Telstra telecommunication service has set the 5 C's

Running Head: Marketing 0
Telstra
Marketing
1/27/2019

Marketing 1
Executive Summary
Telstra telecommunication service has committed to play a part in the development of strong
productivity and performance. They have identified their 5 C’s, which also plays an
important role in maintaining a strong commitment. They are also trying to give a tough
competition to their competitors, sustain the growth opportunities, and properly react to the
rapid innovation in technological improvements of the business. In the following, an effort
has been made to discuss customer needs, competitors, business context, and the role of
collaborators as a part of market intelligence. In addition, the discussion has been made on
marketing mix and segmentation, targeting, the positioning of the market.

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Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
5 C’S...........................................................................................................................................3
Market research and intelligence...............................................................................................5
Developing Market strategy.......................................................................................................6
Marketing Tactics.......................................................................................................................9
Recommendation......................................................................................................................11
Conclusion................................................................................................................................12

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Introduction
Telstra is Australia’s biggest and one of the leading telecommunication companies, which
delivers the popular brands in the nation. They deliver the services to provide mobile
broadband services, which is the biggest wireless network coverage in Australia. They deliver
a complete scope of services and strive in all extents of telecommunication as both
internationally and domestically. Their main motive is to improve its position as the
prominent telecommunication and information service organization in Australia as well as to
develop its existence internationally. Telstra originally was Telecom Australia was formed in
1901 by the Postmaster Generals Department until 1975. In 1989, Telecom Australia
becomes the official Telecommunication Corporations for all international and domestic
telephone broadband services. In 1995, Telecom Australia transforms the name to Telstra for
the objective of diversity from other worldwide telecommunication organizations
(McDougal, 2017).
The organization has been trading globally since 1993 as presently Telstra works in around
19 countries over the world. It is determined as dominant telecommunications and
information service provider of Australia with a wide range of products and services that are
promoted to the business, government, and private sectors internationally. Their main
services involve mobile broadband telecommunication services, Advertising & Information
services, and Internet management services, fixed line telecommunication to business across
Australia, wholesale services to other telecommunication service providers, and cable
distribution for subscription services (Gregory, 2018). In the following, an effort has been
made to discuss the 5 C’S of the organization, market research, marketing strategy, detailed
marketing mix and recommendation for the promoting the unique services in the
organization.
5 C’S
The 5 C’S of the organization are-
 Company- Telstra main strength is that it provides multiple synergies across several
products involving cable TV, fixed-line, mobile, and internet. It delivers dominance
of telecommunication services with wide network coverage across Australia. It attains
75% market share and 8.3% mobile revenue growth until the year 2005. Their

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weakness is that Australian management stake in Telstra has led to an increased level
of analysis as compared to others in the telecommunication market of Australia. It has
been stated that the resignation of CEO of Telstra Ziggy Switkowski resulting in
concerns with corporate stability and succession, which has decreased the sales of the
organization. Their opportunities are been stated as they have attained growth and
development in 3G mobile services with initiating a new agreement with Hutchison
3G, which will maintain development and profitability in the future. They are facing
threat with the main competitor Optus (Hu et al., 2018).
 Customers- Telstra considers various income groups, age groups, and gender groups
while developing the strategies. They have introduced this innovative plan to induce
the youth of the society who use the mobile phone frequently. They have delivered
several plans for diverse income group and focussed on both the genders of the
community. They have divided their customers based on states and cities, for
example, Melbourne has more working-class people and on the other hand, small
cities have different sorts of people as they do not use a mobile phone and their
services on a large extent. However, Telstra offered a diverse marketing strategy for
everyone. They deliver their 3G service to big cities only as this plan is expensive and
lower income people cannot afford this (Lustosa et al., 2015).
 Collaborators- Telstra has collaborated with CISCO, which assists the team with an
amazing experience that operates all over the world. They combine with the global
network with developing technologies and maintain a strong commitment for rich
collaboration in order to meet the customer needs. Telstra has also collaborated with
Microsoft, which encourage a modern workforce and provides access to integrated
solutions in one place. It also delivers a strong, reliable, and connected network,
which is Australia’s largest association. It will enhance the capability and value
through its mobile broadband services (Bhatti, Abareshi and Pittayachawan, 2016).
 Competitors- Telstra faces intense competition from opponents, which are Vodafone,
Tata Communication, TPG, Optus, and Singtel. It has been the main beneficiary of
Vodafone Hutchinson Australia’s misfortunes. The rivalry is also lifting its
enhancement with Optus and Vodafone, which is far more aggressive on customer
interaction, availability, and data plans. It is expected to continue to develop growth
and revenue from its business and grab additional market share. Their competitors are
updating its plans with offers with streaming services to induce customers. The new
potential threat is TPG, as Telstra, Vodafone, and Optus are facing the threat and

