Critical Assessment of Vodafone's Marketing Challenges and Strategies

This report provides a critical assessment of the marketing challenges facing Vodafone, a leading telecommunications brand. It begins with an executive summary highlighting Vodafone's global presence and market position. The report then delves into a detailed analysis of Vodafone's issues, including high prices, network problems, customer service inadequacies, market competition, legal hurdles, and branding concerns. Task 1 provides a thorough examination of these challenges. Task 2 focuses on the application of Segmentation, Targeting, and Positioning (STP) concepts to Vodafone's marketing strategy, offering a critical evaluation of their current approach. The report assesses Vodafone's STP strategies and identifies areas for improvement. Finally, Task 3 offers strategic recommendations for Vodafone to overcome these challenges and enhance its marketing effectiveness. The report concludes with a summary of key findings and recommendations, supported by references and appendices including SWOT analysis, Five Forces, and Ansoff Matrix.

A critical assessment of the marketing challenges facing Vodafone and recommendations for
development on their approach to Segmentation, Targeting and Positioning
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EXECUTIVE SUMMARY
Vodafone Group Plc is one of leading telecommunication brand which operates its business
from headquartered in London. Organization was founded in year 1991 in United Kingdom. Company
is considered as a second largest mobile telecommunication firm in the world. Number of customers
are also increasing day by day which enhances the business opportunities of Vodafone. Organisation
operates its networks in various nations and has partners in over 40 nations. Company also manages
the wide range of employees from diverse cultures. As per the annual report of Vodafone 92,812
employees are working within Vodafone. In the support of this, it can be stated that the Vodafone is
considered as a third largest mobile telecommunication in the UK. The key competitors of Vodafone in
the UK are EE and O2. In the annual report of Vodafone UK it has been stated that it is consisted of
19.5 million subscribers. It covers almost 500 stores in all across the UK. In this report the learning
has been focused on marketing concepts. Marketing can be defined as combination of various
strategies and tactics which can improve the sales of organisation in order to meet organisational
objectives. In order to have effective knowledge about marketing learning, it focuses on work culture
of the Vodafone. It has been spotted that the company is operating its business in diversified
geographical portfolio. Organization also holds high level of brand image which provide better
opportunities to business. However, in respect of Market penetration, it can be stated that the
management of Vodafone can focus on enhancing its market share so that organizational goals can
be accomplished. It has also been spotted that, it is necessary for business to have better market
share as compared to its competitors like O2 so that business can have impressive success.
Moreover, it is necessary for the management of Vodafone to have proper allocation of
resources in order to meet the objectives. It is beneficial for better relationship with customers so that
organization can meet its objectives effectively. Other than this, branding is one of the critical factors
in marketing action. It can be referred as combination of corporate principles which facilitates in
meeting expectations of customers and assist in building long lasting relationships.
Furthermore, in order to have effective STP process, the management of Vodafone need to
focus on market research. It provides enhanced level of information regarding diverse factors which is
related with market conditions. Organization can emphasize on advancement in products and services
in order to have better success. It is necessary for management to bring differentiation in services so
that need of psycho-graphic can be met in an enhanced manner. Company can also use various
communication channels to have effective promotion and positioning of products and services.
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TABLE OF CONTENTS
INTRODUCTION..................................................................................................................4
TASK 1 Analysis and Issues.................................................................................................4
Vodafone issues...............................................................................................................4
High price......................................................................................................................... 4
Network issue...................................................................................................................4
Customer service............................................................................................................. 5
Market issues................................................................................................................... 5
Legal issues..................................................................................................................... 5
Branding and Issues........................................................................................................ 5
TASK 2 STP and Critical assessment..................................................................................6
2.1 Critical evaluation of segmentation, targeting and positioning concept......................6
2.2 Critical assessment of Vodafone STP........................................................................7
TASK 3 Recommendations.................................................................................................. 8
3.1 Strategic recommendations........................................................................................8
CONCLUSION..................................................................................................................... 9
REFERENCES...................................................................................................................10
APPENDIX......................................................................................................................... 12
SWOT analysis...............................................................................................................12
Five force....................................................................................................................... 12
Ansoff Matrix.................................................................................................................. 13
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INTRODUCTION
Marketing can be referred as a combination of various strategies and tactics which can
improve sales of organisation in order to meet the organisational objectives. In order to create better
marketing of products, it is necessary for business organisations to focus on improving its marketing
strategy. Due to this, management must ensure about effective allocation of resource and tactics in
order to design an effective action plan (Aljukhadar, 2011). With the help of improved focus on
marketing principles, management can easily attain better competitive advantage.
