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Executive Summary Everything Everywhere is the UK communication company that has a leading position with more than 27 million customers. It operates together with Orange and T-Mobile carriers in the UK. In the last years, company experienced decline in its subscriber base and decreasing level of customer satisfaction. This report will focus on providing recommendation to achieve marketing objectives, which include increasing customer base and improving the company profitability. In the first part of report the marketing strategy of EE is investigated and evaluated using PESTLE and SWOT analyses. It has been identified that mobile telecommunication industry is highly affected by technological changes in mobile industry and socio-cultural factors in people’s lifestyle. Furthermore, the company has some strong points, including the highest speed of internet data service comparing with other rivals and large number of retail stores that can help it with future marketing strategy. Within STP concept, EE has adapted differentiation targeting strategy, targeting city-based business such as bank and financial organizations and early- adapters of 4G services. The organization position itself alongside existing Orange and T-Mobile brands as a premium one. In the second part of the report, some recommendation covering changes in marketing strategy in order to resolve the current problems are provided. As EE provide the service, marketing tactics and strategic within 7P’s has been used. It has been

Everything Everywhere - marketing strategy and mix

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Executive Summary

Everything Everywhere is the UK communication company that has

a leading position with more than 27 million customers. It

operates together with Orange and T-Mobile carriers in the UK.

In the last years, company experienced decline in its

subscriber base and decreasing level of customer satisfaction.

This report will focus on providing recommendation to achieve

marketing objectives, which include increasing customer base

and improving the company profitability.

In the first part of report the marketing strategy of EE is

investigated and evaluated using PESTLE and SWOT analyses. It

has been identified that mobile telecommunication industry is

highly affected by technological changes in mobile industry

and socio-cultural factors in people’s lifestyle. Furthermore,

the company has some strong points, including the highest

speed of internet data service comparing with other rivals and

large number of retail stores that can help it with future

marketing strategy. Within STP concept, EE has adapted

differentiation targeting strategy, targeting city-based

business such as bank and financial organizations and early-

adapters of 4G services. The organization position itself

alongside existing Orange and T-Mobile brands as a premium

one.

In the second part of the report, some recommendation covering

changes in marketing strategy in order to resolve the current

problems are provided. As EE provide the service, marketing

tactics and strategic within 7P’s has been used. It has been

suggested to launch new video calling services and allow

customers upgrade their old phones for newer models that will

increase their loyalty level. Furthermore, it is suggested to

adapt penetration pricing for moving out of the early adopters

users into the broader market and odd pricing technique for

adjusting prices. For promotional mix, EE needs to rely more

on social and digital media advertising to push the brand

forward and appeal new customers. Finally, the company should

use the multi-channel distribution system, making the website

well-designed and friendly, and maintaining a premium image of

their own branded stores to increase the brand awareness.

Content List

1.0 Introduction ……….…………………………………………………..…………………..3

2.0 Company Background .……………………………………………..……………………..3

2.1 PESTLE analysis ……………………………………….………………………………3-5

2.2 Differential advantage/ Competitive edge (USP) …..

…………………………………..5-6

2.3 SWOT analysis …………………………………………………………………………6-7

3.0 Segmentation Targeting & Positioning …………………………………………...

…….7-8

2

3.1 Marketing objectives and goals (SMART) ……………………………………...

………..8

3.2 Marketing strategies and programmes (7P’s) ………………………………...

……….8-12

4.0 Conclusion ……………………………………………………………………………….13

References

1.0 Introduction

This report will describe EE network operator’s current

strategy and provide recommendation for some of EE significant

problems. They include the decline in the number of customers

3

from 28.2 million to 25.1 million in 2013 (Gilbert, 2013).

This is due to strategy shift to business segment, which is

more profitable (Owen, 2014). Second problem is a high number

of complains and low customer satisfaction of customers

according to Ofcom (2014).

Assignment will starts from introduction and briefly

explanation of the company background. Further, a view of the

EE as it is now will be given, for detailed analyse will be

used SWOT and PESTLE analysis, Differential

advantage/Competitive Edge analysis and STP. In the

recommendation part, marketing objectives of EE and Marketing

Mix (7P'S) techniques will be suggested.

2.0 Company Background

EE (Everything Everywhere) was established in April 2010. The

company were the first digital communication company launched

4G mobile services in Britain. 4G faster and more consistent

mobile broadband speed than 3G (EE, 2014). EE communication

began its existence after the merger of Orange and T-Mobile.

