Marketing Strategy of Vodafone: STP Analysis and Marketing Mix

This report analyses the marketing strategy of Vodafone, the world's largest mobile telecommunication industry. It includes STP analysis, marketing mix, and the impact of corporate social responsibility on marketing. The report also discusses Vodafone's segmentation, targeting, and positioning of the customer base.

Running head: MARKETING VODAFONE
MARKETING VODAFONE
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1MARKETING VODAFONE
Executive summary
This report has assessed the nature of marketing of the world’s largest mobile telecommunication
industry Vodafone. This company mainly operates from the UK and now offering survive to
more than 70 countries of the world. The company provides a wide range of products starting
from mobile data to fund transfer. This report has found out the key marketing strategies of
Vodafone by analysing its segmenting, targeting and positioning of the customer base, the
marketing mix and other phases of marketing that helps the company to have more market
penetration. These proper marketing strategies has helped the company to enter the foreign
markets. This report concludes with the impact of corporate social responsibilities in the
marketing and all-inclusive development of the company.

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Table of Contents
Introduction:....................................................................................................................................3
Nature of marketing and marketing management of Vodafone:.....................................................3
Key marketing aspects (STP) of Vodafone:....................................................................................4
Segmentation:..............................................................................................................................5
Targeting:.....................................................................................................................................6
Positioning:..................................................................................................................................6
Marketing mix:................................................................................................................................7
Product:........................................................................................................................................7
Price:............................................................................................................................................7
Promotion:...................................................................................................................................8
Places:..........................................................................................................................................8
People:.........................................................................................................................................9
Process:........................................................................................................................................9
Physical evidence:.....................................................................................................................10
Partnership:................................................................................................................................10
Corporate Social Responsibility (CSR) affect marketing:.............................................................11
Conclusion:....................................................................................................................................12
References:....................................................................................................................................14

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Introduction:
The aim of this report is to discuss the marketing strategy of the largest
telecommunication network company of the world namely Vodafone. This UK based company
has been operating in the world for more than 30 years (Vodafone.com, 2019). Irrespective of
economic capabilities of the countries, Vodafone has been providing its network facilities and
guiding others to do the business in unique and fair ways. It is leading the Global market of
Telecommunication industry by percent market share. Vodafone is the acronym of Voice Data
Fone. The company started in the year 1985 and now has the presence in more than 26 countries
through joint ventures and associates directly and offering their services through partner network
in more than 49 countries of the world (Vodafone.com, 2019). Today more than 500 million
customers prefer Vodafone for their exclusive service both for voice call as well as internet
network.
This report will be discussing the nature of marketing of the company, key marketing
aspects or the segmenting, targeting and positioning of the customer base, the marketing mix of
Vodafone and finally how the corporate social responsibilities affect the marketing and all-
inclusive development of the company itself.
Nature of marketing and marketing management of Vodafone:
Vodafone is the largest mobile telecommunication network company of the world which
is also the third largest telecommunication Corporation in Britain. This company is the largest in
all over the world in terms of revenue which is 4,657.1 billion EUR (Forbes, 2019). Though its
unmatchable network, Vodafone allows the people to share their thoughts, feelings, and
creativity through sharing images, videos and many other things. The company does more than
just being mobile network Corporation but caters the need of business by offering a high-quality

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Network Support for any type of communication. Vodafone was the first company that
introduced the Vodafone live service. It has set a new standard for the mobile communications
along with Internet access. The company fuels the desire for sustainable innovation that give
birth to the idea of Vodafone money transfer. The company always aims to empower the clients
does gain popularity in the international market.
Vodafone has the vision to be the world’s Mobile Communications leader. This has been
reflected in their marketing strategies and the presence of Vodafone in the international market
proves that their strategies are properly implemented. The company prefers merger and
acquisition process to enter a country. In some cases, it has shown ability to capture the whole
market by joint venture (Vodafone.com, 2019). Vodafone offers various suitable products as
well as services to the market in that which particularly are designed according to the demands as
well as preferences of the various customer base. The company knows how to reach the target
market and does so aggressively. However, Vodafone as was introduced in 1980s, has been
capable of capturing the UK market as well as the highly populated markets of Asia.
Key marketing aspects (STP) of Vodafone:
Vodafone has been continuing to solid as well as loyal customer base. This is due to the
fact that the company presents excellent products and excellent service for the customers. This
company has continued to offer a wide range of services that includes messaging data voice call
and broadband (Kresak, Corvington & Williamson, 2016). The continuous advancement in Data
Services has helped the company to develop itself in the foreign Markets and reach a huge base
of customer.
Segmentation targeting and positioning model is a strategic approach in the modern
marketing. This is one of the most applied marketing models which helps to develop and deliver

