Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (18)
Similar to Sprint Brand Audit
Similar to Sprint Brand Audit (20)
Recently uploaded
Recently uploaded (20)
Sprint Brand Audit
- 2. Historical Perspective 1899: Brown Telephone is founded in Kansas 1986: GTE Sprint and US Telecom merge 1983: Southern Pacific Communication Corporation acquired by GTE and renamed GTE Sprint 1988: US Sprint completed third transactional route 1992: United Telecom completes acquisition of GTE 1997: Sprint’s customer base grew to 7 million 1998: Began advertising ON-Demand Network (ION) 1999: First ION sell to residents in their home of Kansas City 1999: WorldCom offered $115 billion to Sprint 2005: Rogers Communications Inc. acquires Sprint Canada's, Call-Net 2004: Sprint Corporation and Nextel Corporation 2013: Sprint and Softbank announce completion of merger 2015: Sprint takes over Radio Shack 1984: United Telecom enters long-distance phone market 2000: Sprint backs out of merger with WorldCom Merger Acquisition Expansion
- 3. Target Market LIGHT CELLPHONE USERS • 52 years old and up • Use basic functions only (phone, data, good network, coverage) • Willing to give up getting the highest quality of internet and phone services for a lower prices • Do not require the best quality of services • Do not want to pay more for extra services they may not use HEAVY INTERNET USERS • 14 – 55 years old • Have very high usage data (e.g. >10G) • Choose plans with unlimited high speed data and good rural coverage • Look for the best value since plans with high data limit are very expensive • Feel insecure and annoyed about being disconnected from the internet
- 4. Customers: 142.75 million Revenue: $16.74 billion Target: Affluent young professionals in metropolitan areas POD: Highest quality cellphone service in terms of coverage. Offers multiple services such as TV and Internet Customers: 131.81 million Revenue: $14.91 billion Target: Young, white collar families in and around metropolitan areas POD: Bundle services (internet, cell phone, cable/satellite) offer value when ordered together Merger with DirecTV creates synergy by offering unlimited data for streaming if you buy DirecTV and AT&T cell phone Competitive Brands Customers: 67.38 million Revenue: $6.89 billion Target: Value conscious consumers who seek uniqueness POD: Act as a disruptor in the market, looking for new, innovative ways to improve and help their customers. This provides excitement around the brand as a whole.
- 5. Current Market Situation Threats: Negative ads from competitors can tarnish reputation Opportunities: The new “contractless” market can incentivize value seeking consumers to switch to the best value network - which many consider to be Sprint. Sprint has been operating at a loss for a while because: - High spending rate on building “network vision” - Low margins in order to offer a lower price
- 6. High internet users For the smart phone user who is increasingly mobile and needs excellent high speed data, without overpaying Sprint is the optimal choice, providing high quality coverage for a fraction of the cost Among top tier cellphone providers Because they offer unlimited high speed data and better coverage in rural areas by focusing on cellphone services exclusively and constantly improving their network
- 7. Light cellphone users For the cellphone user who needs reliable talk, text, and data but is tired of paying for extra services they don’t use Sprint provides basic quality functions while allowing users to opt out of unnecessary services making it the best choice Among top tier cellphone providers Because they offer cheaper plans with enough data and better coverage in rural areas by focusing on cellphone services exclusively and constantly improving their network
- 8. Brand Challenges • 95% of US population already have a cellphone • Customer acquisition comes from convincing consumers to switch from existing service Zero Sum Game • Dependence on price advantage is short term • Lack product or niche advantage Price Advantage Unsustainable • No brand resonance • Little emotional benefits Loyalty Can be Bought
- 9. SoftBank Group Sprint Sprint Wireless Business CapTel HTC LG Samsung Apple PlansPhones Personal Unlimited Plan Family Plan Prepaid 50% Off Plan Share More Plan Boost Mobile Unlimited Plan Wi-Fi Hotspot Plans Family Plan 2 Gigs of 4G LTE Unlimited GIGS International Calling Unlimited Music Virgin Mobile Assurance Wireless PayLo Data Love Data Love + Unlimited Music Parent Company Branded Non Branded Affiliation Radio Shack
- 10. Brand Identity “Sprint's vision to be a world class company, the standard by which others are measured, includes a commitment to developing a world class supplier base that is reflective of the communities we serve.” Yellow was used to differentiate from other cellphone companies Black and yellow part of merger with Nextel Signature ‘pin drop’ Paul Marcarelli; new face of Sprint
- 11. Brand Identity The Store: -open environment -uses mobile app Qminder as a waiting list for customers -goal of store is to allow for a personal experience for the customer The Employees: -all wear black with the signature sprint logo on the left hand side -there to help with the personal experience of each customer