Today, the company currently provides its network to 29 MVNOs,

including Virgin Mobile and ASDA Mobile, which serve a total

of 4,5 million customers (EE, 2014). Company has more than 574

stores and delivers their services through their website as

well. Further, the company has 27,000 mobile phone masts,

which means, Everything Everywhere has a big footprint than

its competitors O2, Vodafone and 3 (Wray, 2010). 

2.1 PESTLE analysis

4

Ranchhod and Marandi (2007) define PESTLE as “the analysis

alloys to understand the macro-environment facing the industry

sector that the company is immersed in.” PESTLE divided into

six factors: Political, Economical, Social, Technological,

Environmental and Legal.

Political factors

The political factors do not considerably affect the mobile

telecommunication industry as it regulated by Ofcom: “independent

regulator and competition authority for the UK communications

industries.” (Ofcom.co.uk, 2014). Nevertheless, Scottish Government

has recently announced the investment of £120 million for

improvement of broadband connection in rural areas that makes sense

for carriers to invest in 4G (Times, 2013).

Economic factors

Current UK economic situation is favourable for mobile

operators due to recovery after the recession period of 2008-

2010 year. GDP has increase by 1,9% in 2013 (BBC News, 2014)

and expected to continue to grow in the next years (Monaghan,

2014). Thus, household disposable income also rises that leads

to increase of mobile services consumptions. However,

unemployment remains considerably high and negatively impact

on how customers consumer service (BBC News, 2014).

Social

Some of the most important social factors that have influenced

the telecom industry are those considered with increasingly

investing and using digital technologies, especially among

teenagers and young people. This makes rapid adaptation of

5

mobile phones into consumer everyday lives, where people use

and rely on social network communication, listening music and

watching videos (Position.co.uk, 2011). Next, increase

Internet use on smartphones has transformed the nature of

social contact into new “technosocial situations” where person

always available (Nurullah, 2014). Such changes increase the

demand of mobile services such as 3G and 3G especially among

young segment groups (Thesis, 2011).

Technological

Mobile telecommunication industry is technology dependant and

intensive industry. Thus, the emergence of new technologies

such as 4G LTE services (Ofcom.co.uk, 2014) has profound

impact on the mobile operators as people consume more internet

data due to advanced features and high speed. With the fast

creation of new models of phones and communication devices,

operators must have the most up-to-date phones available.

Next, with the increased use of Internet on mobile, users have

experienced mobile cybercrime and virus attracts

(Symantec.com, 2014). Finally, the rise of mobile phones has

resulted in decline of fixed-line services by 13,4% (KeyNote,

2014).

Environmental

Telecommunication companies including EE do not have much

interaction with environmental issues. However, the companies

can make something beneficial for environment, such as

recycling old cell-phone or sim-cards, that can allows company

to be in a good chance for gain further sales and another

6

benefits due to increases environmental awareness among

individuals.

Legal

Legal influences exists in the form of “Ofcom” and

“Telecommunication Ombudsman” regulations as well as EU

telecommunication organization such DigitalEurope, Federation

of communication services (Etno.eu, 2014). Ofcom regulates the

commercial activities of main telecommunication operators,

while Telecommunication Ombudsman works with the provision of

lawful and trustworthy mobile and Internet services (Solly's

space, 2010).

2.2 Differential advantage/ Competitive edge

EE differentiated itself with the number of unique options for

their customers that other competitors do not have. Firstly,

recognizing the problem of weak signal of network in

underground, EE provides free access to BT Wi-Fi hotspots

nationwide and on the London Underground (Ricci, 2013). Next,

mobile application, Deezer, with 30 million songs gives chance

to EE users listen and download unlimited new music (EE,

2014).

With the introduction of 4G LTE network, EE was the first

operators in the UK to appreciate the opportunities offered by

4G. It invested significantly in this market, acquiring 'first

mover advantage' by being the first one to expand a specific

market. The first mover becomes associated by consumers with

that development (Lieberman and Montgomery, 1987). It then

7

allows being at the leading edge of new developments so its

competitors are continually trying to catch up.

Then, the company signed a brand partnership with Wembley

Stadium that attracts millions of visitors each year for

different type of events and contests. The stadium covered

with EE advertising in and around the stadium, where EE

provides the mobile ticketing solutions and enhanced network

access. (Withers, 2014). While O2 and Vodafone only

concentrate on specific sport events and sport teams, English

Rugby team (O2.co.uk, 2014) and McLaren F1 (McCabe, 2014),

team respectively .

