Zoozoo Project

CHAPTER-1

INDUSTRY PROFILE

Krupanidhi B School/mku/2010

INTRODUCTION

This first chapter presents our introduction to the birth and growth of Indian

Telecomm Industry, and the major player of Telecomm. The background will,

presents current status of Telecomm Industry, problem associated with it and lastly

the future of Telecomm Industry.

General introduction about the sector

The Indian telecommunication industry is one of the fastest growing industry in

the world, with 621.28 million telephone (landlines and mobile) subscribers and 584

million mobile phone connections as of March 2010, is the second largest

telecommunication network in the world and the second largest in terms of number

of wireless connections in the world after China. Telecommunication activities saw

rapid growth in India starting at the dawn of the 21st century and since then, efforts

have been made from both governmental and non-governmental organizations to

further improve the telecommunication infrastructure. The eventual goal is to foster

the development and widespread use of modern telecommunication technologies

that will serve all segments of India’s culturally diverse society, and to transform it

into a country of technologically aware people. The Indian Mobile subscriber base

has increased in size by a factor of more than one-hundred since 2001 when the

number of subscribers in the country was approximately 5 million to 584 million in

March 2010.


As the fastest growing telecommunications industry in the world, it is projected that

India will have 1.159 billion mobile subscribers by 2013. Furthermore, projections

by several leading global consultancies indicate that the total number of

subscribers in India will exceed the total subscriber count in the China by 2013. The

industry is expected to reach a size of Rs 344,921 crore (US$ 73.47 billion) by

2012 at a growth rate of over 26 per cent, and generate employment opportunities

for about 10 million people during the same period. According to analysts, the

sector would create direct employment for 2.8 million people and for 7 million

indirectly. In 2008-09 the overall telecom equipments revenue in India stood at

Rs 136,833 crore (US$ 29.15 billion) during the fiscal, as against Rs 115,382 crore

(US$ 24.58 billion) a year before.

Modern growth

A large population, low telephony penetration levels, and a rise in consumers'

income and spending owing to strong economic growth have helped make India the

fastest-growing telecom market in the world. The first operator is the state-owned

incumbent BSNL. BSNL was created by corporatization of the erstwhile DTS

(Department of Telecommunication Services), a government unit responsible for

provision of telephony services. Subsequently, after the telecommunication policies

were revised to allow private operators, companies such as Vodafone, Bharti Airtel,

Tata Indicom, Idea Cellular, Aircel and Loop Mobile have entered the space. see

major operators in India. In 2008-09, rural India outpaced urban India in mobile

growth rate. Bharti Airtel now is the largest telecom company in India.


India's mobile phone market is the fastest growing in the world, with companies

adding some 20.31 million new customers in March 2010.

The total number of telephones in the country crossed the 600 million mark in Feb

2010.The overall tele-density has increased to 44.85% in Oct 2009.Telecom

Regulatory Authority of India, Information note to the Press (Press Release No. 61 /

2007), 20 Jun 2007 In the wireless segment, 19 million subscribers have been

added in Dec 2009. The total wireless subscribers (GSM, CDMA & WLL (F)) base

is more than 543.20 million now. The wireline segment subscriber base stood at

37.06 million with a decline of 0.12 million in Dec 2009.

Major Players of mobile network in India

Operator Subscriber baseBharti Airtel 118,864,031

Reliance Communications 93,795,613

Vodafone Essar 91,401,959

BSNL 62,861,214

Idea Cellular 57,611,872

Tata Teleservice 57,329,449

Aircel 31,023,997

MTNL 4,875,913

MTS India 3,042,741

Loop Mobile India 2,649,730

Uninor 1,208,130

HFCL Infotel 341,862

Stel 141,411

All India 525,147,922Source: - Wikipedia.com


Evolution of the industry-Important Milestones

year

1851 First operational land lines were laid by the government near

Calcutta (seat of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable

Communication Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form

the Posts, Telephone and Telegraph (PTT), a monopoly run by the

government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own

regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies:

the Videsh Sanchar Nigam Limited (VSNL) for international

telecommunications and Mahanagar Telephone Nigam Limited

(MTNL) for service in metropolitan areas.

1997 Telecom Regulatory Authority of India created.


1999 Cellular Services are launched in India. New National Telecom

Policy is adopted.

2000 DoT becomes a corporation, BSNL

India as an emerging Value-Added Services Market

As per a research conducted by Stanford University, Indian mobile value-added

services (MVAS) are expected to reach USD 2.74 bn by the FY2010. To benefit

from the emerging MVAS market in India, Reliance Communications and Bharti

Airtel Limited are all set to introduce online cellular phone applications in Indian

retail stores. While Bharti Airtel will offer around 1,250 applications, Reliance

Communications' applications will soon be accessible to its GSM customers by Feb

2010.

India as an emerging telecom equipment

manufacturing Market.

The manufacturing of Cellular phone in India is predicted to expand at an annual

rate of 28.3% till the FY 2011 which can be translated as a production of 107 million

mobile handsets by 2010. The production would automatically generate profits and

is predicted to increase at an annual rate of 26.6% till 2011, reaching the target of

USD13.7 billion.


Chief Investments in the Communication Industry in

India

Over the past one decade, the flourishing Indian Communication industry has been

successful in drawing the attention of conglomerates that have invested and are

willing to invest more in the sector. With the influx of new telecom giants in Indian

market, the investments are likely to gain immense momentum:

Investment of USD 6 bn by Vodafone Essar for the next 3 fiscal years in order to

expand its list of cellular phone subscribers to 100 million against the existing 40

million.

