Marketing Strategies of Vodafone India Limited

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Chapter 1 Profile of the Company 1.1 Company’s Profile 1.1.1 Name: Vodafone India Ltd. 1.1.2 Address: 1.1.2.1 Corp. Office: Vodafone Mobile Services Limited, C 48, Okhla Industrial Area, Phase II, New Delhi 110 020 Ph: +91 9820098200, +91 22 71715000 1.1.3 Email id: [email protected] 1.1.4 Website: https://www.vodafone.in/pages/home_del.aspx? cid=del/ 1.2 Nature of the company and its business Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 49.1 million customers. 1

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Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 49.1 million customers. Vodafone can help to transform societies by bringing innovative products and services to our 404 million customers, 68% of whom live in emerging markets.StrengthsComplementary strenghts of Vodafone & Hutch esaar • The brand name it has in the indian market • The kind of subscriber bas it has in the indian market Weakness• Negative return on assets (ROA) underperform key competitors like AT&T, BT Group, Deutsche Telecom• US business not nearly as strong as European/rest of the world operations 80% of its business is generate in EuropeOpportunities• Focus on cost reductions improving returns• Majority stake in Hutchison Essar in IndiaThreats• Highly competitive market• Still lags behind major competitors in the USADVERTISING STRATEGIES OF VODAFONEVodafone India is a member of the Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company with revenues of over INR 32,000 crores has operations across the country with around 155 million customers. Vodafone India has firmly established a strong position within the Vodafone Group too, making it the largest subscriber base globally. This journey is a strong testimony of Vodafone’s success in a highly competitive and price sensitive market.

Transcript of Marketing Strategies of Vodafone India Limited

Chapter 1 Profile of the Company

1.1 Company’s Profile

1.1.1 Name: Vodafone India Ltd.

1.1.2 Address:

1.1.2.1 Corp. Office:

Vodafone Mobile Services Limited, C 48, Okhla Industrial Area, Phase II, New Delhi

110 020

Ph: +91 9820098200, +91 22 71715000

1.1.3 Email id: [email protected]

1.1.4 Website: https://www.vodafone.in/pages/home_del.aspx?cid=del/

1.2 Nature of the company and its business

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in

1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai.

Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base,

with over 49.1 million customers.

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'.

Vodafone is the world's leading international mobile communications company. It now has

operations in 25 countries across 5 continents and 40 partner networks with over 260 million

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customers worldwide. Vodafone has partnered with the Essar Group as its principal joint venture

partner for the Indian market.

The Essar Group is a diversified business corporation with interests spanning the manufacturing

and service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and

Construction. The Group has an asset base of over Rs 400 billion (US$ 10 billion) and employs

over 20000 people.

The year 2007 was another remarkable year for Bharti Airtel. The company retained its Numero

Uno slot in the Indian Wireless market. At the end of Dec-2007, the company had 55.16 mn

subscribers up by 72.5% YoY. Vodafone Essar India ended the year with 39.86 mn subscribers.

BSNL which gained spectrum by virtue of being a government company and facing criticism

from private operators, managed to grow at a slower pace and ended the year with 32.71 mn

subscribers. Idea Cellular had an impressive performance and ended the year with 21.05 mn

subscribers. Aircel was the fastest growing cellular operator with subscriber base doubling in

2007 to 9.43 mn.

1.3 About company

We’ve come a long way since making the first ever mobile call in the UK on 1 January 1985.

Today, more than 400 million customers around the world choose us to look after their

communications needs. In 30 years, a small mobile operator in Newbury has grown into a global

business and one of the most valuable brands in the world. We now operate in around 30

countries and partner with networks in over 50 more.

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In an increasingly connected world, it’s no longer just about being able to talk and text. Our

network allows people to share images and videos as soon as they’re captured; to share thoughts

and feelings as soon as they’re created. And because we now do more than just mobile in many

markets, more customers look to Vodafone for great value in their fixed line and broadband

services too.

Vodafone understands that businesses need a communications partner with solutions that scale

and adapt as their business needs change. They may need a few smart phones for voice and email

on the move. Or they may require a fully integrated solution that enables sharing of documents,

video conferencing and access to corporate applications from any location. Whatever their size

and whatever their need, we are constantly looking for new, innovative ways to help our business

customers grasp every opportunity in a simple and straightforward way.

Our commitment to the community in which we operate extends beyond the products and

services we offer. The cornerstone of our commitment to global social investment is the

Vodafone Group Foundation. Funded by annual contributions from the Vodafone Group, the

Foundation and its network of 27 country foundations supports the community involvement

activities of Vodafone  and funds selected global initiatives directly.

True to our origins, Vodafone has always committed to deliver useful and inspiring innovation.

In 1991 we enabled the world’s first international mobile roaming call. In 2002, with Vodafone

Live! we set a new standard for mobile communications with internet access on the move.

Fuelled by the desire for sustainable innovation, we recently introduced Vodafone Money

Transfer which allows customers in emerging markets to send and receive money safely and

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easily using their mobile phone. We’ve also caused a stir in the industry with the Vodafone 150 –

our most affordable ultra low cost handset yet.

We’re a brand that loves change – if it’s not happening naturally then we’re creating it ourselves.

It’s in our DNA to push forward, to create a better future, to never rest and find new ways that

help people communicate.  That’s the lifeblood that runs throughout Vodafone. We are driven to

empower people.

To find that spark that empowers you is why we are in business. That’s what we mean when we

say ‘power to you’.

1.4 Vision and Mission:

1.4.1 Vision

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.

Our 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

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our business at the same time, by developing commercially viable, scalable services that support

sustainable development.

1.4.2 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.

We 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.