In this report, learning will focus on work culture of Vodafone to understand the concepts of
market and marketing. It will focus on marketing analysis concepts such as: Swot and Pestle, etc in
order to attain information about market conditions. It will also stress on conceptualization of
segmentation, targeting and positioning. It will facilitate the management of Vodafone to design
effective strategies which can meet organisational goals in a better way. Furthermore, it will also focus
on various strategic factors and issues which can impact the overall performance of the company. It
will also include recommendations to overcome the issues and leading business to impressive
success.
TASK 1 ANALYSIS AND ISSUES
1.1 Vodafone issues
In order to have better success and effective marketing audit the management of Vodafone
has focused on number of activities and analysed that the business is facing diversified issues.
Company is facing various issues which impacts business in negative way such as Vodafone have
lack of presence in UK. In order to overcome this issue management must improve its existing
diversified geographic portfolio (Aljukhadar, 2011). Another key issue that business organisation is
facing regarding lack of presence in Latin America and many nations of Africa. Some time company
also faces the issues regarding diversified needs of customers. Every person or citizen of UK has
different perception which also impacts their needs and operational activities of Vodafone.
1.2 High price
In the support of this, it can be stated that the Vodafone is also facing some critical issues
regarding high prices of its telecommunication services. In current market conditions the Vodafone is
offering its services at high pricing as compared to other competitors such as O2 and EE. This kind of
practice is impacting the overall operations and success of business organisation (Cao, 2005).
Organisation has adopted premium pricing strategy which does not seem suitable for the current
market conditions. It creates some conflicts for the organisation and impacts overall development.
1.3 Network issue
It has also been spotted that the company also faces number of issues regarding network in
UK. Already installed networks are not working properly which impacts its telecommunication services
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in negative manner and reduce the overall success growth (Fourie, 2012). People are not able to
connect call in single dial which creates miscommunication issue and impacts the customer base of
Vodafone. Old installed networks are also enhancing the radiation pollution within UK which also
creates some other issues for management of Vodafone.
1.4 Customer service
Telecommunication industry also requires high level of support from customer executives in
order to boost the operational activities. In the analysis it has been spotted that the Vodafone currently
focusing on Business to Customer model. Company is having very limited number of service centre in
whole UK which cut down effectiveness of customer service and also impacts the perception of
customers in negative manner. Customer service executives are not providing proper response on
time which also influences the overall development (Gnizy, 2014). As per the annual customer report,
it can be said that the 79 % of customers are not ready to buy the products and services. This clearly
indicates that the customers of Vodafone are not satisfied with the products and services.
1.5 Market issues
In the recent past years, it has been witnessed that increased level of domestic competitors is
also impacting operations of Vodafone. Moreover, the high degree of threat from its competitors is
also impacting the quality of telecommunication services which is not beneficial for business
organisation. It has been spotted that the lack of differentiation in services is also forcing its customers
to switch to any other rival in the market who provides same kind of services at low cost. Customers
also accessing the services like video conferencing and other communication mediums like Skype,
yahoo messenger, email, etc (Layton, 2011). which is impacts the services of Vodafone. It is one of
issue that substitute products and services are also impacting the development of Vodafone.
1.6 Legal issues
It has been spotted that the telecommunication industry demands number of legal
requirements which impacts the overall operations of business (Rangaswamy, 2013). For example,
the company is looking forward to expand business and install new network towers. But in this context
it is necessary for management of Vodafone to take permission and license from governance of UK in
order to install new towers. It delays the operational activities of Vodafone and impact the overall
development in negative manner.
1.7 Branding and Issues
It is all about combination of various marketing tactics in order to meet the organisational
objectives and generating better awareness among population as compared to competitors. In this, it
is necessary for the management of Vodafone to maintain proper allocation of resources. It helps in
building better relationship with customers to fulfil the objectives of the organization. In other aspect, it
can be stated that it is a combination of corporate principles which facilitate in meeting expectations of
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customers and building a long lasting relationship (Hjort, 2013). There are huge numbers of marketing
issues which can impact the overall process of branding.
It is necessary for the management of Vodafone to ensure that marketing activities properly
allocate financial resources so that company can gain appropriate profit. Improper allocation of
finance and less profit have impact on the branding actions. Due to this, it is necessary for the firm to
focus on economic conditions as it plays a key role in pricing strategy of Vodafone (Layton, 2011).
Company must focus on economic condition as it has important role in making strategies and pricing
scheme.
