Historical Perspective 1899: Brown Telephone is founded in Kansas

1986: GTE Sprint and US Telecom merge

1983: Southern Pacific Communication Corporation acquired by GTE and renamed GTE Sprint

1988: US Sprint completed third transactional route

1992: United Telecom completes acquisition of GTE

1997: Sprint’s customer base grew to 7 million

1998: Began advertising ON-Demand Network (ION)

1999: First ION sell to residents in their home of Kansas City

1999: WorldCom offered $115 billion to Sprint

2005: Rogers Communications Inc. acquires Sprint Canada's, Call-Net

2004: Sprint Corporation and Nextel Corporation

2013: Sprint and Softbank announce completion of merger

2015: Sprint takes over Radio Shack

1984: United Telecom enters long-distance phone market

2000: Sprint backs out of merger with WorldCom

MergerAcquisitio

n Expansion

Target MarketLIGHT CELLPHONE USERS

• 52 years old and up • Use basic functions only (phone, data, good network, coverage)

• Willing to give up getting the highest quality of internet and phone services for a lower prices

• Do not require the best quality of services• Do not want to pay more for extra services they may not use

HEAVY INTERNET USERS • 14 – 55 years old • Have very high usage data (e.g. >10G) • Choose plans with unlimited high speed data and good rural coverage

• Look for the best value since plans with high data limit are very expensive

• Feel insecure and annoyed about being disconnected from the internet

Customers: 142.75 million Revenue: $16.74 billionTarget: Affluent young professionals in metropolitan areasPOD: Highest quality cellphone service in terms of coverage. Offers multiple services such as TV and Internet

Customers: 131.81 millionRevenue: $14.91 billionTarget: Young, white collar families in and around metropolitan areas POD: Bundle services (internet, cell phone, cable/satellite) offer value when ordered together

Merger with DirecTV creates synergy by offering unlimited data for streaming if you buy DirecTV and AT&T cell phone

Competitive Brands

Customers: 67.38 millionRevenue: $6.89 billionTarget: Value conscious consumers who seek uniquenessPOD: Act as a disruptor in the market, looking for new, innovative ways to improve and help their customers. This provides excitement around the brand as a whole.

Current Market Situation Threats: Negative ads from competitors can tarnish reputation

Opportunities: The new “contractless” market can incentivize value seeking consumers to switch to the best value network - which many consider to be Sprint.

Sprint has been operating at a loss for a while because: - High spending rate on building “network vision”- Low margins in order to offer a lower price

High internet users For the smart phone user who is increasingly mobile and needs

excellent high speed data, without overpaying Sprint is the optimal choice, providing high quality coverage

for a fraction of the cost Among top tier cellphone providers

Because they offer unlimited high speed data and better coverage in rural areas by focusing on cellphone services exclusively and constantly improving their network

Light cellphone users For the cellphone user who needs reliable talk, text, and data

but is tired of paying for extra services they don’t use Sprint provides basic quality functions while allowing users to opt

out of unnecessary services making it the best choice Among top tier cellphone providers

Because they offer cheaper plans with enough data and better coverage in rural areas by focusing on cellphone services

exclusively and constantly improving their network

Brand Challenges • 95% of US population already have a cellphone • Customer acquisition comes from convincing

consumers to switch from existing service

Zero Sum Game

• Dependence on price advantage is short term • Lack product or niche advantage

Price Advantage

Unsustainable

• No brand resonance • Little emotional benefits

Loyalty Can be Bought

SoftBank Group

Sprint

Sprint Wireless

Business

CapTel

HTC

LG

Samsung

Apple

PlansPhones

Personal

Unlimited Plan Family Plan

Prepaid

50% Off Plan

Share More Plan

Boost Mobile

Unlimited Plan

Wi-Fi Hotspot Plans

Family Plan

2 Gigs of 4G LTE

Unlimited GIGS

International Calling

Unlimited Music

Virgin Mobile

Assurance Wireless

PayLo

Data Love

Data Love +

Unlimited Music

Parent Company BrandedNon Branded Affiliation

Radio Shack

Brand Identity “Sprint's vision to be a world class company, the standard by which others are measured, includes a commitment to developing a world class supplier base that is reflective of the communities we serve.”Yellow was used to

differentiate from other cellphone companies

Black and yellow part of merger with Nextel

Signature ‘pin drop’

