Networking market is a huge market in UK. We talk about 74 million mobile connections that permitted to make 99 billion outbound calls in 2007. And the market grows by an interesting proportion, as shows the 91% rise of the number of minutes between 2002 and 2007…but these features imply a high competition, with important range of medium to differ and compete.
02 and Vodafone are the biggest networks, but T-Mobile stays as one of the largest, in the UK and at the worldwide level. T-Mobile is a mobile network operator headquartered in Bonn, Germany. It is a subsidiary of Deutsche Telekom and belongs to the FreeMove Business alliance.
Two big offers are presented by the market: PAYG (Pay as You go) that allows buying minutes periodically, without contract, when Pay Monthly is made for contracting on 18 or 24 months against a larger range of services. But both have their own targets.
The competition has created a high proportion of agitation, people backing out from an offer to switch to another to obtain benefit of all the rewards and other attractive offers. This rate (about 10% for T-Mobile) is one of the biggest points of research for the following years.
We'll work to reduce the number of customers leaving for another network by 20,000 in year one and make recommendations on how to sustain this beyond the first year. We'll plan to encourage existing PAYG and Pay monthly customers to sign up and engage with T-Mobiles' loyalty offering. Then, we'll develop a complete marketing strategy before developing a communication plan. Finally, we'll position the whole strategy.
[...] Thus, Mobile could attract new consumers; mostly Pay monthly contractors, from competitors' subscriptions. Contracts tend to constrain the consumers to be ‘member' of such a company during the covered period (often 18 or 24 months), and can only change if he pays the months left. The cost being important, this is a way to discourage consumers to defect but T-Mobile can propose to cover the costs, to attract them, if the consumers agree to a contract for a more valuable contract on 24 month basis. [...]
[...] It would be a real gain of image for T-Mobile, with not much cost because gifts are chosen amongst low cost products, or partnerships (co-branded company trying to develop its awareness through the market) or unsold products for example. Frequent sales promotions: T-Mobile stores should promote sales promotion, to give a unique sense to the offer. Limited offers are well-known to attract customers. now and receive this free gift' or PAYG Nokia Side-kick for only special price ends 31st January' are some examples to what we propose. These kinds of offers boost the visits into the stores and permit to sustain a constant offer to retain clients. [...]
[...] Response mechanism is made upon 3 solutions. Either the owner of the message answers directly by sending back a SMS/MMS, or by following a call number (free number to obtain a T-Mobile's contact). TV: every day, on a targeted channel, at strategic moments like before a teenage movie, if the goal is to promote new top up cards. The response could only be directed if there is a number or address inserted into the message. Otherwise, response is not easy to measure but has long term impact on the visits. [...]
[...] For example, teenagers would be glad to choose PAYG T-Mobile in order to have free calls during the weekend, to call friends. But the company would like to acquire new competitive products to retain its customer, by developing a real loyalty policy that does not really exist yet on the market. It would like to go on a larger scale. For that we'll suggest some ideas for potential rewards, to improve the offer, defining it as being totality of what we are offering to the customer and what we expect back from it' (Tapp p.261). [...]
[...] So it is more about PAYG customers and the prospects. Press and inserts: big national press has excellent presence in the UK. For example, The Sun is read by 8 million people, which represents 20% of the population Media plan Internet: to drive people towards www.t-mobile.com , we need to advertise. For that, partners' sites have to be chosen, in accordance with targeting position, to place banners, and also on the key portal site where the influence is bigger. Search engine, such as Google, Yahoo or MSN, are primordial and a top position on it is required, plus adverts on it. [...]
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