By 2010, Reliance Communications (RCom) is expecting to increase the total

number of telecom towers by constructing 56,596 telecom towers and attaining the

preset target of 100,000.

Telenor, Norway based telecom giant has purchased 7% of shares in Unitech

Wireless and now possesses 67.25% by bringing in an investment of USD 431.70

million

Indian government owned telecom player, BSNL will invest USD1.17 billion in its

WiMax scheme

A proposal of foreign direct investment worth USD 660.1 million by Federal Agency

for State Property Management of the Russian Federation has been recently

approved by the Indian government. The Agency would be acquiring 20% stake in

Sistema-Shyam after bringing in the investment.

A USD 1 billion investment will be brought in by Tata Teleservices in its newly

introduced GSM facility Tata DoCoMo.


Future of Communication Industry in India

Indian Communication Industry has a flourishing future in its value-added services

market. The pre-set target of the 11th plan from FY 2007 - 12 is to provide 600

million cellular phone connectivity aided by an investment of USD 74 billion.

Moreover, it is estimated that by the FY 2012 the profits generated by Indian

Communication Industry will touch USD 55 billion against the current USD 31

billion.

MARKET SHARE OF TELECOM COMPANY (28 – 02-

2010)

SOURCE:- www.google.co.in/imgres?imgurl=http://technofriends.in/vaibhav/wordpress/wp-content/uploads/2010/04/wireless-

provider-market-share


CHAPTER-2

COMPANY PROFILE


PROFILE OF THE ORGANIZATION

Vodafone Essar, formerly known as Hutchison Essar is a cellular operator in

India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is

owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile

phone operator in terms of revenue behind Bharti Airtel, and third largest in terms

of customers.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67%

held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Realince

Communications, Hinduja Group, and Essar Group, which is the owner of the

remaining 33%. The whole company was valued at USD 18.8 billion. The

transaction closed on May 8, 2007. 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, offering voice and data services in 23 of the country's 23 license

areas. It is among the top three GSM mobile operators of India.

Previous brandsInitially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE.....

In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide,

consolidating its services under a single identity. The Company entered into an


http://en.wikipedia.org/wiki/Reliance_Communications

http://en.wikipedia.org/wiki/Reliance_Communications

agreement with NTT DoCoMo to launch i-mode mobile Internet service in India

during 2007.

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.

Vodafone Essar is spending somewhere in the region of Rs. 250 crores on this

high-profile transition being unveiled today. Along with the transition, cheap cell

phones have been launched in the Indian market under the Vodafone brand. The

company also plans to launch co-branded handsets sourced from global vendors

as well.

A popular daily quoted a Vodafone Essar director as saying that "the objective is to

leverage Vodafone Group's global scale in bringing millions of low-cost handsets

from across-the-world into India."

Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the

country, is expected to provide several Vodafone handsets in India. Earlier this

year, Vodafone penned a global low-cost handset procurement deal with ZTE.


Growth of Hutchison Essar (1992-2005)

In 1992 Hutchison Whampoa and its Indian business partner established a

company that in 1994 was awarded a license to provide mobile telecommunications

services in Mumbai (formerly Bombay) and launched commercial service as

Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.

In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later

Hutch took the majority Stake.

By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison

Whampoa had acquired interests in six mobile telecommunications operators

providing service in 13 of India's 23 license areas and following the completion of

the acquisition of BPL that number increased to 16. In 2006, it announced the

acquisition of a company (Essar Spacetel — A subsidiary of Essar Group) that held

license applications for the seven remaining licence areas.

In a country growing as fast as India, a strategic and well managed business plan is

critical to success. Initially, the company grew its business in the largest wireless

markets in India — in cities like Mumbai, Delhi and Kolkata. In these densely

populated urban areas it was able to establish a robust network, well known brand

and large distribution network -all vital to long-term success in India. Then it also

targeted business users and high-end post-paid customers which helped Hutchison

Essar to consistently generate a higher Average Revenue Per User ("ARPU") than

its competitors. By adopting this focused growth plan, it was able to establish


leading positions in India's largest markets providing the resources to expand its

footprint nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding

agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and

indirect equity and loan interests in Hutchison Essar Limited for a total cash

consideration (before costs, expenses and interests) of approximately US$11.1

billion or HK$87 billion.

1992: Hutchison Whampoa and Max Group established Hutchison Max

2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through

ESSAR acquisition

2001: Won auction for licenses to operate GSM services in Karnataka, Andhra

Pradesh and Chennai

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

Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under

Hutch brand


http://en.wikipedia.org/wiki/File:Cheeka1.jpg

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

Pradesh West' and 'West Bengal'

2005: Acquired BPL (Except Mumbai) - 3 Circles, another mobile service provider

in India

2008: Vodafone acquired the License in remaining 7 circles and has started its

pending operations in Madhya Pradesh/Chhattisgarh with its headquarters at

Malviya Nagar, Bhopal as well as in Orissa, Assam, North East and Bihar

2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G

network.

Hutch was often praised for its award winning advertisements which all follow a

clean, minimalist look. A recurrent theme is that its message Hello stands out

visibly though it uses only white letters on red background. Another recent

successful ad campaign in 2003 featured a pug named Cheeka following a boy

around in unlikely places, with the tagline, Wherever you go, our network follows.

