Marketing Plan for Telstra Corporation Limited

This report comprises of the detailed marketing plan for Telstra Corporation Limited. It includes a brief introduction of the organization and the telecommunication industry of Australia. The products and services offered by Telstra Corporation also listed in the section. This is followed by the situation analysis of the current market and the major segments that the organization operates in. The SWOT analysis for Telstra Communication limited is carried out to find out the internal strengths and weaknesses and to figure out the external opportunities and threats that the organization is likely to face.

Marketing Management

Running Head: Report
Contents
Executive Summary........................................................................................................2
Introduction....................................................................................................................3
Company background and situation analysis......................................................................4
SWOT analysis...............................................................................................................5
Marketing goals and objectives.........................................................................................9
Marketing strategy.........................................................................................................10
Segmentation, targeting and positioning......................................................................10
Marketing mix for Telstra Corporation........................................................................12
Implementation plan and controls...................................................................................15
Conclusion....................................................................................................................16
References....................................................................................................................17
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Running Head: Report
Executive Summary
This report comprises of the detailed marketing plan for Telstra Corporation Limited. It
includes a brief introduction of the organization and the telecommunication industry of
Australia. The products and services offered by Telstra Corporation also listed in the section.
This is followed by the situation analysis of the current market and the major segments that
the organization operates in. The SWOT analysis for Telstra Communication limited is
carried out to find out the internal strengths and weaknesses and to figure out the external
opportunities and threats that the organization is likely to face. The external environment
analysis will identify the key opportunities that the organization can take advantage of and
the threats that they need to be prepared for. This is followed by the development of a
marketing plan by making use of the theories and concepts of marketing. The goals and
objectives for the organization will be recommended on the basis of their current
performance and the strategic planning.
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Running Head: Report
Introduction
This report comprises of the detailed marketing plan for Telstra Corporation Limited. It
includes a brief introduction of the organization and the telecommunication industry of
Australia. The products and services offered by Telstra Corporation also listed in the section.
This is followed by the situation analysis of the current market and the major segments that
the organization operates in. Through this analysis a review of the customer needs and the
factors that influence the decision making of the consumers will be analyzed. Financial
analysis of the telecommunication industry is carried out along with the study of the current
position of telecommunication in it. The SWOT analysis for Telstra Communication limited
is carried out to find out the internal strengths and weaknesses and to figure out the external
opportunities and threats that the organization is likely to face. The external environment
analysis will identify the key opportunities that the organization can take advantage of and
the threats that they need to be prepared for. This is followed by the development of a
marketing plan by making use of the theories and concepts of marketing. The goals and
objectives for the organization will be recommended on the basis of their current
performance and the strategic planning. A broad marketing strategy will be developed by
following the segmentation, targeting and positioning planning for the company and a
marketing mix will be created by utilizing each of the constituent element which will help the
organization in gaining a competitive advantage in the market. This report also includes
evaluation and control measures that the organization needs to put into place for monitoring
the progress and achievement of the objective set through this marketing plan serials these
evaluative measures will also help in reviewing the plan and bringing about any changes to it
whenever required (Mozny, 2017).
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Company background and situation analysis
Telstra Corporation Limited is the largest telecommunication organization of Australia.
Founded in the year 1975, Telstra corporation is currently headquartered in Melbourne,
Australia. The operations of the organization include the building and operation of the
telecommunication networks and marketing of voice, mobile, internet and television services
and products. Having a workforce of more than 36000 employees, Telstra corporation is
running 150 subsidiaries headed by the current CEO Andy Penn (Chelimo, 2012).
The customer base for the fixed line services offered by Telstra is more than 9.6 million and
they have more than 9.3 million subscribers of the mobile services across Australia. Your
organization provide basic telecommunication services to the business organizations and The
Homes in Australia and it also offers International connectivity to and from Australia for the
business organizations. Telstra has a comprehensive range of internet and data services and
the organization is also involved with providing advertising and information services acting
as a leading directory in Australia. Television services offered by Telstra are in collaboration
with Foxtel since the organization has a 50% share in it (Jere, 2013).
