AT&T Marketing Plan
Kim Pearson & Ashley Webb
12/11/2011
1
Table of Contents
Executive Summary
2
Situational Analysis
3
Market Summary
3
SWOT Analysis
8
Competition
10
Service Offering
12
Keys to Success
15
Critical Issues
15
Marketing Strategy
16
Mission
17
Marketing Objectives
17
Financial Objectives
17
Target Markets
18
Positioning
21
Strategies
22
Marketing Mix
23
Marketing Research
28
Controls
30
Implementation
30
Marketing Organization
31
Contingency Planning
31
Conclusion
32
Bibliography
34
2
Executive Summary
AT&T is known asking “The Bentley” in the telecommunications industry. It has always
provided high quality products with outstanding service. Our customer base has some diminished
in past months due to the heavily saturated market of other carriers. Our mission is to win back
those long time loyal customers while gaining new customers with new and innovative quality
products and outstanding customer service. The Triple Play Bundle: U-verse TV, Home Phone
Service/Wireless, and Internet Services will inclusively provide all services without having the
inconvenience of multiple providers for different services.
AT&T intent is to target the 10 major metropolitan markets: whose income ranges between
$40,000- $50,000; men, women ages of 30-55 with children that may currently have these
services with another provider or have a necessity for the bundle.
AT&T is currently in competition with seven large companies. The strongest competitor for
cable/satellite is Comcast, for the home phone services is Vonage, and the top two competitors in
the wireless industry is Sprint and Verizon; whose customers may be willing to switch providers
for the convenience of having three quality services combined on one billing statement.
The main objective is to price the bundle at an affordable rate enabling customers to switch
carriers. This will build and strengthen our customer base and win back our former customers
while gaining new customers.
The channel of distribution AT&T will utilize will be at a zero-level and eliminate the middle
man which will make it more affordable for the customer which will result in increasing our
Bottom Line.
3
AT&T promotion strategy will consists of various vehicles of advertising to pull in the targeted
the customer. Television, radio, newspaper, and Social Media will create awareness in the
different marketplaces in the 10 major markets nationwide.
The budget allotted for this massive campaign will be costly to circulate and be effective in
advertising and marketing in these major markets, and will budget costs annually.
Situational Analysis
The product offered is the AT&T bundle service that includes Internet, TV, and Voice. AT&T’s
advantages are that it’s the largest provider of broadband, AT&T’s wireless service has an
exclusive relationship with the Apple iPhone, it has a broad portfolio of products; they have great
opportunities for growth whether it’s market expansion, acquisitions, and further growth with 4G
technology.
This product will fulfill the customers need for entertainment and information. This particular
bundle will provide customers with more overall value. The product features a wider variety of
TV channels, superior internet speeds, and premium quality phone service at a very competitive
rate.
Market Summary-Telecommunications
No other industry touches as many technology-related business sectors as telecommunications,
which, by definition, encompasses not only the traditional areas of local and long-distance
telephone service, but also advanced technology-based services including wireless
communications, the Internet, fiber-optics and satellites. Telecom is also deeply intertwined
with entertainment of all types, including cable TV systems, since cable companies are now
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aggressively offering local exchange service and high-speed Internet access. The relationship
between the telecom and cable sectors has become even more complex as telcos are now selling
TV via IP (Internet protocol) services, competing directly against cable for consumers’
entertainment dollars.
Consequently, the various organizations that monitor the global telecommunications industry
have their own ways of estimating total revenues, and their own thoughts on including, or not
including, specific business sectors. Does “telecom” include equipment sales and consulting?
Or, should it be considered to be services only, such as subscriber lines and datanets?
Information and Communication Technologies (ICT) is a term that is used to help describe the
relationship between the myriad types of goods, services and networks that make up the global
information and telecommunications system. Sectors involved in ICT include landlines, data
networks, the Internet, wireless communications, (including cellular and remote wireless
sensors) and satellites.
Globally, in the broadest possible sense, the telecommunications industry will be about a $4.25
trillion sector in 2011. (This figure includes equipment and related services, as well as subscriber
revenues and other business revenues.) The widely recognized TIA (Telecommunications
Industry Association) estimated global telecom revenues at $3.1 trillion for 2010, including $985
in U.S. revenues.
There were approximately 5.3 billion wireless service subscriptions worldwide as of March,
2011, according to LM Ericsson. This is immense growth from about 4 billion at the end of
2008 and 1.41 billion in 2003. However, the actual number of individuals holding those
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subscriptions is somewhat less, at approximately 4.2 billion, as many people have more than one
subscription.
