Marketing Strategy - Assignment
VerifiedAdded on 2021/05/31
|4
|1612
|125
AI Summary
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
1.3 SWOT analysis
SWOT analysis (see appendix D) which stands for the main strength, weakness of the company
as well as the opportunities and threats in the market is the heart of any marketing strategy. This will
give a good understanding of company performance in the view of competition, customer and supplier
as well as the business environment. By doing that, SWOT provides the strategic framework for further
development of company, how to capitalise its strengths, minimise weaknesses, exploit any opportunity,
and avoid any threat facing it.
a. Strengths
Vodafone is the cost leadership mobile network provider in United Kingdom which provide a
variety of service to customer (both personal and corporate). According to Sekiguchi (2010), it has
extremely gained “economies of scale and scope to maximise cost efficiency and effectiveness”. Group
Technology which is driven by Vodafone Group with the purpose of “leading the implementation of
standardised architecture for business process, information technology and network systems” has
helped the organisation achieve time-to-market and maintain cost efficiency (Hitt, Ireland and
Hoskisson, 2008, p. 345).
Being ranked at 10th position in BrandZ’s top 100 most valuable global brand ranking, Vodafone
can capitalise on its recognizable global telecommunications brand to enter into new markets
(Sekiguchi, 2010).
Distribution system is also a major advantage of Vodafone as their brands appear in almost part
across the country.
Vodafone is an established network provider with a strong infrastructure base and system. This
is also another main advantage of company.
b. Weaknesses
Despite being a market leader, Vodafone has gradually lost its position to O2 in UK market. After
the merger between Orange and T-mobile, Vodafone now falls into the third position in the UK market.
The second weakness of Vodafone is that they are lack of diversification but rather focus on cost
reducing leadership strategy. For example, the charge for an international call in Vodafone is high in
comparison with its rivals. With the fact of nearly one million international students coming to the UK
for higher education, that may drive the customers to shift to other network provider. .
c. Opportunities
As the cost leading operator in the market, Vodafone can utilize their strength to further
diversify their service in the market in order to maximize the profit while maintaining lower cost.
SWOT analysis (see appendix D) which stands for the main strength, weakness of the company
as well as the opportunities and threats in the market is the heart of any marketing strategy. This will
give a good understanding of company performance in the view of competition, customer and supplier
as well as the business environment. By doing that, SWOT provides the strategic framework for further
development of company, how to capitalise its strengths, minimise weaknesses, exploit any opportunity,
and avoid any threat facing it.
a. Strengths
Vodafone is the cost leadership mobile network provider in United Kingdom which provide a
variety of service to customer (both personal and corporate). According to Sekiguchi (2010), it has
extremely gained “economies of scale and scope to maximise cost efficiency and effectiveness”. Group
Technology which is driven by Vodafone Group with the purpose of “leading the implementation of
standardised architecture for business process, information technology and network systems” has
helped the organisation achieve time-to-market and maintain cost efficiency (Hitt, Ireland and
Hoskisson, 2008, p. 345).
Being ranked at 10th position in BrandZ’s top 100 most valuable global brand ranking, Vodafone
can capitalise on its recognizable global telecommunications brand to enter into new markets
(Sekiguchi, 2010).
Distribution system is also a major advantage of Vodafone as their brands appear in almost part
across the country.
Vodafone is an established network provider with a strong infrastructure base and system. This
is also another main advantage of company.
b. Weaknesses
Despite being a market leader, Vodafone has gradually lost its position to O2 in UK market. After
the merger between Orange and T-mobile, Vodafone now falls into the third position in the UK market.
The second weakness of Vodafone is that they are lack of diversification but rather focus on cost
reducing leadership strategy. For example, the charge for an international call in Vodafone is high in
comparison with its rivals. With the fact of nearly one million international students coming to the UK
for higher education, that may drive the customers to shift to other network provider. .
c. Opportunities
As the cost leading operator in the market, Vodafone can utilize their strength to further
diversify their service in the market in order to maximize the profit while maintaining lower cost.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Also, the new wave of mobile and network technology emerge and play an important role in the
current and future market. If Vodafone could utilize this trend and apply latest technology into their
service, this will help the company to increase revenue greatly.
Vodafone may concentrate on age-groups with different demands. For example, according to
Larsson (2007), every 3 in 5 teenagers in the UK use mobile. Vodafone, therefore, may provide flexible
services to that group such as email and internet access in order to support more sustainable growth.
d. Threats
The European debt crisis and negative economic outlook could be the major obstacles that
prevent Vodafone to maintain their revenue and profitability. It market growth was only about 1.0% and
1.3% in 2010 and 2011 respectively (Larsson, 2007). As the economy shows no sign of recovery, the
potential threat of sale decline and poor performance should be taken into notice.
