Harvard Case - In-housing Digital Marketing at Sprint Corp.
"In-housing Digital Marketing at Sprint Corp." Harvard business case study is written by David E. Bell, Rajiv Lal, Olivia Hull. It deals with the challenges in the field of Marketing. The case study is 27 page(s) long and it was first published on : Jun 3, 2020
At Fern Fort University, we recommend that Sprint Corp. proceed with in-housing its digital marketing operations. This strategy will allow Sprint to gain greater control over its brand messaging, optimize marketing spend, and foster a more agile and data-driven approach to customer engagement.
2. Background
Sprint Corp., a major telecommunications company, faced declining market share and customer satisfaction in the face of fierce competition from rivals like Verizon and AT&T. The company recognized the need to enhance its digital marketing capabilities to better connect with its target audience and drive growth. The case study focuses on Sprint's decision to bring its digital marketing operations in-house, moving away from its previous reliance on external agencies.
The main protagonists of the case study are:
- Sprint's leadership team: Facing pressure to improve market performance, they must make a strategic decision about the best way to manage digital marketing.
- Digital marketing team: The internal team responsible for executing the digital marketing strategy, they need to be equipped with the necessary skills and resources.
- External agencies: The agencies previously responsible for Sprint's digital marketing, they face potential loss of business and need to adapt to the changing landscape.
3. Analysis of the Case Study
To analyze Sprint's situation, we can use the following frameworks:
1. SWOT Analysis:
- Strengths: Strong brand recognition, existing customer base, access to valuable customer data.
- Weaknesses: Lack of in-house digital marketing expertise, potential for internal bureaucracy.
- Opportunities: Leverage data analytics to personalize marketing messages, develop innovative digital campaigns, expand into new digital channels.
- Threats: Competition from established players, rapid evolution of digital marketing landscape, potential for data privacy concerns.
2. PESTEL Analysis:
- Political: Regulatory changes related to data privacy and telecommunications.
- Economic: Fluctuations in consumer spending and competition from low-cost carriers.
- Social: Growing demand for mobile data and digital services, increasing reliance on social media.
- Technological: Rapid advancements in mobile technology, artificial intelligence, and digital marketing tools.
- Environmental: Sustainability concerns and the impact of digital marketing on the environment.
- Legal: Compliance with advertising regulations and data protection laws.
3. Porter's Five Forces:
- Threat of new entrants: High due to the low barriers to entry in the digital marketing space.
- Bargaining power of buyers: High due to the availability of multiple telecommunications providers.
- Bargaining power of suppliers: Moderate, as Sprint relies on technology providers and digital marketing platforms.
- Threat of substitute products: High due to the availability of alternative communication channels (e.g., social media, messaging apps).
- Rivalry among existing competitors: Intense due to the competitive nature of the telecommunications industry.
4. Marketing Mix (4Ps):
- Product: Sprint's core product is telecommunications services, but it also offers value-added services like mobile data plans, entertainment streaming, and device financing.
- Price: Sprint's pricing strategy needs to be competitive and attractive to its target market, while also ensuring profitability.
- Place: Sprint's distribution channels include its own retail stores, online platforms, and partnerships with third-party retailers.
- Promotion: Sprint needs to utilize a mix of traditional and digital marketing channels to reach its target audience effectively.
4. Recommendations
Based on the analysis, we recommend the following steps for Sprint:
Build a Strong Internal Digital Marketing Team:
- Recruit and retain experienced digital marketing professionals with expertise in SEO, SEM, social media, content marketing, and data analytics.
- Invest in training and development programs to ensure the team stays up-to-date with the latest trends and technologies.
- Establish clear roles and responsibilities within the team to optimize efficiency and collaboration.
Develop a Data-Driven Marketing Strategy:
- Utilize customer data to personalize marketing messages and target specific segments.
- Implement a robust analytics platform to track campaign performance and measure ROI.
- Leverage AI and machine learning to automate marketing tasks and optimize campaign effectiveness.
Embrace Innovation and Experimentation:
- Explore emerging digital marketing channels and technologies to stay ahead of the competition.
