Comprehensive Marketing Report: Vodafone Malta's Strategic Analysis

This report provides a comprehensive marketing analysis of Vodafone Malta, a leading telecommunications company. It begins with an executive summary highlighting the importance of marketing management in achieving business goals, focusing on Vodafone Malta's market position and strategies. The introduction emphasizes the crucial role of marketing in business growth and the need for adapting to changing customer needs. The main body delves into Vodafone Malta's background, corporate strategy, and financial performance, including a marketing audit using SWOT, PESTLE, and Porter's Five Forces models. The report examines the company's strengths, weaknesses, opportunities, and threats, alongside competitor analysis and communication plans. The analysis covers market segmentation, target markets, and the competitive environment. The report concludes by summarizing the key findings and recommendations for Vodafone Malta's future marketing efforts. This report provides valuable insights into Vodafone's marketing strategies and competitive positioning within the telecommunications industry.

Marketing
management

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY ..................................................................................................................................2
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMARY
This project is summarising that every business organisation has to focuses to managing
all marketing activities and functions so as to reach customers and recognise their needs and
wants. Marketing managements aids in improving brand image and market position of the
company. In addition, the report is based on Vodafone Malta, which is the second leading
telecommunication industry; here the firm has captured approximately 20%. Marketing strategies
of the company is focused on reducing costs and raising production level so as to achieve higher
growth and success in external environment. Apart from this, in order to conduct a marketing
audit managers can go towards SWOT, PESTLE and Porter's 5 forces model analysis. It would
assistive in demonstrating all those aspects which can hinder firm's marketing position in an
adverse manner in future. The assignment defines that effective implementation of marketing
strategies require evaluation of marketing mix elements.
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INTRODUCTION
Marketing plays a crucial role in growth and success of every business organization. It
helps companies to gain high competitive advantage in a certain time period. Marketing is a set
of institutions and procedure to create, transfer and communicate offerings which have value for
buyers, partners and society. Therefore, it is essential for business organizations to create an
efficient marketing strategy so as to get strong understanding of own business as well as market
in that they operate. Along with this, marketing also fosters healthy competition in marketplace;
its efforts get the word out on pricing of products (Peter and Donnelly, 2011). It is an impulsive
concept because due to changes in customers needs and wants, business organisations also have
to modify their products and services. These variations also put an impact in distribution and
production. Effective marketing also liable for vitality and advancement of an economy as if
customers get know about new products and services they will consume them. This contribution
makes the economic condition of the country more stable and strong. The present report is based
upon Vodafone, it is one of the leading mobile operator of Malta and a subsidiary firm of UK's
multinational telecommunications provider Vodafone. Apart from this, the report will be
describe marketing position of the company in Malta. A marketing audit will be conducted as it
would helps for potential growth and success of the firm. Furthermore, in order to implement
marketing strategy it is necessary for Vodafone Ltd., to defined various marketing mix actions so
as to gain high competitive edge.
MAIN BODY
Marketing management – It is the process of planning and implementing the pricing,
conception, promotion and conception of goods and services. It also involves creation and
exchange different ideas which aims is to target groups and then satisfying their needs and wants
in the best possible manner. Marketing management works a brand board of management; it is
related with direction of meaningful activities through which firms can easily achieve their goals
and objectives (Wilson and Gilligan, 2012). Every business organisation has three common
marketing goals that it must achieve, such as: -
 Satisfying of buyers' needs and wants
 Raising sales volume Enhancement in organisational profitability.
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Background statement of the company
In this competitive environment, there are various telecommunication companies are
established. In which, Vodafone Malta is become largest mobile operator company over the
nation in terms of number of customers. Basically, the corporate association provides full range
of voice services and data and SMS facilities over 2G, 3G, 4G and 4G+ networks. Its
headquarters is in Luqa and the main products of the company are – mobile phones and ancillary
products. There are over 350 employees are currently working in Vodafone Ltd. and presently
trades as a telecell limited in Malta. Here, the first mobile call was made by the company in 1990
whereas very first GSM call was made in 1997.
