Marketing Strategy of Vodafone

8/18/2019 Marketing Strategy of Vodafone

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Marketing Strategy of Marketing Strategy of

VodafoneVodafone

For Assignment or Dissertation Help, PleaseContact:


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Muhammad Said Saeed

!"" #"# "$"%#&'

(mail:

todrsaeed)gmail*comSkype +D: tosaidsaeed

Table of Contents

1.1 Introduction to Vodafone...................................................................................3

1.2 Line of Products by Vodafone............................................................................3

1.3 Analysis of Vodafone’s Macro environment.......................................................4

1.3.1 Political Factors...............................................................................................4

1.3.2 conomic Factors...........................................................................................!

1.3.3 "ocial Factors................................................................................................. !

1.3.4 #ec$nolo%ical Factors......................................................................................&

1.3.' nvironmental Factors................................................................................ &

1.3.! Le%al Factors.................................................................................................. &

1.4 Vodafone’s to( com(etitors.............................................................................. )

2.1 Mar*etin% Mi+ elements of Vodafone in t$e ,-..................................................1

2.1.1 Mar*etin% analysis of elements....................................................................1

3.1 /ecommendations for Vodafone.........................................................................12

3.1.1 #ec$nolo%ical As(ects..................................................................................12

3.1.2 Value added services....................................................................................12

3.1.3 0etter (ublic relations.................................................................................. 13

3.1.4 /eduction of costs........................................................................................ 13

3.1.4 e line of (roducts.....................................................................................13

4. onclusion.......................................................................................................... 14

/eferences................................................................................................................14

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mailto:[email protected]:[email protected]


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1.1 Introduction to Vodafone

Vodafone the king of telecommunication kingdom has over 404 million customers in 30

countries around the world. It headquartered in London and stands alone with the command of

interconnecting people wherever they want. With the oint venture !y "an #ten!eck of $acal

#trategic $adio Limited and %illicom& the emergence of Vodafone took place in '()*.

+radually& its first office was opened in ,ews!ury on ' st "anuary '()-. uropean countries for

Vodafone network includes the /& 1urkey& $omania& #pain& ,orth 2yprus& %alta& ,etherlands&

Italy& Ireland& +reece& ungry& +ermany& l!ania& #weden& #wit5erland& $ussia& 6enmark&

ustria& 7elgium& 7ulgaria and 25ech $epu!lic. nnual report of *0'* for Vodafone depicts

annual revenue of 8 3*.* 7illion 9Vodafone annual report& *0'3:.

,ationally& Vodafone has over '( million customers with +uy Laurance as its 2;. It was the

first ever cellular service introduced in the / and currently has 3 share of mo!ile market revenue. #ervices and products introduced !y Vodafone

includes Vodafone live?& mo!ee %edia #ystems Vodafone 2onnect to @riends& Vodafone

@reedom Aacks& Vodafone at ome& Vodafone urotraveller& Vodafone ='0 and Vodafone %o!ile

2onnect /#7 %odem 9Vodafone annual report& *0'3:.

1.2 Line of Products by Vodafone

wide range of products and services are offered !y Vodafone to its customers for achieving

competitive advantage over other products.

Table 1: #ervices and products offered !y Vodafone 9Vodafone annual report& *0'3:

Services by Vodafone Products by Vodafone

+A$# 9%o!ile ;ffice& Voice& Vodafone Live?: %onthly payments

3+ services Aay as you go

asy payments 1op ups

1eBt to speech softwares @iBed line !road!and 9cordless& wired:

Vodafone Live 7lack!erry !usiness plan

6ownloads 3+ data cards

,ews and updates

1rained staff crew

ntertainment 9wallpapers& ringtones& games

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applications:

1.3 Analysis of Vodafone’s acro environ!ent

A 9Aolitical: 9conomic: # 9#ociological: 1 91echnological: L 9Legal: 9nvironment: model revolves

around gathering and portraying information a!out eBternal and internal factors that have a strong impact

on !usiness. It is considered to !e a statistical tool to inspect the macroCenvironmentDs collision with the

organi5ation. @ormulated !y the 2;s& its implementation is carried out !y the senior management

9elfert& *004:.

1.3.1 Political "actors

7esides /& Vodafone is spreaded across half of the glo!eE ,orth merica& urope& sia.

Vodafone has gained massive revenue from the glo!al market as well as main markets of urope.

ence& a glo!alised environment for Vodafone has shown a positive impact on political and

legislative factors 92liffe& #imon " and "udy& *00-:. .

@ollowing figure shows the revenue in 8 %illionF

"i#. 1F 1he revenue for *0''G'* can !e taken in 8%illion 9Vodafone annual report& *0'3:

s of "une *0'3& Vodafone has over '( million customers which generate *-> of share revenue

in the / market.

