Cl a u d i a M u n o z

Ek a t e r i n a Gri g o r u k




PRI C I N G ST R A T E G Y IN TELE C O M M U N I C A T I O N ON...
M a s t e r 2 Aff ai r e s Inte r n a t i o n a l e s et N é g o c i a t i o n Inte r c u l t u r e l l e

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2      D E S C R I P T I O N O F T H E C O M PA N Y


Vo d a f o n e Gr o u p is a Briti s h m u l ti n a t i o n a l m o ...
In ter m s of fig u r e s , Vo d a f o n e rec o r d e d in the ye a r 200 9, 31 5 milli o n doll a r s in cu s t o m e r ...
4     V O D A F O N E M A R K E T I N G S T R AT E G Y


Th e str at e g y of Vo d a f o n e is co n c e n t r a t e d to ...
5        P R I C E S T R AT E G Y D E F I N I T I O N


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5.7      “IT’S ALL IN THE PACKAGING”


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Su c h ser v i c e s ad d val u e to the pro d u c t , an d the eff e c t i v e n e s s in pr o m o t i o n will hel p at ...
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6.4       VODAFONE IN DEVELOPPING COUNTRIES
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An o t h e r str at e g y of V o d a f o n e E g y p t is to sp o n s o r the Eg y p t i a n sp o r t, parti c u l a r l y...
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Aini 2009 vodafone price marketing

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Aini 2009 vodafone price marketing

  1. 1. Cl a u d i a M u n o z Ek a t e r i n a Gri g o r u k PRI C I N G ST R A T E G Y IN TELE C O M M U N I C A T I O N ON EXA M P L E OF VODAF O N E 1
  2. 2. M a s t e r 2 Aff ai r e s Inte r n a t i o n a l e s et N é g o c i a t i o n Inte r c u l t u r e l l e 200 9/20 1 0 C o ntent s 1 IN T R O D U C T I O N ................................................................................................................................... 2 2 D E S C R I P T I O N O F T H E C O M P A N Y .................................................................................................. 3 3 V O D A F O N E A R O U N D T H E W O R L D ............................................................................................... 3 4 V O D A F O N E M A R K E T I N G S T R A T E G Y ............................................................................................ 5 5 P R I C E S T R A T E G Y D E F I N I T I O N ........................................................................................................ 6 6 P R I C E P O L I C Y O F V O D A F O N E IN V A R I O U S C O U N T R I E S ..................................................... 1 2 7 BI B L I O G R A P H Y .................................................................................................................................. 21 1 INTRODUCTION Th e tel e c o m m u n i c a t i o n m a r k e t is an im p o r t a n t se c t o r that co m b i n e s tec h n o l o g y , ser v i c e s an d ent e r t a i n m e n t . It’s an ind u s t r y that de v e l o p s an d ev o l v e s qui c k l y. T od a y the tel e c o m m u n i c a t i o n m a r k e t ha s be c o m e m o r e ch al l e n g i n g . C o m p e t i t i v e pre s s u r e s co n ti n u e to be str o n g , co n t ri b u t i n g to pri c e de cl i n e s of aro u n d 1 5 % per an n u m . S o, tel e c o m pr o v i d e r s ar e fac e d tod a y wit h a red u c t i o n in thei r inc o m e , an d this obj e c t i v e ten d e n c y is ex a c e r b a t e d by the ec o n o m i c do w n t u r n . To sur vi v e in this ch al l e n g i n g en v i r o n m e n t the co m p a n i e s ap pl y diff e r e n t pri c e str a t e g i e s that all o w the m to gai n ne w cu s t o m e r s an d to ke e p the ol d on e s. In thi s work we will pr e s e n t the pri c e str a t e g i e s us e d by Vodaf o n e. Vo d a f o n e is on e of the big g e s t m o b i l e ph o n e ser vi c e pr o v i d e r s in the w o rl d. To m ai n t a i n an d gai n m a r k e t po si ti o n in diff e r e n t co u n t r i e s , the co m p a n y ha s ap pl i e d str at e g i e s that ha v e lea d e d it to incr e a s e m a r g i n s an d gai n cu s t o m e r s . In this re p o r t w e are goi n g to pr e s e n t first ho w is Vo d a f o n e w o rl d w i d e an d the n w e are goi n g to foc u s in so m e co u n t r i e s su c h as: U nit e d Ki n g d o m , Indi a, Eg y p t an d R o m a n i a to giv e a bro a d e r vie w of the m a r k e t i n g an d pri c e selli n g str a t e g y put in pla c e to attai n an im p o r t a n t gl o b a l po si ti o n in thi s m a r k e t . 2
  3. 3. 2 D E S C R I P T I O N O F T H E C O M PA N Y Vo d a f o n e Gr o u p is a Briti s h m u l ti n a t i o n a l m o b i l e net w o r k op e r a t o r he a d q u a r t e r e d in Be r k s h i r e , U nit e d Ki n g d o m . Vo d a f o n e is the w o rl d’ s larg e s t m o b i l e tel e c o m m u n i c a t i o n net w o r k co m p a n y , ba s e d on rev e n u e , an d ha s a m a r k e t val u e of ab o u t £ 71,2 billi o n (Nov e m b e r 200 9). It curr e n t l y ha s op e r a t i o n s in 31 co u n t r i e s an d part n e r net w o r k s in 40 co u n t r i e s . B a s e d on su b s c r i b e r s , it is the w o rl d’ s se c o n d larg e s t m o b i l e ph o n e op e r a t o r be hi n d C hi n a M o b i l e, wit h ov e r 427 milli o n su b s c r i b e r s in 31 m a r k e t s acr o s s 5 co n ti n e n t s as of 200 9. In M a r c h 37, 200 9, the co m p a n y e m p l o y s m o r e tha n 79,00 0 pe o p l e w o rl d w i d e . Th e na m e Vo d a f o n e co m e s fro m vo ice da te fone, ch o s e n by the co m p a n y to “refl e c t the pr o v i s i o n of voi c e an d dat e ser vi c e s ov e r m o b i l e ph o n e s . 3 VODAFO N E A R O U N D TH E WO RLD 1 Vo d a f o n e co v e r s 31 co u n t r i e s dir e c tl y an d ha s 40 par tner s h i p agr e e m e n t s , thi s m e a n s that ha s a thir d of all the w o rl d co v e r a g e an d is ori e n t e d to w a r d s lar g e r an d m o r e de v e l o p e d co u n t r i e s . Th e co m p a n y is ver y str o n g in the U nit e d St at e s w h e r e it hol d s the 45 % of V e ri z o n W i r e l e s s , is m o d e r a t e l y stro n g in Afri c a w h e r e it ha s su b s i d i a r y co m p a n i e s to 1 0 0 % of pro p e r t y in Eg y p t an d G h a n a an d sh a r e s the 65 % of V o d a c o m in S o u t h Afri c a. Al s o Vo d a f o n e ha s su b s i d i a r y co m p a n i e s in A u s t r a l i a, the Ze a l a n d N e w s an d Indi a. In C hi n a the pr e s e n c e is ne g li g i b l e be c a u s e is a clo s e d m a r k e t to for ei g n op e r a t o r s , w h e r e it hol d s onl y the 3.27 % of the m a r k e t in C hi n e M o b i l e. Th e pr e s e n c e is w e a k in S o u t h A m e r i c a , in R u s s i a , in Uk r a i n e , the Mi d d l e- E a s t (excl u d e d Eg y p t), Ja p a n an d in s m a l l co u n t r i e s of the P a c i fi c Asi a ti q u e . Th e rea s o n of the ab s e n c e of the co m p a n y in the Mi d d l e- E a s t is not the lac k of de si r e but the im p o r t a n t pre s e n c e of the op e r a t o r s like: Or a s c o m (the M e d i t e r r a n e a n an d Mi d d l e E a s t), M T N (Afric a an d Mi d d l e E a s t), Eti s a l a t (Middl e- Ea s t) an d Zai n (Middl e- Ea s t an d Afri c a), es p e c i a l l y in Eg y p t, So u t h Afri c a, Th e E m i r a t e s an d K u w a i t, thi s is tha n k s to the thr e e last w e r e su p p o r t e d by the oil m o n e y , w hi c h m a d e it diffi c u l t for V o d a f o n e to de v e l o p its acti viti e s in this are a. 1 Is Vodafone the world's only truly international telco and why? 3
  4. 4. In ter m s of fig u r e s , Vo d a f o n e rec o r d e d in the ye a r 200 9, 31 5 milli o n doll a r s in cu s t o m e r s , in sal e s V o d a f o n e w a s ra n k e d se v e n t h ac c o r d i n g to the “Tot al 500 listi n g” rev e n u e of $69. 1 billio n an d re g a r d i n g to the m a r k val u e is ran k e d nint h wit h a val u e of $53.7 billio n. In agr e e m e n t to the sal e s tur n o v e r s by acti vit y, m o b i l e tel e p h o n y re m a i n s its pri n c i p a l acti vit y. Le a d e r of the Eu r o p e a n alte r n a t i v e op e r a t o r s , onl y ac c o u n t s for the 5 % of the fixe d tel e p h o n e ser vi c e an d A D S L in the ye a r 200 7. . 2 Figure 1 Turnover of Vodafone by activity In rel ati o n to the ge o g r a p h i c a l tur n o v e r , is re m a r k a b l e that all the lar g e co u n t r i e s of W e s t e r n Eu r o p e , ex c e p t Fr a n c e , co n t ri b u t e to its tur n o v e r for a tot al val u e of 10 % , an d for the rest of the w o rl d the it re p r e s e n t s not les s tha n the 41 % of tot al tur n o v e r of the gro u p , in the ye a r 200 7. 2 X E R F I 7 0 0 , les gro u p e s de télé c o m m u n i c a t i o n s en Eu r o p e - juillet 2007 4
