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Marketing Plan of Mobile Company by mep96543

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									                                                                            T-Mobile




                                                              T-Mobile
                                                              Marketing Plan




Company Address
City, State, Zip
Phone: 123-456-7890
Fax: 123-456-7890
Email: jack@smithroe.com
Web Site: www.company.com
Contact: Jack Smith




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                                                                                                                                                                      T-Mobile




Table of Contents
EXECUTIVE SUMMARY .........................................................................................................................................3
    MARKETING OBJECTIVES ..........................................................................................................................................3
    GOODS OR SERVICES .................................................................................................................................................3
    RESOURCES NEEDED .................................................................................................................................................3
    PROJECTED OUTCOMES .............................................................................................................................................4
COMPANY DESCRIPTION ......................................................................................................................................4

STRATEGIC FOCUS AND PLAN ............................................................................................................................4
    MISSION/VISION ........................................................................................................................................................5
    GOALS .......................................................................................................................................................................5
    CORE COMPETENCY ..................................................................................................................................................5
SITUATION ANALYSIS ............................................................................................................................................6
    SWOT ANALYSIS ......................................................................................................................................................6
    SWOT ANALYSIS SUMMARY ....................................................................................................................................8
    INDUSTRY ANALYSIS .................................................................................................................................................8
    COMPETITOR ANALYSIS ............................................................................................................................................9
    COMPANY ANALYSIS ............................................................................................................................................... 10
    CUSTOMER ANALYSIS ............................................................................................................................................. 10
MARKET – PRODUCT FOCUS ............................................................................................................................. 12
    MARKETING AND PRODUCT OBJECTIVES ................................................................................................................. 12
    TARGET MARKETS................................................................................................................................................... 12
    POINTS OF DIFFERENCE ........................................................................................................................................... 12
    POSITIONING ............................................................................................................................................................ 13
MARKETING PROGRAM ...................................................................................................................................... 14
    PRODUCT AND PRODUCT STRATEGY ....................................................................................................................... 14
    PRICE ....................................................................................................................................................................... 16
    PROMOTION ............................................................................................................................................................. 16
    PLACE ...................................................................................................................................................................... 18
DATA AND PROJECTIONS ................................................................................................................................... 19
    PAST SALES ............................................................................................................................................................. 19
    SALES PROJECTIONS ................................................................................................................................................ 20
ORGANIZATION ..................................................................................................................................................... 20

IMPLEMENTATION PLAN ................................................................................................................................... 21

EVALUATION AND CONTROL ........................................................................................................................... 22

APPENDIX A: BIOGRAPHICAL SKETCHES OF KEY PERSONNEL ........................................................... 23

APPENDIX B: SUPPORT MATERIAL ................................................................................................................. 23




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                                                                                              T-Mobile




Executive Summary
        T-Mobile will begin offering a new plan called the Sports Fan Plan targeted at the sports
enthusiast. The plan provided by T-Mobile will require a partnership between the hardware
provider Sharp Electronics and the content creator. Sports Illustrated. The product will be a
combination of a Sports Illustrated branded handset and a service plan that allows the subscriber
to receive customizable sports information. Introducing the new service will only require a few
moderate investments into new infrastructure and staff, the cost of which we believe can be
recovered in just a short period of time. In order to attract new consumers into the market T-
Mobile will launch an aggressive marketing campaign through print, radio, and television that is
squarely aimed at our target market. By implementing this new service we hope gain greater
market penetration by providing a service that a relatively large niche group will be interested in.
Marketing Objectives
          T-Mobile will offer the Sports Fan Plan to allow consumers to stay connected to what is
important to them by offering both the capability to connect to people using voice services and
connect the sports information that is important to them by using advanced cellular network
technology. As we begin to offer this new service to cellular phone subscribers we are looking
to fill the needs of a niche group of sports fans that are on the go. We hope to pitch the product
to the public as a trendy product with a powerful service that enables a group of users to access
the data that is important to them. To reach out to the target market of the Sports Fan Plan T-
Mobile will first advertise the most easily accessible group of potential customers which are
readers of Sports Illustrated. The print ads that will be used will be very direct and we can be
sure that the right audience in being reached. Also T-Mobile will utilize billboard adds to target
the people that are on commutes and television ads during games to target another group of
people in the target market for this phone.
Goods or Services
        The new offering from T-mobile will be the combination of a new Sports Illustrated
branded handset and an information service that is provided by T-Mobile and Sports Illustrated
that delivers customizable sports news and videos to subscribers. The handset will be an options
piece of hardware in the Sports Fan Plan. It will not be required to receive the data because there
are many handsets currently available to T-Mobile subscribers. The Information service that is
provided to Sports Fan Plan subscribers will be fully customizable sports news and opinion
articles that have be written and put together by a dedicated team of Sports Illustrated journalists.
Resources Needed
       As the new offer is being organized there will a number of resources that will be required
to make the rollout successful. To provide the Sports Illustrated handset T-Mobile would have to
contract with a cell phone manufacture. This is not a difficult or costly task because T-Mobile
already has good relations with many manufactures. In this case the contract will be given to
Sharp Electronics, because T-Mobile is using this company to manufacture other phones that are
exclusive to T-Mobile. The cellular network that is required to provide the service is already in



