A Case Study On Vodafone Company Marketing Essay

Vodafone is one of the leading mobile communications company with setup in 27 countries and collaboration agreements with more than 35 countries, including Safaricom in Kenya. The company provided the opportunities for over 71,000 employees across the world and in 2008 had more than 289 million customers. More than 19 million people use Vodafone services in the united kingdom Vodafone’s aim is ‘to be the world’s number one mobile communications leader’ and a vital component of this is to ensure that customers beliefs and approve of the company. It achieves this by taking a responsible approach to the way it conducts its business. This augment its status and in order to develop customers loyalty. Vodafone’s business strategy and its Corporate Responsibility (CR) strategy are interlinked. The company trust that long-term business rewards come from doing business in

a sustainable way.

Vodafone’s approach to business is two-fold:

• to provide product extension – new features, dimensions and services in saturated

markets. These are areas like the UK, USA and Europe which have sophisticated users who want and expect new functions from their mobiles. Developing new ways of delivering products and services helps to keep existing customers and attract new ones. For example, 3G technology has improved the ability and quality of transferring voice and data. Very fast internet speeds allow extended services such as video calling, music downloads, mobile television and email messaging.

• to look for opportunities in emerging markets. These include some of the world’s

more remote areas, including parts of Africa, where many people do not yet have access to a mobile phone. The less developed infrastructure in these areas makes traditional landline telecommunications difficult. Vodafone is committed to providing these markets with the technology to develop communication that will help both economically and socially. There are now more than four billion mobile phones across the world and 64% of all users live in a developing country.

A brief history of Vodafone

The originality of Vodafone was Racal Electronic plc. Vodafone was bent in 1984 as subsidiary of Racal electronic. Before 1984 it was known as Racal telecom Limited. In contrast Racal Telecom limited was rewarded as UK’s first mobile licence in 1984.The Racal Telecom limited made the first mobile called midnight on the 1st Jan 1985. Vodafone was rapidly grew since its first mobile call in 1988. Vodafone able to reached 0.5 million customers in 5 years. In order to make more customers, the company introduced the roaming service in 1994. The company made the agreement for the roaming call between Vodafone and telecom Finland. Because of this intercontinental reach extends with licence and partnership in Germany, South Africa, Fiji, Australia and Greece. Afterwards Vodafone also introduced two new services like digital fax and text messaging. After a few years Vodafone expansion its capability in Netherlands, Uganda, Hong Kong, Germany, France. Vodafone’s customers reached 3 million by 1997.

Vodafone marketing strategy

A long term vision and strategy can be achieve by cautious development. Vodafone clarify its vision as well as mission of marketing strategy by the following clarifications of four ps.

Product

There are different production of Vodafone with huge features that provides customers with chance to play games, send and receives pictures to have different ring tones, receive information about travelling as well as view videos clips and received video message.

Place

– Vodafone operates more than 300 stores in the United Kingdom

– Vodafone also sells its product through independent retailers.

– Customers can see and handle products they are considering buying.

Price

– Vodafone looking for its services accessible to as many people as possible.

– It offers a lot of pricing structures to suit different customers groups.

– The price plans are available monthly basis as well as prepay option.

– Vodafone United Kingdom reward points for customers for every £1 spent on calls.

Promotion

-Advertising on TV, in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively. This is also known as above the line promotion.

Below the line

– Every stores have special offers, promotions and print of sale posters to attract those inside

the store to buy.

– The company develop better relations with the public in order to explain new products and

ideas.

– Vodafone’s stores, its products and its staff all project the brand image.

Swot Analysis

Strength

-Network coverage for calls and data almost 95% of the populations.

-Using Vodafone people are able to message, the internet and also sharing of videos, pictures and music through mobile phone.

-It provide the wide range of hand set as well as airtime plans to suit each and every type of customers and use.

– Vodafone proves itself one of the best communication network providers in the world.