The simple yet powerful advertisement campaigns won it many admirers.

2009: Vodafone launched Recharge Online

2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card

Industry Security Standard (PCI DSS) certification for its Mumbai operations and

launches unlimited SMS offer in Mumbai.

2010: Vodafone emerged as the most admired marketer in India. 2010: Vodafone

crossed 100 million subscribers in India


Subscriber Base

The Vodafone India subscriber base according to COAI — Cellular Operator

Association of India as of Sep 2009 was:

Andhra Pradesh Vodafone Essar - 4,826,493

Assam Vodafone Essar - 405,641

Bihar and Jarkhand Vodafone Essar - 1,886,121

Chennai Vodafone Essar - 1,686,454

Delhi Vodafone Essar - 4,466,895

Gujarat Vodafone Essar - 9,001,337

Haryana Vodafone Essar - 2,444,667

Himachal Pradesh Vodafone Essar - 88,506

Jammu & Kashmir Vodafone Essar - 173,518

Karnatka Vodafone Essar - 4,295,557

Kerala Vodafone Essar - 3,729,586

Kolkata Vodafone Essar - 3,219,323

Madhya Pradesh and Chattisgarh Vodafone Essar - 783,129

Maharashtra and Goa (Except Mumbai) Vodafone Essar - 5,889,390

Mumbai Vodafone Essar - 4,756,222

North East Vodafone Essar - 313,479

Orissa Vodafone Essar - 702,385

Punjab Vodafone Essar - 2,560,849

Rajasthan Vodafone Essar - 6,180,390

Tamil Nadu (Except Chennai) Vodafone Essar - 6,183,793

UP(E) Vodafone Essar - 8,176,771


UP(W) Vodafone Essar - 5,107,985

West Bengal (Except Kolkatta) Vodafone Essar - 5,966,755

Total Subscribers:- 100,000,000(100 Million)

The total is Vodafone Essar 78680291 i.e. 24.05% of the total 344487458 GSM

mobile connections in India till September 2009.

Transition from Hutch to Vodafone in India

The Turkish Vodafone migration set the bar high for India. The Indian team raised

the bar and the migration process to Vodafone from Hutch was again a great

collaboration between global and local teams. Ogilvy India has driven the 360-

degree integration, working with the Vodafone Global team very effectively to

produce great work with great results. A very tough act for the next country to

follow!”


How do you get your employees, trade partners and 35 million customers, who are

perfectly satisfied with their current brand, to welcome an absolutely new brand

overnight? The simplicity and comprehensive nature of the Hutch to Vodafone

transition campaign was a perfect example of the successful entry of a new brand

into a market.

SWOT analysis of Vodafone:

Strengths Strong international presence and brand recognition.

Brand value built by delivering a superior, consistent and

differentiated customer experience.

Vodafone’s customer strategy endeavours to ensure that

customers’ needs are at the core of all products and

services

Weakness

Low R&D

Ubiquitiouegory, products, services

High customer churn (33.33%)

Rural India unable to relate to the brand


Opportunities

Emerging markets and expansion abroad

Innovation

Product and services expansion

Growing data business and 3G auctioning

VAS as a means to increase ARPU <Average revenue per user> (big boss,

Zoo Z00)

Growing Enterprise solution market (10.2% in 2009 anticipated)

Large capital can be raised by listing Vodafone on Indian Stock

Exchange(IPO)

Tower sharing business with Indus Towers

Threats

Lower cost competitors or imports

Price wars

BAD RECEPTION

Falling ARPUs from 247-222(September 2009 )

Hyper competition (total 13 player)


Points of Parity and Points of Difference of Vodafone & Airtel

Points of Parity:

Both the brands have same pricing strategies.(Vodafone & Airtel)

Both the brands have same market segmentation.

Points of Difference:

Target customers of Vodafone are middle class people whereas Airtel

targets the elite and up market class people.

Airtel positions itself as a lifestyle brand whereas Vodafone positions itself as

common man’s brand.

Revenue of Vodafone:

Source: -http://voicendata.ciol.com/content/vnd100_2010vol-II/110070503.asp


BRAND ELEMENTS OF VODAFONE


CHAPTER-3

INTRODUCTION

OF

THE TOPIC


ZOO ZOOIn November 2008, Vodafone Essar decided to launch an advertising campaign to

communicate the VAS offered by the company. The company planned to air the

ads during IPL-Season 2. It was decided that O&M India, the advertising agency

creating campaigns for Vodafone Essar, would create separate ads for each

service. During IPL-Season 2, a different ad would be shown each day, to attract

the viewers' interest.

The Launch

On April 20, 2009, Vodafone Essar launched the ZooZoos advertising campaign.

During the IPL-Season 2, a total of 30 different TVCs including Cricket Alerts,

Beauty Alerts, Phone Backup, Chhota Credit, Vodafone Maps, Vodafone Call Filter,

Live Games, Musical Greetings, etc. were aired.

ZooZoos are advertisement characters promoted by Vodafone during the Indian

Premier League Season 2 (IPL). Zoozoo are white creatures with ballooned bodies

and egg heads who are used to promote various value added services of

Vodafone. These ads though look animated are actually real humans in the Zoozoo

costumes. The ads were created by Ogilvy & Mather; an agency that handles

Vodafone advertisements and the films were shot by Bangalore based Nirvana

Films in Cape Town, South Africa.