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relevant messages for engaging with various audiences (Lii, Wu & Ding, 2013). It identifies
bases for segmentation and determine all the important characteristics of every market segment.
The market targeting evaluates potential as well as commercial attractiveness of every segments
and select one and more segments to explore (Kwenin, Muathe & Nzulwa, 2013). In the product
positioning system, the companies develop the detail products positioning for the selected
segments and develop marketing mix for every selected segment.
Segmentation:
Segmentation is a process of segmenting or splitting the entire market into some smaller
groups. These markets are consisted of many groups of people who usually have some common
characteristics as the consumers (Kraus & Strömsten, 2016). All of these groups command
tremendous purchasing power. Vodafone segments the targeted customers in the segments like
age, income, service utility, behaviour, life of service, gender and geographical as well as
psychographic conditions.
Income and age: Vodafone segment its customers by segmenting into adults and youth. It
then categorises this particular segment has the college students who are young adults and those
who have entered the corporate world who are older adults.
Service usage: the target customers of Vodafone are segmented on the basis of their
demand of services. For example, some of the users go for Vodafone to use Data Services and
others prefer voice calling or text messages.
Nature of customer: Vodafone has segmented its customers by their nature of buying
products and services. Vodafone checks whether he or she is a soul user or using the service for
corporate and looking for corporate line.

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Service tenure: the company segments the customer base by the preference of service
tenacity. Some of the customers prefer to sign up for lifetime and the others expect post-paid or
prepaid cards with validity date attached.
Geographical conditions: the company has segmented the customers geographically also.
This is why it provides different types of services and products to different markets for example
the expectancy of customers from the company in Mexico is not similar to that of China.
Targeting:
Vodafone uses multi-segment approach and it offers a series of differentiated services or
products to its respective markets. By targeting the segmented customers Vodafone has aimed to
sell its products and services more competitively. Vodafone mainly targets the marketing
strategy for the customers living in the small or large towns to the middle- or high-income
groups of population. The target customer of Vodafone also includes youngsters as well as
business persons who prefer to use high quality data service and uninterrupted voice calling
facility to stay connected with friends, family and business (Smutný, Řezníček & Pavlíček,
2013). Vodafone has a good network distribution channel which helps it to provide IT services to
the people who live in the remote villages or places in the country. The prepaid service attracts
middle or high-income groups Miley the young generation. The home calling cards issued by
Vodafone for calling abroad is Highly popular. The handset ranges offered by Vodafone has
grown popularity than BlackBerry or iPhone. These products are meant for high income groups
but Vodafone handsets are having the same features with much lower price.
Positioning:
Vodafone has been quite successful in positioning itself in every part of the world with its
excellent channels of distribution. In order to create sales as well as enquiry the company has

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introduced different types of exciting advertisements along with sales promotional activities. The
company has an excellent tagline which says “whenever you go, our network follows”. This
creates a good image in the mind of the customers about the best network coverage and promote
this service to be superior as well as consistent. The company announces its visibility through
sponsorship in various Sports arenas. The advertisement character named zoo zoos help it to
enhance its popularity in the Global market. It is due to the fact that this advertisement was
highly uploaded by the clients which had a great hit.
Marketing mix:
Product:
Vodafone presents a variety ranges of products that include messaging, voice call, data
and the fixed line solutions. The main aim of this company is to help the customers with all their
communication requirements. The chief usage as well as functionality of the mobile phones is
the voice calling facilities and text messaging which the company develops. For catering
different customer demands, Vodafone has offered an extensive range of tariffs that target
various customer segments (Vodafone.com, 2019). The company does not only take care of the
demands of the customers, but provide sophisticated handsets also. Through these handsets, the
company offers its best product quality as it has been doing for last few decades. Therefore,
Vodafone has launched branded devices as well as services which cater all the needs of the
customers. The product variation includes smartphones, branded phones, handsets, voice call and
messaging services, internet services and value-added services.
Price:
The company has competitively priced its products and services so that they can be easily
accessible to the common people. To gain the competitive edge, the company decides to provide