Paul Marcarelli; new face of Sprint

Brand Identity

The Store: -open environment -uses mobile app Qminder as a waiting list for customers -goal of store is to allow for a personal experience for the customer

The Employees: -all wear black with the signature sprint logo on the left hand side -there to help with the personal experience of each customer

Consumer-Based Brand Equity

Feelings

Imagery

Performance

Judgments

Salience

Resonance

+well known basic characteristics of service by price, data, customer service, reliability, coverage +included in the core four of cellphone service providers -lack of knowledge in depth of services provided

+low price +only cellphone provider with unlimited high speed data -Ideal characteristics (ex. Coverage and reliability) not found in Sprint network

+logo and yellow are easily recognizable characteristic of Sprint +”can you hear me now guy” -lack of depth in imagery

+high customer service ranking -perceived as a budget brand -lack of trust in ad claims -lack of overall feelings towards the

brand -only emotional connections had are negative

+low resonance in the market due to logical consumers-people not willing to switch to Sprint even with the knowledge of better quality and prices

Salience + -Cheapest of the

big four Lack of knowledge in depth of services provided

One of the core four cellphone providers +

Music Streaming •47.83%

Unlimited High Speed Data•65.22%

Unlimited Data Roaming •45.65%

Unlimited International Call and Text•28.26%

Unlimited Call and Text•89.13%

Bundle Packages•30.43%

Consumer Responses: What services does Sprint provide?

XX

Performance

Rank Ideal Sprint

1 Reliability Price

2 Price Data Limit3 Data limit Customer Service

4 Coverage Reliability

5 Speed of Data Coverage

Sprint is the only way I can get unlimited data for my family of 5 without spending a lot.

Switching for better coverage would only be slightly better and then I would have to pay extra for going over data limits.

“”

+ -Perceived low price Ideal characteristics not found in Sprint network

Only cellphone provider with unlimited high speed data +

Imagery + -Logo and yellow

are easily recognizable

Lack of depth in imagery “Can you hear me now” guy +

“Sound so clear you can hear a pin drop”

When you think of Sprint…

Judgments + -High customer

service rank Lack of trustPerceived as a budget

brand-

Of Sprint characteristics, customer service ranked #3

18%

73%

8%

Belief in Current Campaign:

Do not believe at all Somewhat believe Believe

Feelings - Only emotional connections had are negative

Lack of overall feelings toward the brand -

I don't know what is going on with Sprint. I am so sorry i changed to them, I can't wait for my contract to be over.  Service is bad, horrible and almost non existent. 4g does not work, 3g sometimes, even with a wifi in site it is ****.  When i need it the most it will drop my calls. I live in Texas and drive a lot to Oklahoma, there is no signal in more than half of the trip. I have heard they fired 300 employees, service is the worst ever.  Had to vent.

– Customer from Sprint’s online community board

“”

Resonance

Current Provider Willing to Switch AT&T 10

T-Mobile 0

Verizon 6

Current Provider Willing to Switch AT&T 0

T-Mobile 0

Verizon 1

Current Provider Willing to Switch AT&T 10

T-Mobile 2

Verizon 10

Yes, if it’s the same or lower than my current bill:

No, I would not switch to Sprint under and circumstances:

Yes, even if the price is higher than my current bill:

+ -Low resonance in the market due to logical consumers

People not willing to switch to Sprint

Sprint anticipates by 2018 their new network vision will provide a more coverage at a higher speed than any other network. Given this information, would you be willing to switch under these circumstances?

Advertising Campaigns

2012-2013 “Everything’s Important” with James Earl Jones & Malcolm McDowell

2013-2014 Framily Plan, with quirky family called the ‘Frobinsons”

2015-2016 Bring in T-Mobile, AT&T, or Verizon bill and we will “Saw your bill in half”

2016 The “Can You Hear Me Now” guy says Sprint is ‘within 1% quality for half the price

$709 Million on Advertising in 2015

Consistent emphasis on lower prices over time has evolved to now include product features such as network which is now within 1% of the other big networks. Overall feel of ads is mostly goofy and lighthearted, but does not feel cohesive.