Making

Ogilvy & Mather, the agency that handles Vodafone advertisements, were asked by

Vodafone to create a series of 30 advertisements which could be aired each day

during the IPL Season 2. According to Rajiv Rao, National Creative Director of

Ogilvy & Mather, that they "wanted to make real people look as animated as

possible" and hence employed Bangalore-based Nirvana Films to shoot these ads

in Cape Town, South Africa through the Cape Town based production house,

Platypus Productions. The whole idea was coined by Rajeev Rao and so are the

story lines. The name was also chosen by Rajiv Rao The ads were shot by

Prakash Varma and produced by Nirvana Films within a record time of 10 days and

the pre-production to shoot happened within a month and cost around 3 crores

rupees.

The Zoozoo's are in fact real small-bodied, thin women covered in layers of white

fabric. Each facial expression was made of rubber and pasted on the actors rather


http://2.bp.blogspot.com/_XU24TZfYTi0/Sn6cDS0UthI/AAAAAAAAA08/PQAZ1yjRH9s/s1600-h/zoozoo9.jpg

than done through animation, as this could have enhanced the time and cost for

shoot. The effect was achieved by a variety of methods including choosing the right

material for the body suits to ensure that there were no wrinkles when the

characters moved, shooting the footage at lower frame rates and keeping

backgrounds simple in terms of details and the use of a neutral tone of grey. The

sets were made larger than life to make the characters look small as the producers

could not take children as the schedule of shooting was odd.

The zoozoo's were split in two parts - the body and the head. The body was made

using a special material stuffed with foam in some places (notably around the

stomach) while the head was created using a harder material called Perspex.


BRAND TRANSITION FROM HUTCH TO VODAFONE THROUGH INNOVATIVE ADVERTISEMENTS

Hutch’s Pug to Vodafone’s ZooZoo - A story of successful brand transition.

In 2007, Vodafone acquired 67% stake in Hutchisson and re-branded Hutch

telecom into Vodafone.

Hutch had a very strong brand personality. The slogan “Wherever you go our

network follows’ was closely tied up with the Hutch – Pug campaign.

The ads had a very simple message that was communicated through the dog with

backdrop of a beautiful song.

The Hutch network was personified as the dog and the Hutch brand automatically

drew the brand personality of being adorable, cute.


The dog was named Hutch dog and became very popular in India.

The dog became the brand ambassador and a great brand asset to Hutch.

Hutch leveraged this popularity of the dog and used the dog in its websites and in

all its communications.

• Hutch is now Vodafone.


Brand Transition through Ad

• Color of the hutch brand has changed once already with a transition from orange

to the gory pink (which is a color only to be seen on Barbie dolls dress). Now once

again it has gone through a change and this time along with the color the brand

logo has also changed.

• Vodafone is one of the leading global brands and in brand value ranking 2008,

Vodafone is ranked as the 11th in the world and 2nd in Europe.

• Vodafone brand enjoys the image of being youthful, cutting-edge, high on features

(value added services), with high spends in R&D.

Vodafone spent around 50 million USD ( 250 Crores INR) for this brand

transitioning

Zoozoo: The new brand 'endorser' for Vodafone

• Nothing have been as popular as cricket during cricket seasons in India. The recent

ads of Vodafone, telecom provider in India, named ‘ZooZoo’ have got an exception

to it. The ZooZoo ads have melted the millions of Indian hearts making it more

popular than India Premier League (IPL – Twenty20 cricket).


• The Vodafone's services were personified as quirky and lively personalities named

ZooZoo.

• The comical way of communicating the message brought in the good old

connection what Hutch earlier had with people.

• Vodafone India understood what Hutch stood for and tried to connect to people in

the same way. Vodafone could have forced its global appeal to Indian market but, it

didn’t, rather it created a whole new persona for itself in the Indian telecom market.

This confirms that there are no global brands but there is definitely global brand

management.

• Hutch to Vodafone brand transitioning is one of the greatest brand transitions in

this world of brands.

SWOT Analysis STRENGTHS

Campaign penetrated both in the media as well as in social networking sites.

Representation of a common man depicted as a cartoon character

ZOOZOO.

Wide media coverage, more precisely through video.

Easy and cheap moving picture leading to low production cost.

No celebrity endorser - No associated risks and costs.

WEAKNESS:


Difficulty in understanding faced by rural population.

OPPORTUNITIES:

A revolution in the conventional way of advertising that was through

public figures.

Low advertising cost leading to provision of cheaper services

THREATS:

• A major intimidation to the brand VODAFONE

Zoozoo and economics:-

This ad has several implications from the economic perspective. Vodafone

operates in what is known as an “oligopoly”. An oligopoly is a market structure that

has unique features because it is characterized by a few sellers and mutual

interdependence. In this market structure, the strategy (and hence the price,

quantity and revenue) of each player will be affected by strategies of other players

and in turn affects the price, quantity and revenue of other players also. It is a

market where the each seller tries to outdo the other through what is known as

“price wars” (cutting down prices) and “non-price” wars. Advertising is part of “non-

price war” where a firm tries to outdo its competitors through marketing and/or

advertising strategies to generate mass appeal. Zoozoos are part of a unique and


innovative advertisement strategy that has far outdone the strategies of Vodafone’s

competitors.

