Unit 2 Assignment on Marketing Strategy of EE Limited
Diploma in Business (Marketing)
Unit Number and Title
Unit 2 Assignment on Marketing Strategy of EE Limited
EE limited and related essential marketing strategy and concepts are discussed through this report. Current market strategy of EE has been evaluated through the extended marketing mix. better marketing strategies and tactics are recommended through the extended marketing mix tool and its components. The current market situational analysis has been done over EE limited through PESTLE analysis and SWOT analysis. Internal analysis of the organisation is also conducted. Marketing objectives and related goals of EE limited are discussed through this document. STP strategy has been conducted over EE limited.
Compare how EE Limited and another competitor of your choice apply the various elements of the extended marketing mix to the marketing planning process to achieve business objectives
Within the marketing planning the extended marketing mix has been an essential for the marketing planning and its success. The marketing mix has been an important factor within the marketing planning process. The combination of the marketing activities is dependent on the tools of the marketing. In the first stage of the development of marketing mix it has been conducted on four Ps. The four Ps of the marketing mix were used to define the tools which are related with the product. Later with the increasing demand of the service sector the marketing mix has been developed with other Ps which are related to the services. These Ps are called as the extended marketing mix. With the marketing mix organisations can review and define the main issues within the marketing planning. The tools and components within the marketing mix used for identify these issues which can be effective for the marketing planning. (Worley, and Lawler, 2010)
Marketing planning of EE limited:
- Services/ Product:product has been referred as the set and the combination of different products which are purchased by customers. The products or the services are used to attain the satisfaction degree of customers. The EE limited has been a service provider of the voice transfer. The product has been used for connecting the people with each. Another service delivered by EE Limited is the internet service. In form of 4G and 3G the internet connection is being provided by the service provider. The customers purchase a contract plan for the internet service or sim card over the voice call services. (Murphy, 2010)
- Price:it has been the main thing in the determination for buying. The 4G plans have more prices than the 3G plans. The premium is demanded for the premium services.
- Place:the place is the methods which are used for delivering the product or services to the customers. There are three methods which are used by the EE limited to make the marketing of the products – through intermediary, sales staffs, and direct methods. The organisation has been using the company websites for making the services available to the customers. The customers can chose their preferred services and products like phones, other mobile and internet hardware accessories through the website. (Worley, and Lawler, 2010)
- People:the personnel and their skills are important for the success of EE limited. The managers, staffs, technical staffs etc are the people within the EE limited. The skills and the competencies of these staffs are the representation of the services and products of EE limited.
- Process:process is the steps which are followed in providing the services. EE limited maintains their processes and monitor the services for making easier access of customers.
- Physical evidence:the physical evidence creates an image of the organisation and its products in the mind of the customers. Through the constant flow of the services EE limited make better access of the services. (Murphy, 2010)
- Promotion:through the promotional tools the organisation maintains the customers relationship. EE limited uses internet tools for their promotional activities.
The marketing mix of Virgin Group:
Virgin Group is doing business in the similar sector like EE Limited.
- Product:different features of phones are offered by the Virgin Group. The organisation also offers communications plans for mobiles to the customers. There are wide range of products apart from the mobile communications which are placed by Virgin Group. (Wilson, Zeithaml, Bitner, and Gremler, 2012)
- Prices:the prices of the virgin mobile are of medium price. The prices of the plans are dependent on the services and quality offered.
- Promotions:Virgin Mobile makes different approaches in their promotions. Through the internet, T.V., magazines, etc they place their products to the customers and markets.
- Place:in order to make their presence Virgin mobile makes their presence within the internet websites. They have official websites and stores. (Wilson, Zeithaml, Bitner, and Gremler, 2012)
- People:Virgin Group has been employed the personnel with higher skills and potentialities. The personnel and the staffs of the Virgin are trained with higher skills to provide better services to the customers and clients. The organisation has been offering rewards and incentives to the staffs to maintain the customers satisfy. (Murphy, 2010)
- Process:the processes of providing services are monitored by the virgin management. As the organisation is operating in different sectors the process of the service is complex.
- Physical evidence:the physical evidence of Virgin mobile has been developed by including skilled staffs for attracting the customers and convincing them to buying the services. (Wilson, Zeithaml, Bitner, and Gremler, 2012)
Through the marketing mix both the organisations Virgin Group and EE limited consider their drawbacks as well as strengths within the marketing mix components. On analysing the requirements for improvements in the products, services, promotional activities etc the marketing mix components are developed. The marketing mix tool is useful for the having better analysis over the activities which can be taken into accounts in order to achieve the marketing objectives. EE limited conducts the marketing mix to include proper strategies within the marketing planning processes. Through this analysis the organisation can have better ideas over the marketing of the services such as making convenient approaches in the internet portals for placing the products into customer’s intellectual. (Wilson, Zeithaml, Bitner, and Gremler, 2012) Through the enhanced technical implementations within the websites the organisation have provide better access to the customers or easier navigation. Virgin Group has been organising the better promotional activities through adding current technical tools in their marketing planning to obtain the organisational structure.
