Marketing Strategies for Mobile Network Providers

This assignment delves into the strategic marketing employed by EE, a prominent UK mobile network provider, with a particular emphasis on their 4G service rollout. Students are tasked with examining the core elements of the marketing mix (product, price, place, promotion) applied by EE in this context. The analysis should consider factors such as competitive positioning, target audience, pricing strategies, and promotional campaigns. Additionally, students will utilize relevant news articles and industry reports to provide a comprehensive understanding of EE's 4G launch and its impact on the telecom market.

Marketing Essentials

Contents
Task 1...............................................................................................................................................3
Task 2a...........................................................................................................................................14
Extending marketing mix of EE & Three mobile..........................................................................14
Conclusion.....................................................................................................................................19
Task 2b...........................................................................................................................................19
Executive Summary.......................................................................................................................19
Company overview........................................................................................................................21
External Environment Analysis ....................................................................................................21
SWOT Analysis.............................................................................................................................23
Marketing Objectives and Planned Strategies...............................................................................25
Segmentation, Targeting & Positioning (STP)..............................................................................27
Marketing tactics............................................................................................................................27
Financial Budget............................................................................................................................28
Tactics............................................................................................................................................29
Conclusion.....................................................................................................................................29
Reference.......................................................................................................................................30

Task 1
Slide 1

Slide 2
Speaker Notes:
Marketing plays an important role in the growth of a company. It is important for every
organization to get its product or services well marketed. It is the activity where the
customers are approached in such a way that they end up purchasing the product or they
become potential customer for the company. According to the definition proposed by
Philip Kotler, there are various things that can be marketed such as, goods, services,
places, experiences, events, person, properties, information, organisation and ideas.

Slide 3
Speaker Notes:
The marketing strategies are made by the companies considering the market strategies of the
competitors. Therefore, current marketing trends going in the telecommunication market are:
 Giving discounts on services to the customers. EE ltd. Can give discount on current data
plan, special recharge plans etc. It helps to attract the customer.
 Various customer wearable gadgets can be provided by EE ltd. With the handsets being
offered by the company.
 Storytelling branding is when the product is branded linking with a story to it, it makes
the viewer take interest in the advertisement.
 Customer's data mining is when potential customers are approached rather than tapping
the whole market.
 Tapping the customers on social media platform.

Various future trends can be such as building a branding community, tapping the
customers by taking experts comment on marketing, using attractive and lucrative design for
marketing, making sports club for the customers of EE ltd. and mining the data based on
behaviour and psycho graph of the potential customer.

Slide 4
Marketing Processes
Analyzing Market Opportunities: The initial constituent of a marketing process is to analyse
the market with the intention of finding openings. These openings refers to the needs of the
customers which are not fulfilled by the prevailing products or services. On the other hand,
companies have to study the other competitors to assess the probability of doing good in the
market.
Developing Marketing strategy: This phase of marketing process discusses the selection of the
target market. After examining the market companies carefully analyze and choose the final
customers. In this regard companies follow certain steps like-
• Market Segmentation: According to Business Dictionary, The process of defining and
subdividing a large homogeneous market into clearly identifiable segments having similar
needs, wants, or demand characteristics. Its objective is to design a marketing mix that
precisely matches the expectations of customers in the targeted segment.
The four basic market segmentation-strategies are based on behavioral, demographic,
psycho graphic, and geographical differences.

• Market Targeting: According to Smart insights (2013), the list below refers to what’s
needed to evaluate the potential and commercial attractiveness of each segment.
• Criteria Size: The market must be large enough to justify segmenting. If the market
is small, it may make it smaller.
• Difference: Measurable differences must exist between segments.
• Money: Anticipated profits must exceed the costs of additional marketing plans and
other changes.
• Accessible: Each segment must be accessible to your team and the segment must be
able to receive your marketing messages
• Focus on different benefits: Different segments must need different benefits.
• Market Positioning: A positioning strategy is a thoughtful branding plan or process that
functions on the representative levels of consumer consciousness, where meanings and
associations really hold weight. A market positioning strategy is assembled on business data
and seeks to compose the exact chain of words to balance concepts of differentiation,
distinction, and comparison in a integrated brand-narrative.
Developing Marketing Mix: After developing the marketing strategy of a company, this step of
process initiate the marketing mix. Marketing mix is composed of variables of market that is
mixed by company with the purpose of generating preferred response in the targeted sectors.
Marketing mix is composed of the following four P’s-
• Product: It refers to the of the customer’s need.
• Price: Setting price sensibly with respect to the customer behavior is essential for
the company.
• Place: This step of mix refers to the availability of the product. And decides that
where the customers will purchase the product
• Promotion: Branding, campaigning and communication is the primary concern of
this phase of marketing mix.
Implementing strategies and marketing mix & give feedback:
• Implement the marketing strategies and marketing mix.