- 12. Consumer-Based Brand Equity Feelings ImageryPerformance Judgments Salience Resonance +well known basic characteristics of service by price, data, customer service, reliability, coverage +included in the core four of cellphone service providers -lack of knowledge in depth of services provided +low price +only cellphone provider with unlimited high speed data -Ideal characteristics (ex. Coverage and reliability) not found in Sprint network +logo and yellow are easily recognizable characteristic of Sprint +”can you hear me now guy” -lack of depth in imagery +high customer service ranking -perceived as a budget brand -lack of trust in ad claims -lack of overall feelings towards the brand -only emotional connections had are negative +low resonance in the market due to logical consumers -people not willing to switch to Sprint even with the knowledge of better quality and prices
- 13. Salience + -Cheapest of the big four Lack of knowledge in depth of services provided One of the core four cellphone providers+ Music Streaming •47.83% Unlimited High Speed Data •65.22% Unlimited Data Roaming •45.65% Unlimited International Call and Text •28.26% Unlimited Call and Text •89.13% Bundle Packages •30.43% Consumer Responses: What services does Sprint provide? X X
- 14. Performance Rank Ideal Sprint 1 Reliability Price 2 Price Data Limit 3 Data limit Customer Service 4 Coverage Reliability 5 Speed of Data Coverage Sprint is the only way I can get unlimited data for my family of 5 without spending a lot. Switching for better coverage would only be slightly better and then I would have to pay extra for going over data limits. “ ” + -Perceived low price Ideal characteristics not found in Sprint network Only cellphone provider with unlimited high speed data+
- 15. Imagery + -Logo and yellow are easily recognizable Lack of depth in imagery“Can you hear me now” guy + “Sound so clear you can hear a pin drop” When you think of Sprint…
- 16. Judgments + -High customer service rank Lack of trustPerceived as a budget brand - Of Sprint characteristics, customer service ranked #3 18% 74% 8% Belief in Current Campaign: Do not believe at all Somewhat believe Believe
- 17. Feelings -Only emotional connections had are negative Lack of overall feelings toward the brand - I don't know what is going on with Sprint. I am so sorry i changed to them, I can't wait for my contract to be over. Service is bad, horrible and almost non existent. 4g does not work, 3g sometimes, even with a wifi in site it is ****. When i need it the most it will drop my calls. I live in Texas and drive a lot to Oklahoma, there is no signal in more than half of the trip. I have heard they fired 300 employees, service is the worst ever. Had to vent. – Customer from Sprint’s online community board “ ”
- 18. Resonance Current Provider Willing to Switch AT&T 10 T-Mobile 0 Verizon 6 Current Provider Willing to Switch AT&T 0 T-Mobile 0 Verizon 1 Current Provider Willing to Switch AT&T 10 T-Mobile 2 Verizon 10 Yes, if it’s the same or lower than my current bill: No, I would not switch to Sprint under and circumstances: Yes, even if the price is higher than my current bill: + -Low resonance in the market due to logical consumers People not willing to switch to Sprint Sprint anticipates by 2018 their new network vision will provide a more coverage at a higher speed than any other network. Given this information, would you be willing to switch under these circumstances?
- 19. Advertising Campaigns 2012-2013 “Everything’s Important” with James Earl Jones & Malcolm McDowell 2013-2014 Framily Plan, with quirky family called the ‘Frobinsons” 2015-2016 Bring in T- Mobile, AT&T, or Verizon bill and we will “Saw your bill in half” 2016 The “Can You Hear Me Now” guy says Sprint is ‘within 1% quality for half the price $709 Million on Advertising in 2015 Consistent emphasis on lower prices over time has evolved to now include product features such as network which is now within 1% of the other big networks. Overall feel of ads is mostly goofy and lighthearted, but does not feel cohesive.
- 20. Product • Service within 1 % of competitors • Unlimited Freedom Plan (data, talk, text) • International plans, hotspots, wifi cards, and accessories Place •Sprint Stores- sell phones, plans, repair, and service •Authorized retailers- sell phones, limited service.. Include: Target, Best Buy, Walmart, Amazon, Mall kiosks, and more Price • 50 % cheaper on most plans from ‘big 3’ competitors • ‘Unlimited Freedom’ talk, text, and data $40 • Lower than ‘big 3’ , higher than pay as you go • Offer frequent discounts on phones to get customers to switch or offer to pay you fees to leave other companies Promotion • Mainly focus on comparison to other brands in advertising • $1.4 billion in ads in 2014 • Focused on features, do not reach ‘emotional’ side of Brand Pyramid
- 21. Recommendations
- 22. Expansion 2016: Providing great cellphone service at a great price 2020: Allowing you to connect to the world Virtual RealityHome SecurityVideo Calling Bundling
- 23. Social Responsibility 3% of all profits go to charity • Different charity chosen every month based on customer votes • Estimated 480 million dollars donated to charity every year The 1million Project
- 24. Line Extension • Urban areas • High data users • Millennial generation Brand Positioning • Extra services and benefits • Higher price point