Segmentation of Vodafone

Topics: Mobile phone, Vodafone, GSM Pages: 5 (1145 words) Published: June 19, 2013
Vodafone segmentation

A Global segmentation has been developed and applied across all markets in the last 5 years. It covers consumer and business user segments, and in addition they have a chooser segmentation. The key challenge when doing the global segmentation was using variables which they are confident are applicable across all markets. Hence segmentation is predominantly age/lifestage, with some variables linked to attitudes to technology.  

A couple of segments that have been quoted by Peter Bamford (the marketing segment leader) are Young Active Funs (YAFs) and Adult Personal Users (APUs) – see others below  
Within Vodafone, purpose of global segmentation is very clear, to guide the development of global propositions, that will then be rolled out across the markets. A recent case of this is Simply, which has been specifically developed for APUs. It is also used to guide global communication, and experience development – see below.  

This approach does not preclude local micro segmentation within the markets , for more granular targeting eg CRM. In effect the segmentation works as a matrix: the columns are the global segments, and the rows are the market specific microsegments, which may go across the global segments eg high value customers, or be a sub segment of one of the global segments eg YAFs with a 3G phone  

In a marketplace where technology investment requirements are so high, some sort of global segmentation is critical in order to be able to ensure investment is focused on delivering to the most attractive customers  

IMPACT OF SEGMENTATION at Vodafone

Vodafone has 150 million customers, but as an organization they talk about seven very distinct customer segments.  Everybody in the organization understands who those customer segments are and what they want. And as they go to the market, they have very different propositions.  So Vodafone Live is very much at targeted at teens and young, active, fun users.  It's got every possible widget and gadget to make your mobile phone experience a great one. Vodafone Simply, which is targeted at older consumers and those that don't want the technology whiz and bang, is a simplified phone that gives people the exact kind of communications they need.   

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And with this very targeted set of propositions, Vodafone has managed to outgrow its competitors in almost every single one of its markets.

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Vodafone is also starting to exploit market segmentation, by introducing some new ARPU-raising initiatives for specific market segments. These include the recently announced Vodafone Simply and Vodafone Passport, aimed, respectively, at increasing voice usage among 45-65 year olds and international travellers. However, it is too early to gauge the extent to which these initiatives will feed through to the ARPU numbers.  

Vodafone Simply Is Targeted At The Older Segments – See Above From V website
Introducing Vodafone Simply

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New and exclusively from Vodafone, Vodafone Simply offers the most simple, easy-to-use mobile phones and clear tariffs.

Vodafone Simply mobile phones are designed for you if you want: • An easy-to-use phone only for voice calls and texting. • To keep in touch easily with your family and friends. • And uncomplicated phone with built-in helpful tips.

The Vodafone Simply mobile phones are uniquely and intuitively designed to provide only the functions you really need. The phone shape and user interface have been deconstructed and redesigned to put customers' needs not technology first.

The phones also features built-in help and hints that appear on the screen.

|[p|See the Vodafone Simply phones, check out the features and find out how easy they are to use | |ic| | |] |...
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