Vodacom Marketing Research Paper Essay

The intent of this memoranda is to analyse and explicate the current trade name placement and mark market of South African company. Vodacom. from old commercial advertizements. After holding analyzed the current mark market and trade name place we would urge a new mark market and place for Vodacom of South African’s age scope. 15-55 ( 58. 7 % of entire population ) and include the undermentioned sections within the market: white and black South Africans. concern grownups and corporations. while still including the younger more technologically friendly age group 15-24 ( 38. 1 % of entire population ) .


A elaborate analysis on regulative. political. societal. international. and economic factors has resulted in many inside informations that can impact Vodacom. We offer solutions to these factors below.

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Regulative Factors

South Africa. despite it being the most developed state in Africa. is still divided by a figure of different Torahs and ordinances put in topographic point decennaries earlier. As a consequence. many races and civilizations within this state are segregated from one another. We found this is where Vodacom will meet jobs because of the many different communities that all have different involvement. Our advice to Vodacom would be to hold an mixture of advertizements that separately targets different unintegrated communities in order to maximise profitableness.

Political Factors

The political state of affairs within South Africa today supports a presidential representative democratic democracy. where the president is both caput of the authorities and multi party system. South Africa is ranked 69th out of 176 states on Transparency International’s Corruption Perceptions Index 20125. 53 % of South African Investing professionals are concerned about political instability in the approaching twelvemonth. Particularly with the decease of their former president Nelson Mandela. a South African icon. Corruptness may impact Vodacom in footings of efficiency. resource allotment. development. and direction. The inefficient allotment of resources and direction are continuously harming the company. For illustration. apportioning resources to pay off functionaries to profit the concern can ensue in short term assistance. but long tally injury. Development can besides be a challenge due to the repute companies receive when known for corruptness. It is more hard to happen cardinal investors when payoffs and final payments are involved. which proves to be a high factor in South Africa. I believe Vodacom would profit ( in long tally ) to seek and halt the high corruptness rate within the company. Vodacom could implement an anti-corruption policy that addresses corruptness at a macro and micro degree. The anti corruptness policy must besides use to each subdivision of Vodacom’s value concatenation. corporate degree to providers and purchasers of the company. This anti corruptness policy will guarantee that corporation does non make any liability that may damage gross revenues and the repute of Vodacom. Weak legal establishments and hapless administration heighten the hazard of puting. The high hazards associated with puting in South Africa turn out to be a job for Vodacom. doing it much harder for the corporation to turn and pull investors. A cardinal constituent in any marketing/business program is the investors. doing this one of Vodacom’s more urgent issues. A solution to this job can be turn uping cardinal investors with significant support to profit Vodacom even in a society with hapless authorities. Involving cardinal investors in promotional runs that would be reciprocally good could make this.

Social Factors

South Africans constitute about 48. 601. 098 million occupants harmonizing to CIA universe fact book of a July 2013 nose count. The multiple races that make up South Africa are limited. with 79 % of Black Africans. 9. 6 % Whites. 8. 9 % colored. and 2. 5 % Indian/Asian ethnicity ( 2001 nose count ) . There is an mixture of linguistic communications spoken within the state but the top three linguistic communications include: IsiZulu with 23. 82 % . IsiXhosa with 17. 64 % . and Afrikaans with 13. 35 % popularity and English at 8. 2 % . South Africa’s most widely found faith is Protestant at 36. 6 % . The proportion of S. Africans populating in rural countries has fallen by 10 % since 1994. Today. 62 % of the population lives in urban countries. with a 1. 21 % one-year rate of alteration. The staying population that lives in rural countries could present as a menace to the scope in consumers. 38 % of the population could miss the proper necessities to utilize Vodacom. Furthermore. this market besides includes the highest mixture of unintegrated groups. A solution to this job is to analyse what resources are available in the rural countries and if they have the proper engineering to obtain Vodacom. Vodacom could so picture the largest mark market within this group and attempt to better place their trade name to run into these consumer wants. Vodacom does non desire to restrict the scope of possible clients due to where certain clients live. Furthermore. Vodacom could maximise net incomes if it made its merchandise available to utilize all of South Africa. irrespective or rural or urban scene. Post-Apartheid South Africa remains divided. Amongst these spliting factors is gender. geographical location. and most perceptibly is race. If any one of these groups is non decently targeted. Vodacom risks losing a big per centum of possible consumers. In order to avoid holding this job. Vodacom needs to universally market its merchandise to all targeted consumers efficaciously. Because South Africa has so many spliting lines. it is of import that Vodacom leave out any group in order to maximise net incomes.

