verizon presentation
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Verizon FiOS
Mature Demographic50+
Agenda• Business Challenge• Executive Summary• Survey Methodology & Demographics• Market Landscape• Competitive Landscape• SWOT Analysis• Mission• Goals and Objectives• Marketing Strategy• Controls
Business Challenge
• Develop a strong Marketing Plan to increase the FiOS market penetration in the mature Pittsburgh market.
Executive Summary- Use traditional media to attract potential mature customers to Verizon FiOS
- Offer extended contracts, non renewal trial subscriptions, and lower pricing.
- Team with Terry Bradshaw in Marketing Campaign
- Used surveys which found that Comcast has the majority of market share in Allegheny County.
- Also showed that price seems to be the most important factor to customers.
- Recommend that Verizon increases Marketing towards the mature demographic in Pittsburgh
- Recommend that Verizon offers lower price, extended contracts, and non auto renewal plans for trial memberships
Survey Methodology & Demographics• Survey methodology
– Facebook– Twitter– Polldaddy.com
• Survey demographics– Pittsburgh residents aged
50 and over
Questions Asked1.What is your age? (Qualifier)2.What is your gender?3.What is your annual income?4.Do you live in Allegheny County?5.What cable/internet service do you currently have?6.Do you rent or own your home?7.What is important to you in your cable/internet service?8.What is your satisfaction level with your current service
provider?9.How many hours do you currently spend per day watching
television or using the internet?10.What price would you like to spend for your cable/internet service?
Survey Results
Survey Results
Market Landscape• Population: 1,231,527 Gender Age Groups
Median Age 41.2 years oldMedian Age (Male) 39.1 years oldMedian Age (Female) 43.2 years old
Gender
48%
52%
Market Landscape
Race Groups Education Level White—998,821
Black—159,897 Hispanic—25,032
Asian—34,487
Market Landscape - Income
Median household income $52,267
Mean household income $70,243
Market LandscapeMajor Industry
BreakdownEducational Services, health care, and social assistance
28.4%
Professional, scientific, and management services
11.5%
Retail Trade 10.9%
Arts, entertainment, food services 9.1%
Salary 510,598
Government 61,480
Self employed 26,681
Stay at home 670
Pittsburgh’s Working Class
Competitive Landscape- Verizon2012 Financials and Operating Statistics
Net Income Attributable to Verizon $8.75 billion Operating Cash Flow $31.5 billion Capital Investment $16.2 billion
Verizon WirelineRevenue (residential and business) $61.4 billion FiOS TV customers $4.7 millionFiOS Internet customers $5.4 billionAccess lines $22.5 million
#15 Ranking among Fortune 500 companies99% Percentage of Fortune 500 companies that we serve#1 FiOS is American’s top-rated broadband service2,700+ Cities in 150+ countries are connected by our Global IP network
Competitive Landscape- Verizon
Verizon FiOS● Nation’s largest all-fiber network serving residential and small-business
customers with FiOS high-speed fiber services ● 99.9 percent in-network reliability ● Average of 1 billion calls connected per day ● Multiple connections with Verizon Wi-Fi ● Verizon security services offers protection and back-up
JD Power Award
Competitive LandscapeComcast
2013 Financials and Operating Statistics
Consolidated Revenues $6.4 billionNet Income Attributable to Comcast $6.8 billionOperating Cash Flow $21.4 billionCapital Expenditures $6.9 billion Declared Dividends $0.78Reported Earnings per Share $2.56
Competitive LandscapeComcast
Major Factors
Ranks among top 50 companies for commitment to community
Comcast cable is the nation's largest video, high-speed Internet and phone provider to residential customers under the XFINITY brand as well as to businesses
SWOT Analysis• Strengths
– Faster speeds– Smaller company– Wireless infrastructure
• Weaknesses– Smaller company– Perceived as more expensive
• Opportunities– *Customer service
• Especially with possible Comcast + TWC merger
– Price lower– Take FIOS to smaller cities/suburbs
• Threats– Possible Comcast + TWC merger– Direct TV
Mission
We will launch an integrated campaign focused on capturing the mature population in the Pittsburgh DMA.
Goals and Objectives
• Goals– Capture the mature population in Allegheny County.– Focus on building brand equity with mature
population.• Objectives
– Increase Verizon’s market share in the 50 and older demographic by 15% in the Allegheny County DMA.
– Increase sales of television and Internet services to current mature customers by 12%.
Marketing Strategy
– Create special offer to appeal to mature customers.
– Promote new mature spokesperson executing integrated marketing campaign targeting prospects matures.
– Get more customers in the mature market to upgrade their television and internet services.
Tactical PlanSpecial Offer
•4 year, price lock, $69.99 Triple Play•Complimentary 2 year AARP membership•Free installation
– Approach• Direct Mail• Television• Radio
Tactical PlanSpokesperson
•Terry Bradshaw•New offer, quality of product•Appear on direct mail•TV
– Local• KDKA, WPXI, ROOT Sports,
– National• ESPN, Golf Channel, NFL Network, NBC Sports
•Radio– 105.9 The X, 102.5 WDVE, 97.3 The Fan
•Mature specific transportation– Access vehicles– Busses
Tactical Plan
• Offer a 3 month free trial, with no auto renewal, to TV channels relevant to mature customers. – HBO, CINEMAX, SHOWTIME, All the ESPNs, GOLF
NETWORKS (lookup)
• Bundle internet with TV
Upgrade Services
Schedule• Send out direct mail by August 1st, 2014
• Start Promotions on August 1st, 2014
• Launch Television advertisement on July 15th,2014
• Launch radio advertisement on July 15th,2014
• Have vinyl signs placed on buses and access vehicles by July 15th,2014
Controls• Measure sales of new offer• Measure market share• Measure tactical performance
– Direct mail > Response of contact rate– TV > TV Specific URL
• Measure total sales
Contingency Plan• If sales are 10% lower than expected, we will
add more television and radio advertisements.
• If direct mail campaign does not yield a 45% response, increase direct mail services with marketing partners by Sep 1st, 2014