Marketing Plan for Sprint Communications Essay
Sprint Communications opened in Harwich around 4 years ago. It was opened by Roger Scothern. Sprint is the name given by the wholesaler used to purchase handsets and other equipment. The name “Sprint Communications” is also shared by other similar businesses. The company is run separately to the wholesaler and has it’s own Profit and Loss accounts. The business makes on average 20 – 30 network connections per week. The objective of the business was to supply mobile communications to a growing population within the area. The area currently has a population of approx. 20, 000.
The business has only one member of staff which is the owner / manager – Roger. The company’s growth was initially very quick as the market was skimmed for customers that did not wish to travel outside of the town centre. However, the growth has slowed considerably in recent years due to the strategies of both the networks and larger chains diversifying (such as Woolworths). Local competitors include Woolworths, and an Argos store which is to open up shortly. Woolworths is located two doors up from the Sprint Communications store and Argos will be based from the new development near Safeway (which is on the
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Both Woolworths and Argos are able to sell handsets at cheaper prices due to the economies of scale afforded to them by their sheer size. However, where they can not compete is on service or product / industry knowledge. The shop does not have a website and therefore has potentially lost sales or brand image through this. Some locals are not aware of a mobile phone shop being in the town, even though it is situated in an excellent, prominent position. Advertising has been carried out periodically through local press, at a cost of i??
50 per week this has generated a negative return of investment in terms of quantifiable sales or revenue. There has been a growth in pay as you go handsets, with relevant “voucher” sales and flip phone products. There has also been a decline in high end products – such as expensive handsets containing Java Scripting or Colour Screens. Sprint needs to take advantage of the increase in use of mobile communications by all sizes of businesses, in particular the use of SMS and Mobile Data. Any attempt to describe the wireless industry is like trying to describe a bullet as it passes by.
While change is the current watchword for the entire business environment, it’s effects are multiplied in an industry that is categorised by constant evolution in both technology and markets. To ignore this constant shift would be catastrophic to the business. After looking at the business positioning as it stands, alongside it’s current strengths and weaknesses, the conclusion was reached that the objectives should be split into two main areas. These are to exploit the current customer base to enable further revenue generation and customer loyalty, and also to expand the company into the business to business market place.
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As part of the planning stage a diversification strategy was considered. This strategy centred around the stocking of landline telephones. This included cordless DECT handsets and associated batteries. However, the sheer range of options and low margins (along side competition from several local retailers), meant that this would not be an avenue of good revenue generator. The objectives shown below for this marketing plan are built around the SMART criteria (Specific, Measurable, Actionable, Realistic and Timed).