Tajudeen Ogunsola

Project – Marketing Plan

MOMN009H7: Marketing Management
Our journey
 1985
Timeline – We have made progress. 2014
(March 31st)
1st mobile
Has 434 Million Global
phone call made
subscribers

2006
‘The power to you’
1982 look
established 1997
as Changed
to red 2017
New Global Brand Position
Strategy

1984
Racal & Millicom partnership 1995
Became Vodafone 1st
1st operator 1997 to launch
HQ in London with 5 million Rebranded 3G voice call
users
2006 2010
Entered 26 markets, little nip-tuck
1991 Control 16 mobile operations
Business Sector:
Telecommunications
1st to launch & hold 10 minority stakes in
digital service other Telco's
Operating Geography:
United Kingdom, Global

Revenue: €2.7 billion (FY

The future is exciting.
ending March 31st 2017) – 1994
1st Retail store 2012
UK Marketing budget: 1st 4G Data-data-focused
£55 Million per year
1995 operator
Source: Vodafone, 2017;
Acquired
Marketing Week, 2017; two third of
Forbes, 2017 Talk Land
Vision & Approach
Vision Approach

Unleash the power of • Delivering transformational solutions

Vodafone to contribute
to sustainable living for all • Operating responsibly and ethically
The
Vodafone
Way

Subscribers
Stakeholders
People
&
Culture

Code of Business
Conduct principles

Source: Vodafone Group Plc, 2017

Strategy Direction
Strategy
Eliminates the negative associations of
poor service, excessive fees and
inadequate customer service. Implement a
comprehensive, integrated marketing Goal
communication programme that positions
Vodafone in the profitable premium
segment

(A). Strengthen cross-platform communication

channels to encourage purchasing decisions and
build customer loyalty.

(B). Increase monthly contract sales; PAYG, SMS /

Objectives Voice and data services.

(C). Strengthen the competitive advantage to

expand market leadership.

Source: Based on SWOT Analysis by (Baines and Fill 2014)

SWOT Analysis
SWOT Analysis
1. Profitable revenues 1. Poor network convergence.
generated.

S W
2. Losing customers.
2. Increased subscriber base.
3. Decrease of brand
3. Differentiator strategy is valuation.
fuelling growth.
4. Impact of Brexit
Strengths 4. Premium cost Weaknesses

1. 4G capabilities.

O T
1. Strong competition
2. Improvement of network
coverage. 2. Low margins.

3. Digital “gigabyte society”. 3. Mobile Number Portability.

4. Emerging markets. 4. BT and EE monopoly
Opportunities Threats

Source: Based on SWOT Analysis by (Baines and Fill 2014)

PESTLE
PESTEL Analysis

▪ High spectrum cost, amidst ▪ Investment in 5G (FT, 2017).

▪ Growth in SVOD (Subscription ▪ Regulatory clearances
talk of 5G (Ofcom, 2017)
Video on Demand) service via hindering business
▪ Impact of Brexit on business
growth (parliament, 2017) mobile from networks restructuring (Gov.uk, 2017)
providers (Williams, 2017)

P S E
Politics Social Environment

E T L
Economy Technology Legal

▪ Political & economic ▪ The gigabit society (His

uncertainty causing sharp Technology, 2017). ▪ Vision of zero environment
currency fluctuations ▪ Growth in smart devices is harm safety culture (Jackson,
(Parliament, 2017) giving consumers a ‘connected 2017).
mind-set’ (GSMA, 2017) ▪ Increasing reused and
recycling culture (Freehill,
2017).
Source: Based on PESTLE Analysis (Francis Aguilar, 1967)
Porter’s Five Forces
Porter’s Five Forces
Competitive Rivalry
Price competition to attract
subscribers (Mintel, 2017).
Potential New Entry Changing business models by MVNO (Mobile Virtual
Network Operators) (Ofcom, 2017).
Threat from New Entrants
MODERATE
Buyers A "better offer" is the second most common factor for
Bargaining power of customers switching suppliers, which gives buyers (subscribers)
(buyers) more bargaining power (Mintel, 2017).
HIGH
Suppliers
Bargaining power of suppliers Competitors are strong and pose high threats (EY,
20217).
HIGH
Substitutes The replacement of traditional telecommunications
services by MVNOs, but the threat is moderate for the
Supplier's power of negotiation
time being (Deloitte, 2017).
MODERATE
Source: Based on Porter’s Competitive Five Forces (Michael E. Porter, 1979)
BCG Matrix
BCG Matrix Low
AVERAGE flow versus those of competitors

High

High Star Question Marks

QM2) Build an aggressive market

S1) Maintain & increase the
share for broadband, data and
relative market share for monthly
internet companies and then
data / contracts & PAYG with
follow the PD4 strategy.
aggressive marketing
investments.
Invest in resources to drive 4G
infrastructure forward, to drive
up profit to QM2.
GROWTH
Relative Market
Share (Cash
generation) Cash Cow Poor Dog

C3) Voice & SMS on contract PD4) Minimize investments in

monthly is a prerequisite to
generate continuous cash flow
and preserve Vodafone's relative
market share. Invest defensively
in resources and marketing to
drive brand leadership and
maximize cash flows into PD4.
Low
voice and SMS, both products
are a monthly contract
requirement, drive broadband
services in question marks to
continue positive free cash flow.

