Marketing Essentials of EE Limited
Marketing essentials can be defined as the utilization and application of the different types of elements that can help any organization to achieve the competitive advantage. In order to achieve the best method of marketing and grab the attention of the customers, it is important for the organization to implement the most effective marketing mix. In this assignment, the marketing essentials of the EE limited that is one of the biggest telecom organization in the UK. They have effective operation by which they have achieve the attraction of most of the business organization but they have lesser focus on the individual customers. Therefore4, it is important for the organization to make an effective marketing essential to develop the profit level of organization.
This assignment is intended to describe the marketing essentials of EE limited that is one of the mobile phone companies in the UK. Any market must consists the entire potential customers who are involved in sharing the particular needs and wants of them and in exchanging products for satisfying the needs and wants. In order to satisfy the needs and wants of the customers, marketing is the most effective because marketing is the management process that can help any organization to identify, anticipate and satisfy the requirements of the customers. In case of any free market, customers’ generally determine the demand for any product so any organization must consider their needs while making marketing plan for their organization. Along with that, organization also selects an effective pricing strategy according to the need of the customer to achieve the optimum success.
According to the common definition, marketing refers to the process of the management of identification, anticipation, maintenance along with the satisfaction of the consumers through the fulfilling of their requirements (Mihart, 2012). On the other hand, marketing also signifies the exchange of goods and services among a number of individuals. Marketing can be applied both for the profit as well as non-profit sectors for promoting the products and services as well as to deliver them to the target audiences. Nowadays, marketing is considered as one of the well known professions, too. Through the use of this model, the ideas related to the relationship between different objects are explained.
There are some specific steps regarding the marketing processes through which exchanges of the services and products are done successfully. These steps are the identification of the demand of the market and target audiences, planning of a customer-centric marketing design, develop an integrated marketing assignment with improved value, create fruitful relationship with the customers along with develop the quality of customer loyalty through earning profit. However, Peck et al. (2013) have stated that the needs of the customers may arise related to physical, social and personal perspectives. Requirements for earthly elements such as foods, shelter, and clothing are considered as physical needs whereas affection and belonging are under social needs. On the other hand, knowledge, learning and perceptions are granted as personal needs. All these are significant factors in the process of marketing.
The roles and responsibilities of the marketing manager of EE Limited re multi-dimensional. Operating as one of the leading telecom companies in the UK basis, the prime responsibility of the manager of this company is to focus on the needs and capacities of the target audiences. Buil et al. (2013) have identified that the marketing manager of EE Limited needs to create an effective marketing plan for the organisational benefit. Second, the person needs to develop customer service strategy through management of the quality of the brand. However, as argued by Simons (2013), the most necessary skill is to have creative and extraordinary thinking efficiency in the marketing manager. Even, through fruitful customer service, this person can perform own role as the most effective one.
In the context of the EE Limited, the marketing as well as non-marketing decisions are taken through interrelations with different functional departments. The roles and responsibilities of these departments are involved in serving as one of the leading telecom companies in the UK (Halinen, 2012). The marketing department takes the decisions regarding the promotional activities of the products and services. On the other hand, setting the price of the products, their distribution and measurement of the customer satisfaction are also done by the human resource department (Monczka et al. 2015). Identification of the enlargement of global market helps to improve the quality of services such as 3G and 4G services are also under sincere concern (ee.co.uk, 2016).
The value of the marketing among the audiences can better be identified in some necessary activities of EE Limited. Gronroos and Voima (2013) have stated that these values are to inform the customers about the latest activities of this company, understanding the customer expectation and link it with the quality of the products and services, development of fruitful behaviour with the service users along with earning financial profit for the organisational benefit. As EE Limited has been operating as an influential telecom company in the UK, it is quite important for the management of this company to maintain its marketing role in order to compete with other competitors such as Vodafone, O2, Three and some others in the competitive global market.
Through the development of the effective interrelationship between different functional departments of EE Limited, the sense of trust generates and improves among them. This is helpful in driving the organisational activities in the most effective way. On the other hand, Shani and Chalasani (2013) have stated that EE Limited is also able to improve the quality of employee efficiency through this positive connection. The conflict among the employees regarding their functional duties and responsibilities is eliminated sufficiently. The enrichment of the quality of the services as well as products is benefitted through this. Even, this interrelationship also helps in enhancing the organisational relationship with customers through providing an improved quality services and products.