  5. 5. 4 V O D A F O N E M A R K E T I N G S T R AT E G Y Th e str at e g y of Vo d a f o n e is co n c e n t r a t e d to im p r o v e the op e r a t i o n a l ex e c u t i o n an d pur s u e gr o w t h op p o r t u n i t i e s of tel e c o m m u n i c a t i o n ser vi c e s , in or d e r to obt a i n a larg e fre e m a r g i n . Vo d a f o n e put in pl a c e in 200 6, a str a t e g y of fiv e poi n t s w hi c h fun c ti o n e d w ell. Thi s str a t e g y w a s up d a t e d in a co n ti n u o u s w a y to rai s e the ch al l e n g e s in ev ol u ti o n an d the curr e n t en v i r o n m e n t . Th e ke y poi n t s of thi s str a t e g y ar e: • Sti m u l a t i o n of inc o m e s an d co s t cutti n g in Eu r o p e . Gr o w t h of the us e of the m o b i l e ph o n e , partl y to co m p e n s a t e for the re d u c t i o n s of the pri c e. • D e v e l o p m e n t of a str o n g gr o w t h on the e m e r g i n g m a r k e t s . • Inn o v a t i o n an d deli v e r y of the ne e d s for co m m u n i c a t i o n s to the cu s t o m e r s . A n incr e a s e in the inc o m e s starti n g fro m co m p l e m e n t a r y ser vi c e s of m o b i l e tel e p h o n y , be c a u s e of the offe r of the dat a ser v i c e s an d the br o a d ba n d . • To acti v e l y m a n a g e the portf o l i o of the ser v i c e s an d pro d u c t s to m a x i m i z e ret u r n s . In the ye a r the 200 9 res u l t s of thi s str a t e g y sh o w e d ne w ch a ll e n g e s for Vo d a f o n e : • Th e m a c r o- ec o n o m i c en vi r o n m e n t be c a m e m o r e dy n a m i c . • Th e pre s s u r e s of co m p e t i t i o n co n ti n u e to be stro n g , co n t ri b u t i n g to the re d u c t i o n s in pri c e ap p r o x i m a t e l y of 1 5 % per an n u m . • Th e co n s u m e r s ha v e gro w i n g ch oi c e s of the co n v e r g e d off e r s of m o b i l e an d fixe d line co m m u n i c a t i o n s of the ne w op e r a t o r s w h o pr o p o s e ser vi c e s ba s e d in Inte r n e t an d soft w a r e ap p li c a t i o n s . • Th e m o b i l e virt u a l op e r a t o r s of the net w o r k (who rent the ca p a c i t y of the net w o r k of the m o b i l e co m p a n i e s) be c o m e m o r e co m m o n . • Th e reg u l a t o r s co n ti n u e to en c o u r a g e lo w e r tariff s for m o b i l e ph o n e an d the inte r n a t i o n a l ro a m i n g , w hi c h ac c o u n t s for 1 7 % of ret u r n e d of Vo d a f o n e . 5
  6. 6. 5 P R I C E S T R AT E G Y D E F I N I T I O N • Th e tel e c o m ind u s t r y in all m a r k e t s is a co m p e t i t i v e ind u s t r y wit h a limit e d nu m b e r of ser v i c e pr o v i d e r s w h o s e ser v i c e s ar e hig h l y su b s t i t u t a b l e . M o s t co u n t r i e s ge n e r a l l y ha v e thr e e, per h a p s four m o b i l e ser vi c e pro v i d e r s , w h o inte n t on cre a t i n g s wi t c h i n g bar ri e r s; for ex a m p l e , po s t- pai d co n t r a c t len g t h , bra n d i n g , an d loy al t y pro g r a m s . • Ext e n s i v e m a r k e t i n g str a t e g y ha s alr e a d y al m o s t rea c h e d the ceili n g of its eff e c ti v e n e s s - the gro w t h of cli e n t ba s e is clo s e to sat u r a t i o n . In the s e circ u m s t a n c e s , pr o v i d e r s try to ret ai n exi sti n g cu s t o m e r s an d ar e loo k i n g for w a y s to incr e a s e rev e n u e fro m tho s e cu s t o m e r s the y alre a d y ha v e . • So, in ord e r to gai n ne w cu s t o m e r s an d to ke e p the old on e s a ver y im p o r t a n t rol e bel o n g s to the pri c e str a t e g y of the co m p a n y . At the fir m lev el, pri c e pla y s a du a l rol e: like ad v e r t i s i n g , it is a tool to sti m u l a t e de m a n d an d si m u l t a n e o u s l y rep r e s e n t s a m a j o r lon g- ter m pr ofi t a b i li t y fact o r. Th e r e f o r e , w h e n sel e c ti n g a pri ci n g str a t e g y the co m p a n y m u s t co n s i d e r bot h the inter n a l li mit a ti o n s of co st an d pr ofit a b i li t y, as w ell as ext e r n a l co n s t r a i n t s det e r m i n e d by pur c h a s i n g po w e r of the m a r k e t an d the pri c e of co m p e t i t o r s’ pro d u c t s . • T o de a l wit h ne w co m p e t i t o r s an d pr ot e c t its profit s, oft e n the co m p a n i e s us e the be s t str a t e g i c “we a p o n s ” – m o d e r n pri ci n g str at e g i e s . • N u m e r o u s ex a m p l e s fro m nati o n a l an d for ei g n pr a c ti c e s pro v e the corr e c t n e s s of thi s stat e m e n t : "If the pri c e is corr e c t l y us e d , it be c o m e s a po w e r f u l w e a p o n that all o w s ke e p i n g co m p a n y ' s ear n i n g s , an d effe c t i v e l y de a l wit h co m p e t i t o r s ." B ut the r e are se v e r a l im p o r t a n t ob s e r v a t i o n s , that ca n’t be de n i e d . First: it sh o u l d be re m e m b e r e d that the lev e l of pri c e s of go o d s sh o u l d refl e c t a real- w o rl d po si ti o n of the last on the m a r k e t, m e a n s that bet w e e n the pri c e of the pro d u c t an d its m a r k e t po si ti o n m u s t exi st a stri ct co m p l i a n c e . Th e se c o n d ob s e r v a t i o n : the lac k of pri c e diff e r e n t i a t i o n on the sa m e pro d u c t de p e n d i n g on the ch a r a c t e r i s t i c s of the se g m e n t s , on w hi c h it is sol d, sh o w s ba d m a r k e t se g m e n t a t i o n . Fi n a l l y, the thir d poi n t: the stru c t u r e of pri c e s sh o u l d be co n s i s t e n t wit h the obj e c t i v e s of the co m p a n y an d facilit a t e sp e e d y an d eff e c t i v e im pl e m e n t a t i o n of the ch o s e n pri ci n g str a t e g y . • In ad d i ti o n , if the co m p a n y is the lea d e r in on e m a r k e t , su c h as a regi o n a l m a r k e t , it m a y tak e a m o d e s t po si ti o n on oth e r. Si m u l t a n e o u s lea d e r s h i p in all pr o d u c t s an d regi o n a l m a r k e t s ar e rar e. Diff e r e n c e s in the oc c u p i e d part s of the m a r k e t , an d ac c o r d i n g l y , an d the de g r e e of infl u e n c e on the latt e r are an ob s t a c l e to the de v e l o p m e n t of an eff e c ti v e glo b a l pri ci n g str at e g y . Th a t is w h y the pric e str u c t u r e sh o u l d be flexi b l e an d ad a p t i v e , for ex a m p l e , abl e to ch a n g e in ac c o r d a n c e wit h the real situ a t i o n of the co m p a n y at a giv e n m a r k e t . 3 5.1 VODAFONE CORPORATIVE PRICING POLICY 3 htt p://ww w . v o d a f o n e . c o m / s t a r t/re s p o n s i b i l i t y/o u r _ a p p r o a c h/ p o l i c i e s/s el li n g _ p r i c e s _ p o l i c y . h t m l 6
