14-MM522_marketing_Plan_-_Exemplary_Marketing_Plan_3[1]

14-MM522_marketing_P - Marketing Plan 1 Sprints Service and Repair Modified Program Marketing Plan Keller Graduate School of Management Online

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Marketing Plan 1 Sprint’s Service and Repair Modified Program – Marketing Plan Keller Graduate School of Management – Online MM522 John Doeman July Session 2009 Final
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Marketing Plan 2 Executive Summary Sprint Nextel is known as a top tier telecommunications company “offering a comprehensive range of wireless and wire line communications services, bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving almost 49 million customers at the end of the second quarter of 2009; industry-leading mobile data services; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone” (2009, Company Information ). Sprint must execute on four strategic imperatives to achieve their mission statement of “making it easy for customers to achieve mobile productivity by providing the best value for rich mobility operating the best mobile data networks, simplifying the complete customer experience, and enabling compelling innovation on their networks (2009, Company Information ).” These imperatives are to 1) reduce churn and the number of calls placed to Customer Care, 2) deliver simplicity and value, 3) reclaim leadership in the market place and 4) attack disproportionate cost drivers in their business. Sprint expects to generate approximately $34B or revenue, adjusted OIBDA margin of 23%, and end the year with around 50 millions postpaid and prepaid subscribers. However, the wireless industry is extremely competitive, with little core postpaid growth remaining, as the US is heavily saturated. This means each competitor must put every effort forward to retain their current customer base to maintain their revenue stream. Increased profitability will occur through technological advances, which will drive improvements in network coverage and speed. The top tier companies are now focused on improving their network’s capabilities, which is why improving all customer service programs is a priority. The focus of this plan is to improve the
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Marketing Plan 3 Service and Repair program to not only remain competitive but to exceed the services obtained by Sprint’s key competitors, Verizon and AT&T. If Sprint ignores this opportunity they will continue to see an exodus of their current subscriber base. By improving these services in the trial market of Dallas, Texas, they expect to generate incremental margin of $4.5M, or go from a profit margin of 9% to 15% within a year. Based on the forecasted churn improvement, they would experience an improvement of customer lifetime value of $184 (from $1,395 to $1,579 per subscriber). Sprint expects to continue the trend of improving their customer service scores and this
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This note was uploaded on 11/15/2010 for the course MM MM552 taught by Professor Vincentonline during the Summer '10 term at DeVry Denver.

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14-MM522_marketing_P - Marketing Plan 1 Sprints Service and Repair Modified Program Marketing Plan Keller Graduate School of Management Online

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