Marketing Management: Vodafone's Strategy and Competitive Analysis

This report provides a comprehensive analysis of Vodafone's marketing management. It begins with an executive summary and introduction to the company, followed by an in-depth marketing audit. The audit examines the external market attractiveness and potential for growth, incorporating a PESTLE analysis to assess the political, economic, social, technological, and legal factors impacting Vodafone's operations. The report then explores market segmentation, targeting, and competitive positioning within the telecommunications industry. Finally, it proposes new marketing mix actions to address gaps between Vodafone's current strategy and the external environment. The analysis emphasizes the importance of adapting to changes in the market and understanding customer needs. The report concludes with recommendations for improving Vodafone's marketing performance and maintaining its competitive edge.

Marketing
Management
Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1

INTRODUCTION...........................................................................................................................2
Main Body.......................................................................................................................................2
1 Introduction of organisation................................................................................................2
2. Marketing audit, external market attractiveness and potential for market growth.............3
3. Market segmentation, market targeting and competitive positioning................................8
4: New marketing mix actions to achieve gaps between Vodafone present marketing strategy
and external environment.....................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARY
Marketing management is a process of developing policies and strategies for products and
services along with using promotional tools for reaching to desired customers. External analysis
is described in this assignment which helps the Vodafone in understanding external environment
and its factors. In addition, marketing mix is also defined in this project that assists the
organisation in choosing best promotional tool for executing marketing strategies.
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INTRODUCTION
Marketing management can be defined as an analysis of a particular sector which includes
several methods and theories that are used by organisations for promoting or selling their
products. In addition, it is a process in which strategies are developed by organisations for
advertising or promoting their product and service. Furthermore, it is an analysis, planning and
implementing of programmes for bringing changes in existing marketing activities. Taken
organisation for this assignment is Vodafone which is a multinational telecommunication firm
and was established in 1991 by Emest Harrison and Gerry whent. This is a multinational
organisation which provides its services in telecommunication sector and offers several products
and services such as mobile phone digital television to customers. Marketing audit in which
introduction, vision, mission and objectives of organisation along with market attractiveness will
be discuss under this report. In addition to this, impacts of external environmental factors along
with marketing strategy for filing gaps will be described under this report.
Main Body
1 Introduction of organisation
Taken firm for this project is Vodafone which operates its functions as public limited firm
throughout the world. It is a multinational telecommunication firm which was incorporated by
Ernest Harrison and Gerry Whent in the year of 1991 with an aim of improving
telecommunication services across the world. Headquarters of organisation are London, UK.
Organisation offers several products and services like fixed line telephone, mobile phone, IPTV
etc. Now company is providing its services in approx. 26 nations such as UK, U.S, India etc. the
company was formed in 1984 as a subsidiary of Racal Electronics Plc. but after 7 years Racal
was demerged and Vodafone name was come into effect in 1991. Goals, vision and mission are
formed by company at the time of its incorporation whether it performs operations at local or
multinational it can’t be change. Vision of Vodafone is to become a leader in telecommunication
industry across the world whereas; mission of firm is to satisfying the needs of their
stakeholders. Some goals are decided by Vodafone for performing their functions such as Ensure
health and safety of general public such as customers, employees and their investors, Work for
resolving scientific uncertainty. These goals are formed by Vodafone for performing their duties
at global level. Vodafone uses several marketing and promotional tools for creating awareness in
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the mind-set of customers. Company has good brand image but still they use several tools for
promoting their products like business magazine, social media, advertisements etc. so that any
difficulty not be faced during launching of new products or services. Revenue of Vodafone in
last year 2018 was €46.571 billion that defines good market position of company in
telecommunication sector. Main competitors of Vodafone in UK are Giff-Gaff, EE, and
Plan.com etc. Vodafone is unique brand in market because of which they always offer better
network services to their customers. Company offers wide kind of services due to which they
have divided these in two parts like voice and data plans and Broadband and television etc. In
voice and data plans, company offers 3G, 4G packs, Internet packs, unlimited calling packs etc.
whereas, in Broadband and Television internet television, fixed line telephone, Broadband, IPTV
are the products which are offered by company to their customers. Company is also doing
several CSR activities such as medical campaigns in South Africa in which they provide free
health information to parents and their child. Along with it, they have their own foundation
which is operating by company and whose main aim is to help needy people. Company have also
framed an aim in which their managing director has decided to become world’s No. 1 employer
for women. In formation of marketing strategies, these products and services always helps the
management because if they are not purchased by customers in market company’s sales figures
will be decreased which will not beneficial for brand image of firm. Hence, it can be said that
better quality of products and services are very necessary for maintaining brand image of
organisation in marketplace (Drnevich and Croson, 2013).