  7. 7. In rel ati o n to the pric e poli c y, Vo d a f o n e ha s a poli c y that ap pl i e s at the cor p o r a t i v e lev e l, i.e. this poli c y ap p li e s to all the su b s i d i a r y co m p a n i e s an d joi nt ve n t u r e s hol di n g on e 50 % or m o r e . Th e go al of thi s poli c y is to cal c u l a t e an ad e q u a t e pri c e an d to aut h o r i z e it an d co n t r o l it for m a l l y to pr e v e n t the gr o u p of fin a n c i a l da m a g e s an d rep u t a t i o n . Wi t hi n t he poli c y of the co u n c i l of the P L C of gr o u p of V o d a f o n e , are the C h a i r m a n an d m a n a g i n g dir e c t o r of the loc a l co m p a n y w h o est a b l i s h e s a pr o c e d u r e to cal c u l a t e the selli n g pri c e s of the pr o d u c t s an d the pe o p l e ap p o i n t e d wit hi n the co m p a n y w h o ar e res p o n s i b l e for the re ali z a t i o n of cal c u l a t i o n s . C al c u l a t i o n s of the pro d u c t s selli n g pric e s will be su bj e c t e d to a pr o c e s s of inter n a l co n t r o l. Th e C h a i r m a n an d m a n a g i n g dire c t o r of ea c h co m p a n y will m a k e sur e that an n o u n c e d pri c e s ar e giv e n logi c a l l y rat h e r tha n arbitr a r i l y an d will na m e pe o p l e wit hi n the co m p a n y w h o ca n tak e res p o n s i b i l i t y to de c i d e the pri c e to qu o t e . All cal c u l a t i o n s of pri c e s indi c a t e d or not to the cu s t o m e r , are su b j e c t e d to a pro c e s s of inter n a l co n t r o l. 5.2 RAISING OF THE QUALITY AND REDUCTION IN THE COSTS Be c a u s e the Eu r o p e a n m a r k e t s ha v e re a c h e d m a t u r i t y, incr e a s i n g co m p e t i ti o n inv o l v e s a re d u c t i o n of the pric e s. O n e of the obj e c t i v e s of V o d a f o n e is to red u c e the ba s e l i n e co st. Th e m o r e sig ni fi c a n t sa vi n g is m a d e by the us e of ne w tec h n o l o g i e s an d tool s. Th e m e c h a n i s m w hi c h w a s put in pl a c e by Vo d a f o n e co n s i s t s of: • S hari n g of glo b a l res o u r c e s of infor m a t i o n tec h n o l o g y • Th e divi si o n of the net w o r k s wit h oth e r op e r a t o r s • Th e su b c o n t r a c t i n g of the ser vi c e s w h e n is m o r e effi ci e n t. • Th e sta n d a r d i z a t i o n of the eq ui p m e n t an d the sys t e m s w o rl d w i d e • Th e us e of ne w tec h n o l o g y to red u c e ca pi t a l ex p e n d i t u r e s . 5.3 FLAT PRICING STRATEGY So c i a l sur p l u s of flat pri ci n g in the pur c h a s i n g hist o r y sh o w s that the pri ci n g m e t h o d incr e a s e s sur p l u s w hil e m a k i n g fir m s re m a i n i n g wit h the sa m e rev e n u e s lev e l. Thi s str at e g y is ap pl i c a b l e to shri n k i n g fix e d tel e p h o n y an d an y oth e r de m a n d de c r e a s i n g tel e p h o n e . Fl at pri ci n g incr e a s e s traffi c, m a i n t a i n s rev e n u e an d loc k s in co n s u m e r s . Fl at prici n g sti m u l a t e s us a g e of bot h m o b i l e ph o n e an d inte r n e t dat a. 7
  8. 8. To m a k e rev e n u e ne u t r a l, re b a l a n c i n g ine vi t a b l y fav o r s hig h de m a n d us e r s ov e r lo w de m a n d us e r s as the de c r e a s e of call pa y m e n t is bi g g e r tha n the incr e a s e of line re nt a l s for hig h de m a n d us e r s. Exi s ti n g lo w de m a n d us e r s m a y be un w i lli n g or un a b l e to pa y for line rent a l. H o w e v e r flat pri ci n g ten d s to ca u s e sh o r t ter m rev e n u e de c r e a s e s to the net w o r k op e r a t o r s as onl y hi g h e r de m a n d us e r s ch o o s e the flat prici n g pla n w hil e lo w e r de m a n d us e r s do n’t. 5.4 THE MAIN PURPOSE: LOYALITY! To d a y , u nd e r co n d i ti o n s of hig h pe n e t r a t i o n , on e of the es s e n t i a l tas k s for m o b i l e pro v i d e r s is the attai n su b s c r i b e r s loy al t y. C o m p a n i e s are no w usi n g pri c e an d bo n u s m e c h a n i s m s to ret ai n thei r su b s c r i b e r s ; the y will so o n e m p l o y m o r e su b tl e m e t h o d s . Se r v i c e pr o v i d e r s ha v e kn o w n larg e l y that the y m u s t est a b l i s h lon g- ter m , pr ofit a b l e rel ati o n s h i p s wit h thei r cu st o m e r s . Thi s is ge n e r a l l y po s s i b l e w h e n the y ha v e a w e a l t h of de m o g r a p h i c an d us a g e info r m a t i o n at thei r dis p o s a l su c h as the cu s t o m e r ’ s ag e an d so ci o e c o n o m i c ba c k g r o u n d , as w ell as sp e n d i n g an d billi n g patt e r n s . A d d the m e c h a n i s m s of lon g- ter m co n t r a c t s , mi ni m u m co m m i t m e n t an d earl y ter m i n a t i o n fee s, an d gro w i n g loy al t y se e m s to be wit hi n the rea c h of m o s t ser vi c e pr o v i d e r s . P rep a i d pre s e n t s a co m p l e t e l y diffe r e n t ch al l e n g e . It is diffi c u l t to cre a t e lon g- ter m rel ati o n s h i p s wit h cu s t o m e r s w h e n yo u do n’t ev e n ha v e thei r na m e s an d ad d r e s s e s . Pr e p a i d cu s t o m e r s enj o y the si m p l i c i t y an d fre e d o m of no co m m i t m e n t s or co n t r a c t s . Joi ni n g a ser vi c e pr o v i d e r is as si m p l e as bu yi n g a SI M car d fro m the loc al gr o c e r y stor e. In ad di ti o n , pr e p a i d su b s c r i b e r s in m a n y hi g h gr o w t h m a r k e t s are lo w- sp e n d cu s t o m e r s (in co u n t r i e s su c h as Ba n g l a d e s h , Th a i l a n d , Ind o n e s i a , an d Indi a the av e r a g e pre p a i d rev e n u e per us e r is les s tha n $6 a m o n t h), w hi c h limit s the m a r k e t i n g res o u r c e s that ser v i c e pro v i d e r s are willi n g to inv e s t in ret e n t i o n . Th e res u l t: co n s t a n t pr e p a i d cu s t o m e r ch u r n . H o w e v e r , ther e ar e ret e n ti o n an d loy a l t y str at e g i e s that ser vi c e pro v i d e r s ca n put into pla c e to ste m the ch u r n of pr e p a i d cu s t o m e r s an d off e r a diffe r e n t , uni q u e ex p e r i e n c e 5.5 CHEAPER RATES DON’T MEAN BETTER RATES M a n y ser v i c e pro v i d e r s in co m p e t i ti v e m a r k e t s cat e r to the pri c e se n s i ti vi ti e s of co n s u m e r s by co n ti n u a l l y offe ri n g lo w e r rat e s. Th e iss u e wit h su c h a str at e g y is that it do e s n ’ t ne c e s s a r i l y gu a r a n t e e loy a l t y. Pr e p a i d su b s c r i b e r s are just as likel y to ch u r n w h e n a diff e r e n t pro v i d e r off e r s a lo w e r pri c e. W h a t’ s m o r e , wit h pri c e s dro p p i n g to les s tha n 1 ce n t a mi n u t e for pr e p a i d voi c e call s, ov e r a l l rev e n u e s are ne g a t i v e l y im p a c t e d as w ell. O n e loy a l t y str a t e g y that ha s e m e r g e d in the Indi a n m a r k e t is the “lifeti m e” gu a r a n t e e of pre p a i d rat e s. R eli a n c e , Airt el an d Vo d a f o n e , a m o n g oth e r s, off e r a lifeti m e pre p a i d rat e w h e r e , in 8
  9. 9. ad d i ti o n to off e ri n g lo w rat e s, the y als o gu a r a n t e e the s e rat e s ov e r an ext e n d e d peri o d of ti m e. C u s t o m e r s are m o r e likel y to sta y wit h thei r pro v i d e r if the y kn o w that the rat e s on offe r will not ch a n g e w hil e the y re m a i n a cu s t o m e r Se r v i c e pr o v i d e r s ne e d to intr o d u c e m o r e inn o v a t i v e , cre a ti v e prici n g m o d e l s that not onl y diff e r e n t i a t e , but als o pr o v i d e re al val u e to cu s t o m e r s wit h o u t ne c e s s a r i l y jeo p a r d i z i n g lon g- ter m rev e n u e s . Ot h e r pro v i d e r s ha v e lau n c h e d “sto p the clo c k” styl e pre p a i d rati n g w h e r e a call is onl y ch a r g e d up to a cert a i n thr e s h o l d an d the rest of the call is fre e of ch a r g e . V o d a f o n e enj o y e d su c c e s s wit h thei r “Sto p the Cl o c k” off e r acr o s s pre p a i d m a r k e t s in Irel a n d , the U K an d the N et h e r l a n d s . Th e ba si c logi c of the off e r w a s that pre p a i d cu st o m e r s w o u l d onl y pa y for the first thr e e mi n u t e s of the call an d the re m a i n i n g mi n u t e s up to an ho u r w o u l d be fre e of ch a r g e . N ot onl y is this pri ci n g a stro n g diff e r e n t i a t o r , it als o en c o u r a g e s pr e p a i d us e r s to m a k e call s of lon g e r dur a ti o n . Bett e r pri ci n g do e s not ne c e s s a r i l y m e a n the lo w e s t pri c e. Se r v i c e pro v i d e r s w h o are in tun e wit h thei r cu s t o m e r s ’ ne e d s an d co n s u m p t i o n ha bi t s ca n us e this infor m a t i o n to cre a t e attr a c t i v e off e r s an d buil d loy al t y Th e pot e n t i a l risk wit h the s e str a t e g i e s , ho w e v e r , is that it’s rel ati v e l y ea s y to co p y an d on c e ev e r y ser vi c e pro v i d e r gu a r a n t e e s lifeti m e rat e s or ext e n d e d bal a n c e peri o d vali dit y, the re al diff e r e n t i a t o r ag a i n be c o m e s pri c e. 5.6 IMPORTANCE OF PREPAID CUSTOMERS Pr e p a i d cu s t o m e r s ha v e not al w a y s be e n ex p o s e d to the sa m e ra n g e of ser v i c e s as po s t- pai d cu s t o m e r s du e thei r tra n s i e n t or “risk y” nat u r e . As pre p a i d m a r k e t s ha v e m a t u r e d , ser vi c e pr o v i d e r s ha v e co m e to un d e r s t a n d that pr e p a i d sh o u l d be vie w e d m o r e as a pa y m e n t m e t h o d an d les s of a cu s t o m e r typ e. Th e r e is no tec h n o l o g i c a l