University of Northampton: Vodafone Marketing Audit Report

This report presents a marketing audit of Vodafone, a multinational telecommunications company, examining its marketing environment and strategies. The report begins with an introduction to marketing audits and their importance, followed by a detailed analysis of Vodafone's macro-environment, including political, economic, social, technological, and environmental factors. It then delves into the micro-environment, focusing on market dynamics, customer behavior, and competitor analysis. The internal analysis section explores Vodafone's marketing strategy, functional departments, and value chain. A SWOT analysis is conducted to identify Vodafone's strengths, weaknesses, opportunities, and threats, providing a comprehensive overview of its current market position and potential future directions. The report concludes with a list of references used throughout the analysis.

Marketing Audit Report
of Mobile Network
Provider

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Producing market audit that support market plan...................................................................3
SWOT analysis.......................................................................................................................7
REFERENCES................................................................................................................................9
APPENDIX 1.................................................................................................................................10

INTRODUCTION
Marketing audit is an effective tool that are being used to identify the progress in the
particular marketing area and job (Lamb and Crompton, 2017). This study is based on Vodafone
who is a British telecommunication or network provider multinational company. It was founded
in the year of 1991 by Ernest Harrison. It serves and provide services around the worldwide. This
study is going to show marketing analysis. Marketing audit and analysis consists of different
environment like internal, external, competitors, customers, strategic etc. By analysing all factors
like political, social, own strengths, own weaknesses, intensity of competitors in the market,
customers preferences and their buying behaviors, Vodafone makes changes in its strategies. It
helps it out in accomplishing its marketing and overall goals.
MAIN BODY
Producing market audit that support market plan
Marketing audit refers analysis and evaluation of the business marketing environment
and all areas of marketing for supporting market plan. It is a combination of several analysis like
macro environment, micro environment, customers, competitors, system and strategies analysis.
Macro analysis
There are several micro environmental factors that can have positive and negative
impacts on the operations of the company. So, it is important for the company to identify all
those factors and improves its decision-making process. Some factors are shown as below:
Political: There are several problems faced by Vodafone due to instability of political in
Egypt. This instability affected its ability and operations to provide effective services with extra
cost. It has increased cost in some areas such as: door to door transportation. Hiring extra and
skilled employees for reducing problems created by labour turnover. Due to changes in
government regulations and inability to predict the next governmental strategies can also affect
negatively to the company. On the other hand, stability of government in some countries and
favourable policies are having positive impacts (Abou-Warda, 2015).
Economic: After 2011 revolution, an economic slowdown has affected Vodafone Egypt
and it also increased insecurity among tourists and hurt process of tourism like manufacturing
and construction. Increasing in inflation rate also effected in negative manner as it increased

service cost and prices. So, it can be said that almost, all economic changes affected this
company in a negative manner (Ferrara, S. and et.al., 2019).
Social: Consumer spending trends is getting higher as people are investing most in
internet services which is good for this company. It is increasing its sales and revenue. Increasing
unemployment rate is also beneficial for this company as it can attract several skilled workforce
and accomplish its goals. On the other hand, changes in customers demands is somehow having
a negative impacts (Reddy, 2016).
Technological: Advanced technology like introduction of 4G internet services in the
market is increasing the ability of this company to expand its business and data services. It can
provide attractive services to customers with implementing technological tools. Investment in
technologies can increase its operational cost that is not good for it (Ling, 2016).
Environmental: In most of the popular areas, networks of roads and infrastructure
availability has made an effective building sites by which it can provide effective networking
services. On the other hand, weather changes can disturb its networking services which can have
negative impacts on it (Maiz, Arranz and Fdez. de Arroyabe, 2016).
From the above analysis, it can be said that by considering all factors it can make changes
in its strategies and attract several customers. It is the main responsibility of marketing manager.
Micro analysis
Market
In the context of market and company size profits it can be said that free cash flow of this
company has decreased approximate up to £1.1 billion, payment for taxation also decreased
approximate 78.0% that decreased the interest of people in Verizon wireless.
In the context of this networking provider industry, it is also stated that total revenue is
approximate £20bn in the year of 2019. Number of businesses are 2,837. There are several
companies including Vodafone that holding the largest market share in the wireless
telecommunication in UK industry. Vodafone uses a mix strategy of segmentation. It uses
geographical, psychological and demographical segmentation as it provides several services and
this mixture is the main key of its success as it can attract several people around the world (Chou
and et.al., 2016).
Customers