Furthermore, according to Broadband Advisor test, EE has the

fastest speed of Internet access, recognized by uSwitch as the

Fastest Network (Doku, 2013).

EE provides cheapest 4G mobile phones

deals that start from £13.99 per

months (uSwitch, 2014). Finally, EE

offers 2 for 1 cinema tickets every

Wednesday for its subscribers that

gives additional value to the

company’s services.

Figure 1. Comparison of Internet

speed access (uSwitch.co.uk, 2014)

2.3 SWOT analysis

8

Company Average

speedsEE 3.3/1.79MbpsThree 1.87/0.94Mbp

sO2 1.2/0.4MbpsVirgin 0.26/0.51Mbp

sVodafone 0.19/0.23Mbp

s

According to Hollensen “SWOT analysis is a technique specially

designed to help identify suitable marketing strategies for

the company to follow”. This tool will help to define

Everything Everywhere strengths, weaknesses, opportunities and

threats for current time (Murray-Webster, 2010).

Strengths. One of the main strengths of EE is the largest

coverage, including biggest 3G network across the UK, due to

free roaming between two operators. Moreover, the company

operates the largest amount of retail stores, 574 (including

100 franchise stores), which located on the high streets and

shopping malls. Next, EE launched 4G service long before other

rivals that allowed giving access to over 70 % of UK

population, making the company leader on the market.

Weaknesses. EE has the number of significant weaknesses that

negatively affect its operations, brand image and

profitability. Firstly, the company brand is very week due its

recent launch compared with established brand names (Andrew,

2012). Furthermore, frequent technical issues are causing

customer experience problems, including delayed messages, lost

signal and failures to make calls (Williams, 2014), This, in

turn, has negatively reflected on the customer satisfaction.

Finally, EE was put much more focus on targeting business

segment that reflected on the losing customers and revenue by

3,6% per year (Dawinderpal, 2014).

Opportunities

The mobile telecommunication industry has increasingly growing

through establishing of many MVNOs, which has encountered 123

9

companies in UK (MVNO Dynamics, 2010). This is a great

platform of B2B business growth for EE, especially with its

broad 4G services. The growth of smartphone ownership and its

increase usage, especially mobile data service, gives EE

opportunity to catch more customers and significantly generate

more revenue. Finally, as the leader of 4G service, EE has the

opportunity to boost its revenue through selling more 4G

enabled phones and post-pay contracts.

Threats

Threats include the future growth of 4G that leads to

intensive competition and competitors can take the leading

position in this market. Furthermore, increase number of IT

attacks at mobile phones can discourage customers from using

the data functions on their handsets that will be reflected on

the company’s margins. Finally, introduction of different VoIP

and instant messenger applications on the phones can

significantly decrease the use of EE voice services.

3.0 Segmentation, Targeting &Positioning (STP)

Lamb (2009:207) defines segmentation as “the process of

dividing a market into meaningful, relatively smaller, and

identifiable segments of groups to analyse the characteristics

and buying behaviour of these groups.”

It is important for EE to catch new customers and future

growth. The most cases geographic, demographic, psychographic

and behavioural variables are used for market segmentation.

All market segments of EE need to be measurable, accessible

10

and substantial to serve the interest of the company.

Demographic variables segment according to income, age, nature

of customer. Similarly, in psychographic it mostly segments

relating to lifestyle and personality. In behavioural segment

has broken down into three types on the benefit like local

call, STD call and ISD call regarding usage rate medium usage

rate and light usages with various schemes for them.

Next, a target market should be chosen to compete effectively

in this market. According to Cant (2007:103), targeting deals

with “the process whereby a marketing mix is tailored to fit

some specific target customers”. In order to gain a foothold

in mobile telecommunication market, EE produces products and

services for many segments by introduction different tariffs.

Currently, the company has adapted differentiation targeting

strategy, “an organization directs its marketing efforts at

two or more segments by developing a marketing mix for each

segment” Pride and Ferrell refers (2010:164).

This segment includes city-based business such as bank and

financial organizations launching “In the city” strategy

(Everything Everywhere 2013) and early-adapters of 4G services

with ‘No Brainer’ campaign (O’Relly, 2014).

After selecting the target markets, the company should decide

positioning strategy. Ferrell and Hartline (2013:210) state

“positioning refers to creating a mental image of the product

offering and its differentiating features in the minds of the

target market”. EE positions itself alongside existing Orange

and T-Mobile brands as a premium one and the cutting edge that

11

drives forward the mobile market with 4G services. According

to Thomas Wehmeier, analyst at Informa Telecoms and Media, “EE

is building a brand that can truly rival industry leaders O2

and Vodafone.” (Joseph, 2012).

