Marketing Strategies of Telstra: A Report on Market Analysis and 7Ps

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Marketing Management
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Executive Summary
The report consists of a brief description of Telstra, with an explanation of mission and vision
statement of the company. The report will include 5 C’s of the company, i.e., company,
customers, competitors, collaborators, and context. The report consists of ways of collection of
information and the learning from the same. It will develop a marketing strategy after conducting
research and analysis on market segment in which the Telstra aims to deliver its products. A
detailed description of marketing mix and its 4-7P’s will be discussed to understand the quality
measures and pricing policies which Telstra shall use to attract its customers.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Issue 1..............................................................................................................................................4
Issue 2..............................................................................................................................................6
Issue 3..............................................................................................................................................8
Issue 4............................................................................................................................................10
Issue 5............................................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Introduction
Telstra is a telecommunication sector company of Australia. Telstra Corporation Limited
operates and builds the network of telecommunication and mobile, pay television, markets voice,
internet access, and other products and services. The report provides various issues faced by the
company in relation to the marketing of the products and services of Telstra. It will provide the
description of the company and its purpose by analyzing its vision and mission. It will conduct a
market analysis and understand the target audience and market segment. The report will consist
of marketing mix and 7 P’s which determines the quality of the product and pricing of the
products, etc.
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Issue 1
Telstra Corporation Limited is a telecommunication company which provides services like
mobile, market voice, telecommunication networks, pay television, internet access, mobiles,
other products and services. The CEO of Telstra is Andy Penn, who is facing struggle in the
market value of the company which is declining. It was founded in 1975 and headquartered at
Telstra Corporation Centre Melbourne, Australia. It serves it products and services all over the
world. In 2017, the total revenue of the company was $ 26 billion. Telstra provides its services
internationally as well. Telstra believes that customer service is their ultimate goal (IBIS World,
2018).
The purpose of Telstra telecommunications is to create. Telstra aims to create a future for
everyone.
The vision of Telstra is to provide benefits to the society and businesses. It aims to become one
of the leading technology companies with global partners, global capabilities, and global reach.
The services and applications provided by Telstra are based on fast, high quality, secure and
reliable telecommunication network. The employees of the Telstra focus on delivering the
network for the future which provides speed, unparallel coverage, security and reliability to the
customers. It aims to launch 5G technology, to provide its customer high speed internet.
The mission of Telstra is to provide solutions by building technology which is easy to use,
simple, and create a value in the mind of the customers. It strives to know its customers and
serve them better than its competitors (Smith, 2015).
The values include integrity and trust, respect and service, accountability and teamwork, show
that the company care, and work together.
Slogan used by the Telstra Company is “to create a brilliant connected future for everyone”.
The company has made an improvement in its slogan to “it’s how we connect” (Homewood, et.
al., 2016).
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The market orientation is the concept of marketing which includes production concept, concept
of product, concept of selling, concepts of societal marketing, and concept of marketing. Telstra
follows the concept of societal marketing which explains the demands and interests of the
customers available in the market and delivers the results. It aims to deliver the products and
services to the customers more effectively in comparison to its competitors. Telstra focuses on
the profitability of the company, interests of the consumers and customers, and welfare of the
society. It provides the services and products to the customers at a cheaper cost when compared
to the competitors. By conducting SWOT analysis, Telstra can determine its strengths,
opportunities, weaknesses, and threats of the company. The strengths of Telstra include reliable
suppliers, good returns, stronger dealer community, it is successful in analyzing the marketing
strategies, and it has gained success by performing well in new markets. The weaknesses of
Telstra include it requires more investment for the latest and new technologies; it shall conduct
better marketing of its products, etc. The threats includes less supply of raw materials and
innovative products, less skilled labor, threat of foreign currency fluctuations, competitors in the
market, competitors use new and latest technology in its business operations. The opportunities
include reduction in the transportation cost, digitalization, increase number of customers through
online channel, lower inflation rate, etc.
Telstra provides telecommunication services to its customers to provide them a mode of channel
of contact. It aims to provide them a high quality service and increased pace in internet.
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Issue 2
Telstra is the largest telecommunications company operating in Australia. It builds and operates
telecommunication networks, internet access, television services and other products and services.
As Telstra is one of the leading companies in its sector, Telstra has various strengths, weaknesses
threats which are as follows:
There are various strengths of Telstra which helps in keeping it alive in competition and helps in
further growth of the organisation. Some of the strengths of Telstra includes successful track
record of producing new products. Good and highly successful marketing strategies. It has a high
success rate of integrating into various other companies. It has maintained a great bonding with
the suppliers of raw materials and its distributors.
Weaknesses refer to the areas where Telstra fails to give its best. Weaknesses are the issues that
prevent the organisation to perform at its highest and prevent it from achieving the organisational
goals and objectives. Weaknesses of Telstra include lack in efficient and proper financial
planning. It also consists of Low rate of integration with firms of different culture. Lesser
investment in Research and Development as compared to the competition present in the market
(Fern Fort, 2018).
There are various opportunities arising in the market which helps in successful growth of Telstra.
Some highly effective opportunities includes lower inflation rates, opening of new markets, new
taxation policy.As with rising opportunities there are some threats also which hinder the success
path of Telstra. The threats for Telstra include use of advanced technology by the competitors,
lack in regular innovation and less availability of skilled labours.
Customer base of Telstra includes consumers of telecommunication services from all over
Australia, including the rural, regional and remote customers. A wide base of the customer of
Telstra is formed by educational youth. Behaviour of its customers is very important for
successful growth of the organisation. Understanding how the customers buy and utilise the
product and services and what are their views regarding the quality is very important. Typical
behaviour that can be expected from the customers of Telstra includes customers showing
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loyalty towards the organisation lead by great quality products and services, customers giving
negative reactions due to poor quality, and some customers providing feedback to the
organisation regarding the quality of its products and services (Morley, 2015).
