Marketing Plan for Vodafone Australia

This report discusses the marketing plan for Vodafone Australia, including its current situation, mission, vision, objectives, external environmental analysis, Porter's five forces, STP strategies, competitive analysis, and SWOT analysis.

1.0 Executive Summary
Telecommunication industry in Australia is saturated due to involvement of large number of
telecommunication companies. Vodafone is one of the old players in telecommunication market of
Australia. It operates in Australia as Vodafone Australia or Vodafone Hutchinson Australia. This is the
result of merger between Vodafone Australia and Hutchinson 3G Australia. This merger helped the
organization to become a $7 million subscribers company. With its unique and attractive services,
organization has made an effective brand image in the Australia (Vodafone Hutchison Australia Pty
Limited, 2018).
In this report, marketing plan will be discussed in relation to the Vodafone Australia. As the Australian
Telecommunication market is saturated, thus, it is required for the organization to adopt appropriate
strategies in relevance with further growth of the organization in the Australian market. With regards to
these objectives of organization, this report will report will include organizational current situation, their
mission, vision and objectives for future growth. Further, report will focus over the macro
environmental analysis, segmentation; targeting and positioning strategies will also be discussed along
with competitive analysis, SWOT analysis. The last part of the report will focus over the control and
monitoring procedures.
2.0 Introduction
2.1 Overview
Vodafone Group Plc is a British multinational telecommunications conglomerate. Its headquarters is
situated in London. Company operates in Asia, Africa, Australia, Europe and Oceania. Vodafone stands
on the fifth position amongst the mobile operator groups in overseas market in terms of revenue and in
terms of connections; it stands on second position just behind China Mobile. Vodafone owns and
operates in more than 26 countries and in more than 50 countries with partner networks. It is listed in
London Stock Exchange and has primary listing. Apart from telecommunication industry, Vodafone
Global Enterprise is engaged in providing IT services along with telecommunication to corporate clients
in more than 150 countries.
2.2 Vodafone Australia
Vodafone Australia was founded in 2009 and currently, it is operating in a merger with Hutchinson 3G
Australia. This merger has increased the wealth and size of business. After merger, company become
more than $7 million subscribers with AUD 4 billion annual revenue. Organization has attained third
largest position as mobile telecommunication service provider along with 27% market share across
Australia after Telstra and Optus. Merger amongst these two companies is based on 50-50 profit and
losses sharing ratio. With regards to marketing and promotion, Vodafone was involved in sponsoring
sports activities. Vodafone Group owns 50% shares of Vodafone Hutchinson Australia Pty Ltd and the
same amount of shares owned by Hutchinson Telecommunications Australia (Vodafone Hutchison
Australia Pty Limited, 2018).

3.0 Mission, Vision and Objectives
3.1 Vision
Primary vision of Vodafone Telecommunications is to enhance their customer base across the globe and
in relevance with Australia; their vision is to acquire competitive advantage with the help of providing
qualitative services at cheap rates. This will attract other companies’ subscribers towards Vodafone and
organization will be able to attain its desired goals (Vodafone Hutchison Australia Pty Limited, 2018).
3.2 Mission
With regards to the telecommunication services, Vodafone is one of the oldest player, thus, they have
faced almost every type of situation in relevance with the dynamic business and marketing
environment. To enhance their performance as well as to gain leading position in the target market,
organizational mission statement is “in anticipation of customer’s needs, Vodafone Australia will
provide high quality telecommunication services”.
3.3 Objectives
With regards to this marketing plan, organizational primary objectives are:
 Increasing customer base, revenues and profitability;
 Increasing market share so as to attain leading position; and
 Adaptation of appropriate defensive strategies so that the acquired position could be attained
(Armstrong, et. al., 2015).
4.0 External Environmental Analysis (PESTLE)
With the help of this analysis, organization will be able to determine its needs and wants in terms of
strategies and approaches to tackle the impact of external environmental conditions of the target
market. Australian market is saturated, thus, there is no scope left for any telecommunication company
to acquire growth and development related. With regards to the analysis of external environmental
factors’ impact, certain advanced and unique product or service needs to be launched in the target
market along with the implementation of appropriate growth strategy so that the desired goals and
objectives could be attained along with attaining the leading position in the telecommunication market
of Australia (Hollensen, 2010).
4.1 Political
Political environment of Australia is highly stable and there is no such threat of overnight
implementation of strict regulations and policies for multinational corporations. Apart from this, political
factors have high significance over the policy making and implementation, thus, it is necessary for the
management to compliance with all the political rules, regulations and policies with regards to the
telecommunication industry so that the desired goals and objectives could easily be attained (Homburg,
Jozić & Kuehnl, 2017).

