telus - AdvertProj

TELUS
This case was prepared from publicly available sources by Douglas Judson, under the supervision of Professor
Michael Guolla. Copyright © 2008 by The Telfer School of Management at the University of Ottawa, Ottawa,
Ontario, Canada.
TELUS is a Canadian national telecommunications company providing a wide range of
communications products and services, including internet, voice, entertainment, and video.
Based in Burnaby, British Columbia, TELUS emerged as an underdog in the Canadian
telecommunications industry, but has consistently seen growth in its consumer mobile phone
service, for which it is most widely known across the country. Having fought for market share
against giants Bell and Rogers within the mobility sector, TELUS has successfully adapted its
“future friendly” brand for each new evolution of the mobile phone industry in Canada. The
challenges of ever-changing technology and technological integration, increasingly tech-savvy
consumers, and gradual regulatory liberalization have been met with continued extension and
modification of TELUS’ message.
History of the Brand
1984-1996: Early Days for the Industry & Brand
While cell phones have been available since the 1980s, the cost of handsets and airtime in the
early days were exorbitant by contemporary standards. For the most part, outside of key
business clients, cellular providers had not engaged the consumer market.
When Clearnet Communications, the predecessor of present-day TELUS’ brand image, came
onto the scene with its initial consumer cell phone offerings, marketing efforts were largely one
dimensional. Providers offered basic rate plans and few handsets, which was concurrent with
the technological capabilities of the devices. Most promotional efforts at this stage were
focused on educating consumers on the need to ‘go mobile’, in a market where household and
business phone lines were the norm. This was not an easy task for fledgling Clearnet, who
faced tough competition against the established credibility and profile of longstanding
telecommunications contenders Rogers and Bell. In addition, existing cell phone users were
largely tied to long-term contracts for analog service, offering slim returns for carriers wishing
to target their marketing efforts at this more-experienced audience.
Given these obstacles, Clearnet opted to prioritize the brand itself and differentiate on image,
rather than to fixate their strategy on pricing, which would easily be copied by competitors in
the tightly-controlled market. Media investments in this industry are among the largest in
Canada. Thus, larger competitors with deep pockets and established brand recognition were at
an advantage. Clearnet had to successfully promote itself both as a company and as a service in
order to gain the same credibility as a viable option for consumers. To maximize return on a
more limited media budget, execution was paramount to building brand equity.1
1997-2000: Establishing Product Basics
Launch of Mainstay Theme
It was not until the mid-1990s that the consumer market opened up, following technological
advancement in mobile phone hardware and the issuance of digital licensing agreements with
Industry Canada. Prior to this time, cellular phone service operated exclusively on inefficient
and limiting analog networks, which lacked the capacity for data transmission.
In the fall of 1997, the expansion of digital services ushered in contemporary Personal
Communication Services (PCS). Clearnet’s own campaign used TV, print, and out-of-home
media which focused on creating desire for cellular phones. The campaign transformed a very
general promotion of cellular phones into an exclusive promotion of the Clearnet brand by
taking on the tranquility and simplicity of nature. Clearnet’s agency, Taxi, created a campaign
“that would deal with consumers’ unconscious fear of technology.” 2 Creator Paul Lavoie drew
his inspiration from a documentary about insects, where he found that the music and camera
work made the insects’ activities make them appear almost human. The launch campaign
included images of bees and foliage, set against simplistic white backgrounds (Figure 1). The
intent to create a “future friendly” message was evident in the vibrant images.
Figure 1
1
2
“TELUS,” CASSIES Case Library (http://www.cassies.ca/caselibrary/), 2007, p. 3.
Bellett, Gerry, "The future is friendly for those Telus critters," Vancouver Sun , 24 December 2002.
2
Into 1998, Clearnet capitalized on the few product features available. Clearnet offered free
calls on a subscriber’s birthday and unlimited weekend calling (Figure 2). The ads reinforced
the “future friendly” positioning by communicating in a very conversational manner.
