Marketing Plan Nextel\'s Marketing Plan for Industrial/Business

Marketing Plan

Nextel's Marketing Plan for Industrial/Business Customers

Industry Overview a. Market Competitors

Nextel comes in the competitive carrier service market in the U.S., competing with Sprint PCS and other large industries like Verizon Corp. And Cingular Wireless LLC. Almost in the same time line as Sprint PCS, Nextel started new approach to increase sales by maximizing e-commerce strategy. Revolution in web performance and thorough accessible service via web site has put Nextel as major player and gained secure position in top wireless-service sellers. Major purchases happen through online transactions. This has put Nextel one step ahead Verizon and Cingular. Moreover, although targeting for major businesses, the company has taken advantage from its growing image toward special niches, for example blue-collar workers in remote construction sites (Long, 2001).

b. Nextel's Market Position and Market Share

Nextel's current position is quite solid, as it has been serving 80% of 500 U.S. companies, including state firms. It made $8.7 billion domestic revenue in 2002 (Nextel, 2003). Both Nextel Communication and Nextel Partners announced their sales increase in 2002 for 56% and reduced about 40% loss than 2001. Along with the sales boost, the company secured high image and strong investors trust in stock market (Clabaugh, 2003).

Nextel has strong company reliability, as not only covering top business market; Nextel also sells its service to small and medium-sized market. It has built reliable infrastructure in technology with Motorola and assign marketing and retail management professionally to Nextel Partners to manage the customer reach to each location.

2. Current Company Situation a. Market Description

Nextel targets "key business segments and verticals" (Nextel, 2003). The company's initial objective is the "enterprises and general business," according to the company web site. It has already had strong position in the market with mass type of service. Currently around 90% of Nextel's customers are businesses. However Nextel also targets the young people that are estimated to use wireless service along with their activities.

b. Product Review

Nextel has applied technology and service differentiation for national customers, but accordingly developed international support. Businesses can benefit from the data speed Nextel offers and the basis platform, the integrated Digital Enhanced Network (iDEN™). From one platform, customers may opt from Digital Cellular for message delivery service; Direct ConnectSM Service, which enables businesspeople (and individuals) to communicate each other with digital walkie-talkie without telephone call; Nextel Mobile Messaging, for text and two-way messaging; and Nextel Online® Service, a type of wireless Internet access and maintaining virtual office. Also, with Motorola iBoard™, customers can manage their emails and other Java-enabled applications from practically anywhere using hand phone and communicators. Nextel explains on its company web site that along with Nextel Partners, they have been serving 198 out of the top 200 U.S. markets, with 11.1 million subscribers in the first quarter of 2003.

c. Distribution Review

As Nextel operates thoroughly to give wireless service the best performance and complete assistance for business solution, the company has managed to smoothen the line from the production to the end users. Nextel and Nextel Partners work together in providing retail service in 31 states to support its wireless service. Nextel Partners planned to expand their retail store to more than 40 states (Business Wire, 2003).