This report makes an extensive analysis of the marketing and product competence of Vodafone. It includes a brief description of the organization, industry, and mission and values statements. The report also covers the 5 C's analysis of Vodafone, marketing data collection process, and development of marketing strategy.
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Running Head: MARKETING & MANAGEMENT Marketing & Management Student’s Name University Name Author’s Note
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2 MARKETING & MANAGEMENT Table of Contents 1.Introduction..............................................................................................................................3 2.Company and industrial background........................................................................................3 3.5 C’s analysis of Vodafone......................................................................................................4 3.1Company...........................................................................................................................4 3.2Collaborators.....................................................................................................................6 3.3Customers..........................................................................................................................6 3.4Competitors.......................................................................................................................7 3.5Climate..............................................................................................................................7 4.Marketing Data Collection process of Vodafone.....................................................................8 5.Development of marketing strategy.......................................................................................10 5.1selection of target market................................................................................................10 5.2Value proposition for target market................................................................................11 5.3Target Market Positioning statement..............................................................................12 6.Development of marketing tactics..........................................................................................12 6.14ps of marketing mix......................................................................................................13 7.Conclusion..............................................................................................................................14 8.Reference List.........................................................................................................................16
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4 MARKETING & MANAGEMENT 1.Introduction This report makes and extensive analysis of the marketing and product competence of Vodafone. in the initial parts of this report, brief description of the organisation, industry along with the mission and values statements organisation has been provided. The section also includes a brief description of the product offerings and the marketing strategy of Vodafone. In the next stage, 5 C’s analysis for Vodafone has been conducted. Following that, the unique data collection and integration process implemented by Vodafone have been reflected in this report. This report further in corporates the development of a marketing strategy for Vodafone and also renders the stages of developing the marketing tactics based on the strategies highlighted. In order to do that, a detailed 4Ps analysis for Vodafone has been conducted. 2.Company and industrial background Vodafone route is a company operating in the telecommunication sector. The major market presence of Vodafone is in Europe, Asia Pacific, United States as well as Middle East and Africa. Vodafone has and associated undertaking in the United States, known as Verizon wireless. The Organisation was established as a start-up company in Europe in the year 1984. Sincethen,theorganisationhasevolvedthemtobecomeoneoftheFrontlinemobile telecommunication organisations of the world (Ang 2016). Hence, Vodafone, considered as a market leader, considering their current production. In the telecommunication sector market, the Frontline companies are well aware of the fact that consumers position the products in context to the product offerings of the competitive companies. The pecking order existing in the market, make the products, the actual market leaders. Considering the specific market of Vodafone around the world, strongest reasons have been observed in Germany, Spain, UK along with Italy and other European countries. Considering its direct as well as the partner networks, the Global
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5 MARKETING & MANAGEMENT Business domain of Vodafone exchange over 38 countries and it is still increasing. Among the main product offerings of Vodafone are Voice controlling services for messaging a data and so on which is enjoyed mainly by customers as well as business Enterprises (Per and Su 2016). The organisation has a frontline role in comprising 2G and 3G and recently in 4G and 5G network infrastructure which are being operated byGSM and GPRS network standards by Vodafone in most of the markets. Since Vodafone operates as oligopoly, it maintains dominant market structure. This market security helps them to expand freely into several new large markets. The preferred mode of market expansion of Vodafone is merger and acquisitions. The main mission of the organisation is to grow their revenue and improve their product margin byadding value to their products as well as services which implies earning more revenue from each product sold. The organisation also provide Vodafone like services to the customers which enables them to send picture messages, download polyphonic ringtones, images, information, play colour games and so on (Kraus and Strömsten 2016). 3.5 C’s analysis of Vodafone 3.1Company As a leading company of the telecommunication sector Vodafone has been enjoying their competitive advantage because of various unique market oriented strategies like differentiation, cost leadership and so on, that has been implemented by them. Vodafone was able to bring about market differentiation when they launched their one phone service. In spite of the fact, there was charging their customers higher than their competitors, there’s still able to maintain the competitive edge by offering the customers the opportunity of
