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Strategic Project for Telx Inc
Gururaj B, Marta L , Mehtab Singh, Rajni J, Roushelle L, Arunraja N
Table of Contents
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Company Overview
Company Product
Analysis
SWOT Analysis
Opportunities &
Implications
Segmentation
Positioning
Data Analysis
Problem Identification
Marketing Objectives
Strategies
Tactics
Implementation
Budget
Implementation
Company Overview
Telx-Inc., established in 2003, is still developing as a
Canadian broadband internet, telephone, long distance
and cable TV service provider. They look to use
developing innovation of wireless technology.
Telx-Inc. offers high speed internet, long distance calling
to any place in the world and telephone and cable TV of
high caliber. The company services both the residential
and commercial markets
Company Overview
Services - Residential
1. Long distance calling: Telx Access Service gives an advantageous approach to
place long distance calls without hidden expenses, contracts or the need to switch
suppliers.
2. Broadband VoIP telephones: With Telx technology, the Broadband connection
can be used as a phone service without the hassle of replacing the existing system
or changing the current phone number. It empowers voice phone by bringing to
work high velocity Internet connection. A broadband telephone uses the same IP
organize as the Internet administration.
3. High Speed Internet work at paces somewhere around 7.1 and 50 megabytes for
every second. Some rapid internet connection work at up to 100 megabytes for
every second.
4. Internet TV- Telx IPTV offers more than 100 TV channels and content from
Russia and Ukraine 24 hours a day. Using a Set Top Box subscribers can view their
Company Overview
Services – Commercial
Telx offers PBX (Private Branch Exchange) service to enterprises. They have a hosted
PSTN that can be customized based on the customers requirements.
Competitors Price Comparison
Long Distance Call
Country Name/
Telx Comwave Primus
Service Providers
AUSTRALIA
$0.25 $0.19
$0.30
AUSTRIA
$0.25 $0.29
$0.30
BARBADOS
$1.29 $0.27
$0.14
BRAZIL
$0.59 $0.49
$0.30
BRITISH VIRGIN ISLANDS $1.49 $0.14
$0.22
UKRAINE
$1.29 $0.89
$0.10
USA
$0.10 $0.29
$0.50
VENEZUELA
$0.29 $0.19
$0.30
RUSSIA
$0.54 $0.29
$0.50
INDIA
$0.49 $0.19
$0.14
Rogers
Bell
$0.30
$0.30
$0.40
$0.50
$0.28
$0.15
$0.50
$0.31
$0.90
$0.70
$0.54
$0.75
$0.96
$1.29
$0.97
$1.50
$0.45-0.75
$0.98
$1.40
$0.95
SWOT Analysis
Strengths
• Efficient and quick customer service
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service
(All customer queries/complaints are resolved
are resolved within 24 hours)
• Provides 100 Russian and Ukrainian channels free
channels free as promotional plan.
Opportunities
The Ukrainian community has grown 2.5%
grown 2.5% since 2006 and they are the 6th
SWOT Analysis
Weaknesses
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High attrition
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Company website is poor, does not have
not have enough information about plans
information about plans
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Marketing activity is limited to Russian and
to Russian and Ukrainian communities
communities
Data collected but not used
They have no understanding if customers
if customers attrited or lapsed
lapsed
Very limited marketing budget
Threats
Competitors pricing strategy
Massive amount of marketing budget spend
budget spend by competitors
Opportunities and Implications
Issue/Opportunity
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Poor understanding of causes of attrition
attrition
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The Ukrainian community has grown 2.5% since
grown 2.5% since 2006 and they are the 6th largest
Marketing Implication
• Need to identify and address the causes of attrition to
causes of attrition to take full advantage of customer
advantage of customer acquisition opportunities
opportunities
• Focusing marketing efforts on the Ukrainian
Ukrainian community limits ability to attract a much
to attract a much larger and faster-growing mainstream
faster-growing mainstream market
• Database marketing techniques
• Start investing in marketing activities.
activities.
Segmentation
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Segmentation is required to Identify your customers to
generate increased revenue from existing customers while
attracting new ones .
This helps to maximize your acquisition, retention, crosssell and up-sell opportunities
Demographic Segmentation :
Customers aged between 25-45, Canadians and foreigners.
People who live in condos, speak either Spanish, French,
Ukrainian and English.
Income varies from 50,000-100,000 annually.