Other than this, it is also necessary for the management of Vodafone to enhance its knowledge
regarding their competitors so that management can design better strategies to attain competitive
advantage. Moreover, it is also necessary for business organisation to focus on staff needs and skills
to create proper branding. It has been spotted that lack of skills in employees can influence operations
of the organisation (Oudan, 2007). Therefore, it is required for organisation to overcome this issue for
getting success and taking more opportunities in the marketing.
Moreover, another issue that management of Vodafone is facing in branding is related to
inconsistency of cross channel. For that, it is necessary for the management to understand
differences in culture and perception of all users so that they can select appropriate channel for
advertising as per the customer needs (Rangaswamy, 2013). If management will not have proper
knowledge regarding diversification of customer perception then business cannot easily overcome
these issues. Appropriate selection of communication channel is essential because it impact on the
marketing actions.
TASK 2 STP AND CRITICAL ASSESSMENT
2.1 Critical evaluation of segmentation, targeting and positioning concept
Marketing strategy is considered as a combination of various tactics which organisation uses in
order to conduct better operations and meeting the organisational goals. In support of this, Blankson
(2007) has stated that marketing strategy is a fundamental approach which allows organisation to
meet objectives and increase sales for accomplishing sustainable competitive advantage. It is one of
the most significant approaches which facilitates firm to acquire enhanced level of sales and helps in
attaining better competitive advantage (Blankson, 2007). As per the view of Gnizy (2014), marketing
strategy can also be refereed as a collective result of various operational actions which assist the
organisational members in maintaining balance between all operations. It helps in communication,
delivery of services, customers reach, etc.
In support of this, Terpstra (2000) has also asserted that marketing strategy is classified in
various sections for maintaining proper balance within the organisation. Segmentation, targeting and
positioning are critical sections of marketing strategy and plays key roles in accomplishing
organisational goals (Terpstra, 2000). It has been witnessed that the success of business depends on
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the effectiveness of market research because it provides better information about market needs and
customer perception. This kind of information is beneficial for better designing of segmentation,
targeting and positioning.
According to Graham (2008) with an improved focus on segmentation, targeting and
positioning, the management can enhance its profit and lead business to impressive success. In
support of this, it can be stated that STP combines diversified actions as per the consideration of
structured plan. It will provide better effectiveness to development and marketing actions (Graham,
2008).
In other aspect, it can be stated that with an improved focus on STP, the management of
Vodafone can have effective accomplishment of targeted customers’ needs. Kotler (2009) has stated
that the segmentation is a form of market strategy which has great level of involvement in actions
which divide a broad target market in various sub sections. It helps the management of business
organisation to manage number of customer needs in a better way. In this, management divide
customers in sections as per needs, interest, priorities, etc.
Moreover, Prajapati (2011) has critically said that the target market is all about a group of users
which has been decided by the organisation to meet its marketing aim or efforts. In other aspect, it
can be said that in targeting the organisation decides the group of customers to whom they will target
(Kotler, 2009). It is also considered as one of the most critical aspect of marketing strategy. In the
support of STP the Prajapati (2011) has contended that market positioning is also significant section
of marketing concept which provides blueprint of actions in order to meet needs of market. It also
provides information about actions which can be adopted by firm to promote its products and services
within the market. In this, marketing department makes efforts to create better brand image among
targeted audience.
As per the view of Prajapati (2011) it can be said that STP process provides number of
benefits to the organisation and helps in meeting organisational goals in more effective manner. In
support of this, it can be stated that it enhances opportunities in the competitive market. With an
improved focus on segmentation the organisation can effectively use various resources. It also
facilitates in creating better value for target market and assist in effective accomplishment of
organisational gaols (Prajapati, 2011). Moreover, it also provides better opportunity to promote
products and services to targeted audience which further helps the business to earn more income.
With an improved focus on STP process, the marketing actions standards can be maintained in a
better way. Bradley (2013) has explained that positioning provides information about key factors which
can create better brand image in the competitive market. With the help of targeting, the management
can easily decide to which group of market they will target in order to meet organisational goals
(Bradley, 2013).
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2.2 Critical assessment of Vodafone STP
As per the view of Graham (2008), in order to have effective marketing strategy, it is necessary
for the management of Vodafone to focus on segmentation, targeting and positioning. It will enhance
business opportunities and facilitate firm to meet objectives in a better way. It has been spotted by
Kotler (2009) that in order to have effective STP process; the management of Vodafone is required to
focus on market research. It will provide information about various factors which is related to market
(Kotler, 2005). Marketing executives can have better market research by focusing on Pest analysis,
porter five forces, etc. It has been witnessed that in market research telecommunication sector have
opportunities which enhances the success ratio of Vodafone. Moreover, Kotler (2009) has argued that
the management of Vodafone can introduce number of services and improvement in products so that
business can have better success.
