1.
Tajudeen Ogunsola
Project – Marketing Plan
MOMN009H7: Marketing Management

2.
Ourjourney

3.
1982
established
as
1984
Racal & Millicom partnership
Became Vodafone
HQ in London
1985
1st mobile
phone call made
1991
1st to launch
digital service
1997
Changed
to red
1994
1st Retail store
1995
1st operator
with 5 million
users
1997
Rebranded
2010
little nip-tuck
2006
‘The power to you’
look
1st
to launch
3G voice call
2012
1st 4G Data-data-focused
operator
2006
Entered 26 markets,
Control 16 mobile operations
& hold 10 minority stakes in
other Telco's
2014
(March 31st)
Has 434 Million Global
subscribers
Thefutureisexciting.
1995
Acquired
two third of
Talk Land
2017
New Global Brand Position
Strategy
Timeline – We have made progress.
Business Sector:
Telecommunications
Operating Geography:
United Kingdom, Global
Revenue: €2.7 billion (FY
ending March 31st 2017) –
UK Marketing budget:
£55 Million per year
Source: Vodafone, 2017;
Marketing Week, 2017;
Forbes, 2017

4.
Vision & Approach

5.
Vision
Unleash the power of
Vodafone to contribute
to sustainable living for all
Approach
• Delivering transformational solutions
• Operating responsibly and ethically
Business
principles
The
Vodafone
Way
Code of
Conduct
Subscribers
Stakeholders
People
&
Culture
Source: Vodafone Group Plc, 2017

6.
Strategy Direction

7.
Strategy
Eliminates the negative associations of
poor service, excessive fees and
inadequate customer service. Implement a
comprehensive, integrated marketing
communication programme that positions
Vodafone in the profitable premium
segment
Source: Based on SWOT Analysis by (Baines and Fill 2014)
(A). Strengthen cross-platform communication
channels to encourage purchasing decisions and
build customer loyalty.
(B). Increase monthly contract sales; PAYG, SMS /
Voice and data services.
(C). Strengthen the competitive advantage to
expand market leadership.
Objectives
Goal

8.
SWOT Analysis

9.
W
Weaknesses
1. Poor network convergence.
2. Losing customers.
3. Decrease of brand
valuation.
4. Impact of Brexit
SWOT Analysis
S
Strengths
1. Profitable revenues
generated.
2. Increased subscriber base.
3. Differentiator strategy is
fuelling growth.
4. Premium cost
T
Threats
1. Strong competition
2. Low margins.
3. Mobile Number Portability.
4. BT and EE monopoly
O
Opportunities
1. 4G capabilities.
2. Improvement of network
coverage.
3. Digital “gigabyte society”.
4. Emerging markets.
Source: Based on SWOT Analysis by (Baines and Fill 2014)

10.
PESTLE

11.
PESTEL Analysis
P
Politics
E
Economy
S
Social
T
Technology
E
Environment
L
Legal
▪ Political & economic
uncertainty causing sharp
currency fluctuations
(Parliament, 2017)
▪ The gigabit society (His
Technology, 2017).
▪ Growth in smart devices is
giving consumers a ‘connected
mind-set’ (GSMA, 2017)
▪ Vision of zero environment
harm safety culture (Jackson,
2017).
▪ Increasing reused and
recycling culture (Freehill,
2017).
▪ High spectrum cost, amidst
talk of 5G (Ofcom, 2017)
▪ Impact of Brexit on business
growth (parliament, 2017)
▪ Investment in 5G (FT, 2017).
▪ Growth in SVOD (Subscription
Video on Demand) service via
mobile from networks
providers (Williams, 2017)
▪ Regulatory clearances
hindering business
restructuring (Gov.uk, 2017)
Source: Based on PESTLE Analysis (Francis Aguilar, 1967)

