University of Otago Business School Emerging Business: 2degrees

Youtube VideoAs you’re all hopefully aware, the TVNZ-NZ Marketing Awards were handed out last week, with Progressive Enterprises and NZ Lotteries nabbing the big ones. And to celebrate all the gamechanging bar-raising shapeshifters that won we’re going to publish a short case study each day, along with a few comments from the judges that were filmed by TVNZ. But if you can’t be arsed with just one a day, they’re all available in the latest edition of NZ Marketing and the first 20 humans to subscribe here will receive a copy of James Hurman’s new book The Case For Creativity, valued at $40. 

In June 2009, no-one had heard of a little company called 2degrees. Six months later and this cheeky, endearing challenger brand with its giant ‘log-oh’ and quirky comedic frontman had become the world’s most successful third entrant into an established telco market by signing up just over 200,000 customers.

As a result of this amazing launch, it was awarded the supreme, transformational and consumer services awards at last year’s TVNZ-NZ Marketing Awards. And the metrics are just as impressive one year on.

It’s growth came from actively stealing share from the two big players by offering better, simpler, cheaper deals. And in year two, this strategy hasn’t changed. What has changed it that it’s now stealing a different kind of customer: high value post pay users.

Within 19 months, 2degrees had smashed all analysts’ expectations, totally shaken up the Vodafone/Telecom duopoly and carved out 11 percent share of the market by acquiring 580,000 customers. It wasn’t just a successful launch anymore. 2degrees had become one of New Zealand’s favourite—and, according to an interim tracker from Buzz, best known—brands and there was an emotional connection that went well beyond the rational.

Remarkably, this marketing-led company has been able to encourage one in eight New Zealanders to join its crusade through smart marketing innovation, effective advertising, consistent product development and, above all, by taking a customer-centric view.

CATEGORY COMMENT: “The standard of entries in emerging business was very high. There was a lot of contenders that were very, very good, so it was very difficult for the judges to actually decide but there was a clear winner. So we were quite happy with that.”

THE PEOPLE: Larrie Moore, Malcolm Phillips, Eric Hertz



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