VODAFONE MARKETING STRATEGY
VODAFONE MARKETING STRATEGY
Voice Data Fone popularly known as Vodafone is one of the largest telecommunication service provider in the world based in London, United Kingdom with more than 391million subscribers as of 2011 and with worldwide operation that reaches across 30 strategic countries and 40 network partners in different key cities in Africa, USA, Middle East, Asia Pacific and Europe employing more than 75,000 personnel. They have a wide variety of products and services in mobile communication including mobile phone device, postpaid and prepaid services including roaming services, usb device and more. Vodafone is a publicly listed company that constitutes a large stock index in London Stock Exchange that reaches up to £89.4 million pound capitalization shares as of 2011. They are using the most innovative telecommunication technology facilities to help individuals to get connected and businesses to make them grow.
Their network marketing strategy reaches from all parts of the world has become their most effective tools that made this organization widely accepted. This network has become possible through acquisition and partnership from other leading telecommunication companies throughout the world. They have at least 45% ownership in Verizon Wireless Telecommunication which is the largest telecom in US, in Africa they have acquired 70% shares in Ghana Telecom, they also gain partnership with Du in Middle East and in Asia Pacific Region they have also partner with Telekom Malaysia. These are just some of their domestic and international partners worldwide. They are basically customer service and product oriented to constantly re innovate their offers for the benefits of their clients.
Vodafone’s direct competition and also one of the most widely recognized telecommunication is China Mobile but during 2011 they have made a strategic cooperative agreement during World Congress in Barcelona Spain that makes them the most powerful team in the mobile communication industry. Some of their direct competition includes Tata Indicom, MTNL, Airtel, BSNL and Virgin Mobile. But one of the strongest direct competition of Vodafone is Deutsche Telekom AG in Europe although Vodafone have a very strong market capitalization advantage reaching up to $138.06 billion dollars compared to Deutsche Telekom which only has $49.58 billion dollars this telecom company is giving them stiff competition in Europe. Vodafone also has 14.49% operating margin advantage while Deutsche Telkom garnered only 10.52% marginal share as of 2010. According to their Chief Executive Officer Arun Sarin, this competition has brought a slow growth of service revenue of 0.3 to 0.4% in their organization in Europe. This calls for strategy update, cost reduction and revenue stimulation to sustain their competitive advantage. However they have a strong advantage in South Africa, US and Middle East that exceeded more than their growth expectation which is 3.2% as shown in their 2011 financial report.
Vodafone also has an effective marketing strategy called “Rebranding”. In their acquisition of one telecom company in India, Hutchison Essar one of the largest cellular telecom in India rebranding or changing the name from Hutchison Essar to Vodafone Essar is the key to their success. This helps them to easily exchange technology and easily be accepted by a large market in Indian Community without the needs to hardly push their products knowing that Hutchison Essar has already acquired a huge market shares and by incorporating their products and services, Vodafone Essar has generated a very strong market acceptance almost instantly in India.
They also earn a very huge audience through their promotion and advertising campaign using all kinds of media including print ads, billboard, magazines and online advertising. One of their most successful ads includes their talented and wacky characters Zoozoo’s has become a series of commercials in television that promotes their products it reaches millions of viewers from different countries as something more than a commercial but a television mini sitcom to watch. They even reaches millions of Facebook, Youtube and other Social Networking fans to like their short but entertaining commercials that highly entices viewer to patronize their products and services. Their advertising and promotional marketing strategy has become very effective that gives their networks and retail shops a very competitive advantage to position their products and services like in UK they have expanded thousands in store sales outlets including their own shops and distributors. Customer realizes the benefits and performance of their offers including its price and promotional strategies that continues to dominate the market. If ever there will be a problem their 24 hour customer support and online services are always there to handle their query making their offers a complete package.
References; http://finance.yahoo.com/q/co?s=VOD+Competitors http://www.slideshare.net/surabhi786/vodafone-essar-marketing-analysis http://www.infoworld.com/t/communication-and-collaboration/competition-pressures-vodafone-results-316 // http://www.vodafone.com/content/index/about.html http://www.slideshare.net/sayazhar2010/vodafone-marketing-strategy