Vodafone Australia Marketing Audit: Analysis and Improvement Plan

This report presents a comprehensive marketing audit of Vodafone Australia, examining its current marketing practices to identify key problem areas and propose improvement strategies. The report begins with an executive summary and an introduction, followed by an in-depth analysis of Vodafone's company background, customer demographics, and competitor landscape, including Telstra and Optus. It then delves into Vodafone's product and pricing strategies, comparing them with competitors. A detailed service blueprint is constructed, illustrating elements like physical evidence, front and backstage interactions, support processes, and potential failure points. The report also explores Vodafone's customer service strategy and physical evidence, culminating in a set of recommendations based on the 3C's analysis. The report covers various aspects of Vodafone's marketing activities, including product, price, service blueprint, physical evidence, and customer service-related strategies, to provide necessary directions and approaches aligned with the organization's vision and mission. The analysis includes demographic and psychographic segmentation of the customer base, the competitive positioning of Vodafone, and an evaluation of its pricing tactics.

Running Head: MANAGEMENT 0
SERVICE MARKETING

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Executive Summary
This reports outline of service marketing of Vodafone Australia to identify necessary
problem areas while recommending a plan for improvement. Vodafone Australia was
established in 2009 and presently they are operating more than 400 stores throughout
Australia. The report starts with analysing 3C’s of Vodafone (company, customer and
competitor’s analysis). Later on, Vodafone product and pricing strategies are elaborated in
comparison of their competitors’ products and pricing. The major competitor of Vodafone in
Australia is Telstra and Optus. Afterwards, a service blueprint has been drawn depicting
elements like physical evidence, front and backstage interactions, support process and fail
points. With regards to this, the report also highlights customer service strategy of Vodafone
with analysis of physical evidence. In last, necessary recommendations are being suggested
on the basis of company 3C’s.

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Contents
Introduction................................................................................................................................3
Company background............................................................................................................3
Customer Analysis.................................................................................................................4
Competitor Analysis...............................................................................................................5
Product Strategy.........................................................................................................................6
Pricing Strategy..........................................................................................................................7
Service Blueprint........................................................................................................................8
Customer Service Strategy.......................................................................................................11
Physical Evidence....................................................................................................................12
Recommendations....................................................................................................................12
References................................................................................................................................14

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Introduction
In this report, a systematic marketing audit has been conducted of Vodafone Australia
current marketing practices so that to recognise key problem areas and recommending plan
for improvement. This section includes identification of 3Cs of the company in the right
direction of marketing audit. These 3Cs stands out to company, customers and competitors.
In further section, some key areas of marketing activities such as product, price, service
blueprint, physical evidence and customer services related strategies will be identified so that
to recommend some necessary directions and approaches fit with the organisation vision and
mission.
Company background
Vodafone is one of the greatest Australian telecommunication organisation providing
services to 22 million Australians with its leading mobile networking technologies (Pearce,
2019). It was incorporated in 2009 and currently the company has more than 2500 plus
employees serving to all Australian customers. Currently, Vodafone Australia accounts for
more than 15.7 per cent of the total Australian mobile market in comparison with Optus and
Telstra (Reichert, 2017).
Vodafone Australia positioning reflects its constant focus on delivering consumer
connectivity, choice and freedom now and in the future. Since the incorporation, Vodafone
introduces of the ‘Power to you’ strapline help the brand to set a belief that digital services
and new technologies will play a constructive role in transforming community and improving
people quality life for many years ahead (Majithia, 2017). In relation with brand image,
Vodafone already unveil a new visual brand identity for its iconic brand incorporates new
Red plans in retail stores; ease the amount of messaging and presenting a bolder, younger and
more energetic look.
Vodafone strengths can be identified with its extensive market coverage and
innovative advertising strategies. For instance, Vodafone is increasing its investment to three
times into what it calls “hyperlocal” marketing. It will function some 300 dissimilar creative
implementations across 220 metro and regional places in its newest push (Baker, 2014). In
terms of weakness, Vodafone Australia is facing moderate growth with declining customer
and subscriber base. It was found that Vodafone struggles with losing 1 billion customers in

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2013 due to backlash of customers over the poor coverage of network, high dropout rate,
slower speeds and various lawsuits.
Customer Analysis
Vodafone is continuously growing to grow and develop as solid, loyal consumer base
as the company provides excellent products along with superior customer service. Vodafone
Australia segments the markets on the basis of demographic and psychographic variables. In
demographic segmentation, the company includes the people of age group 13 to 65 with
income level of small, medium, high level marketplaces (both B2B and B2C). The services of
the company are provided in all are including urban, semi-urban and rural zones. Considering
psychographic segmentation, the company prefers youth and people in urban and semi-urban
areas and also those individuals who are ready to pay more exceptional services. The target
market of Vodafone Australia includes all individuals’ customers and business enterprises
usually categorised as contract or prepaid customers (Singh, 2014). The telecommunication
industry remains attractive and Vodafone intent to advance execution in current business with
customer value enrichment and cost reduction. One of the key customer trends in
telecommunication industry is the advent of 5G as most of the users are rest heavily on
telecommunication firms for high speed and reliable internet connection.