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pressure. Telstra is facing the biggest threat due to their market leadership and
defending its market share (Nayak, 2018).
 Context-The legal factors affect Telstra are discrimination, employment law, data
protection, intellectual law, health, and safety law. The political affect organization as
it can play a major part in the future profitability of the economy. It affects factors as
level of corruption, political stability, the legal framework for contract enforcement,
and wage legislation. They should attain the success in a telecommunication industry
to broaden the systematic risks of the political environment in respect of entering into
a market. Technology is quickly disrupting several industries in the coming years as
giving chance to the developed players to adapt to the changes. An organization
should not only analyze technological effects but also the speed at which technology
is continuously disrupting the industry (Sutherland, 2016).
Market research and intelligence
Telstra is a leading telecommunication organization, which is offering a full extent of
communication services in all telecommunication market. They are contributed to the safety
and security of the customers and gain attention in the world.
a) The customer wants- In an interconnected world, governments, consumers, and
businesses are communicating through the internet. Customer behaviour, needs, and
expectation are changing systematically. Transformations are innovating in the real
world as telecommunication is generating immense opportunities and services.
Customers want in the competitive telecom market as social media expectations. In
this, they expect to feedback from telecom providers through social media channels.
Most of the customers expect immediate feedback from the company. They started to
develop an automated service system and share with encouragement and positive
telecom services with their family. Many customers want their broadband services to
be easy to use and should be effective in any manner. They always want to provide
effective broadband services in a period so that they can good quality services
(Clarkson, 2016).
b) A competitor poses a threat- TPG poses threat to Telstra as it is stated that TPG is
maintaining the position of the fourth mobile network in the broadband provider.
They have built the reputation and status with a low price in their mobile network.
Vodafone has also secured a specific position in the telecommunication industry and

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combined a spectrum of economic regulations. They both have given tough
competition to Telstra under the current regulatory environment. TPG poses a threat
to Telstra due to their high mobile network and it has a negative impact on the
industry. The biggest risk to the Telstra is the price competition and geographic
coverage as it has been stated that TPG triggers in entering the market and it is the
biggest threat to Telstra (Nicholls, 2016).
c) The context of business- The context of the telecommunication industry is rapidly
changing as talking about the demand, which is seamlessly connected to the internet.
They are introducing their Next Gtm mobile broadband network reacting to customer
needs and delivering the core value propositions, which are speed, simplicity, and
coverage. Their USP for its next Gtm network is that it offers fastest network in a
changing environment differentiating from opponents’ companies. Through these
innovative and changing needs of customers, they have succeeded several
international operators in a highly competitive market. It is changing in a positive
manner, as the digital market is upgrading, developing intelligence capabilities, and
advanced analytics. There are various areas where new technologies are developing
traditional methods and customer knowledge and assets, which provide a strategic
advantage over other competitors (Moghaddam et al., 2018).
d) Role of Collaborators- The collaborators have a very significant impact on the
business and associates work together to achieve success, encourage customer loyalty,
and attain a substantial competitive advantage. They have a large role to play in the
productivity, innovation, and agility. It also generates increased citizenship and with
the interaction done by them will be very helpful in achieving the success and
maintain cordial relation with them. They play a major role in adopting new
technology effectively (Araujo and Urizar, 2016).
Developing Market strategy
Telstra is working in a very broad market within the telecommunication business, delivering
broadband services to several market segments.
Segmentation