The mobile network provider market has reached its full potential capacity and at the maturity
phase. Therefore, the competition among players such as Orange and O2 in the market is really tight and
any action from the participants can have a severe effect on others and the market. Price and
promotional campaign are two keys to compete in the market.
1.4. Vodafone unique selling position (USP)
Having a USP will significantly improve the positioning and marketability of the company and
products that demonstrates an advantage over competing brands (Interactive marketing, no date). In
the highly competitive world, Vodafone has to be more unique, more valuable, and more visible to be
successful in the marketplace.
Base of the previous analysis of Vodafone marketing position in the market as well as company’s
own capacity, the centre of company profitability and competitive advantage in the market comes from
a concentrating strategy that applied a value-added service to meet customer’s meet. With a cost
leadership in the market, the company continues to diversify their products and services in order to
meet further requirement from clients.
Some of the service that company applies to clients:
Vodafone email plus: provides users with instant access to 5 different email accounts
Vodafone PC backup: provides online backup and restore service for vodafone
broadband users
Vodafone 360 store: brings phone, email, chat and social network contacts together for
mobile, PC and Mac
Music Download: allows Vodafone customers to discover and download music from the
network's catalogue
current and future market. If Vodafone could utilize this trend and apply latest technology into their
service, this will help the company to increase revenue greatly.
Vodafone may concentrate on age-groups with different demands. For example, according to
Larsson (2007), every 3 in 5 teenagers in the UK use mobile. Vodafone, therefore, may provide flexible
services to that group such as email and internet access in order to support more sustainable growth.
d. Threats
The European debt crisis and negative economic outlook could be the major obstacles that
prevent Vodafone to maintain their revenue and profitability. It market growth was only about 1.0% and
1.3% in 2010 and 2011 respectively (Larsson, 2007). As the economy shows no sign of recovery, the
potential threat of sale decline and poor performance should be taken into notice.
The mobile network provider market has reached its full potential capacity and at the maturity
phase. Therefore, the competition among players such as Orange and O2 in the market is really tight and
any action from the participants can have a severe effect on others and the market. Price and
promotional campaign are two keys to compete in the market.
1.4. Vodafone unique selling position (USP)
Having a USP will significantly improve the positioning and marketability of the company and
products that demonstrates an advantage over competing brands (Interactive marketing, no date). In
the highly competitive world, Vodafone has to be more unique, more valuable, and more visible to be
successful in the marketplace.
Base of the previous analysis of Vodafone marketing position in the market as well as company’s
own capacity, the centre of company profitability and competitive advantage in the market comes from
a concentrating strategy that applied a value-added service to meet customer’s meet. With a cost
leadership in the market, the company continues to diversify their products and services in order to
meet further requirement from clients.
Some of the service that company applies to clients:
Vodafone email plus: provides users with instant access to 5 different email accounts
Vodafone PC backup: provides online backup and restore service for vodafone
broadband users
Vodafone 360 store: brings phone, email, chat and social network contacts together for
mobile, PC and Mac
Music Download: allows Vodafone customers to discover and download music from the
network's catalogue
II. Recommendation
2.1. Market segmentation and targeting
a. Market segmentation
Segmentation bases “which are characteristics of individuals, groups, or organisations are used
to divide a total market into segments” (Lamb et al., 2009, p. 260). Markets can be segmented using a
single viable, such as age group and geographic group, or several variables, such as age group, gender,
and education.
In terms of age group, young people between 18 and 30 are the frequent users of cell phone but
they have different demands according to their job and life style. Generally, they all usually keep up date
and want to use the fastest and the most convenient services in making calls, texting, surfing the
Internet, checking mail, listening to music, and sending video. In terms of income, people with lower
income usually pay more attention on the price while higher income people often concern the product’s
quality and value-added services.
b. Market targeting
Vodafone main market segmentation is more mature and business customer who has simple
but more demand on the quality of the service. Vodafone also focus on young people who has limited
budget for communication. They offer a lower cost of monthly pay plan than others network provider to
attract more young and limited budget customer. However, Vodafone just focus solely on mobile
network but not in other market segmentation such as land line. This leaves some room for further
improvement in the future if the company wants to invest in other new market segmentation.
Vodafone applies concentrated strategy to target in different group of customer. Different
paying plans with different services and benefits apply for each customer group but all of them using a
same marketing mix. Also, the intense competition in the market forces them to provide the best service
to retain the customer as well as reduce cost to maximize profitability. Therefore, they have to apply a
concentrated strategy to focus on the quality of service while decrease the possible cost.