bar ri e r to ex p o s i n g the enti r e ra n g e of net w o r k ser vi c e s an d ha n d s e t s to pr e p a i d cu s t o m e r s , an d thi s ca n ser v e as a po w e r f u l tool for incr e a s i n g loy a l t y. Thir d ge n e r a t i o n (3G) net w o r k s unl e a s h e d a ho s t of ne w ser v i c e s tra di ti o n a l l y res e r v e d for po s t- pai d cu s t o m e r s incl u d i n g : vid e o calli n g, m o b i l e bro a d b a n d , hig h- sp e e d do w n l o a d s an d m o b i l e tel e v i s i o n . Se r v i c e pro v i d e r s qui c k l y reali z e d that the s e ser v i c e s w e r e just as attr a c t i v e to pr e p a i d cu s t o m e r s an d co u l d ser v e as a str o n g diff e r e n t i a t o r in the m a r k e t . C o m p a n i e s su c h as M 1 in Si n g a p o r e , C A T Tel e c o m in Th a i l a n d an d Tel k o m s e l in Ind o n e s i a no w offe r 3G ser vi c e s to thei r pr e p a i d cu s t o m e r s . Th e Ap p l e iPh o n e is an ex c e l l e n t ex a m p l e of ho w a ha n d s e t ca n attr a c t an d ret ai n milli o n s of cu s t o m e r s . Ori gi n a l l y pitc h e d as a hi g h- en d s m a r t ph o n e for po s t- pai d us e r s willi n g to sig n a m ul ti- ye a r co n t r a c t, tod a y pre p a i d ser vi c e pr o v i d e r s like Vo d a f o n e Es s a r in Indi a an d Tel k o m s e l 9
  10. 10. in Ind o n e s i a are offe ri n g thei r pr e p a i d cu st o m e r s the ha n d s e t tog e t h e r wit h ne x t- ge n e r a t i o n ser vi c e s su c h as w e b br o w s i n g , G P S na vi g a t i o n an d e m a i l ser v i c e s . Vo d a f o n e in the U K, a m o n g oth e r pre p a i d ser v i c e pr o v i d e r s , no w offe r s pr e p a i d su b s c r i b e r s fre e ac c e s s to Fa c e b o o k , Be b o an d M y S p a c e . Gi vi n g pre p a i d su b s c r i b e r s ac c e s s to the late s t ser vi c e s an d ha n d s e t s not onl y pro v i d e s a bett e r cu st o m e r ex p e r i e n c e but is als o a po w e r f u l tacti c for br a n d po si ti o n i n g . B ot h of the s e ca n su p p o r t the go a l of cu st o m e r ret e n t i o n an d loy a l t y 5.6.1 The prepaid plans of Vodafone Vo d a f o n e de v e l o p e d a str at e g y ad a p t e d to co v e r m o r e ext e n s i v e re q u e s t an d es p e c i a l l y in e m e r g i n g nati o n s to giv e ac c e s s to the m o b i l e tel e p h o n y in a m o r e ac c e s s i b l e w a y. Th e pl a n pre p a i d in the be gi n n i n g w a s co n c e i v e d for the cu st o m e r s w h o ar e co n s i d e r e d on the cre d i t cat e g o r y risk for the tra di ti o n a l sal e an d for the cu s t o m e r s w h o did not w a n t to su b s c r i b e for lon g peri o d s of ti m e an d for tho s e not sur e not ab o u t ho w m a n y call s the y w e r e goi n g to m a k e . Pr e p a i d pla n s, m a d e ind u s t r y of the m o b i l e ph o n e a de vi c e av ai l a b l e to the ge n e r a l pu bl i c be c a u s e bef o r e w a s co n s i d e r e d ex cl u s i v e for bu s i n e s s pe o p l e . In the ye a r 200 8 V o d a f o n e rec o r d e d in E u r o p e a n co u n t r i e s like Gr e e c e , P o rt u g a l , Irel a n d , Al b a n i a , Ital y, M al t a an d als o Tu r k e y an incr e a s e in the us e of pre p a i d pla n s hig h e r tha n the 70 % . 10
  11. 11. 5.7 “IT’S ALL IN THE PACKAGING” In tel e c o m m u n i c a t i o n m a r k e t tod a y , the ke y for m o b i l e pro v i d e r s is the ret e n t i o n of cli e n t s. An o t h e r effe c ti v e str a t e g y that ser vi c e pr o v i d e r s ca n de p l o y to gr o w loy al t y is to offe r m o r e tar g e t e d , per s o n a l i z e d pa c k a g e s an d bu n d l e s for pre p a i d cu st o m e r s . Thi s str a t e g y go e s be y o n d just pri ci n g an d ser v i c e s an d foc u s e s on the ran g e of m a r k e t offe ri n g s av a il a b l e to pr e p a i d cu s t o m e r s . Su c h str at e g i e s w o r k w ell in pr e p a i d do m i n a t e d m a r k e t s w h e r e se g m e n t a t i o n is on e of the ke y s to diff e r e n t i a t i o n in a hi g hl y co m p e t i ti v e m a r k e t . Th a t’ s w h a t w e ca n se e in de v e l o p i n g co u n t r i e s , in Indi a for ex a m p l e . In m o r e m a t u r e pr e p a i d m a r k e t s , a diffe r e n t typ e of ser v i c e pa c k a g i n g is e m e r g i n g ba s e d on the op p o s i t e pri n c i p l e – si m p l i c i t y. Vodafone Essar in India offers customers one of the simplest packages available in the form of unlimited, 4,5€ in a month for unlimited voice; 6€ a month for voice and SMS, and so on. Thi s str at e g y foc u s e s on the gr o w i n g m o v e to w a r d unli m i t e d pri c e pla n s but als o giv e s cu s t o m e r s flexi bi lit y to ch o o s e w hi c h ser vi c e s to incl u d e . C u s t o m e r s ca n ch a n g e thei r pa c k a g e on a dail y ba s i s, an d the r e is no ch a r g e on da y s w h e r e the ph o n e is not us e d. Off e r i n g attr a c t i v e , ap p e a l i n g pa c k a g e s an d bu n d l e s giv e s cu s t o m e r s gre a t e r ch oi c e an d sati sf a c t i o n , an d this is a po w e r f u l dri v e r of loy al t y 5.8 THE PROMOTIONS COUNT Pr e p a i d pro m o t i o n s are not a ne w co n c e p t , but the ch a ll e n g e her e is that m a n y pro m o t i o n s ten d to be ba s e d ar o u n d rec h a r g e bo n u s e s that off e r su b s c r i b e r s ad d i ti o n a l pr e p a i d cre d i t w h e n the y re pl e n i s h thei r ac c o u n t . 5.9 THE BEST OF BOTH WORLDS An o t h e r eff e c t i v e tec h n i q u e for loc ki n g in cu st o m e r loy al t y is to off e r pre p a i d cu s t o m e r s the co n v e n i e n c e an d be n e f i t s of po s t- pai d ser v i c e s . P o s t- pai d an d pr e p a i d bu si n e s s m o d e l s are inh e r e n t l y diffe r e n t in ter m s of thei r val u e pro p o s i t i o n . W h e r e a s pre p a i d cu s t o m e r s ne e d to pur c h a s e cre d i t in ad v a n c e an d ar e ch a r g e d im m e d i a t e l y for ser v i c e co n s u m p t i o n , po s t- pai d cu s t o m e r s nor m a l l y rec e i v e a m o n t h l y all o c a t i o n of ser vi c e s (minut e s , S M S , dat a, etc.) in ret u r n for a fixe d m o n t h l y pa y m e n t . Th e ad v a n t a g e of m o n t h l y pa y m e n t s for the ser vi c e pr o v i d e r is pr e d i c t a b l e , co n s t a n t rev e n u e . Fr o m the cu s t o m e r s ’ per s p e c t i v e , it m e a n s the co n v e n i e n c e of a m o n t h l y qu o t a wit h o u t w o r r y i n g ab o u t top p i n g up or rec h a r g i n g the ac c o u n t . POS T P A I D Hybrid model PRE P A I D 11
  12. 12. Fix e d Pa y m e n t (mont h l y) Purcha s e Credit as Pu r c h a s e Cr e d i t as N e e d e d Needed (pay as you go) (pay as yo u go) & Fixed Payment (monthly) M o n t h l y Bill No Monthly Bills N o M o n t h l y Bill s Yearly Contra ct No Contract No Contra ct SI M O nl y or Full Subsi di z e d Han d s e t Price Hand se t Pri c e H a n d s e t M o n t h l y S er v i c e All o w a n c e Monthly Allowan c e Im m e d i a t e Se r v i c e C h a r g e (voic e, text, dat a) (voice, text, data) (per mi n u t e , K B, M M S) Sophi stic at e d Additional Service s Ba s i c S er v i c e s S er v i c e s Charged Per Unit Thi s hy b ri d m o d e l ca n be tak e n on e ste p furt h e r by co m b i n i n g pre p a i d an d po s t- pai d ser v i c e s in the sa m e off e ri n g fra m e w o r k su c h as a fa m i l y pla n. Thi s typ e of hy b ri d m o d e l offe r s the be s t of bot h w o rl d s for cu s t o m e r s , deli v e r i n g an ev e n m o r e po w e r f u l val u e pr o p o s i t i o n an d dri vi n g lon g ter m loy a l t y thr o u g h a co m b i n a t i o n of: • R e c u r r i n g m o n t h l y pa y m e n t s • M o n t h l y qu o t a of ser vi c e s (voic e, dat a, etc.) • Bu n d l e d pr e p a i d line s wit h aut o m a t i c m o n t h l y top- up fro m the po s t p a i d ac c o u n t • Fr e e call s an d S M S bet w e e n fa m i l y m e m b e r s reg a r d l e s s of w h e t h e r the y ar e pre or po s t p a i d 6 P R I C E P O L I C Y O F V O D AF O N E I N VA R I O U S C O U N T R I E S 6.1 PRICE STRATEGY IN THE EUROPEAN UNION In the W e s t e r n Eu r o p e a n co u n t r i e s the m o b i l e co m m u n i c a t i o n m a r k e t ha s rea c h e d its sat u r a t i o n poi n t (appr o x i m a t e l y 90 % pe n e t r a t i o n of po p u l a t i o n). As the m a r k e t ha s m a t u r e d , the ba si c su b s c r i p t i o n ha s be c o m e a co m m o d i t y pro d u c t an d the co m p e t i ti o n is ba s e d incr e a s i n g l y on exi s ti n g su b s c r i b e r s . 12