4.2 Economic
In terms of telecommunication industry, Australian market is saturated and to attain the desired
position, organization is required to adopt appropriate strategies so that compliance could be made
amongst the economic factors could be made. Purchasing power of Australians is high, thus,
organization could also focus over premium pricing strategy to attract the target audience as well as to
differentiate its position amongst the existing competitors (Lee & Carter, 2011).
4.3 Social
Requirements of people towards telecommunication service providers are increasing rapidly. Currently,
Australians are operating 5G internet speed and in a very short time period, 6G will be introduced.
Average speed of internet in Australia is 25.88 Mbps. In relation to these numbers, Vodafone Australia
needs to adopt unique strategies so that 6G internet speed could be introduced in the Australian market
through them along with setting up more mobile network towers to avoid network lost issues. With the
help of these measures, Vodafone Hutchinson will be able to attract the other operator’s subscribers
along with gaining competitive advantage in the target market (Mullins, et. al., 2010).
4.4 Technological
Technological factors have a great role in telecommunication industry. Technological changes are
necessary for the organization in order to cope up with the target audience’s needs and wants. To
enhance customer base along with increasing revenues, organization is required to provide unique
services along with technological advancements. For example, Vodafone Australia could introduce 6G
network before other companies and for a certain period of time (testing period), organization could
provide free services to its users. This will help the organization to attract large number of audiences
through which subscription will be increased along with gaining competitive advantage (Srdjevic,
Bajcetic & Srdjevic, 2012).
4.5 Legal
Telecommunication Act 1997 is the primary legislation which carries all rules and regulations in
relevance with operating in telecommunication industry in Australia. Apart from this,
Telecommunication (Consumer Protection and Service Standards) Act 1999 should also be considered
while making the policies and strategies to attain the desired goals. This act includes all the standards
and obligations on carrier operators which need to be adhere by whole telecommunication companies
in Australia (Vazifehdust, Taghipourian & Gharib, 2011).
4.6 Environmental
Environment is the major concern for all industries across the globe. Emission of radiations is the major
issue for the telecommunication industry. Towers set up by the mobile service operators for improving
the network quality is affecting natural ecosystem, thus, it is necessary for every organization in the
telecommunication sector to adopt and introduce creative methods through which radiations could be
controlled so that the natural habitat and wildlife does not get affected.

5.0 Porter’s five forces
5.1 Threat of new entrants
Vodafone Australia has set up its significant image in the telecommunication industry, thus, threat of
new entrants will not affect their operations. Vodafone Hutchinson is the third largest mobile network
operator in Australia and to defend their acquired position, organization has built up their brand loyalty
amongst the target audience through providing attractive offers, premium quality services, etc.
Vodafone Australia has covered 27% market share of the Australian market and it is just behind its direct
competitors i.e. Optus and Telstra. Setting up an effective position along with competing with the
existing big players will not be an easy task for the new entrants. Thus, it could be said that threat of
new entrants is weak force.
5.2 Threat of substitutes
Threat of substitute is another weak force. Landline services and CDMA services were the traditional
mediums while after introduction of mobile devices and wireless network, demand for landline and
CDMA services have been declined. Apart from this, broadband connection, email services, social
network sites and video conferencing are some of the major substitute for mobile network operators. In
relevance with this, Vodafone Australia has introduced some distinct products so that they could retain
their potential and existing customers such as Vodafone TV, live cricket scores, and high internet speed.
Thus, it could be said that threat of substitute is another weak factor (Wilson & Gilligan, 2012).
5.3 Bargaining power of consumers
This factor has significant impact over the telecommunication industry due to large number of
companies. Due to large number of companies in the telecommunication industry, choices for
consumers are high. In relevance with this, companies in the telecommunication industry are adopting
unique strategies in order to make their distinct position in the competitive market along with gaining
competitive advantage. This helps the consumers to consume high quality services and numerous
services at low rates. Thus, it could be said that consumer’s bargaining power is a strong force.
5.4 Suppliers’ bargaining power
Telecommunication operators take mobile network towers, wires and other raw materials from
suppliers. In relation to this, there are few suppliers exists who produces quality mobile network towers
and other required materials in Australian telecommunication industry. Crown Castle International
Corporation, AT&T Towers, Global Tower Partners, etc. are major tower producers and suppliers in
Australia. Thus, supplier’s bargaining power is strong and they could affect organizational performance
in positive as well as in negative. In accordance with maintaining the acquired position in the market
along with enhancing the market image, it is necessary for the organization to develop and maintain
effective relations with the suppliers. This will ultimately help the organization to uplift their
performance along with gaining competitive advantage in the target market (Wright, et. al., 2010).