1.4.3 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

TechnoServe, using our technology to help 500 million smallholder farmers in Africa to increase

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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.

1.4.4 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.

1.4.5 Being responsible

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We 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.

We 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 our responsibilities seriously, we aim to continue to enhance Vodafone’s reputation

and the contribution of our products and services to sustainable living.

1.5 MANAGEMENT TEAM

1.5.1 Gerard Kleisterlee, Chairman

Gerard Kleisterlee, aged 68, became Chairman of Vodafone Group Plc on 26 July 2011 at the

conclusion of the AGM, having previously served as a non-executive member of the Board. He

retired as President/Chief Executive Officer and Chairman of the Board of Management and the

Group Management Committee of Koninklijke Philips Electronics N.V. (‘Philips’) on 31 March

2011 after a career with Philips spanning three decades. He has been a non-executive director of

the Supervisory Board and member of the Audit Committee of Royal Dutch Shell since

November 2010, and was previously a member of the Board of Directors of Dell Inc., resigning

in October 2013 and also previously a member of the Daimler AG Supervisory Board, resigning

on 9 April 2014.

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1.5.2 Vittorio Colao, Chief Executive

Vittorio Colao, Chief Executive, aged 52, was appointed Chief Executive of Vodafone Group Plc

after the AGM on 29 July 2008. He joined the Board in October 2006 as Chief Executive,

Europe and Deputy Chief Executive. The early part of his career was spent in the Milan office of

McKinsey & Company working on media, telecommunications and industrial goods, with

additional responsibility for recruitment. In 1996 he joined Omnitel Pronto Italia, which

subsequently became Vodafone Italy, and he was appointed Chief Executive in 1999. He was

then appointed regional Chief Executive Officer, Southern Europe for Vodafone Group Plc in

2001, became a member of the Board in 2002 and was appointed to the role of Regional Chief

Executive Officer for Southern Europe, Middle East and Africa for Vodafone in 2003. In 2004

he left Vodafone to join RCS MediaGroup, the leading Italian publishing company, where he

was Chief Executive until he rejoined Vodafone as CEO, Europe. He sits on the International

Advisory Board of Bocconi University, Italy and is a Member of the Steering Committee of

the European Round Table of Industrialists.

1.5.3 Nick Read, Chief Financial Officer

Nick Read, aged 50, Chief Financial Officer, was appointed Group Chief Financial Officer and a

member of the Vodafone Group PLC Board on 1 April 2014.

Since joining Vodafone in 2001, Nick has held a variety of senior roles including CFO, CCO and

CEO of Vodafone Limited, the UK operating company. In his role immediately prior to Group

CFO, he was the Regional CEO for Africa, Middle East and Asia Pacific for five years and was a

Board member of the listed companies of Vodacom, Safaricom, and Vodafone Qatar, our

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subsidiaries in India and Egypt, and our joint ventures, VHA in Australia and Indus Towers in

India.

Prior to joining Vodafone, he held senior global finance positions with United Business Media

Plc and Federal Express Worldwide.

Nick is a Fellow Chartered Management Accountant and a Chartered Global Management

Accountant, with a BA (Hons) in Accounting and Finance.

1.6 Products

1.6.1 Handsets

Wide range of handsets covers all our customer segments and price points and is

available in a variety of designs.

66 new models released in the 2010 financial year.

23 exclusive handsets launched.

1.6.2 Smartphones

A handset offering advanced capabilities including access to email and the internet.

24% of handset sales in Europe.

All leading brands represented including iPhone in 14 countries.

Launched two tailor-made Vodafone 360 handsets: Samsung H1 and Samsung M1.

1.6.3 Vodafone branded handsets

Enabling millions of people in emerging markets to share the benefits of mobile

technology.

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Prices start from less than US$15.

16 new models released under our own brand.

Low cost combined with high-end features, such as touch screen and mobile internet

capability.

1.6.4 Voice & messaging services

We provide value focused pricing through unlimited bundles of voice and text services.

Voice services incorporate revenue for national, international and roaming calls.

SMS services include text messages as well as multiple media, such as pictures, music,

sound, video and text.

The core functionality and use of handsets continues to be voice and text messaging services.

Many different tariffs and propositions are available, targeted at different customer segments,

and include a range of unlimited usage offers which have been particularly appealing to

customers.

With sophisticated handsets becoming readily available, customers are increasingly using their

mobile phones to complement their lives in new and innovative ways. Data usage continues to

grow rapidly fuelled by large numbers of intuitive internet enabled devices (‘smartphones’),

many with touch screens such as the iPhone and BlackBerry® Storm™, and transparent pricing

available through our “internet on your mobile” unlimited browsing tariff. Instant messaging is

available with Yahoo! and MSN and we offer integrated services from leading internet brand

partners including YouTube, eBay, Google™ and Google Maps™.

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Our partnership agreements with leading companies, such as RIM, Samsung and Google, have

enabled us to be first to market with cutting- edge devices such as the BlackBerry Storm,

Samsung H1 and Samsung M1 (our two tailor-made handsets that support our Vodafone 360

proposition) and Google Nexus One.

Available in 31 markets including partner markets, Vodafone branded devices are designed to

meet a range of customer needs and preferences – from low cost phones offering simple voice

and text, through fashion and design influenced, to competitively priced mobile internet devices

with cutting-edge smartphone functionality including touch screen and mobile internet

capability. During the 2010 financial year Vodafone launched its most affordable handset to

date, the Vodafone 150, which retails for less than US$15 unsubsidised, giving millions of

people in emerging markets the opportunity to share in the benefits of mobile technology for the

first time.

