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TELUS Marketing Plan

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TELUS Marketing Plan

  1. 1. [ ] Please see citations TELUS Team Eccentric Prepared by: Cassie Lang David Lee Ayyaz Mahmood Michael Shu Muchan Zhou
  2. 2. [ ] Please see citations Target market analysis Customer profile: Gen Y Chinese people: Chinese people age 25 to 33 born after 1980 and are more immersed in the Chinese culture than the western culture. The social class of these high end ($50 or more) users are middle class or higher. Values: Chinese consumers value dedication, efficiency, and hard work. These are traits widely accepted by the Chinese community and are taught at a young age. These values come through as high expectations for customer service. Consumers want to feel as if the company is dedicated to them and working hard in order to provide them with the best possible service. They look for fast ability to solve problem professionally and instantly. Chinese consumers are also very competitive with one another. They value personal accomplishments, the feel of importance, and display these beliefs through purchasing the best in class and the more expensive services and products. These products and services then become a symbol of their status. They enjoy limited edition purchases such as a different version of a phone or products signed by celerity as these things further solidifies their vision of “being the best”. Chinese consumers in general value luck greatly. This is reflected on their choice of phone numbers. In china, people go to great extent to obtain a “lucky” phone numbers. Numbers such as 5, 6, 8 or combinations such as 201314, or 588 59898 are extremely popular and are paid for. These numbers sounds similar to Chinese words with the means of love and obtain wealth. Chinese people value the idea of “getting the most out of your money”. They like to purchase from offers that are offered only for a limited amount of time. They want to feel as if they are spending less money than others for the same amount of service. Also, they want to be rewarded for their customer loyalty. As a customer, they want feel as if they have power over their service providers and are wanted and asked to stay through various reward systems. Features such as rewards points, free things and exclusive perks are often preferred. Market Segmentation: The market for Gen Y Chinese consumers is segmented into three categories by age. 25 to 34 years old – young adults These consumers may or may not be married. If they are married; they are likely to have a child under the age of 5. If not married; there is the possibility of them living with their parents. They look for approval and recognition in life. They seek more so, than the older consumers, for challenges, excitement, and newer, fresher things in life. They are likely to update their phone more often and they tend to be more cost driven as their average income is lower than the older consumers. Also, flexibility is very important as they are trying to settle down and seeking for different options before making their decisions.
  3. 3. [ ] Please see citations For phone services, they use the majority of the features. For customer services, they require less assistance as they are more comfortable with newer technology. A service that this market segment need is more direct reminder for billing deadlines since they have less experience in personal financial management. These consumers’ price sensitivity depends greatly on their marital status and whether or not they have a child. Before they have a child, they tend to spend more and save less. After they have a child, with the increase in everyday expense, they become more price sensitive and hope to save more. Generally, they are more price sensitive than children between the ages of 10-17 because they have less disposable income. However, they are less price sensitive than university or post secondary students before they have a child because they have more income. That price sensitivity then increases after the child’s birth and slowly decreases over the years as their income increases. 35 to 44 years old – lower middle aged These consumers are likely to have a family with a child. They are more settled and have on average a higher income than that of the 25 to 34 market segment. They tend to have a more stable job a more routine life. They look for stability in life. They want reliable and worry free products and services. Family and health becomes more of a priority. They are less adaptable to newer technologies, as well; they hope less for the latest products. They want simple, easy to use products and services that they understand and are comfortable with. Also, for phone services, they want to be able to trust the brand since it connects with the potential safety of their children. For Phone services, these consumers are more likely to use more calling and less texting than the 25 to 34 age segment. They are also more likely to use long distance phone services due to work trips or calling relatives in China. This market segment requires more customer service as they need more assistance in understanding the newer technology and services. These consumers tend to be more price sensitive as they understand the value of money and have experienced how difficult it is to earn and save money. Also, Chinese parents have the mentality of saving the best for their children than spending the money yon themselves. They can live without the latest features if it means paying less and saving more for their children. Furthermore, with the increase in expense and responsibility, they become more sensible in terms of personal financial management, thus more prices sensitive. 45 to 64 years old – middle aged This age group of consumers are most likely to be married and have a child who is legally an adult. They tend to have a set place to live, and a routine life. They might be
