Vodafone Planning Concepts in competition

Introduction

Marketing is the primary of most business. To outperform the competition requires solid marketing knowledge and perfection in marketing decision making. To advertise company's service or product, it is necessary to get placement, positioning of its products and services be based upon the formulation and implementation of wise and aggressive strategic marketing ideas.

As this task requires choosing an organization which fosters proper marketing management process; therefore, Vodafone: multi-national UK-based mobile network operating company has been picked.

About Vodafone

The Vodafone group is a mobile network operator headquartered in Newbury, England. They made their first phone call just moments after midnight on the very first of January in 1985. In 1987 it was already recognized as the largest mobile network on the planet. Today it is the biggest telecommunications network provider on earth by turnover and has a market value around a hundred billion pounds. It is a FTSE 100 company and it is positioned 3rd overall just behind 'Royal Dutch Shell' and the 'BP' group. Vodafone presently has equity passions in twenty-five countries and has other spouse networks with property in another forty one countries. It is the second most significant mobile telecom group on earth behind China Mobile and has more than ten million customers in the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States.

At a glance of Vodafone [1]:

Type : Community Small Company (PLC)

Industry : Telecommunications

Founded : 1984

Headquarters : Newbury, United Kingdom

Area Dished up : World wide

Website : www. vodafone. com

[1] en. wikipedia. org/wiki/Vodafone

Task 1

1. 1 Vodafone Marketing Planning Principles

Vodafone market planning consists of deciding on marketing strategies that will help the business attain its overall tactical objectives. A detailed marketing plan is needed for each and every business, product, or brand. It offers external and interior environments where a lot of tactical elements are participating. As part of marketing planning principles, macro-environmental scanning will be conducted by studying significant macro factors impacting the telecom industry while Porter's five causes, SWOT research (SW-for micro environment and OT-for macro environment) will be utilized to determine the micro-environment encircling telecom industry. Later, BCG matrix within Vodafone portfolio examination technique is explained.

1. 2 Vodafone Plan Development Using Analytical Tools and Techniques

1. 2. 1 Macro-environmental factors:

To review the macro factors of the Vodafone Plc, PESTEL research, SWOT evaluation (OT is detailed in macro environmental issues) is explained.

1) PESTEL examination:

Political factors:

Regulations- Mobile phones licenses are tightly controlled and are very expensive. In some cases tight measures are applied by the federal government in order to diminish cellular phone use for children because of medical issues.

Infrastructure- To build up an infrastructure to aid the network usually requires authorization from the government and other regulative systems.

Economical factors:

The downturn has decreased the money customers are prepared to spend, therefore there is a price war between leading network providers to operate a vehicle down costs of telephone calls and Text to get more customers.

Cost of licensing-When the technology of 3G was presented there was a bid battle between leading companies which finished up in a high expenses of acquiring this technology

Social-cultural factors:

Fashion- In a few countries especially in European countries it is in fashion to have a mobile phone. The market in Europe is so big that kind of mobile phones are being sold here. These days in i phone by Apple has conquered the majority of the market and is also the best owner in the UK at the moment

Demographics- Mobile phones have a tendency to be utilized by the younger customers of society. Inside a country where the people is ageing, which is the tendency across the European union, the demographics may change to a far more aged population who may have less use for cell phones.

Technological factors:

3G (3rd Generation)-The advantages of this technology have helped Vodafone to socialize easier through their mobile and they were able to offer services like the mobile internet or famous interpersonal networking sites like facebook directly accessible from the telephone.

It is currently much easier for business customers to set up meetings and get information on their handset. Vodafone also offers tailored price plans for business customers.

GPS (Global Placement System) - It really is now possible to get a navigation program on the handset where supported. Instead of buying expensive satnav systems the customer can pay one off fees and use the system

The technology advancement in general can help Vodafone to handle the growing competition all over the worked and can help them increase to catch the attention of more customers through these technology advancements.

Environmental factors:

Vodafone have established a recycling program for phones in order to help the surroundings and recycle and reuse the materials used in the handset. They give incentives in terms of money to customers hand in their old cellphone in trade for a new one.

Legal factors:

Law-There are some lawful restrictions which regulates the activities of business e. g. The Sales of Goods Action 1974 proclaiming all products must be fit for the purpose they are planned. A cellular phone must therefore work. These laws are created to modify particular industries including the ban on cell phones while driving. This significantly increased the deal of headphones.

2) SWOT evaluation (PART 1: OT under macro environment):

Opportunities:

Emerging market segments offers Vodafone to expose their unique services compared to that market where the market has high rate of growth. They can become a market leader because they are the largest network provider on the globe and their experience may help them for doing that.

At the moment having a cellular phone is a necessity for many people and the trend is going up that folks are maintaining have a number of mobile phone. This may come out positive for Vodafone as the market tends to increase by size and volume level in conditions of sales.

Threats:

Competition is actually a threat group as more different products and services are being offered by different companies. The 'iphone' for example released by o2 has significantly lowered sales of other products and services because they reserved the privileges to be the only distributor of the telephone in the united kingdom.

The aftereffect of rules and regulation by the federal government can even be threat to Vodafone as they could ban or arranged price regulations.