6 MARKETING & MANAGEMENT making free Vodafone to Vodafone calls for lifetime and deliver better network opportunities compared to other competitors, in most of the market. Cost leadership was implemented by Vodafone by starting the home cell tariff as a part of their Metro Digital Service. Under the service, Vodafone offered off peak calls from Munich locations come for evidence office for 8 cents per minute (Boateng 2016). The implementation of this policy had taken the organisation much ahead of other major competitors in terms of cost advantage. In the overall telecommunication market, Vodafone has leading market presence and their primary market UK, they are the second largest Market share holders. The total number of connections provided by Vodafone, that is 31115000, is next to O2, which is 24299300. Vodafone has recently acquired T-Mobile which itself give the organisation and unique market share of about 40% which helped the organisation to leave the major competitors for behind. Vodafone have been able to successfully maintain their brand value buy introduction of innovative products as well as services and parallel increasing their Global presence to morning 38 countries. Approximately there are 200 million customers all over the world and 25% of mobile phone users, globally, are connected to the network of Vodafone or some of the associated or allied networks of Vodafone (Kresak, Corvington and Williamson 2016). The higher management of Vodafone has dedicated time energy, passion as well as enthusiasm to ensure the growth of the organisation over the decades. It is evident that most of the Frontline mobile telecommunication companies are developing new technologies and the main issue as out of that is that a major section of the mainstream customers have been left Behind, since they are not aware of how to use this technology. Vodafone tends to solve this problem by direct marketing which helps in providing information to the customers so that they can understand
7 MARKETING & MANAGEMENT how the latest technology of Vodafone works and how it might be with them in their regular mobile network usage. 3.2Collaborators Vodafone has agreement with various partner organisations in terms of Vodafone branding to product branding, roaming as well as service re-sales. The division of partner markets was originally established by Vodafone in the year 2002. This division is currently helping the organisation to spend in more than 40 countries by partnering with more than 29 Agencies, extending from Delhi to Russia from Iceland to Singapore and most recently in Angola. The company has direct market presence in Europe, Africa, Middle East as well as Asia Pacific. Other than that, they are operating in the major markets true subsidiaries, joint ventures investments as well as associated undertakings. Recently, Vodafone has entered into a strategic partnership with Movicel Angola, which will be looking over the partner market program of Vodafone in Africa. In Latin America, Vodafone established joint partnerships with Telecom Argentina as a part of new partner market agreement for Argentina. Under this agreement the organisation provides non-equity agreement to telecom Argentina thereby sharing best practices in specific areas including customer service, retail Technology, procurement as well as IT (Kumar2019).StrategicpartnershipsofVodafonealsoincludestheircollaborationwith Softbank corporation, LG u Plus and so on. 3.3Customers The number of proportion of mobile customers of Vodafone around the world is 302.6 million. Vodafone group uses their understanding of the customers for delivering relevant as well as value and nearby communicate on an individual, community, household or a business level. In
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8 MARKETING & MANAGEMENT providing customer solution they aim to meet the dynamic and changing customer needs. Customer measurement system called customer delight is used for monitoring and driving customer satisfaction in the controlled markets of Vodafone at local as well as global level. The demographic customer segments targeted by Vodafone are from 13 to 65 years of customers who have small, middle as well as high level income (Howell and Potgieter 2019). Customers in both B2B and b2c segments are prioritised by the organisation, pertaining to Urban rural and semi urban areas. The customer segment of Urban and semi urban areas are preferably comprised of youth who are willing to pay more for the premium services of Vodafone. 3.4Competitors China mobile is one of the biggest competitors of Vodafone in the Asian market, which is an emerging Market Sector for the organisation. China mobile communication company also provides voice as well as multimedia services across the communication network in China and recently planning to overcome the national territory to enter International markets with a brand value of about 49.8 1 billion US dollars. The support that China mobile communication company gets for Chinese Government helps in their continuous sustenance. Verizon is another big Rival of Vodafone in the telecommunication market. Company was developed in the year 2000 headquartered in America and delete product offerings like data, fibre network business unit. High speed 4G network is speciality of Verizon (Satyanarayana, Rao and Naidu 2017). Another American telecommunication organisation, AT&T coma established 1983 another rival of Vodafone. 3.5Climate