Figure 2
The 1999 series of ads honed in on the millennial mindset of change. Ads featuring a series of
reptiles (some of which are reputed for changing colour) questioned the utility of maintaining a
home phone at all. By promoting free evenings and weekends on PCS phones, TELUS’ campaign
worked to unseat the perceived necessity of paying for a landline. In the ads, the frog’s escape
from the jar represented freedom and independence (Figure 3).3 The gradual transition to the
use of the clinging lizard helped to freshen up the home phone message – reinvigorating the
‘future friendly’ thrust of the campaign.
3
“Clearnet,” CASSIES Case Library (http://www.cassies.ca/caselibrary/), 2001, p. 4.
3
Figure 3
The same colourful tree frog was used in the 1999 Christmas campaign, with the line “watch
their eyes light up.”
Transition to TELUS
In 2000, then-TELUS, an Alberta-based firm, acquired the fledgling Clearnet Communications
for $6.6 billion. This was an astonishing amount for a company launched only three years
earlier, and was testimony to the value Clearnet had developed for their brand.4 Contrary to
what is typically expected, it was the larger firm, TELUS, that adopted the branding of the
smaller firm, Clearnet. 5 As part of the seamless transition, often both company’s logos were
used on advertising media to establish the initial transition (Figure 4).
Figure 4
4
5
“Clearnet,” p. 5.
“TELUS,” p. 3.
4
During this period, the exuberant Disco Duck marked a bold transition to a new and innovative
product offering by TELUS (Figure 5). In introducing prepaid phone service, TELUS set up a web
portal for customers to manage their accounts, thereby surpassing the level of ‘friendly’ service
offered by prepaid-competitors. The duck’s webbed feet provided a metaphor for the web,
which at the time was “the word for technical innovation.”6 In keeping with TELUS’ decision to
build brand equity in the face of competition, the use of peppy animals to illustrate userfriendliness was thought to decrease consumer anxiety.
6
“Clearnet,” p. 4.
5
Figure 5
6
2001-2007: Increased Depth of Product Offering
After the TELUS name was firmly affixed to the former Clearnet brand, and with the coming-ofage of the consumer cell phone market due to technological advancements and increased
consumer awareness, TELUS began to shift the focus of its future friendly messaging onto new
or previously inconsequential features.
In 2001, a focus on handsets showcased the physical hardware in a fun and lighthearted way.
Penguins were the critters of choice (Figure 6). Again, TELUS used the amicable animals to
break up the monotony of the technology line-up.
Figure 6
In 2002, TELUS built on its campaign of cool phones by emphasizing the phones’ capabilities
more heavily – such as games and text messaging (Figure 7). During the holiday season, one
campaign attempted to bestow a cult-status flavour, saying “Avoid the re-gift. Ask for a cool
phone.”7 The predominant use of monkeys in this campaign communicated an energetic
playfulness through easily characterized expressions.
7
Vinakmens, Kristen, “Telus monkeys reach cult status,” Strategymag.com,
http://strategymag.com/articles/magazine/20021216/telus.html
7
Figure 7
2003’s added-value component across the market was the camera phone. Memorable ads
featured a small pig in a number of different executions, demonstrating likely uses of the new
camera function. ‘Spokesporkers’ Lucie and Sparky played off of the phrase ‘when pigs fly’ to
illustrate that some events are just so sudden and unexpected that only a photo taken
immediately can do them justice (Figure 8).8 The use of retro music, such as 99 Luftballoons,
helped TELUS to bridge the gap for the eighties generation, now in their prime earning years,
who may have felt uneasy about any ‘friendliness’ the future had to offer. Notably, TELUS’
identity was pervasive enough at this time that they were able to place a number of out-ofhome ‘teaser’ ads – even though these ads did not display the TELUS name, “the iconic look
was all consumers needed to know who the message was from.” 9
Figure 8
By 2004, cellular phones had hit the mainstream, and customization options were being sought.
The extension of TELUS’ longstanding use of animals and bright-to-white colour contrast was by
no means a stretch when it came time to exhibit the range of colourful handsets available
(Figure 9). The focus on features by numerous players in the mobile phone industry suggested
that consumers no longer needed to be sold on core product uses.
