Vodafone Case Study

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Situation Summary The Vodafone case study has given us a good overall view of the company and shown the companies good and bad points, whilst showing the mobile phone business as a whole and explaining the ups and downs of the industry. The SWOT analysis included in the appendix helps us see the situation of Vodafone and describes the strengths, weaknesses, opportunities and threats. This is an aid when looking at the internal and external aspects of the company. Although Vodafone are the biggest mobile network in the world, they also have their problems. As a global organisation Vodafone have learnt how to acquire customers, building up a customer base in the UK of 13 million. But, they have become far too focused on acquiring…show more content…
Through segmentation of the market by age, Vodafone can target each specific segment effectively, providing what the consumer desires most. Vodafone also segment their market based on the lifetime value of their customers. Individuals who have a mobile phone on a contract payment plan are of higher value to Vodafone than an individual who is on a pay as you go payment plan. This is due to the fact that Vodafone are guaranteed a certain level of income from their customer for a period of 12 to 18 months. This can then help determinate the allowable spend per customer on marketing to help determine return on investment. Finally, Vodafone also segment their market by usage rates of their customers. Vodafone offer a variety of calling plans to suit customer's usage rates. They even offer specialist calling plans which are tailored to suit businesses. Through this method of segmentation Vodafone are able to identify their most valuable customers. The main bases of segmentation are demographics, geographics, psychographics and behavioural Demographic – This is the most common method of dividing the market and is segmentation based on general population characteristics. The age group which students are classified into are highly aware of new technology, especially mobile phones and often desire the latest technology. Geographic – This is segmentation based on the area that people live in. Students usually live away from home during university and

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