What is Sales and Marketing Strategy of Telstra Company?

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What is the Sales and Marketing Strategy of Telstra?

Telstra, Australia's leading telecommunications company, has a robust sales and marketing strategy focused on network superiority and customer connection. Its 'Better on a Better Network' campaign, launched in June 2024, uses distinctive stop-motion animation to highlight its network reliability.

From its origins as a government entity in 1901, Telstra has transformed into a publicly traded competitor, maintaining market dominance against rivals. The company reported A$11,602 million in revenue for the half-year ending December 2024, a 1.5% increase, with profits up 7.1% to A$1,115 million.

Telstra's strategy involves innovative marketing tactics and strategic brand positioning to drive growth and customer loyalty. In the 2024 financial year, total income reached A$23.5 billion, with mobile services revenue growing by 5.6% and adding 560,000 customers, totaling 26 million mobile services. This analysis delves into Telstra's go-to-market approach, its Telstra BCG Matrix, and the effectiveness of its recent campaigns.

Telstra employs a comprehensive omnichannel strategy to reach its diverse customer base, blending both online and offline channels for accessibility and convenience. This approach is central to its overall Telstra sales strategy, aiming to provide a seamless customer journey.

Digital Platforms for Sales

Telstra's robust e-commerce platforms, including its company website and mobile app, are continuously enhanced for improved user experience and self-service options. These digital channels are key to Telstra customer acquisition efforts.

Physical Retail Presence

Physical retail locations, comprising approximately 280 Telstra Stores and 26 Telstra Business Technology Centres across Australia as of June 2024, offer personalized service and technical support. These stores are vital for customer engagement and sales.

Direct Sales for Enterprise

Direct sales teams are crucial for securing large contracts with enterprise and government clients, focusing on tailored solutions and dedicated account management. This is a core component of Telstra sales tactics for enterprise clients.

Multi-Brand and Reseller Network

Telstra leverages a multi-brand approach with brands like Belong and Boost, alongside a network of resellers operating on its infrastructure. This expands market reach and caters to diverse customer segments, contributing to Telstra's competitive advantage.

Channel Evolution and Reach

The evolution of Telstra's sales channels reflects a strategic shift towards digital adoption and omnichannel integration, driven by changing consumer behavior. This adaptability is key to its Telstra business strategy and how Telstra acquires new customers.

• Digital platforms enhance accessibility and self-service options.
• Physical stores provide personalized customer experiences.
• Direct sales teams focus on high-value enterprise and government contracts.
• Multi-brand and reseller strategies broaden market penetration.
• This integrated approach supports Telstra's overall Telstra marketing strategy.

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The Telstra sales strategy is deeply intertwined with its marketing tactics, focusing on building awareness, generating leads, and ultimately driving sales through a customer-centric and data-driven approach. The company leverages a broad spectrum of digital and traditional channels to reach its diverse customer base.

Digital Marketing Focus

Digital tactics are central to Telstra's strategy, encompassing content marketing, SEO, paid advertising, email campaigns, and active social media engagement for brand building and customer interaction.

AI and ML Integration

In 2024, Telstra is enhancing its digital marketing with AI and ML to improve customer experiences and increase the accessibility of AI solutions for small businesses.

Voice Search Optimization

Telstra prioritizes optimizing its online content for voice search by incorporating conversational language, aiming to improve search engine visibility.

Short-Form Video Engagement

The company advises businesses to utilize short-form videos on platforms like TikTok, Instagram, and YouTube, as this content is shared at twice the rate of other formats.

Customer Experience Platforms

Telstra partners with Khoros for digital customer experience management, enabling 24/7 digital customer care and enhancing social media governance.

Traditional Media Presence

While digital is key, Telstra also maintains a presence in traditional media, including TV and outdoor advertising, as demonstrated by its 'Four Bars' campaign.

Balancing Personalization and Privacy

Telstra's marketing mix is evolving to balance personalized customer experiences with robust privacy measures, ensuring transparency in data collection and usage.

• The Telstra marketing strategy emphasizes data-driven personalization.
• Transparency in data collection and usage is a key consideration.
• The company aims to deliver tailored customer experiences.
• This approach supports Telstra's overall business strategy by fostering customer loyalty.
• Understanding the Target Market of Telstra is crucial for these personalized efforts.

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Telstra's brand positioning is centered on its status as Australia's leading telecommunications and technology provider, emphasizing its advanced network, continuous innovation, and dedication to customer satisfaction. The brand aims to convey reliability and widespread connectivity, fostering a future where everyone can prosper, as highlighted by its 'Wherever we go' platform, which injects a playful and contemporary spirit into its corporate image.

