Essay: Understanding Customer Behaviour - Vodafone Case Study

The overall task in  is based around two aspects. First, that each student can develop a theoretical understanding of the underlying principles of Customer Behaviour (CB). Second, that each student will be able to apply these principles by developing a comprehensive CB Research Report for a major marketing related issue faced by an organisation.In Task 1 the focus is to conduct a brief CB situation analysis. In this task you will develop the first step along the road to the presentation of your CB research report for your selected case study organisation.

You are to assume that you the market research manager for your organisation and you have been asked by the Chief Marketing Officer (CMO) to evaluate customer behaviour using consumer behaviour theories and research to provide an innovative sustainable marketing solution, which will benefit both consumer and provider. More detail will be provided on the Interact 2 website.Your ultimate task throughout this subject by Assessment 4 is to develop a comprehensive research report which explains the consumer decision-making and brand switching process for only one of the following cases:

1. Bank-Select one of the following banks CBA, NAB, Westpac, ING, Suncorp, Citicorp – to research and subsequently develop a model of consumer decision-making and bank switching (i.e. from competitors) for a credit card or a savings account or a housing loan which could be used by the bank to develop an innovative sustainable marketing solution;
2. Mobile- Select one of the following mobile phone service organisations Telstra, Optus, Vodafone/TPG- to research and subsequently develop a model of customer phone switching (i.e. from competitors) which could be used by the organisation to develop an innovative sustainable marketing solution;
3. Political- Select one of the following political parties Labor, Liberal, Greens- to research and subsequently develop a model of voter decision-making and brand switching (i.e. from other parties) which could be used by the party to develop an innovative sustainable campaign theme(s);
4. Own Organisation- Alternatively, you can choose an organisation you work for to select one revenue generating product or service provided - to research and subsequently develop a model of customer switching which could be used by your organisation to develop an innovative sustainable marketing solution.

Your objective is to consider situational issues that are likely to directly or indirectly influence the consumer decision-making and brand switching behaviour including:

1. Nature of Industry, market and buyer decision-making behaviour
2. The Organisation – company, product and other organisational aspects
3. The target market/ audience characteristics
4. Note: your analysis must include market/industry and/or survey data to support your analysis.

Consumer behaviour relates with how the consumers behave in the circumstances which involves goods, services, experiences and ideas. This report represents the telecommunication industry and the data sources of Vodafone Company. This study is conducted to assess the consumer’s mind and understand their consumptions. Additionally, this study will help to know the potential consumers’ psychological, social and physical behavior.

 The questionnaire are considered as the primary data, obtained by interviewing the customers, whereas the company records are considered as the secondary data.

1.1 Aim

The aim of this research is to help in understanding the role of situational analysis, to deal with the customer behaviour issues, for assisting in business strategy and marketing strategy.

1.2 Objective

The objective of this research is to represents the data sources of Vodafone Company. A research will be conducted for developing a model of customer phone switching, in order to come up with innovative sustainable marketing solution.

2. Nature of Industry, Market and Buyer Behaviour

Vodafone Company is a Wireless telecommunication Carriers industry. In general, the Wireless telecommunication Carriers industry facilitates the wireless infrastructure to its customers with, voice and data services, and so on ("Market Research Report", 2018).

The key buyer of Vodafone is, CK Hutchison, which is formerly known as Hutchison Whampoa. As, in the year 2009’s June month, Vodafone Group Plc and CK Hutchison Telecommunications (Australia) Limited, merged their mobile operations, in Australia. The Vodafone brand is used for marketing the products and services of this combined entity called as, Vodafone Hutchison Australia (VHA). Hence, this gave birth to the 50:50 joint venture of VHA.  

Thus, Vodafone Hutchison Australia (VHA) refers to an Australian telecommunications company, which offers services of mobile and fixed broadband. It has offices present in places like, Melbourne, Sydney, Brisbane, Perth and Adelaide. Then, throughout Australia VHA contains several contact centers like one in Hobart and contain owned retail stores which are greater than 120. The 4G mobile network of Vodafone Hutchison Australia covers Australians customers, greater than 22 million. The capital cities and the selected regional centers have Vodafone nbnTM fixed broadband services. By the year 2018’s June month, the mobile customer base of Vodafone Hutchison Australia has crossed 6 million ("Information about Vodafone.", 2018).

The Vodafone Hutchison Australia’s joint venture comprises of unique consumer and enterprise initiatives such as, for mobile customers it offers $5 roaming and no lock-in handset plans, and for their fixed customers it offers Instant Connect and 4G back-up services.

  This industry offers the following products:

• Voice services
• SMS and MMS services
• Data services
• Satellite, television and radio relay
• Handsets and equipment

The industry activities are listed below:

1. Direct-to-home satellite systems operation
2. Cellular telephone communication service
3. Voice over Internet Protocol (VoIP) provision
4. Microwave/radio wave transmission
5. Television relay station operation
6. Satellite communication services
7. Radio dispatch services provision

3. The Organization – Company, Product and other Organizational Aspects

Vodafone Hutchison Australia Pty Ltd is the mobile telecommunications provider, which is popularly known as Vodafone. It is a foreign based private organization which draws its revenue by facilitating telecommunications services. Its head office in located in North Sydney. This organization employs nearly 2,720 employees, and provides its services throughout Australia. Vodafone Hutchison Australia is a combination of companies like CK Hutchison Holdings Limited and Vodafone Group Plc.

