Essay details:

  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

Text preview of this essay:

This page is a preview - download the full version of this essay above.



With reference to the case study, M-PESA stated in Kenya, 2007 with the aim of money transfer over the mobile phones using Vodafone subsidiary due to high crime rate that it was unsecure to carry cash physically. The idea was to implement in India by 2010 using Vodafone platform. The intension was to pursue millions of subscribers to increase the number of money-transfer users.

1.1.1. Growth of Vodafone Company in India

Based on the case study, Indian has 100,000 bank branches of which 5% are in rural areas. Sending Money via banks becomes impossible due to the fact that many people migrate to rural area for green pasture.

But the Vodafone did another pilot by disburse wages of MNREGA workers through M-PESA in the Hinjilicut and Chikiti blocks in Ganjam district which reduce delay in payment for customer with local cooperate banks and post offices as described in the case study.

Therefore market growth of Vodafone in India undergo intensive growth through market penetration by accommodate 900 million subscribers, 40% of which are rural consumers.

1.1.2. Performance of the Vodafone Company

According to the case study, the platform brought by Vodafone to India in 2012 as a pilot in Rajasthan was executed in April 2013. The launching of this service was expected to increase large number of subscribers by using several product and services offered. The service performs at excel level in such a way that only 1.5 million of Vodafone's 170 millions subscriber's use the service.


According to the lecture delivered as a part of Module 85EKM, SWOC ANALYSIS is a structured approach to evaluate the strategic position of a business by identifying its strength, weakness, opportunity and Challenges. (Nnko 2015)

1.2.1. Internal Analysis

This analysis focus on strength and weakness of the organization, when evaluate strength and weakness only those resources or capabilities that would be used by customers should be included. (Jobber 2010)

1.2.2. External Analysis

This analysis focuses on external factors influence and affects every organization directly or indirectly connected to an opportunity and challenge. (Punch 2015)

Below Chart shows a SWOC analysis of Vodafone in India


1. Indian's second-largest mobile operator by customer base.

2. High Brand Loyalty in terms of Mobile Money service.

3. Reliable and secure network over bill payments and recharge voucher service

4. Wide Coverage & International Operation over metropolitan cities.

5. Spans network distribution about 1.7 millions touch points 1. Re tape effect upon disburse money to beneficiaries.

2. Market Competition in terms of price that cost Rs 100 per enrollment.

3. The Vodafone lack of scalable platform imposed due to regulatory environment

4. Poor Market Strategy that require being revamp to retain market leadership.

5. Lack of awareness and ICT as demonstrate in the study that education is primary concern for vendors


1. The Vodafone Merger ICIC Bank to allow cash outs options.

2. Diversification of the Vodafone portfolio.

3. Mobile penetration to urban areas

4. Uses 5% of the bank that are found in rural areas to penetrate the services.

5. Change of technology allow introduction of M-Pesa service for mobile app. 1. Competitor from Other Mobile Operator such as Bharti (Airtel) and Idea Cellular

2. Limited product life cycle that operate under 30KM from parent bank

3. Government Intervention on Licensing to Operator.

4. Limited infrastructure facility with Vodafone in India.

5. Traditional marketing that people transfer money using post office system



Market segmentation is a crucial market strategy. Aim is to identify and delineate market segments or ‘set of buyer' which would then become targets for the company's market plans. (Tynan C. and Drayton J. 2010)


Jobber D. (2010:262) Emphasize the concept of market segmentation using consumer market by grouping potential customer with similar characteristics through broad groups of criteria which are; behavioral, psychographic and profile variables.

Through the use of purchase behavioral, The Vodafone maintains and enrolls number of the new user by charge reasonable cost upon registration which is Rs 100. With this onetime payment the customers becomes loyalty to their brand as demonstrated in the case study.

The case study shows that the people of NAMKUM have a tendency of providing due money to the poor women whom were giving birth. Through psychographic segmentation, the lifestyle is practiced in this scheme in such a way that every poor woman is given Rs 1,400 on the birth for every child.

