Vodafone New Zealand Proposal

Marketing Project Proposal for Vodafone in New Zealand

MK701 - GROUP 1

Lecturer: Armin Wartanian Intake: March 2013Word Counts: 1300 wordsSubmission Date: 18th April, 2013

Name ID

Limon Ghosh 1112027 -Team Leader

Joshua lopez 1208046 -Team Member

Varun Anand 1108010 - Team Member

Sandeep kumar 1212023 - Team Member

Joseph thilakaratn 1212009 - Team Member

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Executive Summary:

We are writing this proposal for Vodafone to conduct secondary research that would assist

Vodafone to grow constantly in 2014. The primary objectives are to evaluate their current

marketing strategies, tactics, systems and to determine promotional platforms that can be used to

stay as a market leader.

Vodafone is currently following bypass attacking strategy. In 2014 we are suggesting position

strategy for Vodafone. Vodafone currently following vertical system and in 2014 we recommend

horizontal system. Vodafone’s current marketing mix is functioning excellent and they can

continue it in 2014.

To achieve the objectives we will recommend Vodafone to follow position defensive strategy

and horizontal marketing system to maintain growth.

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Table of Contents

1. Introduction ---------------------------------------------------------------------------------4-5

●Background---------------------------------------------------------------------------------4

●Objectives-----------------------------------------------------------------------------------4

●Scope ----------------------------------------------------------------------------------------4-5

2. Data Collection Method(s) --------------------------------------------------------------5

3. Body (Facts & Evidence) (LOs1/2) ----------------------------------------------------6-11

●Description--------------------------------------------------------------------------------6-9

●A Suggested Work plan-----------------------------------------------------------------10

●Qualifications for the Task-------------------------------------------------------------10

●Costs------------------------------------------------------------------------------------------11

4. Conclusions----------------------------------------------------------------------------------- 11

●Referencing ----------------------------------------------------------------------------------- 12

●Appendix----------------------------------------------------------------------------------------13

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1. Introduction

Background

Vodafone New Zealand Ltd. is one of the leading telecommunications in New Zealand, and is an

operating company of Vodafone Group Plc – the world's leading mobile telecommunications

company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the

United States. The telecommunication industry is currently characterized with stiff competition

which has translated into improved services and a ‘price war’ – to the benefit of customers.

There are four major market players – Telecom New Zealand Ltd, AT&T Asia Pacific, Two

Degrees Mobile Limited, and Skinny. Vodafone NZ Ltd has a market share of 47.8% (mobile)

(www.vodafone.co.nz).

Objectives

Following the important step of defining the problem, our group met on March 10th, March 30 th

and April 10th, 2013 to arrive at a common understanding of the objectives of the secondary

research. Based on these meetings, the following two research objectives were mutually agreed

upon:

The primary objective is to evaluate Vodafone’s current marketing strategies, tactics, and

systems.

To determine promotional platforms that can be used to stay as a market leader.

Increase the revenue 5% by applying position defense by 2014.

Scope

We will discuss the following:

Marketing objectives

Determine promotional platforms and increase the revenue 5% by 2014.

Marketing Systems

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We will discuss the Vertical systems and recommends Horizontal; determine the benefits of

it.

Strategies

Discuss about the bypass attack strategies and suggest position defense strategy.

Tactics

Will discuss about the marketing mix 4P’s of Vodafone New Zealand.

2. Data Collection Method(s)

We will use secondary data collection method from annual reports, media conversations, and

journals about Vodafone and from Vodafone website. Also we collected data from the Internet

and recent published data/ statistics which are available in different websites. Secondary data are

data that were collected for another purpose and already exist somewhere (Evans, & Berman,

1995).

Advantages of Secondary data

Economical.

Time saving.

It helps to make primary data collection more specific since with the help of secondary

data, we are able to make out what are the gaps and deficiencies and what additional

information needs to be collected.

