Brand Audit ofVodafone

Himanshu Kamat (22)

Hitesh Mahansaria (24)

Sahil Gupta (88)

Prachi Bansal (84)

Kuntal Panja (106)

In 1992, Hutchison Whampoa and its Indian business partner – Max Group, established a company that in 1994 was awarded a license to provide mobile telecommunications services in Bombay and launched commercial services as Hutchison Max in November 1995

Hutchison Max

1992: Hutchison Whampoa and Max Group establish Hutchison

Max

2000: Acquisition of Delhi operations and entry into Calcutta (now

Kolkata) and Gujarat markets through Essar acquisition

2001: Won auction for licences to operate GSM services in

Karnataka, Andhra Pradesh and Chennai

A 'You and I' print advertisement of Hutch featuring Cheeka (dog)

2003: Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which

operated in Rajastan, Uttar Pradesh East and Haryana telecom

circles and rebranded it 'Hutch'.

2004: Launched in three additional telecom circles of India namely Punjab,

Uttar Pradesh (West) and West Bengal.

2005: Acquired BPL Mobile operations in 3 circles. This left BPL with

operations only in Mumbai, where it still operates under the brand 'Loop

Mobile'.

2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billionThe

company is renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.

2008: Vodafone acquires the licences in remaining 7 circles and has starts

its pending operations in Madhya Pradesh circle, as well as in Orissa, Assam,

North East and Bihar

On March 31, 2011, Vodafone Group Plc announced that it would buy an additional 33% stake in its Indian joint venture for $5 billion after partner Essar Group exercised an option to sell the holding in the mobile-phone operator.

The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be owned by Indian investors, in compliance with Indian law.

Some News…

It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel , and

 Third largest in terms of customers.

Vodafone had about 134.5 million customers as of February 2011

Vodafone

Despite the official name being Vodafone Essar, its products are simply branded Vodafone.

It offers both prepaid and postpaid 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.

Vodafone Essar will launch 3G services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks

Products

Vodafone’s Strategic Objectives

Revenue stimulation and cost reduction

Innovate and deliver on our customers’ total communication needs

Deliver strong growth in emerging markets

Actively manage our portfolio to maximize returns

Align capital structure and shareholder returns policy to strategy

PEST ANALYSIS- EXTERNAL ANALYSIS

PoliticalRegulationsPolitical Opposition to participation by the private players Govt support to promote FDI in Telecom sectorBanning of Phone Use in Certain Circumstances

Technology Equipped with New Technology Rapid Industrial growth rate

induced by emerging technologies. Strong Fibre Optic Network Utilization of E- Commerce facilities Efficient Customer Care Services

Socio-Cultural High End Phones becoming status symbol Due to Intimate family bonding in Indian Culture, there is need to remain connectedTech Savvy Generation

EconomicCost of calls Being Driven Down Worldwide Recession- Both Boon & BaneMiddle class consumer base growing due to accelerated economic growthUntapped markets in emerging Economies - New Opportunity

Porters 5 Forces•There

are a few numbers of large firms worldwide that competes for the market share; however are very competitive and because of a relative slow market growth in this industry the firms fight over the market shares.

•There is also a low level of switching costs to the consumer and a low level of product differentiation

•Thus, in the mobile network industry the threat of rivalry is fairly high.

The threat of substitutes for voice and data communication over the traditional network is moderate.

The low costs of computer calling could potentially take over most long distance calling.

The more local calls and business calls would be more secure for the mobile market, although cell phones with the ability to use the internet to make calls are being made available and will soon take a considerable market share of calls made.

The threat of substitutes can be reasonable high in this industry.

Substitute

Buyers

The threat of buyers in this industry can be considered fairly low.

The individual buyer has no impact on the price of the products offered.

1. In the cell phone part of the business the suppliers of the phones can have a big impact on the price of products and the condition of the deal they make with the provider.

2. One clear example of this is when apple launched their new I-phone. They made an exclusive contract with AT&T so they had the exclusive right to be the service provider to their phone in America.

3. So the supplier’s power in this industry is high.

Suppliers

1. The threat of entry is highly influenced by the economy of scale of the existing companies.

2. The large well established companies that have a strong foothold in the market and a known brand name would make entry for a new company costly.

New Entry

BCG MATRIX Stars ?

Cows

Bundled Phones

Dogs Bulk and Interactive messaging

Integrated wire line

communication

Market ShareLOWHIGH

Mark

et

Gro

wth

R

ate

HIGH

LOW

Voice GSM Service

EDGE Service

VPNData Cards

Telemetry and Security Solutions

3 G Services

ANSOFF’s MATRIX Product Development

Business Solutions

Mkt. Peneteration

3GData Cards

Diversification

Bundled Phones

Mkt. DevelopmentExclusive Mobile

Content

PRODUCTPRESENT

NEW

MA

RK

ET

PRESEN

TNEW

Brand Equity of Vodafone in Indian Cellular Services

PR

OD

UC

T R

AN

GE

N

arro

w

B

road

NATIONAL GLOBAL

GEOGRAPHICAL SCOPE

BSNL, MTNL

Other

Airtel

Reliance Vodafone

TATA IDEA

VIRGIN

Strategic Group Analysis

Brand Health Tracking

Vodafone regularly conducts Brand Health Tracking, which is designed to measure the brand performance against a number of key metrics and generate insights to assist the management of the Vodafone brand across all Vodafone branded operating companies. This tracking has been in place since 2002 and provides continuous historical data against key metrics in all 19 Vodafone branded operating markets.