8
Kirbyson, Geoff, “TELUS Mobility – animal instincts”, BrandChannel.com,
http://www.brandchannel.com/print_page.asp?ar_id=165&section=profile
9
“TELUS,” p. 7.
8
Figure 9
2005 saw the introduction of TV and gaming functions on mobile phones. TELUS opted to use
bunnies to bring to life gaming features like Texas Hold’em, television, and music in an
endearing and manner (Figure 10). As a result of their success, the rabbits were used
considerably through the year and well into the holiday season as a part of more generic ads.
9
Figure 10
2005’s signature holiday ad series featured Hazina the baby hippo, set to the 1950s classic I
Want a Hippopotamus for Christmas. The popularity and recognition of the ads, designed to
appeal to a wide audience, quickly escalated, to the point that retailers could not keep stuffed
hippos on store shelves.10
The introduction of SPARK in 2006 formally gave a name to the bundle of the newest services
and features on offer through TELUS. The campaign pushed the ease of subscribing to the
SPARK bundle (‘future friendly’), while simultaneously courting clients in regards to one of the
newest leading features, downloadable music. One researcher observed that initiatives such as
the SPARK bundle create a marketing advantage for TELUS over their competitors because it
certifies their position as a friendly access provider (Figure 11).11
10
11
Hall, Jamie, “People,” Edmonton Journal, 21 December 2005.
Lazarus, Eve, “Ad Advantage,” Marketing. Toronto: 6 February 2006. Vol. 111, Iss. 5, p. 6 (1 pp.).
10
Figure 11
2007-2008: Market Maturation
Segmentation & Transition to Smartphone Technology
TELUS has further expanded its messaging by reaching out to specific demographic
communities with more than the nuanced appeals in broad-based messaging. Ads reaching out
to the South Asian community used the usual bright fish and catchy music, with a combination
of English and either Hindi or Punjabi. The ads, for 2008’s smartphones, changed the English
tagline of “the ultimate do-it-alls” to a loose translation to “do whatever you want.” Further,
the ads drop the names of specific cultural events and first names, to allow for easier
identification with the brand for the target segment (Figure 12). Some ads referred to
Bollywood movies and arranged marriages, in the same cute humour and “future friendly”
theme. The checkbox options visible across TELUS’ still advertising media help to exemplify
smartphone’s slurry of communication options and life-simplifying features.12
12
Lazarus, Eve, “TELUS reaches out in Hindi and Punjabi,” MarketingMag.ca,
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20080525_211844_6740
11
Figure 12
Wireless Number Portability (WNP)
With the introduction of Wireless Number Portability, allowing subscribers to keep their phone
number when changing carriers, this year’s campaign reflected a much more developed market
for mobile phones. The emphasis wholly shifted from market development to customer
retention, given the increased ease of switching cell phone providers. In 2007, TELUS reunited
some of the best-loved animals from previous campaigns, leveraging the brand’s likeability to
reinforce the appeal of TELUS’ Future Friendly positioning. Customers were encouraged to “get
where the going’s good”, subtle draw on competitor’s existing clients, a previously difficult
segment to attract.
One Bell ad launched for this purpose asserted that Bell had the most powerful network in
western Canada. TELUS eventually launched a lawsuit against Bell, claiming that the ad
misrepresented the minimal investment that Bell had made to secure its own infrastructure in
western Canada. TELUS felt that such ads misled customers at a time when inflated turnover
numbers were imminent. 13
Two-Brand Strategy: Koodo Launch
2008 saw TELUS take the first steps to match the two-brand strategy of its competition. Where
Bell Mobility had created spin-off Solo Mobile to encapsulate the essence of low-cost cellular
contracts, Rogers had acquired Fido for the same purpose. A new player in the Canadian
mobile phone market, Virgin Mobile Canada, was also beginning to seek out market share
13
McLean, Catherine, “Suits keep flying in wireless service marketing wars,” Globe and Mail, 22 March 2007.
12
through a network partnership agreement between Bell Canada and Virgin. These fighter
brands were used as pawns to advance the market share of each of the primary vendors by
reaching out to specific demographic groups with low-price strategies and packages that would
not compromise the position of the core company’s mobility products (Table 1).
