australian population.
(Plc, 2008)
Telstra is a leading telecommunication company in Australia and
big organizations always deal with big projects which have big
challenges. The company recognized that only voice business was
not a profitable for them and it was becoming more competitive
day by day because threats from competitors were increasing day
by day. Telstra provide 24/7 coverage of customer services and
some electronic payments or banking services. The company always
remains in pressure of innovation and new product and services to
survive in the market. They realized that technology is becoming
music, movie and other recreational events oriented. For this,
the company made a contract with apple and decided to offer ipad3
with 4G internet services and this combination will reduce the
total price which may attract the customer because they are
getting ipad3 and 4G internet services at a time. (Plc, 2008)
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So, Telstra launched ipad3 with 4G internet services on 14th
march 2012. The ipad3 is made according to the features of 4G LTE
network of Telstra. The price of ipad3 was set keeping a balance
with ipad2 so that buyers of ipad2 can easily buy the ipad3.
ipad2 is updated than ipad3. it has many updated features than
any other mobiles by which internet can be browsed. It contains
the fastest mobile Wi-Fi device in the Australian market and can
connect 5 Wi-Fi devices like PC, PSPs, laptops etc and upload
various photos to facebook download movies, check email and all
other necessary internet services at a time. Even HD video and
high configuration games can be enjoyed by this mobile with less
buffering. (Biersdorfer, 2012)
The main competitor Optus is also trying to offer the 4G service
to the customers but their network structure is not compatible
with 4G internet services. They are also searching alternatives
ways to provide this offer for the customers. For this, Telstra
needs a strong and long term marketing plan for ipad3 with 4G
internet services. The technological products are updating day by
day. So, it is essential to do the business with right product in
right time. Otherwise, products will be obsolete in updated time.
(Paul Budde Communication Pty Ltd, 2010)
To market ipad3 with 4G internet services, Telstra applied
various marketing strategic activities like segmenting market,
targeting market, positioning the product, pricing strategy and
product strategy. The product ipad3 is very costly and all thePage | 7
customers will not be able to purchase. For this, Telstra applied
differentiated marketing strategy and set a marketing objective.
(Calkins Tim, 2008)
3.Situation analysis:Australia is the sixth largest country in the world according to
its area but it has a population of 22,897,164 which is very
limited compared to others and all the population may not be the
customers of telecommunication business, like India and China
have huge population, so, they have huge customers as well as
huge market for telecommunication business. All the marketing
activities are done based on the customers’ needs. Customers
always remain in the centre of marketing activities. For this, it
is difficult to survive in the Australian market only giving
voice service in Australian telecommunication market. It needs to
offer other value addition service, like high speed internet
service. (Sasek, 2009,)
3.1 Internal Audit:
Very few telecommunication companies in Australia have marketing
practices but Telstra has a great investment in marketing
activities. They are very professional in marketing activities.
They have already taken some marketing activities, like
production management, segmenting market, market planning,
relationship marketing, brand development and marketing
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communication. Telstra is very aware about the good performance
in the market. For this, they offer the latest product and
services through research and innovation. Employees of Telstra
are also encouraged to increase their skills on marketing
activities. Australian citizens are very much reluctant to send
text messages except Valentine’s Day, New Year’s Day, St.
Patrick’s Day and Christmas Day. Friday is mostly accepted to
send text messages. For this they recognized, that the basic
voice and text message service are not the basic demand of
customers. They need more at a time. So, Telstra started their
new offer ipad3 with 4G internet, which is very lucrative for
customers. (Plc, 2008)
3.2 External Audit:Australian telecommunication markets are now considered as
matured markets because of the increasing demand for the 3G
mobile services. 39.8% of total mobile market share is with
Telstra, on the other hand, the main competitor Optus which is a
Singapore based company has 32.2% mobile market share. Customers
in Australian mobile market are not satisfied with voice service.
