Marketing Analysis of Telstra TV: Strategies to Attract Targeted Customers

This report provides a marketing analysis of Telstra TV, including its target market, marketing strategies, and recommendations for improvement. Telstra TV is a popular product offered by Telstra Corporation Limited, the largest telecommunication company in Australia.

Running Head: MARKETING 1
Marketing

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Table of Contents
Introduction.................................................................................................................................................3
Company Background..................................................................................................................................3
Products or Services....................................................................................................................................4
Target Market..............................................................................................................................................4
Marketing Strategies...................................................................................................................................6
Product....................................................................................................................................................6
Price.........................................................................................................................................................7
Place........................................................................................................................................................7
Promotion................................................................................................................................................8
Conclusion...................................................................................................................................................8
Recommendations.......................................................................................................................................8
References.................................................................................................................................................10

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Introduction
Marketing is an essential process for each and every organization if it wants to survive in the
competitive industry. It includes different processes and components which help an organization
to promote its products and services in the marketplace. The major objective of this report is to
develop a marketing analysis of the chosen Australian organization i.e. Telstra Corporation
Limited. Telstra is the largest telecommunication company that creates and operates the
telecommunication networks, internet access, mobile, markets voice, pay television and other
products. The report includes the discussion about the products and services offered by Telstra
Organization. For this report, the chosen product is Telstra TV which is provided by Telstra to its
targeted customers. Specifically, it discusses about the target market and segmentations
characteristics of the customers. Moreover, it describes the marketing strategies which are used
by Telstra to attract its targeted customers. The marketing strategies of this company are defined
by using the marketing mix theory and framework. Telstra is using effective marketing processes
and strategies which enable it to become one of the biggest organizations in Australian
telecommunication industry.
Company Background
Telstra is the biggest telecommunication organization in Australia that offers various services all
over the country. It offers different products and services like telecommunication networks,
internet access, mobile, markets voice, pay television, local and international call services,
fundamental access services to homes and businesses etc. It was established in the year 1975 and
has a wide history in Australia, inventing together with the Australia Post as Postmaster
General’s Department (Telstra Corporation Limited, 2018). This organization is now totally
privatized and it is going under different change programs so that it can become more focused on
customers. The current CEO of Telstra, Andy Penn has been making efforts to increase its
market value that was declined significantly under his leadership (Bartholomeusz, 2017). There
are various mobile companies such as Google Pixel Phone and Samsung whose phones have the
access to the network of Telstra. By using effective business and marketing strategies, Telstra is
able to become one of the most successful companies in Australian telecommunication sector.

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Products or Services
Considering the needs and demands of customers, Telstra is offering various services like
telecom networks, internet access, mobile plans, mobile broadband, fixed line and mobile
telephony, Pay TV, data services, home broadband, home phones and different calling features
and applications. Its internet services are categorized in different parts like:
 Whole sale internet: Mobile, data, voice and other facilities,
 Retail internet: Services for personal and business clients through internet service
provider,
 Cable internet: Bigpond (internet Services in major cities in Australia like Gold Coast,
Perth, Sydney, Brisbane, Melbourne and Adelaide)
For this discussion, the chosen product is Telstra TV that is popular as Australia’s first integrated
live TV, on-demands and catch-up search function. It is the only device in Australia that has the
ability to find altogether for the specific titles through live TV, Netflix, Foxtel Now, BigPond
Movies, Stan etc. To run this device, there is need of Telstra broadband connection. Same as
other boxes like Fetch and Apple TV, Telstra TV connects the home network of customers either
via Wi-Fi or Ethernet cable and play the videos from internet to TV over the HDMI (Telstra,
2018).
Target Market
Target market is a market in which an organization wants to offer its products and services to. It
refers to the basic concept which assists the marketers to categorize the overall market into
different segments on the basis of different segmentation characteristics like geographic,
demographic, psychographic and buying behavior. In addition to this, target market is a group of
business organizations and customers who like to buy the products and services of a company
(Greenacre, et al, 2017). Theoretically, it can be stated that targeting is the process which choses
market segment by evaluating the market in terms of accessibility, market size and attractiveness
of the market. In order to promote Telstra TV, the company is focused on targeting its customers
considering the below-mentioned segmentation characteristics:

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Demographic:
Under this approach, the customers are lined together into different groups using the
characteristics like income, age, occupation, race, education, nationality and religion. Telstra
Organization is developing its marketing strategies by emphasizing on gender, income and age.
The company believes that it is very important to understand and meet the needs of different age
groups. For this product, Telstra is focused on the younger generation who generally love to
watch movies, shows and series. It is targeting both males and females between the age of 18 to
55 years with the higher and medium income levels. It is making more focus on female group as
they are interested in watching movies and shows (Simpson, 2016). They need to take the
broadband connection of Telstra.
Geographic:
Under this segmentation, the companies divide their customers on the basis of area or their
geographic locations. Telstra is offering the service of Telstra TV in Australia only so it has
divided its customers as per the cities and states. For instance, Melbourne is a metropolitan area
with growing business industries (Schlegelmilch, 2016). The population in this area has a
number of business and working people. So, company is focused on this area significantly.
Psychographic:
Psychographic segmentation includes dividing the customers on the basis of lifestyle, social class
and their personality characteristics. Looking at this company’s advertising and promotional
campaign, it can be stated that Telstra is targeting the customers on the basis of different
lifestyles. It targets the fun loving people who like to watch movies and shows through live TV,
Netflix, Foxtel Now, BigPond. It focuses on the people who are looking for significant value for
their money. Additionally, the company targets the people from upper and middle classes who
want to get relaxed from their busy schedules by watching entertaining movies (Telstra, 2018).
Behavioral:
Under this, customers are targeted on the basis of response, knowledge and usage of company’s
products and services. Telstra pays very much attention on the factors like usage rate and user
status (Zeriti, et al, 2014). The company uses different offers and schemes to maintain the loyalty

