Converting Millennials to Verizon FiOS John Hopkinson Michael O’Connor Katelyn Walsack

Agenda Business Challenge Executive Summary Market Landscape Customer Insights Competitive Landscapes Product Analysis SWOT Analysis Mission Goals & Objectives Segmentation & Targeting Strategies & Tactics Our Marketing Campaign Marketing Schedule Measurements & Controls After Action Review

Challenge To develop an actionable marketing plan that will increase the Verizon FiOS market share with Millennials in the Pittsburgh areas.

Executive Summary Through appropriate research in regards to our competition and target demographic (millennials), we found that in order to convert and build brand awareness among millennials, we will take the following action: Launch a social media campaign that is interactive with social media users This will build overall brand awareness as millennials will become more familiar with what Verizon has to offer. Revamp the existing Verizon FiOS app to meet users’ needs Many have trouble using the app, so our goal is to make it more user-friendly and address the common issues users are experiencing.

Market Landscape Whites followed by African Americans make a large majority of the population of Pittsburgh Out of the 91% of Pittsburghers who complete H.S., 28% go on to receive their Bachelor's Source: http://www.census.gov/quickfacts/table/PST045215/4261000

Distribution of median household income Market Landscape The median household income of Pittsburgh is slightly lower than the U.S average of $53,000 The unemployment rate continues to gradually decrease overtime Distribution of median household income Unemployment Rate Sources: http://www.city-data.com/income/income-Pittsburgh-Pennsylvania.html http://www.deptofnumbers.com/income/pennsylvania/pittsburgh/ Source: http://data.bls.gov/timeseries/LAUMT423830000000003?data_tool=XGtable

Survey Methodology Distributed through social media and web link Sample Size: 46 Demographics: Who? Male and Female 18-33 years old Pittsburgh and surrounding suburbs Those surveyed currently pay for: An Internet Service (i.e., Comcast or Verizon, Internet by itself or with a packaged deal) A Streaming Subscription (i.e., Netflix) Major Current Providers Comcast – 51% Verizon – 40% Netflix – 8% 78% use Netflix in addition to another provider

Survey Results 51% The majority of millennials in this area live with 1-2 others that use a media source. 40% 2% 7% Verizon’s main competitor with millennials in the Pittsburgh area is Comcast. 70% 13% 9% 9%

Survey Results More than half of millennials use a streaming service between 1-10 hours per week. 48% 28% 17% 4% 2% Reliability, Speed, and Price matter most to millennials, respectively. 30% 22% 17% 11% 11% 9%

The Competitive Landscapes

Verizon Landscape Mission statement: “FiOS by Verizon is a better way of enjoying the internet with raging speeds for all your devices, TV channels you crave and home phone that's like your personal assistant. It delivers fiber optics straight to your front door with everything you want, just the way you want it.” Market Share 418,000 Fios internet subscriber net additions 178,000 Fios video subscriber net additions 2015 Consolidated Revenue:  $131.6 billion 2015 Net Income:  $17.88 billion Culture includes: 59% workforce diversity 7 of 13 Board members are women or people of color Approximately $25 billion spent with diverse suppliers since 2011 Number of customers Internet subscribers:  7 million Video subscribers:  5.8 million

Comcast Landscape Mission statement: Market Share: 22.6% “Comcast Cable is one of the nation's largest video, high-speed Internet and phone providers to residential customers under the XFINITY brand and also provides these services to businesses. Comcast has invested in technology to build a sophisticated network that delivers the fastest broadband speeds, and brings customers personalized video, communications and home management offerings.” Market Share:  22.6% 2015 Revenue:  $74.51 billion 2015 Net Income:  $8.6 billion Culture: “Innovation, passion, entrepreneurialism and integrity have driven Comcast to become a leading Fortune 50 company. The entrepreneurial spirit and diverse talents of our people enable us to create businesses that reshape industries.” Customers: Internet:  22.55 million Video:  22.3 million

Product analysis

Product analysis Provider Product Price Speed Channels Contract Offers Verizon  Single Play Starts at $49.99/mo. 50/50 Mbps TV not included 1 year agreement   Double Play Bundle Deal – $74.99/mo. Custom 1 year agreement plus 1 premium movie channel included for 3 mo. Triple Play Starts at $79.99/mo. 150/150 Mbps 2 year agreement (increases to 84.99/mo. after 1 year) plus STARZ and EPIX included for 12 mo.  Comcast Single Play Starts at $59.99 Up to 50 Mbps TV not included No term contract   Double Play Starts at $89.99 225+ $89.99 for 12 months with a 2 year agreement Triple Play Starts at $119.99 Up to 25 Mbps $119 for 12 months with a 2 year agreement

SWOT Analysis

Strengths Weaknesses Swot analysis Fastest internet speeds Great customer service Strong brand awareness Fastest internet speeds Competitive Advantage in relation to its Fiber Optic technology Weaknesses Limited FiOS footprint Union membership – higher costs Ineffective mobile app Small social media presence Cable service is second to Comcast Better picture & sound quality than cable

Opportunities Threats Swot analysis Enhance Verizon mobile app Joint marketing campaign with Verizon Wireless Increase social media interactivity Integrated social media campaign with mobile app Enhancing lives by connecting people to a variety of content on all devices, anywhere Threats Comcast – Verizon’s main competitor in Pittsburgh area Capital intensive (expensive) to expand FiOS footprint FCC restricts Verizon’s expansion in some areas “Cord cutting” millennials are ditching cable services for internet friendly streaming services

The Mission To set in motion a marketing campaign that will enlarge the Millennial clientele.