  4. 4. [ ] Please see citations living by themselves as their children have moved away from home. Within this age segment, the consumers have already chosen or have a preference in which phone providers they are most comfortable with. They are also more prone to staying with that service provider as well as the product that they are using. In other words, if at this stay of their life, they are not a TELUS user, they are less likely to switch over than the other two segments. Stability is very important, so they avoid more changes from their current state. These consumers are most likely to use calling services. For their children who are far from them, they require more long distance service than other users. The support this market segment needs is customer service that teaches them how to use the newer product. At their age, they have a less developed knowledge of the products and their will of figuring out on their own also decreases. Sometimes, it is necessary that they have the support to teach them about new innovation. These consumers tend to be less price sensitive. They have more resources one their children have moved out. Living on their own, they want more so of a stability, familiar and trustworthy service rather than cheaper price. Statistics: The average income of Chinese males within Canada are as of the following: Age Income (in dollars) 25 to 44 34,357 45 to 64 36,577 The average income of Chinese females within Canada are as of the following: Age Income (in dollars) 25 to 44 24,790 45 to 64 23,969 Each year, 30 000[1] new Chinese immigrants come to Canada. There are 317 010[1] Chinese people in Canada, 151 400[1] Chinese people in Ontario, and 125 065[1] Chinese people in GTA. 33%[2] of these people are of age between 25 to 44 years. 22%[2] of population is between 45 to 64. Of all the chinese people in Canada, 58%[2] of them feel that they are still strongly linked to the Chinese culture. Competition Analysis
  5. 5. [ ] Please see citations Table 1 comparison between mobile services that TELUS and Rogers provide TELUS Rogers Shared plans SharePlus Couples & Families/Individuals Base price $55/mo/smartphone $45/mo/other phones $35/mo/BYOD phone *unlimited national talking and texting Couples & Families $85/mo/phone (1GB) $105/mo/phone(3GB) $150/mo/phone(6GB) $140/mo/phones(10GB) *unlimited national talking and texting **extra line $55/month/phone Individuals $45/mo/phone (150 nat. min, unltd nat. after 6pm; 200MB) $60/mo/phone (1000 local min, unltd local after 6pm; 500MB) $67/mo/phone (unltd nat.; 1GB) $80/mo/phone (unltd local; 3GB) $100/mo/phone (unltd nat.; 5GB) Data add on 250 MB $15 500 MB $25 1 GB $30 2 GB $45 3 GB $50 6 GB $75 10 GB $100 Price range Lowest $/phone - 30+15 $50 BYOD, $60 other TELUS not smart phone, $70 smartphone (unltd tlk,txt, 250MB/2) Highest Lowest $/phone (assuming 2 phones on same plan) - $70/phone (1GB/2 phones) Highest - $97.5/phone (10GB/2 phones)
  6. 6. [ ] Please see citations $135 BYOD, $145 other, $155 smartphone (unltd tlk, txt, 10GB/2 phones) Telus offers unlimited national, talking and texting, attracting customers who use their cellphones. The minimum plan for customers buying a smartphone from Telus costs $70/month/phone[3] and includes unlimited talk, text, and 250MB[3] data however, Rogers offers 1GB[4] of data for $67/month/phone and. In this case, Rogers offers a slightly better price to customers due to the unlimited national, talking and texting it provides to customers. However, since Rogers does not provide prepaid minutes to Asia, their customers are forced to look elsewhere for this feature.This provides TELUS with a larger potential market and the opportunity to further expand their market share for the chinese community. SWOT Analysis Strengths Telus has great customer service in Chinese. They have a microsite that is dedicated to Chinese people where if they are not that comfortable reading about information in English, then they can browse TELUS’s services on that site in Chinese. Their customer service is also in both Mandarin and Cantonese. They would be able to talk to someone who can speak their own language to remove that communication barrier. TELUS also offers long distance calls to China. This allows customers to contact their friends and family in China. Now they would not need to rely on the unstable service of VoiP while the price for the calls is not too different. Telus provides the newest phones as well. It creates a sense of exclusivity for these customers, since they always seek for the very best on the market. It provides people with a wider selection of what they want. TELUS has a quick and reliable network coverage. 99%[3] of Canada is able to receive signal from TELUS, which will ensure that people using TELUS will always be able to contact people when they need to. This ensures good quality service, which is very important to our market because they want the very best. Weakness The customer service representatives are not all fluent in both Chinese Mandarin and Chinese Cantonese. This creates some confusion between TELUS and their customers, and also create a bad image for those who feel insulted that their language is not represented in TELUS’s customer service. There is no unlimited long distance calling to China. This will be an issue to those who contact their family constantly when they are in Canada. Because of this, many people will be discouraged from switching to TELUS since they cannot talk freely with their family without having to worry if their minutes are up or not. Since long distance calls are