Products promoted by the Group include Vodafone live!, Vodafone Mobile Connect USB

Modem, Vodafone Connect to Friends, Vodafone Eurotraveller, Vodafone Freedom Packs,

Vodafone at Home, Vodafone 710 and Amobee Media Systems.

In October 2009, it launched Vodafone 360, a new internet service for the mobile, PC and Mac.

This was discontinued in December 2011 after disappointing hardware sales. This was after The

Director of Internet Services resigned in September 2010 tweeting "5 days before I leave

Vodafone. Freedom beckons." In February 2010, Vodafone launched world's cheapest mobile

phone known as Vodafone 150, will sell for below $15 (£10) and is aimed at the developing

world. It will initially be launched in India, Turkey and eight African countries including

Lesotho, Kenya and Ghana.

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Mobile money transfer services

In March 2007, Safaricom, which is part owned by Vodafone and the leading mobile

communication provider in Kenya, launched a mobile payment solution developed by

Vodafone. M-PESA is aimed at mobile customers who do not have a bank account, typically

because they do not have access to a bank or their income is insufficient to justify a bank

account. The M-PESA system allows customers to deposit and withdraw cash via local agents,

and transfer money to other mobile phone users via SMS.

By February 2008, the M-PESA money transfer system in Kenya had gained 1.6 million

customers. By 2011 there were fourteen million M-Pesa accounts by which held 40 percent of

the country’s savings. Following M-PESA’s success in Kenya, Vodafone announced that it was

to extend the service to Afghanistan. The service here was launched on the Roshan network

under the brand M-Paisa with a different focus to the Kenyan service. M-Paisa was targeted as a

vehicle for microfinance institutions' (MFI) loan disbursements and repayments, alongside

business to business applications such as salary disbursement. The Afghanistan launch was

followed in April 2008 by the announcement of further a further launch of M-PESA in Tanzania,

South Africa and India.

In February 2012, Vodafone announced a worldwide partnership with Visa. To introduce a

Vodafone Mobile Wallet, initially in Germany, The Netherlands, Spain, Turkey and the UK.

"The Vodafone mobile wallet represents the next stage of the smartphone revolution," says

Vittorio Colao, Vodafone's group CEO. This will enable Vodafone subscribers to pay for goods

and services using their mobile phones instead of coins and banknotes.

mHealth services

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In November 2009, Vodafone announced the creation of a new business unit focused on the

emerging mHealth market (the application of mobile communications and network technologies

to healthcare). One of its early success stories is with the Novartis-led "SMS for Life" project in

Tanzania, for which Vodafone developed and deployed a text-message based system that enables

all of the country’s 4,600 public health facilities to report their levels of anti-malarial

medications so that stock level data can be viewed centrally in real-time, enabling timely re-

supply of stock. During the SMS for Life pilot, which covered 129 health facilities over six

months, stock-outs dropped from 26% to 0.8%, saving thousands of lives.

Medopad at the Vodafone pavilion CeBIT 2014

Vodafone has also been active in mHealth from a philanthropic perspective. The Vodafone

Group Foundation is a founder member of the mHealth Alliance, supporting the adoption of

mHealth through policy research and advocacy and the development of interoperable and

sustainable mHealth solutions.

Vodafone is a strategic partner with several mHealth companies including Numera/BlueLibris

and Medopad. Medopad was showcased in the Vodafone Pavilion at CeBIT Global Conferences

in March 2014 in Germany.

Vodafone Foundation

The Vodafone Foundation is a recognised charity which supports and initiates projects which use

mobile technology to benefit the vulnerable. It is described by Vodafone as ‘Mobile for Good’;

using mobile technology to support good causes. They often work in collaboration with other

charitable groups. Below are some examples of their initiatives:

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TECSOS – mobile phones have been adapted to allow victims of domestic violence to activate

immediate contact with the emergency services if they are in danger

Paediatric Epilepsy Remote Monitoring System – a monitoring system that allows physicians to

remotely make patient observations

Safe Taxi System – an initiative in Portugal that consists of technology that taxi drivers can use

to alert police if they are in danger of being assaulted

Learning with Vodafone Solution – technology that allows teachers in India to use graphical and

multi-media content to enhance their teaching

The World of Difference UK programme - successful applicants choose charities for which they

work either full-time for two months or part-time for four months (minimum 15 hours a week).

The charities are provided with £2,500, with each winner receiving the balance as a salary after

NI and tax have been paid.

1.7 Research Methodology

1.7.1 Research Objectives

to analyse the present promotional strategies of Vodafone vis-à-vis its competitors

to analyze how Vodafone to build brand awareness through sponsorship

To evaluate the impact of promotion and advertising strategies on sales and consumer

spending with respect to Vodafone.

1.7.2 Methodology

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The research methodology includes the information regarding the sample size design, data

collection methods and the analytical tools used.

Here also the same is explained in detail regarding the sample size, data collection methods and

the analytical methods used in this research.

1.7.3 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

Direct Interview 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

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questionnaire. Then this questionnaire was given to 50 customers who belong to different age

groups at the various shopping malls in Delhi region. 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.

Sample Design

Sample size : 50

Sample selection criteria : Random selection

Sample selection area : Delhi

The samples have been selected from Delhi & NCR region from the various mall shoppers. The

samples include people from all age criteria and the analysis has been done on this basis.

Chapter 2 SWOT Analysis

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2.1 Strengths & Weaknesses of the company

2.1.1 Strengths

Complementary strenghts of Vodafone & Hutch esaar 

The brand name it has in the indian market 

The kind of subscriber bas it has in the indian market 

It has the 3rd higest market share in India 

It has a 2nd higest subscriber base in inda 1st being airtel 

Its strong advertising startiges and impact on people 

Its Indias 3rd biggest mobile carrier

2.1.2 Weakness

Negative return on assets (ROA) underperform key competitors like AT&T, BT Group,

Deutsche Telecom

US business not nearly as strong as European/rest of the world operations 80% of its

business is generate in Europe.

