metro presentation deck
DESCRIPTION
New business pitch presentation deck for Metro PCSTRANSCRIPT
8.5”
2.25”
February 24, 2009 | 1
INTRODUCTIONSAND STRATEGICSOLUTIONSDISCUSSIONPREPARED FOR:
DIANE MCKENNADIRECTOR OF ADVERTISING AND BRAND MANAGEMENT
02.24.2009
February 24, 2009 | 2
WITH YOU TODAYChip GormanPrincipal
Experience with RadioShack & Wireless Toyz
Camara CliftonChief Development Officer
Experience with AT&T Wireless, GTE Wireless & GTE SuperPages
Allen BourneBusiness Development
Experience with PrimeCoPersonal Communication, Inner Wireless & AT&T Wireless
P: 972.839.5500 [email protected]
Dave KirwanCo‐President & Founder
Tom ColeCo‐President & Founder
Ray RosenbaumPrincipal/ Strategy
Experience with Motorola
John SouthPrincipal/Digital
Experience with AT&T & Eon Mobility
Michael HarrisonPartner/Strategy & Planning
Experience with US Cellular & MCI/Sprint
Todd ConnelleyCreative Director
Experience with Nortel Networks & Texas Instruments
Susan VostVP, Public Relations
Experience with PrimeCo, AT&T , Sprint & Vision Wireless
Roberta RossatoDirector, Client Partnership
Experience with mobilemarketing for P&G
Erich KirkDirector, Strategy & Planning
Kevin KeyDigital Engagement Director
Experience with SBC & AT&T
MetroPCS + RAZOR Team
February 24, 2009 | 3
RAZOR, A NEW KIND OF MARKETING PARTNER
• We are bringing accountability back to marketing by simply focusing on what matters. That means if it doesn’t generate a tangible result, we don’t do it.
• Our simple approach uncovers smarter ways for clients to grow customers, build transactions, and drive results.
– We custom build each solution
– We are strategic partners
– We measure everything
• Our name comes from a 14th century principle advocating simplicity developed by William of Occam.
Occam’s RAZOR: “All other things being equal,
the simplest solution is usually the best.”
February 24, 2009 | 4
CUSTOM BUILT SOLUTIONS: MARKETING MADE FROM SCRATCH
• We immerse ourselves in your business model and obsess over details that other agencies ignore. Since data and analytics are the foundation of what we do, we always employ:
– Customer, business, and secondary data
– Marketing/communications strategists
– Strategic blueprints based on your business
• Our strategic blueprints determine:
– Marketing priorities
– Required resources
– Activation plans
– Learning calendars
February 24, 2009 | 5
RAZOR APPROACH• Marketing Goals
– Customer Acquisition– Customer Retention– Build Average Purchase
• Strategy–Mix of Brand/Activation
Build Brand Awareness, Consideration
Grow customers and build transactions:• Understand motivations• Select competitive alternatives• Understand access/touch points –corporate vs. dealers, online vs. offline
• Identify shopping behavior• Select proper tools to reach them
Consumer Communication
February 24, 2009 | 6
METROPCS CONSUMER IS ONE WE UNDERSTAND
• MetroPCS Tier I audience
– Financially constricted; may have cash but not credit; may have some credit but limited cash; may be constricted on both
– Options limited
• Cannot qualify for traditional wireless contracts
• Buy prepaid phone and limited minutes
• MetroPCS Tier II targets: psychographic or lifestyle more important as demographics
– Value‐conscious consumers – avoid overrun minutes, set budget amount
– Consumers who do not want any obligation → freedom
– Managing a family need, want child/family/spouse to have phone, but don’t want to run risk of long‐term contacts and overruns
– Can turn off and turn on as needed
Household Income BreakdownBy Mobile User Type
Percen
tage of U
sers
Annual Household IncomeSource: Simmons SMRB 2008 Full Year
50% of no‐contract mobile customers have income under
$50K
February 24, 2009 | 7
WE SEE THE ECONOMY AS BOTH CHALLENGE AND OPPORTUNITY
• Consumers’ challenges expand as economy declines
– Already constrained consumers are being squeezed even more
– Consumers making hard trade‐offs regarding needs vs. wants
– Consumers searching for lower cost options
• The opportunities are accelerating
– More constrained consumers
• More people who were not constricted are becoming so,→ losing jobs, earninglower salaries → but needs still exist
• They will likely maintain value options when economy improves
– More value‐conscious or budget‐conscious consumer
• Looking for cost savings
• Reducing obligations
• Costs rising faster than income
• Fear of losing jobs
– Many people consolidating
• Moving to wireless only
• Eliminating traditional home phone service
2005 2006 2007 2008 2009
?
