Marketing Strategies and Evaluation of Competitors: A Case Study of Vodafone

This assignment focuses on the marketing strategies and evaluation of competitors of Vodafone, a British multinational telecommunications company. It includes an analysis of competitor strategies, the use of the STP model for customer segmentation, the extended marketing mix, and the application of the Ansoff matrix framework for growth. The assignment also presents a marketing campaign for Vodafone.

Introduction to
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body .......................................................................................................................................1
TASK 1............................................................................................................................................1
Examination of strategy of competitor...................................................................................1
Consumer segment and other marketing strategy..................................................................2
STP Model..............................................................................................................................2
Extended marketing mix ........................................................................................................3
TASK 2............................................................................................................................................5
Ansoff matrix framework for growth ....................................................................................5
Recommendation....................................................................................................................7
TASK 3............................................................................................................................................7
Marketing campaign for the company....................................................................................7
CONCLUSION ............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Marketing is a crucial function for all business organisation and is becoming increasingly
crucial in success of a company in modern global economy. Marketing is a process that is related
with creation, communication and delivery of value and other important content and also
concerned with management of customer relationship for lifetime or longer period of time. The
main aim of marketing is to achieve the objectives of increased sales and profitability through
building better brand image and cresting awareness about product or services offered by
company (Chitty, D'Alessandro and Gray, 2019). For this assignment the chosen organisation is
Vodafone which is a British multinational telecommunication company having its headquarters
in England, UK. In this report detailed about marketing strategies and evaluation of competitors
is included. To have a better understanding about targeted customer use of STP model is also
included. Beside this, an extended marketing mix and other relevant strategies are also there.
Along with this, application of Ansoff matrix framework is also present in this report. Further
this assignment also consists a marketing campaign for selected organisation.
Main body
TASK 1
Vodafone is a famous international telecommunication company operating in various
parts of world and having its headquarter in London and Berkshire. It is 4th largest mobile
operator of world in on the basis of number of customers in 2018 and operating in many parts of
Asia, Africa, Europe and Oceania in its network is available in around 25 countries of world. But
still many target markets are there in which Vodafone is trying to expand which includes many
areas of America and Asia (Deepak and Jeyakumar, 2019). Thus, this assignment is focused on
different strategies and models that can be used by Vodafone to have a much better growth and
reach at untouched global market. For that purpose an understanding and evaluation of current
marketing strategy and its competitor is made. An explanation about these market strategies and
competitors of Vodafone is provided below:
Examination of strategy of competitor
NTT (Nippon Telegraph and Telephone corporation) is the biggest competitor of
Vodafone operating in same sector as a telecommunication provider (Vodafone competitors,
2019.). NTT provides its product under 5 categories and all are sold under its brand name. A lot
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of variety and highly differentiated product with various features is provided by NTT which
allows customers to select its product. NTT is making use of competitive based pricing strategy
to get better position and earn more revenue through attracting more customers. NTT is making
use of two marketing channels i.e. through online website and different wholesalers and retailers
with over 500 retailers. NTT make use of multiple media channels to promote its product which
include adverting through various social media platforms with a focus on YouTube, Facebook
and twitter. Thus, the marketing strategies of NTT are quite effective to give a tough competition
to Vodafone. The marketing strategies and other targeting and promotional strategies of
Vodafone are discussed below.
Consumer segment and other marketing strategy
To have a proper evalution and selection of customer segment naf taregeting audiece use
of STP model is made by Vodafone. A description of various elements of STP model in context
of Vodafone is provided below:
STP Model
This model aim at identifying the most valuable segments and creating a right marketing
strategy and product positioning for selected segment of customers (Epstein, 2019). The detail
regarding the different segment of customers and targeted audiences and positioning strategy of
Vodafone is provided below:
Segmentation
It is a process of divining or splitting a vast market into smaller or niche parts. Use of
Demographic segmentation is made by Vodafone. This segmentation include splitting of market
on the basis on there age, income, geographic, Psycho-graphics and other common variable.
Demographic segmentation- The main focused segment of Vodafone is the individuals between
the age of 13 to 65 years. On the basis of income they are targeting small, middle and high level
markets (Mullins and Panagopoulos, 2019). On geographical basis it is focusing on all areas that
is urban, semi urban and rural areas.
Psycho-graphics- On the basis of this segmentation, Vodafone is focused preferable youth and
people in urban and semi urban areas. It is also shifted to people who are willing to pay more or
extra money for premium and better quality product.
Targeting
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It is the process of approaching or targeting most profitable segment of customers.
