2011

Marketing Management
ASSIGNMENT

Title: Marketing Management

Submitted By:

Submitted To: Debbie Pearson Date of Submission: 23 Feb. 11

TABLE OF CONTENTS

1. 2.

INTRODUCTION: ........................................................................................................................................ 2 MARKETING PLAN FOR VODAFONE: .................................................................................................. 2 2.1 What does the company do? ............................................................................................................ 2 2.1.1 Mission and Vision statements: ................................................................................................ 2 2.1.2 Products & services it offers: .................................................................................................... 3 2.1.3 Growth objectives and plans: .................................................................................................... 3 2.2 2.3 2.4 2.5 Company goals: .................................................................................................................................. 4 Market segmentation: ........................................................................................................................ 4 Competition: ........................................................................................................................................ 5 Vodafones strategy: .......................................................................................................................... 5

3.

CRITICAL EVALUATION OF VODAFONES MARKETING PLAN IN RELATION TO ITS MARKETING ENVIRONMENT: ................................................................................................................ 6 3.1 3.2 The Big Question: ............................................................................................................................... 6 Moving with the Time: ........................................................................................................................ 7

4.

IMPACT OF TECHNOLOGY AND NEW MEDIA ON VODAFONES FUTURE MARKETING PLANS: ......................................................................................................................................................... 7 SUSTAINABILITY WITH REGARD TO VODAFONES MARKETING STRATEGY AND HOW IT WILL IMPACT ITS REPUTATION IN FUTURE:..................................................................................... 8 5.1 5.2 Both strategies go hand in hand: ..................................................................................................... 9 Strengthening its reputation: ........................................................................................................... 10

5.

6.

APPENDIX: ................................................................................................................................................ 11 BACKGROUND OF VODAFONE: .............................................................................................................. 11

7.

BIBLOGRAPHY: ........................................................................................................................................ 13

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1. INTRODUCTION: This assignment is based on the concept of Marketing, as described by Kotler, which is a process by which companies create value for and build strong relationships in order to capture value from customers in return. In order to demonstrate this concept, the company selected for this assignment is Vodafone U.K. which not only put the customers at a pedestal but also shows respect for & values its employees.

2. MARKETING PLAN FOR VODAFONE: Following is an outline of Vodafones Marketing Plan: 2.1 WHAT DOES THE COMPANY DO? In order to start or sustain in the business, a company needs to answer questions like; What do we do? Why do we need to do what we are doing? What is our final objective? How do we go about in achieving our mission? Whom do we serve? 2.1.1 MISSION AND VISION STATEMENTS: Vodafones mission statement suggests, We will be the communications leader in an increasingly connected world. whereas Vodafones vision statement states, Our vision is to lead the industry in responding to public concerns regarding mobile phones, masts and health by demonstrating leading edge practices and encouraging others to follow With these values ingrained, Vodafone strikes when the iron is hot. Good service and at the same time health concerns are what the people are concerned about and Vodafone caters these two concerns at the same time.

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2.1.2 PRODUCTS & SERVICES IT OFFERS: In order to be a leader in the market, an organization needs to adopt effective marketing strategy which lies in anticipating the customer needs at the right time. In the case of Vodafone it needs to stay equipped with latest technological innovation in the field of telecommunications as well as keep consistency in the quality of service (QoS) it offers for that is the prime requirement for the amount of competition it faces in the industry not alone in U.K. but world wide. Vodaphone offers products and services which ease consumers in staying connected and that too with the latest technological advances. Its aim is to be the first in the market to offer technological innovation. For example; Vodafone live offers customers to use an icon-driven menu for picture messaging, download ringtones, images, information and color games.

2.1.3 GROWTH OBJECTIVES AND PLANS: Vodafones future plans is to expand world-wide and to be amongst the top five brands globally and to achieve this objective, its making use of dual branding by which it acquires the local top most brand of countries across Europe, Africa, Asia and United States and demerges from the local brand and becomes the sole owner. It also aims to expand its customer base and retaining the existing ones through technological innovations which the new generation seeks and through improved quality which executives and professionals expect.

