strategic management on vodafone
TRANSCRIPT
EXECUTIVE SUMMARY
The Vodafone Group provides a full range of mobile telecommunications services, including voice and data communications. Vodafone has equity interests in 27 countries and partner networks in a further 27 countries with almost all the group's mobile subsidiaries operating principally under the brand name 'Vodafone'. Turnover for year end March 2006 was £29.4 billion.
A big issue for companies like Vodafone in the mobile phone market has been how to differentiate. New, breakthrough products are critical to win in this highly competitive sector. However, the industry has traditionally been technology-led, rather than customer-led. This has meant a pronounced lack of competitive differentiation.
Vodafone had come to realise that its traditional concept testing was not working hard enough. While hundreds of product concepts were tested, there was no standardised testing, no benchmarks and no way to compare one concept with another.
To overcome this, the Vodafone Global Insights team developed the Differentiation Potential System (DPS). This was an end-to-end system designed to put customer insight at the heart of product development. It was a complete business process to ensure that the voice of the customer was integrated into the way products were developed and priorities set.
By the end of 2005, the system was providing Vodafone with the common currency by which teams could measure the success of their product ideas. In addition, highly detailed diagnostics meant that further development on every individual product could be based on understanding customers. Even more significantly, it changed the way the company does business by having a profound effect on the way it perceives and reacts to customer needs.
VODAFONE GROUP PLC
Type : Public limited company
Founded : 1991
Headquarters : London, United Kingdom (Head office)
Newbury, Berkshire,
United Kingdom (Registered office)
Key Person : Gerard Kleisterlee (Chairman),
Vittorio Colao (CEO)
Industry : Telecommunications
Products : Fixed line and mobile telephony,
Internet services, Digital television
Revenue : £46.417 billion (2012)
Employees : 86,373 (2012)
Website : www.vodafone.com
MOBILE INDUSTRY
Developments in communication technology have enhanced the mobile industry,
making it easy for people to remain connected to their friends, families and offices.
Mobile, or wireless, technology refers to any type of portable device, such as laptop
computers, cell phones and personal digital assistants.
Function The mobile industry gives users the ability to take their communication devices with
them on the go. The goal of wireless technology is to allow people to access
information without being tied to one location.
Benefits The biggest benefit that the mobile industry offers consumers is flexibility. With mobile
technology people can stay in touch with one another from any place in the world. In
the business world, businessmen and women rely on the portability of mobile devices so
that they may work remotely and enhance their efficiency.
Risks A main risk associated with mobile technology is the potential for unauthorized
individuals, or "hackers," to illegally access sensitive electronic information. To prevent
or minimize the chances of this happening, users are advised to password protect their
mobile devices. Laptop computers and even cellular phones have locking options that
require a password to gain access into the device
BACKGROUND Vodafone entered India in December 2005
Acquired 10 percent stake in Bharti Ventures Limited (Bharti Airtel)
Successfully rebranded 'Hutch' as 'Vodafone„
Vodafone Essar started expanding its presence in India
Rebranding included
“Change is good...” Baseline - “Hutch is now Vodafone”
Earlier Campaigns: Happy to help, Friend circle, Cheaper SMS, “Amar Chitra Katha”
Alert.
INTRODUCTION
Orange was formerly known as France Telecom. The French government owns more
than one-quarter of Orange. The EE brand picks up criticisms from other French state-
owned companies such as Electricity Company EDF and Areva. Areva is one of the
world’s top nuclear energy companies and is involved in every step of nuclear power
production from uranium mining right through to recycling used fuel.12
The German government and German state-owned development bank KfW together
own about 32% of Deutsche Telekom.
UK Company Vodafone is infamous for stories about its tax avoidance. Vodafone, the
world’s second largest mobile phone company by revenue, paid no corporation tax in
the UK for a second year running in 2012. However in the same year the company
distributed £4.8bn in cash dividends to shareholders (more than any other British
business) and paid chief executive Vittorio Colao £11m.11
The firm made a £294m operating profit in Britain in 2012, but was able to transform
that into a loss by claiming UK network investment and interest payments wiped out
corporation tax liabilities for the year to April.11
Vodafone took the biggest tumble this year in Green peace’s ranking of IT companies’
climate change policies because it had not continued to publicly advocate for renewable
energy and greenhouse gas emissions targets.
Cheung Kong is a Hong Kong property conglomerate which controls around 50% of
Hutchison Whampoa, a firm with operations in ports and container terminals, retail,
telecom, and oil. Hutchison owns the ‘3’ network provider and also owns Husky Energy
Inc, which has substantial involvement in the oil sands projects in Alberta, Canada. For
that reason Ethical Consumer called a boycott of all subsidiaries of Cheung Kong
including its most obvious consumer boycott target, Superdrug stores.
Vodafone Group Plc is a British multinational telecommunications company
headquartered in London and with its registered office in Newbury, Berkshire. It is
the world's second-largest mobile telecommunications company measured by both
subscribers and 2011 revenues (in each case behind China Mobile), and had 439 million
subscribers as of December 2011.
Vodafone owns and operates networks in over 30 countries and has partner networks in
over 40 additional countries. Its Vodafone Global Enterprise division provides
telecommunications and IT services to corporate clients in over 65 countries. Vodafone
also owns 45% of Verizon Wireless, the largest mobile telecommunications company in
the United States measured by subscribers.
Vodafone has a primary listing on the London Stock Exchange and is a constituent of
the FTSE 100 Index. It had a market capitalisation of approximately £89.1 billion as of
6 July 2012, the third-largest of any company listed on the London Stock Exchange. It
has a secondary listing on NASDAQ.
Vodafone is a world leading mobile telecommunications company. Vodafone provides a
wide range of communication services, including voice calls, SMS text messaging,
MMS picture and video messaging, internet access and other data services. The group
has 221 million direct customers including private consumers and corporate customers
in diverse markets around the world.
Vodafone is the world’s largest mobile telecommunications community. Employing
over 86,373 staff and with over 439 million subscribers as of December 2011.
Vodafone owns and operates networks in over 30 countries and has partner networks in
over 40 additional countries.
Vodafone is a public limited company with listings on the London and New York stock
exchanges.
2nd Largest Telecommunication Company By subscribers & 2011 revenue.
MISSION
We are a global communications business giving people the power to connect with each
other – and to learn, work, play, be entertained and broaden their horizons – wherever
and however they choose.
The numbers speak for themselves.
At the last count, over 404 million customers use our services in more than 30 countries
around the globe.
They choose Vodafone because we stand for great coverage, a reliable connection and
good value as well as a passion for improving the customer experience.