Koodo Mobile centered its branding around the concept of “slimming” phone bills by cutting
the system access fees, in their own ‘no-additives’ approach to the mobile phone spectrum. In
advertising, retro-styled characters in fluorescent ‘80s-era aerobics-wear lead the charge
against cutting “cellular cellulite”, curbing the “mobile munchies”, and transforming mobile bills
“from porky to puny” (Figure 13). Unlike its competition, Solo, Fido, and Virgin, Koodo doesn’t
offer video calling, email, or music – instead focusing on simple talk and text packages.14
Another defining feature of the Koodo model was that customers could pay off the cost of their
handset over several bills. In addition, customers were able to accumulate a ‘tab’ through
regular increments added to monthly bills, which could then be placed as a down payment
towards the purchase of a new phone. This concept was new to Canada’s consumer mobile
phone industry, where most carriers insist on clients committing to a contract in order to
subsidize the cost of the phone itself.
A break from TELUS’ traditional segmentation of the “future friendly” brand, TELUS hoped to
better define its overall product offering to parallel the two-brand strategy offered by
competitors Bell and Rogers.
14
Laird, Kristin, “Koodo gets back to basics – no TV, no music” MarketingMag.ca,
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20080401_777333_2010
13
Figure 13
14
Subsidiary
Carrier
Storefront /
Point of Sale
Koodo kiosks,
major retail
outlets (ie. WalMart)
Koodo
Mobile
TELUS
Solo Mobile
Bell
Bell Canada
outlets
Virgin
Mobile
Bell/Virgin
Virgin kiosks
Fido
Solutions
Rogers
Fido stores and
kiosks
Brand Characteristics
- ‘Slimming’ phone bills by cutting ‘fatty’ system access fees and billing for only those features used.
- Ability for customers to generate a ‘tab’ through incremental payments on each bill to either pay for
their existing handset or save money towards the purchase of a new one.
- Back to basics: no TV, no music.
- Initially targeted the age 14-21 group with prepaid plans only, eventually moving to include contractpricing in order to compete more effectively with Fido (including per-second billing).
- Packages tend to offer significantly more text messaging flexibility than other providers.
- Customer service is administered by Bell Canada, but exclusive access provided by special access
number “#SOLO”.
- Partnership between Bell and Virgin International, whereby Virgin’s phones, sold through their own
kiosk locations, would operate off of the Bell Mobility network.
- Virgin engages in a number of public stunts, including those carried out by Virgin executive Richard
Branson, and leverages its brand through big name concerts and other mainstream, urban events.
- Founded by T-Mobile in 1996 to target the age 18-35 group, bought out by Rogers Wireless in 2004.
- First to offer per-second billing, rather than traditional per-minute billing (though most major carriers
now use the per-minute standard).
- In-store exchange for phones that fail manufacturers’ one-year warranty.
- Free minute-tracker service, supporting control of original “You are the master” service message.
- FidoDollars earned commensurate to charges, could be used against future purchases.
Table 1
15
Marck, Paul, “It’s a jungle out there,” Edmonton Journal, 22 February 2006.
15
Creative Elements
Wireless Wildlife
The use of spokes-animals to represent the various cellular brands in Canada was used
continuously, or at least in part, by each of the major providers at one time or another. Fido
began in 1996 with dogs, under the theme “You are the master”, to express a certain level of
service and control held by the subscriber. Manitoba Telecom Services used Morty, the
talkative and adventurous bison for several year – eventually receiving recognition for
“sustained success” at the 2003 CASSIES Awards.16 Bell Canada first launched its use of beavers
Frank and Gordon during the Superbowl in 2006. The anthropomorphized cartoon beavers
were featured in a number of humourous vignettes intended to showcase the features
available across the line of Bell Canada products. Bell retired the beavers in 2008.
TELUS’ own spokescritters, as the company refers to them, have become a mainstay since the
brand’s conception as Clearnet. In 2004, Wade Oosterman, TELUS’ executive vice president of
sales and marketing, commented that TELUS has used of animals over humans in its advertising
campaign for a number of logistical and messaging reasons. Oosterman noted that the
spokescritters are less expensive, and tend not to make frivolous demands of their employers.
