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This report will include an in-depth analysis of the marketing management & strategy of TPG telecom. TPG is one of the largest telecommunication service providers in Australia. In this report, a brief description of the organization and marketing orientation of the organization will be analyzed. Further, it will include the situational analysis of 5 C’s, swot analysis & pestle analysis. A marketing research will be analyzed which will provide solutions for issues in the marketing of the launching of the product. And lastly, marketing strategy will be developed for the overall organization. Telecom industry is highly competitive industry and marketing strategies are essential for sustainability & growth of the respective organizations. The main competition in the telecom industry is regarding gaining market share. One of the methods to analyse the business performance lies in the market share (Moghaddam & Foroughi, 2012). Therefore the development of market strategy will largely depend on ways of increasing the market share.
Brief Description of Organisation
TPG Telecom Limited
TPG is the second largest Australian telecommunications and IT Company. Its headquarter is located in Sydney, Australia. The organization provides a diverse range of communication services to its customers such as internet access, networking, OEM services, mobile phone services and accounting services. It has second largest fixed broadband customer base and it is moving forwards to become leading provider of NBN services & in superfast broadband services. The organization is in its growing phase and it experiencing increasing revenues since few last years. The organization is working on the effect operating cost model with expertise management personnel to spread its wings across all over Australia, New Zealand, the Philippines and South Africa.
Telecom industry is a fastest growing sector. With the advent of providing better & secure technology facilities, numerous organizations are fighting to achieve greater market share. Though Telstra continues to dominate the market following by TPG telecom, Optus and Vodafone are there on the competition list.
Vision Statement- the Company’s orientation is towards providing Fast, Reliable & Cost effective Communications to its customer base. Organizations want to improvise the overall communication & IT services in Australia by providing effective telecommunication services at affordable cost for its multiple users.
Marketing strategy- TPG is second largest telecommunication service provider after Telstra. With the increasing competition, for survival and for increasing market share, it is making marketing strategies.
1. To launch NBN services to provide unlimited broadband packages.
2. The organization is focused on to creating its own network capacity for reducing the cost of sending traffic across all the other network, this strategy will substantially increase the operating margin.
Products-The organization mainly provides fixed-line broadband services, provides voice, internet & data solutions, fiber optic assets & increasing network infrastructure.
Analyse each 5C’s of organisation
With the advent of advancement of technology, telecommunications has always been a growing sector. TPG telecom marketing analysis is done through the following models and theories-
1. Acquisition of PIPE network & AAPT, this has created a strong base for the massive creation of network infrastructure and will increase its fixed broadband infrastructure nationally & internationally.
2. Launching of NBN services which will provide unlimited broadband packages at affordable cost.
3. Efficient quality services & a wide range of customer including from small & medium enterprises to government sector.
4. Initiation for providing services across the border will be a competitive advantage for the company.
Lack of proper brand portfolio.
1. Increasing need of better network infrastructure for improvising the flow of data.
2. Increasing business needs for networking solution has enhanced the scope for the organization.
3. National Broadband Network (NBN) will provide ample of opportunities to the organization and will help in the sustainability & growth of the organization.
4. Telecommunications and IT services, across border such as in New Zealand, South Africa, will widen the scope.
1. Increasing competition such as Optus, Vodafone
2. Telstra is still the number one telecommunication company in Australia.
The organization’s main customers are residential customers, small & medium enterprises, government, large corporate enterprises and wholesale customers. It is striving to increase its customer base by providing solutions to respective customers.
The collaborators required in the implementation of the process are retailers to whom the connections are given for fulfilling the customer demands. These retailers are ultimately responsible for selling the connections of the customers and in increasing the revenues for the organization.
Telecommunications & IT are the utmost requirements of today’s time. With the increasing advancement of technology & great potential of revenue, this sector has gained huge importance in the last few decades. The primary competitors of TPG telecom limited are Telstra, Optus, and Vodafone, Amaysim etc.
For instance- Amaysim, the mobile service provider, has planned to indulge in the fixed broadband sector. Currently the following (as shown in the pie-chart) are the existing customers of Amaysim, who are using different fixed broadband providers. The entrance of Amaysim will disturb the existing broadband connections of TPG telecom sector.
Though the sector is highly competitive, but due to potential demands and high revenue sector this sector is quite potential for the entrance of newcomers. But with the high capital cost, a large amount of risk, the entrance is limited and so the competition.