3) Marketing Mix

Vodafone uses its edge as being a large global firm and implements differentiation and cost authority strategy as they benefit from economies of size. This allows them to have a competitive benefits and adding more value to their selection of services to the clients in comparison to other rivals.

The marketing combination involves many different factors, which can be grouped collectively into four main categories: product, place, price and campaign.

Product-Vodafone offers different type of products to different type of customers and so can section their market in this field. Since the benefits of 3g services they can provide more than simply voice cell phone calls and messaging. Customers are able to access he internet and other multi-media applications on the run and can take advantage of the unique quality of Vodafone.

Price-They have the ability to offer different services for different customers like pre pay telephones, pay monthly contracts and business alternatives for businesses. This enables them structure their costing method towards different needs of the customer.

Place-Vodafone runs mainly through their retail stores all around the UK. You can find over 300 shops and they also offer their services through indie dealer like 'Telephones4u'.

Promotion-Vodafone affectively operated a solid marketing structure which include advertising poster on the street, TV plan and also use famous superstars like David Beckham to market their products. This ensures people know about their special offers and discounts.

1. 2. 2 Micro environmental factors:

1) SWOT evaluation (PART 2: SW under micro-environment):

Strengths:

The size of the organization plays a significant factor when we are speaking about their power. Their global existence and network helps it be easy for them to become more competitive even on a worldwide scale.

Vodafone is reputable company and there are famous for being the best in their field. Their brand image is very important when it comes to sales and increasing them.

Standardized customer relationship management is also an attribute of Vodafone. The company is creating a group-wide standard in customer relation management to ensure an awareness of its customer bottom part and their personal preferences to be able to help the effective sales of its new services and products.

Weaknesses:

Developing new solutions can change out very costly. If these technology fail to succeed in the market this can conclude in a huge loss which would be hard to recuperate from.

They can not introduce new systems where it isn't possible this may be because they're facing the legal issues within that country.

2) Porter's 5 makes:

By using the five pushes model of conclusion, competitor analysis network by understanding how the threat of new entrants, the bargaining electric power of clients, the bargaining electric power of suppliers, the threat of substitutes and your competition of other businesses and exactly how they affect the business directly.

Competitive Rivalry - Your competition in the UK for example is very much strong and big organizations like O2, Orange and T-Mobile have a substantial impact on earnings.

Bargaining electricity of buyers - Customers have the choice of many different type of product at the moment time because of the advanced of competition. In terms of different kind of packages and various prices people tend to go for other companies and buy their product.

Bargaining ability of suppliers - Vodafone is one of the largest network providers on earth and therefore they could use the benefits of economies of range and reduce their production costs. This allows these to increase their profit percentage compared to other companies and offer better a cost to value proportion to the client.

Threat of substitutes - There is a low threat of substitutes for Vodafone as they have established a good brand image. After that as they reap the benefits of economies of level they can sell their services at the same price like their opponents.

Threat of new entry - As there is absolutely no threat for other companies to enter the market because of rules and regulations and the high cost of licenses necessary to operate a network, Vodafone has to continue being efficient and lowering costs to be able to price match their opponents.

Threat of

New

Entrants

Bargaining

Power of

Buyer

Competitive

Rivalry

(O2, Orange, 3 mobile, T-mobile)

Bargaining

Power of

Supplier

Threat of

Substitution

Figure 01: Porter's 5 pushes of Vodafone

[Number Source: http://www. mindtools. com/pages/article/newTMC_08. htm]

4) BCG (Boston Consultancy Group) Matrix:

Question Marks

Stars

Dogs

Cash Cows High

Market Growth

Low

Low Market Talk about High

Figure 02: BCG (Boston Consultancy Group) Matrix of Vodafone

Personalities - The superstar with their products which is the key product they feature are the every month contracts they offer as these are incredibly popular amongst the clients.

Cash Cows - this is the merchandise which generated revenue but is at a level where it does not increase. The messaging services they feature generate good earnings for them and as there is no opportunity to develop as that this service is their cash cow.

Dogs - This might be their analogue services as they don't really generate income because of too much competition.

Question Make - This system is the one with high expansion probable and low market show. In this case it might be the 3g functions they provide. As there are other companies offering the same services it hard to get an increased market share.

Task 2

2. 1 Strategic Marketing Options for Vodafone

Marketing strategy always considers options where it can be applied. In Vodafone, the next marketing strategy options can be employed though both matrixes 've got some benefits and drawbacks as well.

General Electric/McKinsey (GE) Matrix:

GE matrix can be used mainly for market attractiveness. The evaluation and knowledge of market attractiveness is very important in deciding investment strategies in a country of operation. The advantages and drawbacks of GE matrix receive the following

Advantages

Disadvantages

Thorough competitive analysis provides a basis for standing relative durability of sections in their particular environment.

Formal description of components is not clear or simple (Johnson 1985)

Analysis is problematic for outsiders to replicate (Johnson 1985).

Determinants: Industry attractiveness and business durability.

The following body shows the concept of GE Matrix.