The base of global wireless subscribers will continue to grow rapidly, as low-cost providers are
making service prices low enough to be affordable for vast numbers of people in emerging
nations. Inexpensive cellphones are now indispensable to consumers from Haiti to Africa to
New Guinea.
Telecommunications remains one of the major providers of employment in the world, with
899,700 employees in the U.S. alone.
The ITU estimates global landlines at 1.18 billion at the end of 2010, down from 1.21 in 2009,
and 1.27 at the end of 2008. This is only 17.2 landlines per 100 global population, compared to
about 80 per 100 population for wireless subscriptions. For the U.S., the FCC states there were
113.5 million households with wired landlines at the end of 2010, down slightly from the
previous year.
Several major factors are creating changes in the telecommunications sector today, including: a)
a shift in business and commercial telephones to VOIP (Voice Over Internet Protocol) services,
that is, telephone via the Internet; b) a shift in residential and personal telephone use from wired
services to wireless; c) intense competition between cable and wired services providers; d)
steady increases in Internet usage for communications of all types; and e) the continuing
evolution of advanced wireless technologies, including more smartphones, wider availability of
3G services and 4G services that will slowly but surely roll out.
Ingenuity, innovation, cost control and a reasonable approach to spending and investment will
help to move the industry ahead. New cellular, cable, satellite, VOIP and wireless technologies
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promise continuous rapid change in this sector and pose a massive threat to traditional landlines.
The cost of a cellphone call has become a bargain worldwide. Meanwhile, competition among
handset makers is more intense than ever. On the higher end, cellphone manufacturers are
adding advanced new features to smartphones on a regular basis. These phones now contain
significant computing power and memory. On the low end, handset makers are introducing good
quality units for as little as $15 to $20 for high volume sales in emerging markets such as Africa.
Improved cellphone service has prompted tens of millions of consumers to cancel their landlines
altogether, eating into traditional revenue streams at AT&T and Verizon, among others.
Meanwhile, wireless access to the Internet threatens traditional DSL broadband suppliers.
As more consumers recognize the promise, and good value, of phone service using VOIP,
millions of households and businesses worldwide have signed up for less-expensive VOIP
service as an alternative to landlines, often through their cable providers as part of a bundle of
services. Several heavy hitters, such as Comcast, have jumped on the VOIP bandwagon, along
with startups like Skype (acquired by Microsoft in 2011) and Vonage.
At the same time, local phone companies, led by Verizon and AT&T, are laying fiber-optic cable
directly to the neighborhood and even into the home and office in order to retain customers with
promises of ultra-high-speed Internet connections and enhanced entertainment offerings online.
This is the big telcos’ way of fighting back. If cellphone owners are dropping their landlines,
while VOIP over cable takes even more landline customers away, then the best weapon that
traditional telcos can use in their battle for market share is the Internet. AT&T and its peers are
focusing on bundled service packages (combining wireless accounts, very high-speed Internet
access and entertainment such as video on demand and TV via IP , in addition to VOIP or
7
landlines). Next, service providers are offering innovative new value-added services that are
accessed online. For example, consumers might respond well to bundled services that monitor
home security or adjust home energy usage, or services that monitor the movements and needs of
elderly family members at home. The right value-added services, controlled via cellphones,
remote wireless sensors and/or the Internet, could get consumers hooked, with the potential to
build new revenues and stop customer turnover.
Mergers, acquisitions and other industry changes redefined telecom. AT&T and SBC merged
(changing the name of the merged company to AT&T, Inc.), and MCI merged into Verizon.
Sprint and Nextel have combined to create wireless giant Sprint Nextel. Qwest has merged into
CenturyLink (formerly CenturyTel). The competitive landscape is shifting dramatically due to
these mergers.
In addition, government regulations are evolving quickly, which will bring even bigger changes
to business strategies. Overall, the telecommunications industry is in a state of continuous
technological and economic flux driven by intense competition and new technologies.
In March 2010, FCC chairman Julius Genachowski published a proposal, the National
Broadband Plan. He not only proposes to solve the problems of rural Internet access, he also has
a plan called “100 Squared.” His thought is to increase Internet services in America so that 100
million homes would enjoy 100 megabit download speed and 50 megabit upload speed by 2020
(compared to an average of about 3 or 4 megabits of broadband download speed, and relatively
slow upload speed, as of 2009). (Plunket)
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Home Phone, TV and Internet Providers
This industry comprises operators primarily engaged as third-party distribution systems for
broadcast programming. The operators deliver visual, aural, or textual programming received
from cable networks, local television stations, or radio networks to consumers via cable or directto-home satellite systems on a subscription or fee basis. This industry does not include cable
network program producers, which are the primary players in the Cable Networks industry.