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                                                                                              T-Mobile




place. In order to provide the sports data that will be accessible T-mobile will be using data as it
exists on the Sports Illustrated servers. For this operation T-mobile will just need to work with
Sports Illustrated to determine how the information will be safely pulled down into their system.
T-Mobile will be responsible to covering all these costs to enter this new market.
Projected Outcomes
         This project does require some entry costs so T-Mobile will be taking a chance while
building a customer base and a return on the investment. Currently there is only one company
that is offering any service that would rival the capability of the Sports Fan Plan from T-Mobile.
With little other competition it would not take a long period of time after the service are
introduce for the initial costs to be recouped because there are many potential customers that are
not currently using a competing service. This means that T-Mobile could potentially gain many
new subscribers in a relatively short period of time and it is expected that the new plan could
produce a profit within the first two years of operation.

Company Description
        T-Mobile is a division of the European telecommunications company Deutsche Telekom
AG & Co. T-Mobile began offering service in the United States in 2002 after the acquisition of
what was VoiceStream Wireless, a cell phone service provider. Between the years of 1995-2002
VoiceStream Wireless expanded their network by merging with other cellular phone companies
such as General Cellular, Pacific Northwest Cellular, and Western Wireless.
        T-Mobile was the first company to offer a phone package that was built as a solution for
phone service, text messaging, and e-mail with the BlackBerry. This was marketed as a way for
business people to stay connected to the work place through mobile e-mail while combining that
with the functionality of a cell phone. This is the beginning of T-Mobile offerings that combine
cell phone service and a data plan that is targeted at a niche market.
        In the next year, 2003 T-Mobile rolled out another service that was focused on a niche
market. The device that was introduced was the Sidekick which incorporated a large screen for
viewing pictures and a fully functional keyboard for text messaging. The consumers that were
being targeted were teenagers and twenty-somethings that were interested in staying connected
to friends with use of text. T-Mobile also launched a very successful ad campaign to sell the
device that used such celebrities as Paris Hilton, Jeffrey Tambor, and Snoop Dogg.
        After the acquisition of VoiceStream Wireless, T-mobile has become one of the most
accessible networks in the world. T-Mobile service is available in over 185 countries, more than
any other carrier. This offers a clear advantage to subscribers that require service in many
different areas. T-mobile has a huge subscriber base in Germany with over 30 million users and
in the United States more than 20 million subscribers. T-Mobile has also moved into the internet
service provider market making high speed internet available to its customers at more than
27,000 wi-fi hotspots around the world.

Strategic Focus and Plan




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                                                                                              T-Mobile




Mission/Vision
        With the Sports Fan Plan T-Mobile will seek to provide customers a useful service with
the high standards of quality that T-Mobile is known for. The new plan will open a new source
of revenue and allow for T-Mobile to enter niche markets that can be used to gain new
customers.
Goals
        As the new plan is offered to the public we are looking to do many things including
provide a quality product and service that will fit the needs of new T-Mobile subscribers. In the
first year it is important to get the service functioning smoothly to show make the current
customers happy and influence good press so future customers will have a favorable opinion of
the service. Some of the goals that T-mobile will be looking to achieve include the following:
Non-financial Goals
    We are aiming to have 200,000 thousand of the current T-mobile subscribers add this
       service on to their existing plan with in the first year of offering the Sports Fan Plan.
      In the first year of the offering T-mobile would like to have a total of 500,000 users. This
       group would be five percent of the adult readers of Sports Illustrated the magazine.

Financial Goals
      T-mobile will be looking to see the amount of revenue generated directly from the Sports
       Fan Plan to be in excess of 320 million dollars each year.
      To obtain a internal return rate on the financing of 10% over the next 5 years of the
       offering the service.

Core Competency
        The core competency of T-mobile Sports Fan Plan is delivery. This plan will compete on
the way the service is delivered. T-Mobile holds the advantage in being able to deliver the most
reliable sports information service because we own the network that is used to distribute content.
This is important because we have complete control of the towers and the transmission of data to
individual users where other that offer similar services do not own the network used to distribute
data. This is also important because not only will the sports information be delivered quickly but
the phone service will also be of the highest quality and in a broad area of coverage.
        Another aspect of the delivery that sets T-Mobile’s service above the competitors is that
they are providing the data that people want in a very convenient way. The information will be
sports info and news written by some of the most well respected sports journalist in the industry.




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                                                                                             T-Mobile




Situation Analysis


SWOT Analysis
       The SWOT analysis below in figure 1 shows the internal and external factors that affect
how the company T-Mobile functions and what it has to take into account when making new
investments.
                         Figure 1: SWOT Analysis for T-Mobile
  Internal
                                    Strengths                            Weakness
  Factors
  Management            Deutsche Telekom AG & Co. has         Having a headquarters in Germany
                        a very experienced group of           may cause there to be some
                        managers and they have a good         dissonance between what upper
                        understanding of how to manage        level and middle/lower level
                        in different parts of the world.      management believes is the best
                                                              for the product and company.
  Offerings             The offerings that T-Mobile has       T-Mobile does not currently have
                        in the United states are simple       as many niche offerings or the
                        phones that have widespread and       customizable services that other
                        flexible service. There are two       providers are offering.
                        keys phones that differentiate T-
                        Mobile: the BlackBerry and the
                        Sidekick
  Marketing             T-Mobile has put together some        Although they have had some
                        very interesting ad campaigns         interesting marketing campaigns in
                        that caught the fascination of the    the past T-Mobile does not have a
                        public. The key has been the use      large subscriber base in the United
                        of popular celebrities in the         States when compared to other
                        commercials. Most of the ad           vendors.
                        work has been done with
                        television.
  Personnel             The employees of the company          The people that are currently
                        are experienced with the              working for the company do not
                        implementation of cell phone          have the expertise in providing
                        network services.                     sports information which is why
                                                              the content portion will be
                                                              outsourced to the partnering
                                                              company, Sports Illustrated.