• Try to recognize the internal strengths and weaknesses along with the external opportunities
and threats.
• Provide customers expected after sell services.
• Assess the performance of the marketing processes.
• Take necessary remedial steps to ensure the accomplishment of marketing objective.
References:
• Business Dictionary, Definition http://www.businessdictionary.com/definition/market-
segmentation.html
• Smartling, Market positioning strategy, https://www.smartling.com/market-positioning-
strategy/
• Smartinsight(2013), by Annmarie Hanlon, http://www.smartinsights.com/digital-marketing-
strategy/customer-segmentation-targeting/segmentation-targeting-and-positioning/

Slide 5
Speaker notes: The main role of a marketing manager is after plan the marketing activities in
such as way that it helps to achieve organizational goal. Developing promotional techniques and
campaign to promote none product of EE ltd to a large customer base. Framing the shape of
various marketing campaigns. Understanding the customer's needs and preferences so that
external opportunities can be tapped in a better manner. Assess the marketing strategy and
evaluate that whether the activities adopted for marketing are able to fulfill the core objectives of
the entity or not. A proper understanding of the internal and external chances and the assessment
of the needs of the customers should be kept in mind. After organizing various campaigns,
proper evaluation of it is also necessary to check how beneficial they remained for the company.
The level of interaction with the other departments of EE is also essential. The final stage
involves the assessment of the utilized marketing strategy in comparison to the marketing
objectives of the company.

Slide 6
Speaker notes: Research and development department to the organization helps to assess the
needs of the customers and find what is majorly preferred by them. Further actions can be
depended it. The most important job is of Operations department as they deal with making the
solution a reality. This department gets help by the operation department. It assess the current
demand of the market and it outlines the production volume. Operations management helps to
convert the job into reality by bringing it into action. The relation ship between marketing and
sales department is that extensive marketing helps in generating high number of sales for the
company. With the help of high sales revenue company tends to generate elevated finance and
take key decisions of investment as well. Finance is also an essential department for forecasting
the sales. This is the only department which manages the sales over other departments.

Slide 7
Speaker Notes: Marketing helps to understand the behaviour of the customers which is vital part
in order to elevate the sales of EE ltd. It can to assess the competition between the company as
well it competitors so that the marketing strategies adopted can compete in the market. It will
build a strong brand value for EE ltd. It will help in achieving the core marketing and sales
objective as well as targets for EE ltd. It also helps in making a strong and loyal base for the
customers and the sustainable growth of the EE Ltd. An another phase of responsibility of
marketing is EE sales. Marketing helps in increasing the overall rate of the sales.

Slide 8
Speaker Notes: A sustainable growth requires adequate relationship between the departments. It
is helpful to deliver efficient services to the customers. It also develops soothing environment in
the organization which elevates growth as well. In the end, it plays a significant role in timely
completion of the activities and increase productivity as well. The interaction levels between the
departments helps in producing efficient outputs after the servicing of the sales. It helps in
increasing the overall satisfaction of the customers. It also prevents any sort of conflicts in the
company. Also, the company can experience shorter and smaller time of operations.