An external accredited and independent market research organization provides global coordination of the methodology, reporting and analysis. As a result of these activities the Vodafone brand is now ranked number 11 in the Brand Top 100 global brands list recently published in The Financial Times, with an estimated value attributable to the brand of £18.7 billion.

Vodafone has continued to focus on delivering a superior, consistent and differentiated customer experience through its brand and communications activities.

Brand Health Tracking

Vodafone tops UK Valuable brand index

The Brand Finance Mobile 100 is an index of the world’s most valuable mobile telecoms brands in the world published annually in association with Total Telecom

1. In the third year of publication Vodafone remains the top ranked brand with a value of $30.7 billion (up from $28.9 billion) and a Brand Rating of AAA+ (up from AAA)

2. The increase in brand values in China and the US illustrate continued rapid economic growth in China and the growing economic recovery in the US

Brand Finance

Our brand is built on a foundation of a number of strategic components, with the Marketing Framework at their heart

MARKETING FRAMEWORK

BRANDED CUSTOMEREXPERIENCE

BRANDCOMMUNICATIONS

BRANDVALUES & ENGAGEMENT

We have put the brand at the centre of the Customer Experience

Arun Sarin, CEO Vodafone

“A brand is what a brand does.”

“The most valuable brands in the world are those

where the customer knows they’re going

to get a good experience” Sir John Bond, Chairman, Vodafone

WFA/ISA - Global Advertiser Conference

27Mumbai, March 5, 2008

…..and we have made a commitment to customersthrough our new Customer Promise

Group’s Vision - “to be the communications leader in an increasingly connected world”.

Develop competitive local market brand positioning, with local brand positioning projects now implemented in 19 markets.

Brand and Customer Communication

Advertising is largely done on TV, on billboards, in magazines and in other media outlets which reaches large audiences and spreads the brand image and the message very effectively.

Marketing Strategies of Vodafone

Irfan Khan Advertisement

Advertisements…

1 2

Brand Identity – A unique, contemporary and iconic identity which gives Vodafone the stature of a world-class brand

Communications – all locally executed to our Brand Idea, a new Tone of Voice and refreshed Brand Guidelines

To enable the consistent use of the Vodafone brand, a set of guidelines has been developed in areas such as advertising, retail, online and merchandising, all including detail on how to make the brand work across every touch point.

Since June 2006, eight markets have implemented the global retail design.

Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy.

Global Retail Design

Retail – a new design bringing the brand idea to the customer experience

Sponsorship – driving brand awareness with activation of two new properties

Vodafone actively develops good public relations by sending press releases to national newspapers and magazines to explain new products and ideas.

The migration from Hutch to Vodafone was one of the fastest and most comprehensive brand transitions in the history of the Group, with

◦ 400,000 multi brand outlets, ◦ over 350 Vodafone stores, ◦ over 1,000 mini stores, ◦ over 35 mobile stores and ◦ over 3,000 touch points reframed in two months,

with 60% completed within 48 hours of the launch.

“Hutch is now Vodafone”

Vodafone Hutch Transition Advertisement

Focus on Value added services

G-local Approach

Vodafone live portal that is header banners, channel sponsorship and sponsorship of free MMS alerts.

Zoo Zoo Ads

WFA/ISA - Global Advertiser Conference

42Mumbai, March 5, 2008

Engaging the employee – driving the brand idea internally

Engaging the Customers

Relevant Reliable Easy to

use Innovative

Mobile Interaction Management- Bringing the brand idea to handset experience

Differentiationstrategy:

To make the most of customer’s time!

Positioningstrategy:

• Cost Saving in Europe

• Revenue Growth in Emerging Markets

Globalstrategy:

Fitting into our Strategy

An innovative Handset based Self Care application, that will allow our customers to access real time self care services directly from their phones.

A capability that enables tailored on device self service and CRM transactions

It will radically improve the quality of user’s Interactions with their products and services, making things simpler and more easily accessible

Brand as a central organising principle that drives performance, culture, experience and action

Treat engagement as a journey, and a source of competitive differentiation

Involve Leaders!