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With the emergence of uropean $egulatory @ramework of the communications and

consolidation of the sector most uropean countries implemented this framework to improve

market values. Vodafone adopted in *00* proving that it is highly aimed at regulating the

!usiness activities with industry specific law and regulation for telecommunication services. 1o

fa!ricate the network system country wide& licence is required from the government for land

utilisation. ence permission is taken from the governing authorities. In addition& health issues

are the !asic concern including the result from phone masts nearness to pu!lic areas including

schools and usage of mo!ile phones !y children. 1he a!ove mentioned factor can also !e a

political factor. %ost importantly& rules and regulation needs to !e followed which includes the

acquiring the mo!ile phones licences.

1he uropean 2ommission evaluates the eBtent of universal service provision in urope. It

forces the provision of a fiBed connection which permits access to simple data services. It has

decided to invest 8=.- !illion for digital services and !road!and infrastructure proects in *0'4.

s far as consumer protection is concerned& the uropean 2ommission planned out uropean

$oaming $egulation in *00


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/. ;verall mo!ile services revenue for urope in *0'* was *-> for data and =-> for voice

and #%#. 1his is eBpected to fluctuate in *0'- with an increase to 33> and for data and

voice plus #%# respectively 9Vodafone annual report& *0'3:.

2urrently& there are serious economic concerns for Vodafone for o!taining licences for services.

igh amount of price is paid for 3+ licenses. owever& Vodafone pays the amounts in order to

provide people with highCquality network coverage. Aresently& smart phones are highly used so

Vodafone is constantly trying to upgrade the network which includes the theoretical speeds of

'4.4 %!ps covering ()> of 3+ network which is sufficient for customers to stream live videos.

@or reducing the cost for geological sites Vodafone has deployed over =0> of new radio sites. In

return this levels down the eBpenditures for renting. 2alling costs have !een decreased due to the

increase in demand of the product. @or *0'4 fiscal year 8'*.) !illion profit has !een eBpected

with the growth of Vodafone industry in the / 9aton and 6uncan& *00*:.

1.3.3 Social "actors

With the gradual pace of time& consumer or !uying trends are on the merge with respect to health

consciousness& lifestyle and education level which influence !usiness. It also includes the

cultural vastness. Vodafone aims for glo!al maBimisation for its products and services which in

return improve the financial efficiency. It is intended to standardise its offerings glo!ally

including the / which will !enefit the technical and commercial functionalities. s a glo!al

pioneer in telecommunication !usiness Vodafone plays its role in satisfying the socioCeconomic

trends. 4.*> increment in the economic productivity in the market was o!served in *0'* due to

mo!ile penetration. 1hus the efforts for !roadening networks give rise to su!stantial socioC

economic !enefits 9Vodafone annual report& *0'*:.

1.3.% Tec&nolo#ical "actors

1he multiCenvironment variant& technology is the !rickClaying feature of VodafoneDs success.

With advancements in telecommunication sector& Vodafone has given !enefit to customers& for

instance& utili5ation of 7luetooth& Wireless& 3+ and WA has made the communication gap

shorter. lmost ('> of urope is covered !y Vodafone which is likely to increase to (-> !y

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*0'-. 4+ technology will !e introduced in the / on *( th ugust& *0'3 after a maor investment

of 8 (00 million for eBpanding the hori5on of networks 9Vodafone annual report& *0'3:.

1.3.' $nviron!ental "actors

Aresently& Vodafone is facing threats against environmental issues such as diverse climate

change. ence coCfriendly technology has !een mainly introduced !y every company including

Vodafone. It has adopted the policy of using recycled papers for marketing and recommends its

customers for minimum usage of mo!ile phones for health related issues. /sing %*% solutions

allows keeping an eye on data centres with less energy consumptions and low level of car!on in

the environment. 2onsequently& it has given up to *-> savings in the uropean market including

the /.

1.3.( Le#al "actors

very now and then government implies laws relating to employment& copyrights& consumer

protection& and property. 2ultural and legal requirements are fulfilled !y the employment policies

of the / as it intends to develop high employerCemployee relation 9elfert& *004:. 1he #ale of

+oods ct '(=4 strongly illustrates that a product must achieve its target and fulfils its purpose.

@or instance a mo!ile phone must work properly. Vodafone strictly advice and promotes all the

traffic laws including H,o mo!ile phones during driving. 1his was introduced !ack in *003.

6uring early *0'3& a survey was conducted which showed )(> agreement upon fair treatment of

Vodafone employees despite of gender& age and religious !ackground 9Vodafone annual report&

*0'3:.