Vodafone has adopted a multi segment approach and offering a series of differentiated products
in its respective markets (Sahaf, 2019). The various targeting strategies of Vodafone are:
B2C Market : Provide a variety of recharge plans starting from a quite low range and various
data plans are also offered. Home calling cards for family and other professionals is also
provided by Vodafone. To attract youth audience cheap SMS facility is also provided.
B2B Market : Vodafone has recently launched various plans and package for SMEs as well as for
large scale business. Customized plans and data package are also provided as per the needs of
customers.
Various added services and discounts are also offered to target home markets, students
and professionals.
Positioning
It is a process of creating a good brand image in minds of customers (Zanni and Pucci,
2019). Use of aggressive advertising and vibrant barns promotions is made by Vodafone to
connect with consumers in a more simple, honest and real manner.
The various targeted audience and customer segment like youth and B2B and B2C
targeting strategy is helpful in incensing productivity and profitability of Vodafone through
enhancing customer base and targeted audience for Vodafone. Due to the extensive price range
of its various voice, messaging and data services and it's variety of value added services which
can be customized as per individual customers' needs and wants, Vodafone strategically targets
customers and consumers of all ages and incomes which is really good for future growth of
Vodafone.
Extended marketing mix
The extended marketing mix includes the most important 7P's that provide all relevant
information about the marketing strategy of an organisation (Nabi, 2019). The different element
of marketing mix with respect to strategies of Vodafone are provided below:
Product
A wide range of plans is offered by Vodafone which includes pre paid, post paid and
many other value added services. The key component provided by Vodafone includes voice and
messaging services, handsets and headphones, memory cards, chargers, prepaid and postpaid
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SIM cards, youth packages, fixed telephone lines, etc. A easier and compatible tariff plans and
various related services and products are also provided to attract a large section of customers.
Price
The price of product or services is based on quality of service such as high speed,
bandwidth, etc. Vodafone is mainly makes use of competitive pricing strategy in order to beat its
competitors. Vodafone has earned a lot of customer loyalty through providing best possible
services at most affordable prices (Palmatier and Martin, 2019). With high quality and strong
range.
Place
Most of the products of Vodafone are offered through customers care centres and other
shops and interdependent retailers. Vodafone is having a strong distribution network across 25
countries of world which ensure continuous supply of product and services.
Promotions
Vodafone is among one of the leading telecom brand of world and this position can not
be achieved without having a effective advertising and promotion strategy. Vodafone is
aggressively promoting its product and brand through print media, TV, online, e mails,
billboards, etc. Use of famous celebrities like Mary Kom, Michael Schumacher, etc. are also
made for effective promotion. Frequent press release are also made to inform and aware targeted
audience (Narang and Shankar, 2019). The Vodafone ZooZoos are among one of the most
famous marketing strategy and advertisement of Vodafone.
People
Continuous efforts are made by Vodafone to provide highest priority and maximum
satisfaction to its customers. Vodafone is serving more than 400 million people across the world
thus, a staggering workforce strength of around 100000 employees are hired by Vodafone.
Timely training and other development programmes are organised for employees to sharpen their
skills and to ensure uninterrupted services for customers.
Process
Being in a telecom sector effective and efficiency of process is of great importance.
Availability of easy top-ups is of utmost importance and having fully functional towers with
good signal strengths for its customers is also an important process of Vodafone. Beside this,
continuous efforts are also made to ensure the good network, easy SIM card availability, etc.
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Physical evidence
SIM cards, recharge vouchers, stores, service outlets, digital TV services etc. all are a
part of the physical evidence of Vodafone.
TASK 2
Ansoff matrix framework for growth
Vodafone is a well known British multinational telecommunication organisation which is
having its headquarter in London and Newbury, Berkshire. Vodafone is operating in many
reasons of Africa, Asia, Europe and Oceania and it is ranked at 4th position among global mobile
operator in 2018. Thus, to achieve better growth and to expand in other parts of world to achieve
better position and more strength in telecommunication market use of Ansoff matrix is made by
Vodafone.
Ansoff Matrix framework
This matrix was developed by H. Igor Ansoff to provide generation of marketers and
business leaders a quick and simple way for planning for the future growth (Kingsnorth, 2019).