Task 2a
Extending marketing mix of EE & Three mobile
Meaning and effectiveness of extended marketing mix:
In an ever changing market, new marketing methods are demanding more customer orientation
to lure more profit from the market. For this reason, with the traditional 4Ps of marketing mix, 3
more Ps have been added. These three Ps are- People, Processes, Physical evidence. All these
three Ps are closely related to the customers, and gives the market planners a new dimension to
think.
In this section of the assignment, we will compare the extended marketing mix of EE and Three
mobiles, two of the most prolific telecom organisation of the UK. These two companies are rival
in terms of the market share and popularity, where EE is leading and Three mobiles is
challenging EE’s position in the market by the rising network & service quality.
Now I will discuss the extended marketing mix of these two companies and compare the key
facts between them.
 Product: EE and Three mobile provide voice call and internet service along with mobile
devices. EE is the first company to launch the 4G network in the UK, and is the best 4G
network provider in the UK. Their mobile devices are also popular compare to the other
competitors. But Three in the recent time is getting a lot more popularity for their data
plans. And a strong network service of Three mobile is helping the company win the
battles in the market.
For network operators, the service is delivered through different channels such as call
centers, shops, complaints managing departments, back office, website, and social media.
Customers throughout their relations with the channels need to feel cherished,
reciprocated passionately and treated like a part of the company. Some key standards that
consumers seek are to have a fast response to their request, speedy in a straight forward
solution to their problems from their first contact, investing the least likely effort. Seeing
its high rates of objections, the company must initially take actions to build a more
efficient complaints’ management system by employing the related department with

quick, well skilled and inspired staffs that would be ready to provide high quality service
and turn their subscribers’ dissatisfaction to gratification.
 Price: Price is the second component of the marketing mix. Since the introduction, EE
has been one of the most expensive networks on the UK market. As it was the UK’s only
4G operator for a period, its pricing strategy was once inescapable, but with a number of
other networks now challenging, more options are available for the consumers. But still
EE’s pricing is higher in some of its products and services. Especially on the data plans,
where the company is still charging more because of their network strength. EE should
lower the existing pricing structure and remain following the price-skimming method of
others though they are the pioneer of 4G in Britain. EE should focus on the added
offerings to improve the value-for-money proposition.
On the other hand Three mobile introduced unlimited data plan for the customers, which
has been a real hit for the company. And mobile prices of the company is also cheaper
than EE. Since the prices of these plans are relatively lower, the three mobile networks is
performing good in the market in comparison to EE ltd.
 Place: This element of the marketing mix refers to the methods of making products
available for purchase by customers involving various distribution methods. Increased
trend of using internet in the last decade or so forced the telecommunication companies to
promote more in the internet. Thus both the companies EE and Three has lucrative and
user friendly websites and a vibrant looking retail store chain throughout the UK. EE
represents variety of channels that deliver its products and services. To ensure customer
needs resourcefully, EE should assist the customers in having a quick and direct
admittance to its channel. The aggregate Internet usage of the customers directs
opportunity to the companies to build a profitable online channel. EE can offer their
customers a more useful, straightforward and accessible steering throughout its online
page and increase the converting rate online. Also, EE can enlarge their customer
catchment area through increasing their selling stores in commercial roads and areas to
gain the interest of new homegrown customers and visitors.

-
- Figure 1: Attracting retail store of Three mobile
 Promotion: The main modules of promotional mix should be related Internet because it
is a gradually important and measurable way of reaching potential target group of
customers. It also benefits in interactivity by giving a chance for users to express their
opinions and provide feedback. TV commercials are also important in modern world.
Both EE and Three have been investing in their promotional campaigns in recent time.
They emphasize in their strength and promotes the uncommon features to attract the
customers. The 4G promotion campaign of both EE and three mobile kicked off with an
up-weighted advertising campaign. The promotion focused on raising the awareness of
4G benefits. This campaign was assisted by having 4G advertisements and booklets in
stores to attract interest and provide more information for store visitors and current
customers. Social media also played a vital role to raise target customers’ understanding
of the 4G benefits through competition and celebrity endorsement tactics. EE should
utilise these current fan bases and use strong gathering to increase 4G service’s
perception as well as improve word-of-mouth.
EE clearly has been the premium 4G service provider in the UK. But Three is an uprising
company with better review and relatively satisfied customer base. Such reputation
creates the buzz that attracts more customers toward the company. Firstly, a reliable
identification of their customers’ wishes and views must be done and this would be
attained throughout surveys and direct consultations with consumers regarding their

