Strategic Project for Telx Inc

Gururaj B, Marta L , Mehtab Singh, Rajni J, Roushelle L, Arunraja N

Table of Contents

• Company Overview• Company Product

Analysis• SWOT Analysis• Opportunities &

Implications• Segmentation• Positioning• Data Analysis• Problem Identification• Marketing Objectives• Strategies• Tactics• Implementation• Budget• Implementation

Calendar

Company Overview

Telx-Inc., established in 2003, is still developing as a Canadian broadband internet, telephone, long distance and cable TV service provider. They look to use developing innovation of wireless technology.

Telx-Inc. offers high speed internet, long distance calling to any place in the world and telephone and cable TV of high caliber. The company services both the residential and commercial markets

Services - Residential

1.Long distance calling: Telx Access Service gives an advantageous approach to place long distance calls without hidden expenses, contracts or the need to switch suppliers.

2.Broadband VoIP telephones: With Telx technology, the Broadband connection can be used as a phone service without the hassle of replacing the existing system or changing the current phone number. It empowers voice phone by bringing to work high velocity Internet connection. A broadband telephone uses the same IP organize as the Internet administration.

3.High Speed Internet work at paces somewhere around 7.1 and 50 megabytes for every second. Some rapid internet connection work at up to 100 megabytes for every second.

4.Internet TV- Telx IPTV offers more than 100 TV channels and content from Russia and Ukraine 24 hours a day. Using a Set Top Box subscribers can view their favorite television channels. Set up is very easy and requires no advanced technical expertise. Internet TV makes it conceivable to view the same TV stations on an internet empowered gadget.

Company Overview

Services – Commercial

Telx offers PBX (Private Branch Exchange) service to enterprises. They have a hosted PSTN that can be customized based on the customers requirements.

Company Overview

Competitors Price Comparison

Country Name/ Service Providers

Telx Comwave Primus Rogers Bell

AUSTRALIA $0.25 $0.19 $0.30 $0.30 $0.54AUSTRIA $0.25 $0.29 $0.30 $0.30 $0.75BARBADOS $1.29 $0.27 $0.14 $0.40 $0.96BRAZIL $0.59 $0.49 $0.30 $0.50 $1.29BRITISH VIRGIN ISLANDS $1.49 $0.14 $0.22 $0.28 $0.97UKRAINE $1.29 $0.89 $0.10 $0.15 $1.50USA $0.10 $0.29 $0.50 $0.50 $0.45-0.75VENEZUELA $0.29 $0.19 $0.30 $0.31 $0.98RUSSIA $0.54 $0.29 $0.50 $0.90 $1.40INDIA $0.49 $0.19 $0.14 $0.70 $0.95

Long Distance Call

SWOT AnalysisStrengths Opportunities

• Efficient and quick customer service(All customer queries/complaints are resolved within 24 hours)

• Provides 100 Russian and Ukrainian channels free as promotional plan.

• The Ukrainian community has grown 2.5% since 2006 and they are the 6th largest community in GTA.

• Since 2003 Internet usage and population growth in Canada has increased from 40.3% to 90.9% in 2013

• Understanding of causes of attrition

SWOT AnalysisWeaknesses Threats

•High attrition•Company website is poor, does not have enough information about plans•Marketing activity is limited to Russian and Ukrainian communities•Data collected but not used•They have no understanding if customers attrited or lapsed •Very limited marketing budget

•Competitors pricing strategy

•Massive amount of marketing budget spend by competitors

Opportunities and Implications

Issue/Opportunity Marketing Implication

•Poor understanding of causes of attrition

•The Ukrainian community has grown 2.5% since 2006 and they are the 6th largest community in GTA.

•Since 2003 Internet usage and population growth in Canada has increased from 40.3% to 90.9% in 2013

•Very limited marketing budget

• Need to identify and address the causes of attrition to take full advantage of customer acquisition opportunities

• Focusing marketing efforts on the Ukrainian community limits ability to attract a much larger and faster-growing mainstream market

• Database marketing techniques

• Start investing in marketing activities.

Segmentation

• Segmentation is required to Identify your customers to generate increased revenue from existing customers while attracting new ones .

• This helps to maximize your acquisition, retention, cross-sell and up-sell opportunities

• Demographic Segmentation : Customers aged between 25-45, Canadians and foreigners. People

who live in condos, speak either Spanish, French, Ukrainian and English.

Income varies from 50,000-100,000 annually.