Relating to mental image, the company perceived as “The

network for your digital life” for business segment, making

the business quicker, easier and less stressful (Pure Business

Services, 2012). While for commercial market, EE brands stand

as the provider of “fantastic market-leading deals which offer

something for everyone” Spencer McHugh, EE brand director

insists (O’Relly, 2014).

3.1 Marketing objectives and goals (SMART)

After company have planned its project, they have to think about

developing some objectives, which will help firms to be successful

in their industry. Objectives must be SMART, which means specific,

measurable, agreed upon, realistic and time-based. This helps to

concentrate the allocation of marketing mix easier and clearer

(Projectsmart.co.uk, 2014).

Based on the analyzing of external and internal environment of

the company it is recommended to EE to increase customer

database by 10% during the period between 2014 and 2015.

Furthermore, to increase the profit by 15 % by the end of

2014. Finally, due to the new and weak brand position, it is

recommended to increase brand awareness.

3.2 Marketing strategies and programmes (7P’s)

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Marketing mix improves the feeling of customer association

with operator, developing a bonding and nurturing associative

long-run relationship. The marketing mix is a blend of

marketing variables that are used to produce the response the

organization want in the target market (Kotler, 1997). There

are four elements of mix: product, place, promotion and price.

As EE is service provide, mix usually associated with three

additional mix elements: people, process, and physical

evidence (West, Ford and Ibrahim, 2010).

Product

Product “refers to something that buyers can acquire via

exchange to satisfy a need or a want” (Ferrel and Harltine,

2010). As EE is mainly a service provider, the main service

of the company is voice transfer of service, which is the core

product, connecting people with each over. The second service

is Internet access in the form of 3G and 4G. In order to get

services, customer purchases SIM-card or contract plan. It is

also important for the provider to carefully examine the

product from the customer interaction point of view, always

improving the network signal quality (Cant, 2009).

The tangible product of the company is mobile phones. For EE,

this is its phones portfolio that should always be upgraded

with the latest models to keep in track with customers

preferences. Moreover, EE should provide more available 4G

enable phones in terms of price for faster adaptation and mass

consumption of new service, thus, gaining more profit. With

introduction of superfast 4G service and mass adaptation of

13

mobile phones with support wide communication, EE can

introduce video calling service. This results in the wave of

excitement around the company and opportunity to operator to

make money for charging for video connectivity (Masri,

2013:137).

In order to make the product more remarkable and enable

company to be competitive, Beamish and Ashford (2005) insist

to add extra benefits to the core/tangible products. EE should

provide the personalized service that helped to gain Amazon

competitive advantage (Aldeano and Zarco, 2004:40), making the

customer the backbone of their business. It can be achieved

through the improvement of their mobile application and

website, where according to user’s tariff featured contents

and special offers will be presented, and next contract will

be suggested.

Finally, with the rapid development of new model of phones,

customers would like to upgrade their phones before the end of

the contract, which usually last 2 years. EE can offer new

service that allows upgrading the phone, recalculating the

price of their current plan. It is allows to build long-term,

mutually beneficial relationships and increase customer

loyalty (Lamb, Hair and McDaniel, 2009). Moreover, the company

can enhance the phones value with providing EE personalized

phone cases that in turn would enhance the brand image

(Blythe, 2006).

14

Price

Price is a main determination of customer choice (Kotler,

2009). With increased availability of information in the

Internet, consumers have more access to price information and

price discounts. Therefore, companies should be more careful

in designing price strategies (Fifield, 2008).

As the first mover of 4G services, EE have prices it as a

slight premium over 3G (Mobilitytechzone.com, 2013), that

enabled to capture eary profits (EE, 2013). However, with the

increased competition on 4G market, demand become more price

elastic (Hollensen, 2010). Therefore, it is recommended for

the company to adapt penetration pricing that aims to set a

low intoductionry proce to quickly penenetrate a product in

the market (Doyle, 2011). They need to reduce charging for 4G

as they do 3G, with the only premium on the amount 4G devices

would cost to purchase over a 3G phone. This approched was

used by US carriers that resulted in largest 4G market in the

world (Telecoms.com, 2014). Thus, using this startegy, EE will

begin to move out of the early adopters users into the broader

market increasing the market share and gaiinign competivie

advantage over rivals (Lambert, 2012). Additionally, EE also

must implement techniques for adjusting prices. The company

can use odd pricing, where customer will perceive the price at

£7.95, 9.99 as lowest that the seller possible could offer

(Ferrel 2012) that is especially important for customers who

has mental price break at the higher, rounded price. This

positively affect the buyer behavior, generating greater

demand (Hinterhuber, 2012).