9 MARKETING & MANAGEMENT Vodafone generally operates in political stability environment where foreign investment or foreign venture with local organisations is welcome. However, the global financial prices in Europe have reduced the economic growth. However, it is observed that most of the markets of Vodafone the consumer purchase trend are transferring from fixed line users to mobile phone users. The mobile phone services demand by customers have also changed because of which Vodafone does not only delivery market innovations in terms of the mobile phone call and text facilities, but also for web browsing, social media as well as entertainment usage of mobile phones (Sagar, Mehta and Sharma 2015). Because of the changing needs of the customers in most of the markets for Vodafone needed to implement faster transmission rate buy development new technologies in both hardware and software like their IP phone and video on demand. Lastly, the factor that urges Vodafone to demand lower tariff from their customers are the roaming regulation in some of the potential markets like UK, India and so on. 4.Marketing Data Collection process of Vodafone Collection and integration of business data across cross channel Lead Management is an important part of the business culture of Vodafone. In most of the major markets of Vodafone around the World, the organisation wants to engage their business prospects across various channels with personalized content. Critically Vodafone always wants to ensure that the data collected by all their channels are integrated Central so that the ongoing business campaigns can be optimised. Like the major enterprise organisations for much Vodafone also have their data pools accumulated by the individual departments that has not been merged, duplicated or analysed at individual customer level (Reddy 2016). This is why one major lag of Vodafone product offerings is the consistency in their product offerings to the potential customer groups.
10 MARKETING & MANAGEMENT In order to solve this problem and with the economic goal accelerating and converting more leads, has developed a leading nurturing program that does not require the company to make myself changes in their business systems. The outcome was the development of cross-channel program by integration of data of the customers for ensuring that the consumers of Vodafone received the right message by means of the most effective channels. Image 1: The data collection strategy (Source: Vodafone.com 2019) Implementation of this program accounted to increase in the conversion rate of Vodafone by 4 times which open rates of 60% and click through rate of 25% (Whalley and Curwen 2018). The Organisation was successful in collecting hundred percent mandatory data required from their customers which help in prevention of an enriched picture of the differences of the customers and enable Vodafone to make consistent product offerings. In summing up, it can be highlighted that initially Vodafone did not have a Clear View regarding there product offerings for the customer needs and that is why they capitalise on strengthening
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11 MARKETING & MANAGEMENT the basic products only. However, after the introduction of destructive mobile technology former and the spread of worldwide mobile data connectivity market, Vodafone begin to lose out market. Since then the organisation has focused on value proposition as well as Momentum development. 5.Development of marketing strategy 5.1selection of target market Analysing the marketing momentum of Vodafone, it can be inferred that needs to develop a solid as well as lawyer base of customers because along with excellent products, the organisation offers excellent customer service also. It deserves mention that the organisation is trying to expand in the product offering categories like data, messaging, Broadband and voice services. Nevertheless, organisation has made maximum advancement in terms of their greatest services by developing three G and four G network infrastructure and capabilities in most mobile handset Ranges. Vodafone should set their target Market by demographics from which include age gender, Geography, income as well as psychographic and behavioural aspects. In the potential markets like Europe and America, the distinct group of people which common characteristics should be focused upon by Vodafone (Kumar 2019). The Big Data Analytics process that has been implemented by the organisation can be utilised in the regions in order to find out the consumption trend of the customers of Vodafone as well as other mobile networks. Based on that, Vodafone should develop innovative product offerings for customer segments aged between 13 to 60 under domestic product offerings and 28 to 55 under commercial product offerings. in the Asian Australian as well as some sections of African market, the organisation should focus on the psychographic groups, preferably youth and the customers of urban as well as semi urban areas. This is because, Vodafone needs to keep in mind that in this markets for mother should
