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A LWAYS L OCAL Eric Lee Eric LeMay Léa Leduc Berryman Sharon Luk Sarah MacKay.

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Presentation on theme: "A LWAYS L OCAL Eric Lee Eric LeMay Léa Leduc Berryman Sharon Luk Sarah MacKay."— Presentation transcript:

1 A LWAYS L OCAL Eric Lee Eric LeMay Léa Leduc Berryman Sharon Luk Sarah MacKay

2 B REAK E VEN A NAYLSIS 125,574Subscribers ($6,278,708 in Revenue) 1.64%of Rogers customers 30.60%of Targeted Rogers customers 0.605%of Canadians who own a cell phone

3 F INANCIAL A NALYSIS

4 M ARKETING 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 M ARKETING MIX Pricing $45 monthly service fee with Canadian Long distance Saver 125 $45 monthly service fee with AlwaysLocal Cost of the add-on$15$5 Number of short distance minutes 400 Number of long distance minutes 125400 Monthly bill $60 $50 Cost per long distance minute $0.12$0.02 Cost per additional long distance minute $0.35 * Cost of new SIM card = $15

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

7 D ISTRIBUTION 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 C ONSUMER AND M ARKET P ROFILE Target market People who make a lot of long distance calls 1. 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 C ONSUMER AND M ARKET P ROFILE 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 C ONSUMER AND M ARKET P ROFILE 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 F OREIGN E NTRY P OTENTIAL Country: Germany Extensive transportation infrastructure Protection of intellectual property Currency Entry Strategy: Licensing agreements with German firms for the new SIM card technology

13 B IBLIOGRAPHY 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 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/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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