5.5 Industry Rivalry
Telstra, Optus, TPG Telecom, Vocus Group, NetComm Wireless, etc. are big and old players of the
telecommunication industry in Australia. In order to make unique brand image, organization is required
to adopt advanced strategies in terms of technological advancement, pricing strategy, and product
differentiation strategy. This will help the organization to gain its desired goals and objectives along with
uplifting their brand image in the target market (Dälken, 2014).
6.0 STP Strategies
6.1 Segmentation and targeting
Demographics: Both male and female of all age groups will be targeted.
Geographic: Rural as well as urban areas will be targeted (Dobbs, 2014).
Behavioural: People who prefer high internet speed and premium mobile network services will be
targeted.
Psychographic: This segment includes brand conscious people. Along with this, people who believe
carries lifestyle will be targeted as Vodafone has built an effective brand image in the target market.
In relevance with the targeting the selected consumer segments, organization will focus over social
media, email, television marketing, radio marketing will be included in the marketing and promotional
campaigns of the organization.
6.2 Positioning
Positioning is a major segment of marketing strategy and it is used for setting brand image amongst the
targeted customer segments. Main motive of implementation of positioning strategies is to set up
unique brand image amongst the target consumer’s mind. This will be done majorly by social media
strategies as it covers large market area at low cost with higher returns. Apart from this, organization
will also focus over television marketing strategies with unique advertisement content so that an
effective image amongst the target audience could be built up (Kraus & Strömsten, 2016).
7.0 Competitive Analysis
Competitive analysis will focus over analysing the direct competitors for Vodafone Australia, their
current strategies and their future strategies. Vodafone Australia is the third largest mobile network
company in Australia, thus, it is a major concern for the organization to maintain its acquired position
along with developing and adopting advanced strategies so that the leading position in the market could
be attained (SmartCompany, 2008).

(Source: Whatphone, 2018).
In relevance with gaining leading position in the target market, organization will require to adopt
appropriate strategies to differentiate their products and services from its direct competitors. Unique
and effective services will help the organization to attract the target customer segments along with the
customers of other mobile network operators. Along with introducing new and unique services,
organization will adopt appropriate and effective strategies so that the desired outcomes could be
attained.
7.1 Market needs
Currently Aussies are seeking for high internet speed along with network coverage in all areas and
regions. Most of the companies, industries and even every field of the Australian market are using
internet services for promotion, purchasing and selling and for various other activities. In relevance with
the requirements of the target market, it is necessary to provide advanced strategies so that the services
could be enhanced so that the market needs could be fulfilled (The CIE, 2018).
7.2 Market trends

Figure: Mobile carrier share by services in operation
Whole mobile industry is engaged in improving speed and network coverage so as to satisfy the
consumer’s needs and to gain competitive advantage. Despite being the high expenditure in improving
service quality and setting up more towers, returns of this investment is also high and effective. Thus,
VHA (Vodafone Hutchinson Australia) should spend certain part of their revenues in terms of improving
services quality, internet speed as well as network coverage to compliance with the target customer’s
needs (Paul Budde Communication Pty Ltd, 2018).
Figure: Volume of downloads by technology type
As per this figure, fixed-line market in Australia is dominated by Telstra. It is the only mobile network
operator which is providing high quality fixed line services. Company acquires 65% of the market share
in terms of revenues. Thus, in order to enhance the customer base, Vodafone Hutchinson Australia
could move in the fixed line services (PR Newswire Association LLC, 2018).
8.0 SWOT Analysis
Strengths
 Third largest mobile network operator in
Australian market.
 Huge market coverage
 Rapid innovations to provide unique and
advanced services
 Strong brand name (Vodafone Hutchison
Australia Pty Limited, 2018).
Weaknesses
 Large number of competitors
 Relatively expensive from other networks
 Weak coverage in other fields such as
fixed-line (PWC, 2018).
Opportunities
 Increasing demand for fixed line networks,
Threats
 Increasing demand for fixed line network.

thus, organization could expand their
reachability.
 Introduce 6G network.
 Increase customer base by introducing
unique and advanced services as per
consumer’s demands and wants.
 Intensive competitive environment.
9.0 Marketing Strategy (Marketing Mix)
9.1 Product
 Pre-paid and post-paid mobile services and value added services.
 Previously, its main services were calling and texting.
 Now its major offerings have been evolved as data usage.
 To enhance their target segments, organization is planning to introduce other services such as
fixed line connections.
9.2 Price
 Premium pricing strategy
 Provides premium quality services as per price charged
 In order to attract more customer segments, organization is seeking for cost-leadership pricing
strategy (
9.3 Place
 Vodafone Hutchinson Australia serves in all major and small parts of Australia
 Strong distribution network
 Now planning to open more distribution channels in rural areas so that large area could be
covered.
9.4 Promotion
 Social media strategies
 Sponsorship of sporting events i.e. event marketing
 Email marketing
 Traditional mediums of marketing are also being used for making marketing and promotional
campaigns effective.
10.0 Conclusion
From the aforesaid information, it can be concluded that Vodafone is one of the largest mobile network
operators across the globe. Company operates in various countries across the globe and Asia, Africa,
Europe and United Kingdom is their major serving regions. This report includes marketing plan for
Vodafone Australia to enhance their market share along with enhancing their customer segments.

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