12 MARKETING & MANAGEMENT focus on those customers who are willing to pay more for premium services. There is also scope for enhancing in the B2B market in both Asia and Europe since they can offer plans as well as communication packages for the small and medium enterprises as well as large scale businesses according to their communication needs (Gujarathi and Comerford 2016). The family oriented customers from all over the world are most suitable for the basic product offerings of Vodafone. 5.2Value proposition for target market Vodafone should offer unique value proposition for all the major target market segments of the organisation. Addressing the personal development and business needs of customers in in the developing regions, they should strategic collaboration with big mobile and factoring brands like iPhone, or Xiaomi and provide attractive EMI plans two customers who cannot purchase these handsets with immediate payment. This will help the customers as well as Vodafone who will be selling these products with uploaded Vodafone handset and fully loaded voice as well as data plan (Srikanth and Mohanavel 2017). In order to maintain market differentiation, the EMI plans have to be carefully chosen. For the rural customers of Asia, Vodafone needs to offer several local and STD minutes plan. This is because form of most of the customers of rural regions is using the basic products of Vodafone. This is in this region; Vodafone has to make sure that the customers do not need to pay extra for covering the basic services under their plan. Forwarders most of the voice plans of Vodafone, for evidence comes with implied data offers. As such, those plans are predicatively higher priced in comparison to the combined data and voice plans. For the imaging companies that select Vodafone for their data service, we should develop Broadband plans. 5.3Target Market Positioning statement
13 MARKETING & MANAGEMENT Vodafone means to develop innovative brand positioning statement, strapline as well as visual identity. The positioning statement of Vodafone has to be implemented across all 36 countries where is operating, directly, at present. The positioning statement should make the customers believe that development of new technologies as well as Digital Services will play a potential role in transformation of the society and enhancing the quality of individual life in the years to come. The strapline in the Market Positioning statement should be focused towards the future. The speech mark logo of Vodafone has a unique appeal and it rarely needs any change. Vodafone can carry on with this logo with slight changes in representation and colours and at best we can make the logo appear in a skeuomorphic three dimensional designs rather than flash 2D design. Vodafone needs to incorporate inputs regarding consumption Trends and aspirations of customers regarding the voice and data providing companies of the major target markets developingtheirpositioningStrategiesforadvertisingcampaigns(Sudheesh,Chandand Subramani 2015). In this context, Vodafone have to keep up with their Legacy of innovative advertisement development which will be developed in the form of a series that will in turn inform the audience regarding the various product offerings and their benefits facing the customers. 6.Development of marketing tactics Marketing strategies of Vodafone needs to be developing keeping in mind that the still have market leadership in most of the potential market including UK. The marketing tactics should be product oriented so that the consumers are able to know that Vodafone is continuously developing new products and services. Initial phase of any product development, Vodafone should look up to offer the same to the customers and single tariff packages at 50% or lower prices for a considerable time period so that the consumers develop a habit of using those type
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14 MARKETING & MANAGEMENT plans of Vodafone. Organisation should implement the strategy of developing advertisements and social media promotion campaigns that should provide the message Vodafone offers best value for money products to the customers. They should maintain multiple recharge portal. Firstly there should be the advantage of online recharge for the most technologically updated customers. There should also be availability of recharging through the local retailers as well as using the voice for facility of contacting customer care services for recharge purpose. For the customers of rural market,Kumar (2019), suggests thatVodafone should promote their post-paid plans also. In the potential markets, they should also implement new campaigns like free mobile sim distribution, organisation of workshops in colleges and Universities for demonstration of the new technologies and services introduced by Vodafone and constantly look out for acquisition of local brands for development of business. 6.14ps of marketing mix Products The mean products that Vodafone should be developing are prepaid postpaid as well as value added services. Besides, they also need to enter into the market of branded phones in the way described above, voice and web messaging services like WhatsApp or WeChat, internet service like 5G that is a innovative product in the market as well as other market oriented value added services. The organisation should remember that there is still high scope in the market for texting andcallingservices.However,moredataproductsshouldbeofferedbyVodafonein combination with the voice plans which will make people acquainted with the data services of Vodafone. However, keeping in mind the ever increasing competition, Vodafone have to make the data facility easy as well as comfortable so that the customers are able to enjoy high quality data at comprehensive prices.