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SWOT analysis
SWOT analysis for an organization is an interactive framework which helps in assessing the
level of coordination among the various departments of the company and analysing internal
and external environment by identifying the inherent strengths and weaknesses of the
company in terms of their marketing, finance, operation and management function and by
identifying the external strengths and weaknesses for the organization which will help them
in equipping themselves better and developing the plans that will help them in gaining a
competitive advantage in the market. It also helps the organizations to exploit the external
opportunities and utilize the information gained from it to counter the threats while building
further on their internal strength and minimising their weaknesses.
Strengths  Telstra Corporation Limited is the leading telecommunication
Organization in Australia.
 It is a well-established brand it is recognized not just in the country
but all over the world and has attained the expertise over time
emerging as a successful organization having a huge customer base.
 Telstra has registered a superb performance in the new market and
this expansion has allowed the organization to diversify their
portfolio and the revenue streams (Sarah, 2009).
 The free cash flow of the organization is very strong which provides
them the required resources to invest into new projects.
 Telstra register a high level of customer satisfaction which has built
a strong brand equity for them.
 Being operational for more than 40 years, Telstra has developed a
reliable and strong distribution network.
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 Telstra organization has a successful track record of the development
of new products and practicing innovation in product and service
provisioning.
Weakness  The changes in the telecommunication are leading to the reduction in
the market share of the company.
 There are gaps in the product range of Telstra Corporation which
provides less noise is to the customers as compared to its
competitors.
 The organizational structure of the Telstra Corporation limits the
expansion of the company to any adjacent product segments.
 The budget for the research and development of new products is less
than that allocated by the fastest growing organizations in the
industry (Abedin & Ferdous, 2015).
 The organization faces a lot of challenges when moving and
diversifying to other segments.
 The inventory management of Telstra corporation is not optimum
which leads to blocking of the capital.
 There are new entrants coming in the Industry that are directly
challenging the organization leading to the loss in even the niche
categories of the company.
Opportunities  The cost of transportation for the organization is lowering due to the
decreasing oil prices all over the world.
 The core competencies of the organization provide them a strong
backing for expansion in other fields.
 The changing trends in the consumer behaviour and their decision
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making patterns can help the organization in building new revenue
streams.
 The organization can enjoy economies of scale being one of the
oldest player in the telecommunication industry of Australia.
 The new environmental policies put into place by the Australian
government will help in leveling the playing field for all the
organizations and allowed Telstra to drive home the advantage of the
massive customer share (Fadel, et al., 2012).
 The organization can exploit The E-Commerce opportunities by
exploring this platform for sale.
 The mobile application will also at the convenience for the
customers to make repeated purchases and contribute to the increase
in the revenue of the organization.
Threats  The new environmental regulations by the Paris agreement of 2016
may pose a threat to a few product categories of Telstra Corporation.
 The increase in the minimum wages in Australia and in various other
countries will increase the operational cost and expenses for the
company.
 The increasing cost of raw material will also impact the profitability
of the company
 The local distributors are now collaborating and their strength is
growing in some markets which will increase their bargaining power
(Bakeir, et al., 2009).
 The organization and the telecommunication industry requires
continuous innovation which is lacking in Telstra at present.
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 There is an intense competition in the telecommunication sector of
Australia which has led to a decline in the profitability and the
market share of the company recently.
 The changes in the liability laws in Australia and China will expose
the organization to numerous claims of liability by their
stakeholders.
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Marketing goals and objectives
Being a leading telecommunication organization of Australia, Telstra needs to develop an
elaborate marketing, advertising, distribution and pricing strategy which will allow them to
gain a competitive advantage in this industry and sustainably grow and develop in the future.
The marketing objectives defined for the organization for the next one year are listed in the
section.
 To increase the marketing share of the organization for the mobile handset services
from the current 45% to 60% within the next 1 year.
 To increase the total profitability of the organization from AUD 2,710 crores to AID
3,000 crores.
 To develop a strategy that enhances the customer centricity of the organization.
 To invest more in the research and development initiatives to come up with
innovative products and services in line with the customer demands as per the
external analysis of the telecommunication industry (NCY, 2013).
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Running Head: Report
Marketing strategy
In order to achieve the objective stated in the previous sections of the report, the organization
will have to carry out the segmentation, targeting and positioning which will allow the
organization to adopt a focused approach and enhance their productivity while meeting the
customer needs and ensuring the increasing profitability for the company.
