Nextel's marketing strategy for industrial and business customers

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.

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).

As for major business operations, Nextel should emphasize on the existing market, which range from low to high-end consumer corporation nationwide. New market scope still opens, especially not for the top corporations. Small businesses and one-person business operation have been growing significantly, in line with the rapid advancement of Internet technology. Such business owners are either working for other company or devoting their time for their own new firms, which require high mobility. They would benefit from the wireless technology.

On the other hand, Americans tend to be dependent on the Internet technology to maintain and expand their businesses, which also open from larger community worldwide. Nextel should continue emphasizing online marketing programs as the powerful tool for the customers to access information about the benefits of Nextel's service, as well as to get direct product and service demo. Even for non-web-savvy customers, Nextel may still carry on with the program using traditional advertising system.