Leader and Management
Leader and Management
Leader and Management
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In the year 1996 it entered into FTSE-100 becoming the youngest company ever to enter.
It is the Fifth largest customer in the world, with over 189 millions of customers as on December 2009.
Orange group serves more than 175 million customers in 5 continents. Today Orange is one of the most powerful
brand in the word. It is number 3 in Europe in respect of Tele communication and Number 1 in respect of Broad
band services.
On 1st of July 2010, Orange in UK and T – Mobile in UK became the UK's largest communications company.
Organizational strategy has two key dimensions: Conformance and Performance. The conformance dimension is
intended to ensure that an organization meets its compliance on accountability and assurance requirements,
while the performance dimension is to ensure that value is created and resources are utilized appropriately.
Oversight committees have been established for decades that monitor the conformance requirements. However,
it is important to recognize that there have been no explicit strategic oversight bodies until recently. Organizations
are starting to realize that these two dimensions need to be balanced appropriately. In the following paragraph we
will examine that we will examine how marketing plan affects and contribute to both dimensions of its
organizational strategy.
On the other hand, Marketing Plan is a document describing a firm's potential customers and a comprehensive
strategy to sell them goods and services. It is a written document that details the necessary actions to achieve
one or more marketing objectives.
The impact of organizational strategy is very foundation. Marketing plan is always made in the light of
organizational main strategy. It is a part of overall organizational strategy and works under the umbrella of overall
organizational strategy which will lead to achievements of the main objectives of the organization.
As mentioned above that organizational strategy has two dimensions conformance and performance, both
dimension are need to be consider at every strategic level. Orange is a public limited company and has to
maintain the discipline of cooperate governance and procedures of regularity body like “Ofcom” and Financial
service authority FSA therefore it has to make such marketing plan which ensure that it product and service
compliance with mentioned regularity bodies that covers the conformance dimension of organizational strategy.
Secondly, performance dimension of organizational strategy focuses a business plan that is increasing value
through great marketing mix, marketing strategy and product positioning which covers the performance
dimension of organizational strategy.
Executive Summary
SWOT Analysis
Financial Implications
An effective market plan should consider the key risks to the business and organizational overall strategy and
presents contingency plans to be followed to minimize the negative impact of these risks.
Most key risks involve competitive actions not directly addressed in the marketing plan, possible internal
operating problems or the failure of the marketing programs to deliver what is expected. The impact on the volume
base or spending rate is then estimated and a specific contingency plan to overcome the situation is proposed. It
also includes an explanation of what performance measures and levels will trigger implementation of each
contingency plan. Close monitoring of these measures is consequently an important control function.
SWOT analysis :
SWOT analysis is one of the major components of a plan
It is the Strength, Weakness, Opportunities and Treats of the Organisation; It is the strategic planning method
which helps the marketers to focus on key issues.
Marketing Strategy of Orange: The marketing strategy of Orange will be explained at the later stage of this work
by using Ansoff growth matrix strategy model. It is also regarded as one of the important component of the plan,
because it states what Orange is doing in terms of its business nature.
4 p’s of Orange : 4 p’s which are Product, Price, Place and Promotion also forms an important basis of the plan, It
will help orange to position itself in the market. These 4 p’s are an important parameters in the hands of Directors
and Marketing manager to control it but subject to the internal and external environment constraints.
Financial Implications: Any activity undertaken or performed in the business is related financially or in other
words, all the activities performed within the business has financial implications.
The marketing plan should also show how the marketing strategy had changed the organisation financially in
terms of planning and development.
Orange has further divided its three main products which are Pay as you go talk plan, Pay monthly talk plan and
broadband service into various different types of sub-product to cater the needs of the customer.
For e.g. Panther pay monthly plan provides unlimited texts, Unlimited Internet for text and Internet lover whereas
Racoon pay monthly provides unlimited landline calls.
Orange had designed and altered its product as per requirement of each and every customers. This is made in
order to mitigate the choice and preference of customers which differs from person to person.
Product Diversification
Orange should also diversify its business current other business of Orange can be
explained as follows.
Orange has diversified its business recently from Telecommunication to different sector in order to earn extra
revenue to the group.
Such as:
- Orange World
In association with marble cards (HFC) group Orange is offering now credit cards,
Orange should also look into the Advertising business, because it has millions of customers which is a key point
and its strength. Orange should look this business seriously as it will help to generate additional revenue.
Orange world
Orange world is the internet portal giving the best of internet service on your mobile phone.
Its gives the access to the web as if you are using your computer and internet at your home
You can now download your favorite music, videos, play online games, download games, access to the latest
news, do shopping, book your favorite holiday etc.
Executive Summary
Introduction/State of Business
Analyses
Implementation (4/7Ps)
Financial Implications
Executive Summary
Customer base increased by 6% in the year 2009 with nearly 200 million customers all over the world, In Europe
there are about 20.7 million mobile telephone customers.
In October 2009 Luxembourg became the 31st country which uses Orange services.
To sustain its long-term growth, the Group needs to be present in every key link in the value chain. This will
enable Orange to defend its positions against other major market competitors.
Orange is now operating in 32 countries compared with 19 countries in 5 year ago time.
Environmental Commitment
20% reduction in CO2 emissions between 2006 and 2020.
25% renewable energies for new mobile stations by 2015 (notably in Africa).