Apart from this, the main objective of the company to differentiate itself from
competitors by supplying a leading network, global reach, level, leveraging the benefits at large
and international brand (Leonidou and Leonidou, 2011). Vodafone has its own stores in 26
nations and partner networks in other 50 countries. At global level, the market capitalisation of
the company is approximately is £52.5 billion. The refereed telecom industry adopts licenses and
spectrum in order to use radio frequencies so as to effectively deliver mobile services to
customers. The IT department of Vodafone suppliers customers' relationship capabilities, data
centres, online resources, billing services. It provides distinct communication and networking
services, including mobile, cloud, video content, and hosting, and Internet; the firm provides
such facilities by its network of approximately 300,000 base station sites.
The vision statement of the company, is to become market leader in telecommunication
industry over the globe. In order to accomplish its vision Vodafone focuses on delivering many
advance services to its customers so as to attain and retain for long term period.
 On the other hand, Vodafone offices are connected mobile and service line
communications which are formulated so as to fulfil customers' communication neds in
an effective manner.
 Vodafone Live! relates with multimedia or communication solutions.
 Vodafone 3G services associated with 3G networks so as to provide fast data transferable
services to customers, like downloading, instant messaging and exchanging messaging.
 Vodafone mobile applications and connect data cards provides secure access to business
systems, i.e. corporate applications, emails, company intranet and internet for target and
potential buyers.
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On the other hand, Vodafone Ltd., is managed by two geographical areas – EMPA
(Eastern Europe, Middle east, Africa and Asia, Pacific and Affiliates). In Europe, Vodafone's
mobile subsidiaries located in Spain, Germany, UK whereas its joint venture is in Italy. Other
subsidiaries are Albania, Ireland, Greece, Malta, Netherlands etc.
Malta is one of the primary source of company's growth, it generates 65% revenue for the
whole economy. For market expansion, Vodafone is trying to enter into new emerging markets
by highly contributing in market portfolio. Malta's government is also emphasised on
Investments in telecom sectors has been maintained by several legal authorities. In late 2017 the
company announced plans to invest €100 million over five years, partly in LTE and fibre
infrastructure as also in upgrading capacity on submarine cables.
Vodafone Malta emphasis on mobile and enterprise market, its new feature will add
broadband and cable TV facilities to the armoury. This move is a biggest challenge for current
market incumbents; the company currently holds highest market share in Malta; it puts stronger
in long term. when converged services are come into existence in UK, it would seem that the
Maltese are far ahead of them. As per the Malta Communications Authority, in the fourth
quarter of 2016, 78.7% of fixed broadband connections and 68.4% of postpaid fixed lines were
sold in a bundle which was greatly beneficial for the country as it helps in improving economic
condition of the country.
Corporate strategy of Vodafone for selling propositions: -
 Driven up overall operational performance by enhancing values of customers and cost
reduction.
 Spread data services and high value consumers as priority for effective communication
(Michaelidou, Siamagka and Christodoulides, 2011).
 Expanding new emerging markets
 Strengthening financial position – generating $5-6 billion as a free cash flow so as to
support investment for upcoming growth.
Current financial position of Vodafone Malta shows the transaction of worth €208
million in respect of approvals from competition authorities. Present share holding position of
Malta present 51% ownership in respect of newly merged company and Vodafone Europe
contains the remaining share of 49%. this was the deal done in second half of 2017.
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Additionally, Vodafone reports according to the International financial reporting
standards (IFRS). Financial performance has been as follows: -
Year ended
31st march
Turnover £m Profit before
tax £m
Profit for the
year £m
Basic eps
(pence)
Proportionate
customers (m)
2017 47,631 2,792 (6,297) (7.83) (7.83)
2016 40,973 (449) (4,024) (15.08) 462.0
2015 42,227 1,095 5,917 21.53 446.0
2014 38,346 (5,270) 59,420 42.10 434.0
2013 44,445 3,255 673 0.87 404.0
Marketing audit of Vodafone Malta: -
In this over dynamic environment, it is essential for business associations to conduct a
marketing audit so as to analyse current marketing situation and recent trends. It helps company
to recognise needs and wants of customers and helps in accomplishment of high competitive
edge. A marketing audit is a systematic, periodic and comprehensive evaluation of firm's
marketing. It is created in order to measure marketing activities in context of marketing
conditions; and it is used in future planning (Grönroos, 2011). Along with this, marketing audit
captures internal and external circumstances that are being faced by the organisation and
throughout a review a can be done of marketing strategies, processes, goals and systems.