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of its regular customers. For instance, it is targeting its mobile customers by offering the number
of packages to stream Foxtel Now’s services free for 12 months. Considering the interest and
usage rate of customers, it provides additional benefits to its subscribers.
From the above analysis, it can be stated that Telstra Corporation provides Telstra TV by
targeting both young and adult males and females from all income groups (Venter, Wright and
Dibb, 2015).
Marketing Strategies
Marketing strategies of a company are the strategies which are formulated and implemented by
each and every organization to attract more customers towards its products and services. It is
using market penetration and product differentiation strategies to attain the competitive
advantage and enticing the customers (Baker, 2014). By using product differentiation strategy,
Telstra is able to differentiate its products and services from other players. It assists the
organization to entice more customers and enhancing its brand image. Additionally, Telstra uses
market penetration which assists in market expansion and product development.
In order to promote Telstra TV, it is using marketing mix strategies which include different
components like product, pricing, place and promotion strategies (Huang and Sarigöllü, 2014).
These marketing strategies are discussed below:
Product
This is one of the most significant marketing strategies of Telstra that is used to attract more
customers and retain existing customers towards Telstra TV. Under its product strategy, the
company has divided its products on the basis of customer types. The major categories are
individuals, small businesses and enterprises. Telstra TV provides a set top box that is a 4K
capable media streaming device which plays the TV shows and movies from the services such as
7Plus, Netflix and BigPond on subscriber’s TV. It is only available to the broadband customers
of Telstra. This device supports a variety of paid and free streaming services via apps on its
application store. Along with the streaming services, Telstra TV can also access music and
photos stored on home network and USB devices. Searching for the content and switching the

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apps can be controlled through the included infrared remote with a common remote and via
mobile app of Tesla TV (Telstra, 2018).
Price
Telstra offers the chosen product considering the level of its targeted markets. Currently, the
bundling offer gives a Telstra TV at no extra cost to any customers on the plan costing 99$
monthly or higher. It indicates that the prices of this product cannot be afforded by lower income
people. However, the prices are higher but it offers quality services and high speed internet to its
customers. So, it is able to provide its customers value for their money. The plans for Telstra TV
are available for different time periods. There is need to improve the pricing strategies of Telstra
TV so that it can attract more people towards it (Khan, 2014).
Place
Place strategy is the most significant element for the growth of business which includes physical
stores where the organization can offer its products and services. It is the provider for the fastest
internet and broadband services in Australia. In the beginning, BigPond 4G services are available
in the central business centers in Australia (Wensley, 2015). The company has 58 data centers
and over 360 retail stores all over Australia. It assists the organization to entice the customers
that enhance the profitability and revenues of Telstra Company. People can buy Telstra TV both
online and offline. By using online services, it is able to spread out its products and services all
over the Australia which are enjoyed by 99% of Australian population. It has its own stores
across the country (Stead and Hastings, 2018). Further, it is making efforts to establish its retail
stores and centers in major cities in foreign nations.
Promotion
Promotion is an essential and important strategy under marketing mix framework which includes
advertising strategies to capture the Australian telecom industry (Valos et al, 2016). In this
context, Telstra Company adopts and implements different promotional strategies like sales
promotion, personal selling and advertising that have a significant impact on the customers
towards its products and services. It provides discount on the bundle packages so that it can get
price benefits and for enticing new customers, it has many contests (Andrews and Shimp, 2017).

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It promotes this product via offering value added services. Additionally, this company is using
loyalty programs like discount coupons and rewards. It is providing free Telstra TV services to
its mobile phone customers for first 12 months. Also, Telstra advertises its products and services
by offering the customers with free devices while they sign in for Telstra services (Cameron,
2014).
Conclusion
From the above analysis, it can be concluded that Telstra is operating its business operations all
over the Australia. The company is using effective marketing strategies to promote its Telstra TV
product so that it can attract its target markets i.e. males and females, younger generation,
business and working professionals etc. The above report shows that this company is making
various efforts to approach its targeted customers for this TV. The marketing and promotional
activities are very effective as they enable the organization to attract and retain more customers
for long run. Apart from Telstra TV, it offers a variety of products to Australian population.
These products are different from its competing brands. Thus, the growth and marketing
strategies of Telstra are good for its development of company in competitive business
environment.
Recommendations
However, Telstra Corporation is using effective and successful strategies to advertise its Telstra
TV in Australian market but still there is need of improvement in the processes. Considering the
competition in the market, the company should enhance its strategies and understand the
marketing approach of competitors. Currently, it is offering its products in Australia, now it
should expand its business in international markets. It should implement more effective
strategies so that it can capture a larger market share in Australian telecommunication industry.
Additionally, the charges of Telstra TV are comparatively higher than others so it needs to
emphasize on its pricing strategies and reduce the prices. It will enable the lower income group
to buy its product. Thus, the company will be to increase its customer base in Australia and all
over the world. These recommendations will help the company to enhance its business
operations all over the world.

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