The goal of this memorandum is to evaluate and explain the current brand positioning and target market of South Africa company, Vodacom, from earlier commercial advertising. After having analyzed the present target market and brand situation we would suggest a new target audience and position for Vodacom of Southern region African’s age groups, 15-55 (58. 7 % of total population) and can include the following sectors within the marketplace: white and black South Africans, business adults and corporations, although still such as the younger more technologically friendly age group 15-24 (38. you % of total population).
Analysis A detailed analysis on regulatory, politics, social, worldwide, and economical factors provides resulted in many details that can affect Vodacom. We offer strategies to these elements below. Regulatory Factors S. africa, despite it being the most developed region in Africa, is still divided by a a few different laws and regulations applied decades ahead of.
As a result, many races and cultures in this particular country happen to be segregated from a single another. We all found this is where Vodacom is going to encounter complications because of the numerous communities that every have different interest. Our suggestions to Vodacom would be to provide an assortment of adverts that separately targets distinct segregated neighborhoods in order to take full advantage of profitability. Personal Factors The political condition within S. africa today facilitates a president representative democratic republic, where president is definitely both mind of the govt and variable party program. South Africa can be ranked 69th out of 176 countries on Transparency International’s Problem Perceptions Index 20125.
53% of Southern African Expense professionals have concerns about political instability in the arriving year. Particularly with the fatality of their former president Nelson Mandela, a South Photography equipment icon. Data corruption may impact Vodacom when it comes to efficiency, useful resource allocation, development, and managing. The ineffective allocation of resources and management happen to be continuously doing harm to the company.
For example , allocating methods to pay off officials to advantage the business can result in short term help, but long term harm. Development can also be difficult due to the popularity companies get when praised for corruption. It is more difficult to find key investors when piece and payoffs are involved, which in turn proves to be a high factor in South Africa. I really believe Vodacom could benefit (in long run) to try and prevent the excessive corruption level within the firm.
Vodacom could implement a great anti-corruption policy that tackles corruption at a macro and tiny level. The anti corruption policy must apply to every single section of Vodacom’s value chain, corporate level to suppliers and purchasers of the business. This anti corruption coverage will ensure that corporation would not create virtually any liability which may damage revenue and the trustworthiness of Vodacom. Poor legal corporations and poor governance increase the risk of investing.
The substantial risks linked to investing in South Africa prove to be problems for Vodacom, making it much harder for the corporation to increase and catch the attention of investors. A key component in any marketing/business plan may be the investors, creating this one of Vodacom’s more hitting issues. A simple solution to this problem can be discovering key buyers with substantial funding to benefit Vodacom even in a society with poor authorities.
Involving important investors in promotional advertisments that would be mutually beneficial may do this. Social Factors Southern Africans amount to about forty-eight, 601, 098 million citizens according to CIA community fact publication of a September 2013 census. The multiple races that make up South Africa happen to be limited, with 79 % of Dark Africans, 9. 6% white wines, 8. 9% colored, and 2 . five per cent Indian/Asian ethnicity (2001 census). There is selection of languages voiced within the region but the best three different languages include: IsiZulu with twenty-three.
82%, IsiXhosa with seventeen. 64%, and Afrikaans with 13. 35% popularity and English in 8. 2%. South Africa’s most widely identified religion is usually Protestant at 36. 6%.
The amount of S. Africans living in rural areas has fallen by 10% since 1994. Today, 62% in the population hails from urban areas, which has a 1 . 21% annual level of modify. The remaining populace that hails from rural areas could pose as a danger to the selection in consumers.
38% with the population could lack the appropriate necessities to use Vodacom. Furthermore, this market also includes the highest assortment of segregated teams. A solution to this problem is to investigate what resources are available in the agricultural areas of course, if they have the proper technology to acquire Vodacom. Vodacom could in that case depict the largest target market in this particular group trying to better situation their brand to meet these types of consumer would like. Vodacom will not want to limit the range of potential clients due to in which certain clientele live.
Furthermore, Vodacom could maximize income if it manufactured its merchandise available to make use of all of S. africa, regardless or perhaps rural or urban setting. Post-Apartheid S. africa remains divided. Amongst these dividing elements is male or female, geographical location, and many noticeably can be race. If any one of those groups is not properly targeted, Vodacom risks losing a large percentage of potential consumers.