Task 2a: Comparison between the EE limited and other competitors various element of the extended marketing mix to the marketing planning process:
As stated by McCarthy and Perreault (2011), marketing mix can be defined as one of the tactical and controllable marketing tools that can help any organization blend to produce the effective amount of response that they expect from the target market. This section is intended to demonstrate a comparison between the telecom operator O2 and EE limited. There are mainly 7 elements in many extended marketing mix are as follows (P3, M3, D2)
In the marketing mix, the product generally concerns the development of the appropriate product for the target market that can help any organization to achieve the competitive advantage. Here the offering mainly includes the physical goods or services. EE group one of the mobile network operator organizations that also provide internet facilities to their customers. In addition to this, they also provide IPTV services through the TV box. In order to provide effective services to the customers they utilize different types of radio frequency from 1800MHz to 2600MHz (Hoovers.com, 2016). Along with that, they also provide HD calling facilities and broadband facilities to their customers. However, the ser4vice range of the O2 is different from the EE limited. O2 has entered into the financial services and launched O2 money. Along with that, O2 provides both the fixed line and broadband facilities to the customers and in order to compete with their competitors they have launched fibrotic broadband facilities to the customers. The radio frequency used by O2 is less than the EE limited and they utilize radio frequency ranged from 900MHz to 1800MHz.
Place is mainly concerned with all of the decision that are involved in providing the right product to the target customers (Malhotra et al. 2014). Any product reaches to the customers through different effective distribution channel. In order to sell their services to the customers EE makes link with different stores that are considered as the concession within stores. Along with that, they also expand their business in retail and announce trial stores that sell the products of the brand, accessories and services. On the other hand, O2 sells their services by making a joint venture with different retail brand and they also has implemented mobile wallet application to sell their services.
Along with the development of the product and price, it is also important for the organization to develop an effective pricing strategy to sell their product to the customers. In order to set an effective pricing strategy, it is important for the managers to consider the level of competition in the market in which they want to continue their operations. EE limited follow a very low cost strategy to attract customers. They offer their handset plan at £19 per month. However, O2 also follow a low cost strategy but not as low as EE limited. They offer handset plan at £32 per month.
Promotional strategy of any organization generally concerned with telling the market regarding the appropriateness of any product. Promotional strategy of any organization generally includes the mass selling, personal selling and the sales promotion strategy. In order to promote their service to the customers they utilize both the offline and social media platform. They launched their first advertisements on the TV, four days after they have launched the 4G services. They also follow celebrity endorsement strategy and involve Kevin Bacon in their advertisements. They advertise their services on TC during the X factor. They also are sponsoring several events like British academy of film and television art award in the year of 2013 for promoting their organization. O2 only follow the sponsorship program like England rugby team and many others to promote their services.
According to Churchill and Iacobucci (2011), in order to get competitive advantage any organization must consider the people as the heart of the business who are responsible for the every element of the sales, marketing activities and strategies. In order to continue their organization effectively, O2 hired huge employees (21,850) and they motivate this huge amount of employees through effective motivation technique like flexible working time, incentive, appropriate remuneration Electra. On the other hand, the number of employee in EE limited is 15,000. Their employee is suffering from huge work pressure because in order to maintain this huge operation more employees are required.
It is important to develop an effective visualization of product it is important to critically consider the look and feel of the product or services because effective visualization creates the first impression of any product in the mind of customers. In order to sell telecom service packaging is not more important to attract customer to the organization. EE limited creates an effective visualization of their retail store. On the other hand, O2 mobile do not have any effective retail store so it is not applicable to them.
In order to achieve effective amount of success from the market, it is important for any organization to develop a habit by which organization can think according the positioning strategy of the customers. In order to attract customers to the organization EE limited follows price sensitive positioning strategy. On the other hand, O2 follow the functional positioning strategy.
Task 2b: Marketing plan:
EE limited is one of the British mobile network operators, division of the BT group and internet service provider. It was established in the year of 2010 as a joint venture between the Orange S.A and Deutsche telecom. They are the largest 4G service providers in the Europe and the largest mobile network operator in the UK, with 28 million customers. Their main services are the fixed lining, broadband services and mobile telephony. In addition to the mobile telephone services, they also provide IPTV services. With their effective strategy, they have grabbed the attention of the 98% population of the UK. In the current time, EE operates and own national 2G, 3G and 4G mobile phone networks in the UK. EE limited also has 700 retail outlets across the UK.
