Marketing Manager’s Problem Segment : 17 – 25years –College students –Undergrad & Graduate Levels Need Survey to gain an understanding of the youth (17-25 years) cell phone consumer market. Including: –Attitudes towards phones –Perceptions of how phones should be (service, features, phone quality, etc.) Address problem with lack of consumer knowledge about the Alltel brand. Naughty

Marketing Are Alltel’s current commercials relevant for the youth/young adult segment? What kind of “celebrity” would play well with this segment? Does Alltel even need celebrities to market to this segment (see: Cingular)? What about showing young people and using humor in commercials? Sara(h)

Marketing problem To understand the need gaps that exist in the minds of the youth To increase awareness for the Alltel brand To induce interest and trial of the brand ROAR

Research problem Drivers of purchase- things youth consider during purchase Key decision makers- and influencers Current sources of information about cellular brands/carriers Brand awareness Current perception about existing brands Personality attributes of existing brands ROAR

TARGET AUDIENCE Youth age between Include undergrads, grads Ask if they have a cellular phone. If yes, are they on family plan, if yes what service. If they don’t have a cell phone would they consider to buy one. what do they look when they go to buy a cell phone (give choices and ask them to rank in preference)? This would help to determine the factors they look at when the buy a cell phone and cell phone service. One Matt

Definitions Management Decision Problem = What should be done to improve Alltel’s market share in the youth/young adult (ages ) wireless market? Research Problem = To determine young adult preferences and purchase intentions for the wireless market Sara(h)

Research Problem Specific Info: –Demographics Male/Female Income: Parent vs. student Education: Parent & Student Race/Ethnicity –Purpose of having cell phones Talking/communicating with friends, family, work Text messaging, games, music, web (access to information), emergency, movies, etc. –Current Carrier? Switching of carriers (how many times? reasons?) –Parent or youth main influence on carrier? Naughty

Family… Matters ? Family details like who do they stay with or how many members are there in their families. Would they be willing to use internet or IM on their phones if they were explained the right procedure to it. What do they think about the concept of Hello Tunes? One Matt

Decision Makers Parents? Children? Who is paying? How much of influence does decision makers have? Nice

Current Usage Carrier now? Do you have a cell phone now? How long have you been with current wireless provider? Price of current plan Features on phone Why you with current carrier? Nice

Preferences What is most important to you when considering a wireless carrier? Is it rate structures, technology, handset style, or coverage areas? What is the key driver? Sara(h)

Products/Services Needs Wants –Rate plans Prepaid Multimedia Music Nice

Factors that influence the target audience If they look at the cell phone features like the outer look, color screen etc or they think about the plan too. Are they aware of Alltel? do they know they have unlimited nights and weekends If not would they consider switching. if not why so? One Matt

Handset Does your current phone have a camera? How often do you use it? What is important to you on your handset? What is absolutely essential? What things can you do without? Do you use the Internet on your handset? How often? How important is text messaging? Ring tones? Sara(h)

Handset If the opportunity to upgrade your handset every three months was written into your contract, would this be attractive to you? Do upgrades matter? How important are sim. cards (e.g., devices which save phone numbers, pictures, ring tones, planners, etc.)? Would you pay extra for them? Sara(h)

Switching Costs What would lead you to switch carriers? Why did you choose your current carrier? Are you satisfied with your current carrier? Why or why not? What are wireless carrier deal-breakers? Sara(h)

Longevity How many different cell phones have you had? How may wireless carriers have you had since using a cell phone? How often do you think you should keep a cell phone before upgrading? Sara(h)

Complexity Do you understand how to read your bill (e.g., do you understand how you are billed for the time you spend on the Internet)? Are there other things you don’t use on your handset because you either don’t understand them or are worried about being billed for them? Sara(h)

Brand Awareness/Perception Price Quality Consideration of other wireless providers Nice

Advertisements Ask them have they seen the Alltel ad in television? If yes then do they like it? What brand ambassador would you like to see to promote Alltel? Do they feel they took the service because of brand ambassadors they had? cool, funky advertising? If not the brand ambassadors, what are the other factors that influenced them to buy their current cellular service. One Matt

Associations What do they associate their cell phones to (helps in deciding what message to communicate) One Matt

Perceptions of Alltel vs. Current Carrier Perceptions of which carriers offer which features/services (mobile-to-mobile, roll-over minutes, free long distance, no roaming, free text messaging, etc.) –Cingular, Verizon, T-Mobile, Sprint Perceptions of Brands’: –Price –Physical phone selection –Features (music, internet, text, picture messaging, games, etc.) –Quality of service: Customer Service, Phone coverage (Calls dropped?), Warranties, Insurance Naughty

Psychographics Culture Hobbies Graphics Music—Genre Ty Pennington Interests Phone Choice Nice

Music Do you currently own an iPod or other mpeg player? Are mpegs important to consider when purchasing a handset? Sara(h)

Research problem Media habits – activities that can be tapped into Specific features sought out for Satisfaction levels and need gaps if any with current carriers/brands ROAR

Questions …and more questions! Average bills, average expenditure on other services like ring tone downloads, games etc. Their perception of price i.e. do they think they pay more or do they consider the price they pay to be fair. Complaints that they have with any service or some change that they would appreciate (not in cell phones, only in the service). One Matt

Demographics Sex Age Race Level of education Family income Nice

Organization, Routing What will be the initial screening questions? “Do you currently have a cell phone?, Are you considering purchasing a cell phone?, If you would never consider owning a cell phone, what are your…” What sections of the survey will different respondents to the screening items answer?

Brand Image and Awareness of Wireless Providers Awareness Perceptions Competitors Associations Handset brand “Determine the brand image of Alltel and of its competitors”

Decision/Choice Peer influence Family influence Current usage “I chose my wireless carrier…” “Determine the selection process for the age group; how did they come to choose their wireless carrier.”

Features Music Text messages Downloads Handset Complexity of features Complexity of pricing Determine the specific features that will affect carrier selection

Quality/Performance Negatives Switching costs Overages Pricing Dropped calls Coverage What become the motivations for switching carriers; what become the drivers in carrier selection?

Psychographics/Demographics Music genre Activities, interests Income proxy Age Year in college Car Rent Identify the variables for reaching an attractive target segment(s); what classifications provide the best direction for targeting.