2.2 Opportunities & Threats that the company faces

2.2.1 Opportunities

Focus on cost reductions improving returns

Majority stake in Hutchison Essar in India

Research and development of new mobile technologies 

Large capital can be raised by listing Vodafone on Indian Stock Exchange(IPO) 

Tower sharing business with Indus Towers

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2.2.2 Threats

Highly competitive market

Still lags behind major competitors in the US

Extremely high penetration rates in key European markets

European Union regulation on cross-border cell phone usage by customers 

Chapter-3: Functional Analysis of the Company

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ADVERTISING STRATEGIES OF VODAFONE

Vodafone India is a member of the Vodafone Group and commenced operations in 1994 when

its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company with

revenues of over INR 32,000 crores has operations across the country with around 155 million

customers. Vodafone India has firmly established a strong position within the Vodafone Group

too, making it the largest subscriber base globally. This journey is a strong testimony of

Vodafone’s success in a highly competitive and price sensitive market.

At the Global ET Telecom Awards 2012, Vodafone India received the award for ‘Value Services

–Rural Innovation Category’. Vodafone India has been awarded the ‘Best Marketing Company

for 2011′ in a survey conducted by a leading financial daily. The company received the ‘Most

Admired Telecom Operator’ and ‘Best 3G Operator’ awards at the recent Telecom Operator

Awards 2012. Vodafone Business Services received the “Best Enterprise Service Provider” at

the Frost & Sullivan Awards 2012. The company has also received the globally recognized

prestigious ‘Product of the Year 2012’ consumer award for Vodafone Apps Store in the Mobile

Services Category. In another survey conducted by Nielsen, Vodafone India was the only

telecom player in the Top 10 ‘Most Exciting Youth Brands’ in India.

At Vodafone, sustainability is an integral part of the company’s mission and strategy, shaping the

conduct of business every day. Vodafone India, in line with its group philosophy has released the

Corporate Sustainability Report for India – Footprints 2010-11. To view the online version of the

report, please visit www.vodafone.in. Vodafone India has been awarded the prestigious “Golden

Peacock Award” for corporate social responsibility for 2012.

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Vodafone Group is one of the world’s largest mobile communications companies with over 406

million customers as on June 30, 2012. Vodafone currently has equity interests in over 30

countries across five continents and more than 40 partner networks worldwide.

Vodafone entered India in December 2005 by acquiring a 10 percent stake in Bharti Ventures

Limited (Bharti) which later became Bharti Airtel Limited. However, as Bharti later ruled out

further dilution of its stake, Vodafone started considering other options to increase its market

share in India...

Vodafone Essar was launched in India on 21st September 2007. Vodafone was welcomed in

India with the “Hutch is now Vodafone” campaign. The popular and endearing brand Hutch was

transitioned to Vodafone across India. This marked a significant chapter in the evolution of

Vodafone as a dynamic and ever-growing brand. This brand unveiled nationally through a high

profile campaign covering all important media.

Vodafone, the world’s leading mobile telecommunication company, completed the acquisition of

Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July

2007. The transition from Hutch to Vodafone is probably the largest brand change ever

undertaken in this country and arguably as big as any in the world. It is even larger than Hutch’s

own previous brand transitions. The migration from Hutch to Vodafone was one of the fastest

and most comprehensive brand transitions in the history of the Vodafone 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 rebranded in two months, with 60% completed within 48 hours of the

launch.

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The Vodafone mission is to be the communications leader in an increasingly connected world –

enriching customers’ lives, helping individuals, businesses and communities be more connected

by delivering their total communication needs.

Vodafone’s new advertising campaign in India carried on with the same popular pug that has

become a brand ambassador for Hutch. ‘Where ever you go, our network follows,’ was the

previous slogan with the pug following the child wherever he goes. Now, with Hutchison Essar

becoming part of the Vodafone Group, the new campaign had started with Vodafone Essar

earmarking Rs. 2.5 billion on the transition from Hutch to Vodafone. The main message of the

brand transition exercise: The new Vodafone is the same old Hutch. In the advertisement, the

pug sees a new home when it returns after an outing and feels the change is better. The new catch

phrase will be ‘Make the most of now.’

Vodafone had tied up with Star India to run a complete roadblock of its fresh campaign on the

entire network by unveiling the 24-hour nationwide rebranding campaign. Vodafone used all of

the commercial airtime across all 13 channels in five languages (Hindi, Tamil, Bengali, Marathi

and English) from 9 pm on 20 September to 9 pm on September 21. This exercise included TV

commercials, transition bumpers and contest spots to promote the Vodafone Essar brand.

Commercial spots had also been purchased on Sony.

Conventionally awareness for a new brand takes some time to build. However, Vodafone wanted

to achieve this task at the shortest possible time. Hence, Maxus and Star Network worked closely

to address this challenge and came up with the idea wherein during the day of the launch a

complete roadblock on the Star Network channels was conceptualized. Considering that the Star

Network is the lead network in India, this was the most apt platform for Vodafone launch. This

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strategy helped not only in achieving build rapid brand awareness but also breaks the clutter

during such an important launch in the most happening category – telecom. This is a first of its

kind mega media initiative in India by any brand. While the campaign was heavy on television, it

also included all other media vehicles. The print campaign kicked off on 21 September, a day

after the television splash.

While the brand campaign had been addressing the transformation, the Company, on the other

hand was swiftly preparing for a price war in the Indian telecom space. Indeed, it was preparing

to provide mobile handsets to new subscribers at ultra-cheap prices, ranging from about $19 to

$25.

