Marketing Management: Analysis and Strategies for GO plc

This report provides a comprehensive analysis of marketing management strategies for GO plc, a leading telecommunication service provider in Malta. It covers the industry background, company background, competitive analysis, segmentation, targeting, and positioning, marketing audit, SWOT analysis, and macro environment analysis.

Marketing Management

EXECUTIVE SUMMARY
This report has explained about marketing-audit by identify various threats and
opportunities that will help in adaptation of various changes in the industry. This report has
conducted a market analysation of company in which it operates its business. It analysis and
evaluate various internal and external factor of environment for growth and success of the
company. This report thus has identified a new product that has unique selling proposition in
order to differentiate it with other competitor products in the market. It has also formulates
various plans for marketing of product by using various marketing mix tools thus enable to
effectively marketing its product in domestic and global market.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. BACKGROUND STATEMENT.............................................................................................1
Marketing Audit ..........................................................................................................................4
4 Principle of marketing...............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing management is the discipline which focusses on the decision-making,
planning, directing and controlling the marketing aspects of the organization. These activities are
involved in order to determine which product or services are of customer's interest and strategy
to be used in its sales and distribution. In this report, Go plc, a telecommunication company is
taken as an organization. The company was established in the year 1997 and headquartered in
Marsa. It's the company to launch first quad play offer in Malta. The company provides mobile,
internet, fixed line and TV services to more than 500,000 customers. It is the only company in
the market that obtained rights to broadcast big sports competition. This report covers the
industry and company background, current market positioning, company's unique selling
proposition. It also includes environmental analysis for identifying potential market growth and a
detailed business plan for introducing new product or service in the market.
MAIN BODY
1. BACKGROUND STATEMENT
INDUSTRY BACKGROUND
Malta's telecommunication sector is the most advanced in Southern Europe as it has high
mobile and broadband penetration rates. The sector has designed its regulation in such a way that
it will help in reducing price for consumers and increase competition. The merger of Vodafone
Malta and Melita will pose a challenge for Go to retain in market. The broadband market is
mainly dominated by Go, which is close to monopoly in DSL and fibre segment, and Melita,
which is enjoying monopoly in cable services (Malta Telecoms, Mobile and Broadband 2019-
2023. 2019). The mobile market is controlled and dominated by Go Mobile, Melita Mobile and
Vodafone Malta. Regulators are putting efforts to encourage national broadband network which
will attract investors (The 1-GIG Opportunity. 2019). Go mobile and Vodafone together has 80%
market as of June 2017. Go company is the dominant operator with 65% market share.
COMPANY BACKGROUND
Go plc is the leading telecommunication service provider in Malta. Apart from quad play
offers, it also provides cloud services, data networking solutions, managed services, roaming hub
services and business IP services to customers. The company has put in heavy amount in its fibre
powered infrastructure. Its strategy aimed at delivering best services in relation to infrastructure
and customer service. It is the first 4.5G network provider in Malta.
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COMPETITIVE ANALYSIS
A competitive analysis is a strategy which helps in identifying the competition and
competitors in the market, conducting research for the products, sales and distribution and other
marketing strategies. It helps in forming solid business strategies that can be useful in meeting up
with the challenges and helps in gaining advantage over competitors. Performing competitive
analysis will help the organization in identifying the gaps in the markets, identify untouched
potential market, developing new products and services, moving with the changing market trends
and marketing and selling effectively and efficiently. It starts with identifying the competitors
and products that competitors offer, identifying how and what marketing tactics used by the
competitors, level of customer engagement with competitor's product and services, competitor's
social media presence and promotion practices, their target market and pricing policy followed.
All these factors are crucial in conducting competitive analysis.
SEGMENTATION, TARGETING AND POSITIONING
Segmentation: It refers to dividing the market into small groups with similar attributes. The Go
company has divided the market based on the youth and business professional who require high
speed network to carry the business.
Targeting: The Go company has targeted upper middle and higher income group people as this
network will be expensive.
Positioning: To position the product in the mind of consumers, Go company will be using digital
marketing techniques to promote its products.
To know the current market positioning of the Go plc, Porter's Five Forces framework
will be used. This will help in identifying the key areas of opportunity and threats and the current
market positioning of the organization.
Threat of new entrants: It refers to the situation where new firms can enter the market
and becomes threat to the existing ones. It is influenced by the regulations and barriers on the
entry of the organization. The demographic characteristics of Malta is very attractive which
attracts new competitors (Gans and Ryall, 2017). The new firms may enter but, to give tough
competition to the existing ones is difficult as it requires huge investment for infrastructure and
competitive services. Currently, the threat of new entrant is low for the Go company and
company can maintain its position by working efficiently.
