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Marketing case study on Cell C in the South African phone market.

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Introduction

Case study on Cell C Table of contents Question 1 .............................................................................................1 1.1 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...................1 1.2 Discuss how Cell C targets each of its identified segments with appropriate market offerings.........................................................................................2 1.3 Explain how Cell C positions its brand in the minds of its target audience............3 Question 2 ..............................................................................................5 2.1 Evaluate how Cell C analyses its competitors.............................................5 2.2 Discuss 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) ...read more.

Middle

The new and improved product facilitated efficient service to Cell C's subscribers by providing faster call switching and wireless opportunities. The flank attack can use a geographic strategy attack where the opponent is underperforming, serving uncovered market needs or segmental strategy in identifying where there are gaps and quickly filling them into strong segments (Kotler and Keller, 2009:349). In September 2002, Vodacom and MNT announced a price increase. Cell C attacked and challenged them using a modified frontal attack strategy by deciding to maintain its current tariffs (Kotler and Keller, 2009:349). This strategy works better if the leader does not retaliate and the challenger has to convince the consumers that its product is equal to the leader. In order to be known into the market place, the company provides its target market with a competitive cost that corresponds to their high quality products and services. Apart from this Cell C used a pure frontal attack by working hard at rapidly increasing its distribution network through breaking the exclusive agreements Vodacom and MTN had with certain retail outlets such as Clicks that previously only sold MTN products. This attack was to match its opponents' distribution network as an influence towards increasing its market share. 7 Kotler and Keller (2099:349) define encirclement attack as an attempt to capture a wide slide of the enemy's territory through a blitz. This strategy relates more to a challenger who commands superior resources and sure of success. The bypass attack is the most indirect assault strategy where the challenger attacks easier markets to broaden the firms' resource base and guerrilla attack consist of waging small, intermittent attacks such as selective price cuts, intense promotional blitzes and occasional legal action (Kotler and Keller, 2009:350). Specific attack strategy e.g. lower-priced, discounted products, new or improved products or services, a wider variety of offerings and innovative distribution strategies can be used based on any marketing program. ...read more.

Conclusion

Therefore the expectations are largely met by the service provider's call centre public image. As indicated in the case study, Cell C believes it's important to provide good service to its customers hence installed a world-class customer call centre with highly impressive call recognition features where by the operator answers with: "How may I help you, Mr Mhize?", which covers the aspect of individualising the customer by name and not number. As there is no physical facilities and materials related to the service (tangibles) emphasis is placed on assuring the customer of the systems security and credibility (assurance) and the ability to deliver the service reliably. Empathy dimension refers to the ability of the firm to provide care and individualized attention to its customers i.e. the management or the service employee must see things from the vantage point of the client. Cell C payoff line "for yourself" i.e. a tool which enhances one's particular lifestyle through the provision of lifestyle-enhancing cellular services based on simplicity, choice and value. The empathy dimension relates to the ability to provide individualised package choice based on consumers' individual lifestyle needs and offer value by structuring the packages in the most competitive way. It also had a product aimed at the youth, the Club Chat which takes advantage of both the youth's need to be in contact with their peers at all times and their traditionally scant disposition. It shows consideration and caring of the individual youths. 14 The success of integrating quality in a company's customer services depends heavily on the management. While some company management send their employees to training, some managerial factors would have to be used as well the values and skills of the employees on the other hand, must be prioritized as well. They must be given enough empowerment to contribute effectively towards customer satisfaction. Most people equate customer service with personal interaction, while few of them realize the complexity of business systems involve in it. Without these helpful systems, the smile or the warm greeting service employees provide will lead to minimal results. ...read more.

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