Question

Case Study: Sprint Corp. and Verizon Communications Inc. From 2002 through 2011, commercials featuring the tagline...

Case Study: Sprint Corp. and Verizon Communications Inc.

From 2002 through 2011, commercials featuring the tagline “Can you hear me now?” aired as part of Verizon’s most memorable ad campaign promoting themselves as the gold standard for network quality. Paul Marcarelli’s character, known as “Test Man,” would travel the country in the commercials, checking that the person on the phone could hear him, even in some unusual locations.

Fast forward to 2016, and Marcarelli is appearing in another commercial for a mobile carrier. This time for Sprint. "I used to ask if you 'can hear me now' with Verizon. Not anymore," Marcarelli says in his first Sprint commercial. "I'm with Sprint now, because guess what? It's 2016 and every network is great. In fact, Sprint's reliability is now within 1% of Verizon, and Sprint saves you 50% over Verizon, AT&T and T-Mobile's rates."

Sprint’s aim with the commercial is to rebuild their reputation. For years the brand has been known for slow data speeds, dropped calls, and spotty coverage. But after their disastrous merger with Nextel in 2005, Sprint has been working to turn around its network quality.

"We've invested billions of dollars in our network. Times have changed. You can barely tell the difference [between networks] now, " said Marcelo Claure, Sprint CEO. "We figured Paul would be the best person to tell everyone all networks are the same, but only Sprint can give you 50 percent off. He was pretty excited."

Sprint had been targeting competition with price. The price ad campaign commercials showed customers destroying their bills with chainsaws and other equipment, claiming Sprint would “cut their bill in half.” But Sprint faced criticism from the Better Business Bureau for this campaign, claiming it was misleading because it didn’t take into account activation charges, taxes, and other fees. The 50 percent off campaign concluded with the start of the campaign featuring Marcarelli.

"Now we're emphasizing not just our price but also a great product," Claure said.

Verizon did not sit quietly by as Sprint went after their customers. "Sprint is using our 2002 pitchman because their network is finally catching up to our 2002 network quality," Verizon spokesman Jeffrey Nelson said, noting that Verizon is the "most awarded wireless network ever."

Continuing to go after Sprint, Verizon then released a commercial featuring actor/singer/comedian Jamie Foxx saying, “It ain’t about if you can hear me now. It’s about if you can see me now.” Verizon followed up with another commercial starring Foxx, focusing on the network’s LTE coverage. Foxx stands in front of two maps comparing Verizon’s and Sprint’s LTE coverage, explaining that Verizon had three times the LTE coverage of Sprint. Then, “Jamie Foxx for Sprint” enters, saying that it is mostly the same coverage “if you squint.” (“Jamie Foxx for Sprint” is shorter and less muscular than the real Jamie Foxx, and he is wearing an ill-fitting suit with a less-polished appearance—another jab at Sprint.)

Claure responded to the new commercial on Twitter, posting, “This is how @verizon reacts to getting beaten by @sprint every single day. Lies, lies and more lies.”

Customers paying close attention will note that the commercials are not even speaking in the same terms. Sprint commercials speak to their reliability (whether your network is working when it is supposed to), whereas Verizon commercials focus on their LTE coverage across the country.

Verizon posted lower-than-expected second-quarter customer growth in 2016, while Sprint reported better-than-expected customer growth. But with mobile devices being a must-have for most Americans, the back and forth between mobile phone carriers is not likely to stop soon.

Assess the marketing strategy used by both Sprint & Verizon. Which do you think was more successful and why?

Homework Answers

Answer #1

Both the companies are in the tough mood of competition, no one wants to lose customers and distract their mindsets. For this, they are using comparative advertising where the Sprint used the Verizon advertisement model in his leading ad although after many years but its ad was pointing to the Verizon. It not only cast the same actor but started his ad by pointing out the services of the competitors and even including the name of the company directly. Later Verizon did the same as a backfire he also invented an advertisement comparing the Sprint by his new actor and comedian who made remarkable acting by pointing out the Sprint networks which are not so effective like Verizon, it is strong by the body in advertisement and competitor has a dull and weak body, this promotional strategy will attract customer, will make people think and make aware about the advertisement and may get influence.

Even the stage came where they left the reason for making advertisement but to criticizing each other, proofing themselves to be the best. Sprint talking about the reliability of networks and Verizon about their LTE. I personally like the concept and approach of Verizon, because it was Sprint who started first, but still, Verizon tried to make something new and innovative ad in a comedy to explain his customer. Sprint also replied in response saying Verizon as a liar but the ad by Verizon was a new concept.

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