MKTG806 Applied Marketing Strategy

1. Executive
   Summary
2. Company Profile
   and Background
4. External
   Environment
5. SWOT
   Analysis
6. Positioning and
   Customer Analysis
7. Objectives
8. Marketing Mix
   and Action Programs
9. Marketing Mix
   – Low usage mobile market
10. Financial
    Forecasts
11. Implementation
    Controls and Monitoring
12. Monitoring and
    Contingency Plans
13. References
14. Appendices

Semester 1, 2005 – Lecturer: Lawrence
Potter

Strategic Marketing Plan

Telstra – FY 2006

Mobile Telecommunication Services
Division

Executive
Summary

A highly profitable area within the Telstra Group,
Telstra"s mobile telecommunication services division continue to
play a growing role in the achievement of strong performances. In
fiscal year 2004, the mobile
division contributed a significant 17 percent towards the total
sales revenue of Telstra. Although the total mobile
telecommunication market has increased by 48 percent in the past
five years, the competition amongst the major players of this
industry continues to be fierce. To maintain its current dominant
market position, Telstra must identify growth opportunities and
respond to the rapid changes in consumer behaviour and
technological developments of the industry.

The following four SBU objectives are to be achieved in
the upcoming fiscal year: (1) Continue to grow mobile revenue by
12 percent (2) Continue to provide innovative products and
services based on Telstra mobile networks (3) Differentiate and
build on brand value (4) Maintain market leader position and
market share of 45 percent.

These four objectives will be achieved by targeting two
important market segments, namely the low usage and the
technologically sensitive and high usage markets. For the low
usage segment, Telstra will focus on retaining existing
SMS/prepaid subscribers via loyalty programs and growing the
number of new subscribers through differentiating and branding
strategies. In the technologically conscious and high usage
sub-segment, Telstra will commence penetrating into the market
share of existing providers (Hutchison 3) and reap the benefits
of being the first leading major company to expand its offering
of services and products supported by the new 3G wireless mobile technology.
This will be achieved through a series of marketing campaigns and
other promotional activities.

The overall outcome from these proposed strategic plans
will be to achieve a healthy 12 percent growth in sales revenue
in the upcoming fiscal year. The estimated costs and marketing
expenses of year ending 2006 will mainly be devoted to promoting
the new 3G supported products and services to achieve the
objective of becoming a dominant player in this new sub-market
prior to competitors" entry into this market. Proposed action
plans relating to the marketing mix of both target
markets are also discussed in this report.

1 Company Profile and
Background

Telstra is regarded as Australia"s dominant
telecommunications and information services provider with a vast
range of products and services that are marketed to the private,
business and government sectors locally and internationally. Its
main services include:

• Fixed line telecommunication access to residences
  & businesses throughout Australia

• Incoming / Outgoing telephone calls within Australia
  & internationally

• Mobile telecommunication services

• Data transmission & internet services

• Telecommunication & internet management services
  for corporate customers

• Wholesale services to other telecommunication
  carriers / service providers

• Advertising / Directory / Information
  services

• Cable distribution for FOXTEL"s subscription
  television services

The ownership and control of Telstra is unique in
that the Australian Federal Government controls 51.8% of Telstra
shares, while at the same time, the company is listed on the
Australian Stock Exchange (TLS). However, it is anticipated that
the sale of the government"s remaining stake in the company will
likely occur in 2006.

During the last fiscal year, Telstra reported sales
revenue increase of 1.2% to $20,737 million and its net profit
(EBITDA) continued to grow by 10.96% to $10,175million as report
in Telstra"s Annual Report 2004. The company has also maintained
its market leader position, with significant market share in the
majority of its product and services (see Appendix
1).