HI5004 Marketing Management: TPG Telecom's Strategic Analysis Report

This report provides a comprehensive analysis of TPG Telecom's marketing management and strategies. It begins with an introduction to the company, a brief organizational description, and its vision statement. The report then delves into TPG's marketing strategies, including an examination of the 5C's (Company, Customers, Collaborators, Competitors, and Climate) and a detailed SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. Furthermore, the report explores market research and analysis, including a primary survey to understand customer needs and identify potential threats. The report also analyzes the changing business context and the role of collaborators. Finally, it outlines strategies for market segmentation and brand positioning, offering insights into developing effective marketing strategies for TPG Telecom. The report aims to provide a thorough understanding of TPG's market position and strategic approaches within the competitive telecommunications industry.

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HI5004 Marketing Management Assignment
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HI5004 Marketing Management Assignment
Introduction
This report will entail a detailed analysis of marketing management and strategy of
TPG Telecom Company. TPG is famous among the biggest telecommunication service
providers in Australia. In particular the report will describe the organization in brief and also
discuss marketing orientation of the organization. Additionally, the report will include the
situational 5C`s, SWOT and PESTLE analysis. A marketing research to generate solutions
for challenges in launching the product will also be analysed by the report. Of course,
Telecom Industry is full of competition and the only factor essential for sustainability and
development of the industry is implementation of appropriate marketing strategies. The most
rampant competition in the Telecom industry concerns gaining the market share. Thus, one
technique to assess how the business is carrying on is comparing the market share
(Moghaddam and Foroughi, 2012, p. 19-24). At the end, the development of market strategy
should rely on the methods to improve the market share.
Brief Description of Organisation
TPG Telecom organization comes second after Telstra among the biggest Australian
telecommunication and IT companies, with its headquarter in Sydney Australia. The
company caters for a range of communication services to customers, for instance internet
access, network, telephone services and accounting services. When compared with other
telecommunication organization, the company has one of the largest fixed broadband
customer base and is focused to become the top provider of NBN services and the fastest
broadband services. Notably, the company has been generating a lot of revenue and profits in
the recent past in its growing phase. As such it is determined to extend its services all over
Australia and other countries too like South Africa and Philippines. In a sum, Telecom

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industries is rapidly growing. Many organization in this sector are striving to acquire more
market share using modern technologies. Other companies, like Vodafone pose threat despite
the fact that TPG Telecom and Telstra in the front.
Vision Statement
TPG Telecom focus is proving communication services that are fast, reliable, efficient
and affordable to customers. This implies the company aims at improvising the entire
communication and informational and technology services in Australia by issuing reliable
communication services at a fair charge for its multiple customers (Australia, 2010).
Marketing strategy
After Telstra, TPG Telecom organization is second largest in telecommunication
services. In incorporates particular marketing strategies that allow it survive in the market and
deal with the competitors. Ideally, Marketing strategy encompass the activities carried out by
an organization to create awareness of either a service or product to customers (Varadarajan,
2010). In short, the activities are carried in an orderly manner for purposes of promotion and
selling products and services.
One of the company`s strategy is launch NBN services to provide unlimited
broadband packages. Besides the company is geared towards a network capacity of its own to
limit traffic. Such a step will enhance its operation margin.
Products.
The organization provides specifically communication services. These include, fixed-
line broadband services, internet & data solutions, fiber optic assets and an increasing
network infrastructure.

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Analysing each 5C’s of organisation
Market trend.
Telecommunications has been a developing area due to the introduction of new
technologies. TPG telecom therefore does its market analysis using SWOT analysis and other
related theories.
SWOT analysis
Strength
1. TPG telecom has established a strong base for creating more networks infrastructure by
acquiring other networks, PIPE and AAPT. This step will improve the company`s fixed
broadband infrastructure within the Australia and other parts of the world.
2. Incorporating NBN services means a unlimited broadband packages at a fair prices
3. The company`s services are of quality and efficient and attracts all types of customers,
both in the small, medium and large sectors (Gershon, 2009).
4. By initiating and providing services beyond the country will be an added advantage to
compete with rivals.
Weaknesses
1. The marketing of products in TPG telecom is not sufficient. The products of the
company are not well positioned despite its success. This means the competitors can
easily manoeuvre their way to replace the product.
2. The company’s financial plan is not done well. According to an audit analysis, the TPG
telecom is able to spend funds in a more efficient manner than it does to date.
3. The ratio of profits and amount of Net contribution of TPG telecom limited is below the
industry average.