Additionally, Oosterman maintains that animal-themed advertising campaigns strike a great
balance between adults and children – often the same cuddly duck and humourous situation
will appeal to each in a different way. “When people see one of our spots,” said Oosterman,
“they know right away that it is a TELUS Mobility commercial. When that happens, you spend
less time educating people who the message is from and more time educating them on what
the message is about.”17
One professor of marketing and strategy remarked that “With an animal, you don’t get the
same barriers as with people. If you put a person in front of me but they don’t look like me,
aren’t the right age, or don’t have the same skin tone, those are barriers to my relating to
them.” Along with circumventing language barriers and issues with, for instance, French
translation, TELUS’ use of animals helps to avoid all of these problems.18
Alan Middleton, a professor of marketing at York University’s Schulich School of Business, adds
that in every purchase consumers make, there’s both a rational and an emotional element.
With high-tech companies in particular, excessive focus on rational aspects can be off-putting
16
Kirbyson, Geoff.
Kirbyson, Geoff.
18
Campbell, Jennifer, “You’re no bunny will some bunny calls you,” Ottawa Citizen, 15 December 2005.
17
for potential customers. The use of cute animals, with whom people can have few
reservations, helps to inflate the emotional considerations. This is corroborated by Rick
Seifeddine, vice president of TELUS’ marketing and communications department, who holds
that “To say ‘introducing the Motorola LXD3574 with the following 20 features’ is an
intimidating way to sell things. And that is why the tagline, ‘the future is friendly’, is at the
heart of the campaign.” 19
By making the cell phone purchase process seem more ‘fun’, it makes a swift transition into a
lower-involvement decision rather than the high-involvement, technical process consumers
would normally associate with a purchase that will last for the term of a 3-year contract.20
Imitation Strategy
Some experts suggest that the popular use of animals and the similarity of product and contract
offerings among the big three mobile phone providers is as much about mimicking as it is about
strategy.21 Certainly each company has moved to establish a secondary brand to compete with
those of their rivals, and each company has tested a mix of prepaid and postpaid contract
options. With the launch and withdrawal of features on offer, each provider is continually
searching for a new means with which to differentiate its brand in a way unique and difficult to
replicate by their competition.
TELUS’ purposeful highlighting of brand equity and friendly imaging over the more blunt,
numerical ads of its competition in the early days saw the advent of more emotionally-engaging
advertisements by competitors. For instance, during the closing ceremonies of the 2004
Olympics, Bell launched a series of television ads centered on the theme of “connectedness”,
which would feature scenes of different individuals from supposedly different walks of life, and
some creative means by which they were connected (Figure 14). 22
19
Bhandari, Aparita, “Cellphone Corral,” Toronto Star, 20 December 2004.
Campbell, Jennifer.
21
Campbell, Jennifer.
22
Bhandari, Aparita, “Cellphone Corral,” Toronto Star, 20 December 2004.
20
17
Figure 14
As stated, Bell and Rogers each benefitted from their reputed, historically recognized products
in other categories, such as home phone, cable television, and internet services. The frequency
with which they have changed the foundation of their campaign has been much higher. Only
two years after the connectedness campaign, in 2006, Bell chose to recruit spokescritters of its
own, humourous animated beavers Frank and Gordon (Figure 15). In a nod to their
competition, the launch ad depicted a TELUS lizard and a FIDO hound waiting to audition for
the role alongside the chosen beavers.
Bell’s incorporation of animals into their campaign lasted three years, and in a break from the
trend started by TELUS, whose animals were real, vibrant animals, who could not speak, and
FIDO, who used dogs to liken their service to the pet-and-master relationship, Bell’s animated
talking beavers carried out irreverent skits to illustrate product features. Notably, the use of
the beavers marked the first time in which Bell had integrated its promotion strategy for each
segment of its business – internet, TV, mobile, and phone services. Frank and Gordon won a
top prize at the Canadian Marketing Association Awards in 2006, along with thousands of
dollars in merchandise sales going towards Kids Help Phone, a counseling service for youth.
