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ALWAYSLOCALEric Lee
Eric LeMay
Léa Leduc Berryman
Sharon Luk
Sarah MacKay
MARKETING PROFILEAmount of Canadians in University
Amount of out of province students
Total Canadian out of province students
978,480(Statistics Canada 2009b)
12% 117,417.60
Number of Canadians Business travel over 5 times a year
Total frequent business travelers
33,843,873 (Statistics Canada 2009a)
5%(PMB Online 2009c)
1,692,193.65
Students and Commuters
Rogers Market Share
Canadians who have cell phones
Total market
1,809,611.25 37%(PMB Online 2009b)
61.30%(PMB Online 2009b)
410,438
BREAK EVEN ANAYLSIS
125,574 Subscribers ($6,278,708 in Revenue)
1.64% of Rogers customers
30.60% of Targeted Rogers customers
0.605% of Canadians who own a cell phone
FINANCIAL ANALYSIS
Price Per annual Unit $ 60.00
Number of total units sold 205,219
Net Sales $ 12,313,138
Price Per unit (SIM card) $ 15.00
Cost of Goods Sold $ 3,078,284
Contribution Margin $ 9,234,853
Advertising Expenses $ 1,456,166
Cost of Technology $ 3,000,000
Profit in year 1 $ 4,778,687
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
MARKETING MIX Pricing
$45 monthly service fee with Canadian
Long distance Saver 125
$45 monthly service fee with AlwaysLocal
Cost of the add-on $15 $5
Number of short distance minutes
400 400
Number of long distance minutes
125 400
Monthly bill $60 $50
Cost per long distance minute
$0.12 $0.02
Cost per additional long distance minute
$0.35 $0.35
* Cost of new SIM card = $15
MARKETING MIX
High switching costs
Low switching costs
Expensive
Cheap
Frequent traveler
Infrequent traveler
Long distance use
Short distance use
AlwaysLocal
Nationwide 30 (Telus)
200 Canadian Long distance (Bell)
My5 Local calls (Rogers)
Positioning map
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) Posters/active promotion in areas with high demand
Stores in major cities (e.g. Toronto, Vancouver, Montreal)
Stores near major universities (e.g. Waterloo)
CONSUMER AND MARKET PROFILE
Target market People who make a lot of long distance calls
1. 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.
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 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
Household expenditures on communications projected to grow 30% by 2015
400 minutes of monthly talk
Euromonitor. (2009 January 20). Consumer Lifestyles. Retrieved October 25, 2009, from Global Market Information.
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.
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.
CONSUMER AND MARKET PROFILE
Direct competitors
Market ShareRogers Communications : 37%BCE inc. : 30.3%Telus Corporation : 28.6%
Indirect competitors
Fixed-line telephonyVoIP
Datamonitor. (2009 July). Wireless Telecommunications services in Canada – Industry. Retrieved October 22, 2009.
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 – 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.
Principle Description
Provides new informationThe launch of a new product or concept especially requires a concise and simple description to inform the customer of its benefits; a more thorough explanation should always be readily available (in-store and online)
Promotes the benefits in a persuasive manner
The various advertisements and promotions need to emphasize the benefits and tailored in a way to get the best response from the target audiences (i.e. students, business travelers, etc.)
Explains the difference between AlwaysLocal and similar long distance plans
Rogers is required to stress that this new feature allows a customer to call to/from two specific destinations and not everywhere in the world, but for a lower price; this differentiates this feature to long-distance plans.
Emphasizes the minimal efforts for the customer
It is essential to highlight the low switching costs and the simple feature-adding process to create a favorable perspective of this new concept.
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 – 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 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
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
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
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
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
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
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)
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.
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