Magazine article Marketing

BT Spends 6m Pounds Sterling on Price Pledge

Magazine article Marketing

BT Spends 6m Pounds Sterling on Price Pledge

Article excerpt

BT is to spend |pounds~6m to blitz its latest price cuts to the general public -- and possibly start a new marketing war in the process.

The national TV, press and poster campaign through Saatchi & Saatchi breaks on November 22. The ads push the fact that from December 4 you can dial anywhere in the country at the weekend for only 10p for three minutes.

BT's managing director Michael Hepher sees the move as an opportunity to put a genteel boot into the growing ranks of rivals, such as the Cable TV firms and Mercury One-2-One, which have used price cuts to make a splash recently.

"Some other telephone companies make claims, we put money in your pocket," he asserts.

Although BT is trying to pitch the initiative as a marketing drive, in reality it has been forced on the phone giant by the watchdog OFTEL, which is demanding a massive |pounds~500m in price cuts over the next 12 months.

BT is drip-feeding the good news to maximise its marketing potential -- a decision which has annoyed OFTEL. "I have been in discussions with BT about the need to give the benefits of productions earlier rather than later," reveals its director general, Don Cruickshank.

But the fallout from the initial BT announcement is already having an effect on its nearest rival, Mercury. …

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