International Factors

Over the past decennary South Africa has reduced the figure of duties. The consequence of cut downing duties is more competition and reduced cost construction within the industry. Because Vodacom used the first mover advantage when come ining the South African market. they can utilize the duty alterations as an advantage. If Vodacom can go on to do their merchandise cheap and readily accessible the duty decrease could merely assist the company maximise net incomes.

Economic Factors

The CIA universe database studies that South Africa is a middle-income. emerging market with an abundant supply of natural resources ; well-developed fiscal. legal. communications. energy. and transport sectors and a stock exchange that is the fifteenth largest in the universe. Even though the state possesses modern substructure that support a comparatively efficient distribution of goods to major urban centres throughout the part. some constituents retard growing. GDP fell about 2 % in 2009 but has recovered since so and is turning at a rate of 2. 5 % . Unemployment. poorness. and inequality remain a challenge. with official unemployment at about 25 % of the work force. South Africa’s economic policy has focused on commanding rising prices. nevertheless. the state has had important budget shortages that restrict its ability to cover with pressing economic jobs. As the economic system declines it decreases the sum of concern for the company. which straight affects Vodacom. Now. in the age group of 15-25 is a 49 % unemployment rate. so they are non needfully the majority of the mark market. This can impact Vodacom’s future gross revenues. If young person under 25 is unemployed how will they be able to buy merchandises from Vodacom? There must be a broad scope of merchandises available to run into the demands of every feasible client option.

Current Target Market

From analysing Vodacom’s commercials and demographics the current mark market is the developed market. specifically the white South African grownup in higher income groups age scope 30-54. The first two commercials represent a run that relates to the rugger fans. which is particularly popular among people of Afrikaan descent. These two commercials focus on participant 23 and a competition between Elton and Jan. Using the Rugby athleticss ties in groups that would hold otherwise been divided the boundaries. The linguistic communication in these two commercials is besides a cardinal factor in analysing the current mark market. The Afrikaan linguistic communication was 13. 5 % of the population in a 2011 nose count. Zulu comprised 22. 7 % and Xhosa comprised 16 % . The 2nd commercial entreaties the older Afrikaan audience due to the Afrikaans singing esthesis Robbie Wessels. Another factor that contributes to the mark market is the 3rd commercial. This commercial is two of the six commercials that features black South Africans. This commercial specifically makes note of the deficiency of invention nowadays in South Africa “we been holding it! ” . The commercial is centered around the black South African functionary believing he is up to day of the month with engineering and communicating. when in actuality he is one measure behind Vodacom. the taking cellular web. Furthermore. they specifically chose one of the most celebrated Kenyan histrions Charles Bukeko. Having a widely known famous person in their commercial brings much positive attending to their company. The white South African grownup age 30-55 is the current mark market of Vodacom. which merely counts for 8. 9 % of South Africa. In my sentiment this mark market is much excessively little. go forthing a big figure of possible consumers to be attracted by viing cellular companies.

Current Brand Placement

Vodacom is known in South Africa as the taking cellular company. The company besides hopes to increase the figure of 3G base Stationss within South Africa as a manner to repossess their unhappy clients and supply a more efficient service around the state. Vodacom is the taking service supplying advanced and accessible merchandises. On a lighter note. the rugger participant 23 represent two opposing positions unifying and siting of all anterior struggles due to a state broad athletics. These runs provide a sense of understanding the local population. and supply trust and esteem from the local population and in return instill these qualities in Vodacom. Vodacom’s trade name consciousness is increasing from these tactics of appealing to the ultimate rugger fan. This is one of the many ways Vodacom has united the state in which they operate.