Revenue in the three months ended June 30, 2009 rose to 10.7 billion pounds

($17.7 billion), in line with analyst estimates, clearly proving that the ad has

contributed to this. Vodafone chief executive Vittorio Colao said that its total

communications strategy was delivering well, with group data revenue up 19 per

cent and fixed line revenue 7 per cent higher than last year's comparative period.

The Vodafone CEO further stated that free cash flow generation was strong at £1.9

billion, up 21 per cent. But while Vodafone has shown signs of combating the

recession; some areas of weakness remained. Not considering the positive effects

from foreign exchange fluctuations and acquisitions, Vodafone’s results also

highlight several areas in its core businesses that require close attention.

Vodafone also noted in its financial statement that its future revenues will be

impacted by reduced mobile termination rates in the UK and by lower roaming

prices and reduced travel across Europe. While Vodafone was doing well in

attracting customers to its fixed services in Europe, growth in this area is not

compensating for the drop in mobile voice revenues. According to a report in the

Telegraph on 24 July 2009, Vodafone, the world's largest mobile phone firm by

revenues, reported sales in line with market expectations for the quarter to end-

June as strength in India and Africa compensated for weakness in Europe.

Vodafone has continued to see good growth in India and South Africa, according to

its Chief Executive Vittorio Colao. Vodafone added 8 million customers in this

quarter, taking its proportionate customer base to 315 million. Verizon Wireless, its

U.S. joint venture with Verizon Communications, had 1.1 million net customer


additions. Vodafone's data revenue grew 19 percent organically to 888 million

pounds. Free cashflow rose 21 percent to 1.896 billion pounds, while the

company's net debt at June 30 stood at 31.2 billion pounds. Growth in India and

South Africa helped the mobile phone giant report a 9.3 per cent rise in revenue in

the three months to the end of June to £10.7billion.

It is clear that the Vodafone ad featuring Zoozoos has gone a long way in

promoting the brand image of Vodafone, while also contributing to its sales and

revenue. Thus it can be seen that the features of the oligopolistic market structure

of this industry has played a significant role in the generation of revenue for

Vodafone, especially through this unique advertising strategy.

Source :-http://hubpages.com/hub/ZooZoo-not-just-another-cartoon-but-an-economic-phenomenon


CHAPTER-4

RESEARCH METHODOLOGY


RESEARCH METHODOLOGY

Methodology is an essential aspect of any project or research. It enables the

researches look at the problem in a systematic, meaningful and orderly way.

Methodology comprises the sources of data, selection of data, various designs and

techniques used for analyzing the data.

Data Collection Methods

There are so many ways in which data shall be collected. The methods that have

been used for collecting the data are:

Primary Research

Questionnaire Method

Secondary Research

Books

Internet

Articles

Newspapers

Magazines

Both of these methods have been used for collecting the data. Questionnaire

method was used for collecting the primary data. This has been done by firstly


preparing an appropriate structured questionnaire. Then this questionnaire was

given to 50 customers who belong to different age groups. This data has been used

for data analysis.

Secondary data for the purpose of research has been mainly taken from internet

and various magazines. Various journals have been used for the purpose of

reference.

Problem Statement

The research statement is

“To make a study on the effectiveness of the ZOOZOO advertisement

strategies adopted by Vodafone Essar ”.

The research that has been given above is not actually a problem statement. Here,

the researcher has to find out whether the advertisement is effective or not. So, the

benefit will be that the company will get to know whether they need to make any

further changes in their strategies or do they need to spend more on the

advertisements.

Research Objectives

The objectives of the research are:

To make a study on the effectiveness of the zoo zoo advertisement strategy

adopted by Vodafone.


A study on the effectiveness of recent advertisement campaign of Vodafone – IPL

2 & 3.

To Understand, how zoo zoo help to improve the brand value of Vodafone.

To check the awareness level regarding Vodafone ZOO ZOO Advertisment.

Sample Design

Sample size : 50

Sample selection criteria : Random selection

Sample selection area : BDA KORMANGLA , BANGLORE

Analysis Tools Used

There are only two analysis tools that has been used for this research. They are

Hypothesis Testing

Chi-Square Testing

Hypothesis testing has been used for testing the following

H0: The ZOO ZOO advertisement strategy adopted by Vodafone is effective in

conveying the proper message.

H1: The ZOO ZOO advertisement strategy adopted by Vodafone is not effective in


Chi-Square Testing has been used to find out whether there the advertisement

strategies used by Vodafone is effective or not. For this the data that has got during

the primary data collection methods has been used.


CHAPTER-5

ANALYSIS

AND

INTERPRETATION


Data Analysis and Interpretation

Data analysis and interpretation is the main part of any research. In this

management thesis also data analysis has been done by going through each and

every question that has been put for the questionnaire.

TABLE:- 1) Do you have mobile phone?

Mobile phone users

S.NO PARTICULARS %

1 USERS 100%

2 NON USERS 0%

100%

USERSNON USERS

MOBILE PHONE USERS

INTERPRETATION:

From the above pie chart it is clear that the people from whom I have collected

were all mobile users.


TABLE :- 2) Which operator service do you use?

CURRENT SERVICE PROVIDER

S.NO OPERATOR SERVICE RESOPNDANT %1 Vodafone 30%2 Airtel 40%3 Idea 14%4 Reliance 6%5 Other operator service 10%

30%

40%

14%

6%

10%

Operator Services

Vodafone Airtel Idea Reliance other

INTERPRETATIONFrom the data that I have collected the result is that Airtel and Vodafone is having

the highest rate of customers. Idea has around 14 %, 6% to Reliance, and other

are Aircel, Tata Docomo, Tata indicom.