Today customers are having both positive and negative impacts on its operations and
strategies. So, it is important for this company to focus on marketing and customers analysis for
identifying their needs and buying behaviour. By using location intelligence, it understands
consumers behaviours.
It is also stated that consumers evaluate and analyse several features and factors while
making decision of buying internet services. Some factors include: Pricing, speed of networks,
other facilities like games, storage capacity of handsets, camera quality etc. After identification
of all those factors it is also reported that Vodafone Live provides on the move information
services which helps it out improving its brand image. It also provider its services in affordable
price as it wants to make its services accessible to many people as possible (Ang, 2016).
So, it can be said that it's pricing strategy is affordable as it has different structure as per
the different customers group. It can help it out in taking several opportunities from the market.
Competitors
There are several competitors of Vodafone like BT group that is a top competitors and
provide excellent services to people (Kumar, 2019). China mobile, AT&T and Verizon are also
top competitors of this company. Some 5 forces related to competition are described as follows:
Forces Intensit
y
Description
Bargaining power of
customers
High There are several players in this industry that give
free internet and excellent services. Due to all these
benefits given by other companies, consumers
change their SIM. There is a low switching cost so,
they can port their mobile number.
Bargaining power of suppliers Medium
or
moderate
In telecommunication industry there is a lack of
suppliers which can give medium threat to Vodafone
and other companies. Due to lack of substitutes,
outsourcing network abroad can give less power to
suppliers of bargaining (Satyanarayana, Rao and
Naidu, 2017).

Threats of new entrants Low There is a huge licence fee which need to be paid by
entrants, complex regulatory issues, high
infrastructure cost and changing technology are
some factors that give a low intensity in the context
of new entrants.
Threats of substitute products Moderat
e to high
Landlines users are declining, other services like E-
mail and social media networking can not give the
same features of products and services to people as
like Vodafone.
Competition among existing
players
High There are several competitors of Vodafone that are
giving the same and highest quality of services to
people. So it is increasing the competition and hence,
it is high in intensity.
So, it can be said that by analysing all these factors, Vodafone can make itself able to
achieve competitive advantages by making changes in its policy and strategies accordingly.
Internal analysis
Strategy: It uses segmentation, targeting and positioning strategy for knowing the
actual needs of only targeted people and attract them. It is stated that this company use the mix
target strategy (Simkin, 2016). It has segmented people who are looking for good mobile
services and high speed internet. Target of people is tier2 upper and middle class. Value chain is
an effective activity by which it can deliver valuable products and services to customers. It has
skilled workforce that are given opportunities of career development.
Functions: It has several functional departments like marketing, HR, finance, customers
service. All these functions play their roles in an effective manner with the main aim of
accomplishing organizational goals.
In the context of other strategies which helps it out in increasing revenue includes:

Innovative products and differentiation: It several products like Vodafone portrait, M-
Pesa, Vodafone speech marks are some innovative products. It has helped this company to take
competitive advantages.
Enterprise solution: It provides enterprise solution and because of this service its almost
66% of total revenue is generated and comes from retail consumers.
Distribution strategy: It uses the best and effective distribution strategy as it has
partnership agreements with local mobile operators in approximate 58 markets. It is also
operating as a joint venture in approximate 26 countries. It is the best strategy of this company in
entering in new market and attract several customers (Naidu, 2017).
SWOT analysis
In the context of environmental factors it can be said that there are several internal factors
that can affect majorly to operations, productivity and functions of Vodafone. All these factors
includes: strengths, weaknesses, opportunities and threats (Li and et.al., 2016). The main aim of
analysing all these factors is to improve decision-making process by improving strengths and
reducing weaknesses after finding out reasons. Some internal factors are being described as
follows:
Strengths:
 The main and important strength that makes it able to attract several customers is its
legendary marketing strategy. For its marketing it has made an effective use of Vodafone
pug. Its other unique and attractive element of marketing is Vodafone Zoozoo's that
converted many users to die hard fan of Vodafone. (SWOT of Vodafone, 2018).
 Its other strength is premium cost, as compare to other tele-communicators, Vodafone is
making itself differentiate in the context of services and prices as well. Its users also think
that Vodafone is a Notch above the rest, and they feel proud of users of Vodafone.
Weaknesses:
 It is identified that from last 4 years there is a dropping of subscriber base and the main
reason of this weakness is dropping brand valuation.
 Other weakness that is creating problems and decreasing its sales is losing market share
in USA. Due to increased competition and excellent services by AT&T, Vodafone is
losing its shares in USA.

Opportunities:
 There are several emerging markets rather than rural markets like Africa that has a
potential place for Vodafone. These markets have disposable income which can give
several opportunities to Vodafone in expanding its business (Alharbi, Dowling and
Bhatti, 2019).
 Internet speed and introduction of 4G service is also giving opportunity to Vodafone. For
example, free plans of Reliance Jio in India have resulted in many people leaving
Vodafone but 4G spectrum lead result in higher revenues for the telecom operator.
Threats:
 It is stated that there is a huge competition in networking and telecommunication
industry. Some reputed telecommunication providers like AT&T and other are giving
excellent services which can decrease the sales and revenue of this company.
 Mobile number portability is other threat for Vodafone because there are several brands
and telecommunication providers that offer free internet and for getting that benefits
consumer do not think twice and switch their brand. So, it is also the bog threat for the
company (Sammut‐Bonnici and Galea, 2015).