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Threat of competitive rivalry: It refers to the competition and competitors in the
market. The market in Malta is small with very small selection of services providers. The
competition is mainly on quality, price, technology and innovation. Implementing advanced
technologies based on customer needs before any other competitors will help Go in attracting
more customers and take competitive advantage. Presently, the competitive rivalry is high,
because the market is small and competitors are more as compared to the market.
Threat of substitute products and services: It is related to the threat which is because
of the availability of substitute products (Harding, 2017). Every organization faces this threat and
there is no cure or right strategy to meet such threats. The competitors are working on to provide
the same services but has not completed. So, for Go company threat of substitution is low
initially till other companies come up with the same service.
The bargaining power of customers: It refers to the drive the buyer has to demand
lower price or high quality services. It depends upon the number of customer base the
organization has. If the organization has small customer base then customers have more power to
drive changes and if customer base is huge then customers have no or less bargaining power
(Kingsnorth, 2019). In Malta, market is small and is beneficial for the customers to demand for
low price and quality. The companies highlight its competitive characteristics by offering
attractive offers to its customers. The bargaining power of customers is low with respect to the
services provided as there is no option for the customers to switch to another. This will change
once competitors comes up with the similar product.
The bargaining power of suppliers: It is similar to the bargaining power of buyers but
in this power is in the hands of suppliers. If suppliers are less in the market than the suppliers
have to power to charge higher prices or low quality product or service and if suppliers are more
than companies can negotiate for lower prices as switching cost is low. An important supplier for
Go company is its infrastructure and maintenance supplier which are the crucial part of the
organization (Jurevicius Ovidijus, 2013). It can be said that bargaining power of suppliers is high
in Malta because of the less availability of relevant suppliers with required quality. Introducing
new service will require Go company to pay higher price to its suppliers and maintain good
relations with suppliers otherwise low quality and delays from these suppliers will result in
revenue loss and dissatisfied customers.
Unique Selling Proposition of the company
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The unique selling proposition of Go company is its fibre powered infrastructure. It is the
first and the only operator in Malta to have access to three submarine cables connecting the
island with the web. Other services of Go company that can be termed as its USP are its internet
service, it is the first network provider in Malta to offer 4.5G network. It also provides fibre to
home broadband service with the speed of 1Gbps. Go company owns the local broadcasting
rights for the UEFA champions league, the French Ligue 1, the Barclays Premiere league,
formula 1 and Rugby, the Italian Serie A, all in HD. Another USP is that it provides variety of
offers as per the customer needs such as monthly pay, student plans, other saving plans, limitless
calls and SMS, internet plans, TV packages, attractive home packs etc.
Marketing Audit
Marketing Audit is a comprehensive analysation and evaluation of internal and external
business marketing environment in systematic order to ascertain company's goals and areas in
which company needs improvement (Rahman, 2017). Thus, it assist GO plc in making effective
marketing plan for increasing sales and achievement of organisational goals. The internal factor
such as employees and management as well as external factor such as competitor, supplier and
investor effect in decision-making and functioning of organisation. While conducting marketing
Audit, GO plc requires to analyse and evaluate its internal and external factors which have been
explained below:
Internal factors: It refers to internal forces of the company that impact on the decision-
making of organisation such as human, physical, financial and technological resources,
organization's culture and its goodwill. Top management of Go plcis effectively manage various
resource that help in the success of the company. Effective utilization of internal resource help
GO plc in delivering quality services and thus help in increasing value of goodwill. It will also
help Company in launching of 5G network in the market by effective availability of resources,
coordination between employees and management within minimum wastage of time and money.
External Factors: It includes factors that are beyond control of company and in order to
gain competitive advantages, company overlook on various external factors such as political,
social, environmental, competition and suppliers in the market in which company operates its
business (Schultz and Malthouse, 2017). Due to ever-changing nature of environment it is
necessary for the company to continuous supervise various changes and updates itself in order to
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promote growth and success of the organisation. External environment is further divided into
micro and macro environment that are explained below:
Micro environment: It is crucial for the company to analyse and evaluate its environment in
which the company operates as it directly impacts on functioning of company. It impacts on
general performance of the company and not have long-lasting effects which includes customers,
suppliers, competition and public. Go plc has to analysis its micro factor in order to gain
competitive advantages and expands its market share by differentiating its product from other
competitors in the market.
SWOT Analysis
The Swot analysis of GO plc helps in analysing various opportunities and threats in the
market in which the company operates its business.
