April 30, 2012
T-Mobile is an American telecommunication service providing company known for consumer focused marketing and business strategies. The company is headquartered in Washington, DC and is the fourth leading wireless network service providers in the region (Rahn & Moritz, 2011). The objective of this paper is to conduct the BIRAC Analysis on T-Mobile and identify a marketing opportunity that would enable the company to attain a yearly 10% increase in its revenue. T-Mobile is a successful company in the telecommunications ...view middle of the document...
The number of consumers lost by T-Mobile in the last quarter of 2010 was 23,000 compared to the consumer level of 33.73 million. Considering the contract bound consumers, who signed a two year contract with the company’s services, with a total loss at about 318,000.T-Mobile stated” the reduction in consumers were due to consumers purchasing prepaid plains compared to contract plans. They also agree that the intense competition in the market has also caused their loss of consumers (Pachal, 2011).
The company believes their problems and links the reason to the unsolved ‘churn’. Currently, T-Mobile is planning to compete with the iPhone and android by aggressively promoting it’s newly launched 4G network services. The managing director of New England Consulting Group, John Ruf said that;
"I think their marketing is pretty good. It hits smartphones and 4G, and they've been growing their smartphone business, which has been a real plus. But I don't think it helps the rest of their business" (Pachal, 2011).
T-Mobile has a growing consumer base in its smartphone business; however, these consumers form 24% of T-Mobile’s consumers. The remaining business of the company consists of consumers using the other products and services available to them that include the feature mobiles and prepaid packages. With this, the company has been losing consumers in the recent periods. (Pachal, 2011)
The Marketing Formula/BRIAC Analysis
Marketing analysis enables the BIRAC analysis to evaluate the promotional strategies of the company and identify the opportunities that would enable the company improves its revenue in the coming period. The following is the Marketing Formula.
M/BD= 4P’s + 3C’s + PLC+ P3+ SWOTT+ Q2 (12/5) (Mac, 2007)
R + E2
M/BD Marketing/business development
4P’S Product, price, promotion, and place
3C’S Customers, cost, and competition
PLC Product life cycle
P3 People: who help, impact, and implement
SWOTT Strengths, weaknesses, opportunities, threats, trends
Q2 Quality and qualifications
(12/5) Integrated marketing channels 12 contacts, 5 face-to-face
E2 Ethics and environment
Product: The main product of T-Mobile is the provision of cellular network service to cellular phone users in the regions of operations. The company deals with different types of cellular phones including Androids, Smart-phones, Refurbished devices, Tablets, etc. T-Mobile offers a range of cellular network plans to users (T-Mobile, 2011-a). By providing a variety of products has enabled the company to attract a large number of consumers throughout the regions of operations (T-Mobile, 2011-b).
Price: The price of T-Mobile services and products vary according to the category of consumers and their needs. For a family package, the company provides a varying range of offers that are available to the consumer according...