MARKETING STRATEGIES FOR

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VODAFONE NETWORK
Presented By D.NANEE I MBA 1191030
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 Vodafone Group is a global

telecommunications company headquartered in London, United Kingdom It is the world's largest mobile telecommunications company measured by revenues .
Vodafone India, formerly

Vodafone Essar and Hutchison Essar, is the third largest mobile network operator in India after Airtel and Reliance Communications. It is based in Mumbai, Maharashtra and which operates nationally.It has approximately 146.84

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MICRO-ENVIRONMENT
COMPANY: This combines all the company internal groups like

financial, research, management, development etc. Vodafone as a company has a very highly trained research team of technicians, financial advisors and manager which keep Vodafone strong from inside.
SUPPLIERS: Huawei Technologies Co., Ltd. ('Huawei'), one of the

world's leading networking and telecommunications equipment suppliers had signed a Global Framework Agreement with Vodafone, the world's largest mobile operator, for mobile network infrastructure.
This agreement marks the 1st time a

telecommunications equipment supplier from5/7/12 has China

 CUSTOMERS: In total, over 400,000 Vodafone Mobile Connect customers,

including over 170,000 3G enabled customers.Highest quarter ever for new Vodafone live! customers of 3.9 million, bringing global Vodafone live! controlled customer base to 28.3 million, including 12.9 million in Japan. taking the total base to 15.2 million customers, an increase of over 9% since last year.

Vodafone UK added 641,000 net customers in the quarter,

COMPETITORS: Competitors of Vodafone are, Airtel.Aircel,BSNL,Idea,Uninor. EMPLOYEES: Their employees are key to their success so they have

established strategic priorities to recognise 5/7/12 and develop

MACRO-ENVIRONMENT
PESTEL analysis stands for "Political, Economic, Social,

Technological, Environmental, and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
POLITICAL FACTORS: Political factors play an important role in the development

of the network operating industry. Political factors could include the provisions of certain laws, and pressures from certain pressure groups. The licensing of certain frequencies plays an important role in the development of the mobile operating network.

ECONOMICAL FACTORS: The economic environment is dependent and influenced by

the countrys economic policies. These include the rates of economic growth, inflation; consumption patterns, income distribution and many other economic trends5/7/12 determine the

Con
SOCIAL FACTORS: Social factors look at the structure of the population and

the impact of which it has on the demand for the product and the supply of labour.
There are certain demographic and cultural aspects of

the environment which influence customer needs and the market size.
Social trends and other mobile etiquettes are factors

that any mobile customer would follow.

TECHNOLOGICAL FACTORS: The success of technological development plays the

most important role in the success of telecommunication companies.

In the network operating industry, technological

development is based on the increase in efficiency and quality in the transfer of voice calls, and data between 5/7/12 mobile phones.

Con
ENVIRONMENTAL FACTORS: Environmental factors also play an important role in the

development of network operating industry. The government is forcing Vodafone and other telecom operators to become more environmentally conscious.
For instance, while putting up towers, they have to keep

various factors in mind. The action of the companies is being monitored making sure they are environmentally friendly.
Any negative externalities given out will have to be

paid by a full social cost by Vodafone.

LEGAL FACTORS: The market in which Vodafone is in has only one Legal

force that is to provide safety in the use of its services through the handsets they sell and provide. This means that development cost will need to be done to produce 5/7/12

Marketing mix
Introduction Vodafone is the biggest mobile phone business in the world. It uses marketing to promote its brand. This involves finding out what customers need and then making sure that the products on sale meet those needs. The marketing mix Vodafone looks to have a good marketing mix. This is a mix of the right product to buy in the right place at the right price and with good promotion. The right product. This means giving customers the features and benefits they want. Vodafone gives buyers features such as games, pictures, ring tones, information services, bills and even video.
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The right place. Vodafone operates over 300 stores and also sells through other outlets. It has expert staff in the stores to help buyers. The right price. Vodafone offers a number of price plans to suit all of its target groups. Good promotion. This is divided into two parts: o Above the line this is advertising in a number of different ways such as TV and posters. o Below the line this includes less obvious advertising such as in-store displays and the way stores are branded. News about products and ideas is also sent to the press.
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Pricing Strategies
The pricing Strategies followed by

the vodafone is Skimming Price in the Earlier Days, but now the telecom networks are fully providing sim card at free of cost, only the amount of fee is collected for the activation that too is based on the tariff plans , people preferred to make use of it.

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 Market research

Market research is not only used to find out what customers want. It is also used to see if things like TV campaigns have been a success. It was found that people recalled the adverts and so the brand had become better known.