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2.2 COMPANY GOALS: Vodafone, like all other companies, aims to increase revenue by improving profit margins. This could be achieved by creating value for consumers of its products and services. Segregating goals as short-term and long-term, the company should focus on its quality consistency and increasing its customer base through different offerings as its short-term objective. However, the long-term objective should include geographical expansion and staying tuned i.e. forecasting new technological advancement about to hit the market and being the first one to offer those services. Their long-term objective should also include steps to increase their brand value and anticipating customer needs in the era they are operating in.

2.3 MARKET SEGMENTATION: Vodafone attempts to cater all types of customers offering different packages for different types, class and age of customers. Its aim is to reach as many people as possible from young to old, from labor class to sophisticated business professionals, from amateurs to more technologically sound individuals. It also offers different packages in terms of pricing to suit different societal segments offering pre-paid and post-paid services with the ease to use internet facilities to top up their accounts in case of emergency or lack of time.

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2.4 COMPETITION: Talking about competition, Vodafone needs to constantly stay in touch with technological innovation and being leaders in the market to have offered those services enjoying the first mover advantage It also needs to carefully examine the related products and services offered in the market and guarantee its customers much improved and better services which it offers without compromising on quality. It also needs to be sure that it caters the needs of all types of its customer segments. As an example, young generation always go for the latest mobile phones with excellent services at reduced costs. They can be influenced first and foremost by the friends circle to get better than the other, besides internet aggregator website provide them with a comparative analysis for products for the best value for money.

2.5 VODAFONES STRATEGY: Vodafone has adopted excellent strategy as an outcome of a careful marketing research. To promote its brand globally, it has used leading

sports stars like David Beckham and Michael Schumacher. In this way, they reach a large number of fans who relate the celebrity to Vodafone instantly as they communicate Vodafones brand value.

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Vodafone also adopts a mix of TV Ads, billboards highlights, magazines, special offers, various promotions and good public relations to reach its customer base.

3. CRITICAL EVALUATION OF VODAFONES MARKETING PLAN IN RELATION TO ITS MARKETING ENVIRONMENT: In terms of the marketing environment in which Vodafone operates, it is quite a giant in the telecommunications industry, not only in U.K. but virtually globally. It is in quite a good position acquiring local brands world-wide and creating its own in their place, thereby giving Customers internationally, a feel for their own brand being managed by Vodafone in their country. 3.1 THE BIG QUESTION: Vodafones marketing plan is quite well-organized and it has the advantage of operating across a range of markets thereby giving it an edge to benefit from massive cost advantage in terms of cost savings. But the big question mark is Planning for Competition. Operating in a technological market which deals with innovation every second is not a piece of cake.1 And therefore, Vodafone also needs not only to have a sound knowledge of technological innovations but in fact also needs the art of forecasting upcoming technology and ways to capture the market & increase its subscribers with the new direction it plans to heads in, without mismanaging the limited budget it has set for itself.

(2009) Vodafone Marketing Mix. Cited at <http://www.slideshare.net/pranita.jain24/vodafonemarketing-mix> (Accessed 21 February 2011)

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3.2 MOVING WITH THE TIME: Vodafones marketing aim is to retain market leadership.2 Since its strategy is product-led, its constantly aims for R&D in latest technological advances catering consumers growing demands for new products and improved existing products. Since technology is an ever-growing industry, products and services reach its maturity state in a very short span and therefore the company constantly needs to update its portfolio. For Example; Vodafone Live provides customers with on-the-move information services. 4. IMPACT OF TECHNOLOGY AND NEW MEDIA ON VODAFONES FUTURE MARKETING PLANS: Vodafone is itself a high-tech based Telecommunications Company which does not only offer telephony products and services but also broadband and other technologically advanced services. In this way, Vodafone needs to be discernible and needs to have a constant eye on the new technological innovations and new media available in order to benefit from the first mover advantage in the market. Besides, Vodafone also needs to plan its future marketing strategy accordingly. While talking about Vodafone live! 3, they have plans to enhance their service by offering picture messaging libraries, video clips and video telephony, which happens to be a totally new attraction in the telecommunications industry where you can see the person while talking to him/her, on the move. Their plans also include in

The Advantages of Sponsorship. Available from <http://www.thetimes100.co.uk/downloads/vodafone/vodafone_7_full.pdf> (Accessed 21 February 2011) 3 (2009) Vodafone Marketing Mix. Cited at <http://www.slideshare.net/pranita.jain24/vodafonemarketing-mix> (Accessed 21 February 2011) 7|M a r k e t i n g M a n a g e m e n t

improving download speeds which causes great hassle to the customer if not available when needed. The same article also talks about another service i.e. Vodafone Mobile Connect Card, which facilitate customers to connect to their business applications even when they are out of office. These are all marketing strategies which especially such high-tech firms should plan way in advance, to provide convenience to their customers, understanding their needs and adds value to the companys products, services and brand. Vodafone has announced to launch 4G phone network but its competitor metroPCS in the U.S. would be the first to actually launch 4G services 4. Vodafone, therefore, needs to take moves strategically by showing results rather than making claims.

