Wednesday 21 January 2009

T-Mobile Makes First Move of 2009


We've already seen the wonderfully innovative 3 minute dancathon at liverpool st proclaiming that 'life is for sharing', now T-mobile are taking the fight to their competitors with the announcement of a 15% increase in their marketing budget.

The move comes as experts warn that the Deutsche Telekom-owned brand must do more to raise its performance. As the fourth player in the global market, T-Mobile, with its 16% share, will have to move aggressively to acquire new customers and regain service revenue growth.

It lags behind O2, which in September held 25.5% of the subscriber market, Vodafone with 25% and Orange with 21.1%. And it suffered a year-on-year service revenue fall of 6.3% in the third quarter last year, even as market leader O2 grew by 9.6% and Vodafone recorded a fall of just 1.7%.

T-Mobile is expected to expand its marketing from its traditional value-led positioning to include communications around its Google Android-powered smart phone, SIM-only products and its products in the fast-growing mobile broadband arena.

This could be an interesting case study to watch over 2009, will consumers react and put T-mobile back on the path towards competitiveness in the market or could this increase in budget be looked at in years to come as a failed last throw of the dice from an increasingly desperate board

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