Use of this strategy is also made by Vodafone to have an effective marketer devise strategies for
future expansion. The four alternatives of marketing strategies provide by this matrix framework
is explained below in context of Vodafone:
Market penetration
Under this strategy of growth, organisations try to sell the same thing in the existing
market and tries to increase its market share in current market scenario. The objectives of this
strategy can be achieved through developing a new marketing strategy and making use of better
promotional methods so that more number of customers can be encouraged to select the product
of organisations (Gulati, 2019). Vodafone can also adopt this strategy and can increase its
customer base in its existing market through introducing some loyalty scheme and making use of
various affordable pricing strategies for promotion of its services so that more number of
consumers can be attracted. The risk involved in market penetration is usually the least as
compared with other strategies as the product or service is also familiar to consumers and
organisations is also having an understanding of existing market so the risk is minimum in this
growth strategy.
Product development
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Under this market strategy new products and services are introduced or offered in an
existing market to achieve higher growth and more targeted customers. This strategy includes
providing change and modification in an existing product or services or coming with an entirely
new product or services. This change and mortification in outlook and presentation is helpful in
increasing the product quality and performance. Vodafone can make use of product development
strategy to appeal more customers in already existing market through providing better and more
enriched services to its customers (Folkvord, 2019). In this growth strategy a risk of higher
investment in research and development for evolving new features and technology is needed
which can be risky and expensive for Vodafone as if the new product and services is not liked by
its customers all its expanses will be a waste which can create losses.
Market development
It is also known as market extension in which existing product is sold in some new
markets. This can be done through adopting some better segmentation and marketing strategy for
geographical expansion of an organisations. Use of different and more efficient market channels
should be made to have a better access to a larger share of customers through online sales or
direct sales. Use of market development strategy can be implemented by Vodafone to target
different groups of customers from different market with different age, gender or demographic
profiles to increase its customer share and probability. A higher risk of operating and entering a
new market is involved in this strategy. This risk of uncertainty and unawareness of new market
can be eliminated by Vodafone through making use of PESTEL analysis or any other tool for
understanding the prevailing opportunity and threats of new market.
Diversification
It is the most risky strategy as a new product or service is launched in a new market
maximize the growth and to attract a highest level of customers for its product or services
(Dinner, Kushwaha and Steenkamp, 2019). It is most risky strategy as both market and product
are new thus, it include a higher amount of investment of research and development as well as on
conducting market research and other related activity. Diversification is further divided into two
categories related and unrelated diversification. Under related diversification the organisations
come up with a new product in its existing industry while in unrelated diversification a totally
new product or service is launched of the some new industry. Use of diversification strategy by
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Vodafone will provide it maximum benefits through introducing a new product in a new market
that will provide research to maximum number of customers but it also involve a higher risk.
Recommendation
From the above description about four growth strategies of ansoff matrix, the most
suitable and recommended strategy for Vodafone to achieve its target of its targets of future
growth and to expand in other locations of world into a global market is Diversification. Use of
this strategy will provide a new market like the untouched and saturated areas of America and
Asia and also provide an opportunity to come up with a new product or services to attract more
customers. Thus, Diversification growth strategy is most suitable for Vodafone to have an
increased market share and customer base to enhance its productivity and profitability.
TASK 3
Marketing campaign for the company
Marketing campaigns aim at promoting products or services through different types of
media such as television, radio, print, and online platforms. Marketing campaign are not only
reliant on advertising of product but also include different demonstrations, video conferencing
and many other interactive activities and techniques. Business market is full of competition and
other threats, thus, it become necessary for all organisation to initiate frequent marketing
campaigns and also need to devote and investment significant resources to generate brand
awareness in its customers to enhance sale and customers base (Desbordes and Richelieu, 2019).
To have a better positioning and promotion of its product and services following marketing
companion is created by Vodafone to increase consumer awareness for the product or service.
All the steps and stages of cresting a marketing campaign is described below in context of
Vodafone (A global marketing campaign to position Vodafone as a trusted strategic partner,
2019).
Define Desired goal
The first and foremost step of designing a market campaign is outline its goal. The main
goal of Vodafone is to increase its future growth trough expansion of its target market in other
unsaturated parts of world (Latson, 2019). The main aim of this marketing campaign of
Vodafone is to reach new customers, increase awareness about product, increase brand loyalty
and repeat patronage. A clear goal helps in creating better message and also lead to measurement
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of success of campaign. Vodafone is planing to come up with a new mobile handset to increase
its targeted audience. Thus, the main of this marketing campaign of Vodafone is to increase
consumer awareness for this product.
The audience
After fixation of a goal, the next step of marketing campaign is deciding the target
audience for which the entire marketing campaign has been developed. This helps in ensuring
that everything and every values created should be geared toward the ideal and selected
customers and client (Wood, 2019). The target audience is divided into various categories. The
various category of target audiences which are targeted and mainly focused by Vodafone are
provided below:
Demographic- under this category audience is groped on the basis of their age, gender, etc.
