For many cellular carriers, this holiday season marks the first in which more than two wireless carriers in each market will be competing to earn the business of gift givers. As such, cellular carriers are offering a variety of attractive pricing plans and phone discounts to bring customers in the door.
According to TradeOne Marketing, a firm that studies the newspaper advertising trends of cellular carriers, more than one-third of cellular advertising last year was done during the months of November and December. Bruce Janklow, chief executive officer of the firm, said early indications point to a similar holiday season this year.
Janklow said nearly 90 percent of cellular holiday advertising contains a picture of a phone, and in most cases, the size of the phone pictured in the advertisement is larger during the holiday season than during other times of the year. Actual products drive sales during the season, said Janklow, rather than service and airtime.
In 20 percent of the advertisements, cellular carriers offered free phones, 19 percent offered free activation, 17 percent promoted no contracts and 10 percent contained some mention of free airtime, added Janklow.
Carriers this season need to focus on three key marketing strategies, said Janklow, including promoting bundled phones and service, getting agents to advertise and putting out the most attractive offer possible.
“The fourth quarter is obviously the best and biggest quarter we have,” said Bob Stott, president of the Philadelphia tri-state region for Bell Atlantic Mobile, which estimates it does 31 percent of all its business for the year during the fourth quarter. “Obviously, we do things like increasing our advertising and public-relations efforts, and we focus on our strengths, which is our network, price and value and we also focus on our customer service.”
Bell Atlantic Mobile recently launched its MobileMinutes program in conjunction with the holiday season, which offers a package including an L.M. Ericsson phone and a prepaid airtime card for $150. The company also offers a variety of other holiday promotions, including free phone offers when customers sign an annual contract.
AirTouch Cellular kicked off the holiday season by introducing an off-the-shelf cellular package that includes a Motorola Inc. phone, battery and charger. The package, which the company is marketing as the “perfect holiday gift,” requires no long-term contracts, no deposits and no activation fees, said the company. The suggested retail price of the package is between $100 and $130 depending on which phone model is selected.
Lisa Bowersock, a spokeswoman for AirTouch, said the package is an ideal holiday gift because it doesn’t commit the recipient to long-term contracts or service plans.
“Obviously, the holiday season is a huge time for wireless carriers,” she said. “We have a number of different promotions tied directly to gift giving.”
Bowersock said while AirTouch’s digital service and phones will be available, the company’s holiday marketing focus is centered around analog technology because it lends itself more to holiday gift giving. During the months of November and December, AirTouch does about as much business as it would during the entire first quarter, estimated Bowersock.
The company also is offering certificates for $10 off the monthly access fee, which lowers the price for the company’s entry-level consumer pricing plan to below $10. The company also is conducting a promotion with Nordstroms in which any customer making a fragrance purchase of $50 or more will receive a chocolate cell phone and a certificate from AirTouch redeemable for a free cellular phone.
Finally, AirTouch offers gift certificates, which Bowersock calls the perfect stocking stuffer for existing customers. The certificates are good for credit on monthly bills.
“We have the holidays covered,” said Bowersock. “Even with the flurry of activity around personal communications services, it is our belief that analog will be the major player because it is affordable and simple.”
Comcast Cellular is offering holiday promotions for both its analog and digital services. On its analog network, the company is offering an unlimited off-peak minutes promotion if service is activated in December. On its digital network, Comcast is offering customers a plan that allows them to choose one local phone number they can call free for three months for up to 500 minutes.
The company also is offering 100 and 200 bonus-minute plans that are priced between $50 and $100 per month with airtime ranging from 32 cents to 34 cents for peak minutes and 10 cents for off-peak minutes.
“The Christmas season is important in any retail industry. It’s not any different with cellular,” said Sherrie Walters, corporate communications manager for Comcast. “It is a good time of the year for everyone.”