80% of Group scope engaged in Environmental Management System (EMS) process by 2015.
State of Business
The level and quality of business and financial performance were impressive, given the very difficult environment
the France telecom faced from both a macroeconomic standpoint and in terms of regulatory pressures. The
Group maintained its revenues, excluding the impact of regulatory measures, and generated cash flow that
exceeded its announced objective.
Orange launched service in Armenia and Uganda last year. With operations in Jordan since 2000, it was awarded
the country’s first 3G licence and will begin marketing attractive solutions in the first a quarter of 2010.
Analysis
Market Analysis
SWOT
Strength
Market Penetration
Product Innovation
Environmental Commitment
Weaknesses
Opportunities
Orange can concentrate on its broad band service and improve in major parts of UK.
Threats
Stiff completion in the telecommunication industry (Competitors) all around the world.
The model has four main objectives where the company does it business or operates
Market Penetration
Product Development.
Market Development
Diversification.
(Figure 1.1 shows the example of Ansoff growth Matrix model)
Existing Products
New Products
Market Penetration
Product Development
Market Development
Diversification
Existing
Market
New Market
Objectives of Orange
The two main objectives of Orange is
Orange sells its Mobile and Broadband services in the market where there the competition is very high, currently
in U.K market Orange faces tough competition from the following companies.
Implementation
I) Key Products
Pay as you go products: These are the sim cards which are offered to customer, it need to top up every time with
a minimum of £5 pounds in order to make phone calls each cost costs up to 20p per minute and 10p on texts.
Orange offers various pay as you go products each products has its own specialty all its pay as you go products
in UK can be explained as follows.
Camel. (Good for International call users, calls to more than 50 countries from just 5p per minute.)
And again the above animals are used for the pay monthly mobile contracts with a different specialty each of
them.
Panther (Unlimited text, Unlimited Internet, Satellite navigation with Orange maps, 50 picture messages.)
Broadband services
Orange has categorized its broadband services into home broad band and mobile broad band. Home broad band
is usually purchased by families for Internet browsing,
Home Ultra (from £10.5 per month plus £10.50 Orange Line rentals)
Home Max (Unlimited superfast broadband from £6.50 per month plus £10.50 Orange line rentals inclusive
evenings and weekend calls)
Home Select (Your own existing line rentals from £9.00 per month)
They provide a dongal which is a kind of a memory stick and can be easily plugged in the laptop for Internet use.
Again it uses the animals to identify its packages in broadband, each animal has different specialty.
Following are the broadband packages which are made available to the customers
Price
Orange has decided its price according to mobile or broad band service it provides,
varieties of prices ranging from product to product.
Its pay monthly product starts from £15 a month to £75 a month, this pricing is totally depends upon the usage
and selection plan by the customer.
Place
Orange is making is service available in many parts of the world with the network reach to more than 21
countries, including all Europe, some parts of Asia, Middle East and Africa.
Promotion
Orange UK uses various techniques to promote its products and benefits to its customers
One of its important and long running promotion activity is Orange Wednesday cinema tickets, which are buy one
and get one free for all Orange customers in UK.
Orange also does it advertisement with Yahoo and Hotmail users, whenever a user is logged in the system using
yahoo mail or hotmail an advertisement pop up runs which informs the users about the current offers available
and forthcoming mobile phone.
In 2009 the Orange Foundation supported programmes in 31 of the Group’s host countries in Europe, Africa and
Asia. These initiatives promote schooling of girls and provide scholarships. Most of this work is part of broader
projects aimed at economic integration for women, including the “Feminine Promotion” programme in Vietnam.
Orange still continues its long running advertisement in UK’s Cinema hall in almost all parts of the country.
Financial Implications
Orange has adjusted its Capital Expenditure with relation to the economic condition in the year 2009 while also
taking care of the strategic area such as 3g mobile network and acquisition of new licenses in the emerging
countries.
The launch of a quadruple play will strength Orange’s position It is an offering that combines fixed, Internet,
mobile and TV services.
Their another priority is optimising investments in marketing and sales, a key differentiating factor, coupled with
the introduction of value-added Orange Care services for mobile customers. In addition, the Group will embark on
the first phase of investments in its fibre-optic network in France
The Marketing plan discussed above will help Orange to achieve its above objectives in following ways
Different varieties of product lines will help to focus different types of customers demand and requirement with
regards to market segmentation which will increase number of customers.
The Unique facilities to customers like Free Cinema tickets (Orange Wednesdays), International Access number
for free International calls will attract new customers who are making International calls frequently and one who
are movie lovers.
The Collaboration with Apple company for iphone4 will also give competitive advantage as it currently only
available with O2, Vodafone and Orange.
The product Diversification also helps the orange to generate additional revenue, And can also attract customers
from subsidiary business of orange to its main business for e.g. Introducing Orange
Credit card in the market.
Therefore it will be agreeable on the basis of its strong formation and projection.
Of Orange.
The effectiveness of Marketing plan can be reviewed by conducting Customers survey by phone, emails, texts,
market surveys etc.
Review can also be carried out by measuring Orange’s performance before and after implementation of
Marketing plan.
Also by monitoring the telephone conversation between customer service department and customers of Orange’s
related with queries in order to identify the number of response of the customers regarding their satisfaction or
dis-satisfaction with Orange products and to identify potential opportunities and weaknesses in all line of
Orange’s product .
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