Vodafone want to be admired for empowering people making their lives simpler, easier
and a good deal richer and more rewarding. These are the four pillars of the
Vodafone Way which forms the foundation of our culture:
Customer obsessed: They are passionate about exceeding customer expectations, understanding their needs
and earning their increasing loyalty.
Innovation hungry: They promote a climate that fosters innovation and calculated risk taking to develop
new services and ways of working.
Ambitious and competitive: They bring energy and passion to our work, setting ourselves high standards. We
measure our success compared to our competitors not just to our plans.
One company, local root: They operate as one company across diverse teams and Markets to achieve the best
outcome for our customers. They have an international brand and values, but are part of
the local community.
VISION
A Scale Data Company
A Strong Player In Enterprise
A Leader In Emerging Markets
A Selective Innovator In Services
A Cost Efficient Organisation.
MARKETING OBJECTIVE OF VODAFONE
Vodafone endeavours to ensure that customer needs are at the centre of all of the
Group's actions. The Group seeks to use its understanding to deliver relevance and
value to each customer and communicate to them on an individual, household,
community or business level, with the ultimate aim of encouraging customers to stay
with Vodafone for longer and use and promote the Group's services more.
Vodafone is a customer knowledge driven organization which aims to make the most of
its deep customer understanding by approaching customers with the most appropriate
product through a channel they enjoy at a time that is best for them. This approach
firmly places Vodafone as an organization that listens to its customers, delivers value
and enhances their experience.
The marketing objective of Vodafone is to be the top mobile service provider of India
by the end of the year 2010. Their strategy for the same includes innovating and deliver
on customers' total communications needs, educating customer about various products
and cellular telephony, creating brand awareness and enhancing attitudes thereby
influencing purchases.
STRATEGY FOLLOWED BY VODAFONE
I. CORPORATE LEVEL STRATEGY
The Company was incorporated under English law in 1984 as Racal Strategic Radio
Limited (registered number 1833679). After various name changes, 20% of Racal
Telecom Plc share capital was offered to the public in October 1988. The Company was
fully demerged from Racal Electronics Plc and became an independent company in
September 1991, at which time it changed its name to Vodafone Group Plc.
Since then we have entered into various transactions which enhanced our international
presence. The most significant of these transactions were as follows:
The merger with Air Touch Communications, Inc. which completed on 30 June 1999.
The Company changed its name to Vodafone Air Touch Plc in June 1999 but then
reverted to its former name, Vodafone Group Plc, on 28 July 2000;
The acquisition of Mannesmann AG which completed on 12 April 2000. Through this
transaction we acquired businesses in Germany and Italy and increased our indirect
holding in SFR;
Through a series of business transactions between 1999 and 2004 we acquired a 97.7%
stake in Vodafone Japan. This was then disposed of on 27 April 2006;
On 8 May 2007 we acquired companies with controlling interests in Vodafone India
Limited (‘VIL’), formerly Vodafone Essar Limited, for US$10.9 billion (£5.5 billion);
and
On 20 April 2009 we acquired an additional 15.0% stake in Vodacom for cash
consideration of ZAR 20.6 billion (£1.6 billion). On 18 May 2009 Vodacom became a
subsidiary.
Other transactions that have occurred since 31 March 2009 are as follows:
10 May 2009 – Qatar: Vodafone Qatar completed a public offering of 40.0% of its
authorised share capital raising QAR 3.4 billion (£0.6 billion).
The shares were listed on the Qatar Exchange on 22 July 2009. Qatar launched full
services on its network on 7 July 2009.
9 June 2009 – Australia: Vodafone Australia merged with Hutchison 3G Australia to
form a 50:50 joint venture, Vodafone Hutchison Australia Pty Limited.
10 September 2010 – China Mobile Limited: We sold our entire 3.2% Interest in China
Mobile Limited for cash consideration of £4.3 billion. 30/31 March 2011 – India: The
Essar Group exercised its underwritten put option over 22.0% of VIL, following which
we exercised our call option over the remaining 11.0% of VIL owned by the Essar
Group. The total consideration due under these two options is US$5 billion (£3.1
billion).
16 June 2011 – SFR: We sold our entire 44% interest in SFR to Vivendi for a cash
consideration of €7.75 billion (£6.8 billion) and received a final dividend from SFR of
€200 million (£176 million).
1 June/1 July 2011 – India: We acquired an additional 22% stake in VIL from the Essar
Group for a cash consideration of US$4.2 billion (£2.6 billion) including withholding
tax. 18 August 2011 – India: Piramal Healthcare Limited (‘Piramal’) purchased 5.5% of
VIL from the Essar Group for a cash consideration of INR 28.6 billion (£368 million).
9 November 2011 – Poland: We sold our e2ntire 24.4% interest in Polkomtel in Poland
for cash consideration of approximately €920 million (£784 million) before tax and
transaction costs.
8 February 2012 – India: Piramal purchased a further 5.5% of VIL from the Essar
Group for a cash consideration of approximately INR 30.1 billion (£399 million) taking
Piramal’s total shareholding in VIL to approximately 11%.
HISTORY
1984 - Incorporated as Racal Strategic Radio Limited
1988 - Partial listing on the LSE
1991 - Demerger from Racal and full listing on the LSE
1999 - Merger with Air Touch Communications
Formation of Verizon Wireless, Vodafone holds a 45% stake
2000 - Acquisition of Mannesmann AG
2006 - Acquisition of Telsim (Vodafone Turkey)
Disposal of Vodafone Japan
2007 - Acquisition of controlling stake in Vodafone Essar(Vodafone India)
2009 - Vodafone Australia merged with Hutchinson 3G Australia
Vodacom Group became a subsidiary
2010 - Sale of interest in China Mobile
2011 - Sale of interest in SFR
2012 - Acquisition of Cable & Wireless Worldwide
2013 - Acquisition of Kabel Deutschland Announced proposed sale of US Group, incl.
Verizon Wireless
TURNAROUND Turnaround is a strategy of “cost reduction and asset reduction by a company to survive
and recover from declining profits” (Pearce and Robinson, 2009, p. 224). The company
has continuously increased the debt ratio due to its aggressive global geographic
expansion, and it has recently taken higher priority in investing in existing businesses to
improve ARPU from existing customer base and expanding its businesses to new
markets where it can expect immediate turnaround rather than high returns in the long
term. The company has thus 14
Implemented turnaround strategy and initiated One Vodafone program to achieve
streamlined cost effectiveness and efficiency to improve bottom line performance.