However, since different customer group desire different kind of service and requirement, it is
not a best method to maximize the profit for Vodafone. The company may apply others targeting
method such as differentiated strategy which involves in different marketing mix for different categories
of client. This might have improved the quality of service the company provides for their clients.
2.2. SMART
Once environmental analyses have been conducted, their results will inform SMART objectives.
SMART model requires a strategy to be specific, measurement, attainable, realistic, and time-oriented. It
2.1. Market segmentation and targeting
a. Market segmentation
Segmentation bases “which are characteristics of individuals, groups, or organisations are used
to divide a total market into segments” (Lamb et al., 2009, p. 260). Markets can be segmented using a
single viable, such as age group and geographic group, or several variables, such as age group, gender,
and education.
In terms of age group, young people between 18 and 30 are the frequent users of cell phone but
they have different demands according to their job and life style. Generally, they all usually keep up date
and want to use the fastest and the most convenient services in making calls, texting, surfing the
Internet, checking mail, listening to music, and sending video. In terms of income, people with lower
income usually pay more attention on the price while higher income people often concern the product’s
quality and value-added services.
b. Market targeting
Vodafone main market segmentation is more mature and business customer who has simple
but more demand on the quality of the service. Vodafone also focus on young people who has limited
budget for communication. They offer a lower cost of monthly pay plan than others network provider to
attract more young and limited budget customer. However, Vodafone just focus solely on mobile
network but not in other market segmentation such as land line. This leaves some room for further
improvement in the future if the company wants to invest in other new market segmentation.
Vodafone applies concentrated strategy to target in different group of customer. Different
paying plans with different services and benefits apply for each customer group but all of them using a
same marketing mix. Also, the intense competition in the market forces them to provide the best service
to retain the customer as well as reduce cost to maximize profitability. Therefore, they have to apply a
concentrated strategy to focus on the quality of service while decrease the possible cost.
However, since different customer group desire different kind of service and requirement, it is
not a best method to maximize the profit for Vodafone. The company may apply others targeting
method such as differentiated strategy which involves in different marketing mix for different categories
of client. This might have improved the quality of service the company provides for their clients.
2.2. SMART
Once environmental analyses have been conducted, their results will inform SMART objectives.
SMART model requires a strategy to be specific, measurement, attainable, realistic, and time-oriented. It
plays an important role in enabling the company to control its marketing plan, in providing a consistent
focus for all functions, and in motivating team members to reach a common goal.
a. Specific
Marketing strategy’s objective should be specific which are clearly defined and understandable.
This objective should base on three basic questions: What, Why and How. The specific in SMART analysis
means that the goal set for Vodafone should be particular and quantifiable objective which can be
measured by both company and clients.
b. Measurement
The marketing strategy should not only specific but also measureable for controlling and
evaluation. This helps the company to evaluate the efficient of marketing strategy such as promotion
and advertising campaign.
c. Attainable
The goal sets for Vodafone should be attainable and achievable although it should not necessary
be too simple or complicated. The objective should be clear, not ambiguous, and impossible to meet
with regard to company’s capability.
d. Realistic
The fourth important factor involves in a realistic goal setting achievement for Vodafone. This
can be known as a goal that desirable with regard to both internal and external resources and
influences.
e. Time-oriented
Vodafone marketing objective should also be set with a timely manner which means an
adequate timeframe to achieve the goal of the strategy. The time frame should not be too intensive or
too relaxed and focus on the main objective of the strategy.
focus for all functions, and in motivating team members to reach a common goal.
a. Specific
Marketing strategy’s objective should be specific which are clearly defined and understandable.
This objective should base on three basic questions: What, Why and How. The specific in SMART analysis
means that the goal set for Vodafone should be particular and quantifiable objective which can be
measured by both company and clients.
b. Measurement
The marketing strategy should not only specific but also measureable for controlling and
evaluation. This helps the company to evaluate the efficient of marketing strategy such as promotion
and advertising campaign.
c. Attainable
The goal sets for Vodafone should be attainable and achievable although it should not necessary
be too simple or complicated. The objective should be clear, not ambiguous, and impossible to meet
with regard to company’s capability.
d. Realistic
The fourth important factor involves in a realistic goal setting achievement for Vodafone. This
can be known as a goal that desirable with regard to both internal and external resources and
influences.
e. Time-oriented
Vodafone marketing objective should also be set with a timely manner which means an
adequate timeframe to achieve the goal of the strategy. The time frame should not be too intensive or
too relaxed and focus on the main objective of the strategy.
1 out of 4
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.