Primary Activities
•
Providing third-party distribution systems for public broadcast programming
•
Delivery of outsourced programming to consumers via direct-to-home systems on a
subscription or fee basis
•
Distribution of video services by optical fiber cable, satellite or other medium
Major products and services in this industry
•
Basic programming packages
•
Pay-per-view services
•
Premium cable programming
packages
•
Advertising
•
Other services
•
Internet access services
•
Other program distribution related
services
•
Program distribution equipment sales
and rentals
SWOT Analysis
Strengths
•
Largest provider of broadband in U.S.
•
World’s largest communications holding company by revenue.
•
Broad portfolio of complementary products and services (wireless communications, local
exchange services, long-distance services, data/broadband and Internet services, video services,
telecommunications equipment, managed networking, wholesale services, and directory
advertising and publishing).
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•
Extremely capable network capacity, both physical (fiber optics) and wireless (including
a growing 3G network).
•
AT&T Wireless exclusivity with Apple‘s iPhone.
Weaknesses
•
Lack of Geographical concentration
•
Increasingly more price-competitive market in both retail and wholesale markets.
•
Company obligations and liabilities from old business unit spin-offs
Opportunities
•
Further industry consolidation (acquisitions).
•
Wireless growth, particularly through its partnership with Apple/iPhone.
•
Emerging markets/global expansion.
•
Further industry growth with 4G technology
•
Expanding of U-Verse fiber network
•
Investments in global networks for business services
Threats
•
Increasingly ferocious competition in the wireless arena.
•
Emerging technologies — falling behind smaller, more nimble companies and operators.
•
Price competition within industry pressuring margins.
•
Weather damage to antennas and transmission lines.
•
Reliance on iPhone gives Apple an upper hand in brand visibility
•
Saturation in the wireless market
•
Government regulation
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Competition
AT&T’s direct competitors are Comcast Xfinitiy, Dish network, and Direct TV because they all
offer the bundled home television, phone and internet s services. They are also the other top star
players within the telecommunications industry in the US.
Internal competition for industry services relates to the price of the various levels of
programming (basic versus premium), the quality of the video and audio service, including now
digital services and alternate service delivery mode, cable versus satellite or by other means.
Also important is the variety and quality of programming, the availability of bundled services including internet, video-on-demand and telephony, introduction of new services such as videoon-demand and personal video recorders and the number of channel.
The level of internal industry competition is particularly high and increasing, especially between
the cable and satellite distribution segments, although, now there is a high degree of overlap in
ownership of both systems by major operators.
External competition applies from other areas of leisure and entertainment expenditure by
households, including from internet and web-based products, as alternatives to TV watching and
now include movie downloads and watching on computers to podcasts. (IBISWorld)
Comcast
Types of Products and Services
•
Video-on-Demand
•
Cable Television
•
Advertising Services
•
VoIP Service
•
Interactive Program Schedules
•
Cable Network Programming
•
Wireless Services
•
High-Speed Internet Service
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Brand Division and Affiliates.
•
Global Spectrum LP
•
NBC Universal LLC
•
Golf Channel (The)
•
Philadelphia Flyers
•
Comcast Interactive Media
•
Philadelphia 76ers
•
Xfinity TV
•
Fandango Inc
Sales in Thousands
•
2010 Sales: $37,937,000
•
2009 Sales: $35,756,000
•
2008 Sales: $34,256,000
(Comcast Profile)
EchoStar Corp-DishNetwork
Types of Products and Services
•
Digital Set-Top Boxes & Related Products
•
Fixed Satellite Services
Brand Division and Affiliates
•
DISH Network Corp.
•
EchoStar Satellite Services LLC
•
Sling Media Inc
•
Hughes Communications, Inc.
•
EchoStar International Corporation
Sales in Thousands
•
2010 Sales: $2,350,369
•
2009 Sales: $1,903,559
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•
2008 Sales: $2,150,520
DirectTV
Types of Products and Services
•
Satellite Broadcasting
•
Satellite-Based Internet Services
•
Commercial Satellite Fleet
•
Digital Television
Brand Division and Affiliates
•
PanAmericana
•
Liberty Entertainment, Inc.
•
Sky Brasil Servicos Ltda.
•
DIRECTV U.S.
•
Innova, S. de R.L. de C.V.
•
DIRECTV Latin America
•
FSN Northwest
•
DIRECTV Sports Networks LLC
Sales in Thousands
•
2010 Sales: $24,102,000
•
2009 Sales: $21,565,000
•
2008 Sales: $19,693,000
Product (Service) Offering
“AT&T offers products and services for consumer, small business, enterprise, wholesale, and
local search. Table 1 provides details for AT&T's consumer portfolio.
