Question

CASE STUDY

NEW LINE IN MOBILE PHONES

One of the oldest principles of marketing is that sellers may sell features, but buyers

essentially buy benefits. This is a distinction sometimes lost on technology led organizations,

and the service sector is no exception. Recent experience of the UK’s largest

telecommunications company, Della’s, illustrates how crucial it is to see service offers in

terms of the benefits they bring to customers. The company was aware of extensive research

which had found high levels of confusion among purchasers of mobile phones, with a

seemingly infinite permutation of features and prices. With four main networks to choose

from, dozens of tariffs and hundreds of handsets, it is easy to see why buyers sought a way of

simplifying their buying process. Throughout the 1990s, Della’s had positioned its UK

network as superior technically to its competitors. Advertising focused on high coverage rates

and call reliability.

Della’s was the UK's most popular mobile phone operator, with almost eight million

customers, including 4.2 million Pay as you Talk customers. It had opened the UK's first

cellular network on 1 January 1985 and was the market leader since 1986. Della's networks in

the UK - analogue and digital - between them carried over 100 million calls each week. It

took Della’s more than 13 years to connect its first three million subscribers but only 12

months to connect the next three million. Della’s had the largest share of the UK cellular

market with 33% and had more international roaming agreements than any other UK mobile

operator. It could offer its subscribers roaming with 220 networks in 104 countries.

Despite all of the above, Della’s was aware that although it was recognized as an extremely

strong business in the corporate marketplace, it was not so strong in the market for personal

customers. Research indicated that personal buyers bought Della’s for essentially rational

reasons rather than having any emotional attachment to the brand. The success of the

competing Digital network, which had developed a very strong image, was a lesson to Della’s

that many people did not understand many of the product features on offer, but instead

identified with a brand whose values they could share. Della’s recognized that it needed to be

perceived as adding value to a consumer’s lifestyle. Given the increasing complexity of

product features, positioning on technical features was likely to make life more confusing for

personal customers. An alternative approach was needed which focused on image and

lifestyle benefits.

QUESTION

Critically analyse the information provided on Della’s position in the market, and design a marketing plan to strengthen Della’s visibility and their competitive advantage.

1. Give an overview of the phone industry,
2. Give the competitive analysis of the company,
3. Give a marketing mix strategy
4. State the marketing mix, also provide the consumer’s analysis.
5. Be sure to identify the principal benefits of your proposed marketing strategy. You are also required to design a promotional plan that would effectively capture your target market.
6. Provide any recommendations to Della’s telecommunication company.

Thanks for your assistance!!!

Answer 1

Q 1 ) Critically analyse the information provided on Della’s position in the market, and design a marketing plan to strengthen Della’s visibility and their competitive advantage.

ANS : Della’s was the UK's most popular mobile phone operator, with almost eight million customers, including 4.2 million Pay as you Talk customers. It had opened the UK's first cellular network on 1 January 1985 and was the market leader since 1986. Della's networks in the UK - analogue and digital - between them carried over 100 million calls each week. It took Della’s more than 13 years to connect its first three million subscribers but only 12 months to connect the next three million. Della’s had the largest share of the UK cellular market with 33% and had more international roaming agreements than any other UK mobile operator. Della’s was aware that although it was recognized as an extremely strong business in the corporate marketplace, it was not so strong in the market for personal customers. Research indicated that personal buyers bought Della’s for essentially rational reasons rather than having any emotional attachment to the brand. The success of the competing Digital network, which had developed a very strong image, was a lesson to Della’s that many people did not understand many of the product features on offer, but instead identified with a brand whose values they could share. Della’s recognized that it needed to be perceived as adding value to a consumer’s lifestyle.

The business owner and her management team develop marketing plans to maximize the revenues that result from this advantage. Long-term success in business requires building a sustainable competitive advantage . During the annual planning process these are the  marketing plan to strengthen Della’s visibility and their competitive advantage.

1. Align Products with Customer Needs

2. Attack New Markets

3.Clearly Express the Advantages

4.Expand Distribution Channels

5.Emphasize Customer Service

Q 2 ) Give an overview of the phone industry, Give the competitive analysis of the company, Give a marketing mix strategy , State the marketing mix, also provide the consumer’s analysis ?