II. BUSINESS LEVEL STRATEGY
Strategic Planning :-
In April 2005, Vodafone approved a five-year CR plan to help the company reach its vision of being one of the most trusted companies in the markets it operates by 2010. The CR strategy sets priorities in the following areas:
Maintain high ethical standards;
Understand and respond to our stakeholders' priorities;
Ensure our operating standards are consistent across the Group;
Deliver on our promises in three key areas:
Responsibility to our customers
Reuse and recycling of mobile phones
Energy and climate change; and
Capture the potential of mobile to bring socio-economic value through access to
communications.
Local operating companies identify areas and activities to help contribute to meeting
these strategic priorities.
Business Planning:
Local operating companies work to the strategic priorities identified in the corporate CR
strategy, and to the established suite of quantitative and qualitative KPIs for the
organization (see governance section above). Every six months, the Group CR team
runs a workshop for CR managers and issue owners from all of Vodafone’s operating
companies. The workshops provide the opportunity for colleagues from around the
world to meet, develop CR strategies and share best practices. Affiliates (companies
where Vodafone does not own a controlling share) and partner networks are also invited
to attend these workshop, as well as external stakeholders.
Issues of high priority that might emerge from these workshops and require further
development by the company would result in a CEO from one of the local operating
companies sponsoring the issue, and then bringing together people from throughout the
company to further discuss the issue and define policies, guidelines/standards and KPIs
to manage the issue effectively. Once approved, these would then be rolled-out across
the company. These policies, guidelines/standards become tools to help local operating
companies operate consistently according to corporate strategy.
Vodafone also uses a Group-wide issues management process to ensure that CR issues
are fed into the company’s long-range planning across local operating companies. The
process involves each operating company and most
Group functions reporting to the Corporate Affairs Board1 on a quarterly basis the most
significant local CR issues. The Board ensures that someone within the business is
assigned to develop appropriate responses to each issue, feeding into strategic decision-
making. This process helps Vodafone ensure that its strategic decision-making is taking
full account of social trends and anticipating new issues as soon as possible.
Business Development :
Whenever Vodafone considers a merger and acquisition (M&A), a Global CR team
member is included in the team that conducts a due diligence review. Vodafone
considers a range of CR issues relating to the country of operation, such as the local
supply chain, environmental regulations or levels of bribery and corruption, as well as
reviewing the acquisition’s existing CR policies and programs. The M&A team
incorporate in the country report the information provided by the Group CR team
regarding the main CR issues Vodafone will be faced with, what the local company is
currently doing, and if Vodafone might face negative reputational impacts by acquiring
the local company.
In terms of product development, Vodafone is increasingly working at integrating CR
into its decision-making. Beginning in 2002, Vodafone began considering how its
products and services could meet societal needs instead of just customer needs related to
network coverage for example. The company began by commissioning third-party
research to understand the impacts of mobile phones. Research indicated that there was
a link between growths in GDP and increases in mobile phone penetration. Social
research identified that people with phones were impacted and empowered, having a
stronger sense of well-being, an increased social network and increased economic
status.
Vodafone is also working with partners such as BT, HSBC, Unilever, etc. to address the
needs of the bottom of the pyramid of the world’s population. This is an area where
Vodafone’s local operating companies have a crucial role to play by identifying the
local societal needs. Local operating companies send proposals that are considered by
the Steering Groups in Research and Development (R&D). Five-six ideas have been
considered in the last six months; full business cases are built and if approved, the
company moves forward on the idea, conducting a trial, usually through partnering with
a development agency and NGOs to implement.
Risk Management :
Vodafone’s CR team feeds into three unique processes that help the company to manage
CR risks. The company has an issues management process (described in business
planning section above) that helps to identify potential implications to Vodafone of
issues that might impact the business and become a risk.
The company also uses a reputation risk management program that identifies the views
of stakeholders, media coverage and legal views. It is run by Corporate Affairs and
helps to define issues that could pose a risk to Vodafone and if considered a big risk and
impact, then the company would start to build a program to deal with the impact.
The third risk management approach taken by the company that incorporates a range of
CR questions is Vodafone’s internal audit control questionnaire which is completed by
all local operating companies once a year and signed off by their CEOs. This
questionnaire is part of the company’s formal risk identification process. The results are
reported to the Vodafone Group Plc Board of Directors.
Each local operating company will use the same processes but the results will be unique
reflecting local variables. Vodafone Romania, for example identified, identified RF
fields and health, products and services for people with special needs, waste
management and energy use as priorities in the 2006 financial year. Vodafone Greece
was approached a number of years ago with a proposal to provide gambling services
through mobile phones. In applying CR thinking, considering the social impact and the
potential negative impact on the company’s reputation, Vodafone said no to this
opportunity.
Project Management :
Vodafone has developed social assessment criteria to look at new products and services
beyond net present value. The checklists used to assess new products propositions
include a specific section on CR and direct Vodafone staff to consider certain CR
factors (e.g. social benefit) and apply a score. If scores are below a certain threshold,
then project/product/service/supplier engagement will not go ahead as these may impact
in the reputation of the company and the brand.
For example, a women’s non-profit organization in Egypt approached Vodafone with a
project that would allow farmers to easily access market prices. The project involves
women going to different local markets in their area and using mobile phones to report
back to a central location on the prices of various products. Farmers can then use a
mobile phone and enter the product to sell and the phone will report the prices in the
different local markets so the farmer can go to the market where there are higher prices
and therefore make more profit selling for the highest prices avoiding unnecessary trips
to check prices. Vodafone does not receive any real financial benefit from this kind of
project, but the social benefit for the farmer is compelling and Vodafone believes it will
lead to increased customer loyalty and therefore decided to move forward trailing this
project.
III. FUNCTIONAL STRATEGIES
A. THE MARKETING MIX
A longer term marketing strategy is underpinned by careful planning and a successful
marketing mix. The marketing mix is a combination of many features that can be
represented by the four Ps:
product - features and benefits of a good or service
place - where the good or service can be bought
price - the cost of a good or service
Promotion - how customers are made aware of a good or service.
1. PRODUCT
A product with many different features provides customers with opportunities to chat,
play games, send and receive pictures, change ring tones, receive information about
travel and sporting events, obtain billing information and soon view video clips and send
video messages.
Vodafone live! Provides on-the-move information services.
The products offered by Vodafone are prepaid phone services World Calling Cards
Gulf Calling Card
Magic Box handsets
iPhone 3G
Vodafone Post paid
Handy phone
Vodafone PCO.
The services offered by Vodafone are Tunes &
Downloads
Entertainment
Devotional
sports, News &
Updates
Call Management Services
Astrology
Finance
Travel
Internet Bonus Card
Mail, Messaging &
Dial in Services
Bill Info
Vodafone Business Solutions
Vodafone Tuesdays
2. PLACE
Vodafone UK operates over 300 of its own stores.