2. Marketing audit, external market attractiveness and potential for market growth.
Marketing audit: It can be defined as an interpretation, analysis, systematic evaluation of
marketing environment of business in both terms i.e. internal and external perspectives. Along
with it, principles, goals and objectives are made in it so that present market opportunities can be
identified and grabbed effectively. With the help of it, any organisation can define the major
problems of future and make plans accordingly for resolving these problems. Vodafone is
providing effective 4G services to the customers and for identifying its attractiveness Marketing
audit is conducted by Vodafone. By doing this they will be able in identifying all information
about opportunities and threats that can be faced or grabbed by company in future.
Recommendations also provided by them after conducting marketing audit so that problems can
be rectified easily. Vodafone should conduct marketing audit for enhancing knowledge regarding
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the actual requirements and problems of customers which are faced by them during the use of
Vodafone 4G so that after determining it can be fulfilled or rectified accordingly by forming new
plans or policies (Bovee, Thill and Raina, 2016). Marketing audit will also help Vodafone in
analysing macro environment and its factors which are impacting on profitability and operations
of firm in negative manner. For analysing these factors, management of Vodafone have to
conduct PESTLE analysis which is given as below:
PESTLE can be defined as macro environmental analysis tool which is used for
determining external factors and their effect on the working operations and activities of
organisation. In addition, this model is stands for political, economic, social, technological and
other factors which can affect the whole performance and operations of organisation in positive
or negative manner. In a marketplace, each organisation uses this model for finding factors and
their influence on the functions of firm. Even Management of Vodafone use this tool for finding
the factors which are affecting their working policy and profitability after launching of 4G
services. This model is described as below:
 Political Factor: This factor of model defines impact of political factor and other
relevant policies of government on the business organisations or in other words, each
organization have to suffer from these policies. Major government policies which are
included in this factor are Trade policies, internal political issues, government policies
etc. that can provide positive or negative impact on the functions and profitability of firm.
After Brexit, several policies are changed in UK nation such as UK government is very
strict and have formed numerous policies for entering in telecommunication sector but as
Vodafone is UK based firm and operating its operations within the nation from more than
20 years so it is a positive sign for company. Whereas, skilled and experienced workers
are moving out towards developed countries which are a major issue for company’s
profitability therefore, management of Vodafone has to consider this factor so that brand
image and new services i.e. 4G can be maintained in marketplace.
 Economical Factor: Factor which is related with economic structure and policies and
affecting the operations of an organization is known as economical factor. This factor
includes interest rates, inflation, import and export duties etc. It have also possess huge
impact on the telecommunication industry on each organization. For example- after
Brexit, purchasing power of citizens are low due to which they prefers only those data
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plans which can fulfill their needs in lower prices and any pressure not be faced by their
pocket for purchasing these plans. This issue has also posses wrong impact on the
Vodafone’s sales figures. For resolving this factor, Vodafone can form new 4G data plans
and calling packs so that customer base and sales figures of firm can be maintained in
marketplace (Bharadwaj and et. al., 2013).
 Social Factor: This factor includes taste, preferences, norms, values, beliefs and
preferences of customers that can influence the whole profitability and operations of
organization in positive or negative manner. Demands and wants of customers can
change anytime so that it is important for Vodafone to consider actual requirements of
customers then provide those products and services accordingly. For e.g. in
telecommunication industry of UK several competitors are exist who are offering plans at
lower prices to customers as compare to Vodafone. Due to which customer base of
company is reducing day by day. Therefore, Management of Vodafone should consider
this plans and data packs and make effective prices for data packs so that customer base
of firm can be based in marketplace. For e.g. limited data and calling pack is provided by
competitor of Vodafone at an amount of £30/month. So that, for reducing attractiveness
of this plan management of Vodafone can provide a limited 4G data plan with extra
features such as £15/month for limited data pack and if customer wants to excess
unlimited than they have to pay £30/month. Through launching this pack customer not
only attracted towards company’s offering but also revenue figures of firm will also
increase.