ANS : Overview of the phone industry -

Mobile phone had become the daily needed element in every ones personal life. It had started its growth slowly. Initial days the major part of the delivery was from the most big electronic equipment producers’ countries like China. Now there was a heavy drift of manufacturing from China to India. India was even producing most cost effective and low cost handsets. Research group ‘Garter’ had made some research to identify the most reliable and best mobile producing and manufacturing company. With just 12 months of its research it came to a conclusion that 68% of the units are produced by India. It had also forecasted that this year also it would be on high scales in manufacturing.Until 2005 India did not even have a single unit for manufacturing. Due to its low cost of maintenance and cheap labor availability country was able to produce more stable products with more cheap costs. This made a clear way to production to increase dramatically. 31 million mobile phone were produced in the year 2006 according to the Granter reports. Each mobile phone on an aggregate had a street value of US $5.Garter also strongly believes that there will be a consistent growth of nearly 95 million handsets. It also made a prediction by reconciling the history and estimated the growth rate in terms of mobile phone production in market will be of 25%.

Competitive analysis of the company -

Della’s was aware that although it was recognized as an extremely strong business in the corporate marketplace, it was not so strong in the market for personal customers. Research indicated that personal buyers bought Della’s for essentially rational reasons rather than having any emotional attachment to the brand. The success of thecompeting Digital network, which had developed a very strong image, was a lesson to Della’s that many people did not understand many of the product features on offer, but instead identified with a brand whose values they could share. Della’s recognized that it needed to be perceived as adding value to a consumer’s lifestyle. Given the increasing complexity of product features, positioning on technical features was likely to make life more confusing for personal customers. An alternative approach was needed which focused on image and lifestyle benefits.

marketing mix strategy & consumer analysis -

Marketing Mix of any brand /company which covers 4Ps (Product, Price, Place, Promotion) and explains the marketing strategy. As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. which have helped the brand grow. Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies.

In telecom industry to for serving low income consumer in rural and urban areas there is lot of hype in the mobile telecommunications to make their market .There are more than 2.1 billion consumers at the very ‘base of the economic pyramid’, with per capita incomes of less than $1,500. Among all those more than one million which is equivalent to one sixth of world population have $1 income as per capital income, and very few of these have their mobile phones at present. There is also a lot of talk about the social and economic benefits that an increase in mobile penetration can bring to the poorest countries – a recent study by London Business School found that, in a typical developing country, a rise of ten mobile phones per 100 people boosts GDP growth by 0.6 percentage points.

Q 3) Be sure to identify the principal benefits of your proposed marketing strategy. You are also required to design a promotional plan that would effectively capture your target market. Provide any recommendations to Della’s telecommunication company ?

ANS :

There are many marketing benefits regardless of whether you are marketing to businesses (B2B) or consumers (B2C).

1 ) increases visibility of your brand

2) Develops lasting relationships with your audience

3) Improves brand awareness and recognition

4) Creates loyalty and trust, with both your current customers and prospects

5) Helps you to build authority and credibility

6) Positions your business as an expert in your industry

7) Generates traffic to your site to improve lead generation

8) Opens a channel of communication through social shares and comments

9) Helps your customer move through the purchase decision more quickly

10) Provides value with no strings attached

Product promotional strategies inform, persuade and influence the consumer’s decisions. It mainly seeks to develop primary and selective demand. While primary demand mainly focus on the desire for general products, selective demand puts more focus on the desire for selective or particular products.One of the biggest challenges that you face as a marketer is to reach your target audience effectively.

There are three Product Promotional Strategies That Guarantees Success

1 ) Start Using Social Media

The use of social media as a promotional strategy is direct marketing at its best. Social networking platforms like Facebook, Twitter and Google+ have over millions of users visiting on a daily basis, and this make it easy for a business to get in touch with people out there, even to a personal level.

2 ) Using Mail Order Marketing

The first thing you need to note is that your business is still alive because of the regular consumers who come to your business. Once customers are fully engaged to your products, they will always want to buy from you. However, most businesses tend to make the mistake of avoiding customers in a way; they do not involve customers in sharing information about what they feel concerning a product in question.

3 ) Product Giveaway is a Perfect Technique

Product giveaway is a great promotional strategy that guarantees success for an enterprise. Here, you can give customer products as samples. If you are dealing in products like food and other household goods, giveaway could be a great technique to get people engaged to your products. It is important to note that this is a great technique to entice your target audience to purchase from you.

recommendations to Della’s telecommunication company

As we all know that Product promotional strategies can attract new customers to your business and makes it easier for your business to get bigger sales by combining items into special package offers. so I recommend five ways to improve Della's telecommunication compant to focus on customer :

1 ) Make a top-down commitment to customer centricity

2 ) Start tracking emerging customer-related metrics

3) Personalize service with true omnichannel experiences

4) Resolve service issues faster

5 ) all product should be easily adopted & easily understand by customer so make the product to keep this in mind.