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Competitor Analysis
The biggest rivals of Vodafone in Australia is Optus and Telstra as both of the
companies are operating with their own mobile network and infrastructure. The company
positioning can be understood in a better way with the help of above positioning map. Based
on the above positioning map, Vodafone and Telstra are both superior in terms of speed and
coverage. Speed and Coverage are among most vital attributes internet users perceive for
when choosing connections solutions (Islam, Selvadurai & Town, 2008). Unlike the
competitors, Vodafone has been able to constitute a viable balance amid coverage and speed
without prioritising one aspect and end up compromising the other. Prime competitor of
Vodafone Australia i.e. Telstra has its strength in dominant market position, investment in
advanced technologies and cordial relations with regulatory bodies. On the other hand, the
weakness of Telstra includes higher prices than Vodafone and Optus, latency issues and
operational inefficiencies (Beltran, 2014).
High Speed
Low Quality High Quality
Low Speed
Telstra
Vodafone
Optus
Exetel

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Product Strategy
Vodafone Australia now has the second largest 4G network after Telstra with
covering a bigger section of the population than Optus (Domanski, 2018). Vodafone offers a
wide range of products including data, voice, messaging and fixed line solutions. These are
divided into various segments including mobile, broadband and different plans such as Add-
ons, SIM only plans, Vodafone Passes, prepaid and post-paid plans and so on. Customers of
Vodafone looking for best quality products and services and this is what Vodafone continue
to do. The company products and services are designed to fulfil a wide range of consumer
preference and requirements. The core functionality and use of Vodafone service were
initially for calling and texting in relation with various tariff plans. However, due to
globalisation and competition, the company is also allowing data services at very low prices
to all Australian consumers. Vodafone 3G network has already been covered more than 97%
of Australians and company has also set that its natural spectrum re-farm plan has
transformed its complete holdings of 850 MHz range to raise its 4G net (Pearce, 2019).
Some of its supplementary products or services include mobile broadband includes
prepaid plans, plans with modems, modem SIM only plans, Tablet SIM only plans. In
addition, supplementary services in association with mobile plans and products include
international roaming and calls, insurance and Vodafone Pay. Vodafone Australia also
includes various services in the business and corporate domains and the company is also
being rated positively from 2 years in a row by Canister Blue. The company developed
various products and services such as a Red Plus Plan where one can get vast amount of the
Max Speed data with consuming as ample data with speed up to 1.5 Mbps. In addition, the
company also have nbnTM plans that all come with unlimited data
(mediacentre.vodafone.co.uk, 2019). Vodafone also presents various preferred system for the
business firms such as personalised service, business specialists and account management. In
personalised service, the user can get 10+ connections with getting one on one consideration
with a Personal Account Manager. The firms opting for Vodafone services also get business
specialists where they were provided priority service from the dedicated business team in
relation with offering the right solution. Vodafone Australia also has business flex plans and
Vodafone Business Advance. The company believes that every corporate requires an amount
of flexibility and predictability and thus with Vodafone Business Advance gives them per
month pricing, predictable per user and lets them evade from extra data charges.

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Pricing Strategy
Vodafone products and services are competitively priced and effectively accessible
for many individuals as possible. To fight with intense competition, Vodafone Australia has
ensured that it offers high quality services like good network range and faster speed data to
what rivals are offering. As Vodafone have different products and services for catering
different client and customer needs, the company offers various price structure in relation to
variation in tariffs. One of their most recommended plans is Red plus Plan where the standard
structure allows customers to get 30GB monthly as $45 per month (Donnelly, 2019). The
company also have this plan at higher price offering more amount of data and thus pricing
strategy helps the company to meet the expectations of wider range of customers. The
company use cost leadership strategy and thus offering roaming plans at low prices such as
$5. This allows both company and user to control costs when any individual or business firm
are working overseas. Considering its pricing strategy, the company also presents
supplementary products with its long terms plans like save up to $1000 over 24 or 36 months
on selected device when any individual sign up to any red or red plus plan (vodafone.com.au,
2019). Such strategies help the brand to attract the number of consumers over 22 million
Australians. Among the tier 1 phone companies, Vodafone’s value is now finest. The network
coverage of the company is also stronger than Optus. With regards to this, the corporation is
leveraging its international strength in content and roaming.
Considering value based pricing, the company is known to provide best plans and
offers for all sorts of customers including individual, businessmen, students, professionals
and so forth. For instance, the company have data plan of 20GB for $18 only for the students
(however, it requires UNiDAYS validation) (vodafone.com.au, 2019a). Such flexible plans
for various customers allow company to charge much higher price for client’s projects.
Hence, value based pricing can be considered as pinnacle of every pricing strategy and also a
technique for setting the price of a product or service grounded on the economic value it
offers to the customers. In comparison with competitors pricing, Telstra charge for medium
plan at $50 per month offering unlimited text and calls with 15 GB data. On the same pillar,
Vodafone is charging for the same bundle at $55 per month considering its varieties in
services and broad area network.
One of the problems related to pricing element of Vodafone Australia has been found
where the company was admitted to misleading customers in relation with pricing. In details,