Therefore, marketing audit is a useful tools which use for getting touch with brand and products
and can also re-focus on trading efforts. Vodafone uses this feature so as to align its goals and
objectives with working activities.
While conducting a marketing audit, business organisations have to follow these stages
which are stages as under: -
Overview of the company – There is already mentioned above that Vodafone Ltd., is one
of the fastest growing telecommunication industry over the world. In Malta, it has been captured
almost 40% market share and the overall economic contribution is 65%. Although, the main
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objective of Vodafone is to provide effective networking and communication facilities to
customers.
Marketing goals and objectives – The mission statement of Vodafone Malta is to be
communication leader by providing good network facilities to customers. Apart from this, the
vision statement of the company is to lead industry in responding to public concerns like mobile
phones and health by demonstrating leading edge practices and encouraging others to follow
(Ling-Yee, 2011).
Target market segmentation -
Demographics Age > 13 to 65
Income > small, middle and higher level
Urban, semi-urban and rural areas.
Vodafone's targeting
strategy
Value added services and discounts – to target home makers and
professionals.
B2C market – recharge plans starting from $10 and going up to
$1000. Data plans are also available from lowest to higher rates.
B2C market – Recently launched plans for SMEs and large scale
organisations which can be tailored as per the market needs.
Competitors analysis – More then 15 players in market
T-Mobile, Go, Orange itself capture 75% market share.
The list of major competitors of Vodafone Malta is stated as under: -
Vodafone 18.6%
Go 23.58%
T-Mobile 15.4%
Orange 7.505
Melita 8.06%
Outline a communication plan – At last, a communication plan has to be formulate
which signifies how company will execute the marketing audit plan in business environment. In
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this relation, Vodafone Malta acquire different strategies and techniques that aids firm to
measure the internal and external environmental factors which can affect firm's marketing
position in future.
There are different techniques of marketing audit, such as-
 SWOT analysis
 PESTLE analysis
 Porter's 5 forces model
With the assistance of such tools, business organisations can easily attain their goals and
objectives in a certain time period. The brief description of these stated as under: -
SWOT analysis of Vodafone Malta: -
STRENGTHS
 Globally re-owned brand name
 Great geographically exposure
 Gained economies of scale due to its
size
 highly innovative company
 integration of subsidiaries under
Vodafone umbrella
 High level of network infrastructure
 Leading mobile company in Malta
WEAKNESSES
 Mainly concentrated in Europe and
Asian countries
 Weak in fixed area network
 Lack of rural network wireless access
OPPORTUNITIES
 Raising the 4G coverage
Tao into emerging markets
Reduce costs through efficiency – offer better
prices
Invest in R&D and innovate new products
Expand towards non-mobile services
THREATS
 Market situation in Malta, UK etc.
 Uncertainty of regulatory climate
 Enhancing competition
 Increasing usage of Teleconferences,
Skype, iMessage, Whatsup.
PESTLE analysis of Vodafone in Malta
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PESTLE analysis is used for scanning external environment affecting Vodafone in Malta.
