The Strategic marketing applied by Orange

The Orange brand is central to company’s vision and success “A brand is a promise delivered” It was developed with flexibility to cross the borders and to challenge the conventions of mobile telephony.

In the year 1996 it entered into FTSE-100 becoming the youngest company ever to enter.

It is the Fifth largest customer in the world, with over 189 millions of customers as on December 2009.

Orange group serves more than 175 million customers in 5 continents. Today Orange is one of the most powerful brand in the word. It is number 3 in Europe in respect of Tele communication and Number 1 in respect of Broad band services.

On 1st of July 2010, Orange in UK and T – Mobile in UK became the UK’s largest communications company.

Key Person: Richard Stephen (CEO)

1.1 Impact of Organization strategy on the Marketing Plan:

Organizational strategy represents the complete set of activities that an organization chooses to perform to meet its mission, goals, and objectives. Successful implementation of organizational strategies requires a crucial understanding of the linkages between resources, activities, and the desired outcomes.

Organizational strategy has two key dimensions: Conformance and Performance. The conformance dimension is intended to ensure that an organization meets its compliance on accountability and assurance requirements, while the performance dimension is to ensure that value is created and resources are utilized appropriately.

Oversight committees have been established for decades that monitor the conformance requirements. However, it is important to recognize that there have been no explicit strategic oversight bodies until recently. Organizations are starting to realize that these two dimensions need to be balanced appropriately. In the following paragraph we will examine that we will examine how marketing plan affects and contribute to both dimensions of its organizational strategy.

On the other hand, Marketing Plan is a document describing a firm’s potential customers and a comprehensive strategy to sell them goods and services. It is a written document that details the necessary actions to achieve one or more marketing objectives.

The impact of organizational strategy is very foundation. Marketing plan is always made in the light of organizational main strategy. It is a part of overall organizational strategy and works under the umbrella of overall organizational strategy which will lead to achievements of the main objectives of the organization.

As mentioned above that organizational strategy has two dimensions conformance and performance, both dimension are need to be consider at every strategic level. Orange is a public limited company and has to maintain the discipline of cooperate governance and procedures of regularity body like “Ofcom” and Financial service authority FSA therefore it has to make such marketing plan which ensure that it product and service compliance with mentioned regularity bodies that covers the conformance dimension of organizational strategy.

Secondly, performance dimension of organizational strategy focuses a business plan that is increasing value through great marketing mix, marketing strategy and product positioning which covers the performance dimension of organizational strategy.

1.2 Components of Marketing Plan:

There are following components of marketing plan.

Executive Summary

Introduction / State of Business

SWOT Analysis

Objectives and Marketing Strategy

Implementation: (4Ps/ 7Ps)

Financial Implications

Control and Evaluation

1.3 Risks issues within a Marketing Plan:

Risks are likely events that will significantly lower the volume base, raise the required spending rate, or have some other adverse effect on margins or market share.

An effective market plan should consider the key risks to the business and organizational overall strategy and presents contingency plans to be followed to minimize the negative impact of these risks.

Most key risks involve competitive actions not directly addressed in the marketing plan, possible internal operating problems or the failure of the marketing programs to deliver what is expected. The impact on the volume base or spending rate is then estimated and a specific contingency plan to overcome the situation is proposed. It also includes an explanation of what performance measures and levels will trigger implementation of each contingency plan. Close monitoring of these measures is consequently an important control function.

2.1 Level of Importance of each component of a plan

First will be the SWOT analysis

SWOT analysis :

SWOT analysis is one of the major components of a plan

It is the Strength, Weakness, Opportunities and Treats of the Organisation; It is the strategic planning method which helps the marketers to focus on key issues.

Marketing Strategy of Orange: The marketing strategy of Orange will be explained at the later stage of this work by using Ansoff growth matrix strategy model. It is also regarded as one of the important component of the plan, because it states what Orange is doing in terms of its business nature.

4 p’s of Orange : 4 p’s which are Product, Price, Place and Promotion also forms an important basis of the plan, It will help orange to position itself in the market. These 4 p’s are an important parameters in the hands of Directors and Marketing manager to control it but subject to the internal and external environment constraints.

Financial Implications: Any activity undertaken or performed in the business is related financially or in other words, all the activities performed within the business has financial implications.

The marketing plan should also show how the marketing strategy had changed the organisation financially in terms of planning and development.

2.2 Mitigation Strategies for High risk component of the plan.

The risky components which are mainly Product, Price, Orange Strength, Competitors Threats etc, Orange had developed various plans and strategies in order to mitigate these threats which is explained below.

Different product lines for different customers

Introducing different product lines in order to meet customer needs.

Orange has further divided its three main products which are Pay as you go talk plan, Pay monthly talk plan and broadband service into various different types of sub-product to cater the needs of the customer.

For e.g. Panther pay monthly plan provides unlimited texts, Unlimited Internet for text and Internet lover whereas Racoon pay monthly provides unlimited landline calls.

Orange had designed and altered its product as per requirement of each and every customers. This is made in order to mitigate the choice and preference of customers which differs from person to person.