1.% Vodafone’s to) co!)etitors

1he / telecom industry is eBpanding day !y day that gives rise to competition and rivalry.

7esides all the factors Vodafone has maintained its position in the list. ;ther services include 1C%o!ile& & 1elefonica ;*& 3 and ;range. ere is a !rief overview for top competitors in / in

1a!le * 9Vodafone annual report& *0'3:F

"actor Vodafone *+ ,ran#e 3

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2.1 ar4etin# i5 ele!ents of Vodafone in t&e *+

"i# 2: %arketing miB of Vodafone 96ata taken from Vodafone annual report& *0'3:

2.1.1 ar4etin# analysis of ele!ents

1o provide right thing at the right time is the slogan carried for all products and !rands.

miBture of concepts is followed in order to devise strategies that can make a !rand popular.

Vodafone also follows the same strategies for providing the !est and within reach services

9elfert& *004:.

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#uper stores have Vodafone promotions to the onCspot customers and also provide them with

discounts. VodafoneDs stores have well trained staff that acquire the need of the customer first

and provide them with products accordingly. Aress releases including advertisements provide the

people with clear cut messages and promote good pu!lic relations. Vodafone Bplore and

Vodafone ssentials are the maga5ines that provide the information a!out products in market

96oyle and Ahillip& *00


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are also availa!le. owever for maintain its position Vodafone must concentrate on pricing

policies 9Vodafone annual report& *0'3:.

3.1 eco!!endations for Vodafone

positive strategy requires the creation of sustaina!le shareholders while considering all threats

and opportunities. 1hree aspects are well thoughtCout for every firm or !usiness including cash

flow& eBpected growth rate and discounts that are offered to the customers which depict the risk

of the investment and financing. With these aspects an organisation can enhance its market value.

%oreover& it can reduce the cost of capital& produce cash flows from already eBisting assets or

elongate the high growth rate phase for !oosting up its position 96oyle and Ahillip& *00


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aspects& including money and services& Vodafone should take steps to include special value added

services for youth 9arker and +ary& *00(:.

3.1.3 6etter )ublic relations

7uilding relationships with common pu!lic !y the organisations is a tough task. Vodafone has

maintained its num!er in developing customerCcompany relation. owever& there is room for

improvement for esta!lishing the relationship. While searching for the right product people go

through every material availa!le for it including catalogues& internet surfing& videos and

feed!acks. %arketing o!ectives should !e carried out which includes making availa!le every

piece of information of the product to the consumer& not only maga5ines !ut also other resources

9elfert& *004:.

3.1.% eduction of costs

@or maintaining their image charges and rates should !e cut off. 1his can facilitate people from

all !ackgrounds. Vodafone can oin up with some of the mo!ile services in order to provide a

!etter and cost efficient service to people. 1his can capitali5e on generating !enefits for

Vodafone. 1he telecommunication industry has !een highly penetrated !y new mo!ile services.

ence& the aim should !e to augment the customer value !y offering reduced rates. %inute

!undles and additional points can !e offered to allow longer talk time with optimal price

9elfert& *004:.

3.1.% e7 line of )roducts

Vodafone can gain more popularity if new range of products can !e launched that covers all

features of technology. Aeople are prone to the world of technology day !y dayE hence& updating

the line of products can really increase the sales and in return revenue.

;n the other hand& people who are unaware of the new technology should also !e

accommodated. 1utoring such people can help Vodafone in covering all classes of people. s a

return they can learn a!out the newest technology in market and can further !uy any VodafoneDs

products.

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%.8 Conclusion

In comparison with power& energy& oil and gas industries telecommunication industry is the most

recent. In / Vodafone has grown with !link of an eye and has eBpanded its hori5ons glo!ally.

1his rapid and vast growth is always challenging for the companies to uphold their positions.

#imilar is the case with Vodafone as its needs to follow the ethics of marketing to deliver the

customers the right thing at the right time with the development of new products in cost efficient

manner. With highest num!er of customers and largest yearly revenue earning& following the

accurate actions could add up their performance in the competitive industry.

eferences

nwar& #.1. 9*003: 2## Vodafone and the wireless industryF a case in market eBpansion and

glo!al strategy. Journal of Business & Industrial Marketing ').3. pp *=0C*)).

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7eddoes& dward W.& and %ichael& ".%. 9'((4: M$adio telecommunication systems and

methods.M uropean Aatent ,o. A 0-(=


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,ikos& . and ndroulidakis I. 9*004: %C!usinessF 1he !ase for creating competitive advantage.

1he case of vodafoneCpanafon. seas Transactions on Infor#ation "cience and )pplications '.-

pp '30(C'3'3.

%oreau& . 9'((

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Marketing Strategy of Vodafone