Marketing Plan for Telstra Corporation: MKG701 Semester 1 2018 Report

This report presents a comprehensive marketing plan for Telstra Corporation Limited, a leading telecommunication organization in Australia. It begins with an introduction to the company, its background, and the Australian telecommunications industry, including the products and services Telstra offers. The report then details the current market situation, major market segments, and a SWOT analysis to identify Telstra's internal strengths and weaknesses, as well as external opportunities and threats. Based on this analysis, the report proposes marketing goals and objectives, followed by a detailed marketing strategy that includes segmentation, targeting, and positioning. The marketing mix for Telstra is outlined, focusing on achieving a competitive advantage. Finally, the report includes an implementation plan and control measures to monitor progress and ensure the achievement of the set objectives, allowing for plan review and necessary adjustments. This document is available on Desklib, where students can find a variety of solved assignments and past papers.

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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Running Head: Report
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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Running Head: Report
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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Running Head: Report
 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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Running Head: Report
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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Running Head: Report
 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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Running Head: Report
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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Running Head: Report
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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