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4. Investment in research and development areas is low compared to the leading
organization in the industry. Ideally, the company has not been able to put up with the
top organizations, more so in being innovative regardless of spending above average in
research and development (Bocken, 2017, p. 81-96).
5. The company faces a limited success outside core businesses. Despite its leading
position in the industry, TPG telecom encounters hard time in moving to other products.
Opportunities
1. TPG telecom can increase the need of better network infrastructure, so as to improvise
data flow.
2. The company`s scope has been enhanced due to higher demand for network solutions.
3. National Broadband Network (NBN) will guarantees TPG telecom wider opportunities
and will ensure the sustainable growth of the organization.
4. Telecommunications and IT services, to other regions like New Zealand, South Africa,
will widen the scope.
Threats
1. High competition from other organizations. New technologies initiated by the competitor
could be a big threat to the industry (Reidy, 2015, p. 71).
2. Telstra is still leading amongst telecommunication companies in Australia.
3. The demand for products that contribute to higher profits is usual to fluctuate and change
in season effect on the company’s profitability.

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4. TPG telecom faces fluctuations in currency since it provides its services in different
countries, in particular political instability in most of the markets.
5. Change in consumer buying behaviour from online channel could be a threat to the
existing physical infrastructure driven supply chain model.
6. New rules and regulations on the environment could be a threat to certain existing
product categories.
Customers
The main customers that provide market to TPG telecom limited are residential
customers, small and medium businesses, large corporate enterprise and wholesale
customers. Generally, the organization is working towards satisfying the needs and demands
of every customer (Jaroszewicz, 2008, p. 52-59).
Collaborators
The collaborators necessary for implementing the process are retailers and suppliers.
These groups in the supply chain completes the chain and fulfils the demands of the
customer. More so, retailers are in charge of selling the connections to customers. Thus
generating additional revenues for the company.
Competitors
Telecommunications & IT are almost authentic demand by people in the modern
society. Therefore, the industry has been acknowledged by many people due to the high
levels of technology and revenue flow. The key competitors of TPG telecom are Telstra,
Optus, and Vodafone, Amaysim among other telecommunication organization.

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For instance
While TPG telecom plans to provide the fastest fixed broad band, a different mobile
service provider, Amaysim, also plans to take part in the fixed broadband sector. Which
means the entrance of Amaysim will be a challenge to the existing broadband connections of
TPG telecom sector. Apparently, the industry is very competitive but again favours the
emergence of new organizations since the demand is extremely high. The high capital costs
to and risk inquired are the only reason why the entrance of newcomers is made difficult
creating a stiff competition for the currently existing organizations. An increasing rate of
competition threatens the organization. The need to offer affordable products or services,
good quality, better network services are the few areas which need to be looked upon.
External affecting factors-
Technological factor
Technology impacts on telecommunication in different ways. Ideally, it new
technologies emerge everyday leading to frequent change on the technological methods used
in the organization. In this context, TPG telecom uses better optic fiber to facilitate a fast
transfer of data and reduce traffic in network and also uses better mobile service quality.
Telecommunication industry keeps change considering it is a dynamic field (Venkatram &
Zhu, 2012).
Social factors
The ultimate determinants of the performance of an organization are consumers. The
change in social preference and demands result to change in supply mechanism. Hence, in