Different price plan to cater different range of customers

Orange also had different price plans for every customers, in order to meet the budget of an individual it has low price plan from £15 a month to highest £75 to its business customers.

Allowing Minutes bundles for International calls for UK customers

Orange should identify the composition of UK customers as most of the customers are immigrant, and most of them mean to be from different countries and are often making International calls, Orange should introduced an Access number by which one can make International calls by using the monthly available bundles of minutes from the plan.

This will help orange to increase its customer base.

Product Diversification

Orange should also diversify its business current other business of Orange can be explained as follows.

Orange has diversified its business recently from Telecommunication to different sector in order to earn extra revenue to the group.

Such as:

– Orange Credit Card (In Association with Marble Cards).

– Orange World

Orange Credit Cards.

In association with marble cards (HFC) group Orange is offering now credit cards,

With an (a.p.r) of 14.9%

Orange should also look into the Advertising business, because it has millions of customers which is a key point and its strength. Orange should look this business seriously as it will help to generate additional revenue.

Orange world

Orange world is the internet portal giving the best of internet service on your mobile phone.

Its gives the access to the web as if you are using your computer and internet at your home

You can now download your favorite music, videos, play online games, download games, access to the latest news, do shopping, book your favorite holiday etc.

2.3 Marketing Plan

2010 Orange Marketing Plan

Marketing plan can be explained in the following way.

Executive Summary

Introduction/State of Business

Analyses

Market/Industry/Competitors/ Companies (SWOT for each)

Objectives and strategy

Implementation (4/7Ps)

Financial Implications

Control and Evaluation

Executive Summary

Customer base increased by 6% in the year 2009 with nearly 200 million customers all over the world, In Europe there are about 20.7 million mobile telephone customers.

In October 2009 Luxembourg became the 31st country which uses Orange services.

To sustain its long-term growth, the Group needs to be present in every key link in the value chain. This will enable Orange to defend its positions against other major market competitors.

Orange is now operating in 32 countries compared with 19 countries in 5 year ago time.

Environmental Commitment

20% reduction in CO2 emissions between 2006 and 2020.

15% reduction in energy consumption between 2006 and 2020.

25% renewable energies for new mobile stations by 2015 (notably in Africa).

80% of Group scope engaged in Environmental Management System (EMS) process by 2015.

State of Business

The level and quality of business and financial performance were impressive, given the very difficult environment the France telecom faced from both a macroeconomic standpoint and in terms of regulatory pressures. The Group maintained its revenues, excluding the impact of regulatory measures, and generated cash flow that exceeded its announced objective.

Orange launched service in Armenia and Uganda last year. With operations in Jordan since 2000, it was awarded the country’s first 3G licence and will begin marketing attractive solutions in the first a quarter of 2010.

Around 3,500 researchers, marketing specialist works in Orange labs.

Analysis

Market Analysis

SWOT

Strength

Strong customer base

Good network strength

Strong Marketing and promotion techniques

Market Penetration

Product Innovation

Environmental Commitment

Iphone 4 (Only available with O2,Vodaphoe and Orange)

Weaknesses

Poor Broadband services in UK.

Major customers only in France and UK

Opportunities

Improvements in Broadband service.

Orange can concentrate on its broad band service and improve in major parts of UK.

Threats

Stiff completion in the telecommunication industry (Competitors) all around the world.

III) Orange Marketing Strategy

The marketing strategy of orange can be explained in taking into example of

Ansoff growth matrix strategy model.

The model has four main objectives where the company does it business or operates

Market Penetration

Product Development.

Market Development

Diversification.

(Figure 1.1 shows the example of Ansoff growth Matrix model)

Existing Products

New Products

Market Penetration

Product Development

Market Development

Diversification

Existing

Market

New Market

Figure 1.1 Ansoff growth Matrix Model

Objectives of Orange

The two main objectives of Orange is

Profit Improvement &

Increase in Customer base.

IV) Market Penetration.

Market Penetration is a growth strategy where the company does the business where the market for that particular product is already in exists.

Orange sells its Mobile and Broadband services in the market where there the competition is very high, currently in U.K market Orange faces tough competition from the following companies.

Implementation

4 P’s of Orange Marketing

http://jumpdigitalmedia.com/blog/wp-content/uploads/2010/04/4ps.png

I) Key Products

Pay as you go products: These are the sim cards which are offered to customer, it need to top up every time with a minimum of £5 pounds in order to make phone calls each cost costs up to 20p per minute and 10p on texts.

Orange offers various pay as you go products each products has its own specialty all its pay as you go products in UK can be explained as follows.

Monkey (for free text and music lovers)

Dolphin (for free text and internet lovers)

Canary (for free evening and weekend minutes)

Racoon (15p per minute calls)

Camel. (Good for International call users, calls to more than 50 countries from just 5p per minute.)

Pay monthly products

Orange offers pay monthly mobile contracts ranging from 18 months to 24 months.

And again the above animals are used for the pay monthly mobile contracts with a different specialty each of them.