In this respect, it has also been noticed by Prajapati (2011) that there are number of
competitors who are present in market so it is necessary for the management to have differentiation in
its services and products so that business objectives can be met effectively (Kotler, 2005). As per the
market research it can be said that the management of Vodafone can focus on psycho-graphic
segmentation. In this, management will target its customers on the basis of lifestyle.
It is necessary for the management to properly analyse the activities, interest and opinion. 4G
and internet services are the most common factors of industry which are popular in young age people
(Bradley, 2013). This clearly indicates that the young age people and college students will be target
market of the business. Bradley (2013) has stated that, it will enhance the business opportunities and
provide advancement in sales. In order to have effective targeting, it is necessary for management of
Vodafone to focus on differentiate target strategy. In this respect, the management of Vodafone can
introduce some unique services or products. Terpstra (2000) has also asserted that it will provide
better opportunities to firm with a help of unique products and services.
Moreover, Blankson (2007) has said that effective promotion and positioning of products and
services is also necessary in order to meet organisational objectives. In this, organisation will use
number of communication and advertising channels to boost sales and it also creates awareness
about product (Prajapati, 2011). Company can focus on online media and print media to have effective
positioning of products and services.
TASK 3 RECOMMENDATIONS
3.1 Strategic recommendations
Revision of pricing strategy
It is necessary for the management of Vodafone to focus on forming strategies so that
organisational objectives can be accomplished in a better way. It has been spotted that the key motive
of business is to provide high quality of services at very low cost. In this respect, the company can
focus on competitive pricing strategy (Improving Organizational Performance and Productivity, 2013).
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It will allow management to decide price of products and services as per market conditions and pricing
of the rivals products.
By understanding market needs and innovation
Improved level of information is beneficial for effective designing of STP and attained better
competitive advantage. It will also provide better opportunities to STP process by assisting in effective
segmentation of product. It will assist in effective accomplishment of goals and provide opportunities
to the company. Vodafone can focus on questionnaire and surveys to gather information about
product and competitors which will facilitate to meet the objective regarding better market share and
sales. Moreover, it is also necessary for business to bring some improvements in marketing strategy
(Graham, 2008). Company can bring changes in its marketing strategy to have better improvements.
It will provide various benefits to the firm in form of advanced brand image.
Other than this, management of Vodafone can also have improvement in investment ratio
regarding on market research in order to meet the organisational goals. It will provide better
information about market conditions and factors which can influence the overall performance. With an
better understanding of market conditions business firm can design effective STP policies. It is also
necessary for management to focus on effective use of communication tools so that message can be
conveyed in a better way (Kotler, 2009). Improvement in communication process will build better
relationship with customers and market professionals which will render information regarding changes
in market. Advanced level of customer relation is also beneficial for positioning.
By using social media tools
Social media networks and blogs can be used for improvement in communication system.
Moreover, telecommunication calls can also be used to take feedbacks from customers who will
provide beneficial information for STP process. Company can provide various kinds of training to
employees that can provide better information about cross cultural factors and other subjects of
telecom industry. It will facilitate the management of Vodafone to overcome diversified issue in an
effective manner. Issues and conflicts which influence STP process can be overcome by improved
level of employees skills.
By improved focus on key principles of marketing
Furthermore, the launch of loyalty club can also improve the company customer base.
Organisation can provide discounts to loyalty club members on the purchase of premium services and
products. In order to attract more customers the management of Vodafone must promote its products
and events through using bigger scale of media. They can also concern various experts to amend the
use of media channels such as newspapers and magazines. It will also assist in effective targeting
and positioning of product. Company can also focus on sponsorship of diverse national events which
can provide concern towards environmental aspects. It will also impact brand image in positive
manner and lead business to effective STP.
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CONCLUSION
As per the above study it can be said that, the marketing concepts plays a key role in success
of every organisation. It provides enhanced level of information regarding segmentation, targeting and
positioning. It has been identified that with an improved focus on market conditions and differentiation
in services, the management of Vodafone can easily accomplish goals. In order to have better
success, the management of Vodafone can focus on various strategic changes in operations and its
marketing activities. Other than this, management of Vodafone can also have improvement in
investment ratio regarding on market research in order to meet the organisational goals. It will provide
better information about market conditions and factors which can influence the overall performance.
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