Vodafone is targeting the audience between the age group of 13 to 65 years. But know its main
focus is shifted towards young generation and for them they are coming with a new mobile
handset with various fun and innovative features.
Psycho-graphic- under this type target audience is grouped on the basis of their personality and
lifestyle. Vodafone is mainly targeting audience for all income level, having different lifestyle so
that its productivity can be increased. It has also started targeting various SME and large
corporations to have better better profits.
Geographic- under this category customers are categories on the basis of their geographical
location . Vodafone is targeting all areas ranging from Urban, semi urban and rural area. Thus, it
is having a good reach in all parts of targeted countries.
The Content
Once the targeted audience is clearly defined next step is creating is impressive content to
attract a lager number of customers as well as to provide all the relevant information about the
new as well as the existing customers (Kemper and Ballantine, 2019). The content created can be
a written content or image or video on the basis of target audience. Vodafone is making use of
written content which includes blogging or social media post, a report or press release to attract
customers who are fond of social media. Use of image and video like meme, infographic, etc. are
also made to make content interesting and attracting young customers. The content developed
should be relevant to their target market and should have a proper theme of content or campaign .
The offer
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Beside the content, the offer made to customers is also factor that grab attention of
targeted audience. Offers not only included hard sale but some complementary product or
accessories also attract the customers. Vodafone is coming up with a new product i.e. a newly
launched mobile handset, thus, for attracting customers some extra accessories like back cover,
memory card, etc. can be offered to grab the attention of customers in a new market (Domazet
and Neogradi, 2019).
The promotion and distribution
It is the most important step of a marketing campaign on which the achievement of
desired goals and objective of creating awareness in targeted audience is achieved. There are
various ways through which information can be transferred to target audience. Use of different
advertising and promotional tool are made by Vodafone. Advertising is most commonly used
promotional tool which can be defined as any form of paid communication or promotion. For
creating an effective advertising Vodafone is focused on five important M's which are mission,
money, message, media and measurement (Chitty, D'Alessandro and Gray, 2019). Mission
includes setting objectives for advertising which can be to inform, remind, persuade or reinforce
target audience. Money is related with the decisions about budget an expenditure that will be
made on advertising process. Message includes the the content which Vodafone wants to covey
with its targeted audience. After creation of content the next step is selection of media which is
most crucial step. Selection of media depends upon reach of each media, frequency of
transmission and potential impact of it on customers. The various types of media channel used by
Vodafone includes television, newspapers, direct mail, internet, radio and magazine.
Excessive use of digital technology and online media is made by Vodafone to have a
better interaction and connection with customers. Sharing on social media and sharing to email
list, Getting mentions from other bloggers or journalists, Paying for sponsored blogs or social
media posts, Using social or PPC ads, Guest blogging with a link back to content , etc. are most
commonly used digital media of Vodafone (Deepak and Jeyakumar, 2019). For better result
Vodafone can also make use of direct marketing to have a better face to face interaction with its
new customers and for effective promotion and distribution of its new product.
The follow up and implementation
It is the final stage on the effectiveness and success of a marting campaign depends. A
plan or project is only succeed if its is properly follow up, controlled, and implemented. As
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customers are busy in their life thus, posting on social media or at any other media is not
sufficient. An organisation should follow up and continuously check whether its content and
resources are tracked and reviewed by customers (Epstein, 2019). A content and message must
be attractive to garb the attention of customers and an organisation should regularly checked the
traffic on its site to measure the success and effectiveness of its marketing strategy and
campaign.
The marketing campaign of Vodafone is effective and will definitely improve the
knowledge and awareness of its target customers as use of a very attractive and informative
content is made which provide all required information about important feature of Vodafone and
its product. Use of various media like television, radio, billboards, online site, etc. are made for
advertising and promotion.
CONCLUSION
From the above assignment it can be concluded that marketing is an important and crucial
process of every organisation. It include proper analysis of competitor to understand and evaluate
their strategy. Apart from this use of STP model and marketing mix is also made by an
organisations to have an efficient and effective marketing strategies to attract a large section of
customers. Use of ansoff matrix framework is made so that best suitable and effective growth
strategy can be selected for future development and expansion of an organisation. Diversification
is the most risky growth strategy. Finally, it can be summarised that marketing campaign various
steps to create awarenesses and knowledge in target customers about product and services of an
organisation.
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