Strength: It defines the attribute of company in which it excels thus enabling company to
expand its market share and increase its profitability by differentiating product from competitors
product (Kotler, Kartajaya and Hooi, 2017). It provides unique services to its customers in Malta
such as roaming hub services, data networking solution, cloud service and Business IP services.
One of its strength also lies in highly, well-equipped infrastructure in fibre power that enable it to
be only and first Maltese operator to have access over three submarine cables. It helps in
providing seamless and qualitative experience to its customers by mobile networks or fully
integrated fixed network. GO plc by providing world-class service and good infrastructure able
to build good brand image of its product.
Weakness: It defines various negative point of company where it needs to improve itself
for achievement of company goals. As the company operates in telecommunication industry it
has to continuous innovate its technology in order to gain competitive advantage. So it requires
sufficient funds to meet such technological changes and increase its profit margin. But Finance
department of GO company is ineffective as it is not able to find effective source for raising
funds which leads to delay in update of technology and impact on company functioning and on
its success.
Opportunities: Company by analysis its internal and external factors can identify
various opportunities that can put it at advantageous position in the market. It has opportunities
to expand its market share and increase its profit margin by launching new service of 5G network
in its range due to good brand image and quality services to its customers. Customers satisfaction
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and loyalty able to promote its business effectively by mouth-to-mouth promotion, publicity and
help in maintaining and adding new customers in the company.
Threats: It includes potentials threats of the company in the environment that put it in
danger situation and affects on growth and success of the company. Increasing competition in
telecommunication industry in terms of price and new technology by other company to take
competitive advantages in the market. Thus increasing threats of competition in
telecommunication industry decreases profit and market share of the company. One of the
challenge for GO company is continuous growth in connected device so the company needs to
protect itself from such threats in order to get competitive advantage in the market.
Swot analysis helps the company in gaining competitive position in the market by
identifying various opportunities and protecting it from threats.
Macro environment: It is a wider term that not only includes a sector or segment but whole
economy of the country such as employment rate, GDP, fiscal policy, inflation rates and
disposable income of the consumers (Phadermrod, 2016). Macro environment factors impact
operation of business adversely so it needs to be considered for the success of the company.
Analysis of macro environment is done for effective operation of GO company in the market.
Pestle analysis: It is a tool that is used by marketer to analyses and evaluates various
external factor of environment such as political, social, economical and environmental that affect
company's operation and thus promote growth of the company. It thus assists in formation of
effective marketing strategies for launch of new products and services in the market.
Political factor: Company while operating its business has to considered policy, rules and
regulation of the government for smooth operation of its business. Telecom industry is facing lot
of political regulation and restriction while operating its business such as network licensing,
nations trade barrier and nation radio spectrum. Government intervention in telecommunication
industry is also high due to involvement of nation security and human rights issue. But the
economy in which GO plc operates offer free trade and minimum restriction thus the company
can effectively expand its business across the world.
Economical Factor: It determines the overall performance of economy by identifying interest,
employment, tax and inflation rate in the economy. Economic of country play an important role
in the success of the company as help in ascertaining income of people and employment rate.
Economic in which GO company operates was facing recession that means people have low
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purchasing power and are less interested in telecom spending. But now the economy is growing
at rapid pace thus increasing purchasing power of consumer for cellular services. So, favourable
economic condition helps GO company in expanding of its market share by launching of new 5G
network by reducing the cost of debt.
Social factor: Social factor helps in increasing profit margin of the company by identifying
social needs, belief, value and preferences that would help in development of new product or
services for satisfaction of consumer needs (Chang and Stone, 2019). Growing use of social
media, YouTube among younger generation has increases sales and profit of GO plc. In modern
generation, use of computer, mobile has increased so use of internet service has increased
tremendously. People staying away from each other want to connect to each other at high speed
and as increase in business operation across globally demand speedy internet service. So,
Company by launching 5G network able to satisfy the needs of consumers and gain competitive
advantage by differentiating its product in the market. Therefore, by considering social factor
company is able to promote growth and sustainability in the market.
Technological factor: This factor influences GO plc effectively as it is mostly based on
technology so the company needs to continuous updates its technology in order to get
competitive advantage in the market. Technological trends provides number of benefit to the
company such as computer and cloud computing. Many changes in technology can help the
company in expansion of business and increasing its sales and help in gaining competitive
advantage. GO company by continuous updating its technology as per change in environment is
able to launch 5G networking and thus able to provide innovative qualitative services to
customers.
Environmental factor:. GO company has to considered this factor while providing various
services to the customers as smartphone generate large amount of e-waste. So, both Go plc and
equipment provider should make effort to reduce e-waste in order maintain customer loyalty.