overall satisfaction. Therefore, the firm would acquire extensive information of all the
glitches that their subscribers are having and meeting those (Dibb and Simkin, 2013).
After, all these acquaintances will be advertised via the social networks to establish
communities orientated for instance to youth or communal customers. EE can also use
media relations through press releases or seminars to endorse how customer-oriented the
company is to tackle the inadequate perception of EE’s customer service. In addition, the
construction of a department that would provide modified treatment to high value
customers who can impact EE’s image among enormous amount of followers.
-
-
- Figure 1: Three mobile promoting their UK's first 'Unlimited Data Plan'
-
 People: This component of the marketing mix refers to the people who delivers the
service of company to the customers (Babin and Zikmund, 2015). Both EE and Three has
a strong trend of employing efficient people and they ensure enough benefits for the
employees to ensure the superior customer service. EE is a bigger company than Three
mobile networks in terms of coverage and market share. Thus, the number of staffs is
higher for them. But Three mobile’s staffs are well known for their complaints

management. EE often face difficulties for the volume of the complaints, and give proper
solution for them.
 Processes: Customers are not only concerned on purchasing or using a product and also
they are interested in how they collect the product or services. In EE and Three all the
processes are effective and consumers have the access to them easily. That is why this
two companies are one of the best in the UK market. But the average satisfactory level of
EE is declining in the recent time, due to their service quality and data plan pricing
method.
 Physical Evidence: The last section in the marketing mix is a very vital element
(Malhotra, Birks and Wills, 2013). Companies like EE and Three primarily delivers
service. Services are intangible in nature. However, to create a superior customer
experience perceptible features are also have to be delivered with the
Figure 1: Physical outlook of EE attracts many customers
service. There are approximately 324 retail stores of Three mobile network and 553
stores of EE ltd. in UK. Good looking stores and website can attract more customers for
the company. EE is a pioneer in these sectors. Their stores, smart employees, and the
website are one of the most important reason for their success. It builds up the confidence

of people in the company as they can see the products offered by the company physically.
The company gets chance to interact with the customers and get testimonials for their
websites.
Conclusion
As the leader in the telecoms sector, has many different benefits that greatly distinguish them
from the competitors in the market. With the recommended reduced pricing strategies, EE will
be able to meet its current weakness in brand image to increase the customer retention rate as
well as remain growing its customer base through both exploring new-to-market customers and
encouraging competitor’s customers to switch using the 4G service capacities. This will help
strengthen EE’s market leader position in the mobile network providers market as well as
strengthen the company’s profitability by take full advantage of the efficiency of the company’s
asset usage. On the other hand Three has only 8% market share, and still a rising company in the
market. They should emphasize on the network expansion and coverage. Which will enable them
win more market share.
Task 2b
Executive Summary
Everything Everywhere (EE) is a UK communication company that has a leading position with
more than 95% 3G and 4G coverage. It operates together with Orange and T-Mobile carriers in
the UK. In the last years, company experienced another take over by British Telecom (BT). But
in recent time EE faced a declining subscriber base and decreasing level of customer satisfaction.
This report will emphasis on providing recommendation to attain marketing objectives, which
include increasing customer base and improving the company’s profitability. In the first part of
report the marketing strategy of EE is examined and evaluated using PESTLE and SWOT
analysis. It has been recognized that mobile telecommunication industry is highly affected by
technological alterations in mobile industry and socio-cultural influences in people’s lifestyle.
Moreover, the company has some strong themes, including the highest speed of internet data
service comparing with other rivals and many retail stores that can help it with future marketing
strategy. Within STP concept, EE has adapted discrepancy targeting strategy, targeting city-
based business such as bank and financial organizations and early-adapters of 4G services. The
organisation position itself besides existing Orange and T-Mobile brands as a superior one. It has

