Case Summary: T-Mobile is the fourth largest cell phone provider in the United States. AT&T plans to pay $39 billion to buy Deutsche Telekom’s T-Mobile USA in a deal that is expected to attract intense regulatory scrutiny as it creates a new U. S. mobile market leader.
Key Marketing Issues Product T-Mobile provides a wide range of mobile phones with different features which target customers in terms of their communication needs and wants. Price T-Mobile consistently offers cheaper plans than its competitors Placement Operates in six different companies including the United States Competitors Sprint, Verizon, and AT&T (however merger was announced in March 2011)
Personal Case Analysis T-Mobile has fought to gain market share in a well established market. It has used celebrities, pop culture icons and ventures to brand T-Mobile as hip, young, and cool. T-Mobile is also dedicated to providing excellent customer service. Case Questions 1. What kind of brand image does T-Mobile want to build through its celebrity-packed promotion efforts?
As an unknown European brand, T-Mobile had to seek ways to create a definitive brand image in the United States among brands that were already well established. T-Mobile used a long lineup of celebrities in television ads and promotional events. The goal of the advertisement was not to just sell a lot of Sidekicks but to establish T-Mobile as a hip, young, and cool brand. 2. What celebrities should T-Mobile use in its advertisements? Why? T-Mobile should use young, hip pop-culture icons in its advertisements.
This is the market segment which their targeting, therefore it only makes sense to use celebrities that potential customers can relate to. 3. How would T-Mobile’s choice of promotional partners, such as Juicy Couture and the NBA, attract or discourage customers from selecting T-Mobile’s phone services? T-Mobile and the NBA is a natural fit – both brands are youthful, dynamic and rapidly growing. This partnership is designed to further fuel the T-Mobile USA growth engine,” said Mike Butler, Chief Marketing Officer, T-Mobile USA, Inc.
“As one of the fastest growing wireless carriers, T-Mobile has permeated pop-culture to become relevant and meaningful to the lifestyles of their young consumers,” said Heidi Ueberroth, NBA Executive Vice President. “We are confident that this wide-reaching partnership will further accelerate their growth in the wireless space. ” T-Mobile is confident that these partnerships will broaden its exposure and enhance its youth-targeted image. 4. In what ways is T-Mobile supporting its personal selling activities at the retail level?
T-Mobile mission is not only to remain at the top of its industry in customer service but also to eventually become the most highly respected service company across industries. To achieve this goal, T-Mobile’s CEO Robert Dotson and Chief Marketing Officer Mike Butler visit a large number of T-Mobile stores every quarter. Butler says the purpose of the visits is not to lecture employees but to learn from them: “We come away with a list of items we’re going to address to help deliver better customer service in the future. ” Many of the ideas expressed by T-Mobile employees have been incorporated by the company.
5. T-Mobile promotes its highly rated customer service as a selling point. Do you think it is effective against competitors that promote high-tech multimedia features? Explain. Although T-Mobile taunts its highly rated customer service as a selling point it can only go so far against its competitors. Cell phones have become an important part of everyday life for most people. Cell phones have replaced many devices from calculators, watches, GPS, and computers. With the growth of cell phone usage customers are demanding more high-tech multimedia features. Conclusions
T-Mobile had been position itself as the fourth largest cell phone carrier in the United States. The recent buyout by AT&T came as a surprise to many. The biggest losers of this deal are going to be the consumers. While AT&T and T-Mobile are going to try to spin it as a good deal to combine wireless spectrum assets, the fact is, T-Mobile USA is now out of the market. Works Cited http://www. nba. com/news/tmobile_051003. html http://www. cnbc. com/id/42186180/AT_T_and_T_Mobile_Merger_to_Create_Industry_Giant
http://www. washingtonpost. com/business/economy/atandt-t-mobile-merger-blasted/2011/03/21/ABHs3Y9_story. html