Segmentation, targeting and positioning
Segmentation of customers of Telstra Corporation will be done on the basis of the various
demographic variables including their age, gender, size of the family, annual income,
occupation, race, nationality and level of education. The three basic demographic
characteristics that Telstra Corporation focuses on are the age, gender and the annual income
of their customers. Telstra need to carry out the initiative to analyze the demands and needs
of the customers of different age groups and develop the products and services in order to
fulfill them. The organization practices segmentation of their services and the market
segments on the basis of the features of their products offered in the market. The voice
services based plans are targeted towards the people falling in the age group of 40 above
while the young professionals are offered the plans and services that are more concentrated
on the internet connectivity (Team, 2015).
The market of Telstra corporation is highly segmented with people belonging to all age
groups, economic background, genders and professions. The organization is catering to the
needs of all these customers by offering a variety of products and that they can choose from.
The segmentation of the products and services of the organization is done on the basis of the
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rate of users by the customers where the customers are classified into high data using and the
low usage customers.
The target of the customers should also be done on the basis of their usage patterns and
specific products and services should be developed by the company by increasing the
customization in their plans and products to provide the customers a choice and the ability to
make their own plan which suits their requirements. The target segment of Telstra can be
broadly classified into the technological advance and cautious customers and the low uses
customers (William, 2018).
Telstra Corporation Limited has successfully positioned itself as the top telecommunication
service providing organization in Australia. This marketing strategy of the organization is
further propagated through aggressive advertising by them and enhancing the public relation
strategies that reinforces this image in the minds of the existing and potential customers. The
market targeting and positioning Strategies for the company are developed by understanding
the customer needs and the external environment of the telecommunication industry. The
organization is practicing high end positioning which has the organization in creating a
positive perception for them and building the products and services that are simple and easy
to use. The organization also focuses on their International presence and the operations that
span over more than 20 countries across the world and that position itself as a customer
centric brand which is constantly working towards improving their ways and developing
strategies to create a connected future for everybody (Barkley, 2017).
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Running Head: Report
Marketing mix for Telstra Corporation
The suggested marketing mix for Telstra Corporation Limited includes the marketing strategy
that the organization needs to adopt by covering the for essential elements of product, price,
place and promotion that the organization well developed for it marketing, advertising and
distribution plan and for the achievement of the objectives decided through this report.
Product: Be the leading telecom service provider in Australia, Telstra Corporation has
categorized the products and services offered by them on the basis of their customer needs.
The three broad categories for the products and services offered by them should be personal,
small business and the business and enterprises. The personal products and services offered
by Telstra would include the mobile phones, televisions, and the individual mobile and fixed
line plans offered to the customers. The small business product and services category would
include broadband plans, the digital office Technology plans, tablet and laptop bundle plans
and the mobile and fixed line telephone plans. The business Enterprises are provided with the
products and services which include the cloud storage services and the collaborated products
and services developed on the IoT technologies (ACMA, 2013).
Price: Telstra Corporation need to adopt a pricing strategy of competitive pricing where the
organization need to smartly decide the price to be charged for the product and service on the
basis of the prices of the competitors to ensure that this does not lead to A reduction in their
market share. In line with the current customer needs, the organization can also offer
customize mobile and Internet Services plans which will allow the customers to make their
own plan on the basis of their usage. The prices of the Other products and services should
also be offered to allow the organization to stay competitive in the market and still attain
profitability. The organization can also offer volume discounts and special pricing by making
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Running Head: Report
the combo of their product and services like mobile and fixed line, broadband, television,
movie subscription and other services offered by them.
Place: The place of the distribution channels that the organization needs to develop in order
to ensure that the products reach the right customers and the message to be communicated
through the marketing initiatives is also communicated to the desired customer segment are
the digital channels. The E-Commerce industry is developing and more and more customers
are now making the purchase and gathering the information for making the Purchase
Decision through the internet. Therefore, Telstra need to keep a close watch on the customer
sentiments about the brand and about the organizational services and ensure that the positive
messages about the company are highlighted and the handle all the issues and the negative
publicity by addressing it. The mobile application of the organization will also help in
increasing its reach and we'll make it more convenient for the customers to choose from their
variety of products and services by getting all the details conveniently (Ganga, 2011).