 Technological Factor: This factor is related with advancement in technology,
innovations and many more which can restrict the growth and sustainability of firm in
marketplace. Telecommunication industry is mainly based on technology and in today’s
competitive environment customers are more advanced and want better services without
going anywhere. Due to which, each organization of telecommunication industry is
implementing more advanced technology in their network systems so that high speed data
and effective calling facilities can be provided to customers. As Vodafone is operating its
operations in several nations then company should make investments for upgrading their
network systems and 4G services so that any kind of difficulty not be faced by their
existing customers. For e.g. competitors of Vodafone have launched several apps for
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recharge, bill payments, movies or music. So that, management of Vodafone should
consider all these applications of competitors and make a different app which includes all
these functions such as recharge, bill payment, news, entertainment etc. Along with it,
company should advertise it that the application is less data consuming then other
applications (Karagiorgos Drogalas, and Giovanis, 2011). Through launching this
application, company will be able in attracting potential customers towards the product
and services of organization (Amran and et. al., 2016).
 Legal Factor: This factor includes laws and legislations which are formed by parliament
of UK nation and can affect the organization and its profitability in positive or negative
manner. These laws include consumer protection, health and safety tax regulations and
many more. Due to Brexit, government of UK become more strict to protect the rights
and duties of customers For e.g. In 2016, Vodafone have paid a penalty of £925,000 due
to poor complaint handling process of customers. Due to this penalty most of customers
have disconnected their connections from Vodafone and moved towards other network
service providers. For resolving these issues, company has also formed a committee to
find actual cause of this issue and through this they have fired who have done this. But
after some time, company have recovered their brand image and improve sales figures
considerably. They have also provided strict instructions to their customer care
representatives that this error wouldn’t be repeated in future. Therefore, it can be said that
Vodafone should consider these laws and legislations effectively so that any kind of
difficulty not be faced in future in terms of their newly launched 4G services along with
sales figures and customer base.
 Environmental Factor: This factor is related with protection of natural resources and
environment which can impact sales figures and profitability of firm in positive or
negative manner. Environmental element especially specializes in weather, ecological
device, environmental guidelines and many greater. so one can take boom in the
marketplace Vodafone is needed to paintings as in line with the need and wishes of
nearby people and for this is important that they must take the advice of different
additional opinion of humans. Vodafone must strive that how they can keep in mind the
global warming and different climatically adjustments as a way to preserve the
telecommunication market. Even organization should try and locate the way via which
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they are able to provide the offerings to the majority at an inexpensive rate. For e.g. they
should upgraded their tower and network systems and placed them on those places where
less population is living or outside of populated areas. These towers have also capacity to
provide high range of data services in more than 10 KM which will leads attractiveness
of customers towards new 4G services of Vodafone. By doing this, company will be able
in forming good image in mindset of customers and government which is beneficial for
company and new 4G service (Hoejmose, Brammer and Millington, 2013).
Apart from positive and negative impact of macro environmental factors on Vodafone.