5. SUSTAINABILITY WITH REGARD TO VODAFONES MARKETING STRATEGY AND HOW IT WILL IMPACT ITS REPUTATION IN FUTURE: Vodafones business and sustainability strategy are inseparable.5 They offer a wide range of products and services but at the same time do not shed from their responsibility of protecting the environment.

Ray B. (September 6, 2010) Vodafone announces 4G roll-out for Germany. <http://www.theregister.co.uk/2010/09/06/german_lte/> (Accessed 21 February 2011) 5 (2010) Our Strategy. <http://www.vodafone.com/content/index/about/sustainability/approach/strategy.html> (Accessed 21 February 2011) 8|M a r k e t i n g M a n a g e m e n t

5.1 BOTH STRATEGIES GO HAND IN HAND: Their eight strategic objectives supporting their priority goals are categorized under6: Responsible, ethical & honest behavior o Ensure Vodafone and our suppliers have an ethical supply chain o Deliver accessible products and services Eco-efficiency doing more for customers with less o Reduce our CO2 emissions by 50% by 2020 o Be recognized as having the most customer-relevant environmental sustainability initiatives in our industry o Establish joint CO2 reduction strategies with key suppliers o Build e-waste management capacity in key emerging markets Creating sustainable societies o Deliver innovative products / services recognized as contributing to the Millennium Development Goals o Provide 10 million carbon-reducing M2M connections Vodafone also gains trust of their customers by giving priority to matters like privacy and online restrictions for children under age and this is what makes Vodafone a brand to rely upon. With these sustainability goals, Vodafone plans its marketing strategy to serve the community while gaining their customers trust and committing profits to their shareholders with an increasing customer base.

(2010) Our Strategy. <http://www.vodafone.com/content/index/about/sustainability/approach/strategy.html> (Accessed 21 February 2011) 9|M a r k e t i n g M a n a g e m e n t

5.2 STRENGTHENING ITS REPUTATION:

In order to build a good reputation in the society, Vodafone has taken a number of steps to contribute to environmental and societal sustainability, of which some initiatives are mentioned below7: A business unit, Vodafone health solutions, providing health products and services. Installation of more than 4400 free-cooling boxes, resulting in 9% reduction in CO2 emissions. Introduction of Community phones in under services areas in South Africa to facilitate telecommunication access to the poor class there. Measures taken to re-use or recycle old phones instead of trashing them. This helps save the environment from harmful emissions and relic.

Pattberg F. (June 9, 2010) Vodafone publishes its 09/10 Sustainability Report. <http://www.sustainabilityreport.net/vodafone-publishes-its-0910-sustainability-report/> (Accessed 21 February 2011)

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6. APPENDIX:

BACKGROUND OF VODAFONE:

Vodafone U.K. is a part of the Vodafone Group which is one of the largest distributors of broadband and telecommunications products and services in terms of active customer base, catering three major groups of customers8: Private individual Small businesses Large organizations Vodafone Group emerged in 1985 and is currently the seventh most valuable brand spread out in 30 countries with more than 359 million customers worldwide, with its head quarter based in London, United Kingdom9. It is a public limited company with listings on London (LSE) and New York Stock exchanges (NYSE). Having formed in 1982, Vodafone was a joint venture between three companies, namely Racal Electronics plcs subsidiary Racal Strategic Radio Ltd with an ownership of 80%, Millicom with 15% ownership and the Hambros Technology Trust with 5% stake. This network was called Racal Vodafone with the latter coming from voice data fone which was the firms objective to achieve in the telecommunications industry then.