  7. 7. [ ] Please see citations usually more lengthy than normal calls, it could create situations where someone is on their phone and they run out of minutes. Opportunities TELUS can work with other companies or charities. For example Apple worked with (PRODUCT)Red and was able to make $50[5] million. This would be a great way to show TELUS cares about the community if it worked with a charity group. However, if it decided to work with another company for example, Starbucks, TELUS will be able give out gift cards for every purchase. By partnering with TELUS, Starbucks is also able to receive promotional benefits and customer exposure. For example, Starbucks will be able to reach Chinese gen y consumers with the potential of expanding their market share. In addition, TELUS is the first to offer the newest technology. As a result, this allows for people to experience it first hand from TELUS and creates a sense of exclusivity as well. Moreover, the number of people adopting smartphones are increasing which in turn increases the number of potential future customers. If TELUS is able to offer the newest devices exclusively or at a cheaper rate, there will be an increase in the number of new users when a new device is introduced into the market. Threats One of the biggest threats are from competitors that offer cheaper rates. In addition, brand loyalty is a big threat to the company because people can leave with ease due to the low costs of switching to another company. These two points together may cause people to switch to another provider. Other companies may provide better Chinese services than TELUS. This could draw away the chinese market from TELUS because they would feel more comfortable with a company that understands their culture better. Marketing Strategies Important dates ● July 1st Launch date of the YouTube InStream Campaign ● August 31st End Date of YouTube Campaign ● September 1st Launch Date of TTC Campaign ● Oct 31st End Date of TTC Campaign ● Nov 1st Start Date of Google AdWord Campaign ● Dec 31st End Date of Google AdWord Campaign Media Marketing Campaigns YouTube Campaign
  8. 8. [ ] Please see citations The YouTube campaign will be 2 months long starting at July 1st to August 31st . The amount of people we are planning on targeting is 150,000 from the GTA. The YouTube ad system is based on TrueView, a system that will charge money based on how many people actually finish viewing the ad. The price per view is $0.30, which is considerably cost efficient compared to Google Display Network ads, which are $1 to $1.50 a click. At this price range. we are able to get across 150,000 people by using $45,000 on YouTube ads The amount of $45,000 is advised because with that, TELUS will be able to show 150,000 people in the GTA about their promotion. There are only 125,000 Chinese people between age of 25 - 33, so we could potentially target all of them in one campaign. However, that is not very likely as other people will view the ad as well. We are hoping to attract ⅓ to ½ of those Chinese people in this campaign. The ad on YouTube will consist of informing people of a promotion that TELUS will be conducting in the near future. This promotion will be discussed in detail later on. The estimated effectiveness of ads on YouTube is around 1% of the people who finish watching the ad will take action according to the ad. This campaign may ultimately help gain 1,500 new customers to TELUS without counting the spreading of the promotion by the word of mouth. The cost of acquiring a new customer through this method will be $30, not including the offers from the promotion. TTC Ads The TTC Campaign will start right after the end of the YouTube campaign, starting on September 1st to October 31st . The positioning of these ads will mainly be in the North York and northern Scarborough area, where there is a lot of Chinese people living there. TELUS could post 50 ads in that area to gain more popularity among the Chinese community. The cost of putting up 50 bus shelter ads is 36,250 per month. This includes $650 per spot on the bus shelters and $75 per board to manufacture them for 4 weeks. The poster that we would be putting up will mainly focus on the customer service part of TELUS and show that they care about their customers. It can also be a poster showing long distance calling to another country. Google Ads The third part of the campaign will be published on Google AdWord. The keyword we are mainly focusing on will be smartphone. The lifetime limit for this campaign will be set at $50,000. Depending on how many people bid on the same keyword, the price could range from $0.50 to $2.00 per view.