Recommended Target Market and Brand Positioning

From a concentrated analysis of the current mark market and trade name placement we recommend to change both the mark market and trade name placement. My recommendations will spread out the mark market in order to widen possible outreach and profitableness. The current trade name placement offered indispensable Vodacom trade name strengths. but we recommend more cardinal factors for a more appropriate trade name placement. The new mark market is South Africans ages 15-55. We besides recommend three specific mark sections within this mark market. First. Vodacom should aim white and black South Africans. Second. the company should besides aim concern grownups and companies. ages 25-55. Last. we recommend aiming the immature grownups. specifically technologically savvy young person. ages 15-24. The old Target Market was concentrating on a little per centum of South Africa. Vodacom should take full advantage of the diverseness within South Africa. broadening their mark market in order to maximise the full potency of the company and its net incomes. Targeting such a little per centum of the population gives manner for factors. such as high unemployment in the younger coevals. to do an incremental difference in profitableness and success. Furthermore. black Africans account for 79 % of the entire population. and even though a larger potion of this per centum represents the lower category. there is still an undeniable sum of market potency within this section. Vodacom should ramify out its current mark market from the upper category. which is significantly Caucasians at about 10 % of the population. to the different sectors found in the developed and developing 1s every bit good. Specifically. in the developed sector we recommend Vodacom mark establishments and corporations likewise therefore taking advantage of this untapped market by offering particular “corporate” trades to those eligible. The developed market consists of high-end concern grownups that incorporate the advanced persons that are involved in current social tendencies. Last. the tech understanding young person can potentially be a big mark market for Vodacom. The tech understanding young person from ages 15-24 comprises 20. 6 % of South Africa’s population. Although about 50 % of this class is unemployed. the staying 50 % give chance for Vodacom to construct a life-long customer/supplier relationship. This mark market is advanced and ready for the latest engineering to emerge. The current mark market should be expanded to the development. developed and youth tech understanding markets to make full potency and profitableness.

Brand Positioning is the 2nd class that needs to ramify out from Vodacom’s current placement. The current stigmatization place needs a small accommodation adding planetary trade name as a chief factor in trade name placement. Having a strong planetary trade name creates a competitory advantage and most significantly a strong and positive trade name image. Vodacom needs to concentrate on allowing the client know what and who they are: “South Africa’s taking cellular web. with advanced. low-cost. and accessible merchandises. tailored to the demands of any one South African consumer. ” Next. Vodacom must present this message through the right channels. which will be the undermentioned: Sunday Times. Daily Suns. and Rapport. Another channel should be advertizements on coachs that travel in Cape Town. the followers should be used: Algoa coach company. Baz Bus. and Greyhound. A 3rd channel that should be used is popular airdromes throughout South Africa: Voted top 3 in popularity I recommend Johannesburg/Tambo International Airport. Cape Town International Airport. and H F Verwoerd Airport. The above channels will at the same time and efficaciously aim the developed. developing. and technologically savvy young person. Another cardinal factors needed to reshape Vodacom’s trade name placement is the manner clients view their merchandises affordability. We recommend that Vodacom make it easy known and accessible to the populace that they offer a assortment of merchandise options with an array of monetary values that can be tailored to the demands and agencies of any one client. We recommend Vodacom promote this to the populace by integrating the flexibleness in monetary values in advertizements.

Marketing Mix

Product Vodacom must hold top of the line and most technologically advanced. yet accessible merchandises. This merchandise must hold characteristics that provide chances to pass on. Such characteristics include: long distance naming. confab chances. group texting. picture naming. picture/video messaging. cyberspace. and good 4G. Due to the 3 mark sections ( developed. developing. and technologically savvy ) . Vodacom must supply a line of merchandises that meet the demands of each market. The line of cell phones must dwell of basic runing for low cost and less technologically advanced consumers to innovative cell phones for the technologically savvy consumers. First. the basic phone merchandise line. this line will be tailored to the Black South African. We recommend aiming this merchandise for this section because these consumers are non looking for a hi-tech cell phone. By and large. this sector needs a basic. low-cost. merchandise that can fulfill daily demands. The basic phone line will include the undermentioned phones: Samsung A107. Nokia 7020. and LG Revere. The intermediate bundle will be targeted to the developed sector in South Africa. This will include cell phones that are more technologically advanced. yet are preponderantly standard merchandises. such as: Samsung Odyssey and the Blackberry Curve 8530. Finally. the last class will aim the technologically savvy young person. This merchandise line will be the newest and best merchandise available such as the Apple iPhone. Samsung Galaxy. and Android. The merchandises must besides supply service programs that accommodate each mark market. which is scope in monetary values. The service programs must help the scope of market. The service programs include the undermentioned: prepaid options ; basic coverage and informations use ; moderate coverage and informations use ; limitless coverage and informations use ; and corporate degree informations use. These coverage and informations services programs are catered to the mark markets and each section.

Monetary value

Vodacom needs to be accessible and low-cost to the mark market. Due to the scope in the mark market. the merchandise line must offer a scope of monetary value constructions to suit each section. I recommend Vodacom sharply restructure their monetary values and the bundles offered in order to derive full client potency. The pricing will follow the scope in merchandises from basic being lowest cost. and most advanced merchandise being higher costs. This scope of merchandise pricing attracts a broad scope of clients from different demographics. The basic phone line merchandises will run between 180. 00 – 470. 00 rands ( 19. 00-48. 00 US dollars ) . The moderate phone line will run between 480. 00-760. 00 rands ( 58. 00-77. 00 US dollars ) . The advanced phone line monetary values will run between 770. 00-1800. 00 rands ( 80. 00-180 US dollars ) . By holding multiple flexible monetary value bundles offered to the client. Vodacom additions a sustainable competitory advantage.