Source: Based on Boston Consulting Group (BCG Matrix), 1970

STP – Segmentation, Targeting & Positioning
STP – (Segment, Target & Position)

STP – Implementation
Analyse, Apply & Act
before Positioning
Segmentation
i. Identify the firms dimensions
&/or variables to segment
market.
ii. Analyse opportunities for
market growth.
iii. Support segmented
group(s)/cluster(s) with
updated relevant findings.
purchasing power above
fathers with kids aged 16
Marketing Mix
SIVA framework
is used for Vodafone
Targeting
i. Select the firm’s targeting
strategy/methods
ii. Apply appropriate
market/brand
challenge(s) to target Position
strategy.
i. Identify firms customer
perception & or opinions.
ii. Position offering (product,
service &/or experience) in
the mind of customers.
Target 1: ‘younger Target 2: ‘matured iii. Now, apply this to the
millennials’ looking for millennials’ adopters in Marketing Mix strategy.
smartphone, with socio-economic group A.
Aged 46-75, price-sensitive
£1,000. Aged 18-45, non-smartphone owners,
looking to upgrade or
or under. purchase new £500 and
above range.

Source: Based on ‘STP – Segmentation, Targeting & Positioning’, (Aaker, 1995; Kotler & Keller, 2011; Bayer, 2010)
Segmentation Contribution Expectation Value Commitment
Customer Value The contribution of the Expected (predicted) Residual profitability Type of relationship (i.e.,
customer (e.g., new or contribution to Vodafone (e.g., 6, 12, 24, 36 PAYG, SIM-only or
existing) to the UK's profitability based on months) of customer monthly contract) based
profitability of Vodafone expected "lifetime" relationships based on on loyalty to Vodafone UK
UK is based on the relationships. the value of income
current relationship.
Segmentation High roller Budget candy Negotiator Explorer
Customer Promote a contract with SMS dialogue relationship Receptive to offers, but Suitable candidate for VAS
Behaviour premium phones. only, but can NEVER opt-in. incentives are a MUST! (SVOD services or third-
party) offerings.
Segmentation New Growth Maturity Decline
Customer Will be a new customer. Opt for a new contract, buy The use of the End of the relationship
top-ups, upgrades or get a customer's phone is between the parties.
Life Cycle second phone. stable

Segmentation Challenger Unhappy Sally/Bob Disloyal Goner

Customer Customer circumstances The dissatisfaction of Loyalty to several It was great while it
Migration changed or sought customers but the competitors lasted.
variety. potential to stay.
Source: Based on ‘Customer segmentation in the telecommunications industry’, (Bayer, 2010)
Target Customers
TARGET 1: YOUNGER MILLENNIAL
VODAFONE UK STRATEGY: ‘The future is exciting. Ready?’
Target 1: Connect with fathers with children aged 16 or under ‘younger millennials’ looking for smartphone, including accessories with
purchasing power above £1,000. Aged 18-45 target the groups, using through digital communities across regions, to retain existing subscriber’s
and gain new subscribers.
BUSINESS STRATEGY
EXPLORE, ATTRACT AND PULL YOUNGER MILLENNIALS TO THE BRAND OFFERING BEST FLEXIBILITY AND DIGITAL CONTENT MOBILE EXPERIENCE NETWORK

BUSINESS GOALS
DRIVE PAYG, SIM- ONLY & FLEXIBLE CONTRACT BUNDLES TO INCREASE ANNUAL REVENUES

INVEST IN 3 KEY AREAS TO GENERATE GROWTH THROUGH A VIRTUOUS CYCLE PLAN

Mobile Handset Ownership Contract & PAYG Data Bundles & Digital Content

Push Pull
Push ‘All
innovative Contract,
Things
premium Data &
Digital’
hardware Voice

Unlimited
“Future Earn Drive
Change Build on Data for
optimism” Customer expectation for
expectations Experience experience Best
campaign Loyalty
Experience

AI; Voxi; Entertain

Push
Revenue SVOD; Revenue Revenue urself –
Uninterrup Movies,
growth Digital growth ted Service growth
Content music, & SM
TARGET: MATURED ADOPTERS
VODAFONE UK STRATEGY: ‘The future is exciting. Ready?’
Target 2: Connect with male and female ‘matured millennials’ adopters in socio-economic group A. Aged 46-75, non-smartphone owners, who
are price-sensitive but looking to upgrade or purchase new in the £500 and above range. Actively pull them into the brand using OOH media
(television, radio & billboard ads) and email marketing, offering incentives to retain existing subscriber’s or discount for new subscribers.

