3. Business Challenge
• Develop a strong Marketing Plan to increase
the FiOS market penetration in the mature
Pittsburgh market.
4. Executive Summary
- Use traditional media to attract potential mature customers to Verizon FiOS
- Offer extended contracts, non renewal trial subscriptions, and lower pricing.
- Team with Terry Bradshaw in Marketing Campaign
- Used surveys which found that Comcast has the majority of market share in Allegheny
County.
- Also showed that price seems to be the most important factor to customers.
- Recommend that Verizon increases Marketing towards the mature demographic in Pittsburgh
- Recommend that Verizon offers lower price, extended contracts, and non auto renewal plans
for trial memberships
5. Survey Methodology & Demographics
• Survey methodology
– Facebook
– Twitter
– Polldaddy.com
• Survey demographics
– Pittsburgh residents aged
50 and over
Questions Asked
1.What is your age? (Qualifier)
2.What is your gender?
3.What is your annual income?
4.Do you live in Allegheny County?
5.What cable/internet service do you currently have?
6.Do you rent or own your home?
7.What is important to you in your cable/internet service?
8.What is your satisfaction level with your current service
provider?
9.How many hours do you currently spend per day watching
television or using the internet?
10.What price would you like to spend for your cable/internet
service?
8. Market Landscape
• Population: 1,231,527
Gender Age Groups
Median Age 41.2 years old
Median Age (Male) 39.1 years old
Median Age (Female) 43.2 years old
Gender
48%
52%
10. Market Landscape - Income
Median household income $52,267
Mean household income $70,243
11. Market Landscape
Major Industry
Breakdown
Educational Services, health care, and social
assistance
28.4%
Professional, scientific, and management
services
11.5%
Retail Trade 10.9%
Arts, entertainment, food services 9.1%
28.40%
11.50%
10.90%
9.10%
0
100,000
200,000
300,000
400,000
500,000
600,000
Salary Government Self employed Stay at home
Salary 510,598
Government 61,480
Self employed 26,681
Stay at home 670
Pittsburgh’s Working Class
12. Competitive Landscape- Verizon
2012 Financials and Operating Statistics
Net Income Attributable to Verizon $8.75 billion
Operating Cash Flow $31.5 billion
Capital Investment $16.2 billion
Verizon Wireline
Revenue (residential and business) $61.4 billion
FiOS TV customers $4.7 million
FiOS Internet customers $5.4 billion
Access lines $22.5 million
#15 Ranking among Fortune 500 companies
99% Percentage of Fortune 500 companies that we serve
#1 FiOS is American’s top-rated broadband service
2,700+ Cities in 150+ countries are connected by our Global IP network
13. Competitive Landscape- Verizon
Verizon FiOS
● Nation’s largest all-fiber network serving residential and small-business
customers with FiOS high-speed fiber services
● 99.9 percent in-network reliability
● Average of 1 billion calls connected per day
● Multiple connections with Verizon Wi-Fi
● Verizon security services offers protection and back-up
JD Power Award
14. Competitive Landscape
Comcast
2013 Financials and Operating Statistics
Consolidated Revenues $6.4 billion
Net Income Attributable to Comcast $6.8 billion
Operating Cash Flow $21.4 billion
Capital Expenditures $6.9 billion
Declared Dividends $0.78
Reported Earnings per Share $2.56
15. Competitive Landscape
Comcast
Major Factors
Ranks among top 50 companies for commitment to
community
Comcast cable is the nation's largest video, high-
speed Internet and phone provider to residential
customers under the XFINITY brand as well as to
businesses
16. SWOT Analysis
• Strengths
– Faster speeds
– Smaller company
– Wireless infrastructure
• Weaknesses
– Smaller company
– Perceived as more expensive
• Opportunities
– *Customer service
• Especially with possible Comcast + TWC merger
– Price lower
– Take FIOS to smaller cities/suburbs
• Threats
– Possible Comcast + TWC merger
– Direct TV
17. Mission
We will launch an integrated campaign focused
on capturing the mature population in the
Pittsburgh DMA.
18. Goals and Objectives
• Goals
– Capture the mature population in Allegheny County.
– Focus on building brand equity with mature
population.
• Objectives
– Increase Verizon’s market share in the 50 and older
demographic by 15% in the Allegheny County DMA.
– Increase sales of television and Internet services to
current mature customers by 12%.
19. Marketing Strategy
– Create special offer to appeal to mature
customers.
– Promote new mature spokesperson executing
integrated marketing campaign targeting
prospects matures.
– Get more customers in the mature market to
upgrade their television and internet services.
20. Tactical Plan
Special Offer
• 4 year, price lock, $69.99 Triple Play
• Complimentary 2 year AARP membership
• Free installation
– Approach
• Direct Mail
• Television
• Radio
21. Tactical Plan
Spokesperson
• Terry Bradshaw
• New offer, quality of product
• Appear on direct mail
• TV
– Local
• KDKA, WPXI, ROOT Sports,
– National
• ESPN, Golf Channel, NFL Network, NBC Sports
• Radio
– 105.9 The X, 102.5 WDVE, 97.3 The Fan
• Mature specific transportation
– Access vehicles
– Busses
22. Tactical Plan
• Offer a 3 month free trial, with no auto
renewal, to TV channels relevant to mature
customers.
– HBO, CINEMAX, SHOWTIME, All the ESPNs, GOLF
NETWORKS (lookup)
• Bundle internet with TV
Upgrade Services
23. Schedule
• Send out direct mail by August 1st, 2014
• Start Promotions on August 1st, 2014
• Launch Television advertisement on July 15th,2014
• Launch radio advertisement on July 15th,2014
• Have vinyl signs placed on buses and access vehicles by
July 15th,2014
24. Controls
• Measure sales of new offer
• Measure market share
• Measure tactical performance
– Direct mail > Response of contact rate
– TV > TV Specific URL
• Measure total sales
25. Contingency Plan
• If sales are 10% lower than expected, we will
add more television and radio advertisements.
• If direct mail campaign does not yield a 45%
response, increase direct mail services with
marketing partners by Sep 1st, 2014