It also sells through independent retailers e.g. Carphone Warehouse.
Customers are able to see and handle products they are considering buying.
People are on hand to ensure customers’ needs are matched with the right product and to
explain the different options available.
3. PRICE
Vodafone wants to make its services accessible to as many people as possible: from the
young, through apprentices and high powered business executives, to the more mature
users.
It offers various pricing structures to suit different customer groups.
Monthly price plans are available as well as prepay options. Phone users can top up their
phone on line.
Vodafone UK gives NECTAR reward points for every £1 spent on calls, text messages,
picture messages and ring tones.
4. PROMOTION Vodafone works with icons such as David Beckham to communicate its brand values.
Advertising on TV, on billboards, in magazines and in other media outlets reaches large
audiences and spreads the brand image and the message very effectively. This is known
as above the line promotion.
Stores have special offers, promotions and point of sale posters to attract those inside the
stores to buy.
Vodafone’s stores, its products and its staff all project the brand image.
Vodafone actively develops good public relations by sending press releases to national
newspapers and magazines to explain new products and ideas.
“Pug” & “ZooZoo” both are Mascot for Vodafone
Sales promotions-Special prepaid bundle for diwali
Official Sponsor for England cricket team since 15 years
Vodafone McLaren Mercedes F1 Car
TRANSFORMATION FROM HUTCH TO VODAFONE PROMOTION
STRATEGY OF VODAFONE
Hutch Dog to ZooZoo
Vodafone in INDIA came with acquiring Hutchison essar limited.• Vodafone was
launched officially on 21st September 2007.• Than on hutch was rebranded as Vodafone.
The name Vodafone comes from Voice data phone, chosen by the company to Reflect the
Provision of Voice and Data Services over Mobile Phones.
MARKETING STRATEGY Replacing the Hutch’s iconic Dog mascot with new mascot
ZooZoo and associated with IPL as lead sponsor. All the stores were painted red
replacing the pink rose colour of Hutch The new catch phrase “Make the most of now”
To keep its leading edge, Vodafone is continually looking to add value to the services it
provides and to the packages it offers to customers. ZooZoo, the new brand ambassador
of Vodafone, has created a furores in the advertising industry. All the services and tariffs,
Value added services were communicated through ad’s created using ZooZoo
Marketing strategies of Vodafone has given birth to the Zoozoo: a special
character created specifically to convey a value added service (VAS) offering in each of
the newly released commercials.
Vodafone has come with creative advertising campaign for its various plans.• This
strategy has captured the imagination of millions.• The strategy is a buzz that lives up to
the brand image of great creative’s and clever marketing.• In the first 10 days of IPL
(Indian premier league) it has reached a cumulative of 89 million people.• This is a
wonderful strategy adopted by Vodafone.
This has helped the company to raise not only its profits through sales but has also
tremendously increased its brand value.• Zoo zoos have become so popular that
Vodafone has succeeded in its effort of viral or buzz marketing. Their add campaign has
gained so much popularity all over the world.
The viewership for the add is highest among all the adds. What’s interesting is that there
are some 25 such commercials planned under this campaign, 10 of which are already on
air.• The aim was to release approximately one ad a day, to sustain interest till the end of
the IPL.
Themes for advertisement • Magic Box. • Background Music.• Stock Alerts. • Exam
Results.• International Roaming. • Beauty Tips. • Bhatia Sager. • Phone Backup. • Dating
Tips. • IPL commentary. • Voice SMS. • Cricket Alerts. • Fashion Tips. • IPL contests. •
Recharge Anywhere. • Chotta Credit. • Ringtone. • Maps Live. • Group SMS. • Live
Games. • Call Divert. • Musical greetings.
Success…• Zoo zoos dominating social networking sites. • Created Strong Association. •
Wallpapers, ringtones, videos, contests. Pictures, stories etc of Zoo zoos. • Videos had
3million hits in 3 weeks. • Most watched video. • Most watched brand in breaks. •
Vodafone becomes INDIA’s 3’rd biggest tele-com company after airtel and Reliance,
within a very short period.
DAYS BEFORE ZOOZOO
Pug‟ was the mascot for Vodafone
Taken over from Hutch
IPL 2008 had Vodafone going in Pug for its „Happy to Help‟ service
Vodafone in order plan for the future and in wake of mobile number portability decided
to distinctly identify its value added services by launching the Zoo zoos campaign
during the Indian Premier League 2 (IPL-2). Cricket is considered to be a religion in
India, and Zoozooz captured attention of nearly two billion people during the IPL.
People eagerly waited for breaks between matches to see more stories about Zoozoo.
Zoozoo have been successful in giving Vodafone a makeover and establishing
maximum brand presence. It is an excellent example of a well-laid out marketing
strategy. It was a fresh and innovative concept and Vodafone wonderfully promoted
their services by creating different stories featuring Zoozoo. There were no celebrity
endorsements. The charm of the Zoozoo was itself a great self-marketing strategy and
they were instant success among masses. Within few days, Zoozooz created a huge
audience for them, giving a boost to the Vodafone brand.
People were already in awe of those cute and lovable characters, but the curiosity
heightened when Vodafone disclosed that Zoo zoos were not animated, rather humans
were playing those characters. People were hungrier to know about their favourite
Zoozoo.
In the second phase, after the release of these ads, Vodafone promoted these characters
on social media sites, which was another wise decision. Zoozoo fan clubs are there on
social networking sites like Face book, YouTube, Orkut, Twitter, and many more,
where they have a huge followings. Now Vodafone has announced to launch the
Zoozoo goodies like zoozoo toys, zoozoo mugs, zoozoo key chains, zoozoo t-shirts, etc.
Vodafone finally launched the 3G SERVICES formally in India with a brand new
marketing campaign.
The teaser campaign was going on for few days now. Zoo Zoos describing seeing
something very fast and fascinating in the skies.
The ad campaign created a lot of buzz and anticipation in the market
as Vodafone’s Zoo Zoos had already a become popular figures with the
masses.
B. COMPETITORS OF VODAFONE
The competitors of Vodafone in India are:-
Bharti Airtel
Reliance Communications
Idea cellular Limited, Virgin Mobile
TATA (DOCOMO)
TATA Indicom
Aircel
Spice communications Limited
State owned MTNL and BSNL
C. SWOT ANALYSIS
STRENGTHS:-
Expanded environmental collection with strong cellular & telecommunication business in
the Europe, Middle East, Africa Asia Pacific & somehow to the US.