Vodafone Essar launched low priced cell phones in India under the Vodafone brand, and also co-

branded handsets sourced from major global vendors. By bringing in millions of low-cost

handsets from across the globe into India, Vodafone Essar distributed bundled handsets through

its existing 400,000 distribution outlets. By flooding the market with its low-cost handsets,

Vodafone also became a mass mobile phone brand like Nokia, Samsung, Motorola, and Sony

Ericsson in addition to continuing as telecom services provider.

Previously, similar handset-driven expansion strategies to grow subscriber bases were adopted

by CDMA players, like RCOM and Tata Teleservices. Vodafone is the first GSM operator to

follow suit.

The Vodafone mission is to be the communications leader in an increasingly connected world –

enriching customers’ lives, helping individuals, businesses and communities be more connected

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by delivering their total communication needs. Vodafone’s logo is a representation of that belief

– The start of a new conversation, a trigger, a catalyst, a mark of true pioneering.

Vodafone’s Advertising Strategies: Hutch to Vodafone

Advertising is probably one of the most frequently used vehicles for Rebranding, as it is fairly

easy, flexible and quick to change. It is a powerful way of reaching a broad or targeted audience

quickly and is effective at signalling a change in positioning, however real or broad that may be.

There are many examples of where advertising has either repositioned or strengthened brands,

other good examples of where advertising has built a new position for a brand or built a strong

emotional link with the public are where companies have created a sort of soap opera out of their

advertising.

The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had a two-fold

task to achieve: announce the entry of Vodafone into India and highlight the metamorphosis of

Hutch into Vodafone. O&M realised that they had a fantastic property in the Hutch pug, which

they had been using for about five years. Therefore, to show the transition from Hutch to

Vodafone, O&M launched a rather direct, thematic ad showing the trademark pug in a garden,

moving out of a pink coloured kennel which symbolised Hutch making his way into a red one

that is the Vodafone colour. A more energetic, chirpier version of the ‘You and I’ tune associated

with Hutch was played towards the end, and it concludes with ‘Change is good. Hutch is now

Vodafone’.

O&M has also rolled out four Commercials featuring Hutch’s animated boy and girl,

‘introducing’ the new brand’s logo to consumers. The four creatives which were of five seconds

23

each included the duo peeping over a wall to see the logo; parasailing with the logo flying high

behind them; releasing a rocket bomb wherein the explosion reveals the logo; and lastly, drawing

curtains aside to show the logo.

Four other ads with the pug did the rounds of telly screens. These five and 10 second spots cast

the dog in situations where he, literally, saw red, using the colour as a visual mnemonic to

remember the brand by. The pug was shown in a red basket, popping up from a red cart, drying

himself on a red mat, and hiding in a red blanket. Each of these made use of the ‘Hutch is now

Vodafone’ tagline.

The print ads, in all major languages in several leading dailies, were kept unbelievably simple: a

still shot of the pug inside a red kennel. The same creative was used in outdoor hoardings as

well, in all the 16 circles in which Vodafone now operates.

It wasn’t easy integrating Vodafone with Hutch; the latter, as is known, is a subtle, understated

brand, while globally, Vodafone represents high energy, dynamism and young vitality – all

represented by its bright red speech mark logo. And so they put in elements such as a more

energetic tune and feel to the ads.

A few advertisements include:

Hutch is now Vodafone: If you watch any of the star channels or tuned into 20-20 world

cup, you would have seen this ad. On 11 February 2007, Vodafone agreed to acquire the

controlling interest of 67% held by Cheung Kong Holdings in Hutch-Essar for US$11.1

billion and now had to rebrand itself so it has decided to run a new ad series which piggy

banked on Hutch’s dog mascot and the theme “Change is Good”. This required nearly

24

250 crores of spending by Vodafone but they have successfully painted the town red. An

interesting part of this campaign was on the opening day roadblock where they made a

deal with Star India so that besides them no other commercials were aired (apart from in-

channel promos) on the Star India’s channels for 24 hours.

Vodafone Valentine Day Special Ads: Vodafone had released a simple and sweet ad for

musical greetings targeted at couples during the valentine week the feature of this

campaign is its simplicity and believability and is quite well received. It uses the

positioning “Make the most of now” enjoy the video

Vodafone Chota Credit Ink Ad: This new ad had come as refreshing change and more so

that this ad takes a very refreshing look at school and at fountain pens. This ad creates a

wonderfully subtle message which really puts the point of chota (small) credit across.

Vodafone Essar's Advertising Campaigns

After successfully rebranding 'Hutch' as 'Vodafone', Vodafone Essar started expanding its

presence in India. The company used almost all media channels to advertise its services.

It not only advertised on television, but also in newspapers, the radio, and on hoardings across

the country...

The Making of Zoozoos Campaign

In November 2008, Vodafone Essar decided to launch an advertising campaign to communicate

the VAS offered by the company (Refer to Exhibit IV for Some VAS offered by Vodafone

Essar). 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

25

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 (Refer to Exhibit VI for Screenshots of some of the Advertisements)...

The Response

In April 2012, as the TVCs started being aired on television, they created the necessary buzz

both in traditional as well as in social networking sites like Facebook, and Twitter and video

sharing website, YouTube.

Superbrand sponsorship

Vodafone sponsors several leading sporting brands including the record breaking Ferrari

Formula 1 motor racing team and Manchester United, one of the world's most successful football

clubs.

It is a good way of increasing brand awareness, which helps to generate consumer preference and

to foster brand loyalty.

A company can reinforce awareness among its target market by sponsoring an event or

organisation that attracts a similar target market.

