Marketing : Cell C

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Case study on Cell C

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Question 1 ………………………………………………………………………………...1 1.1Discuss how Cell C has segmented the market and profiled the distinct groups of buyers who differ in their needs and preferences for cellular phones…………….…1

1.2Discuss how Cell C targets each of its identified segments with appropriate market offerings……………………………………………………………………………..2

1.3Explain how Cell C positions its brand in the minds of its target audience…...……3

Question 2 ………………………………………………………………………………….5 2.1Evaluate how Cell C analyses its competitors………………………………………5

2.2Discuss the specific strategies Cell C used to challenge and attack its competitors in order to gain market ………………………………………………………...………6

Question 3…………………………………………………………………………………..9 It is evident from the case study that Cell C relies heavily on the promotion mix to create awareness. Critically analyze Cell C’s promotional mix strategies

Question 4……………………………………………………………………………….10 Consider the state: “Cell c hopes to achieve a sustainable 25% market share by 2009”. You do believe that the target is attainable? Justify using evidence from the Case study as well as secondary research

Question 5…………………………………………………………………………………12 The key to any service delivery firm is customer satisfaction. With regards to this, discuss how the SERQUAL model can be used by Cell C to evaluate its service delivery

Question 1: Many companies are now embracing target marketing to compete more effectively in the market place. According to Kotler and Keller, (2006:240) “instead of scattering their marketing effort (a ‘shotgun approach’, they should focus on those consumers they have the greatest chance of satisfying (a ‘rifle’ approach). Discuss how Cell C has segmented the market and profiled the distinct groups of buyers who differ in their needs and preferences for cellular phones

Markets have customers who have different needs and want that which have to be identified and satisfied. To compete more effectively firms need to identify target customers and profile distinct groups according to the needs, wants and benefits sought by the customer as well as increase profits. Marketers can choose niche, local or customisation type of marketing (Kotler and Keller, 2006:240-246).

Kotler and Keller, (2009:248) confirm that segment marketing consists of a group of customers who share similar set of needs and wants. Cant, Strydon, Jooste and du Plessis, (2007:103) are of a similar view that market segmentation is the process of dividing the total market into segments or a target market of consumers with common needs or characteristics. Longenecker, Moore, Petty and Palich (2006:267) define consumer profile as a collection of information about a customer including demographic data, attitudes, preferences and other behavioural characteristics. Cant et al. (2006:123) argue that “segment profile” considered by organization must be described fully in terms of its size, demographic and psychographic details, lifestyle, behaviour patterns and product usage.

Customer or market research can produce quantitative facts about particular markets and market segments e.g. the size of the market both in terms of unit sales and value. As Cell C is flanged by two giants already stabilised in the market, segmentation and profiling based on the needs of potential customers was essential. It used variables such as geographic, demographics, psychographics and behavioural considerations of the consumer. No matter which type of segmentation scheme used, the key is to adjust the marketing programme to recognise customer differences. 1

The geographic segmentation refers to diving of the market into different geographical units such as nations, states, regions, countries, cities or neighbourhoods (Kolter and Keller, 2009:253). Cell C targeted the corporate market as it was by far the most profitable though the hardest to capture as it was a mature market. It’s important to assess...
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