A group of strong network transportation.
Strong presence in rising markets like India.
Strong in cities.
Amongst Top Three Mobile operators in India
Globally Renowned Name
Strong infrastructure
Strong advertising campaigns
WEAKNESSES:- A Negative revisit on chattels (ROA) under the execute & strong competitors like AT&T,
BT Group, Deutsche Telecom.
The American business is not as strong as the European/having a break of the world
operations of 80% of their business is producing in Europe.
Does not have Network in the countryside.
Not able to tap rural areas
Brand image of catering only to urban and sub urban areas
OPPORTUNITIES:- Should rely on decreasing cost & increase Income.
Most of the venture in Hutchison Essar in India.
Needs to Investigate & Improvement of the new mobile technologies.
Good tax free offers & plans.
Rural Areas still needs to be tapped.
Mobile Number portability
THREATS:- Very high competitive & strong market to face.
Still insulate at the back of most of the competitors in the US.
Very high incursion rates in the key European markets.
European Union directive on cross-border usage of the cellular phones.
Mobile Number Portability
Entry of new Licenses like Virgin Mobile
Lower Tariffs announced by Rival Players
D. HUMAN RESOURCES
Recruitment and Orientation:
Another area of improvement identified by Vodafone is the integration of CR factors
into human resource (HR) management. Vodafone is a young company of only 20
years, ten of which were spent as a company of 300 employees.
Through aggressive acquisition, Vodafone now has 60,000 employees. This has resulted
in a number of HR policies throughout local operating companies and the need to focus
on standardizing these policies and practices.
At the global level, CR is integrated into induction training for all new employees,
through workshops that talk about the company’s CR policies. All employees also
receive the booklet on ‘Passion for the World around Us' that identifies the company’s
values and its commitment to the goals of CR.
Vodafone conducts an annual employee survey that includes questions about whether
the company is generating trust and adequately managing its environmental impact.
Vodafone does seek the approval of employees on what they are doing and the ratings
are generally above 90%. Employees report being more highly motivated because of the
company’s CR initiatives, with local operating companies on average having a better
understanding of CR and related higher pride for working with Vodafone.
Vodafone’s internal website is also used for collecting information or ideas from
employees on CR initiatives.
Training:
Vodafone delivers a variety of global training through the use of e-tools, including an e-
module on CR. Vodafone is developing a set of new indicators to identify the number of
employees that have also received classroom CR training (e.g. ten global managers
received training in social audit; 84% of Supply Chain Management managers and
employees have received training on the Code of Ethical Purchasing).
Other communication mechanisms are utilized to increase awareness of CR issues such
as: topic emails (e.g. climate change); themed events (e.g. invited employees to attend
showing of the documentary, An Inconvenient Truth, followed by a panel discussion
where the Corporate Affairs Director discussed climate change and what Vodafone is
doing to improve its practices); monthly CR teleconferences (CR is also discussed
between Group functions and operating companies in many other forums connected
with operational issues); and the monthly newsletter from the CEO normally contains a
paragraph to discuss Vodafone’s CR initiatives (e.g. one of the last newsletters
addressed some of the external recognition Vodafone received related to CR). The
CEO’s newsletter often addresses Vodafone’s way of dealing with an issue.
Vodafone also includes CR in the training for its managers. A session on CR is included
in the Global Management Development Program, which is a three-day course for the
most senior managers. The participants debate a series of issues from the perspective of
different stakeholder groups and devise a response.
Vodafone is also working at standardizing processes related to training among its local
operating companies. For example, Vodafone UK is piloting an e –learning training
course on the Business Principles for all UK employees. If successful, this would be
rolled out across local operating companies.
Performance Appraisal and Compensation:
In 2006, specific CR performance targets were defined and embedded into the
performance quarterly review process. Local operating CEOs and Group operating
business unit CEOs now have their bonuses also tied to personal performance against
CR targets.
CEOs cascade the performance targets throughout their organizations so the local CR
team members, the energy efficiency manager, etc. would also have a CR-related target
VODAFONE ESSAR
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. Vodafone Essar now has operations in 23 circles with over with
over 85.82 million customers**. Vodafone has partnered with the Essar Group as its
principal joint venture partner for the Indian market. Vodafone Essar is owned by
Vodafone 67% and Essar Group 33%.
The company used to be named Hutchison Essar, reflecting the name of its previous
owner, Hutchison. However, the brand was marketed as Hutch. After getting the
necessary government approvals with regards to the acquisition of a majority by the
Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand
was officially changed to Vodafone on 20 September 2007. On September 20, 2007
Hutch became Vodafone in one of the biggest brand transition exercises in recent times
Despite the official name being Vodafone Essar, its products are simply branded
Vodafone. Over the years, Vodafone Essar, under the Hutch brand, has been named the
‘Most Respected Telecom Company', the ‘Best Mobile Service in the country' and the
‘Most Creative and Most Effective Advertiser of the Year'. It offers both prepaid and
post-paid GSM cellular phone coverage throughout India with good presence in the
metros.
Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 23 of the country's 23 licence
areas. It is among the top three GSM mobile operators of India.
Vodafone Essar is the 1st Indian Telecom operator to receive the Payment Card
Industry Security Standard (PCI DSS) certification for its Mumbai operation in 2009.
Also it is the first time that Vodafone has launched Recharge Online.
Vodafone Essar Limited (Vodafone Essar) – subsidiary of mobile
network operator Vodafone Group Plc.
o 2005- Vodafone entered India by acquiring a 10% stake in Bharti Airtel Limited; which it later sold.
o 2006- FDI limit in India increased – Essar became a minority stakeholder (33% equity stake) in HEL
o 2007- HEL became Vodafone Essar Limited & re-branded ‘Hutch’ to ‘Vodafone’
INDUSTRY HEADING
The pace of change in the mobile industry is significant with growing sources of
revenue from data services such as internet usage; new users from emerging markets;
rising take-up of smart phones and tablets; and major advancements in network
technology to deliver faster and better services.
Data services and emerging markets represent the largest opportunity as traditional voice
and text services in developed countries reach maturity
The shift towards smart phones and away from feature phones continues with smart
phones representing nearly 40% of devices shipped in the last year
Significant technological improvements have led to faster data networks and product
innovation to improve the customer experience
Growing revenue streams The share of industry mobile revenue from traditional voice and messaging services in
developed markets is declining due to relative market maturity, ongoing competitive
and regulatory pressures leading to lower prices for mobile calls, and a slow pace of
economic growth. In contrast the demand for data services, such as internet on the
mobile, is growing rapidly. In 2006 data services accounted for 6% of industry mobile
service revenue, in 2011 it reached 20%, and it is expected to rise further over the
medium term.
