Sample Marketing Plan for a Hypothetical ISP Essay Example
Sample Marketing Plan for a Hypothetical ISP Essay Example

Sample Marketing Plan for a Hypothetical ISP Essay Example

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  • Pages: 11 (2836 words)
  • Published: November 7, 2017
  • Type: Essay
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Executive Summary of Company X, Inc.'s Marketing Plan for "Service Level Agreements": Company X, Inc. is a locally-owned organization that has been running for nearly a decade.

The company known as Company X is a fixed wireless ISP that focuses on delivering high-speed Internet to rural parts of the San Joaquin Valley. Boasting a staff of only 14 employees, the company is also capable of providing various other services to generate more revenue. Such services include network consulting, web hosting, co-location, point-to-point wireless solutions, and additional Internet access services. Despite its current success in serving rural areas, Company X finds itself in high competition and requires a competitive edge to break into the urban market. Its current strengths are not enough to establish a foothold in this market.

To break into the world where AT;T reigns supreme, Company X should focus on urban busi

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nesses in need of dependable, high-speed connections. By utilizing Wave IP's wireless equipment and offering SLA contracts, Company X can establish its own distinctive market. Prior to the establishment of Company X, its predecessor The Works Internet LLC provided a multitude of services, excluding fixed wireless internet. An environmental analysis would be worthwhile for further consideration.

The owners of The Works, Craig DeManty and Garrett Burbage, partnered with Peter Sorensen in 2003 to establish Company X. Recently, the company has fully acquired The Works Internet and is gradually discontinuing dial-up Internet services. Company X, which is locally owned, dominates the market for fixed wireless broadband Internet. By implementing an effective marketing strategy, they are poised to become a significant competitor to urban giants Comcast and AT&T. While providing consumers with an Internet connection is

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not a novel concept, Company X's approach sets them apart.

The main rivals in California are AT;T, Comcast, Verizon, and Sprint. Of these, Sprint Broadband is our top contender as they provide comparable pricing for wireless broadband access in rural locations via microwaves. Nonetheless, none of these providers offer practical remedies, velocity, or Service Level Agreements.

Company X is the sole provider of SLA’s in rural areas where ATT and Comcast have no coverage. A key priority for any company seeking an SLA agreement is speed. However, Verizon air cards and other satellite providers are unable to offer download speeds surpassing 300kbs download speeds (Verizon). It's important to note that Comcast does not offer SLA’s.

While Comcast offers service through coaxial cable, ATT provides service via DSL or T1 and Sprint provides service through telephone lines and microwaves, their minor SLA's at poor speeds are restricted to urban areas, leaving nothing for those in rural locations. On the other hand, Company X provides services through telephone lines such as T1, DSL, Dial up as well as broad band microwave connections. Our company operates in the middle of Monopolistic competition and Oligopoly type markets. The high-speed internet is a fairly recent technological advancement that is spreading across the world rapidly and is currently thriving in the Prosperity stage of the business cycle.

The companies Comcast, AT;T, Sprint, and Verizon are spending a large amount on advertising and promotion in order to compete with each other (as reported by Suite101). Additionally, due to the acquisition of licensed frequencies from the FCC, Company X does not anticipate any legal or regulatory barriers to its operations. Company X has introduced a new

service called the SLA using technology. San Joaquin valley businesses, specifically farms and dairies, are embracing this technological trend and moving forward.

As organizations develop both hardware and software, there is a growing need for high-speed Internet connection. A key example of technology being adopted by all organizations are security systems and cameras, which employers want to monitor from anywhere in the world. This demand for monitoring creates a dependence on a reliable and high-speed Internet connection (Website Optimization). The significance of instant mass communication and ecommerce has led to an enormous need for speedy Internet among both businesses and residential users. This has prompted many companies to consider having employees and employers work from home on their office computers via a VPN (Virtual Private Network).

For VPNs to function properly, they need a consistent, fast, and reliable connection, which is precisely what Company X offers. The company has exceeded expectations in delivering this service and has recently introduced SLAs to ensure that business owners can trust in their connection always being operational. T1 lines are costly, a dedicated internet speed solution which provides a mere 1.5Mbps in both upstream and downstream traffic. Company X, however, can supply double the bandwidth offering 3Mbps up and down.

At the same price, AT;T offers 0Mbp for both uploading and downloading. Company X's strengths are vast and incomparable to competitors. The company provides differentiated products by operating locally, not outsourcing technical support to India, offering unlimited bandwidth, free service, and convenient services that foster lasting relationships with clients. Company X has unparalleled customer service stemming from a small office setting and owners who firmly hold that the customer is always

right.

All customers who contact us for support are able to establish personal connections, leading to satisfied clients who provide us with a marketing advantage through word-of-mouth referrals. At Unwired, our employees maintain enduring relationships and loyalties to the company and its proprietors, contributing to a constructive and cooperative growth environment. Despite the company's relaxed atmosphere resulting from its modest size, workers benefit from unprecedented autonomy that encourages innovation and challenges conventional thought processes. As a result of our small-scale operation, all staff members receive comprehensive instruction and cross-training.