Product/Service
Wireless
Description
Competitors
AT&T Mobility offers a wide
variety of wireless voice and
data services over one of the
nation's largest digital voice
Sprint
T-Mobile
Verizon Wireless
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and data networks. AT&T also
offers GoPhone prepaid
wireless services, including an
all-inclusive talk, text, and
Web service, priced at $50 per
month. The company also
markets a wide range of voice
and data devices that can
connect to its Mobile
Broadband Network.
Digital TV
AT&T's video solutions,
including the following:


Internet
AT&T U-verse TV
AT&T | DIRECTV
AT&T is the US' largest
broadband provider, offering
security, privacy, and virus
protection in addition to
access. Access options
include:







AT&T Dial-Up
AT&T U-verse
Internet & Data Plans
AT&T DSL
Satellite High Speed
Internet Powered by
WildBlue
AT&T Wi-Fi
LaptopConnect
Home Networking
Comcast
Cox
Communications
DIRECTV
Dish Network
Qwest
(CenturyLink)
Sprint
Time Warner
Cable
Verizon
Communications
Comcast
Cox
Communications
Qwest
(CenturyLink)
Sprint
Time Warner
Cable
T-Mobile Clear
Verizon
Communications
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Bundles
AT&T offers flexible
combinations of home phone,
broadband, TV, and wireless
services, depending on
availability. Particularly
popular are the AT&T U-verse
bundles.
Comcast
Qwest
(CenturyLink)
Sprint
T-Mobile
Time Warner
Cable
Verizon
Communications
Home Phone
AT&T provides home phone
services, primarily in the local
service areas of the various
local service operating
companies acquired by SBC
Communications. These
include:
Comcast
Qwest
(CenturyLink)
Sprint
Verizon
Communications




In-Home
Support Services
Local phone service
Nationwide long
distance service
AT&T U-verse Voice
over IP (VoIP)
AT&T HomeManager
AT&T ConnecTech provides a
full suite of in-home services
for virtually all technical
support needs from installation
to maintenance and repair for
residential customers
nationwide.
Comcast
Cox
Communications
Qwest
(CenturyLink)
Sprint
Time Warner
Cable
Verizon
Communications
AT&T's network spans the globe and reaches every major country and metropolitan area through
its subsidiaries and affiliates, including all of the Fortune 1000, with one of the world's fastest,
most advanced IP backbone networks, complemented by the largest integrated GSM network in
the US. The company made capital investments totaling $20.3 billion in 2010 to continue
15
building out its wired and wireless networks and expects to invest another $19 billion in network
upgrades in 2011. (faulkner.com)
The need of our product is to replace it with a more economical cable/internet/phone service than
remain with a higher priced service from another vendor. We can still provide the customer with
high quality customer care before, during, and after the transition.
AT&T will conduct a campaign to win back previous customers who have recently left the
company for another carrier or vendor, or loyal customers who may have had services for years
but decided to switch due to price increase. There are still customers who can be persuaded back
with a simple rate reduction. The features and benefits of the AT&T products would be to offer a
lower rate along with premium channel incentives, and easy accessible DVR recording and
viewing.
Keys to Success
In order for AT&T Home Services to be successful, we must provide a targeted level of
customer care service. Customer satisfaction is very important for positive word of mouth and
direct advertisements. AT&T must continue to offer high quality products to match and outsell
the competition. We also must continue to seek out former loyal customers, and attract new ones.
Critical Issues
The AT&T network includes extensive wireless and wired access capabilities, as well as one of
the world's most advanced and powerful IP backbones.
The AT&T global backbone network carries 23.7 petabytes of data traffic on an average business
day.
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Our backbone network carries a full range of IP-based services, including wireless data, business
video, data and voice services, private line and wavelength traffic, as well as IP-based residential
services and Internet access for AT&T's more than 17.8 million total broadband customers.
Our network also incorporates Multiprotocol Label Switching (MPLS), which supports a full
range of applications over a single IP network infrastructure with the highest levels of service
quality.” (AT&T)
We will continue to utilize the warehouses to store our tangible equipment such as cable/HD
cable boxes, DVR machines and, wireless phones. Retailers and distributors will also have an
opportunity to sell and offer our excellent products, as well as having the same accessibility to
the equipment to install the services for all customers. The internet will definitely have the
advantage over all other available sources to acquire our services.