• Geographic Segmentation: Currently customers are from70% Etobicoke & North York5% Richmond Hill5% Downtown (Toronto)20% MississaugaGaining more customers from Downtown (Toronto),

Richmond ,Hamilton, London

Segmentation

Segmentation

• Psychographics: Strong affinity for community • Behavioural: Less adaptive for frequent price variation. Does lot of research

before commitment. Expects lot of flexibility in services and loyalty programs

Target Audience

• For students and professionals who are unhappy with their current service providers

• Existing customers (active and inactive)

Positioning

Telx-inc is a telecommunication service provider that offers flexible plans to people who are in search of high speed internet and long distance calling at affordable prices

Telx Customer Base tableYear Subscriptions

Active Customers

Retention Rate

Attrition rate

2003 786 78 10% 90%2004 1072 289 27% 73%2005 1060 350 33% 67%2006 1164 442 38% 62%2007 1321 780 59% 41%2008 987 414 42% 58%2009 1020 490 48% 52%2010 1172 680 58% 42%2011 1096 690 63% 37%2012 1224 845 69% 31%2013 1152 830 72% 28%2014 1232 1085 88% 12%Total 13286 6973 49%

The above table is an estimated summary of the annual subscriptions receivedand withdrawn since 2003. Attrition rates are falling however acquisition is disappearing.

Data Analysis

Data Analysis

Problem Identification

How to accelerate new customer acquisition?

Marketing Objectives

• To acquire 3000 more customers by the end of 2015

• To differentiate between the lapsed and active customers

• To increase advertising spend by atleast implementing marketing strategy with higher ROI

Strategies

• Incentivize referrals from active customers

• Focus acquisition efforts on driving traffic to a website that is easy to navigate

• Reactivate dormant customers with special offers and incentives

• Promote the service to the prospects with matched profile - telemarketing

Tactics

Strategy: Incentivize referrals from active customersTactic: Email campaign, College campaigns

Strategy: Focus acquisition efforts on driving traffic to a website that is easy to navigate

Tatcic: Developing Website appearance, Social media Marketing

Strategy: Reactivate dormant customers with special offers and incentives

Tactic: Adding the billing cycle details to the database

Strategy: Promote the service to the prospects with matched profile

Tactic: Telemarketing

Implementation- Email Campaign

• Email Marketing In-house:

1. Sending personalized emails to active customers once a quarter asking them to refer a friend/acquaintance to improve customer acquisitions and build customer loyalty. The referral will receive 30% off their next billing.

2. The email campaign will be send to the in house list of (number of valued customers) valued customers.

3. The estimated cost for running an email campaign is anticipated to be around $4740 / year and the expected Response Rate is 1.80%

Implementation- College Campaigning

Conducting campaigns at colleges like George Brown College, Centennial, Senecca, Humber. This helps in acquiring new customers and also creating a new database consisting of students’ emails. 1.Expected Response Rate 1.40%2.Expected number of sales 140

Implementation – Website Appearance

Implementation – Website Appearance

Implementation – Website Appearance

Implementation – Social Media1. Targeting social media website such as

Facebook, Twitter etc. Starting conversations with customers over Facebook and Twitter.

2. Announcing offers and educating customers about existing plans on Facebook, Twitter. Creating polls and surveys once in three months.

3. Targeting professionals through LinkedIn. 4. Brand Promotion Cost $1805. Creating content for Brand will cost $226. Expected Response Rate 0.05%7. Number of Sales expected 60

Implementation - Database• Database field collected from customers and stored in database

is as follows:

⁻ Customer ID (auto generated)

⁻ First Name -Last Name

⁻ Street Address -City

⁻ Province -State

⁻ Country -Postal Code

⁻ Telephone number -Email

⁻ Preferred language

⁻ Comments (allows them to keep specific notes that relate to specific client preferences etc.

Implementation – Recommended Database

• Additional information stored in database is as follows:

⁻ Customer ID (auto generated)

⁻ First Name -Last Name

⁻ Street Address -City

⁻ Province -State

⁻ Country -Postal Code

⁻ Telephone number -Email

⁻ Preferred language

⁻ Comments (allows them to keep specific notes that relate to specific client preferences etc.)

⁻ Billing Information - Date of subscription

Implementation – Recommended Database

How the additional fields are used:

•Billing information provides details of customer spending rate (Monthly billing details ), current service plan and usage. • Spending rate helps to analyse the customer behaviour and by tracking the usage we can offer exiting plans to current customers and retain them.•Date of Subscription – Comparing the billing information of a customer with this field helps to identify loyal customers.•When the customer stops using the service, we should bill the customer till they cancel the service. This will help differentiate lapsed and active customers.

Implementation- TeleMarketing

• Telemarketing In-house: 1. Create an alert to notify about inactive customers (specify

duration, incentive to come back)2. Expected Response Rate of 1.10%3. Number of sales expected 154 with $367.79 cost per

response• Telemarketing Contact List:

1. Contacting 50000 prospective customers with 1.50 expected Response Rate

2. Cost per response is $4 with expected sale of 750

Budget