Unwired differentiates itself from competitors by augmenting its customer service approach with a comprehensive knowledge base. However, the company faces several challenges including low visibility, high expenses, insufficient coverage in urban and rural areas, line of sight connectivity issues, interferences from competing radio frequencies on similar channels, and environmental factors like severe weather conditions. Additionally, the company's small size can be advantageous for quick communication and collaboration but may also overwhelm and distract employees.

Because of our limited size, we cannot provide customer service on weekends or outside regular hours. Our tech support is only accessible on weekdays from 7:00 AM to 7:00 PM, which puts us at a disadvantage compared to bigger national companies with more extended availability. This operating schedule is typical for locally owned ISPs. Moreover, expanding our company internally is challenging until we acquire additional office space. It's essential to mention that thousands of computers are purchased daily by both residential and business customers.

According to the Computer Industry Almanac, the sharing of online content like music and videos is becoming more prevalent among Internet users. The FCC has acknowledged this trend and predicts its continuation,

attributing it to technological advancements and a greater need for high-speed Internet connections.

Gone are the days when slow dial-up internet connections sufficed for basic web browsing, as modern websites demand faster speeds to display the intense graphics and text. For Company X, enhancing customer service merely requires hiring two more employees and providing extensive cross-training and documentation for hybrid skills. To tackle name recognition challenges, the company can support community projects, advertise with flyers, and make cold calls. Promotional pricing in new rural and urban areas can also reduce high prices by eliminating local competition. To expand serviceable regions, the solution is to erect additional towers for connecting potential customers.

Company X's aim is to augment its business client market share for Internet contracts, from both the local and national competition. Obtaining licensed frequencies from the FCC is currently eliminating conflicting radio frequencies while the only uncontrollable and non-convertible factor for the company is Mother Nature's San Joaquin Valley climate.

Although Company X has a strong reputation as a fast and reliable internet provider in the agriculture industry, they are now aiming to expand their services to the urban business market. Specifically, they plan to offer high-speed internet and Voice Over IP (VOIP) telephone lines to small and large businesses.

Company X plans to enter the market by offering Service Level Agreements that assure customers of specific speed, latency, and outage resolution periods. To begin with, Unwired intends to study the current competition in the Fresno and Clovis regions, analyzing their pricing, speeds, customer service, and extra services. The task will be carried out by sales, level one support, and level two support starting November 19

and concluding by November 21 when Craig DeManty will be presented with the report. The research findings will be collated and used to set competitive or non-price based pricing.

On November 26th, the confirmed final price will be announced by Company X. Additionally, the company's second goal is to prepare for the launch of their latest service, targeting the entire Fresno/Clovis city and county. To achieve this goal, new license frequencies have already been acquired and new manageable wireless equipment has been tested. The installation of this equipment will be carried out on Bear Mountain, Owens Mountain, River Park, and Fresno Pacific Security building towers in Fresno/Clovis. Hardware configuration will commence on December 3, 2007.

Company X aims to finish configuring and installing the new service at all four locations by December 21, 2007. In addition, the company's third goal is to promote the service in Fresno and Clovis through various media channels. The first initiative is a TV commercial highlighting the company's unique competitive advantage. Sales associates will use a database of businesses in Fresno and Clovis to identify prospects, while flyers with a cents-off offer will be sent to all businesses on the same database.

Commencing on January 1, 2008, the exploration of new regions will continue until 2009. The advert will be broadcasted from January 10th to March 10th and subsequently from May 10th to August 31st. Company X's current target audience is composed of inhabitants of rural areas and counties belonging to the middle to upper class along with locally operated small to intermediate sized businesses that employ no more than 125 individuals. The proposed marketing strategy will not cater to any residential customers

and will instead focus on medium to large sized enterprises within the Fresno/Clovis vicinity.

The aim of the companies is to shift future business clients from T1 lines to reliable fixed wireless connections and VOIP phones, given that T1 lines are becoming obsolete. In a diverse market where different businesses demand varying Internet speeds, Unwired intends to focus on one marketing mix and a single market segment. This will involve using geographic and behavioristic segmentation variables, with an emphasis on urban cities with populations exceeding 250,000 people, especially in areas with high market density. The company plans to target customers based on factors such as brand loyalty, end use, and expected benefits for effective product and service promotion.

Our Product Service Level Contracts provide an ideal combination of Product, Price, Distribution and Promotion to cater to businesses using VOIP phones, self-managed servers and mail, high-end routing equipment as well as security camera systems. Clients can select from a range of prices that best suit their budget and requirements. If customers have clear Line of Sight (LOS) with any of our four Access Points, they can receive different high-speed SLA connections. Additionally, Company X offers burstable bandwidth speeds to all clients which exceed the committed information rate provided on a 'best effort' basis.

