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Programme: BTEC Higher National Diploma (HND) in Business ESBM (RQF)

Unit Number and Title Unit 02: Marketing Processes and Planning

Unit Level: 04

Student ID:

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Contents
Introduction........................................................................................................................4

Part A: Briefing paper........................................................................................................5

Comparison of marketing mix strategies between Sky & Vodaphone..............................5

Company Background....................................................................................................5

Marketing mix.................................................................................................................5

Part B: Marketing Plan and Media Plan............................................................................8

Executive Summary...........................................................................................................8

Situational analysis............................................................................................................9

Market Analysis..............................................................................................................9

Major Competitors..........................................................................................................9

Figure: Competitor analysis of Vodaphone.....................................................................10

External Environment Analysis....................................................................................10

SWOT Analysis................................................................................................................10

Objectives........................................................................................................................11

Marketing Strategy...........................................................................................................12

Target Segment...........................................................................................................12

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Positioning & Differentiation Strategy..........................................................................12

Marketing Mix (7ps)......................................................................................................12

Action Program................................................................................................................13

Budgets............................................................................................................................14

Control and Measurement Methods................................................................................14

Conclusion.......................................................................................................................15

References.......................................................................................................................16

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Introduction

The marketing mix sets the tone of the marketing strategies of any company. Sky and
Vodaphone are competing with each other in the telecommunication industry for quite a
long time. In this assessment, how the marketing mix (7Ps) is used by both companies
will be compared and discussed. After that, a situational analysis followed by a SWOT
analysis of the companies will be given. Then the objectives and marketing strategies
will be outlined. Lastly, an action program and necessary control and monitoring
measures for the companies will be suggested.

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Part A: Briefing paper

Comparison of marketing mix strategies between Sky &


Vodaphone

Company Background

Both Sky and Vodaphone are widely recognized as the best in their respective
industries. Companies are dedicated to providing superior service to their consumers
because they know their success depends on it (Ahlinder, 2018). Although Sky Telecom
has been at the forefront of this industry as of late, the firm has not ceased its efforts to
develop novel, outlandish, and brave ideas for the mobile devices of the future. Product
development, price strategy, promotional planning, etc. are just a few of the many
marketing tactics at your disposal (Dmitrieva, 2017). Business techniques like these,
inspired by Sky and Vodaphone's marketing mix, have contributed to the businesses'
commercial success. By positioning themselves strategically in the market, they can
attain their corporate goals and objectives with the aid of their marketing techniques.
One of the many marketing strategies they employ is the 7Ps of the marketing mix.
Product, pricing, place, promotion, people, process, and physical evidence are the
seven pillars that make up the marketing mix, or the 7Ps. The success of a marketing
plan depends on each of these factors; therefore, businesses should give serious
thought to how best to apply each to their operations. Sky and Vodafone are two
companies that provide similar services, including mobile phone plans, internet access,
and television.

Marketing mix

Marketing Mix Sky Vodaphone


Product Sky Q has Wi-Fi Hotspot, Mobile phone contracts,
Bluetooth, and touch high-speed Internet, and

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control. cable television are just
some of the many products
Sky's marketing mix and services offered by
includes Sky Channels, both firms. The good news
Sky Kids, Sky Go, Sky is that in addition to mobile
Talk, Sky Q, Sky Wifi, and phones, Vodafone now
Digibox. Sky UK, Ireland, provides home phone and
Germany, Italia, and smart home services.
Studios are subsidiaries.
Price Sky sets prices via Vodafone provides
bundling services and customers with several
price-bundling. Its annual different payment options,
sales exceed $15 billion. such as monthly contracts,
pay-as-you-go, and SIM-
only plans.
Place European markets have Vodafone has a larger
Sky. The company can footprint in the UK, with
flourish in 5 countries. Sky more than 400 storefronts.
serves 98 million homes.
The best movies, videos
on demand, and TV series
are available 24/7. The
brand can grow in
households in profitable
markets. Sky offers the
greatest TV to millions and
also offers fiber
broadband.

Promotion Sky endorses LG TVs and Advertisements for both


Lenovo computers and Vodafone and Sky can be
Facebook and Twitter. This seen on television, in
cooperation promotes the newspapers, and on the
brand by utilizing new ad internet. Vodafone, on the
forms. Sky now advertises other hand, puts more
on Twitter Moments and emphasis on online and
Facebook. Tech-savvy social media advertising.
shoppers utilize big-screen
smartphones and tablets to
promote brands.

Physical Evidence London, Munich, and Milan Vodafone's website and

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are Sky headquarters of mobile app are both
Sky. It has 30+ contact
visually cohesive with the
centers, technological
hubs, and broadcast rest of the brand's digital
networks. Sky's website
and physical presence.
lists its bundles, services,
and prices. It has offices in
Italy, Germany, and
Austria.
Process To create customer value, By instituting streamlined
procedures, Vodafone can
Sky invests in personnel guarantee prompt and
and long-term. Consumers reliable service for its
should receive outstanding consumers.
material in creative ways.
The service engineer
installs the device in six
days. Sky's customer care
addresses complaints and
grievances.
People Sky has almost 20 million With Vodafone's online
customers. The chatbot, consumers can
corporation employs about get help whenever they
30,000 people, including need it, day or night.
10,000 engineers and
customer service workers.
Customers are the core
strength of the brand.