To avoid having this challenge, Vodacom should universally industry its item to all targeted consumers successfully. Because South Africa has numerous dividing lines, it is important that Vodacom leave out any kind of group in order to maximize earnings. International Factors Over the past decade South Africa offers reduced the amount of tariffs.
The effect of reducing tariffs is more competition and reduced cost structure inside the industry. Because Vodacom applied the 1st mover benefit when going into the Southern African industry, they can use the tariff improvements as an edge. If Vodacom can continue to generate their item cheap and readily attainable the tariff reduction may just help the company improve profits. Monetary Factors The CIA universe database reviews that South Africa is a middle-income, emerging industry with an abundant supply of all-natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the fifteenth largest in the world.
Even though the country possesses modern system that support a relatively efficient distribution of goods to key urban centers throughout the area, some parts retard expansion. GDP droped nearly 2% in 2009 nevertheless has retrieved since then which is growing for a price of 2. 5%. Unemployment, lower income, and inequality remain challenging, with recognized unemployment at nearly 25% of the employees.
South Africa’s economic plan has dedicated to controlling pumpiing, however , the has had significant budget deficits that limit its capability to deal with pressing economic complications. As our economy declines that decreases how much business for the company, which usually directly impacts Vodacom. Now, in the age group of 15-25 is a 49% unemployment level, so they are not necessarily the bulk of the target industry.
This can influence Vodacom’s foreseeable future sales. In the event youth below 25 is unemployed how will they have the ability to purchase goods from Vodacom? There must be a wide range of products open to meet the needs of every single viable customer option.
Current Target Market Coming from analyzing Vodacom’s commercials and demographics the current target market may be the developed marketplace, specifically the white Southern African adult in larger income teams age range 30-54. The initially two ads represent a campaign that relates to the rugby followers, which is especially popular among people of Afrikaan descent. These two commercials concentrate on player twenty three and a rivalry between Elton and Jan.
Using the Rugby athletics ties in groups that could have normally been divided the restrictions. The language during these two ads is also a key factor in examining the current target market. The Afrikaan language was 13.
5% of the population in a 2011 census, Zulu comprised twenty-two. 7% and Xhosa composed 16%. The second commercial is of interest the older Afrikaan viewers due to the Afrikaans singing experience Robbie Wessels.
Another element that leads to the target marketplace is the third commercial. This industrial is two of the half a dozen commercials which includes black South Africans. This commercial especially makes notice of the deficiency of innovation within South Africa “we been having it! “. The business is based around the dark-colored South Africa official assuming he is up-to-date with technology and communication, when in fact he is a single step at the rear of Vodacom, the primary cellular network. Furthermore, that they specifically chose one of the most popular Kenyan actors Charles Bukeko. Having a widely known superstar in their business brings much positive focus on their company.
The white-colored South African adult grow older 30-55 is definitely the current marketplace of Vodacom, which simply counts intended for 8. 9% of South Africa. In my opinion this target market is significantly too small , leaving a large number of potential consumers to be drawn by rivalling cellular companies. Current Company Positioning Vodacom is known in South Africa as the leading cell company. The company also desires to15325 increase the range of 3G foundation stations within South Africa in order to reclaim all their unhappy customers and provide a far more efficient services around the country.
Vodacom is recognized as a prime service featuring innovative and accessible products. On a brighter note, the rugby person 23 represent two opposing views centralizing and using of all preceding conflicts due to a country extensive sport. These kinds of campaigns offer a sense of understanding the regional population, and supply trust and admiration through the local human population and in returning instill these types of qualities in Vodacom. Vodacom’s brand consciousness is increasing from these tactics of appealing to the best rugby lover.
This is among the many ways Vodacom has combined the country in which they run. Recommended Target audience and Manufacturer Positioning From a centered analysis of the current target market and brand positioning all of us recommend to vary both the target audience and brand positioning. My recommendations can expand the prospective market in order to extend potential outreach and profitability. The present brand placing offered essential Vodacom manufacturer strengths, but we recommend more important factors for a more appropriate brand positioning.
The newest target market is South Africans ages 15-55. We also recommend three specific focus on segments within this target market. Initial, Vodacom should certainly target light and dark South Africans.
Second, the corporation should also goal business adults and businesses, ages 25-55. Lastly, all of us recommend concentrating on the youngsters, specifically technically savvy youngsters, ages 15-24. The previous Target audience was concentrating on a small percentage of South Africa. Vodacom should take full advantage of the diversity within just South Africa, broadening their target marketplace in order to increase the full potential of the company and its profits. Targeting these kinds of a small percent of the population gives means for factors, just like high lack of employment in the youthful generation, to generate an incremental difference in profitability and success.
