sprint brand audit
TRANSCRIPT
Historical Perspective 1899: Brown Telephone is founded in Kansas
1986: GTE Sprint and US Telecom merge
1983: Southern Pacific Communication Corporation acquired by GTE and renamed GTE Sprint
1988: US Sprint completed third transactional route
1992: United Telecom completes acquisition of GTE
1997: Sprint’s customer base grew to 7 million
1998: Began advertising ON-Demand Network (ION)
1999: First ION sell to residents in their home of Kansas City
1999: WorldCom offered $115 billion to Sprint
2005: Rogers Communications Inc. acquires Sprint Canada's, Call-Net
2004: Sprint Corporation and Nextel Corporation
2013: Sprint and Softbank announce completion of merger
2015: Sprint takes over Radio Shack
1984: United Telecom enters long-distance phone market
2000: Sprint backs out of merger with WorldCom
MergerAcquisitio
n Expansion
Target MarketLIGHT CELLPHONE USERS
• 52 years old and up • Use basic functions only (phone, data, good network, coverage)
• Willing to give up getting the highest quality of internet and phone services for a lower prices
• Do not require the best quality of services• Do not want to pay more for extra services they may not use
HEAVY INTERNET USERS • 14 – 55 years old • Have very high usage data (e.g. >10G) • Choose plans with unlimited high speed data and good rural coverage
• Look for the best value since plans with high data limit are very expensive
• Feel insecure and annoyed about being disconnected from the internet
Customers: 142.75 million Revenue: $16.74 billionTarget: Affluent young professionals in metropolitan areasPOD: Highest quality cellphone service in terms of coverage. Offers multiple services such as TV and Internet
Customers: 131.81 millionRevenue: $14.91 billionTarget: Young, white collar families in and around metropolitan areas POD: Bundle services (internet, cell phone, cable/satellite) offer value when ordered together
Merger with DirecTV creates synergy by offering unlimited data for streaming if you buy DirecTV and AT&T cell phone
Competitive Brands
Customers: 67.38 millionRevenue: $6.89 billionTarget: Value conscious consumers who seek uniquenessPOD: Act as a disruptor in the market, looking for new, innovative ways to improve and help their customers. This provides excitement around the brand as a whole.
Current Market Situation Threats: Negative ads from competitors can tarnish reputation
Opportunities: The new “contractless” market can incentivize value seeking consumers to switch to the best value network - which many consider to be Sprint.
Sprint has been operating at a loss for a while because: - High spending rate on building “network vision”- Low margins in order to offer a lower price
High internet users For the smart phone user who is increasingly mobile and needs
excellent high speed data, without overpaying Sprint is the optimal choice, providing high quality coverage
for a fraction of the cost Among top tier cellphone providers
Because they offer unlimited high speed data and better coverage in rural areas by focusing on cellphone services exclusively and constantly improving their network
Light cellphone users For the cellphone user who needs reliable talk, text, and data
but is tired of paying for extra services they don’t use Sprint provides basic quality functions while allowing users to opt
out of unnecessary services making it the best choice Among top tier cellphone providers
Because they offer cheaper plans with enough data and better coverage in rural areas by focusing on cellphone services
exclusively and constantly improving their network
Brand Challenges • 95% of US population already have a cellphone • Customer acquisition comes from convincing
consumers to switch from existing service
Zero Sum Game
• Dependence on price advantage is short term • Lack product or niche advantage
Price Advantage
Unsustainable
• No brand resonance • Little emotional benefits
Loyalty Can be Bought
SoftBank Group
Sprint
Sprint Wireless
Business
CapTel
HTC
LG
Samsung
Apple
PlansPhones
Personal
Unlimited Plan Family Plan
Prepaid
50% Off Plan
Share More Plan
Boost Mobile
Unlimited Plan
Wi-Fi Hotspot Plans
Family Plan
2 Gigs of 4G LTE
Unlimited GIGS
International Calling
Unlimited Music
Virgin Mobile
Assurance Wireless
PayLo
Data Love
Data Love +
Unlimited Music
Parent Company BrandedNon Branded Affiliation
Radio Shack
Brand Identity “Sprint's vision to be a world class company, the standard by which others are measured, includes a commitment to developing a world class supplier base that is reflective of the communities we serve.”Yellow was used to