Collaborators consist of various partners including the suppliers, distributors which help the
organisation to make its products and services reach to the customers and generate revenue.
Suppliers and distributors plays and important role in the successful growth of the organisation
as being such a large organisation Telstra itself can’t provide its products and services to each
and every corner thus the suppliers, distributors and other partner helps in the expansion of the
business services. Its reliable suppliers provide raw materials at the required time and its strong
community of dealer promotes and helps in increasing sales of the organisation (Elcom, 2018).
Competitors also do play an important role in the success of Telstra. Presence of competitors in
the market means that the customers have different choices of products and service to choose
from. This makes the management of Telstra to think upon and plan accordingly to increase the
quality of their products and services so that the customer is more attracted towards them.
There are various other factors affecting Telstra which includes legal, political factors. Legal
factors help in deciding production and selling of the products and services allowed for the
organisation as per government rules. Political factors includes various types of government
policies affecting the business which includes taxing policies, market policies etc.
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Issue 3
a) What customers want?
Telstra is a telecommunication company which provides services like mobile networks, pay
television, etc. The customers of Telstra desire to have a quality of network coverage so that they
do not find difficulty in contacting with anyone the time they want. The customers want to have
a high speed internet access. The requirement of customers keeps on changing with the changing
time. Telstra aims to retain its existing customers by providing those services of their choice.
Customers desire to have high quality and high speed network at lower cost. There are various
opportunities available for the customers in which they can switch their network which can result
in reduction in the goodwill of the Telstra Company. In order to attain success, it is important to
analyze the demands of the customers and find ways to fulfill them.
b) Which competitors pose a threat?
There are three main competitors of Telstra available in the same industry in the marketplace.
These are Vodafone, Optus, and Virgin mobile. The competitors provide same products and
services with different offers in order to attract more customers. The competitors of Telstra make
various marketing strategies to survive in the market and beat the Telstra’s policies. The
competitors of the Telstra aim to compete in the market by providing higher quality products and
services. This creates a threat to the Telstra. Telstra conducts market research and make better
strategies to compete in the market and provide better offers and products to keep its customers
happy and satisfied and retain them. By providing better products it can be successful in attaining
more customers (Budde, 2018).
c) How the context of business is changing, if at all?
The business of Telstra is changing in various ways. In order to survive in the market and stand
against the competitors Telstra has to make certain changes in the policies and procedures and
strategies of the business. It will make changes in its marketing strategies so that Telstra can
attract more customers and gain higher profits. The company needs to make better marketing
strategies which increases the customer’s attraction and helps in increasing the revenues of the
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company. Telstra make changes in its business operations so that it earns higher goodwill in the
marketplace which attracts more customers and brings a sense of trust in the customers about the
product’s quality (Oliver, 2016).
d) What role collaborators play in the process?
The collaborators of Telstra play a vital role in the process of the business operations. They help
in making better decision making in relation to the marketing strategies. They help in promoting
products and services by publicizing on various online portals. They make decisions regarding
various business operations which are important for increasing the productivity of the company
and ultimate revenue and sales of the company. The Telstra make various necessary changes
with the support of its partners in order to gain competitive advantage. Collaborators share the
raw materials of each other so as to make the project successful. They help each other in case of
difficult times and using resources can conduct market research so that they can analyze the
needs and requirements of the customers (Burgess, et. al., 2015).
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Issue 4
Target market of Telstra is very huge. It targets anyone that uses and has access to
telecommunication services. Apart from Australia, it is now spreading its network in global
markets also as it has already built its offices in United States, United Kingdom and Asian
countries. For the purpose of remaining competitive in the market, Telstra has developed various
marketing strategies which includes choosing and focusing on a specific target market. Choosing
a target market helps the organisation to grow. It helps in focusing on that specific portion of the
customers that the organisation needs to reach which will help in putting more efforts towards
that particular sector. Some of the benefits of selecting a target market include building a more
effective marketing strategy. It would build a strong referral base. Proper time can be utilised in
the serving the best focused customers. It will eliminate that portion of the market which don’t
need to be focused much, this will be helpful in saving time and efforts. The most important
factor affecting the selection of target market is first selecting who are the ideal customers and
second what services be offered to them(Naya, 2013).
Selecting the ideal customers means identifying whom the business wants to focus for selling its
products and services. Unique demographics should be considered which includes age, gender,
income, location and their personal interests, problems etc. All these are helpful for the purpose
of finding out the best section on which the business needs to put the efforts.
Second is determining the services to be offered to the selected target market which means that
after it is known who the target customer is, it is easy for Telstra to determine the services that
needs to be provided to them. The product and services should be according to the personal
interests of the customers. It would be much easier to know about the problems and concerns of
the customers which will help Telstra in removing the problems and provide better customer
satisfaction.
Taking the age factor the market can be divided into children aged till 14, youths aging from 15 -
30, aging from 31 to 60 and old age people aged above 60. Telstra should focus on youths more
as its target market. As per the census of 2016, Population and Housing counted 12.8% youths
out of all Australian residents ("2016 Census - a ‘selfie’ of young people in Australia Summary",
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2017). Out of all the categories present in the market the telecommunication service are more
used by youths than any other. Hence, focusing on youths in the marketing strategy will increase
the sales and growth of the organisation. More number of people present in the target category,
more the number of sales and revenue generation for the organisation. An example of a strategic
plan is Telstra as their special SMS planned by focusing on the youths. These types of planning
and strategies help to build the customer base of the target market. Prepaid mobile services are
provided to youths to allow them some flexibility in their limited expenses.
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