Topographic point

Bing South Africa’s largest cellular web the corporation has the resources needed to to concentrate on holding handiness for consumers. The merchandise must be placed accessibly in each mark markets part. First. the corporate office of Vodacom should be located in Cape Town and the warehouse within South Africa due to duties and revenue enhancements that can do extra costs for Vodacom. For the developing state the Vodacom traders must be located near the communities centers the company developed to increase trade name consciousness. Strategically puting merchandises near/at targeted clients work and societal environment will necessarily increase consumer trade name consciousness. For illustration. I recommend the merchandise Stationss to be located in extremely populated urban countries including Cape Town and Johannesburg. Shopping centres and University Campuses in these two metropoliss is another topographic point Vodacom should hold their merchandises in order to make the most consumers. These countries are frequently visited by the jutting mark consumer and offer a manner for them to acquire to cognize the merchandise before make up one’s minding to buy it. Last. for the turning tech savvy age group. these synergistic storage rooms will be located near universities. primary and secondary schools. A few universities and schools Vodacom can put merchandises are the undermentioned: University of Cape Town. University of Western Cape. Specifically. University of Cape Town is best known as pupil vicinity every bit good as the presence of an international population. By strategically puting their merchandise Vodacom should be able to increase their market size and potency.


Ad is the cardinal promotional method Vodacom will utilize to efficaciously make the mark market. First. because athleticss are extremely idolized by South African citizens. I encourage that Vodacom continue to utilize major athleticss figures as trade name representatives. Vodacom should get down a promotional run that focuses on holding South African famous person interpreters. such as: Siphiwe Tshabalala celebrated football participant. Olympic bronzy medallist. Llewellyn Herbet. Charlize Theron actress. and Candace Swanepol Victoria Secret Model. I would look into utilizing Olympic and rugby jocks in future commercials. every bit good as the Victoria Secret theoretical account Candace. Making this would go on to unite the state under common variables. This would farther reenforce the trade name image of “unity” that Vodacom has worked so difficult to accomplish. Second. I would wish to see Vodacom concentrate on advancing their restricted flexible packaged monetary value program. Vodacom needs to derive clients that would otherwise travel to different cell phone bearers by doing it non merely the best cell phone bearer. but an low-cost 1 every bit good.


Advertisement # 1 ? Caucasic female in backgroun and African descent male and female taking a on their iphone’s. This advertizement will aim the younger section ages 15-25 that are technologically savvy. Having a white and black individual in the commercial will do certain that both races are targeted. This advertizement will be aired in Aafrikan and English

Advertisement # 2? Any one of South Africa’s best rugger players– Stefan Bason. Kabamba Floors. Ryno Benjamin. Fabian Juries and Danwel Demas could play the portion in this advertizement. in add-on to Candace Swanepol. In this advertizement. I would wish to see one of the participants look intoing game tonss on their smart phone. merely before acquiring on a flight with their hot South African supermodel. Identify to this advertizement is unifying all the mark markets through a common South African famous person. This advertizement will aim the developed section that is on-the-go and professional. linguistic communication Aafrikan and English.

Advertisement # 3 Set in a rural environment. a adult female is walking with others on soil route. The adult female gets an pressing phone call ensuing in salvaging her farm. I recommend Vodacom make this advertizement a precedence. as it targets the mostly untapped population in rural South Africa. The cell phone of pick is a impudent phone. which signifies a less affluent mark market. The scene is of import because the phone call could be made even in a distant country ( good cell phone service ) . Finally. it shows the importance of holding a cell phone through Vodacom. because without holding received her phone call something bad could hold happened to her farm.


We propose some alterations in Vodacom’s mark market. We would urge spread outing the current mark market from ages 30-55 to 15-55. By making so. Vodacom will be aiming an energetic coevals that is technologically advanced and furthermore has potency of turning. I would besides urge that they target non merely the developed market. but the developing market in South Africa every bit good. This is a immensely untapped market that Vodacom would extremely gain from by taking advantage of this chance. We besides recommend that by re-positioning the trade name. Vodacom can increase gross revenues and profitableness. In decision. the new selling mix provides a more accurate merchandise. monetary value. topographic point and publicity in order to derive a more competitory advantage and go more successful within the industry.