Implementing An Evolving Marketing Concept: A Case Study Of Vodafone Australia

Vodafone Australia

Discuss About The Implementing An Evolving Marketing Concept.

Vodafone Group Plc is a British multinational telecommunications conglomerate. Its headquarters is situated in London. Company operates in Asia, Africa, Australia, Europe and Oceania. Vodafone stands on the fifth position amongst the mobile operator groups in overseas market in terms of revenue and in terms of connections; it stands on second position just behind China Mobile. Vodafone owns and operates in more than 26 countries and in more than 50 countries with partner networks. It is listed in London Stock Exchange and has primary listing. Apart from telecommunication industry, Vodafone Global Enterprise is engaged in providing IT services along with telecommunication to corporate clients in more than 150 countries.

Vodafone Australia was founded in 2009 and currently, it is operating in a merger with Hutchinson 3G Australia. This merger has increased the wealth and size of business. After merger, company become more than $7 million subscribers with AUD 4 billion annual revenue. Organization has attained third largest position as mobile telecommunication service provider along with 27% market share across Australia after Telstra and Optus. Merger amongst these two companies is based on 50-50 profit and losses sharing ratio. With regards to marketing and promotion, Vodafone was involved in sponsoring sports activities. Vodafone Group owns 50% shares of Vodafone Hutchinson Australia Pty Ltd and the same amount of shares owned by Hutchinson Telecommunications Australia (Vodafone Hutchison Australia Pty Limited, 2018).

Primary vision of Vodafone Telecommunications is to enhance their customer base across the globe and in relevance with Australia; their vision is to acquire competitive advantage with the help of providing qualitative services at cheap rates. This will attract other companies’ subscribers towards Vodafone and organization will be able to attain its desired goals (Vodafone Hutchison Australia Pty Limited, 2018).

With regards to the telecommunication services, Vodafone is one of the oldest player, thus, they have faced almost every type of situation in relevance with the dynamic business and marketing environment. To enhance their performance as well as to gain leading position in the target market, organizational mission statement is “in anticipation of customer’s needs, Vodafone Australia will provide high quality telecommunication services”.

With regards to this marketing plan, organizational primary objectives are:

• Increasing customer base, revenues and profitability;
• Increasing market share so as to attain leading position; and
• Adaptation of appropriate defensive strategies so that the acquired position could be attained (Armstrong, et. al., 2015).

With the help of this analysis, organization will be able to determine its needs and wants in terms of strategies and approaches to tackle the impact of external environmental conditions of the target market. Australian market is saturated, thus, there is no scope left for any telecommunication company to acquire growth and development related. With regards to the analysis of external environmental factors’ impact, certain advanced and unique product or service needs to be launched in the target market along with the implementation of appropriate growth strategy so that the desired goals and objectives could be attained along with attaining the leading position in the telecommunication market of Australia (Hollensen, 2010).

Mission, Vision and Objectives

Political environment of Australia is highly stable and there is no such threat of overnight implementation of strict regulations and policies for multinational corporations. Apart from this, political factors have high significance over the policy making and implementation, thus, it is necessary for the management to compliance with all the political rules, regulations and policies with regards to the telecommunication industry so that the desired goals and objectives could easily be attained (Homburg, Jozi? & Kuehnl, 2017).

In terms of telecommunication industry, Australian market is saturated and to attain the desired position, organization is required to adopt appropriate strategies so that compliance could be made amongst the economic factors could be made. Purchasing power of Australians is high, thus, organization could also focus over premium pricing strategy to attract the target audience as well as to differentiate its position amongst the existing competitors (Lee & Carter, 2011). 

Requirements of people towards telecommunication service providers are increasing rapidly. Currently, Australians are operating 5G internet speed and in a very short time period, 6G will be introduced. Average speed of internet in Australia is 25.88 Mbps. In relation to these numbers, Vodafone Australia needs to adopt unique strategies so that 6G internet speed could be introduced in the Australian market through them along with setting up more mobile network towers to avoid network lost issues. With the help of these measures, Vodafone Hutchinson will be able to attract the other operator’s subscribers along with gaining competitive advantage in the target market (Mullins, et. al., 2010).

Technological factors have a great role in telecommunication industry. Technological changes are necessary for the organization in order to cope up with the target audience’s needs and wants. To enhance customer base along with increasing revenues, organization is required to provide unique services along with technological advancements. For example, Vodafone Australia could introduce 6G network before other companies and for a certain period of time (testing period), organization could provide free services to its users. This will help the organization to attract large number of audiences through which subscription will be increased along with gaining competitive advantage (Srdjevic, Bajcetic & Srdjevic, 2012).