Panther (Unlimited text, Unlimited Internet, Satellite navigation with Orange maps, 50 picture messages.)

Dolphin (Unlimited Text, 250mb of mobile internet usage.)

Canary (Unlimited Text)

Racoon (Unlimited landline calls, 300 texts.)

Broadband services

Orange has categorized its broadband services into home broad band and mobile broad band. Home broad band is usually purchased by families for Internet browsing,

Following are the packages available for Home broadband.

Home Ultra (from £10.5 per month plus £10.50 Orange Line rentals)

Home Max (Unlimited superfast broadband from £6.50 per month plus £10.50 Orange line rentals inclusive evenings and weekend calls)

Home Select (Your own existing line rentals from £9.00 per month)

Home starter (£7.00 per month)

Mobile Broad band

It is a broad band service which you can use take anywhere with you i.e. mobility

They provide a dongal which is a kind of a memory stick and can be easily plugged in the laptop for Internet use.

Again it uses the animals to identify its packages in broadband, each animal has different specialty.

Following are the broadband packages which are made available to the customers

Racoon (Usage of data from 500 MB to 1.5 GB)

An 18 months contract from £5 pounds to £10 a month

Dolphin (3 GB from £35 pounds a month, 18 months contract)

Panther (Unlimited usage of broad band from £35 pounds a month)

Price

Orange has decided its price according to mobile or broad band service it provides, varieties of prices ranging from product to product.

Its pay monthly product starts from £15 a month to £75 a month, this pricing is totally depends upon the usage and selection plan by the customer.

Same thing applied to Home and Mobile broad band.

Place

Orange is making is service available in many parts of the world with the network reach to more than 21 countries, including all Europe, some parts of Asia, Middle East and Africa.

Promotion

Orange UK uses various techniques to promote its products and benefits to its customers

One of its important and long running promotion activity is Orange Wednesday cinema tickets, which are buy one and get one free for all Orange customers in UK.

Orange also does it advertisement with Yahoo and Hotmail users, whenever a user is logged in the system using yahoo mail or hotmail an advertisement pop up runs which informs the users about the current offers available and forthcoming mobile phone.

In 2009 the Orange Foundation supported programmes in 31 of the Group’s host countries in Europe, Africa and Asia. These initiatives promote schooling of girls and provide scholarships. Most of this work is part of broader projects aimed at economic integration for women, including the “Feminine Promotion” programme in Vietnam.

Orange still continues its long running advertisement in UK’s Cinema hall in almost all parts of the country.

Financial Implications

Orange has adjusted its Capital Expenditure with relation to the economic condition in the year 2009 while also taking care of the strategic area such as 3g mobile network and acquisition of new licenses in the emerging countries.

The launch of a quadruple play will strength Orange’s position It is an offering that combines fixed, Internet, mobile and TV services.

Their another priority is optimising investments in marketing and sales, a key differentiating factor, coupled with the introduction of value-added Orange Care services for mobile customers. In addition, the Group will embark on the first phase of investments in its fibre-optic network in France

3.1 Understanding how to promote the marketing plan in support of strategic objectives

As mentioned earlier the main strategic objectives of Orange is Market Penetration which can be known in Ansoff Growth Matrix and other one is achieving Higher Revenues.

The Marketing plan discussed above will help Orange to achieve its above objectives in following ways

Different varieties of product lines will help to focus different types of customers demand and requirement with regards to market segmentation which will increase number of customers.

The Unique facilities to customers like Free Cinema tickets (Orange Wednesdays), International Access number for free International calls will attract new customers who are making International calls frequently and one who are movie lovers.

The Collaboration with Apple company for iphone4 will also give competitive advantage as it currently only available with O2, Vodafone and Orange.

The product Diversification also helps the orange to generate additional revenue, And can also attract customers from subsidiary business of orange to its main business for e.g. Introducing Orange Credit card in the market.

3.2 Approach to reach the agreement for the Marketing Plan,

The approach will be based on the current analysis of Orange and its Marketing and Business Environment and also suggestions are made in plan which will help the Board of Directors and Management committee to go through the plan and arrange resources to implement the plan As plan concludes that it will be very helpful to Orange to increase its customer base and revenues which are the main objectives.

Therefore it will be agreeable on the basis of its strong formation and projection.

3.3 Evaluation and Review Measures to agreed plan:

This marketing plan uses one or more business building tests. These are tests of single marketing variables designed to find more effective or efficient ways of spending marketing resources. They involve monitoring and comparing the results of different spending levels, types of promotions, pricing, advertising, sales approaches,

Of Orange.

The effectiveness of Marketing plan can be reviewed by conducting Customers survey by phone, emails, texts, market surveys etc.

Review can also be carried out by measuring Orange’s performance before and after implementation of Marketing plan.

Also by monitoring the telephone conversation between customer service department and customers of Orange’s related with queries in order to identify the number of response of the customers regarding their satisfaction or dis-satisfaction with Orange products and to identify potential opportunities and weaknesses in all line of Orange’s product .