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telecom industry, the most essential requirements of customers are commination services that
are fast, reliable internet services. All in all affordable.
Market research & analysis
Market research for an organization is a set of activities carried out to acquire
adequate information concerning the demand of a product or identifying opportunities for a
given brand. The base line for many successful businesses is the accuracy and vigorous
research which provide a sufficient information about customers, competitors and the whole
organization (Doole, Isobel and Lowe, 2008). The management in this case is able to predict
the success of a business before allocating resources in place.
Primary survey
Primary research encompass four stages which are planning, collecting, analysing,
and writing (Driscoll, 2011). The methods are observation, interviews, and surveys. The
process of conducting any primary survey must be formal and ethical (Brace, 2018). TPG
telecom organization carried out n primary research that its main objective was to establish
the extent in which the company is known in the market and also identify the current changes
in the industry. In addition, the study sought to know changing preferences of customers in
the telecommunications and IT services. The group included in the survey were, business
customers, whose primary requirements are of fixed broadband connections.
Customer needs
The survey showed that the customer mainly requires high internet speed, at an
affordable cost. Internet fixed broadband connections are mainly required for the business
processes and there is quite substantial emerging requirement for faster internet connections
for the smooth working of the business.

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Potential threat
According to the outcome in the survey, the potential threat for TPG telecom is
Telstra, which has largest market share. Telstra Corporation Limited is also a
telecommunication organisation and technology as well. Just like TPG telecom, its main
activity concerns the provision of telecommunication and information services in Australia
and other areas in the world. The company conducts its business through different segments.
These are, Retail segment which provides telecommunication products, services and solutions
across mobiles, fixed and mobile broadband, telephony and Pay television or Internet
Protocol and digital content. The Global Enterprise and Services segment issues sales and
contract management for business and customers within government. The Telstra Operations
segment provides overall planning, design, engineering and architecture and construction of
Telstra networks, technology and information technology solution (Rahman and Areni,
2009). Therefore to handle such a threat, TPG telecom must implement marketing strategies
successfully.
Changing context of business
The survey has also shown the changing trend among the business pattern. Customers
had to shift from Telstra to fixed connection and to other connections that are providing
better speed at lower cost.
Role of collaborators-
Collaborators include retail supplier of fixed connections, those play a key role in the
supplying process of the broadband connections. The survey showed that the importance of
collaborating services for the customers. Organizations whose retailers provides best services

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in lining and fixing up the broadband connections are most preferred by the customers.
Telstra and Vodafone emerged top in regards to collaboration services as per the research.
Opportunities & threats in the fixed broadband connections
Customers showed their continued need of internet connections that are fast and
reliable so as to solve their business commitments through the study. It was analysed that
there are ample of opportunities for cheap and effective broadband connections. However,
with a number of competitive organizations, the attraction of competitive customer seems to
be a great threat for TPG.
Developing marketing strategy
Market segment & positioning of brand
Market segmentation is an essential area in the marketing strategies for achievement of goals
by a business (Obaga et al., 2013, p. 2278-5612). It works such that, it allows for the
identification of esteemed customers from the overall population. The marketing strategy is
planned so as to keep market segment in mind (Tynan & Drayton, 2010, p. 303). The best
method to implement for successful marketing strategy is Segmentation, targeting and
Positioning (STP), which imply modern marketing methods and direct marketing (Lynn,
2011).
Potential Market segment
Companies acknowledge is not easy to appeal to a whole population due to different
taste and preferences (Yabs 2014). Marketing strategies must implement marketing strategy
needs that identify the need for appropriate customer. An assessment of a buyer who buys
what product and why the product is purchased is looked at in this segment.

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The main goal of TPF telecom is to provide the best network solution to business and
boost its shares in the fixed broadband services to customers. As a result, the organization
targets customers in small and medium business activities, large companies and residential
users. The main focus however of the company is business clients. Otherwise, other
customers, premium assist in improving the business and raise revenue for the company.
Proposition statement-
In the competitive scenario, it is appropriate to know the value statement of the
customer towards a product (Hassan, 2012). Decision pertaining investment and production
services are relied on by the customer change in demand and preferences. A valuable feature
of a given brand is the value proposition that an organization assures its clients.
TPG telecom after acquiring two networks, AAPT & PIPE, network cable
infrastructure of the organization has been able to grow. Moreover, it has achieved high-class
quality in terms of providing services. The world-class quality of the optic fibers, massive
network infrastructure, and cost-effective models for execution of various services are the
few extra-ordinary things. The organization has thousands of employees, about 6000 in the
technical team that assist in handling business demands in offering network solutions. All
these are the valuable features offered by the organization to its customers.
Brand positioning statement-
Brand positioning refers to seeing if the customers will prefer a brand over another
(Manhas, 2010). There are several methods to position a brand by offering a specific benefit
to a specific target segment at a specific price. Effective positioning strategy attracts enough
market.