Burstable bandwidth is only available when there is extra network capacity. Our SLA guarantees 99.9% system uptime, less than 1% packet loss, and round-trip network latency under 100ms. Unwired's Enterprise Class Services provide a 100% committed information rate (CIR), and each one will be configured to operate at the full CIR specified. Even during peak network load, the Unwired Network is designed so that the service

can send and receive IP packets (including data and overhead) within a 10% maximum variance of the CIR on average over a month.

The company measures throughput by averaging 5 samples of an FTP file transfer with a minimum file size of 1 MB taken directly from the Unwired Interface to the Test Server. If there is a problem with the service that causes Network Unavailability, the company will do everything possible to repair the service within 5 hours of reporting the issue and opening a trouble ticket. This service is competitively priced compared to other options, such as T1 lines that commit to a dedicated bandwidth rate of 1.5Mbps for $349 a month.

Company X is introducing innovative pricing strategies with the aim of promoting competition among ISPs. Customers will be required to pay a $399 fee for setup, after which they can select from a range of monthly fees tailored to their preferred internet speed. The per connection pricing model offers multiple options, starting at $199 for 1Mbps (the minimum) and going up to an impressive 6Mbps at $699. These speeds surpass those offered by rivals such as T1 in terms of both speed and cost. It should be emphasized that Company X provides only services and not physical goods.

Company X will use its exclusive distribution to serve end users without intermediaries. To increase its market reach, the company plans to use a promotion strategy that includes multiple media channels such as prospecting, discounted flyers, television advertising and community service projects. The four elements of the promotion mix will be used with an emphasis on personal selling. The company will implement a pull

channel policy when promoting services directly to consumers.

The company plans to advertise on local TV stations between 6pm and 11pm when most business owners are known to watch news. Additionally, mass emails will be sent to inform existing customers about the new services. A new search engine-optimized website is under development, and zip codes in Fresno city will be targeted with flyers. The community service projects will help the company gain public relations focus and potential publicity through news media. It's also planning on offering higher monthly commission and $100 spiffs to its current sales staff on all connections installed on a $599 installation fee internally.

During the marketing campaign, sales associates are able to offer customers reduced monthly rates through longer contract terms. For instance, a 2Mbps connection priced at $199/mo on a one-year contract can instead be offered at $169/mo on a two-year contract and $149/mo on a three-year contract. External promotions will include discounts via flyers and special installation fees. In addition, the company will also offer free installation with all two-year contracts, facilitating an increase in market share.

Company X has utilized buzz marketing as a means of fostering its expansion, highlighting the significance of word-of-mouth advertising from all personnel to clients. To amplify this advertising, staff members who engage with customers directly are educated on promoting word-of-mouth and distributing leaflets or rate sheets. Moreover, every patron will be granted a free service for one month for each referral that results in success. Reference: "25-Year PC Anniversary Statistics."

Celebrating the 25th anniversary of the PC in 2005, here are some statistics:

On November 10, 2007, the Computer Industry Almanac was published at http://www.c-i-a.com/pr0806.

The Computer

Industry Almanac and Sprint's website both provide information about Sprint Broadband Direct in the form of and content.On November 29, 2007, Sprint Broadband published details about their corporation on their website, which can be viewed at http://www.sprintbroadband.com/about.html.

(Sprint) 3. "About Us." Company X Inc. Retrieved on 9 Nov 2007 from http://www.companyx.com.

Company X is referenced in unwiredbb.com/about.htm and Verizon Business Solutions section 4 discusses "Data and IP."

The source of this information is Verizon's website, specifically the page on dataIP overview, which was accessed on November 9, 2007, through the following URL: http://www.verizonmarketing.com/bsg/dataIP/overview.aspx.

(Verizon) 5. The FCC News released information on high-speed internet services for internet access on August 9, 2001.

The source of this information is the FCC website, specifically a news release from Common Carrier on November 7th, 2007. The URL is www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0133.html.The US Home Broadband Growth trend, as reported by Website Optimization on November 6th, 2006, is documented by the FCC under section 6.An article titled "Internet" was published by Website Optimization on November 8, 2007. This article can be accessed at www.websiteoptimization.com/bw/0606/.

Comcast's website in 2007 was located at comcast.com.

Comcast's plans can be found on their website at http://www.comcast.com/. (Reference from November 8, 2007)The website "HughesNet Corporate Home" was accessed on November 9, 2007, with the URL http://www.hughesnetbiz.com/HUGHES/Rooms/DisplayPages/LayoutInitial?Container=com.

webridge.entity.Entity%5BOID%5B4161C0A7C72D6041A98164CD296775F9%5D%5D; (HughesNet) 9. "Small Business." AT;T Small Business Internet Services.

On November 9th, 2007, AT;T published information on their website at http://www.att.

The website suite101.com reports that AT;T spent on advertising in 2007 by providing a link to a page with the identifier 9320.

The article titled "2007 American Ad Spending" was published on October 6, 2007 on Suite 101's advertising page. The source can be accessed through

http://advertising.suite101.com/article.cfm/2007_american_ad_spending until November 8, 2007.

(Suite101)

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