Telecommunication Act 1997 is the primary legislation which carries all rules and regulations in relevance with operating in telecommunication industry in Australia. Apart from this, Telecommunication (Consumer Protection and Service Standards) Act 1999 should also be considered while making the policies and strategies to attain the desired goals. This act includes all the standards and obligations on carrier operators which need to be adhere by whole telecommunication companies in Australia (Vazifehdust, Taghipourian & Gharib, 2011).

External Environmental Analysis (PESTLE)

Environment is the major concern for all industries across the globe. Emission of radiations is the major issue for the telecommunication industry. Towers set up by the mobile service operators for improving the network quality is affecting natural ecosystem, thus, it is necessary for every organization in the telecommunication sector to adopt and introduce creative methods through which radiations could be controlled so that the natural habitat and wildlife does not get affected.

Vodafone Australia has set up its significant image in the telecommunication industry, thus, threat of new entrants will not affect their operations. Vodafone Hutchinson is the third largest mobile network operator in Australia and to defend their acquired position, organization has built up their brand loyalty amongst the target audience through providing attractive offers, premium quality services, etc. Vodafone Australia has covered 27% market share of the Australian market and it is just behind its direct competitors i.e. Optus and Telstra. Setting up an effective position along with competing with the existing big players will not be an easy task for the new entrants. Thus, it could be said that threat of new entrants is weak force.

Threat of substitute is another weak force. Landline services and CDMA services were the traditional mediums while after introduction of mobile devices and wireless network, demand for landline and CDMA services have been declined. Apart from this, broadband connection, email services, social network sites and video conferencing are some of the major substitute for mobile network operators. In relevance with this, Vodafone Australia has introduced some distinct products so that they could retain their potential and existing customers such as Vodafone TV, live cricket scores, and high internet speed. Thus, it could be said that threat of substitute is another weak factor (Wilson & Gilligan, 2012). 

This factor has significant impact over the telecommunication industry due to large number of companies. Due to large number of companies in the telecommunication industry, choices for consumers are high. In relevance with this, companies in the telecommunication industry are adopting unique strategies in order to make their distinct position in the competitive market along with gaining competitive advantage. This helps the consumers to consume high quality services and numerous services at low rates. Thus, it could be said that consumer’s bargaining power is a strong force.

Telecommunication operators take mobile network towers, wires and other raw materials from suppliers. In relation to this, there are few suppliers exists who produces quality mobile network towers and other required materials in Australian telecommunication industry. Crown Castle International Corporation, AT&T Towers, Global Tower Partners, etc. are major tower producers and suppliers in Australia. Thus, supplier’s bargaining power is strong and they could affect organizational performance in positive as well as in negative. In accordance with maintaining the acquired position in the market along with enhancing the market image, it is necessary for the organization to develop and maintain effective relations with the suppliers. This will ultimately help the organization to uplift their performance along with gaining competitive advantage in the target market (Wright, et. al., 2010).

Porter’s five forces

Telstra, Optus, TPG Telecom, Vocus Group, NetComm Wireless, etc. are big and old players of the telecommunication industry in Australia. In order to make unique brand image, organization is required to adopt advanced strategies in terms of technological advancement, pricing strategy, and product differentiation strategy. This will help the organization to gain its desired goals and objectives along with uplifting their brand image in the target market (Dälken, 2014).

Demographics: Both male and female of all age groups will be targeted.

Geographic: Rural as well as urban areas will be targeted (Dobbs, 2014).

Behavioural: People who prefer high internet speed and premium mobile network services will be targeted.

Psychographic: This segment includes brand conscious people. Along with this, people who believe carries lifestyle will be targeted as Vodafone has built an effective brand image in the target market.

In relevance with the targeting the selected consumer segments, organization will focus over social media, email, television marketing, radio marketing will be included in the marketing and promotional campaigns of the organization.

Positioning is a major segment of marketing strategy and it is used for setting brand image amongst the targeted customer segments. Main motive of implementation of positioning strategies is to set up unique brand image amongst the target consumer’s mind. This will be done majorly by social media strategies as it covers large market area at low cost with higher returns. Apart from this, organization will also focus over television marketing strategies with unique advertisement content so that an effective image amongst the target audience could be built up (Kraus & Strömsten, 2016).

Competitive analysis will focus over analysing the direct competitors for Vodafone Australia, their current strategies and their future strategies. Vodafone Australia is the third largest mobile network company in Australia, thus, it is a major concern for the organization to maintain its acquired position along with developing and adopting advanced strategies so that the leading position in the market could be attained (SmartCompany, 2008).

In relevance with gaining leading position in the target market, organization will require to adopt appropriate strategies to differentiate their products and services from its direct competitors. Unique and effective services will help the organization to attract the target customer segments along with the customers of other mobile network operators.  Along with introducing new and unique services, organization will adopt appropriate and effective strategies so that the desired outcomes could be attained.Market needs

Currently Aussies are seeking for high internet speed along with network coverage in all areas and regions. Most of the companies, industries and even every field of the Australian market are using internet services for promotion, purchasing and selling and for various other activities. In relevance with the requirements of the target market, it is necessary to provide advanced strategies so that the services could be enhanced so that the market needs could be fulfilled (The CIE, 2018).

