Marketing Management Report: TPG Telecom Analysis and Recommendations

This report provides a comprehensive marketing analysis of TPG Telecom Pty. Ltd., the second-largest telecom and IT organization in Australia. It begins with an overview of the company and proceeds to evaluate its macro-environment (demographic, economic, natural, technological, political, social, and cultural factors) and micro-environment (company, suppliers, marketing intermediaries, competitors, publics, and customers). The report selects key trends from both environmental analyses, discussing their impact on the company. Furthermore, it critiques TPG's current marketing mix, based on the 7Ps framework (product, price, place, promotion, physical evidence, processes, and people). The report also examines specific elements of the marketing mix and concludes with recommendations for improving TPG's marketing approach, referencing relevant academic literature and marketing theory.

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Management
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Table of Contents
1. Introduction.............................................................................................................................................2
2. Marketing Environment Analysis (External analysis)...............................................................................2
2.1 Macro-Environment..........................................................................................................................2
2.2 Micro-Environment...........................................................................................................................4
3. Critique and Evaluation of Current Marketing Mix..................................................................................5
Marketing Mix – Overview and Critique..................................................................................................5
4. Marketing Mix Recommendations..........................................................................................................7
5. Conclusion...............................................................................................................................................8
References...................................................................................................................................................9

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1. Introduction
The report will analyze the marketing management of TPG Telecom Pty. Ltd, the second largest
telecom and IT organization in Australia. The company has the second largest customer base of
fixed broadband and moving towards to be the top service provider of broadband and NBN. It
will evaluate the macro-environment and micro-environment analysis of the company. It will
select two trends, each from two marketing environment analysis and discuss its impacts on the
company. Moreover, it will examine the present marketing mix approach of TPG with the help
of the 7Ps of the marketing mix. It will also focus on three Ps of the marketing mix and provide
three recommendations for improving the present marketing approach of TPG.
2. Marketing Environment Analysis (External analysis)
2.1 Macro-Environment
Demographic - The population of Australia in the year 2019 is 25,052,184. The current trends,
fashion, lifestyles, and age, affects the telecom companies. Currently, high-speed mobile services
and internet connections are trending in the country.
Economic - Inflation, taxes, and interest rates of the country influence the telecom industry of
Australia. The pricing per plan that is offered to the clients is affected by the increasing
expenses. The inflation rate in Australia in 2019 is 2.02%, and the GDP rate is 2.07%
Natural - Global warming and climate changes impact the process of delivering the products of
the telecom industry to the clients. The staffs have to adopt the changes with technological
advancement, in terms of their jobs.
Technological - The telecom industry of Australia is profoundly impacted by technological
factors. As it is a most dynamic industry, better optic fiber for faster information, decrease in
network traffic, and better quality of mobile services continue to change.
Political - The issues of laws and regulations regularly arise between the people and the
government. The fight for and against net neutrality is continuing in Australia. It is a huge
political fight between the people, government, and service providers.

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Social - The customers are the main social factor for the telecom industry in Australia. In the
industry of telecommunication, the primary needs of the clients are fast internet services, high-
speed mobile services, and cheap cost.
Cultural - Telecommunications and culture have a deep connection among them, and digital
services are mostly used by Australians in comparison to the whole world. The internet has
greatly affected the culture of Australia.
Macro-Environment Analysis – Macro Trends
(1) Macro Trend One
Technological Factor - The telecom industry of Australia is profoundly impacted by technical
factors. Technology continues to change, and the latest technologies are automatically replaced
by old techniques. As it is a most dynamic industry, better optic fiber for faster information,
decrease in network traffic and better quality of mobile services continues to change, and needs
for telecommunication services are continuously growing. As for instance, currently TPG at
present use fiber wires which are made up of copper (Abril and Rodriguez-Cánovas, 2016).
Mobiles have become compact, which is shifting the telecommunication company into the
wireless business. Currently, people want high-speed mobile services and internet connections
(Bašić, Vlajčić & Novak, 2018). So, this needs of the customers can create an opportunity for
TPG for holding a strong influence on telecommunication advancements in mobile phones and
computers.
(2) Macro Trend Two
Social Factor - The customers are the main social factor for the telecom industry in Australia.
The changing social needs and preferences lead towards the mechanisms of supply. In the
industry of telecommunication, the primary needs of the clients are fast internet services, high-
speed mobile services, and cheap cost. The horizontal development of the telecom industry is
limited in Australia, particularly in rural areas (Bhatti, Abareshi & Pittayachawan, 2016). The
clients are left with fewer options while purchasing packages for mobile and internet. As telecom
companies have a monopoly, they are responsible for both mobile and internet services. The
client needs to buy these packages for interacting with their friends, buying products through
online, using social networking sites, and many other purposes (Choi, Lee, Yoo & Yoo, 2019). It