Vodafone believes in creating long term partnerships with its suppliers in order to achieve this. My committing to buying large volumes over a number of years Vodafone can negotiate lower prices. This also remuneration the suppliers because they enjoy the greater security of having guaranteed orders. Vodafone lunch the new products and technology for the developing country in order to provide cheaper network communication system to those peoples.

In developed economies, mobile phones are considered a normal part of life and the

functions they provide add value to landlines. Customers expect increasingly sophisticated products. Vodafone’s integrated mobile system can be used for business, education or socialising. The latest handsets allow people to keep in touch with family and friends through emails, messaging and networking sites such as Facebook and Twitter. They can research and develop their interests online or play games, listen to music or watch TV in any location.

Opportunities

A business uses its strengths to take advantage of the opportunities that arise. Vodafone believes that its environmentally focused business conduct will result in good returns even in a price sensitive market.

Vodafone produced the M-PESA system in the developing country like Keney. This system involves:

There are over 2,200 M-PESA registered agents in petrol stations, supermarkets and other retail bases across Kenya and five million subscribers. The service has lots of benefits. For

example M-PESA has helped small businesses such as taxi drivers by enabling them to receive money for fares without having to drive around with lots of cash in their cars. The service was particularly helpful during a recent conflict in the country as it helped people to transfer money safely. M-PESA has also been used to buy everyday items, as well as to pay the rent, send funds to other people or buy phone airtime. It has even been used to pay school fees, as secondary schooling is not ‘free’ in Kenya. By providing safe, secure transfer of money,

Vodafone’s M-PESA system has:

• helped small businesses become more financially secure

• provided a safe way for wage earners to send money back home to their families

• solved the problems of carrying around large amounts of cash.

Following these achievements in Kenya, Vodafone has extended M-PESA into other emerging markets including Tanzania and Afghanistan.

Weaknesses

Vodafone has to acknowledge its weaknesses in order to improve and manage them. This can play a key role in helping it to set objectives and develop new strategies. Vodafone weaknesses may include:

-The size and scale of its global business. This could make it hard to control standards and quality. Some countries where Vodafone network and products are made don not implement the legislation to control working conditions. This could represent a weak link.

– Vodafone’s one of the greatest weakness is its cost.

-The need for low cost products. This needs to be balanced against producing good quality. Vodafone also needs to differentiate itself and its products from competitors. Vodafone believes there is no compromise between being able to offer good quality products and low prices.

-Vodafone needs to keep good communication with its customers and other stakeholders about its activities. The scale of the business makes this a difficult task. Vodafone produces publications in print and online and carries out major TV and radio campaigns to enable the business to communicate with different target audiences.

Threats

If a company is aware of possible external threats, it can plan to counteract them. Vodafone can use certain strength to defend against threats in the market by generating new ideas.

Threats to Vodafone may stalk from:

-Market forces- more competitors entering the low price in the new product and network markets. Vodafone needs to underpin its unique qualities to compete with these.

-Economic factors- The recession slows down consumer spending and disposable income reduces.

Vodafone addresses these issues in many ways. It manages weaknesses and threats to create a positive outcome.

Vodafone’s high prices create appeal amongst its customers in low financial times. It is important to put prices as low as possible when the retail sector is depressed. Vodafone’s pricing strategy targets consumers with tough financial resources. Its products will also appeal to those with lower budgets through good quality and design. The company must ensure that it is always recognised as having the lowest prices on the market in the future. Communication plays an important role here.

Conclusion

Vodafone uses the capabilities of the mobile phone to bring value to both developing and developed economies. The impact of mobile technology on developed markets over recent years has been immense and has focused on providing added value to customers through new and improved functions and features. By comparison, the impact of technology on emerging markets such as Kenya has provided a real lifeline both to individuals and to small businesses. The mobile phone has helped economic development in emerging economies. With growth in the provision of mobile phones, Vodafone has enabled great improvements in facilitating the flow of money and information, which is vital for economic growth. By improving Kenya’s telecommunications infrastructure and by providing the M-PESA system,

Vodafone has enabled more people to access and transfer money. This has also helped socially by helping people to take advantage of employment opportunities away from their home towns and villages.