Marketing Strategy of Swisscom analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Swisscom marketing mix, help the brand succeed in the market. Let us start the Swisscom Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Swisscom marketing strategy can be explained as follows:
Swisscom offers Fixed-line and Mobile Telephony, Digital Television, Fixed line & Mobile Internet to its private and business customers. All these give an overview in the marketing mix product strategy of Swisscom. It builds and maintains infrastructure to provide these services and is active in the advertising, banking, entertainment, healthcare, and energy sectors.
Swisscom is Switzerland’s largest company that provides IT Services & Networking Solutions. As of September 2016, Swisscom has 6600+ mobile access lines, 1400+ TV access lines, 2300+ broadband access lines and 2400+ fixed access lines (all figures in thousand).
Swisscom Price/Pricing Strategy:
Below is the pricing strategy in Swisscom marketing strategy:
Swisscom charges its customers for data and voice based upon their usage and thus the model is affected highly by ever changing customer needs, local and global competition and technological transformation which leads to a reduction in their price and profits. Swisscom thus strives hard to maintain a sound financial balance and continuously invests in latest technologies.
Swisscom initially started by deploying full FTTP that offered 1Gbps to 30% of its total private customers, but after a while it realized that the cost for the same was too high to cover all the customers and so it then switched to a combination of FTTP, FTTN, FTTdP and FTTB offering a speed of 1Mbps with the thought of providing 500 Mbps of speed to more than half of the private customers.
It is currently under great pressure due to increasing competition which has led to market saturation. Sunrise, Swisscom’s biggest competitor, has increased its share by 16% whereas Swisscom’s share has come down by 27% in the past 2 years. Despite all this Swisscom has managed to have stable revenues and provides a 5% dividend to its shareholders. This explains the marketing mix pricing strategy of Swisscom.
Following is the distribution strategy in the Swisscom marketing mix:
Swisscom has a market share of 60% in mobile communications, 54% in broadband and 31% in digital TV segment. Swisscom has an overall 60% of the market share in Switzerland which generates 80% of its EBITDA and 16% of market share in Italy that generates the rest of the 20%.
Its telecom market in Switzerland attracts a revenue of CHF 13 billion and IT services market (market share of 9%) earns a revenue of CHF 8.7 billion.
Swisscom Promotion & Advertising Strategy:
The promotional and advertising strategy in the Swisscom marketing strategy is as follows:
Swisscom newsletter provide information to customers about the latest offers on products and services for mobile phones, Swisscom TV, internet and Teleclub like latest films & series, mobile phone accessories. The newsletter also informs about the latest technology and innovation related topics specific to Swisscom with the help of expert interviews citing facts and figures with a hint of sustainability to each task. It also provides a discount to customers switching from a different network to their network.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Swisscom.
Swisscom by 2020 aims to come across as the best employer in Switzerland and thus offers a plenty of opportunities to its employees for personal development and conducts a lot of workshops to promote work-life balance. At Swisscom employees work on fair terms of employment from day 1 and have a chance to participate in community service programs and acquire vocational training.
Swisscom is known to put their customers at the first place and thus its USP is customer service. For further growth Swisscom plans to expand its infrastructure and increase its virtual services, especially the Swisscom cloud which offers a high level of security to user data.
Swisscom has increased digitization in its organization to increase the scope for innovation which in turn will increase the effectiveness of the company in ICT market and improve the overall customer experience. Swisscom has also merged Digital business and Sales & Service for SME and residential customers into one to have better results in the field of product development. Hence, this completes the Swisscom marketing mix.
Swisscom was set up in 1852 and is Switzerland’s leading IT & Telecom company with its headquarters in Ittigen. Its subsidiary- Fastweb is the biggest broadband service provider in Italy. Swisscom earns a revenue of CHF 11.678 billion and employees 21,200 in hospitality support, mobile solutions and cloud services and is thus, counted amongst the most sustainable companies. It is the 1st company to hold security certification of ISO 27001 and to ensure data privacy and security it has employed 150 people.
In 2001, Swisscom Mobile’s 25% shares were sold to Vodafone. The major competitors of Swisscom in Switzerland are Sunrise & Salt in the mobile telephony market, UPC and Quickline in the broadband & digital market and Telecom Italia in Italy.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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