Demand is being driven by a combination of higher smart phone penetration, significant
enhancements to network data speed and coverage, and an increased range of mobile
applications. Smart phones now represent 39% of all handset sales compared to 8% in
2006.
Emerging markets, such as India and Africa, represent the regions with the most
potential for future revenue growth driven by strong economic growth and low mobile
penetration.
For example, only 74% of India’s 1.2 billion populations have a mobile phone implying
good potential future market growth.
According to external estimates by 2015 there will be 1.5 billion new mobile users, and
the vast majority will be from emerging markets.
Technological innovation Today’s mobile networks in Europe are typically a combination of 2G networks for
traditional voice, text and basic data services, and 3G networks for high speed mobile
internet access and application downloads. 3G maximum data downlink speeds are
already up to 43 Mbps (with typical user speeds of up to 6 Mbps). 4G, or long-term
evolution (‘LTE’), the next stage of mobile network development, is already in place in
some countries – providing maximum user speeds of up to 150 Mbps (typical user
speeds up to 12 Mbps). Going forward, further network upgrades are expected to
significantly enhance the user experience through a combination of both faster networks
and wider high speed network coverage.
Innovation in services is also critical to enhance customer experience. Vodafone,
together with a number of other leading operators, has developed the next wave in
personal mobile communications known as rich communication services which will
enable data services such as instant messaging or chat, live video sharing and file
transfer across any device and on any network, in much the same way as voice and
SMS. Vodafone is also developing a range of new services to generate additional
revenue and enhance
Networks We aim to have the best mobile network in each of our markets. This means giving our
customers far-reaching coverage, a very reliable connection, and increasing speeds and
data capacity. We believe that over time, offering a superior network experience will
enable us to secure a premium positioning in most of our markets.
Our network investment is enhanced by our ongoing acquisition of mobile spectrum as
it becomes available. For more information on our network build-out, see page 24.
Distribution We operate around 14,000 stores across the Group, and have extensive networks of
exclusive distribution partners and third party retailers. We will develop our distribution
further to stay close to our customers, making it easy for them to join us from our
competitors, upgrade their existing contract or just seek help with the services we offer.
In addition, the internet is becoming an increasingly important part of our sales and
service mix, and we have significantly upgraded our online shop and online service
capabilities over the last three years.
Supplier relationships We work closely with our suppliers to build robust networks, develop innovative
services and offer the widest range of the latest devices.
In many cases these are partnerships, where we will approach a supplier with an idea or
a problem that needs solving, and then work together to bring a solution to market.
From the customer perspective, the global reach and scale of Vodafone means that we
will often be the destination for exclusive or first-to-market products.
CURRENT POSITION OF INDUSTRY
The mobile industry is a large and important sector with six billion global users.
Customer growth over the last five years has been rapid, driven by the benefits of
mobility, falling prices and rising penetration in emerging markets.
However, pressures on revenue growth from competition and regulation are significant
and are likely to remain.
86% of the world’s population use a mobile phone
Competition is intense with typically at least four mobile operators in each country and
numerous additional alternative communications providers
Regulators continue to impose policies to lower the cost of access to mobile networks.
Scale
The mobile industry is one of the largest communication sectors in the world with over
six billion users across the globe. In contrast there are only 1.2 billion people with fixed
line phones. The mobile industry generates around
US$960 billion of annual service revenue,
80% of which comes from people making standard voice calls and sending texts. Over
the last ten years the share of telephone calls via mobile has increased from 20% to
74%, reflecting the benefits of mobility. In 2011, 4.3 trillion Text messages were sent
(about 136,500 every second).
Growth The demand for mobile services continues to grow. In the last five years the number of
users has increased by an average of 17% each year driven by rising living standards,
population growth and cheaper mobile services and handsets. In 2011 86% of the
world’s population has a mobile phone, whereas ten years ago this was only 16%. Most
of the new demand for mobile services is from emerging markets such as India and
Africa.
In India for example, the number of phone users increased by over 140 million in just
one year, 2011, which is more than twice the size of the UK population. Emerging
markets are growing quickly, and account for over 70% of the world’s mobile users.
The rest live in developed markets such as Europe and the United States, where demand
is growing more.
Competition Slowly as most people already have a device in Europe for example there is already an
average of 1.3 SIM cards per person.
The telecommunications industry is highly competitive, with typically at least four
national mobile network operators, such as Vodafone, and one national fixed line
operator in each country. In addition, there can be numerous companies that rent
capacity from mobile operators and sell their own mobile services to customers. In
some countries there can also be several independent distribution companies that
compete with the mobile network operators’ own stores. Advances in technology are
bringing in newer suppliers, such as internet based companies and software providers
offering converged services such as voice over internet protocol (‘VoIP’).Against this
background, consumers have a wide choice of providers.
Regulation
The mobile industry is very heavily regulated by both national, European and other
regional and international authorities. Regulators continue to impose policies to lower
the cost of access to mobile networks through setting lower mobile termination rates
(the fees mobile companies charge for calls received from other companies’ networks)
and to limit the amount that operators can charge for mobile roaming services. These
two areas represent 12% of service revenue for Vodafone.
In an environment of intense competition and significant global regulatory pressures,
industry voice prices have tended to reduce over time and in 2011 fell 14%. However,
with more mobile phone users and some customers using their devices ever more
frequently.
VODAFONE PRODUCTS:
BRAND IMAGE
David Beckham is more than a footballer. He is also regarded as a fashion icon, a caring
family man and a nice guy: an overall image that attracted Vodafone to him.
Beckham’s popularity with football fans comes largely from his England team
captaincy. As a footballer, he is well regarded around the world. Other young men who
might aspire to his success and style also tend to identify with him. He appeals to many
females because of his reputation as a fashion and lifestyle icon. He is also married to a
female icon in her own right.
Vodafone’s sponsorship of the Manchester United team appeals to a broad section of
the global football/sports audience, whereas aspects of Beckham’s broader image have
grown to appeal to a much wider section of society. That suits Vodafone, who needs to
appeal to different segments of the market.
Beckham’s healthy lifestyle allied to his talent suggests an energy and a controlled
passion for life; an image that Vodafone would also like to project for itself. On a
football field, Beckham is innovative, creative, exciting; characteristics that Vodafone
aspires to. Beckham the family man comes across as caring and empathetic; Vodafone
wants people to appreciate that it too understands and cares about what people want and
need. Beckham is generally seen as dependable; Vodafone wants to communicate a
similar image. The synergy is clear.
