T-Mobile Promotes with Celebrity Sidekicks
Case Summary:
T-Mobile is the fourth largest cell phone provider in the United States. AT&T plans to pay $39 billion to buy Deutsche Telekom 's T-Mobile USA in a deal that is expected to attract intense regulatory scrutiny as it creates a new U.S. mobile market leader.
Key Marketing Issues
Product
T-Mobile provides a wide range of mobile phones with different features which target customers in terms of their communication needs and wants.
Price
T-Mobile consistently offers cheaper plans than its competitors
Placement
Operates in six different companies including the United States
Competitors
Sprint, Verizon, and AT&T (however merger was announced in March 2011)
Personal Case Analysis
T-Mobile has fought to gain market share in a well established market. It has used celebrities, pop culture icons and ventures to brand T-Mobile as hip, young, and cool. T-Mobile is also dedicated to providing excellent customer service.
Case Questions
1. What kind of brand image does T-Mobile want to build through its celebrity-packed promotion efforts? As an unknown European brand, T-Mobile had to seek ways to create a definitive brand image in the United States among brands that were already well established. T-Mobile used a long lineup of celebrities in television ads and promotional events. The goal of the advertisement was not to just sell a lot of Sidekicks but to establish T-Mobile as a hip, young, and cool brand. 2. What celebrities should T-Mobile use in its advertisements? Why?
T-Mobile should use young, hip pop-culture icons in its advertisements. This is the market segment which their targeting, therefore it only makes sense to use celebrities that potential customers can relate to. 3. How would T-Mobile’s choice of promotional partners, such as Juicy Couture and the NBA, attract or discourage customers from selecting T-Mobile’s phone
Cited: http://www.nba.com/news/tmobile_051003.html http://www.cnbc.com/id/42186180/AT_T_and_T_Mobile_Merger_to_Create_Industry_Giant http://www.washingtonpost.com/business/economy/atandt-t-mobile-merger-blasted/2011/03/21/ABHs3Y9_story.html