Current Brand Positioning and Target Market of Vodacom Essay

3510 Words Apr 15th, 2014 15 Pages
Vodacom Memo
Thomas McQuaid
Lea Niglio-Parein
Paola Gonzalez-Zabala
Vodacom Project 1
3/12/14

The purpose of this memorandum is to analyze and explain the current brand positioning and target market of South African company, Vodacom, from previous commercial advertisements. After having analyzed the current target market and brand position we would recommend a new target market and position for Vodacom of South African’s age range, 15-55 (58.7 % of total population) and include the following segments within the market: white and black South Africans, business adults and corporations, while still including the younger more technologically friendly age group 15-24 (38.1 % of total population). Analysis
A detailed analysis on
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The result of reducing tariffs is more competition and reduced cost structure within the industry. Because Vodacom used the first mover advantage when entering the South African market, they can use the tariff changes as an advantage. If Vodacom can continue to make their product cheap and readily accessible the tariff reduction could just help the company maximize profits.

Economic Factors
The CIA world database reports that South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth. GDP fell nearly 2% in 2009 but has recovered since then and is growing at a rate of 2.5%. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. As the economy declines it decreases the amount of business for the company, which directly affects Vodacom. Now, in the age group of 15-25 is a 49%

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