They demand other value addition services like mobile data
service, internet access, and payment service and so on. For this
Telstra has already their 3G service to 3.5G, even 4G service.
Australian telecommunication business market is very competitive
because of variation in customer demands which ensure good policy
and greater consumers’ out comes. To satisfy the customers’Page | 9
various demands, it needs rapid and effective innovations.
(Sasek, 2009,)
Hutchison Telecom first launched the 3G service in Australian
market which changed the customers’ demands and Telstra was bound
to provide the 3G services to survive in the market. VoIP service
is very famous in Australian telecommunication services which are
given by iiNet. The competitors, iiNet and Internode of Telstra
are giving the broadband and High-speed ADSL2 services. Most of
the competitors of Telstra are offering bucket or capped call
price strategy which making the market more competitive. iiNet
first offered the flat rate internet access which was followed by
Telstra mush later. So, Telstra needs a lot of innovation and new
product and services to face the competition. (Chaisatien, 2007)
3.3 SWOT Analysis:
Telstra is a company which provides information and
telecommunication services. So, it has a wide range of products
and services like, business services, internet access and line
services. Telstra is leading the telecommunication markets in
Australia and it has a famous brand name. But business means risk
and Telstra is getting strong threats from its competitors. The
SWOT analysis is discussed below: (Chaisatien, 2007)
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Strengths:
Telstra is considered as the biggest brand in the market of
Australia and hs domination power over the other companies which
are giving information and telecommunication services in
Australian market. (Paul, 2009)
An extensive network infrastructure is operated and owned by
Telstra by which a competitive advantage can be ensured for the
company over competitors whose telecommunication networks are
unable to reach the remote and rural areas of Australia.
(Chaisatien, 2007)
Telstra is using the latest mobile technology which is called
Next G Network and latest broadband technology called ADSL 2 Plus
to survive in the competitive telecommunication market.
(Paul,2009)
Telstra owns 115 Telstra branded stores and 153 shops which are
licensed and all these are located strategically all over the
Australia. (Plc, 2008)
Weaknesses:
Telstra is ineffective to diversify and increase its business
globally. The price of products and services of Telstra is higher
compared to others.Page | 11
Telstra reduced its investment on advertising fixed line and
making huge investment for the development of new products and
services, like Next G Network. (Paul, 2009)
Telstra prefers post paid mobile services which have various
complexities to pay bills and discouraging prepaid mobile
services which are very easy to pay bills. (Chaisatien, 2007)
Opportunities:
Australian governments selected Telstra as a data supplier for
the national purpose. Telstra extended its CDMA network up to
remote areas because of government initiative. For this, Telstra
has the number one extended CDMA network coverage allover
Australia. (Paul,2009)
Telstra has increased their 3G service to 3.5G and the latest is
4G with ipad3 which is highly demanded by customers and leads
them for extensive use of broadband service. (Chaisatien, 2007)
Threats:
The competitors of Telstra are very innovative and developing new
products and services for the customers. Telstra also doing the
same but much later, this is a great threat for Telstra.
(Chaisatien, 2007)
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4.Target market:Before targeting market, the company needs to evaluate
effectively all the segments of markets for ipad3 with 4G
internet service and finding out which segment is most effective
and profitable for the Telstra to serve. The Telstra needs
differentiated targeting strategy which refers to targeting the
markets by segmenting the markets or dividing the markets into
various perspectives because all the telecommunication customers
are not the customers of ipad3 with 4G internet services. So, it
needs target the customers for ipad3 with 4G internet service.
(Kennedy, 2011)
4.1 Marketing Research: Only developing a product and launching it in the market is not
enough. It needs conduct the market research to know the feedback
about the product otherwise it will not see the light of success.