differentiate from other cellphone companies
Black and yellow part of merger with Nextel
Signature ‘pin drop’
Paul Marcarelli; new face of Sprint
Brand Identity
The Store: -open environment -uses mobile app Qminder as a waiting list for customers -goal of store is to allow for a personal experience for the customer
The Employees: -all wear black with the signature sprint logo on the left hand side -there to help with the personal experience of each customer
Consumer-Based Brand Equity
Feelings
Imagery
Performance
Judgments
Salience
Resonance
+well known basic characteristics of service by price, data, customer service, reliability, coverage +included in the core four of cellphone service providers -lack of knowledge in depth of services provided
+low price +only cellphone provider with unlimited high speed data -Ideal characteristics (ex. Coverage and reliability) not found in Sprint network
+logo and yellow are easily recognizable characteristic of Sprint +”can you hear me now guy” -lack of depth in imagery
+high customer service ranking -perceived as a budget brand -lack of trust in ad claims -lack of overall feelings towards the
brand -only emotional connections had are negative
+low resonance in the market due to logical consumers-people not willing to switch to Sprint even with the knowledge of better quality and prices
Salience + -Cheapest of the
big four Lack of knowledge in depth of services provided
One of the core four cellphone providers +
Music Streaming •47.83%
Unlimited High Speed Data•65.22%
Unlimited Data Roaming •45.65%
Unlimited International Call and Text•28.26%
Unlimited Call and Text•89.13%
Bundle Packages•30.43%
Consumer Responses: What services does Sprint provide?
XX
Performance
Rank Ideal Sprint
1 Reliability Price
2 Price Data Limit3 Data limit Customer Service
4 Coverage Reliability
5 Speed of Data Coverage
Sprint is the only way I can get unlimited data for my family of 5 without spending a lot.
Switching for better coverage would only be slightly better and then I would have to pay extra for going over data limits.
“”
+ -Perceived low price Ideal characteristics not found in Sprint network
Only cellphone provider with unlimited high speed data +
Imagery + -Logo and yellow
are easily recognizable
Lack of depth in imagery “Can you hear me now” guy +
“Sound so clear you can hear a pin drop”
When you think of Sprint…
Judgments + -High customer
service rank Lack of trustPerceived as a budget
brand-
Of Sprint characteristics, customer service ranked #3
18%
73%
8%
Belief in Current Campaign:
Do not believe at all Somewhat believe Believe
Feelings - Only emotional connections had are negative
Lack of overall feelings toward the brand -
I don't know what is going on with Sprint. I am so sorry i changed to them, I can't wait for my contract to be over. Service is bad, horrible and almost non existent. 4g does not work, 3g sometimes, even with a wifi in site it is ****. When i need it the most it will drop my calls. I live in Texas and drive a lot to Oklahoma, there is no signal in more than half of the trip. I have heard they fired 300 employees, service is the worst ever. Had to vent.
– Customer from Sprint’s online community board
“”
Resonance
Current Provider Willing to Switch AT&T 10
T-Mobile 0
Verizon 6
Current Provider Willing to Switch AT&T 0
T-Mobile 0
Verizon 1
Current Provider Willing to Switch AT&T 10
T-Mobile 2
Verizon 10
Yes, if it’s the same or lower than my current bill:
No, I would not switch to Sprint under and circumstances:
Yes, even if the price is higher than my current bill:
+ -Low resonance in the market due to logical consumers
People not willing to switch to Sprint
Sprint anticipates by 2018 their new network vision will provide a more coverage at a higher speed than any other network. Given this information, would you be willing to switch under these circumstances?
Advertising Campaigns
2012-2013 “Everything’s Important” with James Earl Jones & Malcolm McDowell
2013-2014 Framily Plan, with quirky family called the ‘Frobinsons”
2015-2016 Bring in T-Mobile, AT&T, or Verizon bill and we will “Saw your bill in half”
2016 The “Can You Hear Me Now” guy says Sprint is ‘within 1% quality for half the price
$709 Million on Advertising in 2015
Consistent emphasis on lower prices over time has evolved to now include product features such as network which is now within 1% of the other big networks. Overall feel of ads is mostly goofy and lighthearted, but does not feel cohesive.