Marketing Strategy
Our long term goal is to develop extensive awareness to potential new clients to increase our
customer base. The necessity to increase the company’s public relations activities is essential
which will enable more advertising of the products via website, print, and television
commercials. Making them more visible and attract new customers; incorporating attractive ads
in our retail stores that are designed to draw in new customers. We would also like to maintain
our current customer base with offering special promotions, and incentives that would encourage
mouth-to-mouth referrals
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Mission
Our mission is to keep you connected with the latest technical innovations which will benefit
every aspect of your world.
Marketing Objectives
Increase product awareness among the target audience by 50 percent in one year. Inform target
audience about the updated features and the new benefits of AT&T products and our competitive
advantage, leading to a 25 percent increase in sales in one year. The awareness of our products
will be measured from the responses of our marketing campaigns and surveys.
Financial Objectives
AT&T reported a 60% drop in profits for the fourth quarter of 2010, primarily the result of a
previously-disclosed change in its accounting practices. AT&T posted a fourth-quarter profit of
$1.09 billion, or 18 cents a share, down from $2.73 billion, or 46 cents per share, a year earlier.
Excluding such items as the accounting charge and severance costs, earnings rose to 55 cents.
Revenue for the quarter was up 2.1%, to $31.36 billion. AT&T's wireless revenue overall rose
9.9% to $15.18 billion, as the postpaid average revenue per user rose 2.2% to $62.88. AT&T saw
a 27.4 percent growth in wireless data revenues, up $1.1 billion versus the year-earlier quarter
the churn rate for the postpaid customer base was 1.15%, while the combined rate fell to 1.32%
from 1.42% a year ago. Wire line revenue fell 3.2% to $15.11 billion. The company's U-Verse
offering now has 246,000 TV subscribers; the carrier also said it has 210,000 net new high-speed
Internet customers. (Drumheller, Russ)
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The goal of this marketing plan is to stimulate growth to ultimately increase the customer base
by 20%-25% while retaining the current customer base and to increase market share by 1% by
2014.
We believe we can support such growth due growing number of products and services. The
previous year’s sales also provide evidence. While the economy remains unstable AT&T saw a
slight increase in sales from 2008-2010.
2010 Sales: $124,280,000
2009 Profits: $12,535,000
2009 Sales: $123,018,000
2008 Profits: $12,867,000
2008 Sales: $124,028,000
2007 Profits: $11,951,000
2007 Sales: $118,928,000
2006 Profits: $7,356,000
2006 Sales: $63,055,000 2010 Profits:
$19,864,000
(Plunket, J. W)
If the market share is increased by 1%, AT&T would have a 27% market share. (Green, Jeff.
Telecom in the US Nov 18,2011)
Target Markets
The basic needs that the AT&T cable, internet and phone bundle satisfy are entertainment, and
communication. Almost all people in the United States turn to the TV and internet as their main
source for entertainment and knowledge. The bundle service offers accessibility to TV, Internet
and Phone at a very competitive value and price.
AT&T’s points of parity with the competition are that it can show basic channels with the option
of movie channels; customer service is available; and it has good reception. The features that
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differentiate AT&T bundle service is it’s a wider variety of channels at very competitive prices
and superior customer service.
With 26% market share, AT&T is an obvious star player in the telecommunication industry. The
most fitting growth strategy would be to continue to penetrate the market by enhancing current
products into a saturated yet growing market. (Green, Jeff. Telecom in the US Nov 18, 2011)
To make the first customer interaction a positive experience, new customers will be offered a
discounted package for the first six months of a two year contract. To retain customers, AT&T
will offer rewards for customer referrals though a customer referral program. In addition to the
referral program we will offer customers the option to go paperless which means all transaction
and bill statements will be online. In return customer will be credited a discount on their monthly
bill.
The current consumer purchasing process will be upheld. Customers can order bundling services
online, in a brick and mortar store or over the phone.
Our general strategy for reaching the set target market is to use various forms of mass media and
by a customer referral program. To grow the customer base AT&T will reward existing
customers for referring new customers to bundled services. If a customer is established based off
a referral the existing customer will be rewarded one of the following: 10% off one month’s bill,
no taxes on one month’s bill or a $50 gas card. These rewards would give the existing customers
a chance to increase the value of the U-Verse bundling service.
In general our target market can be considered very broad:
•
Men & Women
•
Ages 30-55
20
•
With children or without children
•
Urban and Suburban-People living either within or outside the top ten MSA’s
•
Income between $40,000- $90,000
Our marketing strategy will be used for the top ten MSA’s of the United States.
1.
New York
6.
Houston
2.
Los Angeles
7.
Washington D.C.
3.
Chicago
8.
Miami
4.
Dallas
9.
Atlanta
5.
Philadelphia
10.