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                                                                                             T-Mobile




  Finance               T-Mobile has a large amount of        They are forced to distribute the
                        capital available for use. They       capital to many different regions
                        have a steady source of revenue       and management groups which can
                        from many different sources           cause issues with the accounting
                        making the company quite stable.      for the company.
  Manufacturing         T-Mobile partners with other          T-Mobile doesn’t have control
                        companies for the manufacturing       over how the phones are produced.
                        of handsets.
  R&D                   As a company Deutsche Telekom         The research is on technologies
                        has an infrastructure with            that are not standardized and may
                        advanced technology and they are      not be adopted by the company
                        continuing to develop 3.5G and        which could end up wasting large
                        4G networks.                          amount of money.
  External
                                  Opportunities                            Threats
  Factors
  Consumers/Social Currently sports culture is huge           Cellular phone services that are
                   and many people are so involved            meant for a niche market can be
                   with sports news and the teams             trendy, if the consumers interest
                   that they follow that they make it         change the business strategy can
                   a top priority in their life.              fail.
  Competitive      T-Mobile uses an advanced                  T-Mobiles competitors are already
                   network that many of its                   offering some services that would
                   competitors do not use. T-                 compete with the Sports Fan Plan.
                   Mobile also has a well known
                   trademarked name along with a
                   good reputation.
  Technological    Cell phone technology improves             Because technology is always
                   continually. Whether the                   evolving the a company has to
                   technology is cellular handsets,           keep changing its practices to
                   broadcast towers, or data that is          make sure the competition does
                   being sent over the companies              not attain a great advantage.
                   connections it is always evolving.
  Economic         The current economy is shifting
                   and the consumers increasingly
                   value services over physical
                   goods. Many consumers are
                   willing to pay a little extra to
                   have something brought to them
                   if it saves time.




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                                                                                             T-Mobile




SWOT Analysis Summary
         The SWOT analysis shows that T-Mobile has several different important strengths. One
important thing to note is that T-Mobile does have an experienced management team. The T-
Mobile staff has managed during the introduction of many different services like text and video
so they understand what kind of complications can be associated with the introduction of a plan
like the Sports Fan Plan. It is also a strength of the management team that they have experience
managing T-Mobile services in twelve different countries with over 120 million customers. To
keep all of the networks around world running smoothly is a difficult task and having that
experience only makes the team of managers more proficient at performing their job. One
important advantage that T-Mobile has over competitors is they use a more advanced network
called Global System for Mobile communication (GSM). GSM has the ability transfer data
faster than the CDMA networks of other providers. GSM is also used in almost every country
that has mobile access around the world so it is a convenient option for anyone that travels.
        One of the opportunities that T-Mobile can capitalize on is the fact that they have a well
known trademarked brand name. This can be the most valuable asset to any company. When
considering the fact that T-Mobile has a good reputation they can leverage that position to sell
new services. The key opportunity that T-Mobile will try to be capitalizing on is the huge sports
culture that exists in United States right now. There are many T.V. channels and radio stations
that broadcast sports content around the clock. Along with radio and television media there are
many print publications that revolve around sports news and fantasy sports information. T-
Mobile can try to use this public fascination to introduce their Sports Fan Plan.
       One weakness that T-Mobile has when it comes to the cell phone market is the number of
subscribers in the United States. For comparison T-mobile only has 22 million U.S. subscibers
where Verizon has 55 million and Sprint Nextel has just under 50 million service subscribers.
When selling additional cell phone services it is always easier to sell to current customers so this
is something that T-Mobile has to consider when trying to market and sell the new service.
Industry Analysis
       In 1993 cell phone technology was in its infancy but it was at this time that the first
generation GSM cell phone networks are implemented. Over the next two years T-Mobile,
which was did not have an offering in the United States, accumulated 1.5 million subscribers to
mobile phone service. The total number of subscribers to cellular cellular service in the U.S. in
1995 was 28 million people growing to over 200 million in 2006. In figure 2 there is a chart that
shows the number of subscribers to cell phone in the United States from 1995 to 2006.
        In the U.S. with the current reported figures 219 million people have a cell phone which
is 73 percent of the total population. Experts estimate that the cell phone subscription numbers
have almost reached the saturation point and will soon level off. Which means for the cell phone
companies to continue to grow they will have to find a way to sell additional services to current
customers. So for all cell phone companies the time is now to innovate their business and find
something else that can be sold to consumers.




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                                                               Figure 2: Cell phone subscription patterns

                                         Number of Cell Phone Subscribers in the U.S.