The Advantages of Sponsorship. Available from <http://www.thetimes100.co.uk/downloads/vodafone/vodafone_7_full.pdf> (Accessed 21 February 2011) 9 (2011) About us. Cited at <http://www.vodafone.com/content/index/about/about_us.html> (Accessed 21 February 2011) 11 | M a r k e t i n g M a n a g e m e n t

Vodafone was then officially launched on January 1, 1985 as the first cellular network to launch in the U.K., and with Racal Electronics having a major stake in the company kept renaming the company from Racal Telecommunications Group Limited in 1985 to Racal Telecom in 1988 to the brand name Vodafone in September 1991. Soon after, as the decades went by, Vodafone, the mobile telephony giant, captured the market with timely acquisitions and became a leader in the industry. With continuous success stories i.e. from launching its digital (GSM) mobile phone service in 1991 to acquiring two thirds of Talkland and Peoples Phone in 1996 and 80% of Astec Communications, Vodafone captured the industry by leaps and bounds10. The new millennium led Vodafone to become the largest mobile telecommunications company being one of the top ten companies globally in terms of market capitalization as it acquired Mannesmann AG doubling the size of Vodafone Group. In the same here i.e. 2000 it also got the largest available 3G license and offered GPRS services to its valued customers. As years went by Vodafone introduced more advanced and latest technological innovations in the products and services its currently offering, strengthening not only its position but also the trust amongst their subscribers and attempting to become world leaders.

(2011) History Company Beginnings. Cited at <http://www.celtnet.org.uk/telecos/vodafone.php> (Accessed 21 February 2011)

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7. BIBLOGRAPHY:
(2008) Top 20 Companies to Work For. Available at <http://graduate.monster.co.uk/9446_enGB_p1.asp> (Accessed 21 February 2011) (2009) Vodafone Marketing Mix. Cited at <http://www.slideshare.net/pranita.jain24/vodafonemarketing-mix> (Accessed 21 February 2011) (2010) Our Strategy. <http://www.vodafone.com/content/index/about/sustainability/approach/strategy.html> (Accessed 21 February 2011) (2010) Sample Marketing Plan. Cited at <http://www.morebusiness.com/templates_worksheets/bplans/printpre.brc> (Accessed 21 February 2011) (2011) About us. Cited at <http://www.vodafone.com/content/index/about/about_us.html> (Accessed 21 February 2011) (2011) Corporate. Available from <http://www.vodafone.co.uk/corporate/index.htm> (Accessed 21 February 2011) (2011) History Company Beginnings. Cited at <http://www.celtnet.org.uk/telecos/vodafone.php> (Accessed 21 February 2011) (2011) History. Available from <http://online.vodafone.co.uk/dispatch/Portal/appmanager/vodafone/wrp?_nfpb=true&_pageL abel=template09&pageID=PAV_0015> (Accessed 21 February 2011) (2011) Shareholders in recycling and re-use. Available from <http://www.thetimes100.co.uk/case-study--stakeholders-recycling-re-use--41--304--1.php> (Accessed 21 February 2011) Basic Elements of a Marketing Plan. Cited at <http://www.nmsbdc.org/pdf/servmarketingplan.pdf> (Accessed 21 February 2011) Gohring, N. (January 24, 2006) Competition pressures Vodafone results. Available at <http://www.infoworld.com/t/communication-and-collaboration/competition-pressuresvodafone-results-316> Accessed 21 February 2011) Pattberg F. (June 9, 2010) Vodafone publishes its 09/10 Sustainability Report. <http://www.sustainabilityreport.net/vodafone-publishes-its-0910-sustainability-report/> (Accessed 21 February 2011) Ray B. (September 6, 2010) Vodafone announces 4G roll-out for Germany. <http://www.theregister.co.uk/2010/09/06/german_lte/> (Accessed 21 February 2011) Smith, E. (November 13, 2010) How to Build Your Marketing Plan & Company Description. Available from <http://www.ehow.co.uk/how_7492441_build-marketing-plan-companydescription.html> (Accessed 21 February 2011) The Advantages of Sponsorship. Available from <http://www.thetimes100.co.uk/downloads/vodafone/vodafone_7_full.pdf> (Accessed 21 February 2011) Vodafone Group Plc. Cited at <http://www.csrglobe.com/login/companies/vodafone.html> (Accessed 21 February 2011)

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Vodafone. Presented at <http://www.slideshare.net/mustafa1210/vodafone-4261566> (Accessed 21 February 2011)

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