TABLE :- 3) Are you aware of the Vodafone Zoo Zoo advertisement?

Awareness’ about the Vodafone Zoo Zoo Advertisement.

S.NO PARTICULARS PERCENTAGE1 Yes 100%2 No 0%

100%

Brand Awarenessyes No

INTERPRETATION

Among the people whom I have taken as the samples, 100 % of the people know

about the Vodafone Zoo Zoo advertisement.


TABLE :- 4) What comes to your mind when you think of Vodafone?

Top of the mind recall (Brand Recall)S.NO PARTICULAR PERCENTAGE1 Red & White Scheme 2%2 Walk in Talk 12%3 Zoo Zoo 52%4 Pug 16%5 Happy to help 16%6 Express Yourself 2%

2%

12%

52%

16%

16%

2%

Brand Recall

Red & White Scheme

Walk in Talk

Zoo Zoo

Pug

Happy to Help

Express Yourself

INTERPRETATIONThe graphical represent shows that most Selected the Zoo Zoo at 52 % while pug

and happy to help at 16% and 16% . This show that Zoo Zoo is very much

associated with Vodafone Brand.


TABLE :- 5) What do you feel when you see Vodafone ZooZoo?

Brand felling about Vodafone Zoo Zoo

S.NO PARTICULARS PERCENTAGE

1 Fun 52%

2 Brand Attraction 20%

3 Clear message about

Vodafone Service

28%

52%

20%

28%

Brand identificationFun Brand Atrraction Clear message

INTERPRETATIONThis graph shows that perception of customer toward the Zoo Zoo, most selected

Fun which shows that how customers are attracted toward the Zoo Zoo.


TABLE 6:-Do you, find Vodafone Zoozoo is more appealing advertisement

than its competitors ?

Vodafone Zoozoo advertisement is more appealing than its customer.S.NO PARTICULAR PERCENTAGE

1 Yes 76%

2 No 24%

76%

24%

Zoozoo Vs competitor advertismentYes No

INTERPRETATIONThis graphical representation show that’s, ZooZoo advertisement is more appealing

than its competitor.


TABLE :- 7How well did the Advertisement of Zoo Zoo Catch your Attention?

S.NO RESPONSE NUMBER PERCENTAGE

1 Very well 19 38%

2 To some Extent 23 46%

3 Can’t Say 6 12%

4 Not at all 2 4%

38%

46%

12%4%

THE NEW VODAFONE MASCOTVery well To Some Extent Can't Say Not at all

INTERPRETATIONFrom the data it is clear that in cluster marketing Zoo Zoo Ad is success in

catching the attention of the customer, 46% Said efficiently and 38% said Very

efficiently only few said that it can’t catch attention. It is also become Mascot for the

Vodafone which help to increase the brand value of Vodafone.


TABLE :- 8) Did zoozoo impact your decision of buying a Vodafone

connection?

Role of Zoo Zoo While purchasing the Vodafone connection.


1 To full extent 24%

2 To some extent 36%

3 Not at all 14%

4 No opinion 26%

24%

36%

14%

26%

Role of Zoo ZooTo full extent To some extent Not at all No opinion

INTERPRETATIONFrom the data it is clear that Zoo Zoo impact on the Buying decision of the people,

36% said To some extent and 24% said TO full extent.


TABLE :- 9 Is IPL the reason for success of Zoo Zoo?


1 Yes 64%

2 No 36%

64%

36%

IPL is reason for the zoozoo successYes No

INTERPRETATIONFrom the data it is clear that IPL is the reason for the success of the zoozoo. In IPL

people curious to see the Vodafone Zoo.


TABLE: - 10Which advertisement you prefer for Vodafone?


1 Animation 60%

2 Celebrities 28

3 Others 12%

60%28%

12%

Advertisment Animation Celebrities Others

INTERPRETATION

From this graph it show that most of the people prefer the animation advertisement

about 60% of the respondent prefer animation.


Hypothesis Testing

Hypothesis testing is way of analyzing the data and the hypothesis that is to be

tested in this research is

H0: The ZOO ZOO advertisement strategies adopted by Vodafone are effective in


H1: The ZOO ZOO advertisement strategies adopted by Vodafone is not effective

in conveying the proper message

Advertisement

Effectiveness

Observed Expected (O-E) (O-E)2/E

Very Efficiently 6 12.5 -6.5 3.38

Efficiently 30 12.5 17.5 24.5

Not at all 5 12.5 -7.5 4.5

Confused 9 12.5 -3.5 0.98

Total 50 33.36

Degree of freedom = (n-1)

= 4-1 =3 at 5% significance

Calculated value = 33.36

Tabulated value = 35.689

The calculated value of chi-square is 33.36; the tabulated value at 5% significance

is 35.789. The calculated value of chi-square is lesser than the tabulated value.

Hence the null hypothesis is accepted.


INTERELATION BETWEEN QUESTIONS

1. Inter relation between Q2 and Q4

Successful Brand recall leads to increase the marker share of the Vodafone. If the

brand recall is high customer motivate to buy the product which increases the

market share.


Successful Brand Felling enhances the buying decision of the customer toward the

purchasing of the Vodafone.