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TPG telecom has differentiated its brand by proving better optic fibers and large scale
fiber network. The services of the fixed broadband will be provided with the better quality of
cables and wires. Immense network cable structure with the high quality of fiber network will
reduce the traffic flow and ensure faster internet connection. The fixed broadband
connections are provided at the affordable pricing. This brand positioning will be used more
often as a way to persuade the customers.
Analysis of the STP strategy
STP marketing strategy in simply modern marketing tool for differentiating brands by
different companies (Janiszewska and Insch, 2012, p. 9-19). The organization has clearly
identified a particular market segment, that is, business clients, cross checked the value of
customers, which is high internet speed at an affordable cost and advanced infrastructure as a
tool for positioning its brand in the market.
Developing Marketing Tactics
Marketing Mix
It is in order to plan a proper marketing strategies and techniques for acquiring
competitive advantage in a business environment (Pour et. al, 2012, p. 3275). The elements in
marketing mix thus are a tools that are directed in a manner to achieve the ultimate goal, with
the most priority satisfying the needs of a customer (Dereje et. al., 2014). TPG telecom
strives to plan its, an organization strives to plan its product, pricing, place, promotion,
process, physical evidence, and people using the 7P’s marketing mix strategy in accordance
with the needs of customers. Below is the marketing mix strategy for the TPG telecom
limited for successful execution of its product, say fixed broadband product-
Product

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TPG plans to provide unlimited fixed internet broadband connections. The quality of
the fixed broadband services provided by the organization will be highly developed with the
use of high optic fibers, massive network infrastructure etc. will increase the quality of the
product. Creation of massive network infrastructure of cables, throughout Australia & also in
a submarine will enhance the product quality.
Place
The immediate plan of the organization is first to increase the fixed broadband
connection within Australia. Further, extend its activities in other regions like South Africa
and New Zealand.
Price
TPG telecom has always used the effective cost model for its network planning,
infrastructure and other services. As such, the pricing will be very affordable and convenient
for the organization.
Promotion
The promotional activities by the company will include large scale advertisements.
Some of the advertising channels are newspaper, video advertisements on television and
radio (Romaniuk, J., 2009, p. 147).
Physical evidence
Making the position of the brand of network stronger position and excellent customer
services and complaints centre will be used as a strategy to attract customers.
Process

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The process is basically an advancement of internet connection development. It is a
cost effective process, for providing high-quality internet speed with affordable cost.
People
The organization has best technical expertise in the field of management for
promoting the fixed internet broadband connections. A good group of people is an important
part of execution and implementation of the marketing strategy.
Analysis of the Marketing Mix
Marketing mix strategy for the successful launch of the new product of the
organization has been made in accordance with the market research and market opportunities
(Fatma, 2014). The strategy includes the brand positioning of the product and differentiating
it from the existing products. The organization has highly relied on its massive network cable
infrastructure for high network speed and reduction of traffic congestion. This project has
made the connections highly cost effective & faster and reliable.
Promotions indeed plays important role in spreading information & knowledge about
the product (Frolova 2014). As it makes the product familiar with the prospective customers.
In context to our organization, it has chosen the large scale promotional activities through
advertisements, both video, audio and newspaper advertisement. The organization has also
implemented world-class processes for providing superior quality services to customers. The
personnel of the organization is also highly expert and technically sound.
Conclusion
TPG telecom limited is the second largest telecommunication services in Australia.
This report is the marketing strategy of one of its product, for instance fixed internet
broadband connection. The report has a brief description of the organization and description

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of its products. Marketing strategy has covered various aspects such as 5 C’s analysis such as
SWOT analysis, customer analysis, collaborators, and context about changing business
world. The marketing strategy includes target segmentation, value proposition and brand
positioning statement for the organization. A marketing research is conducted for knowing
the market before launching the fixed internet broadband connection. And the result of it
showed that preferences and needs of the customers, potential threat for TPG, role of
collaboration, and upcoming opportunities for the product for the organization. The overall
marketing plan suggested an outline for the product and methods to make it a successful
launch.

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