sprint pitch brief
TRANSCRIPT
NEW BUSINESS PITCH
Don't let a 1% difference cost you twice as much.
January 2017
NAME BRAND PITCH TYPE
Media
MARKET DATE
January 13 , 2017
The Data You Need to Win This Pitch
DESCRIPTIONTelecom giant Sprint is conducting a review of its media planning and buying assignment, the company confirmed Thursday.
The company had total advertising expenses of $1.3 billion in its fiscal 2016, according to its latest annual report. It’s estimated that more than $700 million of that total is earmarked for media spend.
MediaVest, part of Publicis Groupe, is the incumbent and is expected to defend. It has handled the assignment since 2011. The media review follows a creative review that the company held last year. In November it selected Droga5 as its creative AOR.
Sprint Conducts Media Review
thU.S.
Client Profile / Market
Sprint Corporation, commonly referred to as Sprint, is an American telecommunications holding company that provides wireless services and is an internet service provider. It is the fourth largest mobile network operator in the United States and serves 60.2 million customers, as of October 2016. The company also offers wireless voice, messaging, and broadband services through its various subsidiaries under the Boost Mobile, Virgin Mobile, and Assurance Wireless brands, and wholesale access to its wireless networks to mobile virtual network operators. The company is headquartered in Overland Park, Kansas.
FINANCIAL OVERVIEW- Source: AccessConfidential.com -
COMPANY BACKGROUND
MAIN COMPETITORS
2015 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
32,180
30,000
-
-
-
Mr. Roger Sole
Chief Marketing Officer
Ms. Melinda E. Parks
Marketing Director
DECISION MAKERS by
[email protected]@sprint.com
-
Wireless Telecom in the U.S.
250M Phone Users
In 2016
- Statista.com -
Phone UsersBy 2019
270M
- Statista.com -
Number of subscriptions to
wireless services(wholesale and retail)
- Statista.com -
395M Monthly data
traffic per smartphone in North America
- Ericsson -
3.7 GB
Wireless Telecom in the U.S.
256 BTotal revenue
- Ibisworld.com -
+2.6%Growth
- Ibisworld.com -
233,686Number of people
employed
49.3%Wireless-only Households
288.1 TAnnual Voice Minutes Used
1.89 TAnnual Text Messages
- CTIA.org -
- CTIA.org -
- CTIA.org -
- Ibisworld.com -
Market Share by Wireless Subscription
34.9%32.4%
16.8%14.4%
1.2%
- Statista.com -
10%
0%
20%
50%
40%
30%
Reasons of Choice
TOP 3 REASONS FOR CHOOSING CURRENT OPERATOR TOP 3 REASONS FOR CHANGING OPERATOR IN THE FUTURE
Data plan costs 4G / LTE Network availability / quality
Total monthly subscription cost
(including the phone, internet,
voice, SMS)
10%
0%
20%
30%
1 2 3
2015 2016
Data plan costs 4G / LTE Network availability / quality
Total monthly subscription cost
(including the phone, internet,
voice, SMS)
1 2 3
2015 2016
- Source: Deloitte -
Data Consumption Breakdown
Hispanic
Asian or pacific islander
Black or African American
White
Native American or Alaskan Native
WIFI DATA USAGE PER MONTH(MBs downloaded & uploaded)
CELLULAR DATA USAGE PER MONTH(MBs downloaded & uploaded)
The growing Hispanic market is top of mind for marketers today. As wireless carriers adjust rate plans and look to offer unlimited data packages, it’s a must to understand how consumers are using their phones and tailor packages to fit those needs and wants.
25 - 34
35 - 44
45 - 54
55 - 64
65+
WIFI DATA USAGE PER MONTH(MBs downloaded & uploaded)
CELLULAR DATA USAGE PER MONTH(MBs downloaded & uploaded)
CELLULAR NETWORK USAGE BY AGE
18 - 24
Stats: Sprint
$32.18B
Operating income firsttime positive in
Revenues 2015
$310MOperating Income
30,000Employees
9 YEARS
Sprint’s Network Performance Improvements
Sprint rolled out its LTE PLUS NETWORK
In 250 markets
52%more first place
RootScore Awardsin 70 markets,
as measured in thesecond half of 2016
1.37%Sprint hit its
record-low postpaidphone churn rate
in fiscal 2Q16
According to the 2016 US Wireless Network Quality Performance Report by J.D. Power,
Sprint is rankedas having the
second-highest network quality in five out of six geographic regions of
the US.
The 1 Million Project
ONE MILLION High School students across the United States who lack internet access will receive a tablet, laptop, or
smartphone on loan from Sprint to help them complete homework assignments.
The program has tapped nonprofits to recruit students for its nine-year venture and will provide those selected
with 3 gigabytes of high-speed data a month for the four years they’re enrolled in high school.
If students go past that allotted data, they’ll still have access to slower service.