Figure 03: General Electric (GE) Matrix

[Source: www. marketingteacher. com]

Shell Directional Policy Matrix [2]:

The Shell Directional Insurance plan Matrix is another refinement upon the Boston Matrix. Across the horizontal axis are potential customers for business sector success, and across the vertical axis is a company's competitive functionality. Much like the GE Business Screen the location of your Strategic Business Device (SBU) in any cell of the matrix suggests different proper decisions. However decisions often span options and in practice the areas are an irregular shape and don't tend to be accommodated by pack figures. Instead they blend into one another.

Advantages

Disadvantages

Considers both, international functions of the business and opponents' features.

Market Position is fixed to market share. Assumes countries have secure political, interpersonal and economic conditions. Only regulatory aspects pertaining to Shell's products have been tackled.

Determinants: Company's competitive capacities and business sector potential clients.

The following amount shows the idea of SDP Matrix.

Figure 04: Shell Directional Plan Matrix

[Source: www. marketingteacher. com]

[2] http://www. mbaknol. com/strategic-management/shells-directional-policy-matrix/

2. 2 Analysis of ONLINE MARKETING STRATEGY Options for Vodafone

Despite the shortcomings of earlier studies and models, tries at getting an understandable model for determining international business strategy have been ongoing. The marketing literature presents a number of models made to guide managers to make strategic investment decisions for Vodafone Plc. Contained in that number are matrix approaches such as Shell directional insurance plan matrix (Robinson, Hichens, and Wade 1978), and GE/McKinsey (Taylor 1976). These models have each provided a distinctive contribution to the strategy process but each also has distinct disadvantages. The advantages and disadvantages of each are, particularly; worried for firms thinking about the international market is the actual fact that these models do not take into consideration the international environment. Many multinational companies still confront the situation of integrating environmental assessments into decision making in a systematic and objective manner. The duty facing them is how to translate recognition of the business situation into action. Previous models are limited in their generalizability across different types of establishments and actual environments worldwide.

Task 3

3. 1 Current Changes in the Marketing Environment in Vodafone

As Vodafone is a worldwide company and works in over 27 different countries, this makes studying the external environment quite difficult by using a PEST research. The PEST evaluation in this survey is mainly fond of Vodafone's UK exterior environment in conditions of strategic marketing management insurance plan.

PEST evaluation:

Political

Political factors can have a primary impact on just how businesses operate. Decisions created by the government affect our everyday lives and will come in the form of insurance policy or legislation. The Government's benefits of any statutory minimum wage affects all businesses, as do consumer, Health & Security laws and so forth. The current upsurge in global petrol prices is having a serious effect on major economies, it is estimated that Ј200bn has been added to the global fuel bill because the price increases started out.

Another political factor is OFTEL, the telecommunications regulator in the UK whose purpose is to ensure phone companies, meet their commitments under telecoms and competition regulations. The UK administration regulates this industry through OFTEL.

Economical

All businesses are affected by economical factors nationwide and globally. Interest plan and fiscal insurance policy should be set consequently. Within the united kingdom the local climate of the economy dictates how consumer may behave within society. Whether an economy is a boom, tough economy or restoration will also have an effect on consumer confidence and activities.

Economies internationally also have a direct effect on UK businesses, cheaper labor overseas influences the competitiveness of UK products nationally and globally. An increase in interest rates in america will effect the show price of UK securities.

A truly global player like Vodafone must be aware of economic conditions across all edges and ensure they employ strategies and tactics that officer their business and marketing investment.

Socio-cultural:

Within society makes such as family, friends, and media affect our attitude, interest and opinions. These forces condition who we have been as people and just how we behave and everything we ultimately purchase. The end users of wireless products are becoming increasingly alert to quality and expect a product that is reliable during use. GSM has been an unqualified success because it works, offers certain advantages over first era and reaches a price where everyone can access the technology. One problem that has been apparent over recent years is the high market vulnerability directed at new features and systems, which are not well proven and analyzed before launch. WAP was a primary exemplory case of this. A great deal of effort has been injected into WAP to make sure the first teething problems have been get over, but the community can sometimes show memory comparable to an elephant and changing views is a much harder marketing nut to crack. The market expectation for Bluetooth and 3G has been increased substantially so now we are in a critical level in fulfilling the advertised dream.

Technological

Advanced technology is changing the way businesses operate. THE WEB is having a profound effect on the marketing combine strategy of organizations. Consumers can now shop 24 hours a day, comfortably off their homes. Vodafone has been utilising the web for advertising such as a great deal of other organizations selling their business.

There is renewed interest by many governments to encourage investment in research and development and also to develop technology that will give their country the competitive advantage. The 'one-stop-shop' customer need, and the manufacturers' success in integrating mobile, cord-less and internet customer applications into an individual unit has meant that a cordless test company must consider all major technology and review each for his or her commercial benefits. Occasionally some technology developments will not make a profitable business in isolation. Vodafone has unveiled new technology such as Vodafone Live, and now the release of the new 3G cell phones means Vodafone will apply the new technology to their system to bring the service to the customer.

3. 2 Analyzing Vodafone's Potential Reactions to the Strategic Marketing Changes

3. 3 Recommendation and Conclusion

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