100% brand awareness lead to succeed in conveying proper message to the

customer through Vodafone Zoo Zoo. The ad of Zoo Zoo tell about the value added

Service of the Vodafone.


Zoo Zoo catch the Attention of the customer through providing more appealing

advertisement then its competitor.


CHAPTER-6

FINDINGS


FINDINGS

The following are the finding of the study:-

1. The strategies that have been adopted by Vodafone Essar are excellent compared

to other service providers.

2. 100% brand awareness among the customer.

3. 52% like the Zoozoo , 16% like the pug and 16% like Happy to help.

4. 52% feel that Zoozoo is made for fun,20% said for brand attraction.

5. 76% said Zoozoo advertisement is more appealing than its competitor ads.

6. 64% people said IPL is the reason for success of the Zoozoo.

7. The hypothesis test proves that the advertisement of Vodafone is effective.

Top television ADS in march and April:-

MARCH:- APRIL:-

1) Vodafone 1) Vodafone mobile service

2) Vodafone 2) Vodafone Value added

3) Vodafone 3) Vodafone prepaid calling card

4) Vodafone 4) Vodafone prepaid calling card

5) Pepsi 5) Frooti Mango

6) Airtel 6) Vodafone Mobile connection

7) Vodafone 7) Vodafone international Roaming

8) Vodafone 8) Samsung Guru/1160/2130

9) Vodafone 9) Vodafone National

10) Samsung Dual Sim Mobile 10) Vodafone


Above data show that how effective ZooZoo advertisement , out of top 10 Vodafone

capture 8, this thing shows that how people are crazy about the Vodafone ZooZoo

Advertisement.

Source:- mint newspaper, Friday, April30,2010, Bangalore, page no 12 and

Tuesday, May 25,2010 ,page no- 08.

8. The respondents are 100% aware about the Vodafone Zoo Zoo advertisement.

This Survey shows that Awareness of the Zoo Zoo Advertisement among the

people.



9. The recent advertisement of Vodafone Essar – “IPL Session – 2” has made a great

impact in the history of telecommunications.

Vodafone chose the Indian Premier League 2 (IPL-2) as a platform to launch their

advertisement, which proved to be a great marketing strategy. 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. 85% of the most visible brand on the screen during the

matches.

Source: http://varinderkaur.instablogs.com/entry/vodafone-zoozoo-a-successful-

marketing-strategy/#ixzz0rDoEMNIT

10.The zoo zoo advertisement help in increasing the brand value of the Vodafone

through Brand Recall.

The above survey also tells about the brand recall which directly increase the

Brand value of the vodafone and it also prove that how ads are successful in the

market.

11. More number of people are aware about Vodafone due to its full on advertising

and publicity. These ads have caught the attention of large number of people, thus

Vodafone is more popular among the people. Portraying the products and services

accurately and substantiating any comparative claims. Their operating companies

assess their communications and advertising material periodically to confirm that it

complies with the Responsible Marketing Guidelines.

12. Everyone is aware about the value added services (VAS) of Vodafone as they are

depicted through the advertisements clearly. Thus most of the people bought

Vodafone by seeing these ads. Vodafone also communicates regularly with its

customers to keep them well informed of the benefits of all Vodafone products.


http://varinderkaur.instablogs.com/entry/vodafone-zoozoo-a-successful-marketing-strategy/#ixzz0rDoEMNIT

http://varinderkaur.instablogs.com/entry/vodafone-zoozoo-a-successful-marketing-strategy/#ixzz0rDoEMNIT

13.This Figure show the Branding of Vodafone

With the help above Table we will conclude that this will help to increase the brand

value of the Vodafone because Likeability, enjoyment, Believability are the Element

of the Brand.




Conclusions

1) Zoozoos have given something interesting to the Indian ad industry which has been

seeing the same ideas dished out time and again. The zoozoo concept has

immediately connected with the audiences and any creative that can create an

emotional connect with an audience has hit the right spot.

2) Zoo Zoo become the new brand endorser for the Vodafone, which attract the

people and boost the sales of the Vodafone.

3) The creatures have a universal appeal. Across socio-economic strata, and beyond

age and gender barriers. The Zoozoos appeal to all segments. This is critical for

mass brands. There’s no point using characters that have limited appeal, aka an

Onida Devil or the Air India Maharajah (both dead and buried, not surprisingly). And

the egg-heads play to the galleries, so no cerebral juggling is required while

conceptualizing the situations.

4) Vodafone has proved that it’s possible to involve the audiences without using

celebrities. A good lesson for brand managers who rush to movie stars and cricket

players, because they either don’t believe in their own brands, or are too chicken-

hearted to take risks. Non-use of celebs assures some serious cost savings. That

moolah is then used to create multiple commercials and achieve carpet coverage in

the media.

5) It’s a highly extendible idea. The Zoozoos can be used effortlessly to communicate

any new offer/feature from Vodafone. The humor is in-built, and all the creative

directors need to do is put the creatures in a mad situation. Notice how other cell-

phone makers struggle with movie stars when it’s time to spell out featumres. Airtel

is a good example.


7) The Zoozoos help impart a truly distinctive brand identity for Vodafone. The lock-in

with the brand is deadly. And because of that, they make the advertising and the

brand memorable. Which is the hallmark of a good idea. Other marketers with

lesser ideas go to ballistic levels to be noticed and heard. The Havells’ hangman ad

is a good example. The Zoozoos simply break the clutter through their uniqueness.

