Segmentation of the current market

Describe about the marketing plan.

The present organization, which selected in the study, is Vodafone. Vodafone is a British Multinational Company, which operates its business across the major cities of the Globe. Its headquarters is in London with its registered office at Newbury, Berkshire. The assignment will focus towards the business operations of Vodafone Australia. Vodafone Australia is ranked as the third largest telecommunication sector in the entire world (Vodafone.com.au, 2016). Matching with the requirements of the study, the second part of the assignment will reflect the following factors. Market segmentation of Vodafone, development of a proper target market based on the newly developed tariffs is the primary two factors in the present marketing plan. The last two factors, which are highlighted in the study, will focus towards the positioning of the offerings and development of a current marketing plan, which includes the notion of the 7ps in marketing mix as well as the concept of the strategic fit in the business operations.

To conclude this particular point towards the development of a proper segmentation, it is the primary job to scan both the internal environment as well as the external environment. The segmentation of the market can be developed based on the market structure. The telecom industry of Australia falls under the notion of the oligopoly competitive market structure. The oligopoly market structure maintains different kinds of marketing features as compared with the other marketing structure (Aaker, 2013). There is more than one firm in this particular market structure, which operates its business in the same industry. The decision making the power of one industry affects the decision making the power of the other industry.  The notion of the market segmentation is one of the major practical approaches, which is followed by different industry in the daily business operations and plans. The process of breaking of buyers into various small groups those are distinct from each other but internally similar. Vodafone Australia follows three kinds of business activities, which includes Segmentations, strategies, as well as tactics. The company firmly believes that the application of the market segmentation has a significant impact on the overall strategy as well as tactical development. The near majority of the market includes people with different products needs as well as preferences. The company needs to focus on the mentioned three factors, which includes the notion of the strategy, offerings, and marketing tactics (Baggini, 2012). To develop proper market segmentation, the company needs to follow the segmentation procedures by analyzing the demographic condition of the country, the lifestyle of the country and by the products as well as the services that are offered to the customers.

Selection and description of target market

The economic condition of Australia is very much stable and however it is the ideal place to organize proper business proceedings. The study of population is known as the demographic situation of the country. Vodafone can segment the market in a better way to differentiate between the customer bases (Cateora, Gilly and Graham, 2013). Some of the characteristic parameters, which affect the demographic conditions of the county, are age, income, and nationality. By analyzing all these factors in a proper manner, Vodafone can conclude about demographic conditions of the country.

The second factor is the lifestyle of the people. This particular segment will end about the different alignment to demographics and will reflect the how individuals and families have different requirements of the products as well as services in the daily operations.  The Australian standard of living is well maintained and very much high (Collins, 2012). Using this particular information Vodafone can develop different kind’s rates as well as traffic plans. 

The third point that needs to be analyzed is to conclude the products as well as services that the company are offerings its customers. The demands of the customers are not limited and on the other hand, with the limited resources, it is not possible for the organization to satisfy different needs of clients in a single point of time (Finch, 2012). However, Vodafone, Australia needs to develop and offers different tariffs based on the various segments of the market.

Figure 1: Segmentation

The notion of the target market is a specific group of customers at which a company aims its products as well as services. A better company is towards identifying their potential customers on which the organization for example Vodafone will be delivered both the products as well as services that are in demand. The organization, which is selected in the assignment, is Vodafone, which mainly operates its business in the service sector (Homann, Koslowski and Lütge, 2007). The company firmly believes that the target customers are those who are most likely to buy services from the organization. To conclude the best target market, the company needs to organize a proper research process. To arrange a proper research process, the company in the study has done a remarkable job to scan both the external environment as well as the internal environment.