To be the preferred Internet provider of Millennials. The Goal To be the preferred Internet provider of Millennials.

Objectives 1. Increase market share by 6% by the first quarter 2017. 2. Increase social media interaction with consumers by 7% by the first quarter 2017. 3. Increase mobile engagement by 8% by the first quarter 2017.

Segmentation & Targeting Millennials, ages 18-33, with $40,000 annual income Allegheny County, Pittsburgh and surrounding suburbs

Strategies 1. Enhance Verizon Mobile App 2. Strengthen Verizon’s Social Media Outlets

Tactics

Enhance Verizon Mobile app Strengths “Recently watched” and “Favorites” category Makes it convenient to efficiently find what you want to watch Tells you what is on TV and coming up soon Weaknesses Awareness of the app is limited Poor streaming quality Video quality depends on where you are when using the app App abruptly shuts down without warning Tech support is not consistent Users claim tech support is not helpful

Enhance Verizon Mobile app Solutions: Market the existence of the app through commercials and social media to create more awareness Make the app more available when users are on the go Providing the best quality when users are traveling will encourage people to consistently use the app Fix bugs that cause app to shut down Improve tech support, so when users are having issues, they can be easily resolved Customer service can always be improved, giving providing users with a better experience

Strengthen Verizon Social Media Outlets Facebook Strengths: Very responsive to messages/Support usually replies in minutes Weaknesses: Overload of negative comments Only 500,000 likes Posts include limited interactivity with Facebook users Overburdened with ads, ads unrelated to product/other Verizon services Improvements: More product driven ads, less “commercials” FIOS only page Link Social Media pages together Do not ignore negative comments Utilize platform to gain customer feedback

Strengthen Verizon Social Media Outlets Twitter Strengths: Engages with customers’ personal accounts, regularly replying to their feedback/service issues Weaknesses: Only 135,000 followers No advertisement for mobile app Lacks regular promotion of deals and services Improvements: Post more questions to get customers’ opinions on specific topics/general issues with their service Tailor content to current events (tweets, banner, display picture, etc.) Utilizing the hashtag feature allows posts to reach a larger audience Participate in the discussion of current events such as holidays and advertise television specials

Strengthen Verizon Social Media Outlets Instagram Strengths: Strong following on main Verizon Instagram account Weaknesses: No specific Verizon Fios Instagram account Improvements: Create specific account for Verizon Fios Post 4-5 times a week to keep customers engaged Utilize Instagram story feature to advertise deals/specials

Strengthen Verizon Social Media Outlets Snapchat Strengths: N/A Weaknesses: No presence on Snapchat at all Improvements: Create overall Verizon account and specific account for Verizon Fios Post daily (at least 5 times a week) Advertisements should be subtle and light-hearted instead of blunt Utilize Snapchat Story feature

Our Marketing Campaign Results Customer Action Awareness Retention Increased Customer Engagement Social Media Interaction Mobile App Engagement Favor newly improved mobile app Engage in Social Media Platforms Buy/Switch product/service User-friendly Easy to navigate Immediate feedback On-hand customer service Engaging atmosphere

MARKETING SCHEDULE December January February 3 10 17 24 31 7 14 21 28 11 18 25 Release of new APP Pre-release promotion Post-release promotion Social Media Ads Control #1 Control #2

Measurements Mobile App Campaign Views - How many people are viewing our mobile app? Downloads - How many people downloaded the mobile app? Ratings and Comments - What is the feedback you are receiving on a 5-star scale? Social Media Campaign Facebook: Track increase in brand awareness through the rate of views, likes, shares, and comments Instagram: Track the growth of the Verizon Fios page by analyzing likes, follows, comments, and shares Twitter: Track how effective tweets are by analyzing impressions and total engagements Snapchat: Track Story views, individual snapchat views, and replies

Controls If Facebook ads don’t increase FiOS APP downloads by 8%, create a giveaway on FiOS viewing devices for people that liked our page and downloaded the APP. If social media traffic hasn’t increased 12% after first two months, launch incremental campaign on Youtube.

After Action Review Identify portions of the strategy that worked. What solicited the most prospect response? What solicited the most conversion? Identify portions of the strategy that fell short of expectations. Where did response drop? Why? Identify areas of improvement. Timing/Schedule Message