Boston
According to the online segmenting source My Best Segments the description of the target
market fits into the following groups:
•
Second City Elites
•
American Dreams
•
Upward Bound
•
White Picket Fence
•
Bohemian Mix
•
Blue Chip Blues
•
Kids & Cul de Sacs
•
Close in Couples
•
Home Sweet Home
•
Sunset City Blues
•
Fast Track Families
Even though these are separate groups they all have a few points in common that make them our
idea target market. These groups have families of two or more, they live in the top Ten MSAs
and they have a disposable income to support the cost of AT&T’s services. For instance, the
group titled Kids & Cul de Sac may be our most ideal group and they can be described as:
Upper-Mid Younger w/ Kids
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Upper-middle class, suburban, married couples with children--that's the skinny on Kids & Culde-Sacs, an enviable lifestyle of large families in recently built subdivisions. With a high rate of
Hispanic and Asian Americans, this segment is a refuge for college-educated, white-collar
professionals with administrative jobs and upper-middle-class incomes. Their nexus of
education, affluence, and children translates into large outlays for child-centered products and
services.
2010 Statistics:
US Households: 1,876,131 (1.62%)
Median HH Income: $76,379
Lifestyle Traits
Shop at Disney Store
Buy educational toys
Read Parenting
Watch the Disney Channel
Volkswagen Routan
Positioning
AT&T is a very well respected company and it has a very positive position the
telecommunication industry. AT&T is the largest communications holdings company by
revenue; it has a very broad portfolio of products and services; it has tremendous opportunities
for growth and expansion whether it’s through acquisitions or entering into emerging markets.
AT&T’s partnership with Apple and the IPhone has also provided a strong footing within the
telecommunications industry. For the most part AT&T’s broad list of products and services do
meet the consumers’ needs but we think the need for competitive value at very competitive
22
prices could be improved or updated. To meet this need for value and we will use sales
promotions. (Drumheller, Russ)
Strategies
The objectives of the proposed growth strategy are to capture new customers and to retain
current customers. We will use the following strategies to reach our target market:
•
Customer Referral Program
Reward: 10% off one month’s bill
Reward: No taxes added to one month’s bill
$50 gas card
•
Mass Communications
•
Top ten MSAs in the United States
•
Outdoor
•
Commercial Advertising
•
Online
•
Radio
Recent trends in advertising have made it popular and effective to advertise online. AT&T will
reach out to websites in search of advertising opportunities. Advertising on TV during primetime
hours is also another strategy that can be used to reach our broad target market.
The industry is full of competition and is very saturated. To set the marketing strategies apart
from the competition we will consider every opportunity of interaction with the consumer and
take those opportunities to make the consumer aware of AT&T services.
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Marketing Mix
AT&T is “The Bentley” in the telecommunication industry. AT&T is well known for its high
standard in offering the best quality in products and services across the globe. In order to
maintain that status, we do not want to take for granted that customers would be knocking our
doors down to get our products and services; we want to show them that we appreciate their
business. Creating a marketing mix that will reach our target audience will consist of the
following strategies will be beneficial for the customers as well as the company.
To increase our customer base, we will need to increase their knowledge of our excellent
products and services; the features and attributes of our Triple Play – TV + Internet + Voice or
Wireless.
U-verse customers enjoy a crystal-clear 100% digital picture along with digital video recording
(DVR), Video on Demand, High Definition, and choice programming with a wide variety of
Premium and International channels.
AT&T U-verse entertainment bundle service, you will receive a cutting-edge Total Home DVR
(available in most programming packages) that records up to four programs at the same time.
DVRs can be accessed remotely from a computer or wireless phone (with required technology).
With U-verse DVR, customers have the power to pause, replay, and record live U-verse TV.
ATT U-verse TV allows users to determine their own instant replays, pause an Internet TV show
while refilling their popcorn, or go out to dinner with family while their favorite movie is being
recorded. Check U-verse availability in your area by clicking on the button below.
AT&T U-verse High Speed Internet is leading the industry by providing security, protection, and
a variety of high speeds to meet each customer’s unique needs. In addition, built-in wireless
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home networking is included with AT&T U-verse Internet at no additional cost. Customers can
get the information they want, when they want it, while enjoying the following options:
•
Pro, Elite, Max, Max Plus, Max Turbo Plans offering speeds 3 - 24 Mbps.
•
Music videos and customized commercial-free radio stations.
•
A variety of online games that can be played with family, friends, or alone.
•
New sights and sounds with special programming from web premieres to behind-the-
scenes footage of popular movies and TV shows.
•
Access to thousands of Wi-Fi Hot Spots! AT&T Wi-Fi Basic service is included if you
subscribe to AT&T High Speed Internet, AT&T U-verse Internet, or AT&T Fast Access®
DSL—all speed plans included. This includes locations like Starbucks, Barnes & Noble,
Airports, McDonald's, and additional AT&T Wi-Fi Locations.