Improve the understanding of the problem (Malhotra, Hall, Shaw, & Oppenheim, 2007).

Disadvantages of Secondary Data

Accuracy of secondary data is not known.

Data may be outdated.

We are using secondary data collection method because of time frame we have given (Kotler &

Keller, 2011).

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3. Body (Facts & Evidence)

Description

In November 1998, Vodafone Group acquired its New Zealand business (previously known as

BellSouth New Zealand). At the time of purchase, Bellsouth had 138,000 customers. On 31

March 2011, Vodafone New Zealand had a customer base of approx 2.5 million customers.

Vodafone’s strategy is customer focused and product led; the company is continually developing

new products and services which utilize the latest technological advances (www.vodafone.com).

Vodafone Marketing Strategies

Vodafone is currently following offensive strategy. To be more specific they are using Bypass

Attack by buying Telestraclear Company. Vodafone should continue their promotions and their

efficient service to customers in order to maintain/improve their market standing. They got a

bigger market share, eliminated a top competitor and used the assets of Telstraclear to be more

efficient and effective in serving the customers and prepare for the spread of 4G

(www.vodafone.co.nz).

Bypass Attack is bypassing the enemy altogether to attack easier markets instead offers three

lines of approach: diversifying into unrelated products, diversifying into new geographical

markets, and leapfrogging into new technologies (Kotler & Keller, 2011).

In 2014, we suggest Vodafone to change to take position defense. Since Vodafone is the first to

bring in new Zealand 4G, Vodafone should protect their 4G services by providing efficient and

effective customer service so that Vodafone would have Gain root on the 4G market before the

other competitors. Position defense means occupying the most desirable market space in

consumers’ minds, making the brand almost impregnable (Kotler & Keller, 2011).

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Vodafone’s Tactics:

Vodafone’s 4p’s of marketing mix:

Price

In New Zealand Vodafone has been very competitive because of their innovative marketing

strategies they are implementing. Vodafone is currently following both profit and sales oriented

strategy. Mostly they are looking into the price factor especially when they enter into a market

they always make sure to a thorough research as to a what sort of a market that they are going to

sell their products (www.vodafone.co.nz).

Great value On Account plans for mobile:

Vodafone Red

Smart Data

Smart

Smart BYO Mobile

Prepay plans:

Prepay Freebees

Prepay Smart

Supa Prepay

Product

Their entrepreneurship and Innovative team of researchers are doing a major contribution to

improve their technology, this has been one of the key factors that Vodafone is being embraced

by every generation.

Vodafone services:

Vodafone Blacklist

Phone Insure

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Roaming

Data Angel

Home phone

Naked broadband

In Home cable broadband

Fiber broadband

Mobile application

Web hosting & domains

Sky TV with broadband (www.vodafone.co.nz)

Place

Vodafone is currently doing intensive distribution. Vodafone is also always aware of the social

and cultural forces of their markets so that they can manufacture multi range of products catering

the gender role changers of different countries (www.vodafone.co.nz).

Promotion

Top management the Vodafone always believe in the monopolistic competitiveness so that they

will be able to come out with deferent types of products so that they will be able to easily

promote their product among the people of the different parts of the world by winning the

attraction of the many people.

Vodafone’s recent promotion on 4G advertisement is huge success.

Some of the latest packages offered in the year 2012

Vodafone 360 store

Vodafone PC backup

Music downloads (www.vodafone.co.nz)

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Marketing Systems:

Vertical Marketing Systems:

Vodafone presently adopting the vertical marketing system (VMS) where they formally

coordinate distribution channels where its independent members work together to achieve greater

efficiency and economics scale, and to eliminate, Channel conflict arising out of desperate

individual objectives (www.vodafone.co.nz).

A vertical marketing system (VMS), by contrast, includes the producer, wholesaler(s), and

Retailer(s) acting as a unified system. In conventional marketing systems, producers,

wholesalers, and retailers are separate businesses that are all trying to maximize their profits

(Kotler & Keller, 2011).

