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  • Level: GCSE
  • Subject: ICT
  • Word count: 3170

In the following report we will be looking at mobile phone tariffs currently on offer on the internet. We have chosen three of the largest tariff providers, these being Vodafone, Orange and BT Cellnet.

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INTRODUCTION In the following report we will be looking at mobile phone tariffs currently on offer on the internet. We have chosen three of the largest tariff providers, these being Vodafone, Orange and BT Cellnet. After analysing the content of each of the company's web sites we aim to provide a report including the following:- * Evidence if the companies are targeting particular segments * If evident, how the companies are targeting segments on their web sites * Identify the pricing strategy adopted by the company * Compare and contrast the different information on the web sites and give clearest picture regarding pricing information. EXECUTIVE SUMMARY The basis of this report is on the pricing strategies and targeting of marketing segments of the three mobile service providers that were previously identified. Our results showed that all three had reasonably similar tariffs and services but each had some subtle differences in the way they marketed their services. 1.0 TARGET MARKETS When the mobile phone was introduced many years ago it was certainly not an instant success, however after many years the mobile phone "trend" soon took off and in a big way. With the introduction of smaller trendier handsets and call charges that were not obscenely large the number of people who do not own a mobile phone are now by far a minority. With this boom in mobile users tariff providers had to re-think their strategies in order to cater for these new customers as their new users were no longer the stereo-typical business executives but people from all sections of society. With this in mind we will look at each of the three service providers previously mentioned and compare the tariffs offered by each provider and identify how they target particular segments. 1.1 VODAFONE Like most tariff providers the Vodafone web site offers plans which seem to be able to suit a vast number of people. ...read more.


This strategy has proved very beneficial in attracting new male customers to these network providers 2.2 The main strategy employed by Orange, Vodafone and BT Cellnet is to attract new business (i.e. people who don't already own a phone). This is highlighted by their "penetrative pricing stategy" (Hannah and Hodge pricing policies and procedures). and special deals offered to the first time buyer. However this is a very dangerous strategy as existing and loyal customers are not receiving these special deals and this is often resulting in post purchase dissonance from these highly exasperated consumers. Who are often far more important in revenue terms than the new customers that are being targeted. 2.3 The mobile phone service providers segment their customers according to whether they are light, medium or heavy users. In order to create value for segments these companies offer a range of different tariffs to suit the differing needs of the customer. These tariffs should be carefully examined however as although there are special prices and bonuses on each tariff there are also some hidden costs and pitfalls. This is a clever pricing policy which many customers are not aware of. These tariffs vary dramatically with a monthly line rental being charged then varying call costs and extras. The higher the initial line rental charge the cheaper the call costs and extras in order to encourage users to make more calls. Free minutes, text messages and voice mail are benefits included in such talk plans. Pay as you talk is another service which these companies have introduced to encourage light users or people who do not want enter a twelve month contract to purchase a Mobile phone. The latest edition to the price plans offered by these companies is cross network tariffs allowing customers to call phones on other mobile networks for a reduced rate. The network providers have managed to achieve this by charging slightly higher monthly line rentals. This is already proving to be hugely successful for these early adopters. ...read more.


It is up to the consumer to choose which one best suits their needs. This is when it could start getting confusing and even overwhelming. But the site tries its best to make it as stress free as possible. The service plans are on three different pages rather than crammed on to one. The tables, containing pricing info, at first glance would seem off putting but once looked at there not actually to bad. However the many asterisk on show are unappealing. In general the pricing info on this site is vast and well presented. No pricing information is missed out and is presented in a careful and helpful way. Additional information is available if needed. 4.3 VODAPHONE As with the other two network providers Vodaphone has both 'Pay As You Talk' and monthly options. In the 'pay as you talk' section there are more options available than in cellnet and orange. However this does not mean it is complicated to use as each option is clearly presented and explained in an understanding way. Call charges etc are basic but still satisfactory. In the pay monthly section standard price plans and leisure plans are available. Once in the standard plan you are greeted by scary looking table and is very off putting. However each price plan can be entered individually and is presented on its own with an explanation of which the package is best suited to. This site is well put together and easy to follow and it is clear a bit of effort has been put into preparation of it. Out of the three sites the Vodaphone site is the superior, largely due to the clarity of the information shown on it. It is a huge benefit to be able to see the different call charges of a particular package on a page of its own. The orange site is a close second only problem being information overload. The cellnet site has a number of problems mainly being unclear and unsightly. ...read more.

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