26

A sponsor can enjoy a wide range of benefits from a carefully selected sponsorship, which can:

raise brand awareness and create preference

create positive PR and raise awareness of the organisation as a whole

provide attractive content for a range of products and services

build brand positioning through associative imagery

support a sales promotion campaign

create internal emotional commitment to the brand

act as corporate hospitality that promotes good relations with clients.

The organisation receiving the sponsorship (sponsee) stands to benefit enormously from both

financial support and other forms of backing from an established partner, provided that both

parties have agreed a set of common objectives to underpin the sponsorship.

Similarly, the Vodafone Race Track racing simulator allows customers to compete in a racing

simulator.

Organisations gain competitive advantage by developing USPs: things that only they provide and

which make them distinct from anything provided by their competitors.

This is a completely new world of mobile services, delivered on the latest camera phones.

Vodafone's strategy is customer focused and product led; the company is continually developing

new products and services which utilise the latest technological advances.

However, as consumers become increasingly sophisticated users of modern mobile technology,

they make new demands and seek added value through product improvements.

27

Public relations (PR) is the planned, sustained effort an organisation makes to establish, develop

and build relationships with its many publics.

The benefits of sponsorship

Sponsorship is the material support of an event, activity or organisation by an unrelated partner.

It is a good way of increasing brand awareness, which helps to generate consumer preference and

to foster brand loyalty. A company can reinforce awareness among its target market by

sponsoring an event or organisation that attracts a similar target market.

Sponsorship is not an act of charity - it must show some form of positive return on investment

(ROI). Since sponsorship is a business arrangement, standard evaluative criteria should be used

to establish the suitability of a proposed event in relation to the sponsor? image and products.

A sponsor can enjoy a wide range of benefits from a carefully selected sponsorship, which can:

raise brand awareness and create preference

create positive PR and raise awareness of the organisation as a whole

provide attractive content for a range of products and services

build brand positioning through associative imagery

support a sales promotion campaign

create internal emotional commitment to the brand

act as corporate hospitality that promotes good relations with clients.

Before sponsoring an activity, the sponsor must feel sure that the event/organisation will be

successful; has a proven track record, good prospects and generally be aligned with the sponsor's

28

brand and business objectives. Sports sponsorship is the most common and can range from

international to regional and local events.

The organisation receiving the sponsorship (sponsee) stands to benefit enormously from both

financial support and other forms of backing from an established partner, provided that both

parties have agreed a set of common objectives to underpin the sponsorship. In this case, Ferrari

will benefit from joint ventures and shared revenue streams arising from the creation of a range

of products and services, as well as the sale of merchandising within the telecom sector.

Sponsoring Ferrari

Vodafone intends to be recognised as one of the world's leading brands. Its sponsorship of

Ferrari, with the immensely valuable media coverage that Formula 1 attracts, helps Vodafone to

achieve this objective. Vodafone has over 100 million customers worldwide, spanning five

continents and 28 countries. Formula 1 offers Vodafone high profile exposure in a sport that

commands a worldwide television audience of 360 million people for each race.

Ask most people to name one racing team that they associate with Formula 1, and they will say

'Ferrari'. The name conjures up images of passion, joie de vivre, a can do attitude, innovation and

technology, all qualities that help Ferrari to take it to the top and keep it there. Who better then,

to sponsor Ferrari's next two assaults on the world title than Vodafone - the world's largest

telecommunication company. That is the thinking behind Vodafone's offer of sponsorship, and

Ferrari's acceptance of it.

Key events in the early days of the sponsorship were:

29

25th May 2001 - The sponsorship agreement was announced at the Formula 1 Grand Prix

at Monaco.

6th February 2002 - The Vodafone-branded car was launched at Ferrari's headquarters in

Italy.

3rd March 2002 - The Vodafone-branded Ferrari team raced for the first time at the

Australian Grand Prix.

Sponsorship strategy

Vodafone sees sponsorship as involving far more than having a logo on a football shirt or a

racing car. The company believes that its sponsees act as ambassadors for the Vodafone brand,

saying to the world 'This brand is all about being dependable, empathetic, innovative, can do and

full of vitality and life.'

Moreover, Vodafone has established tangible links between the products and services it offers

and the organisations that it sponsors.

For example, Ferrari fans can subscribe to Multimedia Messaging Services (MMS), news

services and chat forums, download games, ringtones, wicked welcomes, wallpaper and other

images and play in quiz competitions. Similarly, the Vodafone Race Track racing simulator

allows customers to compete in a racing simulator. Vodafone is thus committed to developing a

range of value added connections to the sponsorship package. It explains this link in the

expression. "It's no good having the toys if you don't invest in the batteries to make them work".

Organisations gain competitive advantage by developing USPs: things that only they provide and

which make them distinct from anything provided by their competitors. Vodafone's link with

30

Ferrari gives them a USP in terms of up-to-the-minute involvement with the world's leading

racing team.

Fitting into corporate strategies

An organisation's strategies are the long-term plans that are the means that enable it to achieve its

objectives (ends).

Vodafone's current target is to become one of the world's top ten brands. To achieve this, it is

expanding its global presence.

Vodafone is the market leader in the UK and in many of the other markets in which it operates.

To stay ahead of the field it continually seeks to bring new technologies to the market. For

example, it has recently launched 'Vodafone live!' This is a completely new world of mobile

services, delivered on the latest camera phones. Users will be able to communicate with more

than just words, helping them to keep in touch with the people that matter to them, better than

ever before.