As the product, ipad3 with 4G internet services, is very latest,
it needs to know how the customers will react about the
experience of ipad3 with 4G internet services. For this, business
research is essential for Telstra because they need to identify
the specific benefits and features which are needed by the
customers and customizing the products according to those
benefits and features.(Kennedy, 2011)
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4.2 Consumer Behavior:Consumers are considered as the king of market because they make
decision to buy and consumers’ behavior plays an important role
to buy a product. So, Telstra needs to analyze the consumer
behaviors before launching ipad3 with 4G internet service. There
are some factors which affect the consumers’ behaviors like,
cultural factors, sub cultural factors, social class, family,
reference group, roles and status, self-concept, lifestyle,
occupation, age, learning, motivation, beliefs and attitudes. All
these affect consumers to make a decision to buy a product. So,
Telstra has to follow all these consumer behavioral factors
before launching ipad3 with 4G internet service. (Kotler,
Armstrong, 2009)
4.3 Segmentation:Market is a combination of various types of buyers and these
buyers may be varied in various ways according to their needs,
wants, buying practices and buying attitude. As Telstra is going
to market ipad3 with 4G internet service, they have to focus on
consumer markets and international markets because markets of
Australia is small compared to others like India or China or the
countries who have demand of 4G service like Bangladesh has huge
population but the demand of 4G with ipad3 is very limited.
(Kotler, Armstrong, 2009) Page | 14
The ipad3 with 4G internet services is very expensive but
essential mostly for business persons, young generation or the
people who are technology oriented. So, the company should focus
on demographic segment for local market which refers to
segmenting markets according to customers’ income, age,
education, occupation and generation like, finding out the
customers who have a minimum income level to buy the ipad3 with
4G and the old persons are very reluctant to buy 4G service, so
age plays a vital role for 4g service. As the product ipad3 with
4G is a prestigious product. So, the company may segment its
market psychographically which refers segmenting it market
according to customers’ personality, lifestyle and social status
like a Hollywood actor actress must use the latest technology but
this market is very profitable ad limited. (Kotler, Armstrong,
2009)
4.4 Positioning:The product, ipad3 with 4G internet services, is very new and
latest product and customers are not experienced about the
products. So, they are not mentally prepared to buy the products.
Telstra needs positioning the product which refers to setting the
products in customers’ mind to buy the product, because these
services or close to these services are given by various
companies, so market is getting competitive. For this,
positioning is essential for the product of ipad3 with 4G
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internet services so that customers can accept ipad3 with 4G
internet services avoiding all the alternatives. (Kotler,
Armstrong, 2009)
Telstra needs a concentrated action for positioning the product,
ipad3 with 4G internet services, which refers to positioning
better service and quality. Telstra should decide the marketing
mix, product, price, place and promotion, before positioning
ipad3 with 4G internet services. It is also called strategic
positioning for high quality products, high quality dealer
distribution, charging high price and advertising high quality
media. Telstra must hire and give training for some service
people and find retailers who have good reputation for giving
service. The company should also develop advertising and sales
strategy by which customers can get the information about the
superior services of ipad3 with 4G internet. This is the
effective ways for positioning the ipad3 with 4G internet.
(Kotler, Armstrong, 2009)
5.Marketing Objective:Random marketing activities can be succeeded in long run. So,
Telstra must set a marketing objective for ipad3 with 4G internet
services. Marketing objective specify the various terms so that
management can easily achieve the objectives and marketing
objectives should be set gradually like first year marketingPage | 16
objective, second year marketing objectives and so on because it
needs some corrective actions if necessary. (Kotler, Armstrong,
2009)
The first year objectives of Telstra for ipad3 with 4G internet
services should be informing the product and giving the
information about the product to allover the targeted customers
and achieving at least 30% market share.
In the second year, Telstra should take some corrective action
about products and marketing activities, if necessary and the
company will lead the market of ipad3 with 4G internet services.
To achieve the marketing objectives, Telstra needs a strong brand
image. So, Telstra should invest necessary amount of money to
create a strong brand image with quality, innovation and value.