  13. 13. Th e Eu r o p e a n U ni o n , ho w e v e r , co n ti n u e s its eff o rt s to incr e a s e co m p e t i t i o n . C o m m u n i c a t i o n dir e c ti v e s iss u e d by the E U ha v e ch a n g e d the tel e c o m m u n i c a t i o n s re g u l a t o r y fra m e w o r k an d lo w e r e d the entr y barri e r s for m o b i l e m a r k e t. SI M- ba s e d m o b i l e ser vi c e s ca n be offe r e d wit h o u t o w n i n g a ra di o net w o r k or rig h t s to the re q u i r e d radi o sp e c t r u m . Si m u l t a n e o u s l y the lau n c h of m o b i l e nu m b e r port a b i l it y ha s de c r e a s e d swit c h i n g co s t s an d incr e a s e d ch u r n. Th e s e ch a n g e s ha v e op e n e d up the m o b i l e co m m u n i c a t i o n s m a r k e t to ne w ser vi c e pro v i d e r s . Vo d a f o n e ai m s to im p r o v e ex e c u t i o n in exi s ti n g bu s i n e s s e s thr o u g h cu s t o m e r val u e en h a n c e m e n t an d co s t red u c t i o n . V al u e en h a n c e m e n t inv o l v e s m a x i m i s i n g the val u e of exi sti n g cu s t o m e r rel ati o n s h i p s , not just the rev e n u e . Thi s ap p r o a c h shift s a w a y fro m unit ba s e d tariff to pr o p o s i t i o n s that deli v e r m u c h m o r e val u e to cu s t o m e r s in ret u r n for gre a t e r co m m i t m e n t or m o r e bal a n c e d co m m e r c i a l co s t s. Thi s req u i r e s a m o r e dis ci p l i n e d ap p r o a c h to co m m e r c i a l co s t s to en s u r e inv e s t m e n t is foc u s e d on tho s e cu s t o m e r s wit h hi g h e r lifeti m e val u e. C u s t o m e r val u e en h a n c e m e n t repl a c e s the pre v i o u s foc u s on rev e n u e sti m u l a t i o n . Th e Gr o u p ha s est a b l i s h e d a sig ni fi c a n t nu m b e r of initi ati v e s w hi c h ar e ex p e c t e d to red u c e curr e n t op e r a t i n g co s t s by ap p r o x i m a t e l y 1 billio n € per an n u m by the 20 1 1 fina n c i a l ye a r. Th e big g e s t entr y barri e r is the s wi t c h i n g co s t of m o b i l e su b s c r i b e r s . R e g u l a t o r s ca n sig ni fi c a n t l y re d u c e thi s co s t by enf o r c i n g obli g a t o r y nu m b e r port a b i li t y. O n e im p o r t a n t fact o r ha vi n g an im p a c t on the willi n g n e s s to swit c h the op e r a t o r is the gr o u p effe c t: be c a u s e of the ch e a p intr a- op e r a t o r call s, su b s c r i b e r s ar e not ea g e r to s wi t c h the op e r a t o r ‘alo n e’ but inst e a d tog e t h e r wit h a cert a i n gro u p w h o s e m e m b e r s m a k e a lot of call s to ea c h oth e r (e.g. a fa m i l y, a gro u p of frie n d s). Lo w barri e r s to entr y incr e a s e the a m o u n t of co m p e t i t o r s in the fiel d, givi n g the bu y e r s po w e r . Th e ‘bu y e r’ s m a r k e t’ typ e of a situ a t i o n res u l t s in lo w e r e d pri c e s an d s m a l l e r pr ofi t s. 6.2 VODAFONE UNITED KINGDOM Th e r e is a de c e l e r a t i o n in the sal e s of m o b i l e co m p o u n d s , on cert ai n m a r k e t s like the U ni t e d K ing d o m , be c a u s e the m a t u r e life cycl e of the pro d u c t is re a c h e d . C u s t o m e r s ar e ex p o s e d to a lar g e vari e t y of vari o u s im a g e s an d m e s s a g e s by m o b i l e ph o n e co m p a n i e s , be c a u s e co m p e t i ti o n be c o m e s har d e r. Vo d a f o n e attr a c t e d ne w cu s t o m e r s an d ai m s at ke e p tho s e exi s ti n g by un d e r l i n i n g the uni q u e n e s s of the m a r k . Th e go a l of Vo d a f o n e is to rai s e its inc o m e an d to im p r o v e its pr ofit m a r g i n by ad d i n g the val u e to its pr o d u c t s , gai n i n g m o r e ea c h pro d u c t m a r k e t e d . Th e ser vi c e Vo d a f o n e Liv e m a k e s it po s s i b l e for cu s t o m e r s the tra n s m i s s i o n of m e s s a g e s wit h im a g e s , do w n l o a d i n g pol y p h o n i c rin gt o n e s , im a g e s an d infor m a t i o n by a m e n u ba s e d on ico n s. Al s o V o d a f o n e ha s the obj e c t i v e to incr e a s e libr a ri e s for tra n s m i s s i o n of im a g e m e s s a g e s , the inc o r p o r a t i o n of clip an d vid e o (seei n g the per s o n that yo u call) an d in im p r o v e m e n t sp e e d s of re m o t e do w n l o a d i n g . An o t h e r ser vi c e is the Vo d a f o n e M o b i l e C o n n e c t C a r d , w hi c h all o w s cu s t o m e r s to re a c h thei r nor m a l ec o n o m i c ap p li c a t i o n s on a lapt o p w h e n the y ar e out of offi c e. 13
  14. 14. Su c h ser v i c e s ad d val u e to the pro d u c t , an d the eff e c t i v e n e s s in pr o m o t i o n will hel p at Vo d a f o n e to sell the s e cu s t o m e r exi sti n g an d ne w ser vi c e s . Vo d a f o n e ha s a m a r k e t i n g str at e g y in the U ni t e d Ki n g d o m ba s e d in diff e r e n t as p e c t s like: • Di st ri b u t i o n : Vo d a f o n e U nit e d Ki n g do m fun c ti o n s wit h 300 o w n e d stor e s ; it is als o selli n g by ind e p e n d e n t ret ail e r s for ex a m p l e : C a r d p h o n e W a r e h o u s e . Als o in the stor e s , the co n s u m e r s ar e abl e to loo k at an d ha n d l e the pro d u c t s bef o r e bu y i n g the m an d ther e are qu a li fi e d per s o n n e l that en s u r e the co u n c i l the cu st o m e r s an d the opti o n s av ai l a b l e . • Th e pri c e: V o d a f o n e w a n t s to ren d e r its ser v i c e s ac c e s s i b l e to as m a n y pe o p l e as po s s i b l e : yo u n g pe o p l e , ap p r e n t i c e s , bu s i n e s s pe o p l e an d m a t u r e us e r s . Th e r e ar e offe r s ad a p t e d to vari o u s gr o u p s of cu s t o m e r s . M ont h l y pri c e pl a n s ar e av ai l a b l e as w ell as pre p a i d opti o n s . Pr e p a i d us e r s ca n rec h a r g e the tel e p h o n e on line. Al s o V o d a f o n e giv e s poi n t s of re w a r d call e d “NE C T A R ” , for ea c h £ 1 sp e n t on the call s, the m e s s a g e s of text, im a g e m e s s a g e s an d the rin g t o n e s . • Pr o m o t i o n : V o d a f o n e fun c ti o n s wit h ico n s su c h as D a v i d Be c k h a m to co m m u n i c a t e her val u e s of m a r k. P u b l i ci t y wit h T V, on bill b o a r d s , in stor e s an d oth e r m e a n s of co m m u n i c a t i o n that re a c h e s m a n y pe o p l e ha v e an eff e c t in the bra n d im a g e . Th e stor e s ha v e sp e c i a l offe r s, pr o m o t i o n s an d po s t e r s of outl e t sal e s to attr a c t pe o p l e insi d e the stor e s to bu y. Th e stor e s of V o d a f o n e , its pr o d u c t s an d its per s o n n e l all proj e c t the br a n d im a g e . V o d a f o n e acti v e l y de v e l o p s pu b li c go o d rel ati o n s h i p s by se n d i n g pr e s s rel e a s e s to the ne w s p a p e r s an d the nati o n a l stor e s to ex p l a i n its pro d u c t s an d its ide a s . P repaid plans in the United Kingdo m Th e co m p a n y re d u c e d m a r g i n s for the ret ail e r s for the ser v i c e s of pre p a i d m o b i l e ph o n e thr o u g h a pro d u c t call e d top up s in the U ni t e d Ki n g d o m . Th e pri n c i p l e is that the cu st o m e r s ca n bu y a m o b i l e ph o n e str o n g l y fina n c e d an d do not ne e d to sig n an y co n t r a c t , in m o r e the y do not rec e i v e inv o i c e s m o n t h l y inv oi c e s wit h typi c a l co n n e c t i o n ch a r g e s . Th e cu s t o m e r s ar e inv o i c e d si m p l y by the co n s u m p t i o n by the se c o n d an d de b i t e d to the us e r ac c o u n t . O n c e the ac c o u n t is co m p l e t e l y us e d , the cu st o m e r s ca n rel o a d it wit h cre d i t. Al s o the cu s t o m e r s ca n revi s e the us e d cre d i t w hil e calli n g a toll fre e nu m b e r the 24 ho u r s a da y. Thi s pla n is na m e d “Re a d y to G o” 14