Vodafone 4G have approx. 444 million customers in more than 26 nations. Company is known
as top network service provider across the UK. Last year in 2018 Vodafone have paid an amount
of 13.3 billion euro in form of tax to the government across the world. As company has launched
4G services but now for further growth and sustainability they have to launch this service
throughout the world along with backward areas. It will be beneficial because when high speed
data at lower prices will be provided to customers then it leads the firm towards high growth and
sustainability along with high customer base. In addition to this, Vodafone should consider
market trends and customer’s needs so that the company its profit and sales. 4G services are
mainly started in mid of 2018 across the UK and now approx. 80% of citizens in UK are using
4G network in their smartphones. According to a report of telecommunication sector of United
Kingdom, 61000 citizens are using 4G service which defines a good sign for Vodafone in terms
of growth and sustainability. Whole telecommunication sector is covered by three major
telecommunication companies that are Vodafone, EE and O2. In last year, market share of
Vodafone was 79.5% after launching 4G service in UK that defines company can take further
growth and sustainability across the world through making modifications as per the market
trends and needs of customers. For understanding the performance of Vodafone in UK a graph is
given as below:
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From the above graph, it has been identified that Vodafone’s 4G services are low than their
competitors but as pricing strategies are good so company can take growth in future. But they
should also upgrade their data services and network services so as to improve their market share
among their rivals. Along with this, it has been also measured that 4G services are available only
in 43% across the UK which can pose hinder on the further growth and customer base of
company (State of Mobile Networks, 2018). Therefore, it has been recommended to the
managers of Vodafone that they should upgrade their network services and place upgraded
towers in low populated areas so that through their capacity vast area of UK will be covered with
high 4G services in future. By doing this, company will easily competitiveness among their
rivals (Murthy, 2012).
3. Market segmentation, market targeting and competitive positioning.
Market Segmentation is the process of dividing the customers in several segments so that
their needs can be catered in an effective manner. This is useful for the firms in determining the
needs of their customers according to the segment through which the organisations can provide
them products accordingly. The market segmentation is beneficial for the Vodafone in catering
the needs of their customers effectively so as to enhance their satisfactions and trust toward the
company. Vodafone is dividing their customers in group so that their needs can be determined
for providing the services of company. The company after analysing the needs of their customers
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provides them services accordingly. The market segmentation process of the Vodafone is based
on demographics, geographic, personal characteristics, and situational factors. These are
discussed below:
Demographic Segmentation: For such type of segmentation process, company is
targeting the market based on the factual and physical data. This segmentation is done by
Vodafone based on the nationality, religion, race, family size, marital status, occupation, income
gender and age of their customers.
Geographic segmentation: For such type of segmentation process, Vodafone is targeting
the people based on the place they live. For this, the company is considering the population
density, natural resources, terrain and climate of a particular place whose citizens will be
provided by the services of the company.
Psychographic segmentation: For this type of segmentation, Vodafone determines the It
is classifies market on basis of lifestyles, interests, motives, values and personality traits. It can
either be combined with other variables or segmentation or can be used by themselves for
segmentation of market (Trevino and Nelson, 2016).
Behavioural segmentation: In such type of segmentation process, Vodafone is targeting
the people based on their attitudes, behaviour and beliefs of the people etc. in terms of the buying
behaviour, supply, demand etc. so that products can be delivered properly.
Product related segmentation: This type of segmentation is done by the Vodafone by
analysing the dependence of customers on products and services which are to be marketed. The
company considers various aspects in this number of smart phone users, number of users using
online services for buying, selling, and payments of bills or for any service.
Competitive Positioning: In this, the product or service is marketed in the market for
increasing the awareness among the customers. The company is focused on the ways through the
services can be provided to the targeted customers It is final step in marketing process. In this
focus is on analysing how services are provided to target segment. For this, Vodafone needs to
consider the requirements of each segment so that the company can deliver the products based on
demand. The company also needs to determine the benefits which are provided by the services to
the customers due to which they choose Vodafone over the rivals.
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4: New marketing mix actions to achieve gaps between Vodafone present marketing strategy and
external environment
Vodafone is one of the world’s largest telecommunication brand whose headquarter is in
United Kingdom. The company has a huge staff around the globe which is more than one lack
employee and they enjoy huge customer base which is approximately one hundred and fifty
million. It has its operation in more than thirty countries worldwide. Despite the tough
competition or huge number of competitor Vodafone is doing well in the respected sector. They
always try to explore new opportunity and do well there. To get the competitive advantage they
try to bring innovation in the market, the innovation is in relate a new service which is never
experienced so that the customer can get more engaged to it. It is also listed in the New York
stock exchange which helps them to gain recognition.