In a first-of-its-kind initiative, Vodafone India will speed up India by offering motor-racing

enthusiasts their first street racing experience. Motor racing fans and loyal customers of

Vodafone will witness Lewis Hamilton burn rubber in his Vodafone McLaren Mercedes MP4-27

car on Sunday, September 16, 2012 (evening), just a week before the Singapore Grand Prix 2012

night race. The venue for this unique and exciting initiative will be the historic and breath-taking

landscape of Marine Drive in South Mumbai.

31

Lewis will enthrall the crowd driving in his Vodafone McLaren Mercedes MP4-27 car along the

curves of the brilliantly illuminated Queen’s necklace (Marine Drive) that will be made to look

like a Formula 1 race track complete with grand stand and pit garage. The ambience, the driving

skills of Lewis and lightning fast speeds of the Vodafone McLaren Mercedes car is sure to leave

the audience spellbound. Some lucky customers will have the privilege of riding with Lewis

Hamilton and a chance of visiting the pit garage to see the technology behind the team, powered

by Vodafone.

Vodafone is the ‘Title sponsor’ and ‘Official Total Communications Partner’ of the Vodafone

McLaren Mercedes team since 2007. This partnership is Vodafone’s major global sponsorship

and is part of an ongoing commitment to the Formula 1 World Championship, a sport which

continues to deliver massive global television coverage and which has significant appeal for

Vodafone’s consumer and business customers and racing fans around the world.

During January 2013, Vodafone India ran a campaign to spread awareness about its range of

Value Added Services at the Maha Kumbh Mela, the largest religious festival in the world,

visited by over 100 million people. In keeping with the mood of the festival, it was decided to

promote devotional music from Vodafone’s repertoire of Value Added Services.

To do this activation, OglilvyAction used a vital winter accessory – earmuffs – as a player and

embedded devotional music into it. OgilvyAction is the global brand activation network of

Ogilvy & Mather. These musical earmuffs were branded with the Vodafone logo and a message

that instructed people to ‘Dial 123 to listen to devotional songs’.

32

‘Internet Is Fun’ Vodafone Blogging Contest On Indiblogger

Indiblogger is out with yet another fun blogging contest called ‘Internet is fun’ with Vodafone

India. You may recall the TVC’s during IPL5 matches around funnily dressed people playing

something that look like telematches and generally having fun. The TVC’s are part of a digital

campaign designed by O&M to drive usage and penetration of Internet among Vodafone

customers by simplifying their experience and showing them the fun possibilities of Internet.

The message ‘Internet is Fun’ is being carried across most popular networks such

as Youtube, Facebook, Twitter, etc. But what’s noteworthy is the ‘Internet is fun’ blogging

contest, where bloggers are invited to write about what makes the internet fun for them on their

mobile phones.The internet is fun when you connect with friends, watch videos shared by others,

play games online, experience exciting new apps or get to know someone from the other side of

the world.

But the internet could be fun in many different ways too. So blog about your fun experiences and

you could win a MacBook Pro, Sony Playstations, Sennheiser headphones, Zoozoo bean bags

and tickets to the IPL finals with travel included! So much for having fun…Since the IPL finals

are coming up soon, this contest will close on the 18 th of May itself. The rules are more or less

the same – only fresh entries allowed and must have a link to the website, posts should be

original and Indivine votes do not matter; judgement is based on creativity alone.

33

Questionnaire

The method of data collection is primary data collection.

The sample size is 50.

1. SEX RATIO OF THE RESPONDENTS

S.NO. SEX NUMBER AGE (%)

A Male 39 78%

B Female 11 22%

Table no.1: sex ratio

78%

22%

SEX RATIO

MaleFemale

Fig no.1: sex ratio

INTERPRETATION:

The graphical representation of the table shows that out of 50 respondents 78% were male and

22% were female.

2. AGE GROUP OF RESPONDENTS

34

S.NO. AGE GROUP NUMBER %AGE

A 15-25 21 42%

B 25-35 18 36%

C 35-45 6 12%

D 45 above 5 10%

Table no.2: age group

42%

36%

12%

10%

AGE GROUP OF RESPONDENTS

15-2525-3535-4545 above

Fig no.2: age group

INTERPRETATION:

The graphical representation of the table shows that out of total respondents 42% were of age 15-

25, 36% 25-35, 12% 35-45, and rest were above 45.

3. MOBILE PHONE USERS

SL. NO PARTICULARS %

1 Users 100%

35

2 Non- Users 0%

Table no.3: mobile phone users

100%

MOBILE PHONE USERS

UsersNon- Users

Fig no.3:mobile phone users

INTERPRETATION:

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

users.

4. AWARENESS ABOUT ALL TELECOMMUNICATIONS SERVICES

SL. NO RESPONSE NUMBER %

1 Yes 45 90%

2 Not All 5 10%

Table no.4: awareness about teleservices

36

90%

10%

AWARENESS ABOUT TELE-SERVICES

YesNot All

Fig no.4: awareness about teleservices

INTERPRETATION:

Among the people whom I have taken as the samples, 90% of the people know about all the

telecommunications services available in India, 10% don’t know about all the services.

5. CURRENT SERVICE PROVIDER

S.NO. SERVICE PROVIDER NUMBER %

1 Airtel 12 24%

2 Vodafone 14 28%

3 Idea 10 20%

4 Reliance 5 10%

5 BSNL 6 12%

6 Tata Indicomm 3 6%

Table no.5: service provider

37

24%

28%20%

10%

12%

6%

SERVICE PROVIDERS

AirtelVodafoneIdeaRelianceBSNLTata Indicomm

Fig no.5: service provider

INTERPRETATION:

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

rate of customers. Idea has around 20%, 10% to Reliance, 12% to BSNL and the rest to Tata

Indicomm.

