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. Like the other service providers they offer different line rental plans to suit both light and heavy users as well as pay as you go plans where there are no monthly bills involved. For light users Vodafone offer a “Leisure plan” for people who mainly make calls at evening or weekends, this plan offers 200 or 500 minutes of off peak calls included in the monthly line rental charge, however users will be “punished” by high call charges outwith these off peak times. “Regular” plans are for people who make phone calls during the day (peak-time), these tariffs offer small numbers of call time (20, 60 or 200 minutes) included in the monthly bill which obviously increase with the number of minutes that you require. For the business user Vodafone offer large amounts (400,800,1100+2100 minutes) of call time but with much higher monthly charges. As well as monthly line rental plans Vodafone offer pay as you talk plans whereby there are no monthly bills or contracts but your phone has a credit limit and is “topped up” with vouchers available in most high street stores. These kind of plans are ideal for emergency users or for children (good as no large bills can be run up!). Each of the monthly tariffs offered by Vodafone aim to support each kind of mobile user with varying talk time offered in order to make mobile usage as cost efficient as possible for each customer.

1.2

ORANGE

As with the Vodafone web site, Orange offers a wide range of monthly tariffs, in fact they are pretty much the same monthly tariffs that Vodafone offer on their site. As with Vodafone they have tariffs aimed at the light, medium and heavy users ranging from “Everytime 20” for light users- this is exactly the same tariff as “Vodafone 20” apart from there is a 5p per minute saving on standard peak time calls compared to Vodafone’s but Vodafone offers a 5p per minute saving on standard off peak calls, to “Everytime 400” for heavy users. Like Vodafone, Orange also offers “business user” packages and their own pay as you go plan.

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1.3

BT CELLNET

Not surprisingly the tariffs available on the BT Cellnet web site are basically the same tariffs that are available on the Orange and Vodafone sires. It is evident though that the Bt Cellnet tariffs are not as tailored as the ones offered by Vodafone and Orange, this is easily seen in their “Alltime” packages where they only offer 75,200 and 400 minute packages whereas both Orange and vodafone offer 20,60,100,200 and 400 minute in their equivalent packages. This is probably down to the fact that Orange and Vodafone are far larger and more established than ...

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