  9. 9. [ ] Please see citations The paying system for Google AdWord is very similar to YouTube’s TrueView. Only when a person actually following the link to its source will TELUS be charged if they decide to use this method. This type of campaigning is more expensive than putting an ad on YouTube, but it is more reliable and more trustworthy. Promotions Free Phone Giveaway One way to promote TELUS is to have a contest where the first 10,000 people will have a chance to win a free phone if they switch their carrier to TELUS. 50 of them will be able to choose from the Smartphone or the iPhone section on TELUS’s website. 100 people will be able to choose a phone in any of the Smartphone Lite categories. The total amount of money allocated to the Smartphone category will be $40,000. It will be able to cover almost all of the 50 people getting Samsung Galaxy Note II. Another $50,000 will be dedicated to the 100 Smartphone Lite prizes. Giving prizes based on amount of people joining TELUS If 40,000 new customers join TELUS within a month starting after a set date, then all the new customers will be able to receive $100 of bonus TELUS store credits. Not all of this will be provided from the budget of $500,000. If TELUS is willing to have this promotion then they can provide this service themselves. Other Events Special Event Dates July 7th holiday (valentines day for Chinese people) – August 13th 2013 August 2nd for 2014 Mid autumn (mooncake) 2013 Sept 19th 2014 Sept 8th Chinese National day October 1st to 7th July 7th (valentines day for chinese people)– August 13th 2013 August 2nd for 2014 Two weeks before this day TELUS will give away custom made cases which they purchase beforehand. These cases will be custom made skins that follow the theme of love. They cases will exhibit the relationship between the phone owners. This will be a great way to bring in Chinese customers because it is a very big thing between asian couples and it would make a great gift on this day. The prices of the cases are given in the link below. case.html
  10. 10. [ ] Please see citations However, you can give away custom made cases with your animals on it after July 7th . In store events In order to attract people to the TELUS stores, several stores will host an event at the store. For example, in the summer they can host a barbecue or give out ice cream. Other companies like CIBC host a barbecue every summer which attracts a crowd of people every year at the bank. This will be a great opportunity to introduce people to the great services and plans provided by TELUS. In addition, this will give a new image that they play an active role in the customers community. Charity It is a great way to advertise the brand and change the perception of the company to a more positive light. As stated before Apple made $50 million from partnering up with (PRODUCT)red . From this example, we think its a great way to advertise the brands name and enhance the its image. Raffle There will be a time span of 2 months for when you join TELUS you can enter a raffle for joining. The prize will be a smartphone and we will give away small prizes such as phone case. Sponsor chinese competitions (singing and beauty) TELUS will be sponsoring 2 chinese competitions one will be a singing and the other will be a beauty competition. This will get TELUS’s name known and again give people different perception of TELUS other than just a phone service provider but, one who cares about the community. Citations [1] TELUS Communication Company [2] Government of Canada, . N.p.. Web. 8 Aug 2013. < debut-eng.html>. [3] TELUS Communication Company, Initials. N.p.. Web. 8 Aug 2013. <>. [4] Rogers Communication, . N.p.. Web. 8 Aug 2013. <>. [5] Apple Inc., . N.p.. Web. 8 Aug 2013. <>.