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the best quality services like high speed data, good network service and best handsets. Vodafone
has various price structures that suit different levels of customer needs. It has both the prepaid
and post-paid plans of high and low budget. Now Vodafone has entered the internet business
offering 4G internet rates. To enhance popularity, it has introduced reward points in the pricing
strategy which the customers gain on spending a particular voucher or the data bundles.
Promotion:
Vodafone has always tried to use the local names to enhance recognition and contrasts
from the local customers in different market. It has employed different brand ambassadors
having highest popularity so that it can enhance the brand value. Most of the time this
telecommunication giant employs famous sports stars to promote its brand. In addition to this,
the advertisement appears in TV commercials, billboards and the social media platforms so that
more people can see them. Along with these, the company has utilised the animation characters
named the Vodafone Zoo Zoos worldwide. It is the best and most popular brand ambassador of
Vodafone as it is recognised by everyone globally. The company also publishes frequent press
releases so that the customers get information of their new products and services. Vodafone
undertakes extensive market research for determining whether their services are useful for the
customers.
Places:
Vodafone has an international structure where it enters by the process of joint ventures. In every
market the company has located its own stores. In these stores, the customers visit to see or buy
products and services or to take the benefits of warranty on the products. the company’s
marketing strategy has been to focus on the customers and leading the markets from the front. In
order to strengthen its position in market, the company has headquarters in the most important

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business cities of that country. From here all the policies, services and changes are delivered to
the local stores or offices. In the rural area also, Vodafone stores can be found so is the market
penetration globally. The company also employees local and independent retailers.
People:
Vodafone as operating in the service industry of the world, that involves high level of
people in directions. It has huge human resources and it uses these resources efficiently to reach
the market and understand the actual needs of the customers. All the stakeholders operating with
Vodafone have been satisfied effectively. The employees get proper training, IT support and
personal development processes. The employees are kept motivated by the incentives for their
qualitative and productive works (Huang & Sarigöllü, 2014). Depending upon them the
Company forms a strong relationship with the customers. It has also good connection with the
intermediaries like independent retailers and agents who help the company to understand the
demands of the customers more effectively.
Process:
In telecommunication industry the services and products must be meeting the demands of
the customers of that region. The processes there must be customer friendly. In case of
Vodafone, the speed of internet data, uninterrupted voice call and accuracy of other services need
to have great importance. In addition to this, the processing method must be very convenient and
easy so that the customers can easily handle these aspects. It is the process that gives Vodafone a
competitive edge over the Rival companies in a same market (Kwenin, Muathe & Nzulwa,
2013). Vodafone has both IT as well as data warehouses that smoothen the process flow. The
information technology department helps the servicing of huge number of customers in limited
time and efficiently. It brings down overheads in one hand and complement or supplement the