AT&T U-verse Voice comes packed with advanced calling features like:
•
Busy Call Forwarding
•
Directory Assistance Blocking
•
Call Forwarding
•
Do Not Disturb
•
Call History
•
International Call Blocking
•
Call Screening
•
Locate Me
•
Call Transfer
•
Make a Call
•
Caller ID Blocking
•
No Answer Call Forwarding
•
Click to Call
•
Safe Call Forwarding
This truly advanced phone system is offered through two packages: AT&T U-verse Voice
Unlimited and AT&T U-verse Voice 250, with options to add additional lines, and more
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(optional) features like Call Trace, no public listing, and more. Besides the low priced long
distance phone service, with AT&T U-verse Voice you have an access to competitive
international calling rates.
Convenient, web-based call management lets you easily control your calling features and
account online, plus AT&T U-verse Messaging lets you combine your Wireless from AT&T
voice mail into your ATT U-verse voice mail, so you have just one place to check all your
messages from home, remotely, or even from your personal computer.
AT&T U-verse VOIP Network working without voice compression is what makes the
difference between AT&T U-verse Voice and any other VoIP phone service provider, because
voice compression techniques can distort home alarm systems. AT&T's U-verse network can
support the bandwidth required to provide high quality Voice, TV and Internet service
simultaneously and therefore does not use voice compression. (AT&T Services)
AT&T wireless service will be an added feature to the bundled package. We offer a variety of
mobile phones to accommodate your wireless needs such as our high quality Refurbish Phones,
GoPhones, the IPhone, the Android, and a nice selection of SmartPhones. AT&T wireless will
provide the best global coverage, unlimited mobile to mobile and also rollover minutes.
(attonlineoffers.com/specialoffers/service)
All AT&T products such as home phones, wireless phones, u-verse cable boxes, and internet
connection boxes will carry the AT&T logo and name. AT&T will also provide a warranty and
will replace any hardware that may have been an inconvenience to the customer for no additional
charge.
- 26 -
The Public Relations department has allowed for the budget to accommodate and will facilitate a
national campaign in the 10 major markets to win back previous customers who have left for
another carrier.
Marketing Matrix
Marketing
Campaign to use
When to use
Time span of
campaign
Television
30sec runs during popular
high rating shows featured
during Primetime hours
During segments 6am to
10am; 7pm to midnight
6 months
Radio
Internet/Online
Newspaper
Outdoor Media/
Billboards
Social Media/Yahoo,
Hotmail
Full Page Ad to run on
Sunday, and Thursday
Edition
On Public Transportation
Results/Measurements
Awareness to the Public
2 -10sec consecutive Awareness to the Public
intervals for 6
months
6 months
Awareness to the Public
6 months
Awareness to the Public
6 months
Awareness to the Public
Promotion
To target AT&T’s Triple Play customer market, we will use several methods of advertising to
win back and pull previous customers who have had prior service within the past 12 months. The
various ways of advertising will be sales promotion, public relations, and direct marketing.
AT&T will combine the traditional media vehicles such as television, radio, and newspaper, also
internet/online utilizing Facebook, and Twitter; outdoor media campaigns which will entail
billboards on public transportation to run for 6 months for each promotion for the next two years
- 27 -
to increase 50% of our sales. Also AT&T will initialize a referral program (word of mouth)
which will offer incentives and rewards for any customer who is willing to share their pleasant
experience they encountered with AT&T, with a family member or someone from their circle of
friends who are not currently AT&T customers.
Promotion Budget
AT&T is very well known is the telecommunications industry; in order to maintain this status it
is necessary to be mindful of the costs of promoting these products in the different marketing
sectors: Television, Radio, Newspaper and, Internet/Online – Facebook, and Twitter.
Networks
Primetime Shows
Cost
Air Time
CBS
The Good Wife,
NCIS, CSI
Celebrity Apprentice,
30 Rock, The Voice
Dancing with the
Stars, Body of Proof,
Last Man Standing
X Factor, Terra Nova,
Bones
$2,000-5,000
18x Daily
$2,000-5,000
18x Daily
$2,000-5,000
18x Daily
$2,000-5,000
18x Daily
NBC
ABC
FOX
(Air Time Academy)
Radio (rates)
Basic Radio Spot
Professional Voiceover
Music Bed
MP3 delivery
Review the script
: 10 second - $100
- 28 -
: 60 second - $200
(Radio Commercials)
Internet
$0.75 pay-per-click
Internet Source
Facebook
Twitter
Cost
$0
$0
How Often
Daily
Hourly
Referrals (Word of Mouth)
Zero Cost
Channels of Distribution
AT&T would primarily utilize the “zero-level channel” (also called a direct marketing channel)
consists of a manufacturer selling directly to the final customer (Kotler, 417). AT&T retail
stores are the only beneficiaries of the product who can offer U-verse internet service and homes
services. The measure is cost effective, enabling AT&T to successfully reach our Bottom Line.