Quarter‐to‐Quarter Growth in Real GDP
Percen
t
February 24, 2009 | 8
WE SEE METROPCS UNIQUELY POSITIONED TO TAKEADVANTAGE OF THESE FACTORS
Low
High
High
Low
Obligation
High • Rechargeable minutes
• Texting
• International
• Cost contained by amount of minutes purchased
• High risk of shutoff when minutes used up
• No obligation
• Cost controlled
• Low risk of shut off due to unlimited minutes
• No contract obligation
• Pre‐paid minutesVirgin MobileTracfoneAT&T Go Phone
• High cost variability
• Contractual obligation
• Low risk of shutoff in case of minute overrun
• Traditional CellularSprintVerizon WirelessAT&T WirelessT‐Mobile
Cost Variability
Risk of Service Interruption
Low
February 24, 2009 | 9
SIMPLE METROPCS VALUE PROPOSITION MEETS NEEDS OF
CHALLENGED CUSTOMERS
• Budget friendly
• Freedom from surprises
– No unexpected charges
– Limited extra charges (except roaming)
• No long‐term obligation
– Including additional phones for family without adding obligation
• Advanced services available including web and mapping/directions
• Keep current phone (Verizon and Sprint) with flash over
• MetroPCS allows customers to make changes as their life, lifestyle, and life situations change
February 24, 2009 | 10
WE SEE THREE CONSUMER ACTIVATION OPPORTUNITIES FOR METROPCS
1. Acquisition– Brand message is being delivered in broadcast and traditional broad‐reaching media– Leverage local dealer spend– Explore targeted media options to activate purchase such as:
• Digital – affiliate marketing, paid search, display with new strategic profiles• Direct Mail modeled against targets with appropriate message and offer
– Partnerships leverage marketing dollars, expand distribution network ,and offer customers “surprise and delight”– Non‐traditional approaches
• Viral marketing(ex. burning cellular contracts)2. Retention
– Given the pressure on certain segments of current MetroPCS customers, how do we proactively retain them?• Understand life cycle and attrition
– Reactivation of lapsed customers• Message and program to reach them
3. Build (ongoing revenue stream) average revenue– Upsell plans– Add on other family members
February 24, 2009 | 11
ACTIVATING PROGRAMS AT MARKET LEVEL
Brand and message extended into field marketing
• Continuity
• Effective co‐op usage
• Strong communication: print and digital
• Potential corporate spend savings
RAZOR has experience building franchise/dealer organization support programs and tools
Subscription base and membership business channels
• Franchisee
• Co‐op
• Individual franchisee tools (PMO)
• Franchisee
• Media planning
• Store level plans
• Acquisition/retention
• Store level
• Partnerships
• Acquisition
• Direct‐to‐consumer
• Agent network
February 24, 2009 | 12
METROPCS CUSTOMIZED OPPORTUNITIES SURFACED THROUGHRAZOR’S NEEDS ASSESSMENT PROCESS
• Consumer research?• Segmentation/Value?• Database data points available?
• Who uses activation materials?• What is being used?• Organization structures?• Budgets available for programs?
• Programs and materials– What’s available?– Access modes and learning?
Corporate
Stores
and Dealers
Corporate Approach
Consumer Learning
February 24, 2009 | 13
RAZOR’S NEXT STEPS AND BLUEPRINT DELIVERABLE
• 30‐60 day review will yield MetroPCS blueprint– Acquisition– Retention– Build average purchase
• Transaction building media– Direct mail opportunities– Digital strategy and creative– Local store vs. DMA program
• Insight and analytics– Segmentation and modeling to drive even more business– Learning needs to help focus on additional opportunities.
For example, potential barriers to trial/retention such as in‐store vs. online payments
– Other programs• Grand Openings• Down Store
Domino’s Pizza PMO site RAC high impact
direct mail
Blockbuster Online display ad
Domino’s Pizza learning calendar
RAC Hispanic‐targeted direct mail segmentation
February 24, 2009 | 15
THE TOOLS WE USE
Strategy and Analysis• Strategic planning
• Marketing plan development
• E‐business strategy
• Response and predictive modeling
• Customer segmentation
• Business analysis
• Consumer research
Marketing and Communication• Creative development
• Website development
• Search optimization
• Paid search
• E‐mail marketing
• Database marketing and direct mail
• National and trade area media
Program Execution and ROI Analysis• Learning calendar
• Results/ROI reporting
• Media mix modeling
• Warehousing, fulfillment, and logistics management
• Gift card management
February 24, 2009 | 16
BEING ACCOUNTABLE PAYS OFF FOR OUR CLIENTS. IT’S TREATEDUS PRETTY WELL, TOO.
Ad Age
#1 Growth Marketing Services Agency: 2006
Ernst & Young
Southwest Entrepreneur of the Year Finalist : 2006 & 2007
Dallas Business Journal
#1 Fastest Growing Private Company: 2006
Entrepreneur Magazine
#9 HOT 100 Concepts: 2006
130% 159% 43% 31% 25% forecast
Capitalized billings in millions