6.Marketing Strategy:Telstra marketing strategy for ipad3 with 4G internet services
should be developed based on the targeted markets. The primary
customers of ipad3 with 4G internet services are the people who
have high level income and middle aged as well as the business
persons. So, these customers should be given the highest priority
and better service. The secondary customers of Telstra for ipad3
with 4G internet services are the people who have middle level
income and have interest for latest technology especially mobile
phone. These types of customers are in small amount and if we
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want to encourage them to buy ipad3 with 4G internet services,
they will not buy the product because of their limitations. So,
extra investment or marketing activities should not be made for
them. Like, segmenting customers into platinum, diamond, gold,
and silver according to their purchase and giving them some extra
facilities which make them feel prestigious. (Kotler, Armstrong,
2009)
Initially, Telstra should take some take some marketing
activities like, various mobile festivals to make the products
known to the targeted customers. Price should be according to the
targeted customers’ income level and services of the product and
it will be revised according to the competitors’ price. Product
strategy should be made very effectively. Like, giving some
guarantee, warrantee services at least one year. A strong,
reputed and effective distribution channels should be maintained
to distribute the products all over the Australia. Finally, a
regular communication should be made with the profitable
customers to know their feedback about the product. (Kotler,
Armstrong, 2009)
7.Action Programs:The Telstra should introduce as fast as can because every
technology is developing. So, their products may be back dated.
Management department plays a vital role to execute the action
programs.
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In the first month of introducing ipad3 4G internet services,
Telstra will emphasize on effective distribution channels and
retailers to provide the products near the customers. Telstra
will also ensure the online purchase facilities, because there
are some customers who have abilities and interest to buy ipad3
with 4G internet but staying in remote areas. In the first month,
Telstra will conduct massive advertisement about the ipad3 with
4G internet. (Kotler, Armstrong, 2009)
In the second month, Telstra will perform some promotional
activities in various areas where sales rate is low, like ipad3
festival or fair with various facilities like buy one and get a
free t-shirt and bag or free mobile software. In this month
Telstra will try to collect the feedback about the experience of
ipad3. (Kotler, Armstrong, 2009)
In the third month, the Telstra will arrange a sales competition
or set bonus based on the amount of sales. For this, sales person
will have interest to sell products.
In the fourth month, the competitors will come in market and
Telstra will revise its price and set a competitive price for
ipad3.
Like this ways, Telstra will execute all the strategic marketing
activities.
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8.Implementation:Telstra will collect information from the market about the
product, ipad3 with 4G and analyze the feedback from the
customers. It may need further addition or reduction of values to
the ipad3 with 4G to survive in the market. Telstra will execute
further correction for ipad3 with 4G internet service and perform
all the further promotional activities to achieve the targeted
sales and profit. (Kotler, Armstrong, 2009)
9.Control of Marketing Plan:Now the product, ipad3 with 4G, is already launched and doing
business well in the Australian market. But it will not go on
very long time. It needs to control the marketing plan. Controls
give results which is helpful for management, after marketing
plan is implemented. Telstra will find out any performance
variations and problems about the ipad3with 4G internet. Telstra
will also measure that how much the customers of ipad3 with 4G
are satisfied with its quality and services. (Kotler, Armstrong,
2009)
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References:
1. Plc Ovum, 2008, Telstra
2. Biersdorfer J. D., 2012, iPad: The Missing Manual
3. Paul Budde Communication Pty Ltd, 2010, Australia - TelcoCompany Profiles - Telstra and Optus
4. Calkins Tim, 2008, Breakthrough Marketing Plans: How to StopWasting Time and Start Driving Growth
5. Sasek Miroslav, 2009, This is Australia
6. Chaisatien Warren, 2007, Australian Telecommunications and MediaMarket
7. Fletcher Paul, 2009, Wired Brown Land?: Telstra's Battle forBroadband
8. Kennedy Dan S., 2011, The Ultimate Marketing Plan: Target YourAudience! Get Out Your Message! Build Your Brand!
9. Kotler Philip, Armstrong Gary, 2009, Principles of Marketing
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