Fast Food industry in numbersSprint’s Marketing
MARKETING BUDGET DECLINE
ANNUAL PAID MEDIA SPEND
$1.2 B
$782 M
$504 M
2006 2015
Sprint signed up Paul Marcarelli, who worked for years as Verizon's "Can you hear me now?" guy, as its own spokesman.
The commercials are part of a comprehensive marketing and communications plan started at the last NBA Finals. It include TV, print,
radio, digital, online marketing and advertising, plus a social media campaign, as Sprint goes for a "360-degree approach."
PITCHMAN’S HIJACK
Jan-Sep ‘16
HISPANICMILLENNIAL
CONSUMERS
QUICK DEFINITION:Hispanic Millennial Consumers
Hispanic consumers between 18 and 34 years old living in
the United States.Nielsen not only found that Hispanics have the highest
rates of satisfaction with their mobile providers, but also that they are the heaviest data users among multicultural
groups.
20%
40%
0
60%
13-17
• • •
• • •
18-24 25-34 35-44 45-54 55-64
53%FEMALE
46%SINGLE
61%WITHOUT CHILDREN
FASHIONLOVERS
1.33x
TECHIES
1.28x
PARTYGOERS
1.23x
BEAUTY & WELLNESS
1.32x
58%
Hispanic Millennial Consumers
Compare the Hispanic Millennial ConsumersDemographic with Sprint’s Audience
Sprint’s audience overlaps with our Hispanic
Millennial Consumers demographic by 58% in top interests, including:
Beauty & Wellness, Fashion, Technology
and Nightlife
HISPANIC MILLENNIAL CONSUMERS:FASHION
Sprint’s audience over-indexes as Fashion Lovers (1.25x)
They don’t dedicate much time to searching new trends
(Swayable Shopaholics 2.05x) and are obsessed with
accessories (1.91x)
SPRINT’S AUDIENCE CROSSOVERS
MEN’S CLOTHING CONSUMPTION WOMEN’S CLOTHING CONSUMPTION
TOP FASHION LIFESTYLES TOP FASHION WEBSITES
# NAME PENETRATION REACH AFFINITY
1 Fashion Enthusiasts 13.76% 6.18% 2.05x
2 Trendy 10.90% 9.55% 1.74x
3 Swayable Shopaholics 9.31% 6.28% 1.62x
1 3 5 7 9
SEE MORE
AFFINITY
Makeup Gallery
Yo Amo los Zapatos
Your Next Shoes
Be Glamorous by Lindsay
Amazing Hairstyles
HISPANIC MILLENNIAL CONSUMERS:BEAUTY & WELLNESS
Sprint’s audience over indexes as Fashion Lovers (1.25x)
They don’t dedicate much time to searching new trends
(Swayable Shopaholics 2.05x) and are obsessed with
accessories (1.91x)
FITNESS MEMBERSHIP
TOP BEAUTY LIFESTYLES TOP FASHION WEBSITES
# NAME PENETRATION REACH AFFINITY
1 Cosmetics Connoisseurs 11.07% 5.30% 1.84x
2 Active & Fit 7.91% 2.88% 1.40x
3 Self Applied Style 6.46% 7.14% 1.24x
# NAME PENETRATION REACH AFFINITY
1 Beauty Tips N Tricks 29.75% 0.04% 6.46x
2 IMujer 22.31% 0.64% 4.84x
3 Hairstyle Ideas 20.61% 0.24% 4.47x
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SPRINT’S AUDIENCE CROSSOVERS
HISPANIC MILLENNIAL CONSUMERS:TECHNOLOGY
Sprint’s audience over indexes as Fashion Lovers (1.25x)
They don’t dedicate much time to searching new trends
(Swayable Shopaholics 2.05x) and are obsessed with
accessories (1.91x)
TOP MOBILE PROVIDERS
TOP TECHNOLOGY LIFESTYLES FAVORITE ELECTRONIC GENRES
# NAME PENETRATION REACH AFFINITY
1 Techno Gamers 7.62% 1.79% 1.59x
2 Tech - Splorers 5.82% 3.14% 1.18x
3 Techno - Phobes 4.69% 6.56% 0.87x
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SPRINT’S AUDIENCE CROSSOVERS
HISPANIC MILLENNIAL CONSUMERS:NIGHTLIFE
Sprint’s customers under index as Party Lovers
(0.97x).
They have no substantial preference between Bars and Clubs, as both score
1.2x affinity points.
Like Hispanic Millennial Consumers they are fan of
Latin American Music (1.28x)
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FAVORITE NIGHTLIFE VENUES FAVORITE MUSIC GENRES
1 1.5 2AFFINITY
Latin American Music
Reggae & Caribbean Music
Dance & Electronics Music
Urban & Hip-Hop Music
Pop Music
1.2
1.0
0.8
0.6
0.4
Clubs & Discos Bars
AFF
INIT
Y
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SPRINT’S AUDIENCE CROSSOVERS
CONSUMER INSIGHTS SUITE
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