been suggested to lower the price of the contract plans and allow customers to upgrade their old
phones for newer models which will increase their satisfaction and loyalty level. Furthermore, it
is suggested to adapt infiltration pricing for moving out of the early adopters users into the
broader market and odd pricing technique for adjusting prices. For promotional mix, EE needs to
depend on more on social and digital media advertising to push the brand forward and plea new
customers. Finally, the company should use the multi-channel distribution system, making the
website well-designed and welcoming, and maintaining a premium image of their own exclusive
stores to increase the brand cognizance.
Tactics and Action for Plan
EE already has a leading position in this competitive market. It covers almost more than 95% of
the 3G and 4G networks. Recently, the company experienced the minimization in the overall dis
satisfaction of the customers. So, the company thought of introducing specific data packs of 3G
and 4G range so that the customers can take it as pocket friendly and this will help the company
again in gaining a large number of employees.
Control Management
The company can involve a management control system. It compiles and utilities the specific
information that helps in evaluating the level of performance of various organizational
resources. These resources can be physical, human, financial etc. EE can also include operational
control authorities that performs the functions over subordinate forces which involves employing
and organizing different forces and assigning the tasks.
Company overview
EE was the outcome of the collaboration of two major companies in the UK
Telecommunications Industry, Orange and T-Mobile, in 2010. In 2015, BT took over EE, but
didn’t changed the management at all. EE was the first company to introduce the advanced
technology of 4G in the British telecoms market. Within its five years it made an over £2 billion
investment and it has reached to 97% people in the UK by the end of 2015 (Ofcom, 2016). EE is
measured to be the UK’s largest provider with more than 700 stores (Holton, 2012) providing
services to more than 30 million customers.

33%
21%
18%
8%
10%
10%
Telecoms Market Share in the UK
EE
O2
Vodafone
Tesco
Three(3)
others
Figure 1: Mobile Network Provider's market share. SOURCE: Statista 2015.
External Environment Analysis
The external environment of EE is analysed using PESTLE factors (political, economic, social,
technological, legal and environmental). This can lead to the existing/future malleability of EE’s
business functioning.
 PESTLE Analysis
Political factors
The UK Government examines issues related with the sufficiency of national coverage, where
areas far from urban centers experience substantial problems (Berkowitz, 2016). Furthermore,
research related with the coverage incidents showed that though the general customer satisfaction
is 76%, this index presents longitudinal variation, diminishing at 63% in rural areas (Ofcom,
2015). Consequently the UK Government and Ofcom have been in collaboration to invest on
providers for enriching the network coverage in non-urban areas.

Economic factors
Current UK economic situation is not so favorable for mobile operators due to the Brexit
referendum. Many foreign organizations are shifting their base from the UK to other EU
countries Thus EE is losing their customers. On the hand, people are trying to save money due to
the uncertainty in the future. Thus, household disposable income also fell that leads to decrease
of mobile services consumption. However, unemployment remains considerably high and
negatively impact on how customers consume the services (Pike, 2015). There are various other
factors such as exchange rates of currency, inflation rates, political and economical conventions
among the countries are the other economic factors that affect the business of EE ltd.
Social-Cultural factors
Each customer segment has different purchase behaviors within telecom market. According to
Euro monitor International survey, there was a noticeable augmentation in the proportion of
teens that use smart phones. The youth age group combines several ways of communication,
using social networks, streaming websites, free text messages or making free calls by using
various types of applications and sharing opinions and media files (Ebert and et.al, 2014). It
motivates EE to bring something new every time in the market to stay competitive in
telecommunication industry.
Techno factors
Telecoms are influenced by technology and their goal is to make the greatest network’s coverage
enhancement, by delivering brilliant data/network services. LTE-advanced 4G Network was
launched in order to cover the above needs, and brought new competences to the customers, at a
cheap cost. The increasing demands of facilities in a mobile phone from the customer side makes
it difficult for EE ltd. To keep updating software and functions of mobile phone. Being in a
dynamic sector, new technologies adopted by the companies become obsolete in no time. The
company has to constantly involved in research and development in order to find something new
and innovative for the market.
Legal Factors