Product• Service within 1 % of competitors• Unlimited Freedom Plan (data, talk, text)• International plans, hotspots, wifi cards, and accessories

Place•Sprint Stores- sell phones, plans, repair, and service•Authorized retailers- sell phones, limited service.. Include: Target, Best Buy, Walmart, Amazon, Mall kiosks, and more

Price• 50 % cheaper on most plans from ‘big 3’ competitors• ‘Unlimited Freedom’ talk, text, and data $40• Lower than ‘big 3’ , higher than pay as you go• Offer frequent discounts on phones to get customers to switch or offer to pay you fees to leave

other companies

Promotion• Mainly focus on comparison to other brands in advertising• $1.4 billion in ads in 2014• Focused on features, do not reach ‘emotional’ side of Brand Pyramid

Recommendations

Expansion 2016: Providing great cellphone service at a great price 2020: Allowing you to connect to the world

Virtual Reality Home Security Video Calling

Bundling

Social Responsibility

3% of all profits go to charity • Different charity chosen every month based on customer votes• Estimated 480 million dollars donated to charity every year

The 1million Project

Line Extension

• Urban areas • High data users • Millennial generation

Brand Positioning

• Extra services and benefits• Higher price point

References http://www.fundinguniverse.com/company-historie

s/sprint-corporation-history/ http://www.fiercetelecom.com/special-report/cleyso

n-brown-founder-brown-telephone-precursor-to-sprint

http://business.financialpost.com/fp-tech-desk/the-short-history-of-telecom-startups-in-canada

http://money.cnn.com/2004/12/15/news/fortune500/sprint_nextel/

http://newsroom.sprint.com/news-releases/sprint-and-softbank-announce-completion-of-merger.htm

https://www.wired.com/2015/03/radioshack-bankrupcy-deal/

http://money.cnn.com/2016/06/05/technology/sprint-verizon-can-you-hear-me-now/

http://www.rcrwireless.com/20150820/network-infrastructure/sprint-confirms-network-upgrade-plans-tag4

http://newsroom.sprint.com/news-releases/sprint-and-samsung-take-three-channel-carrier-aggregation-into-the-field-with-live-demonstration-in-chicago.htm

http://money.cnn.com/2016/06/05/technology/sprint-verizon-can-you-hear-me-now/index.html

http://www.vault.com/company-profiles/telecommunications/sprint-nextel-corporation/company-overview.aspx

http://www.fiercewireless.com/wireless/sprint-s-iphone-7-could-go-up-to-200-mbps-some-markets-due-to-3-channel-carrier

http://logos.wikia.com/wiki/Sprint http://betanews.com/2005/06/23/sprint-nextel-

reveals-new-brand-identity/ http://hansstol.totaldesign.nl/en/sprint.html http://adage.com/article/agency-news/sprint-st

arts-agency-review-framily-push/294801/ http://time.com/money/3819318/sprint-promot

ions-deals-desperate/ http://money.cnn.com/2016/06/05/technology/

sprint-verizon-can-you-hear-me-now/ http://www.adbrands.net/us/sprint_us.htm

https://www.statista.com/statistics/192138/us-ad-spending-of-the-sprint-nextel-corporation/

References (cont’d) http://amigobulls.com/stocks/S/income-statement/annual

http://goodworks.sprint.com/1millionproject/

http://adage.com/article/cmo-strategy/sprint-kills-framily-plan/294632/

http://www.bloomberg.com/features/2016-how-to-fix-sprint/

https://www.statista.com/statistics/199359/market-share-of-wireless-carriers-in-the-us-by-subscriptions/

http://www.usatoday.com/story/tech/columnist/baig/2015/03/18/t-mobile-is-training-sites-on-business-customers/24963523/

http://708studios.com/wordpress/wp-content/uploads/RT_08_06.jpg

http://money.cnn.com/2016/03/11/technology/sprint-claure/

http://www.dmnews.com/features/att-cmo-heralds-targeted-approach/article/224906/

http://adage.com/article/digital/verizon-target-mobile-subscribers-ads/293356/

http://www.dmnews.com/features/att-cmo-heralds-targeted-approach/article/224906/

http://designreviver.com/inspiration/20-great-and-20-not-so-great-logo-redesigns/

https://www.statista.com/statistics/416850/average-duration-of-internet-use-age-device/

https://www.youtube.com/watch?v=PRol7AZ3POo https://www.youtube.com/watch?v=7KOpyjnFpUs https://www.youtube.com/watch?v=UlOZYJ3l9S