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The demographic segment is been chosen as it can segment into the various segment to assist
a company to target its consumers more precisely. It segments the market as per the race,
gender, ethnicity, education, age, religion, family size, and income.
 In this, customers are cooperating into clusters utilizing factors such as nationality,
occupation, ethnicity, gender etc.
 Telstra is giving more attention to developing their marketing strategies by focussing
more on income, age, and gender.
 It is significant for Telstra to be capable to identify and satisfy the customers to
provide adequate broadband services as well as technological capabilities catering for
all diverse groups.
 They can initiate special offers for the broadband service that induces the young
generation by offering a mega plan of SMS service that are spending most of their
time in messaging and calling very often.
 Income also plays a significant role in the manner people spend their money at a very
large extent.
 They should also initiate prepaid mobile services, accessible to teenagers, which
maintain flexibility with respect to time and money. For the time being, those people
who do not mind in consuming extra cost for high data transmission (Bhatti, Abareshi
and Pittayachawan, 2016).
The Geographic segment is been chosen as it can segment the company into urban, rural, and
suburban segment because different customers in diverse regions have distinct needs,
preferences culture, values, and wants, which can be specifically targeted.
 Telstra is also delivering their services in Australia, in different regions of diverse
customers.
 There are several factors that will come in the aspect that while taking into
consideration while maintaining structuring marketing strategies.
 It is stated that specific race or age group may be more widespread at certain
geographical extents.
 For instance, Melbourne is an urban state with advancing industries in
maintaining and developing government
 However, the population has an immense working professional and portray
diverse demographics together.

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 Because of the differentiation of the population at specific geographic extents,
Telstra has come up with diverse marketing tactics.
 Telstra is also ensuring to attain 3G services to major cities only and try out the
broadband service effectively (Schram et al., 2018).
The Psychographic segment is been chosen as it can segment the market depend upon
customer personality attitudes, lifestyles, traits, interests, and values. It will permit to better
progress and maintain each segment wants and needs.
 This segment incorporates grouping customers together depend on lifestyle, social
class, or personality characteristics.
 It is stated in Telstra marketing campaign; their advertisement portrays several groups
of individual leading diverse lifestyles.
 They are described as customers who love to utilize the broadband service for great
value.
 Another set of customers is described as high achievers. They are very effective and
utilize the most recent innovation in order to maintain the needs of the customers.
 Lastly, Telstra showed the ‘family comes first’ group. In this, customers are depicted
to be family oriented and utilize innovation and communication services as a medium
to maintain a relationship with their close family members (Levine, Seccombe, and
Roy, 2018).
The Behaviouristic segment has been chosen as it can segment the market, which depends
upon the usage with products in respect to brand loyalty and readiness to purchase.
 This kind of customers segments should be according to their response, usage, and
knowledge of the product.
 Depend on the behaviouristic segment, Telstra can take an attempt to market their
products or services with various aspects such as usage rate, benefit segmentation,
loyalty status, user status, and occasion segmentation.
 Telstra pays attention to promotional activities to develop the loyalty of their regular
consumers.
 Telstra is also segmented as per usage rate, which is differentiated among low usage
customers and big spender.
 The company offers an immense value to low usage consumers and concentrate in
pushing their 3G services to high usage consumers (Ryschka, 2016).

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Targeting
 Targeting is changed from market segmentation as it only incorporates the
organization to recognize and choose one or more groups so that a definite program
can be generated for each of them.
 It is also known as the ‘rifle approach’.
 Telstra target two market segmentation i.e. low usage customers and technologically
conscious consumers.
 Low-usage consumers are majorly those who have contributed to their broadband,
prepaid, and SMS services. These users are not monetarily dependent on anyone.
 Telstra has decided for technologically conscious consumers that have come up with
unique and striking programs to deliver 3G services (Biddle, 2017).
Positioning
 It is to be stated that the successful positioning of broadband service allows customers
to develop a positive attitude about the service before thinking about other brands.
 Telstra develops the marketing strategy through public relation and aggressive
advertising strategies.
 They should launch a new reputation with a new motto that said, ‘Australia relation
with the future’, which is committed to the organized effort to maintain the position as
the prominent telecommunication organization that offers broadband services and
world-class 3G services in Australia (Sanou, Le Roy and Gnyawali, 2016).
Marketing Tactics
The marketing strategy of 7 P’s are as follows-
Product
 In this, the discussion has also been made on three products that are accessible under
Telstra’s internet services. These are mobile broadband, mobile tablet, and home
broadband.
 In their perspective, their home broadband line is called BigPond. They deliver
internet connection via ADSL as well as cable.
 For mobile broadband, the consumers can either decide to go for Telstra’s pre-paid
options or BigPond's post-paid options.