8) The creatures can be seamlessly extended for 360-degree media usage. For

example, they get smartly used for in-place promotions at the IPL matches. Not

only do they plonk the lovable creatures in the midst of the crowds in the stadium,

but at last year’s finale, they had the studio anchor do a live interview with them,

where the Zoozoo couple belted out solid cricket gyaan in their hysterical voices.

(To be cruelly honest, they made more sense to me than some of the ‘esteemed’

empanelled commentators). Imagine the impact: reportedly, 29 million people

watched the final match on their TVs, what a massive Zoozoo dose that. Brilliant

stuff!

9) Zoo Zoo increase the Brand Recall which help to increase the brand value of the

Vodafone. 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.

10)ZooZoo, the new brand ambassador of Vodafone, has created a furore in the

advertising industry. Zoozoo have been successful in giving Vodafone a makeover

and establishing maximum brand presence.


11)The ads were a hit among the Indian people, especially the youth. This trend can

be observed from the huge fan following on social networking sites, Facebook,

Orkut and Twitter. There are more than 200 pages on ZooZoos having more than 2

hundred thousand fans, growing daily. The ads were viewed by hundreds of

thousands of people in Youtube. This shows that how people crazy about the

Vodafone Zoo Zoo ad. By joining in Fans club of Zoo Zoo people associate with

the brand which enhance the brand value of the Vodafone.

12)Vodafone received the first People for the Ethical Treatment of Animals (PETA)

2009 Glitterbox Award, for replacing their ads which earlier used Pug with more

humane alternatives in their ZooZoo ads.

13)Another factor that aided the success of ZooZoo is the scale of the campaign.

Reports suggest that there are around 25 different ads of ZooZoo to be aired during

this IPL season. This unprecedented scale has kept the curiosity high among the

viewers. It has infact dwarfed all the other advertisers in this season.

14)Marketing Guru Seth Godin always emphasised that Brands should be

Remarkable. He defined remarkable as " Worthy of Making a Remark about "

The ZooZoo is a classic example of being Remarkable.


SUGGESTIONS

The company can have more innovative advertisements and can assign more

finance in it.

Zoozoo advertisement entirely based on expression. No doubt, zoozoo has

impressed every age group. But, if we look at rural part of country, people are not

able to understand the exact message. So as per my intellect, they should come

with some text message or audible message.

We must remember that India consists diverse culture and communication. Again,

the urban population vastly can read, write and speak english, in case of rural

population very little can read, write and speak english, but are literates in their own

languages (mother tongue).

Since the concept of the advertisement is in the form of the text and appears in the

end of the advertisement, majority of the population don't understand. This grey

area must be looked into. Otherwise it will become a mere cartoon shows.

Initially Hutch was using the Pug that is a dog, which has attracted so many people

and created a wonderful demand in market. When Vodafone took over the Hutch

then company kicked out the pug and introduced the zoozoo. That was really good

decision, but I would like to suggest, instead of kicking out the pug they can come

with both zoozoo and pug. So customer will also get attracted those were great fan

of pug.


Vodafone customer are offered discount as a loyalty reward. If any loyal customer

buy Zoo Zoo product he/ she can get discount of 10- 20 % over the Zoo Zoo

product. This can help to increase the customer base of the Vodafone.

I have already mentioned that zoozoo came in the picture with VAS. 3G services

have launched in India and Vodafone is providing these services, so company has

to use zoozoo mascot again to enlighten the services. No doubt this will make

difference, when zoozoo will come with funny and creative ads. People will get

acquainted with the 3G and its virtues.


Appendixes

Krupanidhi Business School

Project Survey regarding the Vodafone zoo zoo – Revolutionizing promotional strategy and the brand rejuvenation

Name: ________________ Age: _______

Sex: Male/Female Contact no/ Email Id:______________

Q1) Do you have a mobile phone? Yes No

Q2) which operator’s Service do you use?

Vodafone Airtel Idea Reliance Other please specify ______________

Q3) Are you aware of the Vodafone zoozoo advertisement? Yes No

Q4) What comes to your mind when you think of Vodafone ? Red & white Scheme Walk in Talk zoo zoo pug (dog) Happy to help Express Yourself

Please specify if any other_______________Q5) What do you feel when you see Vodafone zoo zoo?

Fun Brand Attraction Clear message about Vodafone service


Q6) Did zoo zoo advertisement Succeed in conveying proper message to you?

Very efficiently Efficiently Confused Not at all

Q7) Do you , find Vodafone Zoo Zoo, more appealing advertisement than its competitors ?

Yes No

Q8) How well did the advertisement of Zoo Zoo Catch your attention? Very well To some extent Can’t say Not at all

Q9) Did zoo zoo impact your decision of buying a Vodafone connection?

To full extent To some extent Not at all No opinion

Q10) Is IPL the reason for success of zoo zoo? Yes No

Q11) Which advertisement do you prefer for Vodafone? Celebrities Animation other

Q12) To create brand image what else can Vodafone do, other than zoo zoo ads?-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.


BIBLIOGRAPHY1. Web Sites:

www google.com

www.vodafone.com

www.wikipedia.com

www.afaqs.com/perl/news/story.htm

2. News Paper Mint news paper


http://www.afaqs.com/perl/news/story.htm

http://www.wikipedia.com/

http://www.vodafone.com/

Zoozoo Project

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