The entire communication sector maintains a versatile market structure. Vodafone supports different segments of the target market, which are based on various age groups. Age is one of the most crucial factors in the development process of a telecom target market (Hood, 2013). The organization develops different kinds of tariffs plans by keeping in mind the various requirements of different groups of customers. By analyzing all the specific needs of the various groups of users, the company will be benefited in particular ways towards the development process of a proper business plan. Target market segment strategy and marketing needs are the two factors, which are related, in the marketing plan of the firm. Vodafone will sell its products as well as services to a customer segment that requires both the basic mobile telecommunication services in a single solution. However, other features will be more accurate each of the customer segments in the market structure (Institute of Leadership & Mana, 2012). Offering modified quality product as well as quality services to every customer at a competitive and affordable price level will be one of the marketing goals of Vodafone. The majority of the market segment that Vodafone targets seek reliable communication procedures, which are not difficult to access, Vodafone will specifically tailor its market offering to each customer segment. The majority of the client segment, which Vodafone Australia has targeted, concludes reliable communications that are very much easy to use.

Positioning of the offerings based on the analysis of the competitor

Customers are the primary factors in any business structure. If the customers are satisfied, the company will be benefited in particular ways. Vodafone holds a leading position in the entire telecom industry across the world. The idea of position is the overall activity, which is undertaken by the marketers to develop and maintain the sense of value regarding its brand as well as its identity in the minds of the customers as well as against competitor’s brand (Kotler and Armstrong, 2012). To initiate a proper mapping towards a proper positioning the company first needs to analyze the various factors, which affect the structure of the market. In oligopoly market structure the decision, making the power of one firm affects the decision making of the other firm.

Vodafone firmly believes to the point of clarity, consistency, credibility as well as competitiveness is some of the essential factors, which conclude the positioning of the market. The ultimate objectives of any organization depending upon the nature of the business are to maintain an active as well as a proper customer base. To so Vodafone needs to develop appropriate offerings to its clients by maintaining an appropriate pricing strategy and offering a modern as well as good technological upgraded products as well as services to its customers. For example, Vodafone has a brand value and to be high priced in the offerings, while reality is quite the opposite as Vodafone offers technologically upgraded products and services that suit every budget. With the application of proper positioning, it allows the organization to create an image among the customers. In an overall manner, it can be explained that Vodafone implements and develops an appropriate business operations, which will prove very much beneficial for the company (Kurtz and Boone, 2012).

The current marketing plan will focus towards the development process of two important marketing tools, which includes the concept of the marketing mix and the idea of strategic fit. The marketing mix is an important marketing tool where there are four important factors, which Vodafone needs analyze all these factors towards developing a proper marketing plan. The concept of the marketing mix includes seven crucial factors, which needs to be emphasized in an appropriate manner. Price, Place, Promotion, and Products are the four elements, which are highlighted towards the application of this particular marketing tool (Mimiko, 2012).

Figure 2: Marketing Mix

Vodafone needs to implement a proper pricing strategy to develop appropriate competitive advantages. The company in the study firmly believes towards the development process of an appropriate competitive pricing strategy just like any other network providers because of the competition, which exists, in the telecommunication sector of Australia. On the other hand, Vodafone also maintains a flexible pricing mechanism based on the prevailing marketing conditions of the country. The main point which needs to be analyzed is when the company relaxes from taxation policies of the Australian government it reduces the prices of different tariffs. The company also believes towards the option of making my pack, which gives the customers an additional option to develop a plan based on the requirements.

The second factor is towards organizing a proper promotion and promotional elements. Vodafone develops an aggressive marketing strategy ranging from traditional printing media to social network marketing. There are two modes of promotional procedures. One is the current mode and on the other, is the usual method of promotion. Vodafone concentrates on both methods of communication processes. With the application of a proper promotional procedure, all the companies based on the objectives as well as the nature of the business will benefit towards developing a healthy as well as an appropriate communication channel. The development of a suitable communication channel will allow both the organization as well as the customers to be benefited in different ways. It will allow the company to conclude about the various trends and demands of the customers and the most significant part it allows the customers to stay updated about the latest products as well as services.

The third factor, which is highlighted in this particular marketing tool, is the notion of the place. Vodafone penetration in Australia is very much remarkable as the services and networks, which is found in different locations in Australia. Currently, the gross subscriber base has passed nearly 200 million in the various sectors of telecom (Wild and Wild, 2012). Vodafone maintains the different area in the telecommunication market, which includes 3g mobile sputum, 4g mobile sputum, mobile broadband as well as internet facilities.  Some of the standard features, which make Vodafone, a unique telecommunication company, networks because of the following reasons. It maintains a wider range as well as a wider variety of network in each sector of Australia. The network is very much widespread which brings many customers to Vodafone in Australia and finally it is the third largest telecommunication industry in the world and operates it operates its business in different significant cities across the globe.