Produce a marketing plan to meet EE’s marketing goals and objectives
Through this report the marketing environment are discussed. With the analysis of the internal and external environment EE limited can have better identification over the current market situation along with current market opportunities and future market strengths. EE limited has introduced the 4G technology within internet services by evaluating the slower market growth of 3G technology and the demand of it and the rising demand of the 4G network services. Successful implementation of the 4G network and providing high speed services in different remote areas as well as improving coverage area service will be efficient for EE limited current market strategy.
EE limited was established on April in the year 2010. In Britain the organisation was the first digital communication organisation which was providing the advanced technology 4G services than the 3G. The organisation was the result of the two main players of the telecommunication industry. One is T-mobile and other one is Orange. With the merger of these two organisations the EE was formed. The organisation has more than 575 stores for delivering their services and products. The main motto of the organisation is Everything Everywhere. Within these four years EE limited has made investment over £1.5bn. It has been estimated as the largest provider of the telecommunication within UK.
Current market analysis:
Internal environment analysis:
- Financial analysis: in the yaer of 2013 EE had the revenue of £6.5 million which was decreasing than the 2012. With the investments in the 4G and 3G later help the organisation to increase their revenues.
- Value chain analysis:in current situation EE Limited has more than 700 retail stores and also official website. Within UK it has been considered as the biggest telecommunication organisation. The high-tech retail stores are attracting the customers.
- Product portfolio analysis:the BCG matrix of the organisation has been considered as the analysis tool for the product portfolio of the organisation. The 4G services and products of EE are the stars as these has help the organisation to bring new customers in the 2013. It indicates the increasing market growth of the organisation. Within total 4G market the number of 4G subscriber are more than 4.2 million which is considered as the 46%. In order to maintain the position the organisation has to consider the sufficient cash flow which can support the 4G technology through proper investment. With the slow market growth of 3G services the 3G technology of EE can be referred as cash cow. Without making greater amount of investments on 3G the organisation can have stable amount of revenues from the 3G. (Wilson, Zeithaml, Bitner, and Gremler, 2012)
- Political factors:there are different issues which are related to the services of the telecommunications in the urban areas of UK. The surveys of the UK government has been showing that the though the 76% satisfaction has been shown over the coverage, the organisation has been facing diminishing of the customer satisfaction of 67% in the rural areas. The UK government has been investing over the coverage providers of telecommunication in collaboration with Ofcom to helping them in providing coverage in urban areas. (Morgan, Katsikeas, and Vorhies, 2012)
- Economical: after the recession in the 2009 within U, the government has taken action plan with including VAT for forcing the organisations contributing in the national economy. It also make significant impact over the customer’s spending on a service. After the recovery from the recession period the telecommunication industry has been flourishing within UK as the GDP has increased in 1.9% in 2013. (Morgan, Katsikeas, and Vorhies, 2012) As the household income has been increased the consumption of the mobile services are also increased.
- Social factors: with the increase in the young generation and their usages in the Smartphone as well as social networks and other parts of the internet like streaming websites, text messages, different types of online applications for sharing large files the telecommunication industry is having greater benefits for approaching these customers.
- Technological factors: as the goal of EE limited is to provide better services to the customers in the telecommunication field the organisation has been greatly impacted with the current technological factors within UK. (Morgan, Katsikeas, and Vorhies, 2012) The objectives of the organisation are the enhancement in the network coverage within UK through network services. By analysing the requirements in the current market the organisation launched LTE 4G network at reduced cost.
- Legal factors: the UK government and Ofcom have set rules in the telecommunication by giving the empowerment to the customers on withdrawing the contract without giving any penalty.
- Ecological factors: within the industry of telecommunications there are noticeable environmental impacts and constraints. The usages of the services, infrastructure development for better services are the related constraints within the field. (Morgan, Katsikeas, and Vorhies, 2012
- Strength: the main strength of EE has been their great coverage of network. It has been the biggest network access within UK as having free roaming within two operators. The largest numbers of retails are operated by the organisation within UK. 4G LTE services are also effective for the growth. Ten 4G has been providing better market growth by targeting the huge population growth of UK. (Berthon, Pitt, Plangger, and Shapiro, 2012)
- Weakness:different technical faults are impacting over the brand images and customers perception over the brand. The customer satisfaction has been negatively impacted by the customer satisfaction. It is negatively impacting over the revenue generation.
- Opportunities: the telecommunication industry is facing greater amount of market growth in the UK. The establishment of MVNOs has been giving greater platform within the business growth and opportunities in b2b market. Apart from these the growth of the Smartphone owners and increasing use of the internet as well as subscribers are providing opportunities. (Berthon, Pitt, Plangger, and Shapiro, 2012)
- Threats:the future growth of the 4G is leading to the better market competition and increasing the number of the market competitors. This has been imposing as threat for EE. The threats are also increasing within the increasing incidents of hacking and other illegal internet activities.