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can be an opportunity for TPG as telecom services have become an essential part of their
everyday life.
2.2 Micro-Environment
Company - TPG Telecom is the second largest telecom and IT organization in Australia with its
head office in Sydney in Australia. It has the second largest customer base of fixed broadband
and moving towards to be the top service provider of broadband and NBN.
Suppliers - The suppliers have the power to increase or decrease the prices in the telecom
industry of Australia. If there are fewer suppliers, the company depends more on the suppliers,
and the suppliers have high bargaining power. They might choose not to work with the company
or increase the price of their resources (Abril and Rodriguez-Cánovas, 2016).
Marketing Intermediaries - The marketing intermediaries needed to implement the process are
the retailers those who are the links to fulfill the demands of the clients of TPG (Bhatti, Abareshi
& Pittayachawan, 2016). These retailers are responsible for selling internet connections to the
clients and increase the revenues for TPG Telecom.
Competitors - IT and Telecommunication are the utmost needs of the present time. With
growing development in technology and high potentials for revenue, this industry has become a
considerable significance in the past few years. The main competitors of TPG are Vodafone,
Telstra, Optus, and Amaysim.
Publics - The telecom company fulfills the preferences and needs of the clients. The clients need
high-speed internet at a reasonable price. The corporate processes need fixed broadband
connections and also requires high-speed internet connections for running the businesses
smoothly (Nemati, Mohaghar, Alavidoost & Babazadeh, 2018).
Customers - The significant customers of TPG are small and medium firms, residential clients,
government, wholesale clients, and large corporate companies. It is trying to increase its client
base by offering solutions to its clients.
Micro-Environment Analysis – Micro-Trends
(1) Micro Trend One

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Company - TPG Telecom is the second largest telecom and IT organization in Australia with its
head office in Sydney in Australia. The company offers different communication services to its
clients like networking, internet services, mobile services, accounting services, and OEM
services. The telecom company is in its developing stage and gaining high profits from the past
few years (Datta, Ailawadi, and van Heerde, 2017). The company is working on its model of
effect operating cost with experienced management teams to expand its operations in Australia,
South Africa, Philippines, and New Zealand.
(2) Micro Trend Two
Competitors - IT and Telecommunication are the utmost needs of the present time. With
growing development in technology and high potentials for revenue, this industry has become a
huge significance in the past few years. The main competitors of TPG are Vodafone, Telstra,
Optus, and Amaysim (Jeng & Pak, 2016). It has been planned by Amaysim, a telecom service
provider, to indulge in the sector of fixed broadband. At present, the current clients of Amaysim
are utilizing different providers of fixed broadband. So, of Amaysim enters the sector of fixed
broadband, the existing broadband connections of TPG will be disturbed.
Although this industry is highly competitive, because of high revenue and potential demands,
this industry has potentials for the new entrants to access this sector (Lin and Krishnamurthy,
2017). But with substantial capital expenses and huge risks, possibilities for the new entrants
and competition is limited. Telecommunication organizations have to face stiff competition, and
this growing competition has been a severe threat to TPG (McLaren, 2018).
3. Critique and Evaluation of Current Marketing Mix
Marketing Mix – Overview and Critique
In a stiffly competitive market of telecommunications of Australia, TPG implements proper
marketing tools and strategies to gain competitive benefits. The components of the marketing
mix help TPG in achieving its desired targets. The satisfaction of the clients is the top priority of
the telecom company (Meese, 2019). With the help of 7Ps of the marketing mix, the telecom
company executes and implements its marketing strategies for its product offerings, price, place,
promotion, physical evidence, processes, and people according to the needs of its clients. The
marketing mix of the telecom company are as follows:

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3.1 Product offering - TPG offers different communication services to its clients like
networking, internet services, mobile services, accounting services, OEM services, and fixed
broadband services. The services are provided through high-quality optic fibers and huge
network infrastructures of cables all over Australia to provide the best quality services (Nemati,
Mohaghar, Alavidoost & Babazadeh, 2018).
3.2 Price - The telecom company uses useful operating cost model for its infrastructures and
planning for its networks. Thus, the pricing is exceptionally reasonable and convenient for the
telecom company (Shafei & Tabaa, 2016).
3.3 Place - The telecom company offers and supplies its internet services, mobile services,
accounting services, OEM services, and fixed broadband services in Australia (Thaichon &
Quach, 2015). The maximum market shares of TPG is in Australia, and so it is the main
commercial place for the telecom company.
3.4 Promotion - TPG promotes its services through TVs, radios, newspaper, video promotions,
magazines, billboards, and leaflets (Xiong & MacKenzie, 2015).
3.5 Physical Evidence - Strengthening the portion of the brand and its networks and outstanding
services to the clients and complaint centers are utilized by the telecom company for attracting
its clients (Thaichon & Quach, 2016).
3.6 Processes - For providing the best quality mobile services and high-speed internet services at
a reasonable price, the telecom company uses cost-effective processes.
3.7 People - The telecom company have the best expertise in the field of management to
promote its internet services, mobile services, accounting services, OEM services, and fixed
broadband services in Australia. The people are the vital part of executing and implementing the
promotion and marketing its services (Wu and Li, 2018).
Critique
The marketing mix of TPG has been done on the basis of market research of the telecom industry
of Australia. It has been found that the telecom industry is one of the most significant industries
in Australia. Demographic factors have a high impact on the telecom industry of Australia. The
current trends, fashion, lifestyles, and age, affects the telecom companies. At present Australia

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has an aging population with 25% of people above the age of 65 years. Currently, high-speed
mobile services and internet connections are trending in the country. Inflation, taxes, and interest
rates of the country influence the telecom industry of Australia.
The pricing per plan that is offered to the clients is affected by the increasing expenses. The
staffs have to adopt the changes with technological advancement, in terms of their jobs. The
telecom industry of Australia is profoundly impacted by technical factors. Technology continues
to change, and the latest technologies are automatically replaced by old techniques. As it is the
most dynamic industry, better optic fiber for faster information, decrease in network traffic, and
better quality of mobile services continue to change. The fight for and against net neutrality is
ongoing in Australia. The clients want that data, and the internet must be treated on the same
ground by the government and service providers.
The customers are the main factor in the telecom industry in Australia. The changing social
needs and preferences lead towards the mechanisms of supply. In the industry of
telecommunication, the main needs of the clients are fast internet services, high-speed mobile
services, and cheap cost. Telecommunications and culture have a deep connection among them,
and digital services are mostly used by Australians in comparison to the whole world. The
internet has greatly affected the culture of Australia. If the government wants to bring changes in
the Australian culture, it has to invest seriously in the telecommunication industry. The power of
the customers is high in telecom industry due to the ease to switch to another telecom company
for better services. The telecom industry is also affected by several clients available in the
Australian market.
4. Marketing Mix Recommendations
4.1 Recommendation One - Product
The quality of services has to be maintained by TPG according to the needs of its clients. It will
help the telecom company to attract more clients and meet the expectations of the clients
regarding the quality of services. The services need to be regularly inspected to check the current
conditions of the services of the telecom company. Hence, it will enhance the experiences of the
customers, and also the telecom organization can include more services in its service range
which could be beneficial for its clients to choose from the service range and meet their needs.

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The telecom can also offer a discount on some of its services for attracting more clients to
purchase its services.
4.2 Recommendation Two - Price
The telecom company can be recommended for service line pricing strategy as it will help TPG
to set up the price for several services which is offered in association with another service. Thus,
it might be successful in creating an impression in the minds of its clients. It could also help to
increase the profits and an overall turnover of the telecom organization, TPG. The service line
pricing strategy could be beneficial to increase the satisfaction level of the clients of the telecom
company as well as gain huge revenues and profits. So, it could help to stay in the competition
and offer better services to its clients in terms of quality and price. It also might be helpful for the
customers to take the right decisions.
4.3 Recommendation Three - Promotion
The telecom organization can use different banners to promote its services. It will make the
clients inquire more about the services of the telecom company. It will also help the telecom
company to provide useful and better services to its clients and increase the visibility of TPG.
The telecom organization can utilize promotional banners pointing out the details regarding the
saleable services and various discounts and offers available in the company. The experience of
the customers can also be improved, which could be useful for TPG for better customer
engagement and increasing the revenue of the telecom company. It might also use social
networking sites like Twitter, Facebook, and Instagram for promoting its services and reaching
out to the huge number of clients. It will help to build good relations with the customers and
come closer to them. Besides, the telecom organization can sell its services through online,
which could help in attracting more clients.
5. Conclusion
The report analyzed the marketing management of TPG Telecom, the second largest telecom and
IT organization in Australia. The company also has the second largest customer base of fixed
broadband and moving towards to be the top service provider of broadband and NBN. The
marketing management includes the macro-environment and micro-environment analysis of the
company. It selected two trends, each from two marketing environment analysis and discussed

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its impacts on the company. Moreover, it examined the present marketing mix approach of TPG
with the help of the 7Ps of the marketing mix. It also focused on three Ps of the marketing mix
and provided three recommendations for improving the present marketing approach of TPG.

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