While the 7Ps marketing mix is used by both Vodafone and Sky, there are distinctions in
how each company puts it to use for their unique business and marketing objectives.
One can utilize either of them in modern advertising campaigns with no problems at all
(Du, Strydom, and Jooste, 2016). As a matter of fact, both companies function differently,
and the growth of each is wholly dependent on the company's capacity for adaptation.

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Part B: Marketing Plan and Media Plan

Executive Summary

Vodafone is a leading company in Europe and Africa when it comes to


telecommunications. Our mission is to connect for a better future. It makes a variety of
top products and services that connect customers and helps build the digital societies of
the future. It connects about 323 million mobile customers, 28 million fixed broadband
customers, and 22 million TV customers in 21 markets and 48 partner markets in
Europe and Africa. It runs the biggest 5G network in Europe, which is now up and
running in about 300 cities in 14 markets and is growing quickly (Polo, 2020).

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Situational analysis

Market Analysis

Keeping their position as market leaders in the UK in terms of revenue per customer,
network quality, and customer satisfaction is a primary focus for Vodafone's marketing
efforts there. With this goal in mind, Vodafone is always innovating and releasing new
products and services that take advantage of cutting-edge technologies to better serve
its customers. While deciding on a mobile phone, for instance, many young people give
careful consideration to which one would provide the best combination of features and
price. Trying to sell one of them is a Herculean task. Vodafone has devised a set of
marketing goals to maintain its market dominance. Things like retaining current
consumers, promoting the uptake of the company's new data service (Vodafone live! ),
launching cutting-edge products and services (Vodafone live!, mobile internet), and
reaching out to potential new users are all crucial to Vodafone's long-term success and
expansion (Puligadda, DelVecchio and Gilbreath, 2013).

Vodafone is succeeding in its goals by expanding and improving its portfolio of mobile
devices and services to stay ahead of the competition. Vodafone's distinct 'How are
you? & live!' advertising campaign is also contributing to the company's rising brand
awareness and positive reputation among all mobile phone users.

Major Competitors

In the telecommunications industry, Vodafone is up against some formidable rivals,


including industry giants like EE and O2 and regional competitors like Three and
GiffGaff and Tesco Mobile. Several marketing approaches are used by each of these
rivals, each with their own set of pros and cons. Competitors who invest in similar
technology and offer similar products and services pose a threat to Vodafone despite
the company's head start in the market.

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Figure 1: Competitor analysis of Vodaphone

Source: (Vaněk, 2020)

External Environment Analysis

Political, economic, social, technological, environmental, and legal elements all


contribute to Vodafone's broader macro environment (Dabhade and Dewan, 2015). The
company's operations and profitability may be impacted by factors such as shifts in
government telecommunications policy or shifts in customer spending on mobile phones
and internet services in the context of economic circumstances.

SWOT Analysis

Strengths Weaknesses

 Vodafone is geographically  Vodafone and BT Group have


diverse. low asset returns.
 The Middle East, Europe, Africa,  A&AT, among other properties.

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and other regions know it.
 This robust telecom corporation  Thus, US businesses cannot
has crossed borders. function.
 Vodafone has a sophisticated  Weak.
network.  Europe accounts for about 80% of
 Vodafone is also expanding the business.
abroad.  No rural network coverage is
another issue.

Opportunities Threats

 Vodafone can cut costs.  Vodafone competes fiercely.


 Vodafone wants asset returns.  Vodafone is threatened by its
 European revenue leader various competitors.
Vodafone  European pricing competes.
 Vodafone can employ new tech.  Price penetration is high.
 Research and development
methods also evolve.
 Vodafone may offer reasonable
iPhone tariffs.
 Vodafone has the greatest 24/7
customer service.

Objectives

SMART Goals

S- Specific The specific objective of Vodaphone is to


increase its market share in the UK.
M- Measurable The goal is measurable as it can easily
gain an increase of 6% in market share
within a year.
A- Attainable This market share is easily achievable by
Vodaphone as it is one of the fastest-
growing telecommunication companies.
R- Relevant The goal is realistic as it will not only
increase its profitability but also improve
its brand value.
T- Time-bound A deadline of one year helps the
company to achieve its goal with

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determination.

Marketing Strategy

Target Segment

Vodafone's customers are those who want to buy cell phones with quick and easy
access to the internet. Customers like these typically come from the upper aristocracy.
The UK market is highly competitive, but the company's excellent multinational services
give it a leg up on the competitionCateora Graham (2020)

. Vodafone, based in the UK, segments its telecom market by geography to increase its
market share.

To grow the market using the capabilities of 5G networks, demographic segmentation is


useful. Success in expanding into new global markets requires a product offering that
stands apart from the competition (Kotler and Armstrong, 2019).