Ofcom creates the level playing field for companies in providing their products and services
through healthy/competitive approaches. The regulator determined that consumers have the
power of terminating their contracts without penalties, under specific circumstances of price’s
increase without any notification within a month’s period. Additionally, the roaming rates have
periodically degraded and it is predicted that until 2017 will be removed. Further, the company
has to take care of health and safety of the workers and prepare a set of rules to protect its
employees from any injury. The company has to maintain employment contract with the
employees which are being recruited with mutual understanding.
Ecological Environment
According to Ofcom, there are noticeable environmental factors and limitations to be taken into
attention in telecoms. These can be classified to the production and usage of the handsets, the
development of the relevant infrastructure and their influence on flora and fauna. EE has to be
careful when producing mobile phones as the radiations of the mobile phones can affect the
individuals and the environment as well. Necessary steps are required to be taken by the
company to reduce its affect.
SWOT Analysis
Strengths
- Market leader position among the mobile network providers in the UK.
- Pioneer in the 4G market and owns the largest 4G customer base in the UK.
- Wide coverage which will be further stretched in other public locations.
- Highest performance level in internet speed and was the first operator that introduced 4G+ in
central London.
- Security of devices and data. First UK operator to pre-install the ‘Lookout Mobile
Security app’ on smartphones in order to protect customers’ secrecy when their devices lost
or pinched.
Weaknesses

- Low brand recognition, most of the EE customers still associate their network as Orange or
T-Mobile instead of EE.
- Perceived as a brand which has low value-for-money proposition.
- Poorly rated customer service compared with other network providers (Ofcom, 2015).
- No 4G roaming service is accessible when EE consumers travel abroad
- High level of customers’ complaints related to report cases that are unresolved and billing
and switching matters (Ofcom, 2015).
Opportunities
- More chances to develop its products and services by offering new plans to customers thanks
to the increasing usage of smartphones tablets among the consumers.
- Drive profit through solidification of post-paid customer base. This aligns with EE’s tactical
objective to be “the number one for customer loyalty in the UK”.
- Opportunity to introduce new product line as newly introduced own-brand’s smartphones
and tablets (EE Eagle) to expand the brand portfolio.
Threats
- The increasing demand of free applications for chatting and voice calls.
- Aggressive rivalry from Vodafone, O2 and Three who are getting more innovative in their
4G offerings.
Marketing Objectives and Planned Strategies
 To increase the revenue in comparison to the last year by 5%.
 To provide education and training to the sales persons
 To develop marketing strategies that attract maximum number of customers.
 To increase the profits by 10% year by year

 To increase customer base by 10% every year by adopting effective promitional
strategies
Product/Services
For network operators, the service is provided through different channels such as call centers,
shops, complaints’ managing departments, back office, website, and social media. Customers
throughout their relations with the channels need to feel respected, reciprocated passionately and
treated like a part of the company. Some key standards that consumers seek are to have a rapid
response to their request, expeditious a straight forward solution to their problems from their first
contact, investing the least likely effort. Seeing its high rates of complaints, the company must
initially take actions to build a more efficient complaints’ management network by employing
the relevant department with quick, well trained and inspired employees that would be ready to
provide high quality service and turn their subscribers’ disappointment to gratification.
Pro
The main promotion instrument chosen for the objective is Public Relations. PR is the
controlling of relationships between organisations and their stakeholders, which in this case is
especially appropriate to the customers’ association with EE.
Firstly, a dependable identification of their customers’ wishes and viewpoints must be done and
this would be achieved throughout surveys and direct meetings with consumers regarding their
overall satisfaction. Accordingly, the firm would acquire extensive information of all the
problems that their subscribers are having and meeting those. After, all these connections will be
advertised via the social networks to establish communities orientated for instance to youth or
communal customers. EE can also use media relations through press releases or conferences to
endorse how customer-oriented the company is to tackle the meager perception of EE’s customer
service. In addition, the construction of a department that would provide personalized treatment
to high value customers who can impact EE’s image among large amount of followers. EE can
also approach celebrities to promote its products as the brand image of the company will be
linked with the followers of the celebrity, creating large customer data base for the company.
The main objective is to adopt effect promotional strategies so that the customer base can be
increased by 10% every year.