Also customers will benefit from the level of distribution to ensure the highest quality of
products while eliminating the middle man. The products will directly be delivered to the AT&T
retail stores to offer the bundles a reasonable price of $29.99 for each featured service included
in the bundle package; or $44.99 if ordered separately.
Marketing Research
AT&T research methods will entail interviewing and survey employees who may utilize the
service and can speak on any issues that may occur. Also AT&T will periodically survey current
customers as well as customers who have their services and are quite satisfied.
- 29 -
Level of Distribution
Manuafacture
AT&T Retail
AT&T
Stores
Website
Customer
Customer
- 30 -
Controls
These controls are to measure and facilitate the marketing strategies designed for AT&T. AT&T
will follow the objectives of the marketing plan to ensure that all milestones are implemented for
a successful outcome. We will set by AT&T during the planning stages and r e-evaluate
objectives and marketing strategies to build a customer base. If there are corrective measures we
will address them with marketing managers and other levels of management.
Implementation
AT&T strategic marketing plan is implemented to address the former customers of AT&T
products and services. Marketing and advertising in the 10 major metropolitan markets;
campaigns set to runs 6 months per media vehicle for two years. The advertising and marketing
strategy will consist of television, radio, newspaper, outdoor media, Internet/Online and Social
Media to pull in and build our customer base.
- 31 -
Marketing Organization
Vice President of
Marketing
Director of
Product
Marketing
Director of
Marketing
Communications
Product
Manager
Public Relatons
Research and
Competive
Analysis
Advertising
Creative Services
Marketing Sales
Force
Contingency Planning
AT&T will use two control methods to monitor the sales and resulting success of this marketing
plan. The first method is the Annual-Plan method. The annual-plan method will help to
determine whether the planned goals are being met. To approach this plan we will analyze our
sales, relative market share and financial information. AT&T will also implement the efficiency
control plan to evaluate and improve the spending efficiency and impact of marketing
expenditures. The efficiency control plan will analyze the efficiency of the sales force,
advertising, sales promotions and distribution channels. (Marketing Management 13th Edition)
- 32 -
AT&T will conduct an annual marketing audit to examine the marketing environment,
objectives, strategies, and activities, with a view to determining problem areas and opportunities
and recommending a plan of action to improve the company’s marketing performance. This
marketing audit will evaluate any changes in our concerned demographic; any trends of the
economy; the environment; technological advances; the political environment; and any cultural
changes.
AT&T faces certain threats and weakness like governmental regulations, weather damages and
the saturation of the telecommunications industry. In the event that these threats and weakness
begin to affect AT&T and is marketing efforts we will rely on the marketing audit to assess all
challenges and adapt to each situation accordingly.
Conclusion
This proposed marketing plan has been created to effectively market the AT&T Internet, TV and
Voice bundle service. This particular bundle will provide customers with more overall value.
The product features a wider variety of TV channels, superior internet speeds, and premium
quality phone service at a very competitive rate.
Even as the telecommunication industry remains very saturated, AT&T is one of the industry’s
top competitors alongside Comcast, DishNetwork, and Direct TV. AT&T has been able to
capture 26% of the telecom market share. To increase customer sales and ultimately increase the
relative market share AT&T will strategically implement a market plan to entice new customers
with the bundle service that provides more overall value at a competitive rate. This marketing
plan will use a marketing mix that includes traditional channels of advertising: Outdoor,
Newspaper, Commercials, Internet and Social Media. AT&T has also developed a new customer
- 33 -
referral program that would allow current customers to refer new customers to an AT&T service
in exchange for valuable rewards such as 10% off one month’s bill, no taxes added to one
month’s bill or a $50 gas card.
The goal of this marketing plan is to stimulate growth to ultimately increase the customer base
by 20%-25% while retaining the current customer base and to increase market share by 1% by
2014.
We are targeting people between the ages of 30-55 with an annual income of 40,000-90,000.
More specifically we are targeting customers living in the top ten MSAs of the United States.
AT&T will be using a zero level distribution channel which means that manufacturer will sell
directly to the final customer. In order to monitor and make sure that this marketing plan is
successful we will follow two methods of control: Annual control plan and the efficiency control
plan.
- 34 -
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