  15. 15. Th e ch a r g e s for the pl a n “Re a d y to go” ar e typi c a l l y m o r e ex p e n s i v e tha n the fixe d m o n t h l y pri c e s Thi s pla n ha s a fixe d sta n d a r d rat e (flat rat e) incl u d i n g the rus h ho u r s. Th e pl a n is call e d “pay as yo u go”, do e s not req u i r e en g a g e m e n t an d giv e s the po s s i b i li t y of ac q u i r i n g a tel e p h o n e for lo w- co s t s of 20 £. Th e av e r a g e co s t per mi n u t e by is of 23 ce n ti m e s eur o. Post- paid plans in the United Kingdom Th e r e is a vari e t y of pla n s wit h en g a g e m e n t fro m 1 2 up to 24 m o n t h s . Th e val u e of the mi n u t e is bet w e e n 3.75 an d 20 ce n ti m e s the mi n u t e , fro m 1 0 0 mi n u t e s of call s up to 1 2 0 0 mi n u t e s wit h the m o b i l e ph o n e incl u d e d . 6.3 VODAFONE ROMANIE R o m a n i a ha s on e o f the m o s t de v e l o p e d tel e c o m m u n i c a t i o n m a r k e t in C e n t r a l an d Ea s t e r n Eu r o p e . Eu r o p e a n U ni o n enl a r g e m e n t pro c e s s co n s t i t u t e s a str o n g dri v e r for thi s de v e l o p m e n t patt e r n an d on the oth e r ha n d Eu r o p e a n poli c y req u i r e s ad o p t i n g an d im pl e m e n t i n g the E U re g u l a t i o n s co n c e r n i n g the IT& C se c t o r. In R o m a n i a tel e c o m m u n i c a t i o n is the m ai n se c t o r inv e s t m e n t s ha v e be e n dir e c t e d to in the last 4 ye a r s. Th e R o m a n i a n tel e c o m m u n i c a t i o n m a r k e t is a m a r k e t in tra n s i ti o n , refl e c t i n g the co u n t r y’ s ec o n o m i c as pi r a t i o n s . Vo d a f o n e ap p e a r e d on the R o m a n i a n m a r k e t in 200 6 an d ha d the g ro w t h of 48 % duri n g thi s ye a r. One milli o n clie n t s ap p e a r e d afte r on e ye a r of op e r a t i o n . . M ai n co m p e t i t o r s of the Vo d a f o n e R o m a n i a ar e Or a n g e R o m a n i a an d R o m t e l e c o m . Th e foc u s is m a d e on de v e l o p i n g the distri b u t i o n net w o r k thr o u g h thei r o w n stor e s an d ex cl u s i v e distri b u t i o n ch a n n e l s . Th e m a r k e t’ s se c o n d larg e s t pl a y e r , Vo d a f o n e , ha s suff e r e d a lot duri n g the fin a n c i a l crisi s of 200 9. N o w , the m a i n ex p e c t a t i o n s of the co m p a n y foc u s on attr a c t i n g hig h e r val u e cu st o m e r s by mi g r a t i n g pre p a i d su b s c r i b e r s ont o m o r e lucr a t i v e po s t- pai d co n t r a c t s an d en c o u r a g i n g m o r e dat a us a g e . Prepaid and Post- paid plans in Vodafone Romania Th e pr e s e n c e of ver y str o n g co m p e t i t o r s like Or a n g e an d R o m t e l e c o m m a k e the tel e c o m m u n i c a t i o n se c t o r in R o m a n i a ver y co m p e t i ti v e . Th e tel e c o m m u n i c a t i o n co m p a n i e s pr o p o s e the sa m e ser vi c e s for cu s t o m e r s for m o r e les s the sa m e pri c e. Th e fact that co m p a n i e s oft e n off e r ver y co m p l e x tariff pla n s m a k e s it al m o s t im p o s s i b l e to co m p a r e the pri c e s of diff e r e n t co m p a n i e s . Vo d a f o n e in R o m a n i a pr o p o s e s the ser v i c e s of the sa m e lev el for the sa m e pri c e as oth e r m o b i l e co m p a n i e s (0,1 1 € for a mi n u t e) so the tas k to be ch o s e n by cu s t o m e r s is buil di n g m o s t l y on m a r k e t i n g str at e g i e s . 15
  16. 16. O n e of the nu m e r o u s str a t e g i e s us e d by Vo d a f o n e R o m a n i a is diffe r e n c i a t i o n of off e r s in or d e r to sati sf y diffe r e n t de m a n d s of vari e s gr o u p s of cu s t o m e r s . V o d a f o n e R o m a n i a pro p o s e s a ver y lar g e vari e t y of tariff pl a n s for po s t p a i d an d pre p a i d clie n t s. Fr o m Si m p l e tariff pl a n s – 3€ m o n t h l y pri c e pla n de s ti n a t e d to pe o p l e w h o do n’t call a lot to pro g r a m s “Fa v o u r i t e nu m b e r s , fav o u r i t e ho u r s, du a l nu m b e r etc”. Al s o ther e is a bi g qu a n t i t y of m o r e co m p l e x off e r s like “Vo d a f o n e fa m i l y” wit h on e bill for the entir e fa m i l y an d “Vo d a f o n e B u s i n e s s Gr o u p ” w h e r e the co m p a n y ch o s e d thi s pl a n be n e f i t s a big nu m b e r of ad v a n t a g e s in call rat e s an d traffi c mana g e m e n t. An o t h e r str a t e g y us e d by V o d a f o n e R o m a n i a ai m s to im p r o v e ex e c u t i o n in exi sti n g bu si n e s s e s thr o u g h cu s t o m e r val u e en h a n c e m e n t . Val u e en h a n c e m e n t inv o l v e s m a x i m a s i n g the val u e of exi s ti n g cu s t o m e r rel ati o n s h i p s , not just the rev e n u e . Thi s ap p r o a c h shift s a w a y fro m unit ba s e d tariff s to pr o p o s i t i o n s that deli v e r m u c h m o r e val u e to cu st o m e r s in ret u r n for gr e a t e r co m m i t m e n t , incr e m e n t a l pe n e t r a t i o n of the ac c o u n t or m o r e bal a n c e d co m m e r c i a l co s t s. Thi s re q u i r e s a m o r e dis ci p l i n e d ap p r o a c h to co m m e r c i a l co s t s to en s u r e inv e s t m e n t is foc u s e d on tho s e cu s t o m e r s wit h hig h e r lifeti m e val u e. C u s t o m e r val u e en h a n c e m e n t re pl a c e s the pr e v i o u s foc u s on rev e n u e sti m u l a t i o n . Thi s en h a n c e m e n t in Vo d a f o n e R o m a n i a is m a d e thr o u g h the sy st e m of bo n u s e s , loy al t y poi n t s, diff e r e n t red u c t i o n s an d ch e a p ha n d s e t s . W h a t is im p o r t a n t in thi s str at e g y is that bot h pr e p a i d an d po s t p a i d pl a n s’ clie n t s be n e f i t s fro m this sys t e m . In pr e p a i d pla n s, cu st o m e r s bu yi n g on e car d be n e f i t a bo n u s , that w e ca n se e in this ch a r t. Bei n g a cli e n t of po s t p a i d pl a n the cu s t o m e r coll e c t loy al it y poi n t s for ev e r y m o n t h of bei n g wit h Vo d a f o n e . € bo n u s A loy a l t y poi n t is w o r t h 1. 1 9 E ur o ce n t s. S u b s c r i b e r s ca n us e loy a l t y poi n t s in ord e r to: 4-6 3%  pur c h a s e a ne w ha n d s e t 7-1 0 10 % 1 1- 1 5 15 %  tur n the m into dis c o u n t s on yo u r pa y m o n t h l y pri c e pla n s an d extr a o p t i o n s 1 6- 25 18 % 4  tur n the m into fre e mi n u t e s for nati o n a l call s 26 -1 0 0 20 % Al s o su b s c r i b e r s of po s t p a i d pla n s be n e f i t s fro m diff e r e n t bo n u s e s . A n o t h e r str at e g y ap pl i e d by V o d a f o n e R o m a n i a to attr a c t ne w su b s c r i b e r s an d en h a n c e rel ati o n s h i p s wit h exi sti n g su b s c r i b e r s is to off e r ph o n e pa c k a g e s . Th e pa c k a g e co n s i s t of a ph o n e , SI M car d wit h nu m b e r an d 4€ cre d i t. All thi s for, in av e r a g e , 48€. An o t h e r str a t e g y us e d by V o d a f o n e in R o m a n i a is the red u c t i o n of curr e n t co st s in ord e r to off e r m o r e co m p e t i t i v e pri c e s . Th e Gr o u p ha s est a b l i s h e d a sig ni fi c a n t nu m b e r of initi ati v e s w hi c h ar e ex p e c t e d to red u c e curr e n t op e r a t i n g co st s by ap p r o x i m a t e l y £ 1 billi o n per an n u m by the 20 1 1 fin a n c i a l ye a r to hel p offs e t the pr e s s u r e s fro m co s t infl ati o n an d the co m p e t i ti v e en vi r o n m e n t an d to en a b l e inv e s t m e n t in gro w t h op p o r t u n i t i e s . 4 htt p s ://w w w . v o d a f o n e . r o/ p e r s o n a l/i n d e x . h t m 16
