Telstra Marketing Strategy

TELSTRA

Introduction

Telstra is Australia’s largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra’s vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. (Telstra Website, 2008)

Telstra, originally Telecom Australia was established in 1901 by the Postmaster Generals Department to manage all domestic phone services. Telecom Australia continued to be operated by the Postmaster Generals Department until 1975. In 1989, Telecom Australia became the official Telecommunications Corporations for all domestic and international telephone services. On the 1st of July 1995 Telecom Australia changed their name to Telstra for the purpose of differentiation from other global telecommunications companies. The company has been trading international since 1993. Currently Telstra operates in over 19 countries worldwide (Telstra Annual Report, 2005, p.12).

STRATEGIC BUSINESS UNITS

A strategic business unit is “an organisational unit within a larger company that focuses its efforts on some products markets and is treated as a separate profit centre” (McGuiggan & Quester, 2007, p.110).

In order to have a strong customer focus and improve their operations, Telstra organisational structure consists of strategic business units (Telstra Annual Review, 2005, p.12-13) as below:

• Telstra Consumer and Marketing is responsible for serving metropolitan consumer and small business customers with a full range of products and services including fixed, wireless, and data, advertising and sponsorships, consumer marketing and implementing their product bundling initiatives. It is also has responsibility for Telstra’s Consumer Call Centres, licensed shops and dealer network.

• Telstra Business and Government is responsible for providing innovative and leading edge communications and ICT (Information and Communications Technology) solutions to business and Government enterprises in Australia and New Zealand. It also oversees their investment in TelstraClear. TelstraClear is New Zealand’s second largest full service telecommunications company, providing innovative market leading products, services, and customer focus to the business, government, wholesale and residential sectors.

• Telstra Country Wide is responsible for sale, services and the management of customer relationships in outer metropolitan, regional, rural, and remotes parts of Australia and the development and delivery of innovative communications solutions to meet the needs of customers living in these areas.

• Telstra BigPond is their retail internet business and is responsible for providing broadband and narrowband Internet services for consumer and small and medium business customers.

• Sensis is a wholly owned subsidiary which is responsible for advertising, directories, and information services.

• Telstra Media is responsible for FOXTEL investment.

• Telstra Wholesale provides a wide range of wholesale products and services to the Australian domestic market including fixed, wireless, data and internet, transmission, interconnection, access to their network facilities. It also offers network design and construction solution as well as operations and maintenance services, including management and maintenance of integrated IP networks, mobility solutions, fixed access, wireless access and transmission solutions. Currently, Telstra Wholesale has commenced servicing Global Wholesale markets to satisfy growing Internet and high bandwidth needs.

• Telstra Asia managing international interests in Asia, including CSL and joint venture such as REACH in Hong Kong. It also directs offshore growth strategy, with a current focus on enhancing the value of their existing investments, profitably rationalising non-core assets and positioning Telstra to capture high growth opportunities in the region, particularly China and South East Asia.

• Infrastructure Services builds, operates, and maintains Telstra telecommunications infrastructure. It is responsible for the provisioning, restoration, operation and management of their fixed, mobile, IP and data networks, as well as the design and construction of network infrastructure.

• Telstra Technology Innovation and Products is responsible for the management of all technology, platform and product delivery. It develops and supports products and technologies specified by Telstra market business units. It also undertakes substantial research and development to ensure that Telstra remain at the forefront of Technology in Australia.

TELSTRA TARGET MARKET

Telstra target services are based on customer needs. “A customer needs refer to the needs the product type is able satisfy for the customer” (McGuiggan & Quester, 2007, p.176). These customer needs of Telstra are classified as below (Telstra Annual Report, 2005, p.15):

пÑ"Ñ› Residential Customers and Small Business

Telstra segment their residential customer based upon customer usage and lifestyle patterns and for small business customers according to the type of business they operate and the way they interact with their customers. Telstra enable customers to interact with them online, through door-to-door sales representatives and telephone sales channels and face-to-face via Telstra Shops.

пÑ"Ñ› Medium and Large Business and Governments

Telstra segment their customers based on communication spend, “Telstra Share of Wallet”, industry sector and geographic proximity. The three key segments are Government, Industry (the largest corporate customers) and Business (medium and smaller business customers). Telstra focus on delivering account management and communications solutions to all these customers with the aim of improving their customers financial performance and business efficiency.

пÑ"Ñ› Regional, Rural, and Remote Customers

In order to improve service levels, business performance, and to strengthen relations with customers and communities in regional, rural and remote areas of Australia, therefore Telstra