Naturally, the zany beavers had captivated young audiences.23
23
Rocha, Roberto, “Bell Says Goodbye to Beavers,” The Gazette, 2 August 2008.
18
Figure 15
Rogers, on the other hand, is a default household payable in many regions due to the necessity
of purchasing cable services from the company. With respect to mobility and telephone
services, Rogers has maintained its position by pushing, in moderation, the benefits of bundling
services together to save (Figure 16). Ads have incorporated a lesser emotional aspect by
highlighting the frequency with which various packages allow for unlimited calling to a selected
list of personal contacts. In addition, Rogers takes advantage of seasonal purchase times, such
as back to school, by highlighting the ease of staying in touch. Recent ads have depicted some
humourous interplay between various family members, or have used ordinary parents and
older adults, speaking humbly and candidly about the simplicity of their Rogers services and
their comfort with the technology. The recent launch of the Apple iPhone in Canada, available
exclusively on the Rogers network, has allowed Rogers to focus some advertisements on virtues
of its line of mobile phones alone.
Figure 16
Perhaps indicative of the copycat nature of the big three cellular carriers, one litigious depiction
of the rigid competition between the major brands showcased a Bell-branded cheetah
swallowing a Rogers-branded rabbit to illustrate the superiority of their internet speed.24 In the
Canadian mobile telephone sphere, one-upmanship and borrowed ideas continues to pervade
24
McLean, Catherine.
19
advertising media, leaving each of the big three companies looking for new, creative grounds
on which to expand and solidify their subscriber base.
Campaign Integration
Much of the historical success of the TELUS brand has been in its ability to evolve to encompass
new facets of an ever-changing product. The “future friendly” position has grown to
encapsulate the significance of technological advancements, respond to competitors’ new
ideas, and broaden and deepen the core product offering of TELUS’ mobility service.
In western Canada, TELUS is known predominantly as a provider of cable, internet, and home
phone services in addition to their nationally recognized mobility services. On this front, TELUS
has been able to successfully expand the campaign for other services as well. For instance, by
characterizing different services as different animals, such as one popular print ad depicting a
trio of parrots and emphasizing the benefits of TELUS home bundles, TELUS is able to offer a
province-by-province customization of their messaging (Figure 17). Different services are
available through TELUS in different provinces. “The ads are meant to show that a bundle is
better and that TELUS services are stronger when grouped together,” maintains Rachael Mens,
senior manager for media campaign planning for TELUS.25
25
Laird, Kristin, “Parrots Bundle Together for TELUS,” MarketingMag.ca,
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20080623_172843_7184
20
Figure 17
21
Results26
In evaluating the success of its decade-long “future friendly” campaign, TELUS has referred to
three measurements: average revenue per user (ARPU), churn, and net additions.
ARPU is considered the most important metric, as it is a representation of the profitability of
the company’s client base. TELUS has consistently had the highest ARPU in its category since
1998 (Figure 18).
Figure 18
Churn is a measure of retention. The churn percentage represents the proportion of
subscribers leaving the brand. In an industry where the cost of acquiring new clients is high
(advertising costs, etc.), a healthy churn ratio is important to TELUS as it tends to reflect client
happiness. Churn ratings for TELUS compared to its competitors can be split into three time
periods. From Quarter 1 in 1998 to Quarter 2 in 2000, during the Clearnet era, churn rates
were the lowest in the category. Following the TELUS buy-out of Clearnet, churn rates
increased, as could be expected during the transition phase. Since the second half of 2002,
TELUS has led the industry in 12 of the past 19 quarters (Figure 19).
26
“TELUS,” p. 7.
22
Figure 19
Net additions are a measure of ongoing growth. In order to present an equivalent
representation of growth for Bell, Rogers, and TELUS, net additions is indexed on a year-overyear basis, to account for the established brand equity and recognition from other categories
had by Rogers and Bell. Of note, Rogers’ numbers include the additions made by acquired
subsidiary FIDO in 2004 and 2005. It is speculated that if these numbers were broken down
separately, TELUS would have led in net additions in 5 of the past 9 years (Figure 20).