Furthermore, black Africans account for 79% of the total population, and even though a larger concoction of this percentage represents the low class, there may be still a definite amount of market potential within this segment. Vodacom should certainly branch out its current target market from the upper class, which can be significantly Caucasians at around 10% of the population, to the different industries found in the developed and developing kinds as well. Specifically, in the designed sector we recommend Vodacom target corporations and organizations alike therefore taking advantage of this kind of untapped market by offering unique “corporate” discounts to those qualified.
The produced market consists of high-end organization adults that incorporate the innovative individuals that are involved in current societal trends. Lastly, the tech smart youth could be a large target market pertaining to Vodacom. The tech experienced youth from ages 15-24 comprises 20. 6% of South Africa’s population.
Although nearly 50% of this category is jobless, the remaining 50% give chance for Vodacom to generate a life-long customer/supplier marriage. This target market is innovative and looking forward to the latest technology to come out. The current marketplace should be broadened to the producing, developed and youth tech savvy marketplaces to reach complete potential and profitability.
Company Positioning may be the second category that needs to branch out from Vodacom’s current positioning. The current branding location needs a tiny adjustment adding global manufacturer as a primary factor in company positioning. Possessing a strong global brand provides an impressive competitive benefit and most important a strong and positive company image.
Vodacom needs to concentrate on letting the client know what and who they are: “South Africa’s leading cellular network, with impressive, affordable, and accessible products, tailored to the needs of any one Southern African customer. ” Following, Vodacom need to deliver this message throughout the right stations, which will be the next: Sunday Occasions, Daily Team, and Rapport. Another channel should be promotions for buses that travel in Cape Area, the following must be used: Algoa bus firm, Baz Bus, and Greyhound. A third funnel that should be applied is popular international airports throughout South Africa: Voted top rated 3 in popularity I like to recommend Johannesburg/Tambo Airport terminal, Cape Community International Airport, and H N Verwoerd Airport.
The above channels will concurrently and effectively target the developed, growing, and scientifically savvy youngsters. Another crucial factors had to reshape Vodacom’s brand placement is the method customers watch their products cost. We suggest that Vodacom generate it very easily known and accessible for the public that they offer a various product choices with a multitude of prices that may be tailored to the needs and means of anybody customer. We recommend Vodacom promote this kind of to the open public by incorporating the flexibility in prices in adverts. Marketing Mix Product Vodacom must have top of the line and most technologically advanced, but accessible products.
This product should have features which provide opportunities to communicate. Such features include: lengthy distance calling, chat possibilities, group sending text messages, video calling, picture/video messaging, internet, and great 4G. Due to the 3 concentrate on segments (developed, developing, and technologically savvy), Vodacom must provide a line of products that focus on each marketplace. The line of cell phones need to consist of standard operating for low cost and less fresh consumers to innovative cell phones for the technologically experienced consumers.
First, the basic telephone product line, this line will probably be tailored to the Black South African. We all recommend focusing on this product just for this segment mainly because these consumers are not buying a high-tech mobile phone. Generally, this sector requires a basic, affordable, product that could satisfy everyday needs.
The fundamental phone series will include the following phones: The samsung company A107, Nokia 7020, and LG Revere. The advanced package will be targeted to the developed sector in South Africa. This will include cell phones which can be more fresh, yet are predominantly regular products, including: Samsung Journey and the Blackberry Curve 8530.
Finally, the very last category can target the technologically savvy youth. The product line would be the newest and best item available such as the Apple iPhone, The samsung company Galaxy, and Android. The merchandise must also give service ideas that accommodate every target market, which can be range in prices.
The service plans must help the range of market. The service strategies include the next: prepaid options; basic protection and info usage; moderate coverage and data utilization; unlimited coverage and data usage; and company level info usage. These types of coverage and data services plans are catered to the goal markets and segment.
Value Vodacom must be accessible and affordable for the target market. Because of the range in the target market, the merchandise collection must offer a range of cost structures to accommodate each part. I recommend Vodacom aggressively restructure their rates and the packages offered in order to gain total customer potential. The costs will follow the range in items from basic being cheapest, and most advanced product being higher costs.