These are out of control for company and must be consider are threats and opportunities. The
same are explained below: Political Factor- it affect Vodafone by government policies changes in these factor affect
the respective company. Government gives some industry specific laws related to
telecommunication services. State members of EU now implemented the EU regulatory
framework for the communication sector, it was adopted by them in 2002. the same
regulatory framework aim is improving competition in communication market and
market forces or factors don't guaranteed for improvement in functioning of single
market but innovation and creation through government policies help in creating interest
or attract customer to a particular communication brand (Navarro and et. al., 2011). New
roaming rate, call charges, per message rate, data charges are should be attractive so that
it help company in attracting customer. In February 2006, European commission
proposed new EU roaming regulation in which Vodafone reduce it 70% charges which
customer have to pay for calling abroad this proposal implemented on 30 June 2007. All
these changes are made in company with the help of government approval for new
regulations. Economic Factor- This factor shows that how Vodafone in Malta added value to
economy. Common factor for measuring a nation's economy is gross domestic product
(GDP) if there is higher GDP Malta income is high and people living in this can easily
adopt latest updated technologies. Changes in economic factors like inflation rate, global
economic issues (financial crisis) and recession has decreased amount of money available
for customers in market this results in reduction in Vodafone's revenue . Since Vodafone
has its operation all around the world and having significant amount of money flow in
other currencies respective country domestic currency. It has major inflows in Euro
(EUR), India (INR) and South Africa Rand (ZAR). More the Malta will develop
Vodafone have higher chance to expand its business. Social Factor- It deals with external environment from social point of view also.
Relevant social factor for Vodafone are: disposable income, population growth in rising
market and urbanization. The amount customer spend on communication services are part
of their disposable income. If the consumer have higher income growth than this bring
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opportunities for Vodafone to earn more revenue. Population growth also affect
Vodafone in different manners because uses of mobile phone is increasing day by day
every individual person want their personal phones. This help in raising subscription of
SIM cards and mobile phones. SIM cards, services charges and phones becoming cheaper
in developing as well as in developed country (Foxall, 2014). World population fastest
expansion during 45 years was reported particularly in Africa, Latin America and parts of
Asia. Urban area are increasing their population this is the cause of more and more use of
communication channel. Developed are are the first where networks are made available.
For come profit and development Vodafone has to cover some rural area so that their
own company earn more revenue and increase their customers also. In some countries
data services are available only for the urban area because of these things rural area are
lacking behind. Their is large no. of people living in rural area if Vodafone increase their
services and provide to these people also then it increase its network in large amount. Technological factor- improvement in existing technologies increase speed of Vodafone
networks and performance of mobile phones increase constantly. Latest technologies help
in transfer voice and data faster or with better quality. On the other hand, development of
new technology help in economic growth, job creation and increase quality of products.
Government budget appropriates or outlays for research and development there is some
amount allocated to R&D activities. Better technologies help in future and present
development of Vodafone at large scale. Legal factors – Vodafone has maintained some legal boundaries for themselves and
employees working with the company. Malta have legal factor in the same company are
customer law, discrimination law, copyright law, health and safety law, employment law,
fraud law. Legal factors are not in the hand of the respective given company these laws
are given by government only they have control on these rules and regulations (Miquel-
Romero, Caplliure-Giner and Adame-Sánchez, 2014). Environmental factors – Working condition of the company should be good so that they
can easily make people part of their Vodafone family. It is a company with highly
dynamic nature. External and internal factors play a vital role in organisation success.
With the rise of globalisation in respective given company people become more ethical
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and ethic oriented. Customer always want from their brand to work for betterment of
society as whole.
Porter's 5 forces model: -
Another technique of marketing audit is Porter's 5 forces model which is mostly used by
firms for industry analysis. It derives five aspects which are stated as under: -
(Source: MARKETING THEORIES - EXPLAINING PORTERS FIVE FORCES, 2018) Buyers power – Customers are the prime factor that are liable for recent developments in
mobile service industry. In emerging markets, there is enlargement of mobile subscribers
in developing economics like Malta. In 2011 to 2015, annual rates of mobile users has
been increased by 25% to 35%. As if the number is rapidly increasing then they put huge
impact on sales and profitability of Vodafone. Threats of new entrants – Due to globalisation, there are entered different new rivals in
telecommunication industry (Chernev, 2014). But in Malta, telecommunication industry
is highly regulated and preserved by barriers; it is essentials for operators to pay high
initial fixed costs. At the same time, retailers are also coming through taking the concept
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Illustration 1: Porter's 5 forces model