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 For a mobile tablet, the four types of the tablet can be interconnected up to several
plans (McCosker, 2017).
Price
 Price varies from one plan to another as it is based on the categories of services in
which the customer needs can be fulfilled and have their mobile broadband, home
broadband, and mobile tablet.
 The costliest plan for home broadband is BigPond Ultimate 500 GB Liberty, which is
valued at $100.12 and low-priced plan for home broadband is the BigPond Elite 5GB
Liberty, which is valued at $32.45.
 Telstra pre-paid plans for the mobile broadband plan is valued at different rates
depending on data allowance, in which highest will cost 1.56 cents per MB and lowest
is 8 cents per MB.
 Their post-paid plan for the mobile broadband is termed as BigPond Liberty ranging
from 1GB to15 GB of data allowance. It is valued from $20.21 to 89.54.
 There are several other plans accessible for each mobile tablet that is delivered by
Telstra. However, the costlier plan is priced is $91 and the cheapest value is valued at
$30 (Miklosik et al., 2018).
Place
 Telstra is the distributor for the quickest broadband service in Australia and primarily,
the BigPond 4G services are only accessible at the central business extent in
Australia.
 Their 4G coverage is delivered to all related regional locations and airports in
Australia, particularly in town.
 It is stated that speed might differ because of various factors such as a number of
users, terrain, and distance from the station.
 Telstra 3G services are widespread thoroughly and around 99 percent of the
population of Australia are capable to enjoy the environment (Bhatti, Abareshi and
Pittayachawan, 2017).
Promotion
 Telstra is promoting their products and services on a continuous basis such as
permitting the customers in order to get inexpensive rates.

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 Telstra has several contests to induce prospective customers and the latest contest is
termed as Telstra Credit Me2U.
 Other than this, they also delivered free devices when customers sign up for their
services (Madhani, 2018).
People
 Telstra has always make sure that its consumers are of highest priority. It offers more
than 500 million subscribers internationally around 200 nations.
 They had an amazing strength of around 200000 personnel across the world.
 People, as employees as well as consumers, are a great pillar of strength and success
of Telstra (Sigvaldadóttir and Taylor, 2016).
Process
 Telstra pays strong attention to processes as a matter of its service marketing mix.
 It is stated that as telecommunication is a service industry, so the whole process
should be effective and efficient.
 The utmost significant part is top-ups and having functional towers with good
strength for the consumers.
 They also maintain customer relationship management and apart from that, they
should safeguard effective network and accessibility of sim card (Son, Lee and Kim,
2015).
Physical evidence
 In the physical evidence, their sim card is the main evidence, which is issued to their
consumer.
 In addition, service outlets, recharge vouchers, and digital services are also included
(Branson and Sugo, 2016).

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Recommendation
 Telstra should maintain their broadband service, 4G as well as 3G service in order to
deliver a quicker and easy experience for their consumers.
 They should also deliver more alternatives in respect of mobile plans and catering to
the customers’ needs and preferences
 In comparison to their opponents as Optus and TPG, Telstra has a moderately higher
price.
 They should also make sure that 3G, as well as 4G services, are accessible throughout
Australia.
 They should do promotions and reward their employees and consumers for being
loyal.
 They should also attract new users by delivering more discounts, offers, and rebates
(Choi et al., 2017).
Conclusion
As per the previous discussion, it has been stated that Telstra has achieved success in the
telecommunication industry. They have emerged various revolutionary innovations in the
history of telecommunication industry. It delivered the consumers a wide assortment of
services i.e. broadband services, mobile tablet, and mobile network. They always focussed on
the needs and preferences of the customer. In this report, it has been discussed about the 5
C’S, market research and intelligence, marketing strategy, and marketing tactics. Telstra
needs to induce its performance and productivity in order to meet the needs and wants of the
customers and develop strategies to attain the target market.
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