Group

Mini Case
“Minicase: Transsprech, A.G.”
You are a consultant for an international
management strategy consulting firm. Your firm has
been approached by Herr (Mr.) Hans Wursching, CEO
of TransSprech, A.G., a newly formed cellular phone
service and phone provider based in Stuttgart,
Germany. TransSprech has a satellite GSM network
with complete coverage in Europe and the United
States, as well as throughout most countries in the
world. The company has established some
semblance of a marketing and management strategy,
and you have been asked to review the current
strategy and help the company go to the next level by
growing its sales.
You recently conducted the initial information-gathering meeting with
Herr Wursching, and received the following mass of information:
• TransSprech maintains corporate offices in numerous
cities around the world. However, its customer service outlets and
retail sales are conducted through the company website, as well as
through licensed electronics retailers. It does not maintain its own
customer service or retail locations.
• Its target markets are both companies and individuals
wanting cellular phone service with worldwide coverage and who are
willing to pay a premium to get it. It already has about 3,000
customers worldwide and is hoping to grow to 10,000 by year-end.
Corporate customers are more valuable customers because they are
buying in larger volumes. Establishing a customer base is very
important as this company attempts to establish itself.
• No sales force has been established. So far the company has
received many customers in response to its advertising.
• It offers individual customers four different cost plans with
respect to the cellular service, as well as five different phone options.
However, corporate customers can negotiate variations within the
established options.
• The phones themselves are similar to those used by
TransSprech's competitors, but the satellite network providing the
coverage is far more advanced.
• The company has retained a Berlin-based advertising and
public relations agency to develop a worldwide advertising campaign.
Print and television ads have recently saturated the European market and
will soon be shown in the U.S. market. The company is currently running
several promotions to get its product and name known; however, its long-
term goal is to offer a premium, nondiscounted product that is desired
because of its value and quality, not low price.
• Because the company and its product are in the
early stages of development, there have been technical
problems, and the company has had to provide a great
deal of service to its customers.
• Herr Wursching understands that it costs more
to acquire new customers than to retain existing ones, so
he would like to establish a CRM plan at some point to
improve customer loyalty and retention. He has a well-
trained customer service operator staff in place.
However, he does not want to invest in a complicated
software system right away. His current technology is
giving him enough problems, he says.
 Question 1

What is the company's strategy with respect to each of the four elements of the
Barbie 1
marketing mix (product, distribution, price, and promotion)?

Answer: The company's strategy with respect to each of the four elements of the marketing mix
(product, distribution, price, and promotion).
Product:
TransSprech provides a top-notch mobile phone service that works globally using advanced satellite
technology. They offer four different plans for individual customers and five phone options.
Corporate clients can customize their plans within the given options.
Distribution:
TransSprech operates globally through its offices but sells phones and assists customers through its
website and authorized electronic stores. They don't have their own stores or customer service
locations.
 Question 1

Barbie 1
Price:
TransSprech is a high-quality service targeting customers willing to pay more for
worldwide coverage. While they have promotions currently, the focus is on providing a
premium product that customers value for its quality in the long term.
Promotion:
TransSprech is running an ad campaign worldwide, created by a Berlin-based agency.
The campaign includes ads in print and on TV, saturating the European market and soon
expanding to the U.S.
 Question 2
Based on the current marketing strategy, should the company's promotion mix focus be on
personal selling or on advertising?
Barbie 2
Answer: According to how TransSprech is doing things now, they should
mainly concentrate on advertising to get the word out about their service. Right
now, they don't have a team of salespeople, and most of their customers have
come because of the ads they've put out. However, as TransSprech gets bigger
and wants to attract more business customers, it might be a good idea to start
using personal selling. This means having salespeople talk directly to potential
business clients to explain the benefits of TransSprech's services.
 Question 3
What further questions might you ask Herr Wursching to help his company move toward a more relationship-based
business and establish CRM initiatives? What other recommendations might you make for him with respect to
CRM?
Barbie 3
Answer: To help TransSprech build better relationships with customers and start some
customer-focused plans, I would ask Mr. Wursching these questions:

* How do you currently talk to customers, and does it work well?

* How does TransSprech handle when customers give feedback or have complaints?
* What things does the company do to make sure customers are happy and stick
around?
 Question 3
For ideas on what could help, we would suggest:
1. Make a program for loyal customers: Give rewards to customers who stick around
for a long time or bring in new customers.
Barbie 3 2. Make customer service better: Make sure the team helping customers is good at
solving problems and gives great service. This can help keep current customers and
bring in new ones.
3. Get a simple customer system: Even if Mr. Wursching doesn't want a complicated
computer system, a simple one can help keep track of how the company talks to
customers and make them happier.
4. Ask customers questions sometimes: This can help TransSprech know what
customers like and what they need, making the company better at keeping customers
happy.
 Reporters

Nova de la Cruz
Diocel Mae Quintero Marivic Academia

Rochelle Sumiwan
Jeicel Quintero
It is the best day ever. So was yesterday, and so is
tomorrow, and every day from now until forever