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Telecom New Zealand - How to increase Telecom share in Mass Market Retailers
Abstract
Telecom NZ operate across the Telco market in New Zealand and include a strong presence in Retail. In order to sell their Prepay Mobile network services they are involved in the distribution of Mobile Handsets and accessories through their own retail outlets, through their Dealerships as well as through Mass Market Retail.
There are two further competing networks in the NZ market as well as Skinny - Telecoms secondary mobile brand.
Whilst Prepaid (and Mass Retail) are a smaller part of Telecoms revenue generation, they are both significant parts of the volume of customers and publicity. It is therefore important to maximize the opportunity for Prepaid in Mass Market Retail in order to maximize the overall Telecom presence and share.
The available connection volumes & share of voice in advertising indicated that Telecom were losing market presence and needed to make changes to both its proposition and its approach to Distribution partners in order to redress the balance.
The Challenge
The work was undertaken as part of a team that included Marketing and Finance resource from Telecom, PWC and BCG. The brief was to work on a plan for the Telecom Board that would see an increase in market share and revenue for Prepaid and Consumer Postpaid.
The task for FACS was to exam the Mass Market Retailers and to develop a program that would ensure Telecom had the best chance of increasing market share and revenue. This included any request for additional resource and funding.
How We Helped
We developed a matrix of the competitors and listed all of the components they offered each Retailer. We interviewed several Retailers and members of the Sales team and conducted an extensive Field study of the Store environments. From there we were able to identify the differences in the service offers and provide recommendations on what needed to change.
We took the approach of ‘What do we need to fix’ and produced a simple 3 page report for Senior management and the Telecom Board – this included resource and funding requirements.
The plan came under five headings:
Terms of Trade
Share of Voice
Store Environment
Focus on Store Staff
Field Sales support
Solution
The Board accepted the plan and we began implementation with the successful negotiation of new Terms of Trade. Some of the changes were balanced with other parts of the activity so that the net effect provided increased value to Telecom but did not disadvantage Retailers.
New plans were launched to encourage a greater share of voice in MMR partner advertising. We worked on improving relationships and changing the Telecom stance from combative to partnership. These improved relationships also assisted in gaining greater share of mind with MMR advertising, in-store and staff.
The team worked with a new external Ad agency to redefine the Telecom presence in MMR with the intent of increased visibility. This included a new look and new Stand design in keeping with the overall Telecom branding.
An engagement program for MMR store staff was launched. It was interactive in design so as to involve staff in what Telecom was trying to achieve rather than the traditional ‘pay per sale’ model.
An outsourced partner was undertaking Field Sales support – we increased the frequency, training and ownership of the team.
We combined this with the Marketing teams new Prepaid proposition and backed up with strong Key Account management and senior level support.
The focus for Sales was on gaining support from the MMR partners whilst ensuring that this was economic and sustainable for Telecom. It was designed to play the longer game as well as being competitive with the offerings of 2 Degrees and Vodafone.
Telecom NZ operate across the Telco market in New Zealand and include a strong presence in Retail. In order to sell their Prepay Mobile network services they are involved in the distribution of Mobile Handsets and accessories through their own retail outlets, through their Dealerships as well as through Mass Market Retail.
There are two further competing networks in the NZ market as well as Skinny - Telecoms secondary mobile brand.
Whilst Prepaid (and Mass Retail) are a smaller part of Telecoms revenue generation, they are both significant parts of the volume of customers and publicity. It is therefore important to maximize the opportunity for Prepaid in Mass Market Retail in order to maximize the overall Telecom presence and share.
The available connection volumes & share of voice in advertising indicated that Telecom were losing market presence and needed to make changes to both its proposition and its approach to Distribution partners in order to redress the balance.
The Challenge
The work was undertaken as part of a team that included Marketing and Finance resource from Telecom, PWC and BCG. The brief was to work on a plan for the Telecom Board that would see an increase in market share and revenue for Prepaid and Consumer Postpaid.
The task for FACS was to exam the Mass Market Retailers and to develop a program that would ensure Telecom had the best chance of increasing market share and revenue. This included any request for additional resource and funding.
How We Helped
We developed a matrix of the competitors and listed all of the components they offered each Retailer. We interviewed several Retailers and members of the Sales team and conducted an extensive Field study of the Store environments. From there we were able to identify the differences in the service offers and provide recommendations on what needed to change.
We took the approach of ‘What do we need to fix’ and produced a simple 3 page report for Senior management and the Telecom Board – this included resource and funding requirements.
The plan came under five headings:
Terms of Trade
Share of Voice
Store Environment
Focus on Store Staff
Field Sales support
Solution
The Board accepted the plan and we began implementation with the successful negotiation of new Terms of Trade. Some of the changes were balanced with other parts of the activity so that the net effect provided increased value to Telecom but did not disadvantage Retailers.
New plans were launched to encourage a greater share of voice in MMR partner advertising. We worked on improving relationships and changing the Telecom stance from combative to partnership. These improved relationships also assisted in gaining greater share of mind with MMR advertising, in-store and staff.
The team worked with a new external Ad agency to redefine the Telecom presence in MMR with the intent of increased visibility. This included a new look and new Stand design in keeping with the overall Telecom branding.
An engagement program for MMR store staff was launched. It was interactive in design so as to involve staff in what Telecom was trying to achieve rather than the traditional ‘pay per sale’ model.
An outsourced partner was undertaking Field Sales support – we increased the frequency, training and ownership of the team.
We combined this with the Marketing teams new Prepaid proposition and backed up with strong Key Account management and senior level support.
The focus for Sales was on gaining support from the MMR partners whilst ensuring that this was economic and sustainable for Telecom. It was designed to play the longer game as well as being competitive with the offerings of 2 Degrees and Vodafone.