15 MARKETING & MANAGEMENT Place The customer shops and the local retail shops should be targeted for selling most of the Vodafone products. However, Vodafone can also partner with many online e commerce websites to sell their products online. In addition to that they should look up for establishing strong distribution network across the new markets. People Customer should be provided the maximum priority since Vodafone is in organisation which service more than 50 million customers all over the 150 countries. They should be mindful about their staggering workforce strength of only 10 million implies across the world. Promotion Promotional strategy of Vodafone should be to aggressively promote their products and the brand through Television Online from a print as well as billboards. Vodafone should be promoting their products through local celebrities who Can attract women attention, instantly. They should also adhere to the strategy of frequent press releasing which will keep the customers informed about the latest product offerings of Vodafone. Lastly, it is recommended that Vodafone should come up with more extensive advertisement series with their character of Vodafone zoo zoos, which are recognised all over the world. 7.Conclusion Vodafone is a leading telecommunication company all over the world having potential business in UK, USA as well as major parts of Africa and Asia. The brand marketing strategies Vodafone have been uniquely applied for providing customer value proposition. The customer base of the
16 MARKETING & MANAGEMENT organisation is also diverse, comprising of rural urban as well as carbon customers who have different product requirements. Vodafone should be implementing their product differentiation strategy facing these markets based on the psychographic and demographic needs of the customers, mainly. It has also been reported that needs to emphasize all the B2B and b2c customers similarly. However there is always remains market competition because of which Vodafone needs to be implementing research and development constantly for development of new product promotion and marketing ideas that can help them to retain the position of being the largest network provider in telecommunication market all over the world.
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17 MARKETING & MANAGEMENT 8.Reference List Ang, R., 2016. Vodafone Global Telecommunications: Optimizing Operations.IUP Journal of Operations Management,15(4), p.46. Boateng, H., 2016. Customer knowledge management practices on a social media platform: A case study of MTN Ghana and Vodafone Ghana.Information Development,32(3), pp.440-451. Gujarathi, M.R. and Comerford, D.R., 2016. Acquisition of Hutchison Essar (India) by Vodafone (UK): A Case in International Taxation of Indirect Transfer of Shares.Issues in Accounting Education,32(2), pp.83-93. Howell, B.E. and Potgieter, P.H., 2019. Bagging bundle benefits in broadband and media mergers: Lessons from Sky/Vodafone for antitrust analysis.Telecommunications Policy,43(2), pp.128-139. Kraus, K. and Strömsten, T., 2016. Internal/inter-firm control dynamics and power—A case study of the Ericsson-Vodafone relationship.Management Accounting Research,33, pp.61-72. Kresak, M., Corvington, L. and Williamson, P., 2016. Vodafone answers call to transformation.Business Transformation Essentials: Case Studies and Articles, p.127. Kumar, B.R., 2019. Vodafone Acquisition of Mannesmann. InWealth Creation in the World’s Largest Mergers and Acquisitions(pp. 17-29). Springer, Cham. Kumar, B.R., 2019. Vodafone AirTouch Merger. InWealth Creation in the World’s Largest Mergers and Acquisitions(pp. 203-209). Springer, Cham. Per, V.I.T.C.I. and Su, N., 2016. Internet.
18 MARKETING & MANAGEMENT Reddy, K.S., 2016. Institutional Voids and Tax litigation in Emerging Economies: The verdict of Vodafone cross-border acquisition of Hutchison. Sagar, S., Mehta, C. and Sharma, S., 2015. A Comparison of the Effectiveness of the advertisement campaigns of Vodafone and Idea.Reflections-Journal of Management,2. Satyanarayana, D., Rao, K.S. and Naidu, S.K., 2017. The impact of Reliance Jio on Indian mobile industry-A case study on mergers and acquisitions of idea–Vodafone and Airtel– Telenor.IJAR,3(3), pp.209-12. Srikanth, J. and Mohanavel, S., 2017. Preference on Mobile Phone Service Providers A Study in Coimbatore with Focus on Vodafone.Asian Journal of Research in Social Sciences and Humanities,7(10), pp.42-51. Sudheesh, S.S., Chand, A. and Subramani, A.K., 2015. A comparative study on customer satisfaction towards Airtel & Vodafone with reference to Avadi, Chennai.ZENITH International Journal of Multidisciplinary Research,5(6), pp.74-83. Whalley, J. and Curwen, P., 2018. Vodafone signals the demise of copper: A regular column on the information industries.Digital Policy, Regulation and Governance,20(3), pp.288-290.