THE CAMPAIGN
Beckham is supporting the campaign to promote Vodafone live! In the UK and in other
markets. The UK campaign shows Beckham doing everyday things: a happy, relaxed,
competent shopper sending pictures and accepting a message to remember to buy eggs.
At the same time he is also clearly demonstrating what Vodafone live can do.
The TV campaign has been a huge success. Many people have seen it and can recall the
adverts. The campaign captured the imagination of the press, and many newspapers
covered stories about Beckham’s sponsorship deal. Slogans such as ‘Send it like
Beckham’ help to further promote the Vodafone message. Beckham’s image is also
used on a variety of other customer communications including in-store posters,
billboards, in the company’s magazines and catalogues and in leaflets mailed to
customer.
MARKET RESEARCH
High profile campaigns are a gamble. The campaign’s impact has to justify the time,
money and effort spent on it. The marketing team must evaluate the campaign’s
success. Vodafone UK has asked people across different sectors of society about the
campaign, and has analysed their responses. Individuals were asked what they could
remember about the campaigns. This is known in the marketing industry as recall.
RECALL %
Another exercise assessed the effectiveness of the poster depicting Beckham being
reminded to buy some eggs. People in the survey are shown different Vodafone posters
and asked to say which of them they recall in relation to Vodafone live!
Clearly, the Beckham poster is far and away the one that is best recalled.
Other data has been used to assess the success of the Beckham promotion. Findings
from UK Brand Tracking data reveal that the TV campaign has increased awareness of
Vodafone with above average efficiency as measured by the Awareness Index,
primarily because of the Beckham scenes. People are able to recall and describe the
advertisements without prompting.
The Beckham campaign has also helped to support Vodafone’s drive for brand
migration. Vodafone can help to fulfil its aim to grow successfully by acquiring local
companies in markets that Vodafone would like to enter. A good example of this is
Vodafone’s purchase of J-Phone in Japan. The initial strategy was to use a dual J-Phone
Vodafone logo alongside the powerful image of Beckham to emphasise the relationship
between the two companies.
The final transition removed the J-Phone logo altogether to a sole focus on Vodafone
(Vodafone KK). This strategy warmed J-Phone’s customers to the idea of a global
brand replacing a local brand. David Beckham is a popular figure in Japan and helped to
smooth the way for the substitution of the global brand in place of the local one.
MOBILE DATA SERVICES
Vodafone goal is to become the provider of choice for customers wanting to use data
services. The opportunity is huge as we believe that over time all customers will want to
use data internet services on their mobile devices
The mobile industry started less than 30 years ago with a single service making and
receiving calls. Today customers enjoy a range of services including simple voice calls,
text and picture messaging, and data services such as mobile internet browsing, social
networking sites, downloading applications (‘apps’) and sending emails via smart
phones.
MARKET CONTEXT:
According to industry analysts, data is expected to be the fastest growing segment of the
mobile industry. It is estimated that between the 2011 and 2016 calendar years
worldwide mobile data revenue is set to grow by US$142 billion, compared to a US$27
billion decline in voice revenue over the same period.1
GOALS:Vodafone aim to have the best mobile network in all of the markets in which they
operate, supported by leading IT systems. This means giving customers far-reaching
coverage, a very reliable connection and increasing speeds and data capacity.
STRENGTHS:They have more than 238,000 base station sites transmitting wireless signals – making
us one of the largest mobile operators in the world.
ACTIONS:They are investing around £6 billion a year to deliver a high quality mobile data
experience for customers.
PROGRESS:
In 2012 nearly one trillion minutes of calls were carried and more than 216 pet bytes of
data were sent across our networks in other words enough data for 2.8 trillion emails.
Services is growing rapidly
Data is already our fastest growing segment, with data revenue up by 22.2%* over the
financial year, compared to a 4.4%* rise for messaging revenue and a 4.0%* fall for
voice revenue. This demand is being driven by three key factors – a widening range of
powerful and attractive smart phones and tablets, significant improvements in mobile
network quality and capability, and an increased choice of user friendly and useful
applications for business and social use.
They have already seen significant growth in the number of customers using smart
phones, with 27% of customers in Europe using these devices today, compared to 19%
last year and this is expected to grow rapidly in the next few years.
They are growing data revenue through enhancing technology and improving the
customer experience
They are continuing to refocus our business on data to capture the significant expected
growth in customer demand for data services.
Vodafone aim to deliver a market-leading network experience to their customers. To
compare their performance against our major competitors we conduct regular
benchmark tests using reputable third parties. The latest results show that we have
leading data service performance in 13 out of 18 markets with data downlink speeds on
average around 6% better than our next best competitor.
GENERAL FEATURES OF 3G
Enhanced multimedia (voice, data, video, and remote control)
Usability on all popular modes (cellular telephone e-mail, paging, fax,
videoconferencing, and Web browsing)
Broad bandwidth and high speed (upwards of 2 Mbps)
Routing flexibility (repeater, satellite, LAN) Roaming capability
VODAFONE 3G APPLICATIONS
Interactive news delivery (voice, video, e-mail, graphics)
Voice /High-quality audio
Still photography
Video
Data transmission services
File transfer from intranet
Multimedia e-mail (graphics, voice, video)
Video conferencing
Information Systems
SERVICES OFFERED BY VODAFONE 3G HIGH SPEED
INTERNETS:
High Speed Internet: Vodafone 3G promises lightning fast downloads of large
attachments, music tracks, and superfast loading and browsing on Internet.
Video Calling : You can chat with your friend or attend a business meeting face to
face without leaving your seat with Vodafone 3G live and seamless video calling
feature.
Vodafone TV : When you are travelling, get live news and your other favourite TV
programs on your mobile. Vodafone TV brings popular channels like NDTV, STAR,
Zoom, Zee and National Geographic to your handset. You can enjoy all available
channels for Rs150/month and Rs7/Day.
Live Streaming: Now you can enjoy your favourite match or video without
annoying buffering breaks with Vodafone 3G.
HD Gaming : Mobile Gaming becomes more enjoyable and faster with Vodafone 3G
Faster Downloads: Vodafone 3G offers 3 times faster download than 2G and
simultaneous transfer of voice and non-voice data, so that you can enjoy a seamless
connectivity.
Mobile Newspaper: Vodafone 3G brings Mobile Newspaper, a service that brings
your favourite newspaper to your mobile. Just select your paper and news, videos and
photos will be directly displayed on your handset.