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Vodafone was paid commission for the ringtones sales, games and digital content by third
parties and with the straight billing service enabled by default customer accounts. As per
Australian Competition and Consumer Commission (ACCC), purchases were occurring with
as little as one or two clicks. Hence, these are all about pricing strategy of Vodafone.
Service Blueprint
The service blueprint of Vodafone includes its service encounter model in association
with various service actions such as customer actions, physical evidence, on stage actions,
backstage actions, support processes and potential failure points. All the process and
interactions are linked to each other and help in customer satisfaction at various outlooks
(Hewing, 2014). The process starts with the customer actions when the customer enters into
store premises and perceives various physical evidence including token machines, reception
area and SIM allotment counters. At next stage, the front stage interaction in the service
delivery stands out with open interaction between employees of Vodafone and the customer.
This interaction may include request and demand by the staff for the required document,
making out several calls for verification and paying the prescribed amount (if any) in relation
to SIM activation. This line of interaction signifies a vital point in the complete service
delivery model and therefore required to be managed effectively by the employees and
management.
The backstage interaction in the Vodafone service delivery and encounter called as
invisible interaction that includes management, employees and systems. This sort of
interaction includes activities such as taking out the customer documents in operation room
for verification and storing purposes. All the parts of this activity and interaction are handled
and managed by internal staff in Vodafone and so here, there is no interaction between staff
and customer.

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LINE OF INTERACTION
LINE OF VISIBILITY
LINE OF INTERNAL INTERACTION
Physical
Evidence
Customer
Actions
Back- Stage
Employee
Contact
On-Stage
Employee
Contact
Support
Processes
Enter
the area Waiting
in
Queue
Takes
Token
Receives
activation
call later on
Give
Docu
ments
and
Exit
Visit to
sales
person
Sims
Allotment
Counters
Token
Machine Reception
Parking
Area
Security Guard
Greeting Serve
beverages
Document
taken to
operation room
Document
Verification
SIM number
activation
Maintaining Record
of No of SIM Allotted
Give SIM
and ask for
required
document
Makes
Activation
call
Customer care report

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Potential fail points
There are some potential fail point and areas also in the service blueprint of Vodafone
and it has been shown with the help of cause and effect diagram. These fail points are named
as F1, F2 and F3. Long waiting time is the first (F1) fail point results from long queue
waiting time mainly in peak hours. F1 is one of the biggest influence bottlenecks leaves the
customer highly frustrated and unsatisfied. F2 fail point can result from unexpected demand
of customers which employees are not answerable. For instance, customer may ask for
employee to compare with the particular company plan with its competitor. Hence, this area
of failure can be called as a risky situation for the organisation as customers will not get the
appropriate services which they have planned for. The next potential fails point (F3) can be
related to any sort of technical fault in system such as server down, stuck OS in computers
and so on. Considering all, these sort of failures can put company in serious troubles. The
Caus
e Unsatisfied
Customer
LONG
WAITING
TIME
THE SERVICE
DEMAND BY
CUSTOMER IS
NOT
ANSWERABLE
DELAY IN
PROCEDURE
DUE TO ANY
TECHNICAL
FAULT
PEAK HOURS
UNEXPECTED
DEMAND
PROCEDURE
F2
F1
F3

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service encounter blueprint delivers a holistic vision of the service provider to notice a
complete service process and its unified arrangement (Bitner, Ostrom & Morgan, 2008).
Customer Service Strategy
Vodafone Australia looks to take pivotal role in the digital media and thus the
company is refocusing on its all customers and through all channels. For instance, the
company is increasing its strategic partnership to present better products and services in front
of the customers. Customers experience required to be treated like any long term integrated
business strategy and its needs to be visionary (Kavaratzis, 2009). The company also has
undertaken timely service quality and recovery strategy as a commitment to greater customer
satisfaction.
In relation to in-store customer service strategy, the management and employees of
Vodafone meet all necessary expectations while providing high quality response and services.
In front stage interaction, the customer when arriving at store initially welcomed by security
guard. Later on, when customer waits in the queue, it has been served with water and
beverages and also the areas have table containing various magazines and books that can
make customer busy. The staff or employee, later on, cater employee with the subsequent
token number generated from the machine and thus there is no partiality done on any basis.
This shows that Vodafone is linking customer experience with the overall business
strategy and vision stating company ambition to contribute to sustainable living by delivering
innovative services and connectivity to the customers. The company also focuses in various
other areas connected with superior customer experience such as process excellence,
leadership and synchronising organisation objective with customer experience. Hence, this is
all about customer service strategy of Vodafone.