12.
Porter’s Five Forces

13.
Threat from New Entrants
Potential New Entry
Bargaining power of customers
(buyers)
Buyers
Bargaining power of suppliers
Suppliers
Supplier's power of negotiation
Substitutes
Changing business models by MVNO (Mobile Virtual
Network Operators) (Ofcom, 2017).
A "better offer" is the second most common factor for
switching suppliers, which gives buyers (subscribers)
more bargaining power (Mintel, 2017).
Competitors are strong and pose high threats (EY,
20217).
The replacement of traditional telecommunications
services by MVNOs, but the threat is moderate for the
time being (Deloitte, 2017).
MODERATE
HIGH
HIGH
MODERATE
Competitive Rivalry
Price competition to attract
subscribers (Mintel, 2017).
Porter’s Five Forces
Source: Based on Porter’s Competitive Five Forces (Michael E. Porter, 1979)

14.
BCG Matrix

15.
Source: Based on Boston Consulting Group (BCG Matrix), 1970
GROWTH
Relative Market
Share (Cash
generation)
AVERAGE flow versus those of competitors
Poor Dog
Cash Cow
Question Marks
Star
High
High
Low
Low
BCG Matrix
C3) Voice & SMS on contract
monthly is a prerequisite to
generate continuous cash flow
and preserve Vodafone's relative
market share. Invest defensively
in resources and marketing to
drive brand leadership and
maximize cash flows into PD4.
PD4) Minimize investments in
voice and SMS, both products
are a monthly contract
requirement, drive broadband
services in question marks to
continue positive free cash flow.
QM2) Build an aggressive market
share for broadband, data and
internet companies and then
follow the PD4 strategy.
S1) Maintain & increase the
relative market share for monthly
data / contracts & PAYG with
aggressive marketing
investments.
Invest in resources to drive 4G
infrastructure forward, to drive
up profit to QM2.

16.
STP–Segmentation,Targeting&Positioning

17.
Segmentation
i. Identify the firms dimensions
&/or variables to segment
market.
ii. Analyse opportunities for
market growth.
iii. Support segmented
group(s)/cluster(s) with
updated relevant findings.
STP – Implementation
i. Select the firm’s targeting
strategy/methods
ii. Apply appropriate
market/brand
challenge(s) to target
strategy.
Targeting
i. Identify firms customer
perception & or opinions.
ii. Position offering (product,
service &/or experience) in
the mind of customers.
iii. Now, apply this to the
Marketing Mix strategy.
Position
Marketing Mix
SIVA framework
is used for Vodafone
Analyse, Apply & Act
before Positioning
Target 1: ‘younger
millennials’ looking for
smartphone, with
purchasing power above
£1,000. Aged 18-45,
fathers with kids aged 16
or under.
Target 2: ‘matured
millennials’ adopters in
socio-economic group A.
Aged 46-75, price-sensitive
non-smartphone owners,
looking to upgrade or
purchase new £500 and
above range.
STP – (Segment, Target & Position)
Source: Based on ‘STP – Segmentation, Targeting & Positioning’, (Aaker, 1995; Kotler & Keller, 2011; Bayer, 2010)

18.
Segmentation Contribution Expectation Value Commitment
Customer Value The contribution of the
customer (e.g., new or
existing) to the
profitability of Vodafone
UK is based on the
current relationship.
Expected (predicted)
contribution to Vodafone
UK's profitability based on
expected "lifetime"
relationships.
Residual profitability
(e.g., 6, 12, 24, 36
months) of customer
relationships based on
the value of income
Type of relationship (i.e.,
PAYG, SIM-only or
monthly contract) based
on loyalty to Vodafone UK
Segmentation High roller Budget candy Negotiator Explorer
Customer
Behaviour
Promote a contract with
premium phones.
SMS dialogue relationship
only, but can NEVER opt-in.
Receptive to offers, but
incentives are a MUST!
Suitable candidate for VAS
(SVOD services or third-
party) offerings.
Segmentation New Growth Maturity Decline
Customer
Life Cycle
Will be a new customer. Opt for a new contract, buy
top-ups, upgrades or get a
second phone.
The use of the
customer's phone is
stable
End of the relationship
between the parties.
Segmentation Challenger Unhappy Sally/Bob Disloyal Goner
Customer
Migration
Customer circumstances
changed or sought
variety.
The dissatisfaction of
customers but the
potential to stay.
Loyalty to several
competitors
It was great while it
lasted.
Source: Based on ‘Customer segmentation in the telecommunications industry’, (Bayer, 2010)

