Situation Summary The Vodafone case study has given us a good overall view of the company and shown the companies good and bad points, whilst showing the mobile phone business as a whole and explaining the ups and downs of the industry. The SWOT analysis included in the appendix helps us see the situation of Vodafone and describes the strengths, weaknesses, opportunities and threats. This is an aid when looking at the internal and external aspects of the company. 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 …show more content…
Through segmentation of the market by age, Vodafone can target each specific segment effectively, providing what the consumer desires most. Vodafone also segment their market based on the lifetime value of their customers. Individuals who have a mobile phone on a contract payment plan are of higher value to Vodafone than an individual who is on a pay as you go payment plan. This is due to the fact that Vodafone are guaranteed a certain level of income from their customer for a period of 12 to 18 months. This can then help determinate the allowable spend per customer on marketing to help determine return on investment. Finally, Vodafone also segment their market by usage rates of their customers. Vodafone offer a variety of calling plans to suit customer's usage rates. They even offer specialist calling plans which are tailored to suit businesses. Through this method of segmentation Vodafone are able to identify their most valuable customers. The main bases of segmentation are demographics, geographics, psychographics and behavioural Demographic This is the most common method of dividing the market and is segmentation based on general population characteristics. The age group which students are classified into are highly aware of new technology, especially mobile phones and often desire the latest technology. Geographic This is segmentation based on the area that people live in. Students usually live away from home during university and
Telstra segment their residential customer based upon customer usage and lifestyle patterns and for small business customers according to the type of business they operate and the way they interact with their customers. Telstra enable customers to interact with them online, through door-to-door sales representatives and telephone sales channels and face-to-face via Telstra Shops.
The market Virgin Mobile is trying to target is millennials, aging between 15 and 29. As of now, the U.S. has the lowest penetration in the mobile industry within this age group, with a high growth rate
The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.
Demographic Segmentation fragments the market into categories according to different demographic factors, usually with regards to the wants and needs of multiple consumer groups. The
3.2 Telstra Market PositioningTelstra's target segments are based on knowing customers and meeting their needs. And its positioning strategy is to express the valuable differences on products and services offered and create competitive advantages. To position Telstra and capture its target segments most effectively, the followings need to be taken into consideration:•Important: the key difference to promote is the scope and reliability of Telstra products and services.
Virgin Mobile is looking to launch a new cell phone service in the US marketplace, which is already a highly saturated industry. This analysis will help select a pricing strategy that attracts and retains subscribers, while still maintaining a competitive edge within the industry. The cell phone industry has many sources of customer dissatisfaction. For instance, customers’ distrust in pricing plans due to confusing usage rates; companies’ inconvenient and inconsistent off-peak hours; service provider’s hidden fees that include taxes and higher rates after minutes are used up, universal service charges, and one-time costs; and binding contracts by the service
In order to provide potential access to a wide variety of markets, a company should attract customer using a number of different services for example multimedia so they are not just focused on the mobile telecommunications, they are broadening their product line. Vodafone customer base ranges from the young to the corporate user to the more mature market.
Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.
In the case of Consumer Segmentation Telstra targets seven segments and offers different models which provide different benefits to each segment. The seven segments are: “Friends, Fun & Fashion”, “Work Hard, Play Hard”, “Family& Fun”, “Family Safe Keeper”, “Family & Self Development”, “Principled Professional” and “Safe & Respected”.
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.
Virgin Mobile, a MVNO is planning to launch its services in USA. It’s target is underserved Demographics of 15-29 years as this age group is underserved by the regular telecom operators due to their low credit score ( Under 18 demographic cannot go for contract). They are planning to launch their product with service offerings that focuses on value added services.
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
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
Ingenico and Verifone will lose a part of their market share to their direct competitors and also to other companies offering complementary products. However, they can control the erosion of their market share and restrict it to a limit. Their ability to control the erosion of their market share depends upon their right decisions regarding investment in new technology or acquisitions to help to attract new customers for use of their
Market segmentation is based on the assumption that not all consumers are alike and each have different needs for the products and services provided by MTN. Based on this premise, the broader market can then be split into groups of consumers who have similar needs and requirements. The characteristics of the product and services may determine the criteria in which the market may be divided by factors such as geographic location, income, age or gender. In this regard marketing activities and campaigns can be developed and implemented to target specific customer segments.