Marketing Strategies Course: Milestone 3 paper will describe the marketing mix for your project, including product, promotion, distribution, and pricing.

Running head: T-MOBILE 1

T-MOBILE 2

T-Mobile

T-Mobile

T-Mobile is a US-based wireless company that provides wireless services to prepaid, postpaid, and wholesale customers. The company generates revenue by providing its customers with affordable wireless communications services and a wide variety of wireless devices and accessories. T-Mobile delivers its services, devices, and accessories through its owned and operated retail stress and websites. It operates by selling its devices and accessories to dealers and third-party distributors for resale through outlets and third-party websites. The company operates across its flagship brands such as T-Mobile, Metro by T-Mobile, and Sprint.

Company Analysis

T-Mobile mainly engages in the provision of wireless services and devices through retail outlets. In the fourth quarter of 2019, the company recorded an increase of 6% in the total service revenue to a record high of $8.7 billion. In the full year of 2019, it recorded a 6% service revenue increase to $34.0 billion. These results represented the best quarterly and annual performance ever. The company’s branded postpaid revenues increased by 8% year over year. In the same year, the company recorded a 4% increase in total revenues to $11.9 billion in the fourth quarter and increased 4% to $45.0 billion in full-year of 2019. These results were driven by growth in service revenues. As of 2020, the company’s net income in the third quarter of 2020 grew by 44.02%. Within the overall company, T-Mobile has had revenue growth of 6.79%, thus achieving improvement in market share to nearly 17%. According to Bishop (2020), the company added a net total of over 2 million customers in the third quarter of 2020, giving a total of over 100 million customers for the first time.

Marketing Objectives

T-Mobile’s marketing growth strategy is to grow brand consciousness along with its clients and increasing sales. Its primary aim is to increase sales in the market and increase its benefits. The company’s marketing objective is mainly focused on the customers as they strive to ensure that they create a culture that allows them to deliver exceptional customer service (Robertson, n.d.). This involves customer care expansion which will create 7,500 more customer care jobs by 2024 than their competitors (Legere, 2019). T-Mobile also aims at improving conversion optimization through digital marketing by bringing in customers from other competitors. The challenge, however, comes when communicating the new level of service to customers. As a result, the company is focused on obtaining reliable customer data to understand its audience and how customers interact with digital components. Another marketing objective of T-Mobile is to continue leading as the fastest LTE provider. In the last three years, the Un-Carrier’s customers have been most satisfied with T-Mobile’s high quality and fast LTE network. Customers often want the best network and wireless experience; hence, T-Mobile strives to maintain its position in providing the fastest LTE network.

T-Mobile is also aiming at retaining leadership in the postpaid segment. The company’s postpaid segment currently offers a wide selection of smartphone-based unlimited plans and tiered plans. It has around 86 million subscribers, of which 47 million of them are postpaid customers, making it the leading postpaid service subscriber in the market. Its focus is, therefore, to retain its leadership in the segment. The Un-Carrier currently relies on third-party providers and dealers to distribute their products to customers. However, the company’s objective is to decrease its reliance on third parties for service delivery to its customers to attain maximum revenue from their services and sales. The efforts made by the company to reduce this reliance are the closure of nearly 80% of their owned retail stores through the merger with Sprint. This merger will result in the same or better rate plans or lower for at least after 3 years after this merger (Legere, 2019). T-Mobile also aims at avid the price-led competition by offering value-added service. It aims at providing more than just wireless services and devices and accessories, but also online banking with T-Mobile money, home internet, and IoT devices planned to be rolled out in 5 years.

Research on T-Mobile’s Marketing Innovation Strategy

My research is the marketing innovation strategy of T-Mobile Company. My focus on this research is to obtain data on the specific efforts the company is making to address customer dissatisfaction issues. The study will be done within two weeks. The company has been contemplating developing a new approach to address customer dissatisfaction and challenge industry norms. The research identifies ways in which the company will influence and compel customers to act. Research reveals that customers were not happy with how the wireless carrier was working towards meeting their needs. The company is, therefore, making efforts through an activation plan that includes customer experience design and developing a system to track progress and determine performance targets. In any marketing strategy, measuring customer satisfaction and understanding the link between customer and organization performance is necessary (Chenhall & Langfield-Smith, 2007).

This research focuses on how the strategy extends from positioning, messaging, communications to customer experience, and employee engagement. It focuses on the Un-Carrier strategy that implies doing things differently. The primary focus is on what customers want. This includes replacing long-term contracts with monthly plans without long-term commitment. Following the launch of the Un-Carrier strategy, the company has initiated positioning, messaging, communications, and customer experience. From this research, the innovative strategy has been supported by advertising and campaigns. Moreover, this strategy has resulted in T-Mobile gaining more customers at a rate that exceeded those of its competitors.

Target Market

The target market for this research will be T-Mobile subscribers and customers. This target market will include market predictors such as customers gained, sales in services, and devise, and accessories. The target consumer groups will include customers aged 18-50 years. This is because individuals that fall in this age group form the largest part of T-Mobile users, subscribers, and consumers. Besides, the majority of the US smartphone market in that age group already has smartphones and will need to use the networks (Blodget, 2012). Moreover, the younger generation comprising of individuals aged between 18-34 accounts for a larger percentage of sales. This is because individuals in this age group are willing to spend on wireless services, devices, and accessories.

References

Bishop, T. (2020). T-Mobile tops 100M customers, posts $1.3B in quarterly profit six months after Sprint merger – GeekWire. Retrieved December 10, 2020, from https://www.geekwire.com/2020/t-mobile-tops-100m-customers-posts-1-3b-quarterly-profit-six-months-sprint-merger/amp/.

Blodget, H. (2012). Actually, The US Smartphone Revolution Has Entered The Late Innings. Retrieved December 10, 2020, from https://www.businessinsider.com/us-smartphone-market-2012-9?IR=T.

Chenhall, R. H., & Langfield-Smith, K. (2007). Multiple perspectives of performance measures. European management journal, 25(4), 266-282.

Legere, J. (2019, February 22). Building the New T‑Mobile and #5GforAll: T‑Mobile Newsroom. Retrieved December 13, 2020, from https://www.t-mobile.com/news/network/new-t-mobile-5g-for-all

Robertson, G. Case Study: How T-Mobile is gaining love in a category filled with hate. Retrieved December 10, 2020, from https://beloved-brands.com/2019/04/01/t-mobile/.