INTERESTING INSIGHTS
High spenders, post paid subscribers and business subscribers show a greater tendency to switch if Mobile Number Portability is introduced
Prepaid, low and medium spend users are not motivated to switch
Post paid subscribers have almost double the minutes of usage compared to pre-paid subscribers and the incidence of data application usage is also higher among post-paid and high spenders
More than half (55%) of all respondents were generally satisfied with their mobile operator and 48 percent were satisfied with the network quality
46 percent were satisfied with the network coverage area of their operator and 43 percent were satisfied with the price they paid for the mobile phone service by their operator
Satisfaction scores on network quality dropped for almost all operators, with Airtel, BSNL and Reliance registering the greatest drops
Vodafone has the highest post paid subscriber base in India
POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL
ANALYSIS
Political: - Governmental and legal issues affect how the company operates.
Regulation
Infrastructure
Banning of phone use in certain circumstances and areas.
Health issues
Economic: - Factors influencing the purchasing power of customers and the company's
cost of capital.
Cost of 3G licenses
Cost of calls being driven down
Worldwide recession
Third world countries
Social: - Demographic and cultural aspects of the environment which influence
customer needs and market size.
Health Issues
Demographics
Social Trends
Picture phones
Mobile Etiquette
Saturation Point
Technological : - The technological advancements that are coming in the telecom
industry
3G
UMTS (2.5G)
GPRS/WAP
SMS / MMS
FUTURE STRATEGY
Vodafone can help to transform societies by bringing innovative products and
services to our 404 million customers, 68% of whom live in emerging markets.
Mobile technology is already a vital tool in people’s lives and our ambition is for
Vodafone’s mobile services to further improve people’s livelihoods and quality of
life.
At the same time, we aim to help consumers, governments and businesses tackle some of
the significant challenges they face – from food shortages and ageing populations, to lack
of access to communications, healthcare and financial services.
Their business focus on emerging markets, enterprise, data and new services gives us the
ability to achieve our ambition to contribute to global development in this way, while
continuing to grow our business at the same time, by developing commercially viable,
scalable services that support sustainable development.
DRIVING ECONOMIC AND SOCIAL DEVELOPMENT
The global footprint of our network, our significant presence in emerging markets and
our track record as an innovator, enable us to make an important contribution to socio-
economic development. Recent research shows a 10% increase in mobile access raises a
country’s economic productivity by 4.2%.
Over 68% of our customers live in emerging markets. By extending our network
coverage and putting basic voice and data services in the hands of people without access
to communications, we can create tangible benefits while building our customer base and
establishing lasting relationships too.
They are also creating innovative mobile services to help people and organisations make
the most of limited resources and are focusing on using mobile to help transform
financial services, healthcare, education and agriculture.
Thanks to Vodafone’s M-Pesa service, millions of people without a bank account can
send, save and borrow money; our mobile health services enable health workers to see
more patients; and our ‘Learning with Vodafone’ programme in India helps children get a
better education.
DOING MORE WITH LESS
By 2030, there will be 20% more people in the world necessitating a 70% increase in
agricultural production The Connected Farmer Alliance is our a partnership with USAID
and the NGO Techno Serve, using our technology to help 500 million smallholder
farmers in Africa to increase their productivity; and our Turkey Farmers’ Club has
already helped farmers increase productivity by €190 million, showing how mobile can
make a real difference.
Businesses and organisations are under pressure to deliver a substantial portion of the
global carbon reductions required to tackle climate change, while also facing economic
pressure to cut costs and increase efficiency. They need to do more with less and by using
our mobile technology they can improve the efficiency of their operations and enable
smarter ways of working.
Remote wireless connections create two-way communication between machines –M2M –
enabling organisations to collect the real-time information they need to reduce their
energy use and carbon emissions. Vodafone is a leading M2M provider with more than
9.5 million of our connections already helping businesses deliver cost savings and carbon
reductions.
EXTENDING ACCESS TO EVERYONE
For increasing numbers of people around the world, mobile internet is the internet. Fixed-
line internet is often too expensive to roll out and there are many places it can’t reach.
Wireless technology can close that digital divide
Around the world, Vodafone is working to enable as many people as possible to share in
the mobile internet revolution. We are extending access to mobile broadband to remote
areas across the world and are creating new services that make mobile phones easier to
use for people who are elderly or people with a disability.
BEING RESPONSIBLE
They can’t do any of this without the trust of our customers and other stakeholders. To
earn that trust, we need to manage our operations responsibly and conduct our business in
an ethical and transparent way.
They are ambitious in the way we manage our wide-ranging responsibilities and have
strong programmes in place– from protecting customers’ information and respecting their
privacy, to treating our employees fairly, working to reduce our impact on the
environment, and setting set strict ethical, labour and environmental standards for
suppliers.
By taking their responsibilities seriously, they aim to continue to enhance Vodafone’s
reputation and the contribution of their products and services to sustainable living.
CONCLUSION
After going through the Advertisement Strategies of Vodafone, I conclude that
promotion whether it is through print media or through the ads shown on television,
plays a very important role in building a Brand. Hutch and Vodafone rebranding is the
memorable and most big event in the telecommunication industry. And the
advertisement made this event bigger by continuously broadcasting the ads for 24 hours
on national television. The main motive is to make people know about your brand. And
that is what is done excellently by Vodafone.
The advertisement also puts a very big question in front of the other telecom companies,
does having big movie stars and cricketers as their brand ambassador really help?
Doesn’t a simple white character with egg shaped head, round belly and thin legs called
Zoozoo can gain the attention of masses. This is definitely a new trend and also a new
wave.
Thus it can be seen that oligopolistic market structure of this industry has played a
significant role in the generation of revenue for Vodafone, especially through this
unique advertising strategy.
Continued growth in data and emerging markets, mature voice trending below one third
of service revenue New strategic approach to consumer pricing and bundling in Europe
Strengthened commitment in enterprise through an expanded product catalogue and a
dedicated division Continuing consistent investment in high speed data networks,
technology independent Drive towards standardisation , simplification and efficiency
for both better service and lower cost position Maintaining strong returns to
shareholders as a priority
In a highly competitive market, David Beckham is the latest in a number of high profile
celebrities and sports personalities that Vodafone has used to promote Vodafone live!
Market research and increased sales indicate that using Beckham’s image has been
highly effective. Sponsorship using stars involves a partnership between the star and the
company, and success depends on both remaining high profile and in the public eye The
Beckham campaign is seen in many countries worldwide and reinforces his own image
as well as communicating Vodafone’s brand values. Beckham is something of a
phenomenon whose star status shows no sign of waning. Vodafone believes that it has
gained an important advantage in a highly competitive market place as a result of
having such a high profile, admired star attached to its name and its product.
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MANAN PRAKASHAN, MAHICAL VAZ