              250,000,000
                                                                                                               Year       Subscribers
                                                                                                            1995          28,154,000
              200,000,000                                                                                   1996          38,195,000
                                                                                                            1997          48,705,000
                                                                                                            1998          60,831,000
              150,000,000
                                                                                                            1999          76,284,000
Subscribers




                                                                                                            2000          97,035,000
              100,000,000
                                                                                                            2001          118,397,000
                                                                                                            2002          134,561,000
                                                                                                            2003          148,065,000
               50,000,000                                                                                   2004          169,467,000
                                                                                                            2005          194,479,364
                                                                                                            2006          219,420,457
                        -
                         1994     1996         1998            2000           2002      2004   2006
                                                                      Year


                       Competitor Analysis
                                At the time the first sports-centric cellular service was announced there were fewer than
                       200,000,000 subscribers to cell phone service in the United States. At that time cellular phone
                       services generated approximately 9 billion dollars in revenue each year. With that much money
                       it is not a surprise that some companies would try to market to specific market segments and
                       obtain some of that money in the mobile phone service industry. These groups that market to
                       niche groups of customers are called mobile virtual network operator or MVNO. Some of the
                       MVNOs that have recently begun providing service are Amp’d Mobile, Helio, and Disney
                       Mobile.
                               These MVNO’s are direct competitors to what T-Mobile is doing in that they are trying
                       to take away T-Mobile’s market share. They are indirectly competing because they are trying to
                       target specific segments of the market as T-Mobile is doing with the Sports Fan Plan. Helio
                       markets their phone as a trendy phone that can do everything from digital organization to taking
                       quality pictures. Amp’d Mobile advertises as the entertainment service of mobile phones with
                       services like live video and audio and also provide song and video downloads for a fee. Disney
                       mobile is marketed to parents that want to keep their children connected and protect them at the
                       same time.
                              While those competitors are targeting specific audiences ESPN mobile is the main
                       competition of the T-Mobile Sports Fan Plan. ESPN’s cellular phone service was introduced to
                       the public in early 2006. The service from ESPN is offers customers information that is
                       provided from a group of ESPN journalists that create exclusive mobile content. They also




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                                                                                             T-Mobile




arrange that along with other espn.com information into a portal that is formatted for viewing on
a cell phone. The ESPN service uses the Sprint cellular network to transfer data and provide
cellular phone service to the subscribers.
        The ESPN Mobile plan requires users to purchase a cell phone that is specifically
branded as an ESPN phone which costs $300. The base plan that is provided through ESPN’s
service is $35 and only gives the subscriber 100 minutes each month, which is a very small
number of minutes compared to the large mobile phone service providers. There is also the fact
that consumer would have to discontinue the service they have to use ESPN Mobile causing
them to incur cancellation fees or leave them with useless hardware. The description of the
ESPN mobile service above shows that there are many barriers to customer signing on with the
ESPN option to receive mobile sports information.
Company Analysis
       Deutsche Telekom AG & CO, the parent company of T-Mobile, is based in Bonn,
Germany. The company is publicly traded and is run by a board of directors led by the acting
CEO, Rene Obermann. Currently Deutsche Telecom AG operates with three divisions fixed
network, mobile, and business communications each provides a general type of services to
customers. Deutsche Telekom AG & CO is one of the largest telecommunication companies
with over 80 million customers worldwide. They employ over 30,000 people and have revenue
of $79 billion each year.
        In the United States Deutsche Telecom division is located in Bellevue, Washington. The
U.S. division was born when Deutsche Telecom acquired VoiceStream Wireless to form T-
Mobile USA. The United States division provides service to 22 million subscribers and the
services that they provide to customers are not limited to mobile voice service. They provide
both SMS text messaging video transmission over the cellular phone network and video or song
downloads from central servers. T-Mobile has also been an innovator in the way people connect
to the World Wide Web by introducing mobile internet to customers through wi-fi hotspots and
also through the 3G cellular networks.
       In the past the company has had success in introducing products with a lot of buzz around
them. Recently T-Mobile teamed with a Korean manufacture to produce the Sidekick. The
Sidekick has become very popular in the 14-24 year old age group because of its unique focus on
web browsing, sending SMS messages, and the amount of exposure that the phone has received
because of celebrity usage.
Customer Analysis
         The customers that will be targeted with the Sports Fan Plan is a relatively defined group.
It is easy to identify that the target will be males that are between the age of 24 and 42. There
are younger males that we expect to target with advertising but based on research we do not
believe that the younger groups are not spending their money on cell phone bills. They are likely
still influencing the purchase decision, however, not with money so they must be targeted in a
different way. The median income of our targeted group of customers is $72,000 with a range
from $35,000 to $127,000.




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        The target customer’s primary hobbies revolve around sports. The primary subscriber in
the group is going to be people that follow sports in print or television media or play a lot of
sports and are fans of the local teams. Each group wants to have different types of information,
the group that follows all aspects of a sport will be interested in the detailed analysis of teams
and individual’s statistics. They will desire to have access to tools in a web browser that allows
them to manage their fantasy league sports teams. The other group is people that are interested
in having the ability to learn more about their sport of interest. They also require accurate
information about the sports teams that play in the local area along with attention grabbing
information like analysis of off field exploits of their teams players and video of game highlights.
       It will be important to specifically target these consumers with ad campaigns to inform
them that this new service is available. It is also important to highlight that the service is
customizable to suit what we believe are the needs of our primary customer groups.