23
Figure 20
Is the Future Friendly?
Canada’s wireless industry is growing. As a major player in the industry, TELUS has seen
continuous growth in its own clientele. The market has also matured, with a major shift having
taken place from marketing the product based on need, versus the present marketing based on
handset and much-advanced rate plan characteristics.
As mobile phones become more commonplace, and truly do begin to overtake the traditional
foothold held by residential landlines as a consumer’s primary phone, not only has the price to
users increased due to more feature availability and increased usage, but costs can be clearly
differentiated between those customers opting for prepaid rate plans, and those choosing the
traditional postpaid contract. Within this, charges can be broken down between voice and
data, the latter beginning to consume a larger percentage of overall cost as data features make
inroads on the usage of voice calls (Figure 21).
24
Figure 21
27
Following Industry Canada’s auction of the wireless spectrum in 2008, the National Post
compiled data pertaining to what share of the market each of wireless companies would have
access to (Table 2). Following the auction, it is anticipated that Globalive may emerge as the
fourth big name on Canada’s mobility frontier.
Table 2
28
By most measures of corporate stability, TELUS is performing strongly in its field. The wireless
division has recorded significant increases in revenues, subscribership, as well as decreases in
customer turnover. The continuous extension of the “future friendly” message and its
successful campaign theme of spokescritters and humour has played well in the tumultuous
industry. Canada’s wireless industry is marked by intense competition, and as a result, overall
27
Compiled from TELUS Investor Relations Data, http://www.about.telus.com; Data ARPU revenue average not
available prior to Q1 in 2005.
28
Geoge-Cosh, David, “Wireless Users Stand to Win”, National Post, 22 July 2008.
25
industry pricing and customer acquisition efforts have become highly competitive across the
mobility spectrum. In many ways, the mobile phone industry in Canada has become a war of
brand positioning.
Poised for growth, the wireless segment in Canada is expected to expand from $41.2 billion in
2006 to $47 billion in 2009. The overall penetration level for mobile phones in Canada remains
at approximately 52%, substantially lower than that of the United States, at 70%, and other
developed countries. Clearly for TELUS, opportunities for subscriber growth abound in
Canada.29 The number of mobile phone subscribers in Canada exceeded 18.9 million in 2007, of
Angus Reid Strategies found that 18% “could not live without their mobile phones”.30
At the same time, research suggests that some of the new features, such as video and webready functionality, though widely available and subscribed to, are not being utilized to the
extent the focus of advertisements would lead audiences to believe. For instance, while 25% of
Canadian mobile phones in use have video functionality, only 2-4% of people actually utilize the
service. Traditional data applications, such as text messaging, are growing in prominence, with
the number of text messages sent by Canadians in 2006 doubling to 9.5 billion in 2007.
Solutions Research Group in Toronto suggests that the increasing frequency with which
consumers are upgrading their mobile hardware may be more akin to fashion, and not to the
slurry of features available. 31
While TELUS’ current creative strategy has been popular with audiences as it evolves to keep
with the dynamic environment brought on by technological advancement and competition,
some critics question whether, if at a point, it has become mundane. Is it still just another
animal with another phone? The genesis of the smartphone-era, ushered in by the BlackBerry
family, raises questions as to whether TELUS’ “future friendly” mantra can keep both pace and
suitability with these multifunctional ‘lifestyle’ devices, or if this provides an opportunity for the
corporation to consider following a thematic tangent.
29
30
31
Datamonitor, “TELUS Corporation Company Profile,” 14 January 2008.
Daniels, Chris, “I Want My PDA”, Marketing. Toronto: Oct 15, 2007. Vol. 112, Iss. 19, p. 48-29 (2 pp.).
Daniels, Chris.
26
Appendix
Typical Clearnet Product and Rate Plan, 2000
Figure 22
32
Archived Clearnet site, maintained at http://rebellium.org/portfolio/clearnet2000/index.html
27
32
Typical TELUS Product and Rate Plan, 2008
Figure 23
28