  17. 17. 6.4 VODAFONE IN DEVELOPPING COUNTRIES To d a y Vo d a f o n e is alre a d y re p r e s e n t e d in a nu m b e r of attr a c t i v e e m e r g i n g m a r k e t s . Th e Gr o u p ’ s pri n c i p a l foc u s is no w on ex e c u t i o n in the s e m a r k e t s , part icul a rl y in Indi a, Tur k e y an d the exi s ti n g Afri c a n foot p r i n t, foll o w i n g the ac q u i s i ti o n of a co n t r o l li n g inter e s t in V o d a c o m ba s e d in So u t h Afri c a. E m e r g i n g co u n t r i e s re p r e s e n t tod a y a ver y bi g inte r e s t for tel e c o m m u n i c a t i o n se ct o r. In de v e l o p e d co u n t r i e s w h e r e the m o b i l e pe n e t r a t i o n in av e r a g e ac c o u n t s ab o u t 1 2 0 % rep r e s e n t ver y fe w po s s i b i l iti e s for the gro w t h for tel e c o m m u n i c a t i o n co m p a n i e s . E m e r g i n g m a r k e t in co n t r a r y , ex h i b i t the pot e n t i a l for str o n g gr o w t h as the m o b i l e pe n e t r a t i o n rat e s ar e ar o u n d 38 % on av e r a g e . M ai n ch a ll e n g e s of the e m e r g e n t m a r k e t for m o b i l e co m p a n i e s are: La c k of infr a s t r u c t u r e for pro v i d i n g fixe ph o n e line s  Pe o p l e ar e ver y co n s c i o u s ab o u t pri c e s  H a n d s e t s an d lapt o p s – ar e diffi c u l t to aff o r d for m o s t pe o p l e 5 Str a t e g i e s that sh o u l d be ap pl i e d by tel e c o m m u n i c a t i o n co m p a n i e s to su c c e d in e m e r g e n t co u n t r i e s ar e the foll o w i n g :  Ap p r o p r i a t e pri c e s  C o n n e c t i n g re m o t e co m m u n i t i e s  N et w o r k feat u r e s to m a k e co n n e c t i n g si m p l e (Net w o r k to w e r s)  Ultr a lo w co s t ha n d s e t s  Inn o v a t i v e an d cre a t i v e ap p r o a c h to offe r s of ser v i c e s  R el e v a n t loc a l co n t e n t in the loc a l lan g u a g e . 6.5 VODAFONE IN INDIA Th e Indi a n tel e c o m m u n i c a t i o n ind u s t r y , wit h ab o u t 506,0 2 milli o n m o b i l e ph o n e co n n e c t i o n s (Nov 200 9), is the thir d lar g e s t tel e c o m m u n i c a t i o n net w o r k in the w o rl d an d the se c o n d larg e s t 5 A ba s i c les s o n in prici n g str at e g i e s , Th o m a s W a v e l e t an d P a b l o G o m e z giv e yo u, Eri c s s o n B u s i n e s s R e v i e w 2·2008 17
  18. 18. in ter m s of nu m b e r of wir el e s s co n n e c t i o n s . Th e Indi a n tel e c o m ind u s t r y is on e of the fast e s t gr o w i n g in the w o rl d an d is pr oj e c t e d that Indi a will ha v e “billio n plu s” m o b i l e us e r s by 20 1 5. In last de c a d e Indi a n m o b i l e ph o n e ind u s t r y ha s wit n e s s e d a dra m a t i c gr o w t h . C h e a p m o b i l e ha n d s e t s , affo r d a b l e airti m e rat e s, lo w initi al co s t an d aff o r d a b l e m o n t h l y rent a l s m a d e it ea s y for an y b o d y to go m o b i l e. Vo d a f o n e Es s a r , for m a l l y kn o w n as H u t c h i s o n Es s a r is a cell ul a r op e r a t o r in Indi a that co v e r s 23 tel e c o m circl e s 6 in Indi a ba s e d in M u m b a i . Vo d a f o n e Es s a r is o w n e d by V o d a f o n e 67 % an d Es s a r Gr o u p 33 % . It Is the se c o n d lar g e s t m o b i l e ph o n e op e r a t o r in ter m s of rev e n u e be hi n d Bh a r ti Airt el, an d thir d larg e s t in ter m s of cu s t o m e r s . As of Ju n e 31, 200 9 Vo d a f o n e Indi a ha s 1 8,8 % cu s t o m e r m a r k e t sh a r e an d 20,7 % rev e n u e m a r k e t sh a r e . As a de v e l o p i n g co u n t r y Indi a ha s a tru e lac k of infr a s t r u c t u r e so rur al co m m u n i t i e s w h e r e the r e is 70 % of po p u l a t i o n ha s an en o r m o u s pot e n t i a l for the gro w t h as onl y 2 % of this pe o p l e ha v e ac c e s s to a m o b i l e ph o n e . S o Indi a is a ver y ch a ll e n g i n g but a ver y attr a c t i v e m a r k e t. Vo d a f o n e set up 500,0 0 0 poi n t s of sal e in 10 0,0 0 0 to w n s an d vill a g e s . Eit h e r, Vo d a f o n e Es s a r est a b l i s h e s a net w o r k w h e r e ther e is neit h e r an el e c t ri ci t y gri d nor a tra n s m i s s i o n link to the fix e d- lin e net w o r k that req u i r e s an inn o v a t i v e ap p r o a c h . V o d a f o n e parti ci p a t e in co n s t r u c t i o n of Ind u s To w e r s all o w the net w o r k to be de v e l o p e d at a fast e r rat e, en a b l i n g m a n y pe o p l e to get co n n e c t e d m u c h m o r e ra pi d l y. An o t h e r ch a r a c t e r i s t i c of Indi a n m a r k e t is that co n s u m e r s the r e are extr e m e l y pri c e co n s c i o u s . Th e av e r a g e rev e n u e per cu st o m e r in Indi a is U S $ 7 per m o n t h . Prepaid and Post- paid plans of Vodafone India In tele c o m m u n i c a t i o n m a r k e t the im p a c t of ec o n o m i e s of sc al e is ver y im p o r t a n t . All oth e r thi n g s bei n g eq u a l , op e r a t o r s ha v e an inh e r e n t inter e s t in incr e a s i n g traffi c in thei r net w o r k s , as the co s t per mi n u t e de c r e a s e s su b s t a n t i a l l y ov e r ti m e. Th e s e pri c e s fall ver y lo w es p e c i a l l y in de v e l o p i n g co u n t r i e s , like for ex a m p l e , in Indi a. But the re a s o n is not onl y a ver y co m p e t i ti v e m a r k e t that w e ca n se e in Indi a, but the fact that m o s t part of the po p u l a t i o n is ver y pri c e co n s c i o u s . At the sa m e ti m e, a ver y hig h gr o w t h of su b s c r i b e r s ev e r y m o n t h all o w s to tel e c o m co m p a n i e s to ha v e ver y lo w rat e s. In Indi a, on av e r a g e , the m a r k e t sa w ov e r 6 - 7 milli o n ne w su b s c r i b e r s ev e r y m o n t h . So, the m ai n stra t e g y , im pl e m e n t e d by Vo d a f o n e in Indi a w a s ad o p t i n g its pri c e s to the loc a l rat e lev el. So, the su c c e s s of V o d a f o n e in Indi a is du e m ai n l y to its su c c e s s f u l str at e g y to lo w e r the aff o r d a b i l i t y barri e r. Th e flat pri c e for a mi n u t e in Vo d a f o n e net w o r k is 0,0 1 $. To d a y , Indi a n su b s c r i b e r s ha v e the lo w e s t m o b i l e ph o n e rat e in the w o rl d. Its lo w rat e V o d a f o n e ad o p t to diff e r e n t de m a n d s of its cu s t o m e r s . Th e r e is a bi g vari e t y of tariff pla n s, w hi c h m o s t l y co n c e r n pr e p a i d cu s t o m e r s w h o rep r e s e n t the bi g g e s t part of su b s c r i b e r s . For ex a m p l e , w e ca n fin d a lot of diffe r e n t “bon u s car d s”, like “bo n u s car d 1 4” w hi c h co s t s 0,23€ 6 Th e r e are 27 tele c o m circl e s in In di a 18
  19. 19. , av ai l a b l e on e m o n t h an d yo u ca n se n d 1 4 0 0 S M S m e s s a g e s wit h this cre d i t. Or yo u ca n bu y a “ Bo n u s C a r d 1 5” that co st s 0,24€ an d yo u ca n call for 0,006 4 € in a mi n u t e , m e a n s 0,4€ for an ho u r of co n v e r s a t i o n . Us u a l l y thi s kin d of car d s ha v e a peri o d of vali di t y w hi c h us u a l l y do e s n ’ t ex c e e d 30 da y s. Th e r e is a bi g qu a n t i t y of diffe r e n t off e r s like “Nig h t sp e a k bo n u s car d “ or “frie n d bo n u s car d” w h e r e the pri c e is ev e n lo w e r (0,31 € for a “nig h t sp e a k bo n u s car d” wit h w hi c h yo u ha v e rig ht to 3 ho u r s an d 20 mi n u t e s of co n v e r s a t i o n fro m 23:00 to 8:00 7 ). C o n c e r n i n g the po s t p a i d offe r s, the y ar e les s spr e a d tha n pre p a i d offe r s, m o r e diffi c u l t to get (the su b s c r i b e r ha s to fill up a lot of pa p e r s an d to pr o v e the sol b a b i l i t y). Th e pri c e s off e r e d in the s e pl a n s ar e m o r e ex p a n s i v e tha n pre p a i d pla n s. An o t h e r str at e g y on the w a y of co v e r i n g m o r e an d m o r e su b s c r i b e r s to the net w o r k w a s m a k i n g the m o b i l e ph o n e s av a il a b l e for m o s t part of Indi a n s . Hi st o r i c a l l y, the pri c e of the ha n d s e t ha s be e n a ke y barri e r to aff o r d a b i l i t y of m o b i l e co m m u n i c a t i o n s , parti c u l a r l y in the co u n t r i e s w h e r e the ph o n e s ar e not su b s i d i s e d , like in Indi a. V o d a f o n e offe r s the pa c k a g i n g wit h a pr e p a i d SI M car d, a ba si c ha n d s e t an d 200 fre e loc al mi n u t e s for 20€. Th a t is an av e r a g e off e r s. Si n c e the lau n c h of su c h offe r s V o d a f o n e shi p p e d to m o r e tha n 1 0 milli o n lo w- co s t ha n d s e t s to m o r e tha n 50 co u n t r i e s . Th e ne x t str at e g y of V o d a f o n e Es s a r w e will sp e a k ab o u t is diff e r e n c i a t i o n of pro v i d e d ser v i c e s . If the ph o n e s be c a m e m o r e an d m o r e affo r d a b l e for a big part of po p u l a t i o n in Indi a, the lapt o p s sta y m u c h too ex p a n s i v e for m o s t Indi a n s . But at the sa m e ti m e m o s t m o b i l e pr o v i d e r s , Vo d a f o n e eith e r, pro p o s e the inte r n e t ac c e s s fro m the ph o n e . Th a t’ s w h y m o s t op e r a t i o n s on inter n e t ar e us u a l l y m a d e by ph o n e . Th a t op e n s for ph o n e op e r a t o r s a lot of po s s i b i l iti e s to attr a c t ne w su b s c r i b e r s by off e ri n g all kin d s of diff e r e n t ser vi c e s , fro m se n d i n g flo w e r s to bu y i n g a trip or a tick e t on a pl a n e . All thi s vari e t y of off e r s w e ca n se e a m o n g V o d a f o n e ’ s pro p o s a l s . 8 7 htt p://w w w . v o d a f o n e . i n/ P a g e s/i n d e x . a s p x 8 Int e r n e t - 10p (0,0015€) / 1 0 K B  Tu n e s & D o w n l o a d s - Rs 7 (0,11€ ) per do w n l o a d  S e n d flo w e r s , gift s  B u y m o v i e tick e t s - Rs 10 (0,15€) ext r a per tic k e t  As t r ol o g y- Rs 9 ( 0,14€) / mi n  Fi n a n c e - Rs 30 (0,45€) / m o n t h  Tr a v e l – Rs 3 (0,05€) / S M S  V o d a f o n T V - Charge s: Rs 30 (0,45€) /-m o n t h  Jo b s on V o d a f o n e- M o n t h l y su b s c r i p t i o n fee of Rs 30/ (0,45€) 19