- Conduct A/B testing and pilot programs to identify what works best for the target audience.
- Foster a culture of experimentation and continuous improvement within the team.
Focus on Customer Experience:
- Create a seamless and engaging customer journey across all digital touchpoints.
- Utilize customer relationship management (CRM) tools to personalize interactions and build loyalty.
- Seek feedback from customers and actively address their concerns.
Develop a Strong Brand Positioning:
- Clearly define Sprint's brand values and differentiate itself from competitors.
- Communicate the brand message consistently across all digital channels.
- Leverage social media to engage with customers and build brand awareness.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: In-housing digital marketing aligns with Sprint's mission to provide innovative and customer-centric telecommunications services. It allows the company to leverage its existing customer data and expertise to create more personalized and effective marketing campaigns.
- External customers and internal clients: By focusing on customer experience and data-driven marketing, Sprint can better meet the needs of its external customers. In-housing also allows for improved communication and collaboration with internal clients, such as sales and product development teams.
- Competitors: In-housing allows Sprint to stay competitive in the rapidly evolving digital landscape. It provides greater control over marketing budgets and allows for faster adaptation to new trends and technologies.
- Attractiveness ' quantitative measures: While quantifying the exact ROI of in-housing is challenging, the potential benefits include:
- Cost savings: Reduced agency fees and greater control over marketing spend.
- Improved efficiency: Faster turnaround times and more agile decision-making.
- Enhanced data insights: Deeper understanding of customer behavior and preferences.
- Increased brand consistency: More control over messaging and brand image.
All assumptions are explicitly stated, including the availability of necessary resources, the commitment to training and development, and the willingness to embrace innovation and experimentation.
6. Conclusion
By in-housing its digital marketing operations, Sprint can gain a significant competitive advantage in the telecommunications industry. This strategy allows the company to optimize marketing spend, improve customer engagement, and drive growth through data-driven decision-making and innovation.
7. Discussion
Alternative options include:
- Continuing to rely on external agencies: This option offers access to specialized expertise but can be costly and lacks the control and agility of in-housing.
- Hybrid approach: Combining in-house capabilities with external agency support for specific areas like creative development or campaign execution.
Risks associated with in-housing include:
- Lack of expertise: Insufficient in-house skills and experience could lead to ineffective campaigns.
- Internal bureaucracy: Internal processes and decision-making can be slower than with external agencies.
- Cost overruns: Hiring and training a new team can be expensive.
Key assumptions include:
- Commitment to training and development: Sprint must invest in training its team to ensure they have the necessary skills and knowledge.
- Availability of resources: The company must allocate sufficient resources to support the in-housing initiative.
- Data privacy and security: Sprint must ensure compliance with data privacy regulations and implement robust security measures.
8. Next Steps
To implement the recommendations, Sprint should:
- Develop a detailed implementation plan: Outline the specific steps, timelines, and resources required.
- Recruit and onboard a skilled digital marketing team: Identify and hire experienced professionals with the necessary expertise.
- Invest in training and development programs: Ensure the team stays up-to-date with the latest trends and technologies.
- Develop a data-driven marketing strategy: Define key performance indicators (KPIs) and track campaign performance.
- Embrace innovation and experimentation: Explore new digital marketing channels and technologies.
- Monitor progress and adjust strategies as needed: Continuously evaluate the effectiveness of the in-housing initiative and make necessary adjustments.
By taking these steps, Sprint can successfully in-house its digital marketing operations and achieve its strategic goals of increased market share, customer satisfaction, and profitability.
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Case Description
In the fall of 2019, Sprint's Chief Digital Officer Rob Roy reflected on the telecom's efforts to improve the effectiveness of its digital marketing campaigns. Digital media buying had long been handled by an outside agency, but in 2017, Sprint brought those functions in-house to enhance the company's ability to respond to the market in real-time. Early results suggested the plan was working, but Sprint continued to face fierce competition from its rivals. Sprint's subscriber losses mounted as it attempted to merge with T-Mobile. Could digital marketing stem the losses and win consumers' hearts?
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