The Vodafone has segmented the profile variable through Geographic location by covering and disseminate the services into rural areas. As refer to case study that 900million subscribers, 40% are rural consumers.


Evans et al. explain the concept of market segmentation based on business market that depends on geographic, psychological and demographical.

With geographic location, the Vodafone has segmented the market in term low income earners and level of education for rural and urban areas as shown on the case study.

Based on the case study, the Vodafone has segment its market on demographical as focus on level of education. For tier 1 refer to educated people and tier 2 & 3 refer to uneducated people

With reference to the case study, the low income earners believe that goes to urban, they will use M- PESA to send money securely to their relatives as a psychological factor which enhances reliability over mobile transfer.


According to the lecture delivered as a part of Module 85EKM, a consumer behavior refers to the buying behavior of final consumer (individuals & households) that buy products for personal consumption. (Idinga 2015).

Despite the fact that India has 100,000 bank branches it nearly impossible to send money over the bank due millions of villages migrate to developed cities for work. Therefore they develop a culture of send money (cash) through traveling relatives or acquaintance as demonstrated in the case study.

Social Class, Kotler (2012:162) argues that social class can be divided into upper, middle, working and lower classes by marketers whose members shares similar values, interests and behavior. Consider the case study the NRHM with financial assistance plan JSY develop a scheme which promotes institutional delivery among poor women whom are waiting for due money after giving birth.

At the buyer decision making, the personal influential factors based on the following characteristics age, life-cycle stage, occupation, economic situation, lifestyles, personality and self concept. Based on the case study most of the people are uneducated and do not understand the concept of M Wallet and its core functionality.

Consider the case study that majority of an Indian do not have the digital knowledge on M-Pesa. The organization must change the perception of user by educate in order to capture the new platform because motivated person are ready to act with reference to psychological factor.

According to the lecture delivered as a part of Module 85EKM, a buyer behavior refers to the buying behavior of all types of buyer. (Idinga 2015)

Consider the case study, people takes sometimes to mind-shift from particular service; the adoption process has been affected by awareness and lack of ICT networks.

Vodafone came up with advertising strategy that put up camps in NAMKUM so that they acquire more customers on the M-Pesa service and other product line such as Vodafone SIM.



Kottler et al. suggest that the marketing refer to the value of a product or services to consumer for the purpose of promoting the specific service or product.


With reference to Kottler, P. and Keller K, L. (2012), Marketing has a large contribution on operating the business and enhances profit at large.

Based on the case study, the presence of competitor service such as Bharti Airtel with Airtel money and Idea Cellular with M-Wallet contribute towards the improvement of M-Pesa service for Vodacom in India by providing reliable service and maintain loyalty to the customers.

Consider the case study; the marketing stimuli contribute towards customer delighted with the reduction of price over the service.

The Vodafone improve its M-Pesa services by adding new features such as Mobile app which regulate customer value and satisfaction.  

Similarly the Vodafone set camps to promote the M-Pesa service and SIMs cards. Finally influence the service through the word of the mouth from the consumer.

With Product and Services as elaborated on the case study, the M- Pesa service that is implemented in India via Vodafone provide customer need and satisfaction as shown on the study that customer are able to perform money transfer though send and receive, paying their bill and recharge.

With reference to the case study, the Vodafone uses integrative growth market strategy through customer acquisition. The Vodafone has selected the duplicate Kenyan Model in India by splitting into several agents about 75,000 across the country and it has already pursued million of customers.

According to the case study, the Vodafone has segment its customer based on the profile in such a way that the implementation took place in rural areas Through this segment the Vodafone were able to acquire 900 million mobile subscribers of which 40%  are rural consumers.


The Vodacom in Tanzania uses cost- based approach and competitive pricing strategy that the lower cost recharge through M-Pesa is 100 and the highest is unlimited. With this strategy the M-PESA in India could adopt this strategy and delight its customers.