15

PromotionPromotion is a one of the important part of the marketing mix

strategy. It involves sending a message that will be received

by consumers. To reach consumers with a powerful unified

impact EE should use a mix of traditional techniques like

television advertising, and new techniques such as media

sites, cinema and the Internet. As the company will introduce

new video calling service, this can be the main central

strategy of the campaign, persuading the potential consumer

that there is a unique benefits from the service which can

better fulfill their desires (West, Ford and Ibrahim, 2010).

The main components of promotional mix should be Internet

because it is increasingly important and measurable way of

reaching potential target group of people. It also helps in

interactivity by giving a chance for users to express their

views and provide support (Businesscasestudies.co.uk, 2014).

For example, it is recommended to place videos on YouTube and

set up pages on the social networking including Facebook and

Twitter. Advertising should also put on Google and Facebook

targeted at users who are looking for fast Internet and who

had problems with their network providers. This should appeal

new customer and to the network and increase new service

awareness.

Finally, to engage with customers and demonstrate the quality

and speed of 4G network, EE may create the new methods and

techniques, reaching its audience and make the word-of-mouth

(Businesscasestudies.co.uk, 2014). For example, the network

provider can carry exclusive video broadcasting of biggest

16

concert events with famous performers to its customers.

Thus, social and digital media should become the heart of EE

promotional campaign that will push the brand forward.

Place

Place relates to various methods of making products available

for purchase by consumer, involving various distribution

methods (Hollensen, 2010).

There are a number of options for EE to reach a client broken

down into three choices: direct, sales staff, or intermediary,

as shown in Figure 1. In order to reach higher market coverage

and satisfy wants of customers in most effective manner, the

company should use the multi-channel marketing.

Direct Sales staff Intermediary Internet

Telephone

Mail

Catalogue

Own channel

Own

Another firm’s

Contract

Franchise

Partner

Agent/

Merchant

(West, Ford and Ibrahim, 2010).

With increased use of internet, company website provides the

best conventicle for most buyers, because it consists of main

elements of successful distribution channel: time- and place-

access, search and transaction (Fill and Hughes, 2007). For

achieving this, EE website should be well-designed and

friendly to buyers with online customer support service if it

will be needed. Thus, focusing on convenience and customer

17

care increase customer satisfaction and loyalty (Souitaris and

Balabanis, 2007).

Next, it is recommended to expand their distribution,

maintaining a focus on premium image. It can be delivered

through the use of their own branded store as the flagship for

brand development. These outlets should be located in high

streets and shopping malls that also can help to gain new

customers from abroad newcomers who prefer to make their first

purchases there (Shea, 2014).

Moreover, salesperson in stores is useful with providing the

information about the product that customer could assess the

discussed proposed purchases and choose the best offering that

will satisfy their needs (West, Ford and Ibrahim, 2010). This

also provides the optimum control and ability to motivate

through the monetary rewards and necessary trainings.

People

Managers, leaders and employees are plays important role in

the companies success. The company’s customer services should

be well planed and organized. People need to resolve problems

efficiently and quickly and provide outstanding technical

maintenance and make sure that their consumers are getting the

most out of their services and products. In return, EE should

reward its workers with training, incentives, benefits and

bonuses, so that the employees will always have an inspiration

to achive.

Process

18

Customers are not only interested on purchasing or using a

product and also they are interested in how they recive the

product or services. The linchpin of EE is a variety of differentmobile and network services. All of the processes should be

effective and consumers have the access to them easily.

Phisical evidence

Often customers have a risk when they make a decision whether

or not to use a service. As the service cannot be experienced

before its delivering, it is important to offer clients

different ways of clues to evaluate the qulaity of the

provided service, in order to improve companies success

(Hollensen, 2010).

4.0 Conclusion

EE is a new company that has a great potential in keeping the

leading position in mobile telecommunication market. After

analyzing the external and internal environment of the company

and recommending ideas mentioned above, the company would be

able to solve several issues linked with decreasing customer

base and low level of customer satisfaction. By launching new

service of video calls with providing the superfast 4G

services, EE needs to communicate this right to the potential

customers using social and digital media. This help to ensure

that company will be ahead of its competitors, increasing the

19

profitability and attracting new users.

Word Count: 3187

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