Current marketing situation analysis:
EE means everything everywhere. This organization has launched 4G network services in their organization in order to provide services that are more effective to their customers so they can reach to the maximum number of customers in the UK.
Mckinsey 7S model is very much useful to improve the performance of the organization that is possible by analyzing the internal environment of the organization.
|Strategy||They mainly provide effective coverage of their network in low price that makes their organisation successful in the market.|
|Structure||As EE limited is the big organization so they follow a matrix structure to achieve organizational efficiency.|
|Systems||All of the network engineers are involved to maintain the operability of the BTS and report their immediate supervisor. On the other hand, administrative staff maintains their operation and record it in computer so they can access it in the later time.|
|Shared values||The main shared values of their organization are there technical abilities that help them to provide services that are more specialized to the customers.|
|Style||EE limited mainly follow the participative leadership style so they can motivate their employee and resolve employee conflict in the organization.|
|Staff||Currently, EE limited have 15000 employees and they all are well capable to maintain their BTS operation so they can provide effective services to the customers.|
|Skills||In the EE limited, employees have effective technological and network related skills so they can provide effective services to the customers. On the other hand, marketing employee has good marketing related skills by which their organization can attract their potential customers.|
Table 1: McKinsey 7S model
(Source: Gerpott et al. 2010)
Several external factors create a huge impact on the operation of the organization. External factors can be evaluated by PESTLE analysis and Porter’s analysis.
|Political factor||Current political instability of the UK affects the performance of the EE limited in highest extent. Currently UK leaves the European union that creates a political instability in the continent that affects the future performance of the company. In the recent time, the government and has invested more than £150 million in the rural area of the UK that can be an effective opportunity for the EE limited (Hoovers.com, 2016).|
|Economic factor||Within the year of the 2008 and 2009, the economy of the UK came through a declining period that causes the augmentation of the VAT to 20%v and reduction of the national benefits. However, after the year of 2013 they feel an effective improvement in the economies. However, after leaving European Union, UK is liable to pay of £1.7 billion that creates inflation in their country that can negatively affected the operation of the EE limited.|
|Socio-cultural factor||Every customer possesses a different type of behaviour regarding purchase in case of the telecom market. According to a survey, it is seen that the young generation are tending to buy smart phones in highest extent (hoovers.com, 2016). Therefore, the teenagers have found a new way of communication through the smartphone. They are currently utilizing the social networking sites, free messengers and streamlining websites as a method of communication. Therefore, this may create a huge threat for the telecommunication organization.|
|Technological factor||Telecom sector is one of the parts of technology and their main goal is to enhance the network coverage by providing efficient services to the customers (Sarkar et al. 2015). In the current time, due to technological advancements, LTE-advanced 4G networks is launched by the EE limited that provides more effective services to the customers.|
|Legal factor||EE limited can face different type of legal issues if they buy spectrum in less price or buy a large amount of spectrum from the telecom regulatory board. On the other hand, in order to remove legal issues they are liable to provide effective services to the business organization as they promised before.|
|Environmental factor||Emission of the electromagnetic wave from the tower harms every living object, so they are liable to use a specific spectrum to minimize this affect.|
Table 2: PESTLE analysis
(Source: Laiet al. 2012)
|Threat of new entrants||In case of telecom industry in the UK, threat of new entry is comparatively low. The main reason behind this is there are several established telecom organization in the UK and the initial installation cost regarding installing BTS, MSC, BSC and other unit of communication is very high (g2mi.com, 2016). Moreover, licensing issues and buying radio frequency also incur huge cost and time so the threat of new entrants is comparatively low.|
|Bargaining power of supplier||Here the bargaining power of supplier is medium because there are a few suppliers in the market who supplies different equipment such as BTS, microwave antenna, BSC, ODU, IDU, BTS Electra regarding the telecom operation.|
|Bargaining power of buyer||In case of EE limited, bargaining power of the buyer is high because there are several existing and established market player such as O2, Vodafone Electra. Along with that, different foreign organization provides different attractive offers to the customers of the UK so they are getting attracted to those organizations (G2mi.com, 2016). Due to those reason, EE limited are losing their valuable loyal customers.|