The Vodacom in Tanzania have number of product line, these are M-Pesa services, Devices (Modems & Cellular Phones), Data, Prepaid, Value added and International Services. The presence of this product mix has enabled the company to provide the customer needs and satisfaction by increase profit therefore the Vodafone in India could establish other product line so as to capture more customers on various services.

Unlike Vodafone in India, Vodacom uses extensive distribution channel to distribute its product and services to the customer. These distributions include online, wholesale and informal channel, direct sales and Vodacom direct. In order to meet customer needs, wants and attain level of satisfaction Vodacom uses kiosk, ward and global distribution channel.

The Vodacom has wide coverage in its network mainly in United Republic of Tanzania but also perform roaming in East Africa, South Africa, India, Germany, China, Mozambique, USA and UK. With this coverage the Vodacom meets various customers and retain brand equity unlike Vodafone in India



Information Technology contribute to business excel, create relationship, strengthen and effectiveness of the business. Technologies such as Mobile phones, internet, social media and customer relationship management.(Gabbott, M and Colgate, M )


Traditional over Modern Marketing

Ranjan et al. explain that the traditional marketing is a local form of marketing using advertising that incur cost and time which includes telemarketing, broadcasting media, direct mail and print media while modern marketing refer to marketing using internet for tool such as social networks, website, email and video marketing.

As demonstrated in the case study, The JHARKHAND government provides a list beneficiary to the Vodafone. The company compiles the list and transfer money through M-Pesa. The government use direct marketing through communicates with the beneficiary.

Relationship Marketing: Focus on the case study, the beneficiary collect money via Vodafone's agent with this customer based relationship which eradicates delay and bureaucracy by deliver the money to beneficiary to attain customer value and satisfaction.

Societal Marketing: As seen on the case study the M-Banking should result into cash out but at the time the service was not available. Therefore the Vodafone decide to collaborate with ICIC bank which allow cash out hence accomplish consumer, societal and company long run interest.


However the case study demonstrate that the USSD technology that uses network coverage without internet connection increase the market share by customer perform several transactions with recharge voucher and pay various bills.

With reference to the case study, the Vodafone will introduce the mobile app for M-PESA. This application will contribute towards advertising several product and services that offered under the company.

According to the case study the promotion of the M-Pesa uses integration direct marketing by spreading large number of agents about 75,00 across the country. The use of Vodafone network contributes to communicate to the various agents.



As observed from the case study, The M-Pesa service for Vodafone in India undergoes intensive growth through market penetration in such a way that the company fulfills customer needs and satisfaction. The Vodafone improves its product and services based on the demand of the customers by apply major interoperability of Vodafone and ICIC bank that merger to provide cash out to the customer through M-Pesa.

With reference to the case study the organization segment the market based on the urban demography which attain customer need and wants. The Vodafone uses integrative growth market strategies to segment its customers through acquisition, which delight customers demand. The performance of M-Pesa endorsed competitor to be market follower in such a way that Bharti Airtel and Idea Cellular adopts the M-Pesa service through Airtel Money and M-Wallet respectively.

The Vodafone in India continue to be loyalty with the brand through reliable service and network coverage to the extent that people were migrate from rural areas to urban to search for jobs. The marketing contribute highly on the distribution of services though customer influence on the word of mouth. The presence of IT contributes high performance of M-Pesa services for Vodafone in India through direct marketing.

Finally, with above analysis, contribution and evaluation of M-Pesa Services in India .The M-Pesa service succeed in India depend on the inclusion of Mobile Money.


The Vodafone must abide with the changing technology by innovate existing products and services and various marketing technique to cope with the competition and maintain leadership in market.

Below a listed recommendation;

(i) Develop different market strategy to accomplish a certain level of customer satisfaction.

(ii) Promote the offered products and services by explore various ways of distribution channel apart from vendor or agents.

(iii) Widen the network coverage to international level to maintain the brand equity.

(iv) Observe consumer buyer behavior by segmenting the market with respect to their needs.


...(download the rest of the essay above)

About this essay:

This essay was submitted to us by a student in order to help you with your studies.

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, . Available from:< > [Accessed 25.05.20].