Segmentation, Targeting and Positioning
Segmentation and Targeting by Vodafone
Market segmentation basically involves dividing the target market on a whole into different
subsets or segments based upon the consumers having common needs, interests, different
geographic regions and different tastes. This is then used to target the customers based upon
these segments thus giving marketers an added leverage so as to market their product more
profusely. Corporates generally develop product differentiation strategies involving specific
products or product lines depending on the specific demand and attributes of the target segment.
Vodafone began its India operations after acquiring Hutch in May 2007. Hutch happened to be
India’s fourth largest telecom operator at
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Behavioral segmentation and targeting
Behavioral segmentation divides consumers into groups according to their knowledge of, attitude
towards, usage rate, response, loyalty status, and readiness stage to a product. This forms the
basis of segmentation and customers are segmented and targeted accordingly. For loyal
customers there is a constant need to reinvent the products and services which are being offered.
Vodafone never hesitates in doing this and brings in a plethora of value added services and other
goodies for eg. Cricket match contests, sending congratulatory messages to loved ones etc. Plans
with a reduced cost based upon higher usage patterns which further leads to extended usage.
Higher network efficiency is one of their prime highlights in their ads and great customer care
has always been highlighted in their campaigns thus giving them a great piece of regard in the
users mind and the assurance that their grievances will be acknowledged very soon. They tend to
launch new products such as faster 3G enabled services highlighted in their zoo-zoo ads and the
ease of usage of such newer services which can be seen in their ads portrayed by two very
The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies
understanding consumers’ needs, how groups of consumers differ from one another, and how consumers decide among products. The market need would be for specialty girls’ childrens clothing The following would be segmentation of the clothing market to help better understand the consumer (potential buyers): Geographic Segmentation Global Region or Country: India, Ect...
The aim of this report is to research into the Vodafone group and their entry into the Indian Market. The research was carried out of Vodafone’s history, their existing market strategy, the internal environment of the company and external
It has been the major factor behind their success and can be seen as their business strategy.
Vodafone is one of the most important players on the European telecommunications market. However, this does not mean that the company has an easy job at retaining its customers and at increasing its market share. The most important competitors of Vodafone are represented by Orange and Cosmote. The regulations in the business field determine these companies to provide similar products and services, at similar prices. Therefore, it is important that Vodafone focuses on its communications strategy in order to strengthen its position on the market.
active in France since 1999.” (Marketline, 2012). By offering mobile phone service at a lower
When dealing with several segments, a product can target one segment to specifically to exactly what
"They're very fast at spotting the trend and getting it out to the masses at a very low price."
The Markstrat world has a population of 250 million people. Through Year 4, the Sonite market consisted of 1.67 million people with an expected growth rate of 53% over the next five years. In order to meet the needs of consumers in the larger growing segments, Company U has developed two products in the Sonite market: SUSI and SULI. SUSI is the lower quality offering, marketed towards Singles and Others who are the most price-sensitive. Others and Singles are projected to have the highest growth rates over the next five years, at 98% and 86% respectively. This is Company U’s target market for SUSI and sales are forecasted to almost double in each segment through Year 10 (Table 1 and Chart 1). SULI is the high quality electronic offering, distributed primarily to Professionals and High Earners who are driven by performance and convenience. Market Share for both Professionals and another market segment, Buffs, are expected to decline through Year 10. The Vodite market currently consists of approximately 200,000 people with an expected growth of 200% through Year 10. The Followers segment of the Vodite market is projected to have the largest growth over the next five years at over 3300%. Company U introduced a Vodite, VUGO, in Year 5 to initially target the Early Adopters segment in turn creating a strong foundation to penetrate the Followers segment through Year 10 with predicted long term sales growth of 17%.
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,
This process helps a firm or organisation in focusing its marketing effort towards a specific segment or a group of segments. Depending on the product, organisational goals, the size of the firm and the marketing resources available a firm may target only one ‘niche’ segment or alternatively focus on several related segments. Another method can be to start with one segment and add more when business grows successfully. Large companies often target all market segments and try to serve them by offering a large variety of products to suit all their needs, wants and demands.
Within the first two weeks it would be necessary to gain control of cash flow. The prospects for Vodaphone’s industry are positive and cash usage should be leveraged in a manner that is proportional to market growth rate. Serpil will need to identify “non-core” business operations and outsource these operations as necessary. These “non-core” business operations might include supply chain and other
Although Vodafone are the biggest mobile network in the world, they also have their problems. As a global organisation Vodafone have learnt how to acquire customers, building up a customer base in the UK of 13 million. But, they have become far too focused on acquiring
‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so
target markets with respects to that product. For this reason, in this report I picked