  20. 20. M a n y ser vi c e pro v i d e r s in co m p e t i ti v e m a r k e t s cat e r to the pri c e se n s i ti vi ti e s of co n s u m e r s by co n ti n u a l l y offe ri n g lo w e r rat e s. Th e iss u e wit h su c h a stra t e g y is that it do e s n ’ t ne c e s s a r i l y gu a r a n t e e loy a l t y. Pr e p a i d su b s c r i b e r s are just as likel y to ch u r n w h e n a diff e r e n t pro v i d e r off e r s a lo w e r pri c e. W h a t’ s m o r e , wit h pri c e s dro p p i n g to les s tha n 1 ce n t a mi n u t e for pr e p a i d voi c e call s, ov e r a l l rev e n u e s are ne g a t i v e l y im p a c t e d as w ell. O n e loy a l t y str a t e g y that ha s e m e r g e d in the Indi a n m a r k e t is the “lifeti m e” gu a r a n t e e of pre p a i d rat e s. R eli a n c e , Airt el an d Vo d a f o n e , a m o n g oth e r s, off e r a lifeti m e pre p a i d rat e w h e r e , in ad d i ti o n to off e ri n g lo w rat e s, the y als o gu a r a n t e e the s e rat e s ov e r an ext e n d e d peri o d of ti m e. C u s t o m e r s are m o r e likel y to sta y wit h thei r pro v i d e r if the y kn o w that the rat e s on offe r will not ch a n g e w hil e the y re m a i n a cu s t o m e r Se r v i c e pr o v i d e r s ne e d to intr o d u c e m o r e inn o v a t i v e , cre a ti v e prici n g m o d e l s that not onl y diff e r e n t i a t e , but als o pr o v i d e re al val u e to cu s t o m e r s wit h o u t ne c e s s a r i l y jeo p a r d i z i n g lon g- ter m rev e n u e s . N ot onl y is this pri ci n g a stro n g diff e r e n t i a t o r , it als o en c o u r a g e s pr e p a i d us e r s to m a k e call s of lon g e r dur a t i o n . R e m e m b e r , bett e r pri ci n g do e s not ne c e s s a r i l y m e a n the lo w e s t pri c e. S er v i c e pr o v i d e r s w h o ar e in tun e wit h thei r cu s t o m e r s ’ ne e d s an d co n s u m p t i o n ha bi t s ca n us e thi s infor m a t i o n to cre a t e attr a c t i v e off e r s an d buil d loy al t y A si m i l a r tre n d ca n be fou n d in M al a y s i a w h e r e ser v i c e pr o v i d e r s ha v e foc u s e d on ext e n d i n g the vali di t y peri o d of the pr e p a i d bal a n c e in ad d i ti o n to the rat e s as w ell Th e pot e n t i a l risk wit h the s e str a t e g i e s , ho w e v e r , is that it’s rel ati v e l y ea s y to co p y an d on c e ev e r y ser v i c e pr o v i d e r gu a r a n t e e s lifeti m e rat e s or ext e n d e d bal a n c e peri o d vali di t y, the real diff e r e n t i a t o r ag a i n be c o m e s pri c e. 6.6 VODAFONE EGYPT Vo d a f o n e Eg y p t is the lar g e s t co m m u n i c a t i o n s m o b i l e co m p a n y in Eg y p t in ter m s of cle a r be n e f i t an d the lar g e r se c o n d in ter m s of m a r k e t an d of inc o m e . Th e net w o r k s of the G S M an d the G P R S of the co m p a n y rou g h l y co v e r [98.5 %] of the total E g y p t i a n po p u l a t i o n . Be si d e s its nati o n a l ins u r a n c e , the co m p a n y als o ha s roa m i n g G S M agr e e m e n t s wit h m o r e tha n 270 m o b i l e tel e c o m m u n i c a t i o n s op e r a t o r s in m o r e tha n 10 9 co u n t r i e s out of six co n ti n e n t s . Hi st o r i c a l l y, the m a r k e t i n g ca m p a i g n s of V o d a f o n e E g y p t w e r e de si g n e d to attr a c t ad di ti o n a l su b s c r i b e r s . Th e co m p a n y rec e n t l y pr e s e n t e d a ne w m a r k e t i n g str a t e g y w hi c h refl e c t s the pri orit y to incr e a s e the total m a r k e t sh a r e wit h the incr e a s i n g cu s t o m e r s an d to pr o m o t e the us e of m o b i l e tel e p h o n y , als o to m a i n t a i n the fid elit y of the su b s c r i b e r s in m o n t h l y pl a n s an d pl a n s pr e p a i d wit h a sp e c i a l e m p h a s i s in the cor p o r a t i v e se c t o r. Th e futu r e m a r k e t i n g ca m p a i g n s als o co n c e n t r a t e on the inte r n a t i o n a l ap pl i c a t i o n s of the pr o d u c t s an d ser v i c e s for cor p o r a t i v e cu s t o m e r s an d inte r n a t i o n a l tra v e l e r s . 20
  21. 21. An o t h e r str at e g y of V o d a f o n e E g y p t is to sp o n s o r the Eg y p t i a n sp o r t, parti c u l a r l y the foot b a l l tea m s an d the ha n d i c a p p e d sp o r t s. Th e co m p a n y ha s rec e n t l y agr e e s to su p p o r t the E g y p t i a n fed e r a t i o n of foot b a l l for the w o rl d cu p in 20 1 0 9 . Prepaid plans in Egypt Th e r e is a vari e t y of pr e p a i d pl a n s co m p a r e d to tho s e of the U ni t e d Ki n g d o m , at lea s t six diff e r e n t opti o n s diffe r e n t. So m e ch a r a c t e r i s t i c s in the ser vi c e ar e: • Th e po s s i b i li t y of re q u i ri n g so m e b o d y to tra n s f e r part of the bal a n c e to the ac c o u n t of a frie n d . • R e d u c e d fee s for the rea c t i v a t i o n of the line. • Th e us e of the pre p a i d car d s . Th e pri c e of the mi n u t e in Eg y p t co m p a r e d to the U ni t e d Ki n g d o m ca n be five (5) ti m e s les s ex p e n s i v e . Post- paid plans in Egypt Th e r e is an offe r of co n t r o l l e d pla n s an d bul k of mi n u t e s . For the co n t r o l l e d pl a n s ther e is a li mit of a fix e d pri c e an d de p e n d i n g on the us e, the ser vi c e is inv o i c e d . Th e tariff is fixe d at 1 9 pia s t r e s (2.5 ce n ti m e s of eur o). For the bul k s , the r e are offe r s wit h a fixe d- pri c e per mi n u t e in pi a s t r e s (2.5 ce n ti m e s of eur o), an d de p e n d i n g on the enti r e pri c e of the pl a n the call s be c o m e unli m i t e d wit h all the op e r a t o r s . 7 BI BLIOG RAPHY • Vo d a f o n e an n u a l re p o r t 200 9 • Is Vo d a f o n e the w o rl d' s onl y trul y inte r n a t i o n a l tel e c o m m u n i c a t i o n co m p a n y an d w h y ? Se p t e m b e r 200 9, O p ti c a l N e t w o r k s D ail y O B S E R V • Fl at Pri ci n g on P u r c h a s e Hi st o r y: A Str a t e g y for Th e D e m a n d D e c r e a s i n g Tel c o s , 200 4 • Vo d a f o n e E g y p t , C o r p o r a t e re p o r t 200 3 • X E R F I 7 0 0 , les gro u p e s de tél é c o m m u n i c a t i o n s en E ur o p e - juill et 200 7 • M O B I L E VI R T U A L N E T W O R K O P E R A T O R S T R A T E G I E S . Annukka Kiiski, Heikki Hämmäinen. N et w o r k i n g La b o r a t o r y , H el si n k i U ni v e r s i t y of Te c h n o l o g y • A ba si c les s o n in pri ci n g str at e g i e s , Th o m a s W a v e l e t an d Pa b l o G o m e z giv e yo u, Eri c s s o n Bu s i n e s s R e v i e w 2·200 8 Sites interne t: htt p s://ww w . v o d a f o n e . r o/ p e r s o n a l/i n d e x . h t m 9 http://ww w . v o d a f o n e . c o m . e g/s t e ll e n t/gr o u p s/vf e _ m a r k e t i n g/d o c u m e n t s/ vf e _ d o c/vf _ 0 0 4 6 8 5 . p d f 21
  22. 22. htt p://ww w . v o d a f o n e . i n/ P a g e s/i n d e x . a s p x htt p://ww w . v o d a f o n e . c o m . e g/ e n/ H o m e/i n d e x . h t m htt p://hel p. v o d a f o n e . c o . u k/ s y s t e m/ s e l f s e r v i c e . c o n htt p://ww w . p d f q u e e n . c o m / h t m l/ a H R 0 c D o v L 3 d 3 d y 5 h b W R v Y 3 M u Y 2 9 t L 2 R v Y 3 V t Z W 5 0 c y 9 B b W R v Y3 N f U H J l c G F p Z F 9 M b 3 l h b H R 5 L n B k Z g http://www.cfin.ru/ ww w.ib ef.or g ww w.glo b al e q u a ti o n s.c o m http://ww w . c o m n e w s . r u/i n d e x . c f m ? i d = 2 9 4 4 9 22

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