Figure: Mobile carrier share by services in operation

Whole mobile industry is engaged in improving speed and network coverage so as to satisfy the consumer’s needs and to gain competitive advantage. Despite being the high expenditure in improving service quality and setting up more towers, returns of this investment is also high and effective. Thus, VHA (Vodafone Hutchinson Australia) should spend certain part of their revenues in terms of improving services quality, internet speed as well as network coverage to compliance with the target customer’s needs (Paul Budde Communication Pty Ltd, 2018).

Figure: Volume of downloads by technology type

As per this figure, fixed-line market in Australia is dominated by Telstra. It is the only mobile network operator which is providing high quality fixed line services. Company acquires 65% of the market share in terms of revenues. Thus, in order to enhance the customer base, Vodafone Hutchinson Australia could move in the fixed line services (PR Newswire Association LLC, 2018).

• Pre-paid and post-paid mobile services and value added services.
• Previously, its main services were calling and texting.
• Now its major offerings have been evolved as data usage.
• To enhance their target segments, organization is planning to introduce other services such as fixed line connections.

• Premium pricing strategy
• Provides premium quality services as per price charged
• In order to attract more customer segments, organization is seeking for cost-leadership pricing strategy (

• Vodafone Hutchinson Australia serves in all major and small parts of Australia
• Strong distribution network
• Now planning to open more distribution channels in rural areas so that large area could be covered.

• Social media strategies
• Sponsorship of sporting events i.e. event marketing
• Email marketing
• Traditional mediums of marketing are also being used for making marketing and promotional campaigns effective.

Conclusion

From the aforesaid information, it can be concluded that Vodafone is one of the largest mobile network operators across the globe. Company operates in various countries across the globe and Asia, Africa, Europe and United Kingdom is their major serving regions. This report includes marketing plan for Vodafone Australia to enhance their market share along with enhancing their customer segments.

References

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical examination concerning the relevance for today’s business (Bachelor’s thesis, University of Twente).

1. Dobbs, M., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

Hollensen, S., 2010. Marketing management: A relationship approach. Pearson Education.

Homburg, C., Jozi?, D. and Kuehnl, C., 2017. Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), pp.377-401.

Kraus, K. and Strömsten, T., 2016. Internal/inter-firm control dynamics and power—A case study of the Ericsson-Vodafone relationship. Management Accounting Research, 33, pp.61-72.

Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction, 27(1).

Mullins, J.W., Walker, O.C., Boyd, H.W. and Larréché, J.C., 2010. Marketing management: A strategic decision-making approach. Boston: McGraw-Hill.

Paul Budde Communication Pty Ltd. 2018. 2016 Australia – Telecoms Market Analyses – Top Trends Moving into 2017. [Online]. Accessed from: https://www.budde.com.au/Research/2016-Australia-Telecoms-Market-Analyses-Top-Trends-Moving-into-2017. [30^th May 2018].

PR Newswire Association LLC. 2018. Australia – Telecoms Industry – Statistics and Forecasts. Accessed from: https://www.prnewswire.com/news-releases/australia—telecoms-industry—statistics-and-forecasts-300425066.html. [30^th May 2018].

PWC. 2018. Five trends for Australian telecoms in 2018. [Online]. Accessed from: https://www.pwc.com.au/publications/five-trends-australian-telecoms-2018.html. [30^th May 2018].

SmartCompany. 2008. Australia’s 45 fastest growing telcos. [Online]. Accessed from: https://www.smartcompany.com.au/finance/economy/australias-45-fastest-growing-telcos/. [30^th May 2018].

Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for multicriteria decision making based on SWOT/PESTLE analysis: a case study of reconstructing a water intake structure. Water resources management, 26(12), pp.3379-3393.

The CIE. 2018. Australia’s telecommunications market structure. [Online]. Accessed from: https://www.communications.gov.au/sites/g/files/net301/f/Vodafone%20-%20Attachment%20E.pdf. [30^th May 2018].

Vazifehdust, H., Taghipourian, M.J. and Gharib, Z., 2011. Social marketing, green marketing: the extension of marketing concept. European Journal of Economics, Finance and Administrative Sciences, 41, pp.20-33.

Vodafone Hutchison Australia Pty Limited. 2018. About Vodafone. [Online]. Accessed from: https://www.vodafone.com.au/about. [30^th May 2018.

Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.

Wright, E., Khanfar, N.M., Harrington, C. and Kizer, L.E., 2010. The lasting effects of social media trends on advertising. Journal of Business & Economics Research, 8(11), p.73.

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