REFERENCES
Books and journals
Abou-Warda, S.H., 2015. A Standardized Marketing Audit Model for Entrepreneurship
Education in Egypt. International Journal of Service Science, Management,
Engineering, and Technology (IJSSMET). 6(1). pp.75-92.
Alharbi, M., Dowling, P.J. and Bhatti, M.I., 2019. Strategic planning practices in the
telecommunications industry: evidence from Saudi Arabia. Review of International
Business and Strategy.
Ang, R., 2016. Vodafone Global Telecommunications: Optimizing Operations. IUP Journal of
Operations Management. 15(4). p.46.
Chou, S.Y., Chen, C.C., Dai, Y.M., Lin, J.H. and Lee, W.W., 2016. Novel synthesis of bismuth
oxyiodide/graphitic carbon nitride nanocomposites with enhanced visible-light
photocatalytic activity. RSC Advances. 6(40). pp.33478-33491.
Ferrara, S., Zambetti, S., Braida, D., Morini, R., Sala, M., Matteoli, M. and Menna, E., 2019.
Exposure to Environmental Factors rescues spine defects of Eps8 KO mice. Matters. 5(3).
p.e201903000024.
Hult, G.T.M. and Ketchen, D.J., 2017. Disruptive marketing strategy. AMS Review. 7(1-2),
pp.20-25.
Kumar, B.R., 2019. Vodafone Acquisition of Mannesmann. In Wealth Creation in the World’s
Largest Mergers and Acquisitions (pp. 17-29). Springer, Cham.
Lamb, C.W. and Crompton, J.L., 2017. Analyzing marketing performance. In Marketing the
Public Sector (pp. 173-184). Routledge.
Li, S., Liu, W., Shi, M., Mai, J., Lau, T.K., Wan, J., Lu, X., Li, C.Z. and Chen, H., 2016. A
spirobifluorene and diketopyrrolopyrrole moieties based non-fullerene acceptor for
efficient and thermally stable polymer solar cells with high open-circuit voltage. Energy &
Environmental Science. 9(2). pp.604-610.
Ling, L.U.O., 2016. SWOT-PEST Analysis for the Sustainable Development of Competitive
Sports in Shanghai. Hubei Sports Science. (11). p.8.
Maiz, A., Arranz, N. and Fdez. de Arroyabe, J.C., 2016. Factors affecting social interaction on
social network sites: the Facebook case. Journal of Enterprise Information Management.
29(5). pp.630-649.

Naidu, A., 2017. Strategies for Marketing to the Rural Customer in India: The 4 As Model of
Rural Marketing. Journal of Rural and Industrial Development. 5(1). p.35.
Poosala, V. and Panah, A.Y., Facebook Inc, 2018. Techniques for communication using audio
stickers. U.S. Patent 10,080,111.
Reddy, K.S., 2016. Institutional Voids and Tax litigation in Emerging Economies: The verdict of
Vodafone cross-border acquisition of Hutchison.
Sammut‐Bonnici, T. and Galea, D., 2015. SWOT analysis. Wiley Encyclopedia of Management,
pp.1-8.
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.
Simkin, L., 2016. 11 Segmentation. The Marketing Book, p.271.
Online
SWOT of Vodafone 2018. [Online]. Available through
<https://www.tandfonline.com/doi/abs/10.3109/17549507.2014.923510>

APPENDIX 1
Company overview: Vodafone is a British multinational telecommunication whose
headquarter is in London, England. It operates its networking services in different areas such as:
Africa, Asia, Oceania and Europe. In the ranking according to the quality and services it is
ranked 4th for mobile customers. It operates networks in approximate 25 countries. In the context
of size it is stated that it has approximately 98,996 employees around the worldwide. It has also
listed in London Stock exchange. It was established in the year of 1991. It has several
competitors that also provide internet services such as: China Mobile, Verizon, Nippon, At&T
etc. It provides 24*7 customer services and it is also stated that it has approximate 8.3 million
customers. Data SIMs and handsets are some products of this company. Mobile internet, mobile
voice calls are some services given by Vodafone.
APPENDIX 2
Macro model: This model involves all external factors like political, social, legal etc. All
these factors can have positive and negative impacts on it. So, it is important for the company to
identify all those factors and improves its decision-making process
Political: It related to government like tax policies, health and safety laws, governmental
stability etc.
Social: It all related to the society and consumers like their changes, needs, preferences etc.
Economic: It includes taxation rates, unemployment, taxation rates. It also have positive and
negative impacts.
Technological: Techniques used for performing business activities like social media and other
tools.
APPENDIX 3
Micro model: It includes consumers, competitors and other strategies. By analysing all
these factors in micro model company can make changes in its strategies and can take
competitive advantages. For competitors analysis, porter's 4 forces model can be used as it helps
the company in evaluating all those factors that are related to competition like suppliers
bargaining power, threats of new entrants etc. Consumers continuous changes also can have
positive and negative impacts so by knowing their purchasing behaviours and factors considered
by them, company can satisfy them.

APPENDIX 4
Internal model: Internal model include SWOT analysis which are being used to evaluate
and analyse all internal factors that can also have critic impacts on company's operations.
Strengths, weaknesses, opportunities and threats are some internal factors. By analysing all these
factors it can increase its strengths and remove weaknesses that can help it in accomplishing its
goals.