Product• Service within 1 % of competitors• Unlimited Freedom Plan (data, talk, text)• International plans, hotspots, wifi cards, and accessories
Place•Sprint Stores- sell phones, plans, repair, and service•Authorized retailers- sell phones, limited service.. Include: Target, Best Buy, Walmart, Amazon, Mall kiosks, and more
Price• 50 % cheaper on most plans from ‘big 3’ competitors• ‘Unlimited Freedom’ talk, text, and data $40• Lower than ‘big 3’ , higher than pay as you go• Offer frequent discounts on phones to get customers to switch or offer to pay you fees to leave
other companies
Promotion• Mainly focus on comparison to other brands in advertising• $1.4 billion in ads in 2014• Focused on features, do not reach ‘emotional’ side of Brand Pyramid
Recommendations
Expansion 2016: Providing great cellphone service at a great price 2020: Allowing you to connect to the world
Virtual Reality Home Security Video Calling
Bundling
Social Responsibility
3% of all profits go to charity • Different charity chosen every month based on customer votes• Estimated 480 million dollars donated to charity every year
The 1million Project
Line Extension
• Urban areas • High data users • Millennial generation
Brand Positioning
• Extra services and benefits• Higher price point
References http://www.fundinguniverse.com/company-historie
s/sprint-corporation-history/ http://www.fiercetelecom.com/special-report/cleyso
n-brown-founder-brown-telephone-precursor-to-sprint
http://business.financialpost.com/fp-tech-desk/the-short-history-of-telecom-startups-in-canada
http://money.cnn.com/2004/12/15/news/fortune500/sprint_nextel/
http://newsroom.sprint.com/news-releases/sprint-and-softbank-announce-completion-of-merger.htm
https://www.wired.com/2015/03/radioshack-bankrupcy-deal/
http://money.cnn.com/2016/06/05/technology/sprint-verizon-can-you-hear-me-now/
http://www.rcrwireless.com/20150820/network-infrastructure/sprint-confirms-network-upgrade-plans-tag4
http://newsroom.sprint.com/news-releases/sprint-and-samsung-take-three-channel-carrier-aggregation-into-the-field-with-live-demonstration-in-chicago.htm
http://money.cnn.com/2016/06/05/technology/sprint-verizon-can-you-hear-me-now/index.html
http://www.vault.com/company-profiles/telecommunications/sprint-nextel-corporation/company-overview.aspx
http://www.fiercewireless.com/wireless/sprint-s-iphone-7-could-go-up-to-200-mbps-some-markets-due-to-3-channel-carrier
http://logos.wikia.com/wiki/Sprint http://betanews.com/2005/06/23/sprint-nextel-
reveals-new-brand-identity/ http://hansstol.totaldesign.nl/en/sprint.html http://adage.com/article/agency-news/sprint-st
arts-agency-review-framily-push/294801/ http://time.com/money/3819318/sprint-promot
ions-deals-desperate/ http://money.cnn.com/2016/06/05/technology/
sprint-verizon-can-you-hear-me-now/ http://www.adbrands.net/us/sprint_us.htm
https://www.statista.com/statistics/192138/us-ad-spending-of-the-sprint-nextel-corporation/
References (cont’d) http://amigobulls.com/stocks/S/income-statement/annual
http://goodworks.sprint.com/1millionproject/
http://adage.com/article/cmo-strategy/sprint-kills-framily-plan/294632/
http://www.bloomberg.com/features/2016-how-to-fix-sprint/
https://www.statista.com/statistics/199359/market-share-of-wireless-carriers-in-the-us-by-subscriptions/
http://www.usatoday.com/story/tech/columnist/baig/2015/03/18/t-mobile-is-training-sites-on-business-customers/24963523/
http://708studios.com/wordpress/wp-content/uploads/RT_08_06.jpg
http://money.cnn.com/2016/03/11/technology/sprint-claure/
http://www.dmnews.com/features/att-cmo-heralds-targeted-approach/article/224906/
http://adage.com/article/digital/verizon-target-mobile-subscribers-ads/293356/
http://www.dmnews.com/features/att-cmo-heralds-targeted-approach/article/224906/
http://designreviver.com/inspiration/20-great-and-20-not-so-great-logo-redesigns/
https://www.statista.com/statistics/416850/average-duration-of-internet-use-age-device/
https://www.youtube.com/watch?v=PRol7AZ3POo https://www.youtube.com/watch?v=7KOpyjnFpUs https://www.youtube.com/watch?v=UlOZYJ3l9S