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AlwaysLocal

AlwaysLocal. Eric Lee Eric LeMay Léa Leduc Berryman Sharon Luk Sarah MacKay. Break Even Anaylsis. Financial Analysis. Marketing mix. Product New SIM card technology: carry two phone numbers Available as a new “Add-on” to Rogers Wireless plans Two features :

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AlwaysLocal

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  1. AlwaysLocal Eric Lee Eric LeMay Léa Leduc Berryman Sharon Luk Sarah MacKay

  2. Break Even Anaylsis

  3. Financial Analysis

  4. Marketing mix • Product New SIM card technology: carry two phone numbers Available as a new “Add-on” to Rogers Wireless plans Two features : - Upgrade to total calling time - Offer of two phone numbers in two Canadian area code

  5. Marketing mix • Pricing * Cost of new SIM card = $15

  6. Marketing mix Positioning map High switching costs Expensive Frequent traveler My5 Local calls (Rogers) Short distance use Long distance use Nationwide 30 (Telus) Infrequent traveler 200 Canadian Long distance (Bell) Cheap AlwaysLocal Low switching costs

  7. Distribution • Sell directly to customers • Online • Purchase as an “Add-on” to existing plans • Pick up SIM card in Rogers retail stores • In-stores • Product offered in all Rogers stores (35 000) • Posters/active promotion in areas with high demand • Stores in major cities (e.g. Toronto, Vancouver, Montreal) • Stores near major universities (e.g. Waterloo)

  8. Consumer and Market Profile • Target market • People who make a lot of long distance calls • Students • Spend 81% of their disposable income on communications • 73% of cell phone owners are in 18-34 age group • High spenders: • Cell phone bill between $41 to 50 monthly • To compare, an average bill is under $36 monthly • Supported by baby boomers (parents) • 57.5% do not pay for their own cell phone bills PMB Online. (2009a Spring). Business Travel. Retrieved October 30, 2009, from Print Measurement Bureau. PMB Online. (2009c Fall), Occupation. Retrieved October 30, 2009, from Print Measurement Bureau.

  9. 2. Business professionals • Represent 7.4% of cell phone users • High spenders: • 43% spend between $36 to 50 per month on cell phones • 20% of Canadians between 20-64 travel on business • 5% travel over 5 times a year

  10. Consumer and Market Profile • Market Profile • Canadian wireless telecommunications services was worth $15 billion dollars • 21.5 million subscribers • Average of 400 minutes of monthly talk • Potential for rising demand/value: • 6% of Canadian households own only cell phones (20% increase in 2 years) • 75% of Canadian households had a mobile subscription • Saturation point has not been reached • Household expenditures on communications projected to grow 30% by 2015 • 400 minutes of monthly talk Euromonitor. (2009 January 20). Consumer Lifestyles. Retrieved October 25, 2009, from Global Market Information.

  11. Consumer and Market Profile Direct competitors Market Share Rogers Communications : 37% BCE inc. : 30.3% Telus Corporation : 28.6% Indirect competitors Fixed-line telephony VoIP Datamonitor. (2009 July). Wireless Telecommunications services in Canada – Industry. Retrieved October 22, 2009.

  12. Foreign Entry Potential • Country: Germany • Extensive transportation infrastructure • Protection of intellectual property • Currency • Entry Strategy: Licensing agreements with German firms for the new SIM card technology

  13. Bibliography • Burns, Enid. (2006 August 25), Teen, College students are most active cell phone users. Retrieved November 1, 2009, from http://clickz.com/3530886. • Datamonitor. (2009 July). Wireless Telecommunications services in Canada – Industry. Retrieved October 22, 2009. • Euromonitor. (2009 January 20). Consumer Lifestyles. Retrieved October 25, 2009, from Global Market Information. • Heller, David (2009 January 29), Grad school applications increase. Retrieved October 26, 2009, from http://media.www.gwhatchet.com/media/storage/paper332/news/2009/01/29/News/Grad-School.Applications.Increase-3603379.shtml • K, Hercules. (2009 October 6), CDMA carrier Bell and Telus to launch iPhone in Canada. Retrieved October 25, 2009, from http://business2press.com/2009/10/06/cdma-bell-telus-to-launch-iphone-canada/ • PMB Online. (2009a Spring). Business Travel. Retrieved October 30, 2009, from Print Measurement Bureau. • PMB Online. (2009b Fall), Cell phones, smartphones, Hhld Organizers.Retreived October 25, 2009, from Print Measurement Bureau. • PMB Online. (2009c Fall), Occupation. Retrieved October 30, 2009, from Print Measurement Bureau.

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