Horizontal Marketing system:

We recommend that Vodafone can follow a horizontal marketing system by merging the newly

bought firm Telstraclear in order to pursue marketing opportunities. Meanwhile they may

combine their resources such as production capabilities and distribution in order to maximize

their earning potential.

The horizontal marketing system, in which two or more unrelated companies put together

resources or programs to exploit an emerging marketing opportunity. Corporations in a

horizontal marketing system also have the option of combining their capital and production

capabilities (Kotler & Keller, 2011).

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A Suggested Work plan:

Gantt chart:

Team Formation

Gathering of data

Data analysis

Interpretation of data

Feedback

Presentation

Final report

20-03-13 25-03-13 30-03-13 04-04-13 09-04-13 14-04-13 19-04-13 24-04-13 29-04-13 04-05-13

Qualifications for the Task

We, in our Group, are qualified for this paper. Each of our group members are graduated on

Business and all are experienced in their related sector.

Project coordinator – Limon (Masters Degree in Marketing)

Chief Marketing Analyst – Joshua (Masters degree in Marketing)

Professional Accountant – Varun (Bachelor in Accounting)

Sales & Distribution Specialist – Sandeep (Bachelor of Commerce)

Research Specialist – Joseph (PhD in Accounting)

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Costs

Time and money are the most valuable resources within this research and the latter section shows

how finances will be utilized.

The fees quoted below are exclusive of GST and are subject to the standard terms and

conditions. We reserve the right to make adjustments should any assumptions prove to be

incorrect.

4. Conclusion:

Our group commissioned the Vodafone to fulfill two research objectives that emerged from the

need to make well- informed resource allocation decisions. Vodafone is presently adopting the

vertical marketing system. In 2014 we recommend Vodafone horizontal system. Vodafone is

currently following bypass attacking strategy. In 2014 we recommend Vodafone position

defense strategy. Vodafone’s current marketing mix-price, place, promotion, product is doing

excellent and they can continue in 2014 also. We have developed an understanding of the

theories and techniques of planning, conducting, analyzing and presenting market studies. We

will study different methodologies with emphasis on Secondary research. We will uncover the

present marketing strategies, tactics, system and objectives of Vodafone in order for us to have a

basis for its future marketing strategies.

Tasks Amount

Consultation Fees $6000

Foods and beverages $500

Labour Cost $2000

Travel $400

Miscellaneous $200

Total $9100

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References

Evans, J., & Berman, B. (1995). Principles of marketing (3rd ed.). Englewood Cliffs, New Jersey: Prentice

Hall.

Kotler, P., & Keller, K. L. (2011). Marketing Management (14th ed.). Upper Saddle River, New Jersey:

Prentice Hall.

Malhotra, N., Hall, J., Shaw, M., & Oppenheim, P. (2007). Essentials of marketing research: An applied

orientation (2nd ed.). Australia: Pearson Education.

New Zealand Commerce Commission. (2012). Annual Telecommunications Monitoring Report

2011. http://www.comcom.govt.nz/TelecommunicationsMarketAnnualMonitoringReports/p20.

Vodafone New Zealand. Company Information. Retrieved November 19, 2012, from

https://www.vodafone.co.nz

https://www.vodafone.co.nz/

http://www.comcom.govt.nz/TelecommunicationsMarketAnnualMonitoringReports/p20

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Appendix:

MK701 - GROUP 1Group Norms

Group Members:

Name ID






Lecturer: Mr. Armin WartanianIntake: March 2013Team norms:1. Everyone should be active.2. Attend meetings on time and don’t miss them.3. Everyone should finish his part on time.4. If someone cannot do his part, others should help him.5. Respect each other and their efforts.6. Trust each other and have confidence that issues, discussed on meetings, will be

kept in secret.7. Share information and results of his work, that everyone can make

modifications.8. Listen what others saying without interrupting and don’t draw a hasty

conclusion.9. Decisions should be made by majority of the team.10. Have fun!