Competition is highly engrossed among the telecom companies. And increasing competition has posed a serious threat in front of the organization. Need to provide affordable products/ services, great quality, better network services are the few areas which need to be looked upon.
External affecting factors-
Technological factor- telecommunication sector is highly influenced by the technological factor. Technology keeps on changing and latest technology automatically replaces the older one. Better optic fiber for faster travel of data and reduction of network traffic, better mobile services quality etc. since it is the most dynamic sector, it keeps on changing (Venkatram & Zhu, 2012)
Social factors- Consumers are the prime factor for any organization. Changing social preferences & needs leads to changes in the supply mechanism. In the telecom industry, customers main requirement are high speed, faster internet services, cheap cost etc.
Market research & analysis
Market research is the set of activities conducted for getting information regarding a potential demand of a product or identification of marketing opportunities for a particular brand. The market research includes the collection of information through various research means such as primary as well as secondary research. This research helps in the decision-making process & in the evaluation of various factors for the successful launch of the product.
Primary survey- According to Driscoll, 2011, Primary research includes four stages such as planning, collecting, analysing, and writing. The methods are observation, interviews, and surveys. While conducting primary research, due ethical consideration must be kept in mind.
The TPG telecom limited conducted a primary survey, whose primary concern was to know the popularity of telecom organization among the users and emerging changes in the sector. Also, to know the changing preferences of customers in telecommunications and IT services. In the survey, the customer mainly includes the business customers, whose primary requirements are of fixed broadband connections. This survey will help to know the possible opportunities for our fixed internet broadband connections.
Customer needs- through the survey, the organization came to know about the needs & preferences of the customers, the survey showed that the customer mainly requires high internet speed, at an affordable cost. Internet fixed broadband connections are mainly required for the business processes and there is quite substantial emerging requirement for faster internet connections for the smooth working of the business.
Potential threat- the survey presented that the potential threat is from “Telstra”. Telstra still has the maximum market share and is the number one choice among the population. Therefore, to combat the threat, successful implementation of the marketing strategies needs to be done.
Changing context of business- the survey has also shown the changing trend among the business pattern. The customers has diverted from the Telstra fixed connection to other connections that are providing better speed at lower cost, such as: -
Role of collaborators-
Collaborators include retail supplier of fixed connections, those play a key role in the supplying process of the broadband connections. The survey showed that the importance of collaborating services for the customers. Organizations whose retailers provides best services in lining & fixing up the broadband connections are most preferred by the customers. As per the survey, Telstra & Vodafone topped regarding the collaboration services.
Opportunities & threats in the fixed broadband connections- through the survey, customers expressed their dire need of fast & reliable internet connections for solving their business commitments. It was analysed that there are ample of opportunities for cheap & effective broadband connections. But with so many competitive organizations, the attraction of competitive customer seems to be a great threat for TPG.
Developing marketing strategy
Market segment & positioning of brand-
Market segments denote to the identification or segmentation of the potential buyers from the whole set of population. The marketing strategy is planned to keep in mind the market segment (Tynan & Drayton, 2010). According to Lynn, 2011, for successful marketing strategy Segmentation, targeting and positioning (STP) is the best method. In his words, an organization can gain a competitive advantage by segmenting its market and direct marketing activities towards that particular target by appeal them through brand positioning.
Market segmentation is an important part of the marketing strategies for successful completion of the objective.
Potential Market segment
According to Yabs (2014), Companies have realized that is not possible to appeal to entire population because of the varied interest & preference. Therefore, marketing strategies need to be developed to appeal the right customer. In this segment, an analysis of who buys what and why any product is bought by the customer is analyzed.
The objective of TPF telecom is for providing better networking solutions to businesses and for increasing its share in the fixed broadband services to customers. Therefore, the target customers for it are small- medium business enterprises, large corporate, residential users. Business clients are the major focus of the organization. The premium customer will help in boosting the business and bring revenues to the organization.
According to Hassan (2012), in the competitive scenario, it is critical to know the value statement of the customer towards a product. Organization’s investment & production decisions are mainly reliable on the customers changing value statement. Value proposition is the valuable feature of a particular brand which an organization promises to its customers.