Although the marketing followed by Vodafone is effective but they can alter on some of
its marketing strategies. The motive of marketing mix analysis is to evaluate marketing strategies
of Vodafone. Further, the positive shift in business activity is conduct by company can be
achieved via seven P’s of marketing mix that is product, price, place, promotion, physical
evidence, process and people (Verbeke, 2013). Therefore, these seven P’s of marketing mix is
discussed below:
Product: The product offered by the company is mainly prepaid, post-paid and value
added services. It offers various services in field of communication some of them are voice and
messaging services, internet services etc. The company initially offered services related to
calling and texting only but with the evolution in the market they also switched towards data
services. Vodafone tries to target various segments throughout the world so that they can get a
handsome margin out of it. Moreover, the company is doing well but to get the competitive
advantage in this competitive world they can try to provide tariff plans according the needs of
customer due to which it can be more customers centric. As with the era of digital customer rely
on internet so company can provide attractive offer that is free Amazon Prime subscription or
Netflex subscription.
Price: The competition in telecom market is cut throat and to survive in that type of
competition the company charge competitive prices from its public on that competitive [rice they
try to give qualitative services to public. Company has done the segmentation and pricing are
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done accordingly. To get the competitive advantage the company can try to push more and more
services to its customer which can generate loyalty out of its customer.
Place: Vodafone has a huge distribution channel across the global they provide the
assistance via customer service and company also have physical store around the world. Most of
its services are sold through customer care centre or retail store. With the strong range the
company has a huge positive in related to distribution channel. Although the company has huge
range but they should also look for untapped market and try to penetrate them by giving them
attractive offers and better services.
Promotion: One of the way to reach the customer is advertising, Vodafone use
promotional tool to reach the huge audience across the globe. The brand try to do aggressive
promotion via television, print media, online platforms, billboards etc so that they can reach their
prospective customer as fast as possible and give them a short but effective message. Moreover,
selected company try to involve public figures like David Beckhum, Marycom so that they can
get attention of public (Werther and Chandler, 2010). Continuous press release by Vodafone has
the customer to know about the company by that they can shed their trust on the company. The
reason of promotion to be the most important tool is the advertisement of Zoo Zoo which created
hype in the market resulting in huge awareness about the company and its services. Therefore,
company can focus on promoting their brand on rural areas and they can promise them to
provide the high quality services at reasonable price.
Physical evident: Physical evidence of the respective company consists of sim cards
which they try to issue to each and every customer. Other than that their stores and service outlet
are the part of physical evidence. Digital television, set-top box are some other category that
comes under the physical evidence. Respected company should try to increase the range of its
physical evidence so that the customer can purchase more from the brand.
Process: Vodafone concentrate on its process as a part of service marketing mix as it is
known that telecommunication is a service oriented industry, so it is very important for the
process to be effective as well as efficient. The main focus is to provide customer varieties in top
ups and good network quality. A proper customer service is also a part of efficient process which
company takes care of due to which they can connect with their customer and give them a
pleasant experience. Moreover, providing sim cards all over the world is also the part of process.
Company can reduce the gap by improving their quality of service so that the customer of
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company can get satisfies and to do the same a proper process needs to be laid down and
followed.
People: The Company has always focused on their customer and for them their customer
is the highest priority. If taking about stats they serve around four hundred million subscriber
across one sixty countries. Selected company have huge workforce that is more than one lack
employee across the world (Wirtz, Schilke and Ullrich, 2010). Further, company focuses on
motivating and training their employee so that they can give qualitative service to their customer
resulting in relationship development. The main believe of the organisation is that customer and
employee are the two major pillar to get success. Additionally, to cover the gap respective
company can give premium services to the customer at reasonable rates as well as continuous
recognition to its employee when they deserve it.
CONCLUSION
From the above discussed report, it has been concluded that marketing is a very important
aspect of each organisation as it helps them in satisfying the needs and wants of customers. For
gaining success and high customer base it is very essential for each firm to conduct PESTLE
analysis and marketing audit because through it they can spread awareness within the large
number of customers regarding the offerings of organisation. It is also concluded that marketing
mix and segmentation of market is also important because it helps the firm in making its brand
image and competitiveness in marketplace.
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