10MARKETING VODAFONE
channel of distribution quite cost effectively. Process helps Vodafone to improve the customer
service level. It uses the process of data warehousing management along with mining. These help
in finding out the profitability as well as potentiality of the dividend customer product segments.
Physical evidence:
The physical evidence for Vodafone includes reports, different tangibles, signage, punch
lines and the employees dress codes. The tangibles of the company include extra talk time and
the attractive offers to the customers. The company’s punchlines or corporate statement depicts
its philosophy as well as at the attitude of the service providers. The company has influential
punchline for attracting the customers (Kresak, Corvington & Williamson, 2016). Vodafone
service marketing incorporates the identification of profitable international markets in the present
as well as in the future, strategizing plans for achieving comparative advantage in every
changing environment and setting the business development goals profoundly.
Partnership:
The company works with a selected and trusted group of partners so that it can create a
tailored proposition for taking the business through the digital transformation and position the
stakeholders for anticipating the future challenges and overcoming them immediately. The
company has combined expertise benefits that helps the customer to get extensive experiences
and solve any type of issues regarding telecommunication or connectivity (Vodafone.com,
2019).
 For cloud and hosting, the company has partnered with Dell EMC, Cisco and Huawei
and Hewlett Packard Enterprise.
 For connectivity, the company has partner with Google, Cisco ad Microsoft that provides
greater value and helps in evolution of a digital workplace.

11MARKETING VODAFONE
 For security, Vodafone has partnered with Fortinet, Zscaler, BAE Systems which help
the company to get the security from constantly evolving cyber threats.
Corporate Social Responsibility (CSR) affect marketing:
Corporate social rresponsibility refers to the initiatives by the business owners which
benefit the society. CSR often Falls into three categories which include social, environmental
and economic. It is also called the triple bottom line which affect the business success even more
intensely then it used to do in past (Webb, 2013). The consumers now have become more
educated and ever on the social as well as environmental issues like global warming, unethical
labour practices and needs for business charities. It is the CSR of a company that relates directly
to the human rights to the business operations. They also have typical impact on the marketing of
the company. This is a program, that not only helps the company to create a scope for tax
reduction but also directly enhances the ability of a brand for creating as well as maintaining a
positive image in the marketplace. It is very important to note that most of the companies engage
in the CSR policies for financial gain which can come out of it (Jayaram, Manrai & Manrai,
2015). However, recent studies have revealed that the companies which engage in the social
responsibilities tend to show a long-term economic gain as well as increased values. The reason
CSR can have the ability to build a brand equity is purely psychological. It is true that the
customers want products for surviving and most of the purchases depend upon the demands but
most of the purchases are not only about survival. Therefore, the companies aim to connect a
purchase with something which is seen as a nonessential as well as larger than a mere purchase
of product (Andreu, Casado-Díaz & Mattila, 2015). This enables the customers to have an easier
time to validate their purchase within their minds.

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Corporate social responsibility thus creates a positive feeling which relates to the social
approval as well as self-respect for the companies. The brands which can evoke positive feeling
among the customers, make them feel better about themselves (Boateng, 2016). Therefore, as
marketing is the way to create an impression in the minds of the customers, CSR can
successfully create a positive image of that brand and make the consumers feel that their
purchase is going to be utilised for their own social development. In addition to this, CSR also
helps in another way to give the companies a brand related benefit. It is related to the sense of
community in the social aspects of a market. By arranging some essential commodities for
donating people in need, like the victims of natural disaster or to solve the issues of
homelessness, the companies are able to reach more people rather than they reach by the means
of mere marketing (Lucassen & Jansen, 2014). These volunteer hours and charity allow the
companies to form a connection with the local communities which fuel to develop a brand image
hence result in a better connectivity with the market including the suppliers, employees and most
importantly the target customers (Plewa et al., 2015). This type of commitments directly serves
the sales objectives of the companies. It has been seen that more than half of customers prefer to
buy from those companies which have provided support and show engagement in the charitable
activities for improving society. In case of Vodafone it has aimed to have a sustainable business
that promotes diversity and equity, energy and environment transparency, ethical behaviour and
created scope for developing skills as well as jobs for the young generation (N.vodafone.ie,
2019).
Conclusion:
Therefore, it can be concluded that the marketing strategy of Vodafone is unmatchable
and so also their services to the customers. Through proper marketing strategies the company has

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been able to enter in both the developed as well as developing countries of the world and doing
the business by beating all the competitors effectively. The company provides a wide range of
products starting from mobile data to fund transfer. It indulges in segmenting and targeting the
customer base and try to make the lives of the customers more comfortable though their services.
The voluntary initiatives have helped the company in reaching more to the customers and
enhanced brand equity.

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