Brand migration
The brand is so strong that Vodafone uses it when it takes over other businesses. In Japan, the J-Phone company was initially re-branded as J-Phone Vodafone before moving to the single Vodafone brand last year. This is called brand migration.
Awards and recognition

The Brand Trust Report,2011 published by Trust Research Advisory has ranked Vodafone as the 16th most trusted brand in India.
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Vodafone India has 18.8% customer market share and 20.7% revenue market share.

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Con

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SEGMENTING, TARGETING AND POSITIONING:

SEGMENTATION: The following segmentation variables are used by

Vodafone in order to segment the market :

GEOGRAPHIC : Here, the segmentation is done on the basis of regions

in which they operate like rural and semi-urban markets and metros
DEMOGRAPHIC: Income : Vodafone further segments its market according to

various income levels and have various plans for every strata of society.
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Age:

Vodafone have specific plans for youth.

Nature of the Customer:

Depending on the fact that whether the customer is institutional or sole, the services and plans provided by Vodafone varies and thus, it forms an important bases for segmentation.
PSYCHOGRAPHIC:

Lifestyle and Personality: Vodafone segments its users on the type of service they use based on their lifestyle such as different plans for students, professionals etc.
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BEHAVIOURAL:

Benefits Sought:
Vodafone segments its customers on the basis of the

benefits sought by them such as such as: Local call ,STD call or ISD call makers ; Users of value added services
Usage Rate :

Vodafone also classify its users as one with heavy usage rate, medium usage rate and light usage rate and have different targeting schemes for each of them.

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TARGETING:
Vodafone

targets the market through many different tariffs, services and propositions for every segment according to specific customer preferences and needs.

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POSITIONING:
Vodafone's brand positioning is: 'Vodafone helps people

enjoy richer communication, anywhere, anytime. Always reliable, always easy, always great value...passionately delivered'.

Before Vodafone took over Hutch, the positioning

strategy followed by Hutch was Wherever you go our network follows, the position was beautifully created by showing a small boy as a customer and a Pug following the boy as network.

Now vodafone is Power To You

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SWOT ANALYSIS:

Strengths
. Complementary strengths of Vodafone & Hutch essar . The brand name it has in the Indian market . It has the 2nd highest market share in India(source : Wikipedia) . It has a 2nd highest subscriber base in India 1st being airtel . Its strong advertising strategies and impact on people . Its India's 3rd biggest mobile carrier(source: Business standard) . Its mind-blowing

Weaknesses
. . . . Low R&D Ubiquitiouegory, products, services High customer churn (33.33%) Rural India unable to relate to the brand
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Con
Opportunities
. Emerging markets and expansion abroad . Innovation . Product and services expansion . Growing data business and 3G auctioning . Growing Enterprise solution market (10.2% in 2009 anticipated) . Large capital can be raised by listing Vodafone on Indian Stock Exchange(IPO) . Tower sharing business with Indus Towers

Threats
1. Highly competitive market 2. Still lags behind major competitors in USA 3. Extremely high penetration rates in key European markets 4. European Union regulation on cross-border5/7/12 cell phone

 1. Rivalry with Existing Competitors Vodafone's position as cost leader, competitors have a hard

Porters Five Force Model

time competing on basis of price because the competitors will fall on their face if any aspect of the logistics or operations are inferior.
2. Bargaining Power of Buyers The buyers in the mobile telephony industry are strong. These

powerful buyers can reduce the cost leaders prices, but not past the level of their closest competitor.

3. Bargaining Power of Suppliers Suppliers of the mobile telephony industry are strong.

Vodafone, by being a cost leader, operates with margins greater than its competitors, which, in turn, allows them to absorb price increases from its suppliers easier than its 5/7/12 competitors.

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4. Potential Entrants
While the threat of new entrants is weak, Vodafone

must continue to reduce costs below that of its competitors. By maintaining high levels of efficiency, Vodafone can help make the entrance into the mobile telephony industry unattractive to its potential competitors. 5. Product Substitutes
Vodafone faces a low threat of product substitutes. The

focused cost leadership strategy that Vodafone operates under makes it difficult for a comparable substitute to be produced at a lower rate by their excellent use of economies of scale.
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Channel Of Distribution:
Their customers interact with them in a variety of ways

including via retail locations, by telephone or increasingly online.

Through their subsidiaries, they directly own and

manage approximately 2,100 stores selling services to customers and providing customer support. review their store footprint and capabilities.

To be most accessible to their customers they constantly They also have around 7,600 Vodafone branded stores

in their controlled markets which sell their products and services exclusively through franchise and exclusive dealer arrangements.

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Survey Questions:
q Which telecommunication network do you use? Airtel,Aircel,Vodafone,Idea,BSNL,Uninor,

Videocon
q How many times do you recharge your service network

in a month?
1 time, 2 times , 3 times, 4 times. q Which offers do you prefer more?

SMS Booster Call Rate Cutter Internet Booster

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THANK YOU

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