O2 Marketing Strategy & Marketing Mix (4Ps)

Published in Services category by MBA Skool Team

Here is the marketing strategy of O2 which analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).

O2 Product Strategy:

The product strategy and mix in O2 marketing strategy can be explained as follows:

O2, a leading telecom company, offers products and services both to its customers. The tangible offerings by the brand are the mobile phones and the intangible offerings are the phone services. These are covered in its product strategy in its marketing mix.

The services by O2 include calls(voice/video), text, web browser and download/streaming data on their network. O2 provides business apps to its customers. Some of the apps are my O2, O2wifi and O2 drive.

O2 has established itself as a trustworthy and quality brand which led to O2’s increased market dominance. O2’s brand image and association with Apple, Samsung and Sony has also thrived the business for the company. Primarily, O2 has personal and business market segment include:

• Phone and tablets

Apple, Samsung, One Plus, Sony, Windows, O2 Recycle.

• Business Apps

My O2, O2 learn, O2 travel, O2 World Chat, O2 Academy, Priority, O2 Drive, TU Go, O2 WIFI are listed in the portfolio.

• Accessories

Smart watches, Fitness bands, Memory, Storage, Case and protection, car and travel, Bundle packs

Image: Wikimedia

O2 Price/Pricing Strategy:

Below is the pricing strategy in O2 marketing strategy:

O2 provides different tariffs system for mobiles and broadband. The O2 company utilises differential pricing that enables the company to maximise seller surplus and tap all the customers by offering different products at different prices.

The pricing strategy can be explained as follows. The customers can also choose among the plans in available budgets to them. The company gathers data regarding the disposable income, gender and age groups of its target market. Based on the information available it prices the products and services. For O2's 4G Service, the company employed skimming price strategy. The combination of high price and high promotion helped the company gain market share. This strategy was applied when O2 first introduced the Apple products. The result was that this effectively attracted the customers and also increased the brand awareness among them. This strategy also helped O2 gain higher margins.

O2 Place & Distribution Strategy:

Following is the distribution strategy in the O2 marketing mix:

In United Kingdom, the brand O2 is ranked the second largest in the telecom industry. The company also operates in Germany. To offer better products and services to the customers at the right time, O2 has worked a lot on its distribution channel. The distribution channel of the company is its strength.

The company has over 450 retail outlets.

O2 Promotion & Advertising Strategy:

The promotional and advertising strategy in the O2 marketing strategy is as follows:

Sponsorship: Since 1995, O2 sponsors Rugby in England. Priority customers are offered the privileges and opportunities such as stadium tours, dining with the players, taking home the match ball or being a mascot on match day. The O2, Priority and O2 Academy Venues are also sponsored by O2. O2 offers its customers to buy premium tickets of the Rugby match on its official website. The O2 is the most popular entertainment avenue and it was started in 2007 when O2 partnered with AEG. Gigs and entertainment shows are organized and the tickets for 02 are also available at official website. O2 uses social media, Facebook, Twitter, You Tube, Flickr, Instagram, The blue, O2 Community for promotion. Over the years, O2 has its presence over social media for digital advertisements.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of O2.


O2 aggressively promotes its products and services. The revenue generation is also dependent on the advertisement campaigns. This promotion creates awareness in the customers regarding the company and its offerings.

Physical Evidence:

O2’s registered office is at Berkshire in United Kingdom. The company’s official websiteprovides all insights about the company’s service offerings. The company has 450+ retail stores. O2 has four offices in United Kingdom. The company is planning to roll out stores of future which will enhance the customer experience further.


O2 has more than 23 million customers. Mark Evans is the CEO of the company. The company’s retail staff serves all the 450+ stores of the brand. The staff creates good experience for the customers by educating them about digital. The company claims to have recruited 450+ apprentices and interns. This covers the marketing mix of O2.

About O2:

O2 is a reputed company which is owned by its parent company Telefonica, founded by John Carrington in 1985. O2 is a leading player in the digital communication industry in UK. The company is listed in England and Wales, and it provides its services to more than 20 million customers. The company offers 2G, 3G and 4G networks and other services across United Kingdom. There are more than 450 retail stores of the company.

O2 is the second largest telecommunication service provider in United Kingdom. The company is awarded No.1 for Network Coverage and No.1 is customer satisfaction.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to O2. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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