After the acquisition of AAPT & PIPE network by TPG, the network cable infrastructure of the organization has grown substantially & has achieved high-class quality in terms of providing services. The world-class quality of the optic fibers, massive network infrastructure, cost-effective models for execution of various services are the few extra-ordinary things. The organization has a large number of technical personnel, around 6000 expertise to handle business needs for networking solutions. All these are the valuable features offered by the organization to its customers.
Brand positioning statement-
In the words of Manhas, (2010), brand positioning means to see if the customers will prefer a brand over another. There are numerous ways to position a brand through offering a specific benefit to a specific target segment at a particular price. Effective positioning strategy solves the issues of customers.
The organization has differentiated its brand through proving better optic fibers and large scale fiber network. The services of the fixed broadband will be provided with the superior quality of cables & wires. Immense network cable structure with the high quality of fiber network will reduce the traffic flow and provide faster internet connection. The fixed broadband connections are provided at the affordable pricing. This brand positioning will be used as a tactic to appeal customers.
Analysis of the STP strategy-
STP marketing strategy is the modern marketing tool for differentiating one’s brand with that of other (Janiszewska & Insch, 2012). The organization has clearly identified a particular market segment i.e. business clients, analysed the value of customers, which is high internet speed at an affordable cost and advanced infrastructure as a tool for positioning its brand in the market.
Developing Marketing Tactics
In the competitive scenario it is indeed required to plan proper marketing strategies and tools for gaining competitive advantage (Pour et. al, 2012). The elements of marketing mix refer to the combination of certain tools controlled in a way to achieve the desired goal. In the words of Alelign et. al., (2014), customer satisfaction is the topmost priority of any organization. Through 7P’s marketing mix strategy, an organization strives to plan its product, pricing, place, promotion, process, physical evidence, and people in accordance with the needs of customers.
The following is the marketing mix strategy for the TPG telecom limited for successful execution of its product i.e. fixed broadband product-
Product-unlimited fixed internet broadband connections will be provided. The quality of the fixed broadband services provided by the organization will be highly developed with the use of high optic fibers, massive network infrastructure etc. will increase the quality of the product. Creation of massive network infrastructure of cables, throughout Australia & also in a submarine will enhance the product quality.
Place-the intention of the organization is first to increase the fixed broadband connection within Australia. Initially, the organization will try to capture maximum market share in Australia. Therefore, firstly commercial sector Australia is considered.
Price- the organization has always used the effective cost model for its network planning, infrastructure etc. Therefore; the pricing will be very affordable and convenient for the organization.
Promotion- the promotional activities will include largescale advertisements through the newspaper, video advertisements on television & radio.
Physical evidence- strengthening the brand position of the network position and excellent customer services & complaints centre will be used as a strategy to attract customers.
Process-this is basically an advancement of internet connection development. It is a cost effective process, for providing high-quality internet speed with affordable cost.
People- the organization has best technical expertise in the field of management for promoting the fixed internet broadband connections. The bundle of people is an important part of execution and implementation of the marketing strategy.
Analysis of the Marketing Mix-
Marketing mix strategy for the successful launch of the new product of the organization has been made in accordance with the market research and market opportunities. The strategy includes the brand positioning of the product and differentiating it from the existing products. Organization has highly relied on its massive network cable infrastructure for high network speed and reduction of traffic congestion. This project has made the connections highly cost effective & faster & reliable.
In the words of Frolova (2014), Promotions indeed plays important role in spreading information & knowledge about the product. As it makes the product familiar with the prospective customers. In context to our organization, it has chosen the large scale promotional activities through advertisements, both video, audio & newspaper advertisement. The organization has also implemented world-class processes for providing superior quality services to customers. The personnel of the organization is also highly expert and technically sound.
TPG telecom limited is second largest telecommunication services in Australia. This report is the marketing strategy of one of its product i.e. fixed internet broadband connection. The report has a brief description of the organization and description of its products. Marketing strategy has covered various aspects such as 5 C’s analysis such as SWOT analysis, customer analysis, collaborators, and context about changing business world. The marketing strategy includes target segmentation, value proposition & brand positioning statement for the organization. A marketing research is conducted for knowing the market before launching the fixed internet broadband connection. And the result of it showed that preferences & needs of the customers, potential threat for TPG, role of collaboration, and upcoming opportunities for the product for the organization etc. the overall marketing plan suggested an outline for the product and methods to make it a successful launch.
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