By analysing the internal and external marketing situations the organisation has developed their objectives. They are determined to provide better services through implementing modern IT technologies and enhance the customer experience with the brand. Through SMART technologies the organisation can set further goals and objectives. They can increase their customer base for increasing the profits. (Berthon, Pitt, Plangger, and Shapiro, 2012)
In the marketing strategy the organisation has used the differentiation strategy for placing unique image of the brand through its brand name. The brand partnerships with the Wembley Stadium are also an effecting branding strategy made by EE limited. The stadium has been covering the EE advertisements. Apart from these brand can better approach to the different marketing tools for better marketing strategies. (Kotler, Burton, Deans, Brown and Armstrong, 2015) Through direct selling the brand can approach to different households as well as broader market of B2B. On having better approaches to the B2B market the organisation can enhance their coverage. They can promote consumer friendly plan and business plan for attract clients from both the market segments. Collaboration with the social media channels is also effective to place the brand image within a wider customer base.
Segmentation, target and positioning (STP)
- Segmentation: it is the process of dividing the wider market within smaller segments for identifying the specific characteristics and the buying behaviours of the buyers in particular segments. There are different criteria of segmentation such as behavioural, geographic, demographic, psychographic. By analysing the social status, income level, economic status the demographic criteria is mostly used for segmenting the consumer market. With these criteria EE can have better acknowledge over the buyer’s capability in buying the plans. (Kotler, Burton, Deans, Brown and Armstrong, 2015) Behavioural segments can evaluate the customer’s perception over the benefits in the plans like STD, text message etc and the network speed in internet plans.
- Target: for gaining proper position within the market of telecommunication the EE organisation have to target the market through making proper marketing mix for that particular market. On targeting the consumer market EE can target the consumers from age 20-45 ages who are mostly interested in the internet and voice services. In the marketing business the banks and other similar corporate business field can be targeted by EE. (Sarkar, and Singh, 2010)
- Position:creating mental image is the main feature of positioning strategy. Through the positioning strategy the organisation can differentiate them from the competitors and place them in the leading position within telecommunication field. Through perpetual mapping the positioning strategy can be developed by EE. (Stark, 2015)
Tactic and action
The customers can be attracted through proper tactics and actions through marketing mix. The organisation should provide plans that are more flexible for the customers. Through flexible services and plans, the mass consumption can be increased. The organisation should provide facilities over video calling for gaining more profit through 4G connections. Long termed beneficial relationships can be encouraged through better services and wider connectivity.
Penetration pricing approach would be significant for the 4G plans and handsets. Through this strategy of pricing the organisation can set lowest price for penetrating the product in the market. This will impact on the buyers behaviours and greater impact on the demand. (Casadesus and Ricart, 2010)
Direct and quick access through internet must be given by EE to the customers for increasing the convenience. Increase of the retail stores are also effect for approaching wider market and increasing the availability of the products. Through retail stores EE can gain attention of local customers.
Promotion activities are essential in the marketing strategy. Surveys and interviews with the customers are needed for gaining the perception and further requirements of the customers. Social media interactions are essential in current situation with the gaining importance of internet usages. Direct sales through sales representatives can increase customer values. Sales promotions can also be done through support campaigns. Through sample plans or discounts in new plans the customers can be attracted. (Stark, 2015)
The people and the staffs who are involved within the technical department of EE must be trained with the advance technology knowledge for the advancing the service quality and implementing greater machines for increasing the coverage area. The management staffs should be trained for improving the management systems. Incentives and rewards must be provided to improve their motivation.
Processes of internet connection can be improved through providing easier access to the customers. (Stark, 2015) The easier way to deliver their services can increase the customer attention.
For establishing the marketing strategies the organisation should develop their budget over the plans. Before calculating the budget the organisation should make analysis over internal environment to have better acknowledgement over the financial capabilities of the organisation in order to implement the tactics. For having better results through marketing the services and products EE should involve the shareholders within the budget planning process. Budget of marketing strategy can be developed through using the ROI. (Casadesus and Ricart, 2010)
In order to maintain the marketing strategy EE should place control of the budget and the tactics over the achievement criteria of the organisation. Through minimising the costs in specific areas would helpful for minimising the expenses. Monitoring, controlling recording all the financial information would be needed to have better control over the budget. The problematic areas where the costs can be reduced should be identified. The income and the expenditure should be monitored. The quality of the services including both 3G and 4G must be monitored for sufficient amount of financial support. (Sarkar, and Singh, 2010)
Though EE has been a reputed brand and has made its presence within the UK there are different constraints which are negatively impacting on the services quality of EE. As a result the brand image of EE limited has been negatively influencing in worldwide measures. Marketing strategies are needed for EE limited in order to increase the current marketing position. With the increase use of the mobile and technology evaluation EE limited has different potentialities in the current market to make itself in the leading position in worldwide market. Different issues which are associated with the coverage and services of EE limited must be reduced by proper evaluation of the marketing mix.
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