Steps taken to conservation of environment effectively promote new launch service and increase
its brand image.
Legal: Company has to compile to various rules and regulation in its operation to save itself
from fines and penalty. GO company operate in such industry that have various restriction
regarding separate from employment law and health and safety law. Company has to complied to
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various laws and licences that are important in launching of 5G network in the market. By using
laws while manufacturing product company can easily operate its business.
4 Principle of marketing
GO plc is planning to launch a 5G network in the market for growth and sustainability of
the company and to provide qualitative experience to its customers. Thus, the launch of new
product will help company in increasing its sales and profit margin.
Marketing is a strategic plan of the company to induce customers in order to increases
company's sales and profitability (Byrnes,and et.al., 2018). So, the marketer uses tools of
marketing such as price, products, promotional and place to induce customers to make purchase
of company's product or services. GO plc is planning to launch 5G network thus for effectively
promotion of its service it has to use 4p's of marketing product, price, place and promotion.
Thus, by effective use 4p's of marketing, company is able to expand market share of new
launched service.
Product / Services: Product or service is manufactured or provided by company to its
customers for satisfying their needs in effective manner. GO company has effectively identify
increasing use of computer and mobiles for social media, YouTube, speedy communication that
require fast networking service. So, the company by analysing various environmental factors
able to attain competitive advantages in the market by differentiating its service. It plans to
launch 5G networking in its service that offer speedy communication to massive people with
right trade off. Low Power consumption is also another benefit from 5G networking so that
customers can easily connected for months or years.
Various features of 5G networking are:
 High speed and covers more area.
 1Gbps data rate is easily possible.
 Less consumption of battery.
 Enhance security.
 Efficiency of energy and spectral.
 Low consumption of battery.
Price: It is one of the most important marketing tool to influences customers to prefer to
buy company's product as compared to other competitor's product or services. Price helps in
determination of company profit, survival and growth in the market. The industry in which Go
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plc operates is price sensitive so it has to choose appropriate price of the service offered to
enhance its sales and profit. Company does not change its price strategies as it offer qualitative
services and product to its customers. So, the company has to use innovative and competitive
price strategies as it provide quality and unique services to its customers. Thus, company will set
competitive price for its newly launched product as it has well-establish brand image and offer
qualitative services to its customers. Customers are ready to pay price set by company as its
service worth is value or price is not high as compared to its benefit offered.
Place: Company has to decide the place where the product or service to be kept so
consumers can easily avail product or services. In context of telecom service provider it refers to
the network of GO company in the market. GO company has use intensive distribution strategies
in deciding place of service which means the company aims is to provide its service in both
urban and rural area of Malta to add more customers. It has planned to launch 5G network thus
connecting people staying away from each other, help in effective business communication and
operation. Amazing and speedy network of the company help in development and bring new
changes, innovation in the economy. Company focus is to provide world-class facilities to its
customers thus have good customer care staff that effectively handle customers queries and
complaints. Company by launching 5G networking is able to take opportunities to expand its
share and is threats for other competitor due to continuous advancement in technology to provide
quality service at affordable price.
Promotional: It includes various activities such as advertisement, publicity, promotion
for influencing customers to prefer product and services of company. Well-establish brand image
of Go company also help in effective promotion of company new launch service. It is well-
known for providing qualitative service to its customers thus enhance customers loyalty and add
new customers in the company (Kennedy, 2017). It well-equipped infrastructure also play
important role in introducing innovative and speedy network to provide world-class services to
its customers. Company has also use various medium such as television, radio, print in order to
communicate its new launch product to its customers. By building good relationship with
customers and providing qualitative services able to promote its service and mouth-to-mouth
promotional is also used due to strong brand image. Sales promotion is also another technique of
marketing the GO company provide various offers to its customers regarding the new launch
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services. It also promotes its product through social media, various website and pages as they
most used this medium among the younger generation.
Thus, by effectively using various marketing tools the company can easily market it's
newly launched product, expand its market share and increase sales and profit margin of the
company.
CONCLUSION
As per the above report, it can be concluded that there are number of factors to be taken
into consideration while entering into the new marketer. Internal business analysis is also
required to know about the factors that may impact the business that are present within the
organization. It has helped in identifying whether the new product or service will be able to find
its place in the market and survive and grow based on its strength and weaknesses and how the
company is taking the advantage of opportunities and meeting with threats. All these tools have
helped in knowing the potential of market growth. Marketing mix is used in formulation of
marketing plan and its strategies. In formulation of marketing plan various internal and external
factors of environment are analysed for effectively operation of business in market.
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