P
EE represents a variety of channels that provide its products and services. To cover customer
needs resourcefully, EE should facilitate the customers in having a quick and direct admittance
to its distribution channel through stores or website. The aggregate Internet usage of the
purchasers directs opportunity to the companies to construct a profitable online channel. EE can
offer their customers a more convenient, straightforward and accessible steering throughout its
online page and improve the converting rate online. Also, EE can expand their customer
catchment area through increasing their selling stores in commercial roads and areas so as to gain
the curiosity of new local customers and visitors.
Price
Currently, EE limited follow the price-skimming approach of others though which they are the
pioneer of 4G in Britain. Despite being more expensive than O2 and Three, EE is not
recommended reducing the price to compete but should rather focus on the added offerings to
improve the value-for-money proposition.
Promotion
The 4G promotion campaign will kick off with an up-weighted advertising campaign. The
promotion will focus on raising the awareness of 4G benefits. This campaign can be assisted by
having 4G advertisements and booklets in stores to attract interest and provide more information
for store visitors and current customers. Social media will also be used to raise target customers’
understanding of the 4G benefits through rivalry and celebrity endorsement tactics. EE should
utilize these existing fan bases and use strong gathering to increase 4G awareness as well as
improve word-of-mouth.
Segmentation, Targeting & Positioning (STP)
Segmentation is the process of distributing the market into segments according to their
characteristics to analyse the buying behaviour of these groups and adjust the communications
for each group accordingly. A buyer market is most often segmented by demographic variables
such as income level, age, socio economic position etc. However, Bayer (2010) suggests that
behavioural segmentation approach is more appropriate for telecoms companies. Sub-segments

can be characterised by characteristics such as their retention likelihood, their ‘stickiness’ (use of
different Value Added Services), their promotion score (response to marketing offers) and their
usual value.
After the market is grouped into diverse segments, EE needs to select one or a few segments to
target their communications and deals at. This is especially important for a new brand like EE to
find a joint profitable customer group from T-Mobile and Orange’s very different target market
in the past. Segmentation will be performed based on gender, age and demographic region where
number of customers to use mobile and its services are more.
Within the selected target market, EE then needs a positioning strategy to highlight its variation
from the competitors. This can be analysed through a perceptual plotting of the mobile network
providers’ apparent quality and price by the customers. EE claimed to position itself as a
premium brand against Vodafone and O2 in both pricing and quality. EE is actually perceived as
an expensive brand that delivers low quality services, implying EE can lose market share into
other competitors with better fair value proposition. Therefore, EE has to either decrease their
price to move to the low-market end or improve their perceived value offered to gain competitive
advantage. Considering EE’s pioneering position in 4G service, recommendation is that EE
should improve their product and customer service quality to upsurge their value for money
position and reinforce the market leader position.
Marketing tactics
The main marketing techniques that can be used by EE ltd are as follows:
 To promote the entity in colleges, corporate houses etc.
 To opt for advertising through poster s and banner
 To provide 5% discount on the services for first time users.
 To opt for Television ads that can be shown on prime time
 To involve with the customers through direct mails.
Financial Budget
Activity Time Duration Rate Total Cost

Radio Promotion 60 second ads
throughout 1 year
between Monday to
Sunday
£200 per 100 ads (200
* 52)
£10400
Billboard Publicity 6 months £8,000 per 4 weeks
plus $650 connection
duties
£8650
Magazine promotion 6 months Double Page Spread -
£23,050 for 8 ads
Full Page ads -
£12670 for 8 ads
£35720
Newspapers 1 year Courier Mail – Mon-
Fri-Full page -
£13,029
Courier Main – Sat -
£17,990
£31019
Google Marketing 1 year 60£ per month £60
Email Advertising 1 year £10 per month £10
Web Promotion 1 year £250 per month £250
500 Direct Mail
Letters
1 year £1500 £1500
Website Design One Time £1000 £1000
Total £88609

Tactics
The KPIs in order to assess the performance of EE limited are:
 Service performance
 No. of cities covered
 Congestion of the network
 Availability of Network
 Increase in number of employees
Conclusion
In spite of being a new brand in the telecoms sector, EE has many advantages that greatly
distinguish it from the competitors in the market. With the recommended reduced pricing
strategies, EE will be able to encounter its current weakness in brand image to increase the
customer retention rate as well as continue growing its customer base through both exploring
new-to-market consumers and encouraging competitor’s customers to switch using the 4G
service potentials. This will help strengthen EE’s market leader position in the mobile network
providers market as well as intensify the company’s profitability by maximizing the efficiency of
the company’s asset usage. Various marketing strategies to promote the brand such as celebrity
link ups, promoting on social media have also been suggested for EE ltd.

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