This array of product costs attracts a variety of customers by different demographics. The basic mobile phone line products will range between 180. 00 – 470. 00 rands (19. 00-48. 00 US dollars). The modest phone series will range between 480. 00-760. 00 rands (58. 00-77. 00 US dollars). The advanced phone range prices will range among 770. 00-1800. 00 rands (80. 00-180 US dollars). By having multiple flexible selling price packages offered to the customer, Vodacom gains a sustainable competitive advantage. Place Being South Africa’s greatest cellular network the corporation has the resources required to to focus on having accessibility pertaining to consumers. The product must be located accessibly in each focus on markets location.
First, the corporate office of Vodacom should be located in Hat Town as well as the warehouse within just South Africa due to tariffs and taxes that can cause additional costs intended for Vodacom. Pertaining to the producing nation the Vodacom retailers must be located near the residential areas centers the business developed to boost brand awareness. Strategically inserting products near/at targeted clients work and social environment will inevitably increase buyer brand recognition. For example , I like to recommend the product channels to be situated in highly booming urban areas including Cape Town and Johannesburg. Shopping centers and University Campuses in these two cities is another place Vodacom should have goods in order to reach the most consumers.
These areas are often stopped at by the projected target client and offer a system for them to become familiar with the product ahead of deciding to acquire it. Last but not least, for the growing tech savvy age bracket, these fun storerooms will be located near universities, major and second schools. Some universities and schools Vodacom can place products will be the following: School of Cape Town, College or university of Western Cape.
Specifically, University of Cape Area is best known because student area as well as the presence of an international population. By strategically positioning their merchandise Vodacom should be able to increase their marketplace size and potential. Promotion Advertising is key promotional approach Vodacom uses to efficiently reach the point market. First, because athletics are highly idolized by Southern African citizens, I inspire that Vodacom continue to use key sports numbers as manufacturer representatives.
Vodacom should start a promotional campaign that focuses on having Southern region African movie star spokespersons, including: Siphiwe Tshabalala famous sports player, Olympic bronze medalist, Llewellyn Herbet, Charlize Theron actress, and Candace Swanepol Victoria Secret Model. I would look into employing Olympic and rugby players in future ads, as well as the Exito Secret model Candace. Doing this would still unify the under prevalent variables. This could further reinforce the brand image of “unity” that Vodacom has worked so hard to attain. Second, I want to see Vodacom focus on advertising their constrained flexible grouped together price prepare.
Vodacom needs to gain consumers that would normally go to different cell phone carriers by making it does not only the finest cell phone company, but an inexpensive one as well. Advertisement Advertisements #1? Black female in backgroun and African descent male and feminine taking a issues iphone’s. This kind of advertisement can target younger segment age range 15-25 that are technologically knowledgeable.
Having a white and black person in the commercial will make sure that both contests are targeted. This advertisements will be shown in Aafrikan and British Advertisement #2? Any one of South Africa’s best soccer players– Stefan Bason, Kabamba Floors, Ryno Benjamin, Fabian Juries and Danwel Demas could enjoy the part through this advertisement, in addition to Candace Swanepol. Through this advertisement, I would like to see one of the players examining game results on their smart phone, just before getting on a flight using their hot Southern region African supermodel.
Key to this kind of advertisement is uniting all the target market segments through a prevalent South Africa celebrity. This advertisement is going to target the developed segment that is on-the-go and specialist. language Aafrikan and English language. Advertisement #3 Set in a rural environment, a woman is usually walking with others upon dirt road. The woman gets an urgent phone call causing saving her farm. I suggest Vodacom get this to advertisement important, as it goals the largely untapped inhabitants in countryside South Africa.
The cell phone of choice is a change phone, which in turn signifies a less wealthy target market. The setting is important because the call could be built even in a remote area (good cellphone service). Finally, it displays the importance of having a cellphone through Vodacom, because without having received her phone call some thing bad could have happened with her farm. Summary We suggest some within Vodacom’s target audience.
We would recommend expanding the latest target market by ages 30-55 to 15-55. By doing so, Vodacom will be focusing on an most up-to-date generation that may be technologically advanced and in addition has potential of growing. I would as well recommend that they will target not only the designed market, nevertheless the developing marketplace in South Africa as well. This is certainly a greatly untapped market that Vodacom would highly profit from if you take advantage of this opportunity.
We also advise that by re-positioning the brand, Vodacom can maximize sales and profitability. In conclusion, the new marketing mix provides a more accurate product, price, place and promo in order to gain a much more competitive benefit and become more fortunate within the market.