Segmentation
• Geographic Segmentation:
Currently customers are from
70% Etobicoke & North York
5% Richmond Hill
5% Downtown (Toronto)
20% Mississauga
Gaining more customers from Downtown (Toronto), Richmond ,Hamilton, London
Richmond ,Hamilton, London
Segmentation
• Psychographics:
Strong affinity for community
• Behavioural:
Less adaptive for frequent price variation. Does lot of research before commitment.
research before commitment. Expects lot of flexibility in services and loyalty programs
Target Audience
• For students and professionals who are
unhappy with their current service
providers
• Existing customers (active and inactive)
Positioning
Telx-inc is a telecommunication service provider that offers flexible plans to
people who are in search of high speed internet and long distance calling at
affordable prices
Telx Customer Base table
Year Subscriptions
Active Retention Attrition
Customers
Rate
rate
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
786
1072
1060
1164
1321
987
1020
1172
1096
1224
1152
1232
78
289
350
442
780
414
490
680
690
845
830
1085
Total
13286
6973
10%
27%
33%
38%
59%
42%
48%
58%
63%
69%
72%
88%
90%
73%
67%
62%
41%
58%
52%
42%
37%
31%
28%
12%
49%
The above table is an estimated summary of the annual subscriptions received
and withdrawn since 2003. Attrition rates are falling however acquisition is disappearing.
Data Analysis
Data Analysis
Problem Identification
How to accelerate new customer acquisition?
Marketing Objectives
• To acquire 3000 more customers by the end of 2015
• To differentiate between the lapsed and active customers
• To increase advertising spend by atleast implementing
marketing strategy with higher ROI
Strategies
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Incentivize referrals from active customers
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Focus acquisition efforts on driving traffic to a website that is easy to navigate
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Reactivate dormant customers with special offers and incentives
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Promote the service to the prospects with matched profile - telemarketing
Tactics
Strategy: Incentivize referrals from active customers
Tactic: Email campaign, College campaigns
Strategy: Focus acquisition efforts on driving traffic to a website that is easy
to navigate
Tatcic: Developing Website appearance, Social media Marketing
Strategy: Reactivate dormant customers with special offers and incentives
Tactic: Adding the billing cycle details to the database
Strategy: Promote the service to the prospects with matched profile
Tactic: Telemarketing
Implementation- Email Campaign
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Email Marketing In-house:
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Sending personalized emails to active customers once a quarter asking them
to refer a friend/acquaintance to improve customer acquisitions and build
customer loyalty. The referral will receive 30% off their next billing.
The email campaign will be send to the in house list of (number of valued
customers) valued customers.
The estimated cost for running an email campaign is anticipated to be around
$4740 / year and the expected Response Rate is 1.80%
Implementation- College Campaigning
Conducting campaigns at colleges like George
Brown College, Centennial, Senecca, Humber.
This helps in acquiring new customers and
also creating a new database consisting of
students’ emails.
1. Expected Response Rate 1.40%
2. Expected number of sales 140
Implementation – Website Appearance
Implementation – Website Appearance
Implementation – Website Appearance
Implementation – Social Media
1. Targeting social media website such as Facebook,
Twitter etc. Starting conversations with
customers over Facebook and Twitter.
2. Announcing offers and educating customers
about existing plans on Facebook, Twitter.
Creating polls and surveys once in three months.
3. Targeting professionals through LinkedIn.
4. Brand Promotion Cost $180
5. Creating content for Brand will cost $22
6. Expected Response Rate 0.05%
7. Number of Sales expected 60
Implementation - Database
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Database field collected from customers and stored in
database is as follows:
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Customer ID (auto generated)
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First Name
-Last Name
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Street Address
-City
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Province
-State
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Country
-Postal Code
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Telephone number
-Email
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Preferred language
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Comments (allows them to keep specific notes that relate to specific client
preferences etc.
Implementation – Recommended
Database
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Additional information stored in database is as follows:
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Customer ID (auto generated)
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First Name
-Last Name
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Street Address
-City
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Province
-State
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Country
-Postal Code
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Telephone number
-Email
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Preferred language
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Comments (allows them to keep specific notes that relate to specific
client preferences etc.)
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Billing Information
- Date of subscription
Implementation – Recommended
Database
How the additional fields are used:
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Billing information provides details of customer spending rate (Monthly billing details ),
current service plan and usage.
Spending rate helps to analyse the customer behaviour and by tracking the usage we can
offer exiting plans to current customers and retain them.
Date of Subscription – Comparing the billing information of a customer with this field
helps to identify loyal customers.
When the customer stops using the service, we should bill the customer till they cancel the
customer till they cancel the service. This will help differentiate lapsed and active
differentiate lapsed and active customers.
Implementation- TeleMarketing
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Telemarketing In-house:
1. Create an alert to notify about inactive customers (specify duration, incentive
to come back)
2. Expected Response Rate of 1.10%
3. Number of sales expected 154 with $367.79 cost per response
Telemarketing Contact List:
1. Contacting 50000 prospective customers with 1.50 expected Response Rate
2. Cost per response is $4 with expected sale of 750
Budget