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Market – Product Focus
       This section provides the goals that T-Mobile expects to reach in the near future and
describes who is going to be the targeted customer in advertising campaigns.
Marketing and Product Objectives
         T-Mobile will be looking to use its valuable brand name to associate the quality services
that it has provided in the past with this new sports information service. In the process of
pushing this new service out to the public we will be looking to both increase the revenue from
existing customers and entice new people to subscribe to T-Mobile service over a competing
provider.
      Current customers: It will be important to the success of the plan to get subscribers of
       current generic cell service plans to add the sports data access on to there plans. We will
       look to get 300,000 current subscribers to add this additional service within the first year
       of .
      New customers: It is the goal of the company to get 200,000 new customers to subscribe
       to T-Mobile service with the primary purpose of using the Sports Fan Plan in the first
       year of the offering.
      New Handset: With these services it is not required but we will make available a new
       Sports Illustrated branded handset and expect that approximately 100,000 of the plans
       subscribers will purchase this phone with their service.
      Revenue: When the goals for desired number of customers are met this will provide $72
       million in new revenue each year for T-Mobile derived from the sports data service
       alone.
Target Markets
         The target market of the T-Mobile Sports Fan Plan will be single males between the ages
of 24-32 with incomes ranging from $35,000 to $127,000. This group is concerned with sports
and it is also important for them to show that they can afford gadgets that are trendy and useful.
Our target is a group that works and spends a lot of time away from their home. The second
group in our target includes males that are older and have a family cell phone plan. They may
have a male teen child that is interested in subscribing to the service as well. In this situation the
teen will likely be the catalyst in subscribing to the service and can be an important group to look
at when selecting an advertising campaign.
Points of Difference
        The points of difference are the characteristics that make the T-Mobile service is better
than the service that is offered by the competitors. In figure 3 below there is a table that shows
the differences between T-Mobile and the main competitor.




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                                                                                                T-Mobile




       The barriers to attaining this service are not as steep. For existing T-mobile customers
        they simply have to have one of compatible handsets (the majority of current handsets are
        compatible) and they can sign up for the service.
       The information that is received is highly customizable.
       Information that is available through the network is written and arranged by a team of
        experienced writers from the Sports Illustrated magazine and website.
       The network is managed by T-Mobile and they use the same reliable 3G GSM network
        that is used throughout the nation for standard voice services.
                                    Figure 3: Service Comparison Table
Good/Service                T-Mobile Sports
                                                               Competing service offered by ESPN
                               Fan Plan
                $12 monthly fee + normal phone
                                                              $35 to $70 monthly fee
Price           service plan
                                                              (required) handset at $300
                (optional) handset at $130
                                                              ESPN is known for good sports
                T-mobile is known for flexible cellular
Perceived                                                     coverage but their offering as an
                service and Sports Illustrated is known
Quality                                                       MVNO does not associate them with a
                for excellent sports coverage.
                                                              reliable cellular service provider.
             T-Mobile has excellent publicity type
                                                              ESPN has connections with people in
Marketing    market campaigns. The trendy products
                                                              sports that they can use to advertise the
Capability   get noticed because of high profile
                                                              cell phone.
             users.
             T-Mobile uses a 3G GSM cellular
                                                              ESPN uses the Sprint cellular network,
Network used network that was designed for
                                                              a 2.5G PCS network.
             transmission of data.
             Sports Illustrated information is
                                                              ESPN data service is provided the
             provided in customizable layout that is
Delivery of                                                   format that the ESPN website is in and
             automatically optimized for cell phone
Data                                                          video is provided similar to the style of
             layout and follows the style of the
                                                              the Sports Center television program.
             magazine.
Management A set of tools that are designed to be
                                                              A subscriber may be able to access
of fantasy   used on the cell phone for managing the
                                                              fantasy league sites in some situations.
leagues      fantasy leagues of the cell subscribers.
             The phone alerts the subscriber when
Customizable                                                  It is possible to receive all ESPN alerts
             the events they select happen from only
alerts                                                        and regional alerts.
             the teams they want to know about.
Positioning
        The Sports Fan Plan is an offering by T-Mobile that is an affordable way for sports fans
to access the information that they want. This service from T-Mobile is offered as optional




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service that can be added on to any phone service plan. This offering is a reliable way to access
customizable information from the best name in the business, Sports Illustrated.