BUSINESS STRATEGY
ATTRACT,REASSURE AND WIN MATURED MILLENNIALS TO THE BRAND WITH INCENTIVISE AND DISCOUNTED OFFERING, SERVICE-FOCUSED NETWORK

BUSINESS GOALS
DRIVE PAYG, SIM- ONLY & FLEXIBLE CONTRACT BUNDLES TO INCREASE ANNUAL REVENUES

INVEST IN 3 KEY AREAS TO GENERATE GROWTH THROUGH A VIRTUOUS CYCLE PLAN

Mobile Handset Ownership Contract & PAYG Data Bundles & Digital Content

Push Push
affordable Push ‘Hello
premium
Discount World’
phones offers

“connect Add Support,

Unlimited
Develop Service &
Provide with friends & Data for
Experience
support love” Family to Loyalty Best
with
campaign Contract Experience
Vodafone

Watch, listen
Access Push & Talk to
Revenue Revenue Revenue
growth
Digital growth
Internet
growth
your
Access favourite
Content celebs/BFF’s
Positioning
Positioning
Vodafone's new position, based on the IMC plan proposed for 2018, is to reposition the brand in the premium segment.

High Cost

Vodafone's current position on the perception map is based on five key questions answered in the 2017 Mintel
survey.
1. Brand Attitudes 2. Brand Map 3. Brand Personality 4. Key Brand Metrics 5. Brand Awareness
High

High

Quality
Quality

High
Low
Low Cost

Source: based on Positioning Theory by Wedel et al, (2000)

Low

Low

Source: based on 2017, Mintel Survey

Marketing Mix
Marketing Mix
SIVA Model replaces the 4Ps for a
customer-centric driven connectivity
experience.

Traditional

NEW

Experience

Solution, Information, Value & Access = SIVA

Source: Based on SIVA Marketing Mix framework by (Dev and Schultz, 2005a, b, c )
SIVA Framework Model
 SIVA Model
OFFER VALUE EXPERIENCE RELATIONSHIP

SIVA Mix Solution Information Value Access

PRODUCT is SOLUTION: PROMOTION is INFORMATION: PRICE is VALUE: PLACEMENT is ACCESS:

Vodafone's sales are based Vodafone provides subscribers with Prices are based on the values of The distribution of products is not
on subscriber needs. information to decide. the "subscribers" needs and not dictated but is based on the
on competitive offers. preferences of the subscriber.

S The solutions
Vodafone’s
offering I Customers
communication
preferences V Vodafone’s
distribution
marketing
channels
A Engage
&
sustain
relationship

4Ps Mix Product Price Place Promotion

Source: Based on SIVA Marketing Mix framework by (Dev and Schultz, 2005a, b, c )
Campaign Timeline

Fit for growth

Campaign Timeline
Pre- Launch & Post-Launch
Key Implementations

STEP STEP STEP STEP STEP

01 02 03 04 05

Review and algin Recruit all third- Collect department Digital: ‘Pull Strategy’ Youth: SVOD offer with
Vodafone’s internal party agencies agreements for ‘signs Netflix & Amazon 6 months
communication to offs’ and launch IMC Keyword campaigns
attached to re- free (High-end phone
IMC strategy strategy; *Digital. SEO activation
positioning products only)
project. Set out Twitter: simulate
Social Media PR, Matured: Discounted offer
briefs for PR discuss on Vodafone
Advertising, Interactive; for existing subscribers
agency to roll-out
Postal, Apps; Radio & TV Instagram: Post latest upgrading or Free
PR campaigns.
handsets & partner earphones for new
with influencers. customers.
Conclusion

Stay connected your way.

 Fit for growth

Vodafone's success is based on strong financial performance, revenue growth and productivity improvements.

FINANCIAL Revenue Growth Productivity Improvement:

Push the topline up Annually increase bottomline
PERFORMANCE

This is achieved by offering subscribers a great value.

CUSTOMER/ Customer Acquisition: Don’t sell Customer Retention: Thrive on a culture of

MARKETING one – offs; sell groups intimate customer contact
GROWTH
Improvements in management, process excellence and organizational effectiveness
drive the company forward.

Operational Product / Services Marketing Sales Management: Solid

Management: Increase Management: Enhanced Management: Build organization with effective
PROCESS throughput & quality with solid program support brand awareness leadership
EXCELLENCE

'The future is exciting. Ready?'

Human Capital / Competencies: Right people Culture of Performance & Accountability:
PEOPLE & in the right positions More rigorous attention to business metrics
LEARNING
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Thank you

Questions?
Marketing Plan, 2018