19.
TargetCustomers

20.
Push
innovative
premium
hardware
“Future
optimism”
campaign
AI; Voxi;
SVOD;
Digital
Content
Revenue
growth
Change
expectations
Pull
Contract,
Data &
Voice
Earn
Customer
Loyalty
Push
Uninterrup
ted Service
Revenue
growth
Build on
Experience
Push ‘All
Things
Digital’
Unlimited
Data for
Best
Experience
Entertain
urself –
Movies,
music, & SM
Revenue
growth
Drive
expectationfor
experience
Mobile Handset Ownership Contract & PAYG Data Bundles & Digital Content
INVEST IN 3 KEY AREAS TO GENERATE GROWTH THROUGH A VIRTUOUS CYCLE PLAN
BUSINESS STRATEGY
EXPLORE, ATTRACT AND PULL YOUNGER MILLENNIALS TO THE BRAND OFFERING BEST FLEXIBILITY AND DIGITAL CONTENT MOBILE EXPERIENCE NETWORK
VODAFONE UK STRATEGY: ‘The future is exciting. Ready?’
BUSINESS GOALS
DRIVE PAYG, SIM- ONLY & FLEXIBLE CONTRACT BUNDLES TO INCREASE ANNUAL REVENUES
TARGET 1: YOUNGER MILLENNIAL
Target 1: Connect with fathers with children aged 16 or under ‘younger millennials’ looking for smartphone, including accessories with
purchasing power above £1,000. Aged 18-45 target the groups, using through digital communities across regions, to retain existing subscriber’s
and gain new subscribers.

21.
Push
affordable
premium
phones
“connect
with
love”
campaign
Access
Digital
Content
Revenue
growth
Provide
support
Push
Discount
offers
Develop
Loyalty
Push
Internet
Access
Revenue
growth
Add
friends &
Family to
Contract
Push ‘Hello
World’
Unlimited
Data for
Best
Experience
Watch, listen
& Talk to
your
favourite
celebs/BFF’s
Revenue
growth
Support,
Service &
Experience
with
Vodafone
Mobile Handset Ownership Contract & PAYG Data Bundles & Digital Content
INVEST IN 3 KEY AREAS TO GENERATE GROWTH THROUGH A VIRTUOUS CYCLE PLAN
BUSINESS STRATEGY
ATTRACT,REASSURE AND WIN MATURED MILLENNIALS TO THE BRAND WITH INCENTIVISE AND DISCOUNTED OFFERING, SERVICE-FOCUSED NETWORK
VODAFONE UK STRATEGY: ‘The future is exciting. Ready?’
BUSINESS GOALS
DRIVE PAYG, SIM- ONLY & FLEXIBLE CONTRACT BUNDLES TO INCREASE ANNUAL REVENUES
TARGET: MATURED ADOPTERS
Target 2: Connect with male and female ‘matured millennials’ adopters in socio-economic group A. Aged 46-75, non-smartphone owners, who
are price-sensitive but looking to upgrade or purchase new in the £500 and above range. Actively pull them into the brand usingOOH media
(television, radio & billboard ads) and email marketing, offering incentives to retain existing subscriber’s or discount for new subscribers.

22.
Positioning

23.
Vodafone's current position on the perception map is based on five key questions answered in the 2017 Mintel
survey.
1. Brand Attitudes 2. Brand Map 3. Brand Personality 4. Key Brand Metrics 5. Brand Awareness
High
Low
High
Low
Source: based on Positioning Theory by Wedel et al, (2000)
Positioning
High
Quality
Low
Quality
High Cost
Low Cost
Source: based on 2017, Mintel Survey
Vodafone's new position, based on the IMC plan proposed for 2018, is to reposition the brand in the premium segment.