Marketing Program
Product and Product Strategy
         The new offering that will be put together by T-Mobile is part product and part service.
The new phone will be a handset designed specifically to appeal to a male audience interested in
sports. The service that will come bundled with a phone and will be a joint effort between Sports
Illustrated and T-Mobile.
        T-Mobile will contract to have a phone produced that will have the specific capabilities
of receiving text, pictures, and short video clips with audio streams. All of the functions that are
included will be necessary to create a complete sports information service all of which will be
customizable to the users needs. The text reading capability will be used to receive scores and
updates from any sporting event of interest or updates of a particular sport. Phones will also be
able to receive updates about trade information and injury reports from either entire sports or
only preferred teams. Text capability will also be an important feature that will allow for the
user to receive and read through editorial and opinion articles written by all of the writers at
Sports Illustrated the magazine. Having the ability to view pictures on the phone will allow for
subscribers to view the beautiful pictures captured by Sports Illustrated photo journalists.
Pictures can also be used to enhance the experience of viewing team stats and other information.
The capability of the phone to receive video will be important for allowing user to see highlights
from games of interest. The phones capability to receive audio streams will also allow a
subscriber to listen to audio broadcasts of sports events via their handset. These features will
allow the T-mobile to differentiate this product from other phones and gain a competitive
advantage over other cell phone providers.
        The hand set that is associated with the Sports Fan Plan would also be capable of all
phone functions that are considered standard in the cell phone market. The phone and package
would include calling in and out and those call minutes would detract from the total minutes that
the consumer has purchase with their phone service plan, all of the features that are supported
with standard T-Mobile plans would be available with the Sports Fan Plan.
       The cell phone industry itself is in the maturity phase of the product cycle there are very
few people that want a cell whom still do not have one. This fact is why it is so important for T-
Mobile to introduce a product like the Sports Fan Plan it will allow for building of the number of
T-Mobile subscribers by getting people to switch from other carriers.
       The idea of offering a sport centric cell phone data service is in the introduction phase of
the product lifecycle because there really is only one other competitor to this service and that
competitor does not have many subscribers. Because the sports service idea is in its infancy it is
important to inform the general cell phone user base that this new option is being offered by T-
Mobile.




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                                                                                              T-Mobile




Product Class
       This product will offer the same functions of a normal cell phone with the added benefit
of having customizable sports information available from anywhere. The customer will be
looking for a product that will suit their desire to have the information they want at any moment.
This will be provided by the organization of the portal that is designed to be accessed with a cell
phone and the fact that the information that they receive will be all selected by the customer.

Specification of Core and Augmented Product
        The augmented product that is going to be marketed is the combination of the cell phone
and the data service that is offered along with it. Although the Sports Illustrated handset that will
be offered is not required a compatible handset is necessary. So the good that will be offered is
the handset that is sold through T-Mobile. The service that is offered is the cell phone service
from T-Mobile along with the sports information that will come from Sports Illustrated.

Supporting Customer Services Needed
        The support for customers is already in place through the network of T-Mobile stores and
the telephone support that is offered on the T-Mobile service phone lines. There will likely be an
increase in the number of calls that are placed to T-Mobile phone support but the call centers are
already equipped to handle more than the number of calls that are expected to come in because
of this plan.

Branding
        The first that has been done to create a good image for the Sports Fan Plan is to create a
partnership with the best known name in the sports information scene. Sports Illustrated has an
excellent reputation for providing sports information to the subscribers of its magazines. T-
Mobile will leverage this image by using the recognizable name to sell the custom handset. In
advertising T-Mobile will also emphasize that the information is written and prepared by a group
of Sports Illustrated writers. T-Mobile already has a reputation that users believe offers a good
cellular service. T-Mobile will just build on that good reputation they have.

Fit with Product Line
        The tmobile phone fits well with the other offering from the tmobile. The current tmobile
offerings include products that are targeted at general users that want a simple calling plan which
is offered through a low cost plan that undercuts many competitors on price. This is also
accomplished by offering many free handsets when signing on for these cheap service plans.
There is a plan that is targeted toward the teens and twenty-something that want to maintain a
certain image with the T-Mobile Sidekick and accompanying service plans that offer unlimited
text messaging and a large number of minutes. There is also a line of phones that are targeted at
business people. The phones include Blackberries and phones that are combined with PDA’s.
Offering a phone that targets sports fans as a specific group would allow T-Mobile to get their




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                                                                                              T-Mobile




services in the hands of another niche market which is important in an industry where market
share will be a key in the future.
Price
        The Sports Fan Plan will not be an independent plan but rather an add-on to T-Mobile
subscribers’ current plans. Customers that would be interested in accessing the features offered
would need to have a contract for phone service with T-Mobile. The person purchasing the
service would be encouraged to use one of the specific sports handsets but it would not be
required. In order to persuade current T-Mobile customers to add the sports service on to their
plan T-Mobile would make that possible as long as the current handset in use is capable of
receiving and viewing text and video.
        The branded phone would be a mid-level handset that has features as described above and
cost $130. The services that are specifically associated with the sports plan will be added on top
of the customers current service plan for a charge of $12 a month for the extent of their phone
service contract. It is important that the plan is marketed as an add on because this will make it
easier for a consumer, whom did not plan to purchase the Sports Fan Plan, to add this into the
package that they are signing up for. The fact that the plan is an additional service that can be
added to any plan allows for T-Mobile subscribers to upgrade their plan at any time while only
spending a limited amount of money and without incurring any cancellation fees. This will
allow for a relatively small barrier of entry for new customers to enter the market while allowing
T-Mobile to tap into a new market.
Promotion
      Key promotion strategies that will be used to market the Sports Fans Plan include in-store
demonstration, discounts with service agreement, publicity, and advertising.