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Meeting Minutes

MK701 - GROUP 1

Meeting-1

Date – 21/03/2013

Group – 1

Meeting – 1

Start – 2:57PM

End – 3:25PM

Participants:






Topic: Discussion about doing the (Group) Project Proposal.

Discussion -

We have decided to do Marketing Proposal on Vodafone New Zealand. The proposal has to be

done by team effort.

Joshua and Joseph will do body parts and Sandeep and Varun will do Introduction and data

collection method.

All the members will send their project task within Sunday (10/04/2013) to Limon Ghosh (Group

leader). He will combine, edit and finalize the proposal to submit to Mr. Patrick.

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MK701 - GROUP 1Meeting-2

Date – 11/04/2013

Group – 1

Meeting – 2

Start – 2:45PM

End – 3:25PM

Participants:






Topic: Discussion about rough part of the proposal

Discussion -

We have discussed various parts of the proposal and critically analyze the proposal.

All the members will send their project task within Sunday (14/04/2013) to Limon Ghosh (Group

leader). He will combine, edit and finalize the proposal to submit to Mr. Patrick.

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Peer evaluation of group work

All students will be evaluating each of their group members on the standard of their work and effort. This means that, whilst there is a group mark for the assignment submitted as a group, each group member may receive a mark which may differ up to 3%.

For example, if a group receives a mark of 26 for their group strategic plan report, some members may receive a score of 29 if they scored well on peer evaluation, and some may receive 27.

The group members’ peer evaluation will be assessed by your lecturer, who may adjust the peer evaluation mark, if the lecturer disagrees with the peer evaluation.

Criteria will be: Punctuality (attended meetings punctually; responded in a reasonable timeframe to

email/phone/Facebook/ requests Contributed positively to group discussions Completed assigned tasks on time Quality of research and work submitted Contribution to overall success of the assignment

Marks Marks you will award to your group members are out of 4 with 4 being highest, and 1 being lowest.1 = did not meet the standard2 = partially met the standard3 = met the standard4 = exceeded the standard

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YOUR NAME: Sandeep kumarCriteria Example

Fred Bloggs

Group memberLimon Ghosh

Group memberJoshua lopez

Group memberVarun

Group memberJoseph

Punctualityand response

3 3 2 3 3

Contributed positively to group discussions

3 4 2 2 2

Completed his/her assigned tasks for the group on time

2 4 3 3 2

Quality of research and work submitted

2 3 2 2 3

Contribution to overall success of the assignment

3 3 2 3 3

Totals 13 17 11 13 13

YOUR NAME: Varun AnandCriteria Example

Fred Bloggs


Group memberSandeep kumar


Group memberJoseph


3 3 2 3 3


3 4 2 2 2


2 4 3 3 2


2 3 2 2 3


3 3 2 3 3

Totals 13 17 11 13 13

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YOUR NAME: Limon GhoshCriteria Example

Fred Bloggs

Group memberVarun Anand



Group memberJoseph

thilakaratn


3 3 3 3 3


3 3 3 3 3


2 2 2 3 3


2 2 2 3 3


3 3 3 3 3

Totals 13 13 13 15 15

YOUR NAME: Joshua lopezCriteria Example

Fred Bloggs



Group memberVarun

Group memberJoseph


3 3 2 3 3


3 4 2 2 2


2 4 3 3 2


2 3 2 2 3


3 3 2 3 3

Totals 13 17 11 13 13

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YOUR NAME: Limon GhoshCriteria Example

Fred Bloggs

Group memberVarun Anand





3 2 2 2 2


3 2 2 2 2


2 2 2 3


2 2 2 2 2


3 3 3 3 3

Totals 13 11

Documents

Vodafone New Zealand Proposal