24.
Marketing Mix

25.
SIVA Model replaces the 4Ps for a
customer-centric driven connectivity
experience.
NEW
Experience
Solution, Information, Value & Access = SIVA
Traditional
Source: Based on SIVA Marketing Mix framework by (Dev and Schultz, 2005a, b, c )
Marketing Mix

26.
SIVA Framework Model

27.
S V A
EXPERIENCE RELATIONSHIP
OFFER
Product Place Promotion
Solution
I
VALUE
Price
Information Value Access
PRODUCT is SOLUTION:
Vodafone's sales are based
on subscriber needs.
PROMOTION is INFORMATION:
Vodafone provides subscribers with
information to decide.
PRICE is VALUE:
Prices are based on the values of
the "subscribers" needs and not
on competitive offers.
PLACEMENT is ACCESS:
The distribution of products is not
dictated but is based on the
preferences of the subscriber.
4Ps Mix
SIVA Mix
Engage
&
sustain
relationship
The solutions
Vodafone’s
offering
Customers
communication
preferences
Vodafone’s
distribution
marketing
channels
Source: Based on SIVA Marketing Mix framework by (Dev and Schultz, 2005a, b, c )
SIVA Model

28.
CampaignTimeline
Fit for growth

29.
STEP
01
STEP
02
STEP
03
STEP
04
STEP
05
Campaign Timeline
Pre- Launch & Post-Launch
Review and algin
Vodafone’s internal
communication to
IMC strategy
Collect department
agreements for ‘signs
offs’ and launch IMC
strategy; *Digital.
Social Media PR,
Advertising, Interactive;
Postal, Apps; Radio & TV
Recruit all third-
party agencies
attached to re-
positioning
project. Set out
briefs for PR
agency to roll-out
PR campaigns.
Digital: ‘Pull Strategy’
Keyword campaigns
SEO activation
Twitter: simulate
discuss on Vodafone
Instagram: Post latest
handsets & partner
with influencers.
Youth: SVOD offer with
Netflix & Amazon 6 months
free (High-end phone
products only)
Matured: Discounted offer
for existing subscribers
upgrading or Free
earphones for new
customers.
Key Implementations

30.
Conclusion
Stayconnectedyourway.

31.
FINANCIAL
PERFORMANCE
CUSTOMER/
MARKETING
GROWTH
PROCESS
EXCELLENCE
PEOPLE &
LEARNING
Revenue Growth
Push the topline up
Productivity Improvement:
Annually increase bottomline
Customer Acquisition: Don’t sell
one – offs; sell groups
Customer Retention: Thrive on a culture of
intimate customer contact
Product / Services
Management: Enhanced
with solid program support
Marketing
Management: Build
brand awareness
Sales Management: Solid
organization with effective
leadership
Operational
Management: Increase
throughput & quality
Human Capital / Competencies: Right people
in the right positions
Culture of Performance & Accountability:
More rigorous attention to business metrics
Vodafone's success is based on strong financial performance, revenue growth and productivity improvements.
This is achieved by offering subscribers a great value.
Improvements in management, process excellence and organizational effectiveness
drive the company forward.
Fit for growth
'The future is exciting. Ready?'

32.
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Marketing Mix
Alternative marketing mix investigated before concluding on SIVA
framework for Vodafone’s 2018 IMC plan. Alternative models failed to
fit Vodafone's marketing mix such as the 7Ps (additional People,
Process and Physical Evidence) Boom & Bitner, (1970); 4Cs
(Consumer, Cost, Communication and Convenience) Lauterborn
(1990); OVER (Offering, Value, Experience and Relationship) model
(2012); Ettenson et al. (2013) S.A.V.E (Solutions, Access, Value and
Education) and final 3M (Modern Marketing Model) Friedlein,
(2017). Subsequently, Dev & Schultz (2009) SIVA (Solution,
Information, Value and Access) framework apply here and
recommended for the plan.

35.
Thankyou
Questions?

36.
Marketing Plan, 2018