Marketing PlaniPad3 with 4G Internet

Prepared for:

1 | P a g e

Prepared by:

DATE OF SUBMISSION

………………..

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

Page | 2

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

Page | 4

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

Page | 5

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)

Page | 6

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

Page | 8

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)

Page | 10

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)

Page | 12

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)

Page | 13

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

Page | 15

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

Page | 17

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.

Page | 18

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.

Page | 19

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)

Page | 20

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

Page | 21

Page | 22