Core Brand Message: Enabling a Connected Future

The company's core message focuses on providing dependable, extensive connectivity and empowering individuals and businesses to thrive in an increasingly connected world.

Evolution to a Playful and Contemporary Image

Telstra's 'Wherever we go' brand platform signifies a deliberate shift towards a more playful and contemporary brand image, fostering optimism and a sense of partnership.

Visual and Tone of Voice Transformation

Animated campaigns showcase Telstra's evolving visual identity and tone of voice, which have become more imaginative and whimsical to better resonate with its audience.

Value-Based Pricing and 5G Investment

The company employs a value-based pricing strategy, aligning its offerings with customer-perceived value, such as high-speed internet. Significant investment in 5G technology, with a target of 95% Australian population coverage by FY25, further enhances its appeal through innovation.

Telstra's commitment to brand consistency across all customer touchpoints is managed through an omnichannel strategy, enabling agile responses to shifts in consumer sentiment and competitive pressures. This strategic approach has yielded positive results, with Telstra's Group Episode NPS surpassing its FY24 target. The mobile business benefits from a narrow economic moat, driven by cost advantages and efficient scale, evidenced by mobile EBITDA margins reaching an impressive 47% in H1 FY25, underscoring its strong competitive advantage.

Omnichannel Strategy for Consistency

Maintaining strong brand consistency across all channels is crucial for Telstra's customer experience and market responsiveness.

Positive Customer Perception

Telstra's Group Episode NPS exceeding its FY24 target indicates a positive trend in customer sentiment and brand perception.

Mobile Business Economic Moat

The mobile division's narrow economic moat is built on cost advantages and efficient scale, contributing to its financial strength.

High Mobile EBITDA Margins

Achieving mobile EBITDA margins of 47% in H1 FY25 highlights the profitability and efficiency of Telstra's mobile operations.

Competitive Pricing Strategy

Telstra's competitive pricing strategy is designed to align its service offerings with the perceived value by its customer base.

5G Network Expansion

The ongoing investment in 5G technology, aiming for extensive population coverage, is a key element of Telstra's innovation-driven brand positioning and a significant factor in its Growth Strategy of Telstra.

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Telstra has implemented impactful sales and marketing campaigns in 2024-2025 to bolster its brand and drive growth. These initiatives highlight the company's commitment to creative storytelling and integrated media strategies for enhanced brand perception and customer engagement.

'Better on a Better Network' Campaign

Launched in June 2024, this campaign aimed to solidify Telstra's standing as Australia's leading mobile network provider. It featured 26 stop-motion films with Australian wildlife, humorously showcasing network benefits across various media platforms.

'Wherever we go' Brand Platform

Introduced in September 2024, this initiative sought to modernize Telstra's image, shifting towards optimism and partnership. The campaign's animated film, 'Duet,' premiered during major sporting events, extending across multiple channels.

These campaigns are central to Telstra's overall Marketing Strategy of Telstra, demonstrating a clear focus on connecting with consumers on an emotional level and reinforcing its competitive advantage in the telecommunications sector. The 'Better on a Better Network' campaign, for instance, coincided with a period where Telstra reported a 5.6% increase in mobile services revenue and added 560,000 new customers in FY24, indicating its effectiveness in driving Telstra customer acquisition.

Campaign Objectives

The primary goal for 'Better on a Better Network' was to reinforce network reliability. 'Wherever we go' aimed to foster a more contemporary and optimistic brand perception.

Creative Execution

Stop-motion animation with Australian wildlife characterized the 'Better on a Better Network' campaign. 'Wherever we go' utilized an animated film with a narrative of harmonious journeys.

Media Distribution

Both campaigns leveraged a multi-channel approach, including TV, digital, social media, and extensive outdoor advertising, ensuring broad reach and consistent messaging.

Brand Perception Shift

The 'Wherever we go' campaign specifically targeted a shift from a traditional corporate image to a more playful and emotionally resonant brand identity.

Impact on Growth

While specific campaign ROI is not always detailed, the concurrent growth in mobile revenue and customer numbers in FY24 suggests these marketing efforts contribute significantly to Telstra's business strategy.

Strategic Timing

The 'Better on a Better Network' campaign was strategically timed to maximize visibility, including during major events like the Olympics, enhancing its impact on Telstra's sales strategy.

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