|Threat of substitute||Threat of substitute in case of the EE limited is high because with the development of the technology, customers are like to call or message through different instant messaging app or social media app. This helps them to call or message in less costs so for this reason, EE limited may face huge problem.|
|Competitive rivalry||There is several existing telecom organisation like O2, Vodafone and different foreign organization in the UK market that are providing services to the customers (Bussell and Forbes, 2011). Therefore, customer-switching rate in case of the telecom industry of the UK is high. Customers are generally like to receive service from them who provide better services to them. Therefore, competitive rivalry in the UK telecom company is high.|
Table 3: Porter’s five forces analysis
(Source: Holm, 2014)
Table 4: SWOT analysis
(Source: bloomberg.com, 2016)
The objective of the EE limited is gaining a profit level of 10%, the SMART format of the objective is stated below (P4, M4, D2):
|Specific||This objective is specific because in order achieve the objective it is important to gain the loyalty of the customers|
|Measurable||It is measurable because it involves a statistics that is 10%, so in order to achieve this objective it is important to measure it with respect to this percentage (Zahra et al. 2011).|
|Achievable||It is important to achieve 10% but they can achieve almost 9% of the total|
|Realistic||This objective can be realistic by providing more effective services to the customers by meeting the expectation of the customers.|
|Time bound||In order to achieve this objective minimum 8 months’ time is required.|
Table 5: SMART objective of EE limited
(Source: Created by author)
Figure 1: Ansoff matrix
(Source: hoovers.com, 2016)
There are different types of strategy that can help the EE limited to achieve competitive advantage. As they are facing problem regarding their brand recall strategy so it will be effective for them to provide more concentrate on the market penetration. However, along with that they can also concentrate on the product development strategy. As stated by Wright et al. (2012), in order to achieve competitive advantage they should offer the existing service to their existing customer but with new format. They must change their marketing strategy so they can make their customer aware regarding the effectiveness of the services. Along with that, they can develop the quality of their existing services to attract their customers. For meeting their business objective, they can offer other type of services (Verbeke et al. 2012). They can facilitate research and development and invent new type of product by which they can motivate their employees in highest extent.
Segmentation, targeting and positioning:
Several types of Segmentation strategy are there according to which they segmented their customers and approach them with effective targeting strategy. Product segmentation of the EE limited is fixed line, broadband and mobile telephony (De Jong and Vermeulen, 2013). EE limited mainly segmented their customers according to the psychographic and behavioural segmentation. In the psychographic segmentation, they sub-divided their customers according to their lifestyle and personality and offer more effective services so it can motivate them to buy their services. They also sub-divided their customers according to the occasion, attitude, user status and benefit sought and offers them their services in low pricing strategy so they can be motivated to buy services from EE limited. They mainly targeted different business organization than the individual customers (Mullins and Sutherland, 2011). There are different positioning strategy, among them, EE limited follows the price positioning strategy and positioned them as the biggest 4G networking company in the UK so they can achieve huge customer base in the UK.
Tactics and action:
In order to improve the profitability of the organization, EE limited can apply an effective marketing mix to attract their customers. In this current highly competitive and saturated market place, any organization can achieve competitive advantage if they understand the buying behaviour of the customers. Therefore, in order to increase the revenue of the organization, it is important to conduct a marketing audit to understand the customer buying behaviour of the customers so they can develop their service accordingly in order to attract their customers. Along with that, the organization must increase the number of store to make their product more available to customers.
According to the marketing plan, the budget of the organization is as follows:
|Cost regarding human resource||£60000||£65000|
Table 6: Budget
(Source: Self developed)
It is important for the management of the EE limited to facilitate continuous monitoring of their marketing plan so they can assess the effectiveness of the plan. In order to facilitate an effective control, it is important for the EE limited to regular monitoring different undertaken strategies that are implemented by them so they can understand the problem associated with their strategy and change it accordingly in order to achieve optimum success.
It can be concluded from the above discussion understanding the concept of the marketing is very much important so the knowledge regarding it can benefit the organisation. In case of the EE limited, in order to achieve effective marketing mangers cannot ignore the application of the most effective marketing process. Therefore, in order to achieve effectiveness in the marketing, it is important for the organization to select marketing mix effectively so it can provide competitive advantage to the company.