In-Store Demonstration
        The in-store demonstration is a way that T-Mobile can easily educate prospective
customers to the functionality of the Sports Fan Plan. The facilities to perform this promotion
activity are already in place. There are T-Mobile stores across the United States and in order to
begin this campaign T-Mobile would have to supply each store with a working display unit and
material to educate the existing sales staff on how the phone and service worked.

Discounts
         In order to initially attract customers T-Mobile will offer to new subscribers of cell phone
service one free month trial of the Sports Fan Plan. Also for those customers that are looking to
sign up for the Sports Fan Plan T-Mobile would offer a 3 month discount of 50 percent on the
bill for the plan. These two discounts will encourage people that are uncertain of the new service
to give it a try and when they see how easy it is to use they will likely sign on again in the future
creating a steady stream of revenue for T-Mobile.




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                                                                                             T-Mobile




Advertising
        To inform any prospective customers that this sports service is available there will be one
advertising campaign that explains what the service is. The ads will also give a brief explanation
of the cost, informing users of the value of the product and also where they can locate a T-
Mobile store to see the product demonstration. This campaign would include print ads in men’s
magazines and newspapers and some short TV ads.
        The other part of the ad campaign would include television ads that showcase athletes
using this phone to check game information and statistics. This advertisement would help to
convince consumers that the phone is valuable and used by people who are in the industry.

Publicity
         Publicity has been an important part of the success of the T-Mobile Sidekick. The
Sidekick gained popularity when it was seen in media photographs as it was used by Paris Hilton
when she was at events. To try to duplicate this affect for the phone offered with the Sports Fan
Plan T-Mobile will give free phones and access to the Sports Fan Plan to sports stars that garner
a lot of attention in hopes that they will be seen using the service at public events. This activity
will hopefully generate media attention that will be seen by the target audience at a relatively low
cost to T-Mobile.

Mix of Push and Pull Required
        The marketing efforts for the Sports Fan Plan will be a mix of push and pull strategies.
The marketing will use a pull strategy in that all of the T-Mobile stores will carry the
demonstration units to show off the service. Along with these units that demo the Sports Fan
Plan T-Mobile will provide training to the employees of each store that teaches them about all of
the features that will be notable when showing the product. The training will also encourage the
sales persons of the T-Mobile stores to push the new plan to consumers in the demographic that
was on-lined earlier in this plan. The stores will be stocked and prepared to push the product to
any new customers that seem to be interested but it is also expected that people will go to the T-
Mobile store to find out more about the new service.
        The push that T-Mobile is working on developing with this product will only work if the
consumers are informed and interested. This is what the advertising and publicity are aiming to
do, create the pull from the prospective customers. By advertising in print and on television it
will be the goal of T-Mobile to interest people so that they will seek out a T-Mobile store to learn
what they need to know to subscribe to the service.




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                                                                                              T-Mobile




Advertising Production
       The advertising agency that will be used to make the necessary advertising materials will
be Publicis, the same agency that has produced many other affective ads for T-Mobile in the
past. For the first year of the product it is predicted that the service will generate $19 million.
The total that will be set aside to market this project will be $2.85 million which is 15 percent of
expected revenue. Of that budgeted advertising money $2 million dollars will be offered to
Publicis to create the print, television, and publicity that is necessary to advertise the Sports Fan
Plan.
Place
        The Sports Fan Plan along with the Sports Illustrated handset will be offered in the same
way that all of the current T-Mobile offerings are distributed to consumers. T-Mobile currently
has a network of stores that sells phones and service plans directly to customers. The Sports Fan
Plan will also be offered through the network of authorized resellers that carry T-Mobile phones
and services. The handset will not be sold anywhere as an unlocked phone so it is not necessary
to consider people that will need to purchase the service alone after that phone has been
purchased from an unauthorized dealer.




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                                                                                            T-Mobile




Data and Projections
Past Sales
        T-Mobile has had a relatively stable income over the past 5 years which has increased
from $10 billion dollars in 2000 to just under $15 billion dollars in 2005. The revenue is shown
in a table and graphical form below in figure 4. This is the revenue data for the entire
corporation of Deutsche Telekom AG & Co. so it gives an idea of how the company has
performed from year to year recently.
                                       Figure 4: T-Mobile Revenue Form
                                           Year         Revenue
                                           2000      $ 10,523,000,000
                                           2001      $ 11,934,000,000
                                           2002      $ 12,463,000,000
                                           2003      $ 15,053,000,000
                                           2004      $ 16,720,000,000
                                           2005      $ 14,998,000,000


                                                  T-Mobile Revenue
                                 $18
                                 $17
                                 $16
                                 $15
                      Billions




                                 $14
                                 $13
                                 $12
                                 $11
                                 $10
                                  $9
                                  $8
                                    1999          2001   Year 2003       2005


        The only data that is available for a product similar to the Sports Fan Plan is the sales
figures for that of the competing sports phone that was introduced by ESPN and Sprint. The
program sold 196,000 units in the first 7 month of the offering. The service included purchasing
a plan that was relatively expensive starting at $35 and a handset which was priced at $300. It is
expected that the T-Mobile Sports Fan Plan will be more enticing to consumers because it is
more flexible and does not force many expenses on the customer.