Promotion: The promotion of the organization should also be done on the digital and online
platforms. The desired customer base for Telstra Corporation make use of the internet
regularly and therefore advertising through the search engines and the social media platforms
will allow the organization to get the desired message communicated to the targeted customer
segment. The organization can also offer seasonal discounts at the time of the festivals and
run special promotional strategies why bundling the products and making use of the latest
promotional platforms for the promotion of their product and service offerings.
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Running Head: Report
The three additional components of the marketing mix of a service organization are people,
process and physical evidence. Since Telstra is also operating as a service marketing brand,
these three components are also discussed for their marketing mix below.
People: The human resources a valuable resource for any organization. Having a workforce
of more than 36000 employees, Telstra corporation is running 150 subsidiaries headed by the
current CEO Andy Penn. The company is extremely customer centric and has excellent
service provisioning. In order to enhance the customer experience, they have also developed
online forums and customer support cell which takes care of their queries and resolve any
issues faced by them.
Process: Telstra has a well-developed website which provides all its customers and easy way
to navigate and locate the store along with providing the Online technical support. The
organization engages and entertains any queries and provides customer service 24x7 through
their helpline (Chelimo, 2012).
Physical evidence: The headquarters of the organization are located in Melbourne, Australia.
The website of the organization is highly interactive and they have numerous offline stores
that are spread all over Australia. The physical evidence of the marketing strategy of the
organization can be found through the newspaper and magazine advertisement.
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Running Head: Report
Implementation plan and controls
The objective specified in the marketing plan for Telstra Corporation Limited will be
evaluated at an interval of 3 months. The four quarters of the organization will have the target
evenly split for them which will allow the organization to easily monitor and keep a track of
the progress to be achieved through their marketing strategies. The primary source of revenue
for the telecommunication organizations has moved from voice to data with the advancement
in technology and the development and popularity of the smartphones Telstra is trying to
keep up with this change in the external environment by offering bundled plans providing
voice and internet connectivity in a single plan (Mozny, 2017). The technologically conscious
customers are the ones that the organization needs to take special care of since they are aware
about the plants and services being offered by the competitors and will make the move of
switching the telecom operators when offered a better service or product. On the other hand,
the low usage customers are the customer segment of the organization that is relatively loyal
and not very cautious about the price plans and the competitive offers available in the market.
The organization should push their 4G plans and the bundle offers along with the option of
customizing their plans to the technologically conscious customer segment.
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Running Head: Report
Conclusion
This report comprises of the detailed marketing plan for Telstra Corporation Limited. Telstra
Corporation Limited is the largest telecommunication organization of Australia. Founded in
the year 1975, Telstra corporation is currently headquartered in Melbourne, Australia. The
operations of the organization include the building and operation of the telecommunication
networks and marketing of voice, mobile, internet and television services and products.
Telstra Corporation Limited has successfully positioned itself as the top telecommunication
service providing organization in Australia. The market targeting and positioning strategies
for the company are developed by understanding the customer needs and the external
environment of the telecommunication industry. This marketing strategy of the organization
presented in this report will be further propagated through aggressive advertising by them and
enhancing the public relation strategies that reinforces this image in the minds of the existing
and potential customers.
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Running Head: Report
References
Abedin, M. & Ferdous, L., 2015. Promotional Strategies of Telecommunication Industries
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Telstras-Standard-Marketing-Plan.PDF
Bakeir, R., Abu-Shanab, E. & Biss, S., 2009. Applying E-marketing Methodologies In The
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Barkley, A., 2017. Marketing Plan for NEXT plc., Available at:
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http://shodhganga.inflibnet.ac.in/bitstream/10603/46469/11/11_chapter3.pdf
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Jere, J., 2013. The role of marketing strategies in the performance of telecommunication
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NCY, 2013. Suggested Marketing Plan for Telstra (A Telecommunication Company in
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plan-for-telstra-a-telecommunication-company-in-australia/
Sarah, M., 2009. Marketing strategy in terms of promotion and communication for energy
drinks in ghana, Available at:
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Available at: https://www.ukessays.com/essays/marketing/telstra-is-a-telecommunication-
company-based-in-australia-marketing-essay.php
William, 2018. Telstra: Proud past, brilliant future. [Online]
Available at: https://www.telstra.com.au/aboutus/our-company
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