Positioning & Differentiation Strategy

Superior brand positioning enabled by strong distribution networks. Improving customer


relationship management begins with establishing a solid and adaptable supply chain
network (Kampamba, 2015). Using cartoon characters and celebrity endorsements to
raise awareness of the brand is another way to expand the reach of the services
internationally.

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Marketing Mix (7ps)

Product: Vodaphone offers a wide range of products and services, such as cell phone
plans, high-speed Internet, and cable TV. It has services for home phones and smart
homes as well as mobile phones.

Price: Vodafone offers customers a variety of ways to pay, such as monthly contracts,
pay-as-you-go plans, and SIM-only plans (Vaněk, 2020).

Promotion: Vodafone advertises on TV, in newspapers, and on the internet. Vodafone,


on the other hand, puts more emphasis on advertising online and through social media.

Place: With more than 400 stores, Vodafone has a bigger presence in the UK.

People: Customers can get help at any time of day or night with Vodafone's online
chatbot.

Process: By streamlining its processes, Vodafone can make sure that its customers get
fast and reliable service.

Physical evidence: The look of Vodafone's website and mobile app is the same as the
rest of the brand's online and offline presence.

Action Program

Marketing strategies To increase its market share within a


year, Vodaphone has to expand its
customer base and target a new
customer segment. It can be done by
offering high-performance products,
providing after-sales service, answering
customer demands, and overall
enhancing customer experience (Levihn
and Levihn, 2016).
Marketing process Vodaphone must identify the most

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profitable segment and address their
needs with new & unique product offerings.
It can boost their sales growth.
Marketing activities Vodaphone can increase the customer
experience by providing after-sales
services, communicating with customers,
and analyzing their demands. It can run
ads on social media and collaborate with
other brands and also run various
marketing campaigns.

Budgets

Activities Budget
Innovation £4,00,000
Customer experience £8,00,000
Branding & promotion £5,50,000
After-sales services £2,50,000
Marketing campaigns £5,00,000
Data Analytics £1,000,000
Total £35,00,000

Control and Measurement Methods

By regularly analyzing and evaluating the company's performance, the company can
measure its time-bound and whether it can meet its goal within a year or not. The
company should measure its performance and achievements weekly, monthly,
quarterly, and half-yearly as well. If any problem is found, it should solve immediately so
that it does not lose sales. It should do market research and analysis to identify
customers' experience with the products, what more they want, or if they are satisfied
with the brand or not. It should also closely observe how the competitors are
performing, if customers are preferring other brands over Vodaphone, and if so then
why they are doing so.

By taking all of these actions, Vodaphone can ensure to achieve its target and gain a
6% increase in its market share within a year.

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Conclusion

Proper marketing activities or initiatives can do wonders for any brand. Marketing
strategies help the brand to create a strong brand image and gain long-term customer
loyalty. The telecommunication industry has a lot of potential in the future. Vodaphone
should focus on maintaining its market position through effective marketing tactics.

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References

Ahlinder, E. (2018). Fair Compensation for Telecom Rights in Land in Sweden and the UK.
European Property Law Journal, 7(1), pp.32–62. doi:https://doi.org/10.1515/eplj-2018-0003.

Cateora, P.R. and Graham, J.L. (2020). International Marketing. New York: Mcgrawhill
Education.

Dabhade, I. and Dewan, M. (2015). On the History of Telecommunication: Patents, Disputes and
Rivalries that Shaped the Modern Telecommunication Industry. Telecom Business Review, 8(1).
doi:https://doi.org/10.21863/tbr/2015.8.1.005.

Dmitrieva, A.I. (2017). THE ROLE OF MARKETING IN SHAPING INNOVATION


STRATEGY OF THE COMPANY. Business Strategies, (1), pp.32–36.
doi:https://doi.org/10.17747/2311-7184-2017-1-32-36.

Du, J., Strydom, J.W. and Jooste, C.J. (2016). Marketing management. Cape Town: Juta.

Kampamba, J. (2015). An Analysis of the Potential Target Market through the Application of the
STP Principle/Model. Mediterranean Journal of Social Sciences, [online] 6(4).
doi:https://doi.org/10.5901/mjss.2015.v6n4s3p324.

Kotler, P. and Armstrong, G. (2019). Principles of marketing. 17th ed. Hoboken: Pearson Higher
Education.

Levihn, U. and Levihn, F. (2016). The Transition from Product to Solution Selling: The Role and
Organization of Employees Engaged in Current Business. Journal of Business-to-Business
Marketing, 23(3), pp.207–219. doi:https://doi.org/10.1080/1051712x.2016.1215739.

Polo, M.P. (2020). Acts or events? A perspective from the marketing mix. IROCAMM-
International Review Of Communication And Marketing Mix, 1(1), pp.56–66.

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Puligadda, S., DelVecchio, D. and Gilbreath, B. (2013). ‘Meaningful marketing’: A process
investigation of how consumers reward noninterruptive, nonpersuasive marketing
communication. Journal of Marketing Communications, 20(5), pp.325–338.
doi:https://doi.org/10.1080/13527266.2012.693121.

Vaněk, M. (2020). Evaluation methods of swot analysis. GeoScience Engineering, 58(2), pp.23–
31.

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