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                                                                                             T-Mobile




Sales Projections
        Based on the sales data of the ESPN phone and the fact that the T-Mobile Sports Fan
Plan includes fewer barriers to subscription a sales projection chart was prepared and is shown
below in figure 5. The sales chart shows that over the next several years the plan will increase in
popularity and accumulate subscribers at a relatively constant rate. The sales chart also shows
that the revenue generate from the custom handset will decrease as the technology used in that
phone become outdated and prices are reduced. In the operating cost column it is shown that as
the network is maintained for a longer period of time the expenses start to decrease because of
technology improvements and management of the service will improve with experience.
                                 Figure 5: Sports Fan Plan Sales Projections
  Financial Elements             2007               2008            2009              2010
  Total Plan Sbscriptions       500,000          1,000,000        2,000,000         3,000,000

  Handsets sold                 100,000           100,000          150,000           100,000
  Revenue from
                            $   6,000,000      $ 12,000,000     $ 24,000,000      $ 36,000,000
  subscription plans
  Revenue from handsets     $ 13,000,000       $ 13,000,000     $ 16,000,000      $ 10,000,000

  Total Revenue             $ 19,000,000       $ 25,000,000     $ 40,000,000      $ 46,000,000

  Operating costs           $ 22,000,000       $ 15,000,000     $ 14,000,000      $ 10,000,000

  Profit                    $ (3,000,000)      $ 10,000,000     $ 26,000,000      $ 36,000,000




Organization
        Currently in T-Mobile the structure of management is a hierarchical structure. At the top
of the management system is the board of directors. Reporting to and working with the board is
the CEO. The company is then divided into regional areas that serve a specified geographical
region. Within each regional office there are heads of each major division within T-Mobile
including, fixed telephone communication, cellular phone services, and internet services. Under
each of those major divisions there is a manager of each major project. For the creation of the
Sports Fan Plan there would be a new position added under the mobile communication division
of T-Mobile’s United State division. The new position will be in charge of coordinating and
evaluating many processes that are required to start this new service. The person in this new
position will be working to coordinate the marketing efforts and making sure the content is
produced to comply with technological limitations. A rough structure of the management system
is shown below in figure 6.




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                                                                                                    T-Mobile




                                  Figure 6: T-Mobile Corporate Structure


                                            Board of Directors

                                                  CEO



                      Europe                Head of the United              Asia
                                             States Division


                Fixed                                                        Internet
             Communication                   Head of Cellular                Services
                                                Services


                                             Manager of the
                                             Sports Fan Plan
              Marketing                                                            Infrastructure
              (Publicis)                                                           Management
                                                      Content for the Service
                            Manufacturing            (Sports Illustrated team)



Implementation Plan
        The Sports Fan Plan will be introduced in 2007 with a press release which should garner
some media attention. The television and print advertisements will begin running during the
NFL playoffs. It is important to introduce the product at an event like this because it has an
audience that contains many of the people in the target audience that the service is expected to
appeal to. Soon after the advertising campaign has begun the handsets and service will be
available at T-Mobile stores beginning with the major metropolitan areas. The initial rollout
would be monitored in these areas to determine how well the product is selling. The initial
rollout will also be monitored to determine what part of the ad campaign is most effective. After
the production of the handset increases it will then be offered in all T-Mobile stores as well as
the authorized resellers.
        The service itself will be offered to all customers when the ad campaign begins. This
service like the handset will be sold through all T-Mobile stores as well as the resellers. As the
services is adopted it will be easy to track the users preferences through based on how they
access the T-Mobile infrastructure. Based on how the service is used it will determine how the
phone is pushed to consumers as the plan is developed.




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                                                                                             T-Mobile




Evaluation and Control
         The in-store displays will be one key feature to the evaluation of the public response to
the product itself. When a prospective customer goes in to the T-Mobile store to see the demo
unit one of the trained T-Mobile staff will be speaking with them and trying to evaluate their
response. The staff member can then relay that information back the corporate offices through
filling out a simple worksheet. This information will be used to help determine the customers
pre-purchase thought process.
        The evaluation of the service can begin as soon as the Sports Fan Plan goes live. When
people begin using the service it will be important to monitor their usage habits because this
information can tell the T-Mobile offices what users like about the service and what some of the
unused or misunderstood features of the service. The evaluation of how customers use the
service will prompt more defined customer response surveys to determine what the customer
would like to see as additional features or what they would like to change about the service.
        The sales in each store of the service and handset will be monitored and organized based
on demographic of the customer signing up and the region that they are purchasing in. These
sales records will allow the T-Mobile marketing group to better target the regions in which sales
were expected to be greater. This data will also allow for T-Mobile to understand if the
marketing is effective with its intended audience.




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                                                                                             T-Mobile




Appendix A: Biographical Sketches of Key Personnel
This section of the marketing plan is where you’ll attach all of the support material that you’ve
referenced in the marketing plan such as your sales projections, etc. Use this page to separate the
appendices from the text. Make certain that you update the table of contents to include the title of
each exhibit in the appendix and its page number.


http://www.instat.com/r/nrep/2005/IN0502105WH.htm



Appendix B: Support Material
This section of the marketing plan is where you’ll attach all of the support material that you’ve
referenced in the marketing plan such as your sales projections, etc. Use this page to separate the
appendices from the text. Make certain that you update the table of contents to include the title of
each exhibit in the appendix and its page number.




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