Make the vision actionable

include everyone who

represents your brand

Link to recognition and reward

Measure your progress

Creating a culture of brand engagement

What we doDifferentiation: A Great Customer Experience

Functional Benefits: Useful, Seamless, Stimulating

Emotional Benefit: Inspired (to use my time)

What we doDifferentiation: A Great Customer Experience

Functional Benefits: Useful, Seamless, Stimulating

Emotional Benefit: Inspired (to use my time)

Where we playMarket Definition: Integrated Communications Provider

Positioning Target: Progressives

Customer Insight: I live for this life and time is precious

Where we playMarket Definition: Integrated Communications Provider

Positioning Target: Progressives

Customer Insight: I live for this life and time is precious

Who we arePersonality: The Pioneer

Values: Red, Rock solid & Restless

Physique: Red within a technicolor world

Who we arePersonality: The Pioneer

Values: Red, Rock solid & Restless

Physique: Red within a technicolor world

Our rallying cryAmbition: Communications leader

Purpose: To help people make the most of their time in life

Customer expression: Make the most of now

Our rallying cryAmbition: Communications leader

Purpose: To help people make the most of their time in life

Customer expression: Make the most of now

A static brand can quickly become irrelevant. But brand innovation also has its risks.

Brand innovation can take place internally through research & development or it could occur externally by understanding the opportunities that are being created due to increased competition and an informed consumer.

A brand has to continually scout for opportunities to better itself and its perception among the consumers of its product.

Opportunities for Vodafone

Brand opportunity can be gauged by understanding consumer behavior.

One needs to understand what is pulling a consumer away from your brand and what feature about your brand is underperforming to have the same effect – pulling the consumer away from your brand.

Opportunities for Vodafone

The reasons why people are with their current telecom service providers

40%

20%7%

23%

10%

Value for Money

Coverage and Quality

Switching costs

Schemes and Benefits

Others

10%

53%

17%

13% 7%

Coverage & Voice Clarity Customer Service QualityPricing SchemesOthers

Shows which features of Vodafone brand promise are underperforming to create a

negative perception of the brand.

From the observations, an understanding of the opportunities that Vodafone can capitalize on is created.

Vodafone is a company which focuses on customer service through its brand communications in the form of “Power to You” and “Happy to Help”. It has to ramp up its customer service and it’s value propositions to make the brand more effective in the market.

Vodafone should try to focus on promises it has made to its customers and faltering on these would be detrimental to its survival.

Pricing has to be made innovative and should be centered on creating value for the customer through product bundling and pioneering tariff styles.

How Vodafone can Improve

52

Brand Satisfaction is established only by the experiences

that customers have, across each of the brand’s touch-

points, over the course of time.

A minority in the “Excellent” category and a one-third

majority in the “Not Satisfactory” category lead us to

conclude that more of Vodafone’s customer base is

disgruntled with it than delighted.

7%

27%

30%

37%

Excellent GoodSatisfactory Not Satisfactory

Brand Satisfaction

53

It is a comprehensive concept, which

includes all the tangible and intangible

traits of a brand, say beliefs, values,

prejudices, features, interests, and

heritage. A brand personality makes it

unique.

Brand personality is seen as a valuable

factor in increasing brand engagement

and brand attachment, in much the

same way as people relate and bind to

other people.

Brand Personality

40%

10%

23%

27%Strong NetworkCustomer ServiceInnovative SchemesValue Added Services

54

Brand loyalty, in marketing,

consists of a consumer's

commitment to repurchase

or otherwise continue using

the brand and can be

demonstrated by repeated

buying of a product or

service or other positive

behaviors such as word of

mouth advocacy.

With a majority 63% of

respondents saying they will

recommend Vodafone to

anyone else, it is a good

statistic

Brand Loyalty

37%

63%

No Yes

VODAFONE

TELECOM SERVICES

CONSUMER & BUSINESS

VOICE & DATA SERVICES

PREPAID &POSTPAI

DBrand Hierarchyarchy

Brand Resonance

JudgmentQuality according to Price

Innovative and competitive

Resonance Pyramid

ResonanceHigh level of repeat

purchaseRegular EngagementHigh on Community

FeelingsExcitement

PerformanceMedium Priced

Service Effectiveness and

Efficiency

ImageryUser Profile – All Classes

All Age Group and Gender

Strong Brand Reliability

SalienceVaried Product PortfolioVery High Awareness

High Recall

Vodafone, Nokia among most recalled brands during the IPL.

Among the top 10 most recalled advertisements, Vodafone Zoozoo ads (Go Green and Jokes) rank highest, with 43 per cent unaided recall.(According to Afaqs ! study)

BRAND RECALL

Vodafone has maintained its market share in urban and semi-urban areas and can have opportunity to compete for rural share.

Vodafone has been able to maintain arguably the highest brand awareness and recall ratings in its industry segment.

They have capitalised on zoo zoo merchandise in association with Shopper’s stop but can do better on this front.

How would you suggest that they improve on their brand building activities?

A suggestion could be releasing a weekly comic strip on zoo zoo in national dailies through print ad mode and involving audiences directly with the story line in competition format.

Mobile games and Apps can be developed with the zoo zoo as protagonist.

In game advertising is a medium that can be explored.

Thank You…