Research Question(s)/ Aim(s) and Objectives Research Question(s) 1. What is the USP of O2 and how does O2 communicate this to the customers through its marketing? 2. How does O2 integrate the USP to develop a competitive edge over the business? 3. What marketing plans does O2 employ? 4. How O2 can improve its marketing to create an edge over competition? Aim(s) and Objectives The aim of the paper is to understand how O2, the leading UK provider of mobile phones and broadband has achieved its position through its marketing strategy. The idea is to identify the Unique Selling Proposition of O2 and to define the marketing plan of O2 with respect to its communication of the USP through the different marketing channels.
The marketing plan of O2 will later be compared and contrasted with other providers of mobile phones and broadband that is perceived as the direct competition for O2. Through this, the research paper aims to analyze and evaluate the effectiveness of the marketing strategy and plan developed by O2. Once the analysis is reviewed, the next and final part would be to develop an improved marketing plan for O2.
The research paper will introduce marketing strategies that O2 can implement with respect to the changing competitive landscape and the changing demographics and needs of their target market. Literature Review ‘O2 is a major international brand serving almost 24 million customers and offering roaming services in160 markets’ (Irish Time, 2006). O2 began its operations in 1997 from Ireland and later spread out in UK, Germany and other European countries but its presence in UK is the strongest, given the huge population base of UK and the extra need of telecommunication in the country, because of its corporate and trade background.
O2 has a diverse product portfolio that can be loosely categorized in three parts: Voice Services: voice calls, voicemail, conference call etc Data Services: Multimedia messaging, SMS, email etc Internet Services: online shopping, O2 account, broadband etc At this point, the target market for O2 is divided in two categories: personal users and business users. These users are categorized differently since they use the service provided by the company in different manners, differing in amount and timing of usage basically.
The main target market for personal users is the young target market that falls between the ages of 15-24. Among this target market, O2 has been able to gain penetration of almost 93%. Other than this group age of target market, O2 has also focused on the mass market through its advertising that does not focus on just one group of market but rather all the people interested in buying cell phones and internet services (Anon. , 2011).
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