Vodacom Integrated Report 2017

Vodacom Vision 2020

We will develop a deep insight of our customers’ needs

and provide compelling propositions, by:

Using big data and analytics to enhance our understanding of

consumer behaviour and aspirations at a segmented level;

Democratising Internet access through segmented network

rollout, greater penetration of the right smart devices at the

right price, increased bundle engagement, and delivering

compelling data content and other digital products

and services; and

Driving growth within enterprise by obtaining valuable insights

into various verticals, and developing compelling solutions.

Understanding our customers at a

segmented level

Having a deep understanding of our customers’ needs and

behaviours, and developing personalised propositions across

consumer segments, is key to our ambition of being a leading

digital company that empowers the digital lives of our customers.

In delivering on this ambition, we are developing

propositions in the following five segments:

Youth (Vodacom NXT LVL):

Our aim is to become the digital

destination for young South Africans. Focusing initially on

18 – 25 year olds, we are offering a compelling value proposition,

including data bundles and services relating to social media,

music, gaming and social data sharing, supported by

personalised offers with ‘Just 4 You’. Since launch in May 2016,

we have achieved impressive results with more than 1.5 million

youth customers on the platform with much stronger ARPU

uplift and more data usage.

High Value (RED):

Targeted at the higher-value market, our

focus is on offering the best-in-class service experience,

providing data-rich offers with seamless international roaming

supported by lifestyle rewards. We seek to drive multiple device

penetration, launch iconic devices and extend the content

portfolio, while excelling in service recognition.

Mass Aspirers:

Our focus in this segment is on growing 4G

and contract/top-up users, and increasing data usage and

smartphone penetration through personalised best value

offers. We will be driving penetration of the MyVodacom app

through differentiated app offers and a simplified and improved

‘Vodacom Smart’ portfolio.

Emerging Market (Siyakha):

Focused on low-spend customers

in the emerging prepaid segment, our Siyakha platform

promotes digital inclusion through affordable price packages,

entry-level smartphones, and targeted offers and content. These

include very low-cost voice and data bundles, affordable funeral

cover, and a delayed delivery Video Play service offering music

videos and delayed showing of TV programmes and sports

events. Through Siyakha we also offer zero-rated content on

specific education, health and career websites, as well as a free,

text-based version of Facebook. To build on the existing health

category, in March 2017, we launched ‘Mum and Baby’ with the

objective of digitalising pregnant women and women with

young children, focusing on providing them with personalised

health tips during and after pregnancy.

Family:

In seeking to be the preferred provider of communication

and lifestyle services for families, we are developing differentiated

content and lifestyle offers in consumer IoT, video, gaming,

security and insurance. We are driving the rollout of fibre, and

developing targeted communication and distribution channels

aimed at the household.  

In each of these segments we have identified and prioritised specific

opportunities at a regional level, and are developing targeted

propositions to secure market leadership. This is being supported

by introducing decentralised segment-led structures within the

Vodacom Group, developing effective pricing transformation

strategies and targeted brand association partnerships, and

increasing the use of big data analytics to enhance our understanding

of consumer behaviours and needs at a segmented level.

Monetising mobile data

We have made good progress this year in delivering on our

ambitions for monetising data and democratising Internet access

amongst customers. Our approach to capitalising on data

segmented

propositions

We will develop a deep insight of our customers’ needs,

wants and behaviours, and provide propositions to lead

in chosen segments.

Our strategic performance

Vodacom Group Limited

Integrated report for the year ended 31 March 2017