Vodafone provides a full range and varieties of different kind’s pride and services to its customers. To maintain a proper customer base as well as good customer retention policy Vodafone, Australia has developed different types of products as well as services by analyzing the demands of the clients in an appropriate manner. The list of the goods and services, which Vodafone Australia provides to its customers, are reflected in the following part of the study. Vodafone Australia maintains both prepaid as well as postpaid services to its customers. Some of the significant value added services this particular company provides instant balance enquiry, caller tune, instant  24 hours recharge facility, call wait as well as call divert and most importantly the company provides all time free access to its 24×7 live portal through which different users will get different kinds of information about daily updates and regular options. However, there are some additional services, which Vodafone Australia concludes are SMS based information services, various types of voice mail services, different kinds of hello tunes as well as ring tones on offer and on demand. Recently the most significant part, which this leading telecom industry provides to its customers, is the idea of easy post pay bill payment solutions as well as an enterprise solution (Moll, 2012). These are the varieties of products and services which Vodafone, Australia develops in the concept of product mix in the marketing plan and to its customers in the business operations.

Strategic fit is the idea of developing consistency between customer’s priorities of competitive strategy and supply chain capabilities, which are specified by the supply, chain strategy. The role of the supply chain management in any business organization irrespective of its size and nature needs to maintain a proper supply chain management, to maintain a smooth and easily flow of the business activities. Vodafone maintains an appropriate competitive as well as supply chain strategy, which concludes the same objectives as well same goals in the overall business operations (Potter, 2012). To develop a good strategic fit for the overall business transactions, the primary job of Vodafone is to relate the requirements of the customer’s basis on some standard parameters.

 The quality of the product, as well as quality of the services, needs to be the manner in a proper way. To achieve a good strategic fit Vodafone needs to maintain healthily as well as appropriate business strategies. There are certain organizational goals as well as objectives which different organization including Vodafone irrespective of its nature and size needs to achieve in the firm. Plans are developed to make the business operations in a smooth and accurate manner (Pride, 2012). 

At present Vodafone has divided the notion of the strategic fit into four parts, which include customers, enterprise, networks, and operations. The first part is to analyze the customers. To do so a new strategic approach to customers not in Australia for the rest of the world, pricing, as well as bundling, has done in a proper manner to offer customers a greater freedom of usages and at the same points of time, it stabilize ARPU (Aras and Crowther, 2012). The second aspect, which is analysed, is towards strengthening the enterprise position. The company in the business operations develops different kinds strategies which will ensure the towards the development process of a healthy as well as proper enterprise model. The company in the study strengthening the position in the business by enhancing the products as well as services to vast and medium size business and developing a dedicated enterprise and operational structure (Pride, Hughes and Kapoor, 2012).

The most important part in any of the telecommunication industry is towards developing a proper and enhanced network towards concentrating on the 4G services. High-speed data, Voice over IP (VOIP), and delivering a consistency in the overall network at any geographical position is the ultimate objective of the overall business operations. Vodafone, Australia aims towards the enhancement the operational proceedings of the firm by developing and applying different kinds of business models in the business activities of the company, which specifies the functional operations to the movement across and within the countries (Thorson and Duffy, 2012). Vodafone has been benefited in particular ways, which allow the organization to develop a proper plan of activities for fulfilling all the necessary criteria (Werhane, 2012). 

Conclusion

The concluding part of the second assignment will focus on the four critical factors, which are required by Vodafone to develop a proper business structure. Proper segmentation of the market, developing as well as analyzing an appropriate target market, developing a good value positioning against the competitors and designing of a proper marketing plan, which includes the notion of the marketing mix, as well as strategic fit, are the four-highlighted point, which is analyzed in a detailed manner. Vodafone Australia is the third largest communication company in entire Australia. There are certain organizational goals and objectives which majority of the companies needs to develop and needs to follow in the business operations.

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