CK Hutchison Holdings Limited is a company from Cayman Islands, whereas Vodafone Group Plc is a United Kingdom based company ("Vodafone Hutchison Australia Pty Limited - Profile Company Report Australia", 2017). 

Objective

Vodafone Hutchison Australia Pty Ltd is a mobile telecommunications provider, who operates the below listed services, with the brand name, Vodafone ("Vodafone Hutchison Australia Pty Limited - Profile Company Report Australia", 2017):

• Mobile phone and plans.
• Tablets
• Internet plans and mobile broadband.
• Sim card only and prepaid phone plans.
• Home TV streaming
• Wi-fi modems and internet plans for businesses.

These two combined entities are termed as unprofitable mobile-phone business in Australia when compared to the local broadband provider TPG Telecom Ltd. Thus, TPG Telecom Ltd Company has increased the competition for VHA.

Vodafone Hutchison Australia has operations in the below listed industries of Australia ("Vodafone Hutchison Australia Pty Limited - Profile Company Report Australia", 2017):

1. Domestic Appliance Retailing
2. Telecommunications Services
3. Wireless Telecommunications Carriers

In 6 months, as per Hutchison Telecommunications (Australia) Ltd, with the increased competition and the surge in the cost of the handsets, VHA’s loss increased to A$92.3 million (i.e., US$67.7 million), whereas a year earlier it was A$81.5 million. In this joint venture, each party receives 1.3% average revenue, from each user. When the customers experienced network coverage issues, it was nicknamed as “Vodafail” and the idea of combine with Hutchison Telecommunications (Australia) Ltd was to compete with the Australia’s best known fixed-line broadband service provider TPG. Their venture in the market turned its shares to increase by 0.2 percent to ?1.7644 ("Vodafone, CK Hutchison mull Australia merger", 2018).

4. Target Market/ Audience Characteristics

In general, the mobile telecommunication industry has grown in the last 5 years, with increased demand to have constant connectivity and higher data usage. This also has increased the competition among the major players of the industry ("Market Research Report", 2018).

 The targeted market is Australia and thus the audience are Australians present in different parts of Australia. With the entry of Vodafone in to the market, it had to face challenge to handle their increasing customer base along with other challenges like, it had to decrease its personnel and infrastructure cost.

In the market competition, the shares of TPG Company has increased to 22% i.e., A$7.65 in Sydney, which means its market capitalization is expanding to be A$7.1 billion. Whereas, in London, the shares of Vodafone have increase of just 0.2% to ?1.7644 ("Vodafone, CK Hutchison mull Australia merger", 2018).

The Australian parent company of Vodafone has hinted that it is planning to follow the strategy of Telco, for their first product, fixed broadband. Vodafone Hutchison Australia has revealed that the broadband offering intends in complementing their mobile offering, and mainly concentrates on the customer demands. Apart from this, the key focuses of this company includes, increasing the market shares, revenue for broadband and mobile customers (Foye, 2017).

The dataset on communication service prices and services are measured and researched by Vodafone Hutchison Australia. Additionally, the international markets are researched for their price differences in the market, to meet the demands of the customers. Thus, the premiums in Australia and internationally are compared.

 To help customers, it has introduced Vodafone Self-Service Kiosks and centers in different regional areas. It has considered to put the customer price premium as a perspective of their strategy, along with the following ("Australia’s telecommunications market structure", 2015):

1. Impost on consumers from Telstra price premium.
2. Considering the communications premium as an important perspective.
3. Increasing the market shares of the fixed line broadband.
4. Increasing the market shares of the mobile services.
5. Price premiums for the dominant provider.

5. Data Analysis

Here, the data analysis is useful to learn how to use Pivot tables. Pivot table for mobile telecommunication is illustrated as below.

6. Data Presentation

The Data presentation is done by using the Tableau. The mobile communication industry data presentation is illustrated as below.

References

Australia’s telecommunications market structure. (2015). Vodafone Hutchison Australia. Retrieved from https://www.communications.gov.au/sites/g/files/net301/f/Vodafone%20-%20Attachment%20E.pdf

Foye, B. (2017). Vodafone to target enterprise with mobile and broadband services in 2017. Retrieved from https://www.crn.com.au/news/vodafone-to-target-enterprise-with-mobile-and-broadband-services-in-2017-455839

Information about Vodafone. (2018). Retrieved from https://www.vodafone.com.au/about/company

Market Research Report. (2018). Retrieved from https://www.ibisworld.com.au/industry-trends/market-research-reports/information-media-telecommunications/services/wireless-telecommunications-carriers.html

Vodafone Hutchison Australia Pty Limited - Profile Company Report Australia. (2017). Retrieved from https://www.ibisworld.com.au/australian-company-research-reports/information-media-telecommunications/vodafone-hutchison-australia-pty-limited-company.html

Vodafone, CK Hutchison mull Australia merger. (2018). Retrieved from https://www.taipeitimes.com/News/biz/archives/2018/08/23/2003699006