6. VODAFONE AWARENESS SERVICES

Sl. No Response Number %

1 Yes 49 98%

2 No 1 2%

Table no.6: voda awareness

38

98%

2%

VODAFONE AWARENESS

YesNo

Fig no.6: voda awareness

INTERPRETATION:

From the data, it is clear that Vodafone services are familiar to 98% of the samples and only 2%

responses that they don’t know about Vodafone services.

7. VODAFONE AWARENESS SOURCE

SL. NO SOURCE NUMBER %

1 Advertisements 35 70%

2 Hoardings 7 14%

3 Newspapers 3 6%

4 Mouth Publicity 5 10%

Table no.7: voda awareness source

39

70%

14%

6%10%

VODAFONE AWARENESS SOURCE

AdvertisementsHoardingsNewspapersMouth Publicity

Fig No.7: voda awareness source

INTERPRETATION:

From the data around 70% of the samples came to know about Vodafone from advertisements,

14% from hoardings, 10% by mouth publicity and the rest from newspapers.

8. ROLE OF ADVERTISING WHILE PURCHASING MOBILE CONNECTIONS

SL. NO RESPONSE NUMBER %

1 To Full Extent 6 12%

2 To Some Extent 30 60%

3 Not At All 5 10%

4 No Opinion 9 18%

Table no.8: role of ads

40

12%

60%

10%

18%

ROLE OF ADVERTISEMENT

To Full ExtentTo Some ExtentNot At AllNo Opinion

Fig no.8: role of ads

INTERPRETATION:

From the data, it is clear that among the total samples, 76% says that advertising plays an

important role while they purchase a mobile connection and the rest says no.

9. SOURCE OF ADVERTISEMENT

Sl. No Source Number %

1 Television 34 68%

2 Radio 9 18%

3 Newspaper 4 8%

4 Magazines 3 6%

Table no.9: ads sources

41

68%

18%

8%6%

ADVERTISEMENT SOURCE

TelevisionRadioNewspaperMagazines

Fig no.9: ads sources

INTERPRETATION:

Among the total samples, 68% says that they are mainly watching advertisements from

television, 18% says that they came to know from radio, 8% from newspaper and the rest from

magazines.

10. TELECOMMUNICATION WITH GOOD ADVERTISING

SL. NO SERVICE PROVIDER NUMBER RESPONSE

1 Airtel 10 20%

2 Vodafone 21 42%

3 Idea 9 18%

4 Reliance 7 14%

42

5 Others 3 6%

Table no.10: service provider with best ads

20%

42%

18%

14%

6%

SERVICE PROVIDER WITH BEST ADVERTISING

AirtelVodafoneIdeaRelianceOthers

Fig no.10: service provider wth best advertisement

INTERPRETATION:

The service provider with best advertising according to the samples is Vodafone with 42%,

Airtel with 20%, idea with 18%, Reliance with 14% and the rest for others.

11. HOW WELL DID THE ADVERTISEMENT OF THE VODAFONE CATCH YOUR

ATTENTION?

SL. NO RESPONSE NUMBER %

1 Very Well 26 52%

2 Some What Well 10 20%

3 Undecided 6 12%

43

4 Not At All 8 16%

Table no.11: voda ads

Fig no. 11: voda ads

INTERPRETATION:

From the data it is clear that around 50% of the samples say that they understood about the

advertisements of Vodafone very well. 20% says that they understood it some what well, 16%

says that they have not at all understood about the ads, and the rest of the samples are in the

mode undecided.

12. DO YOU THINK THAT ADVERTISEMENT MADE BY COMPANY INFORMS

YOU ABOUT THEIR NEW PRODUCTS?

Sl. NO. PARTICULARS NUMBER %

1 Yes 34 68

44

52%

20%

12%

16%

VODAFONE ADVERTISEMENT

Very WellSome What WellUndecidedNot At All

2 No 12 24

3 Undecided 4 8

Table no.12: new product ads

68

24

8

NEW PRODUCT ADS

YesNoUndecided

Fig no.12: new product ads

INTERPRETATION:

Out of the total samples, 68% of the samples say that they are getting informed about the new

products of the service providers through advertisements. 24% says that they are not getting

informed about through advertisements and the remaining says undecided.

13. BASED ON ADVERTISEMENTS MADE BY COMPANY, WOULD YOU LIKE TO

GO FOR MORE CONNECTION FOR YOU OR UR FAMILY IN FUTURE?

SL. NO RESPONSE NUMBER %

45

1 Yes 38 76%

2 No 7 14%

3 Undecided 5 10%

Table no.13: more connection

76%

14%

10%

MORE CONNECTIONS

YesNoUndecided

Fig no.13: more connection

INTERPRETATION:

From the total samples 76% says that they would like to go for more connections for their

family, 14% of samples says no for further connections and the rest says undecided.

14. SINCE HOW LONG YOU ARE USING VODAFONE SERVICES?

SL. NO RESPONSE NUMBER %

1 Less than 1 month 2 14%

2 2 – 6 months 1 8%

46

3 6 – 12 months 3 21%

4 More than 1 year 8 57%

Table no. 14: time period of usage

14%

8%

21%57%

VODAFONE USAGE

Less than 1 month2 – 6 months6 – 12 monthsMore than 1 year

Fig no.14: time period of usage

INTERPRETATION:

From the total users of Vodafone i.e. 14 samples, 57% of them are using the service for the more

than 1 year, 21% of them are using it for 6-12 months, 14% of them used for less than 1 month

and the rest used it for 2 – 6 months.

15. WHY YOU ARE NOT USING VODAFONE SERVICES?

SL. NO RESPONSE NUMBER %

1 Lack of awareness 6 17%

47

2 High Prices 20 55%

3 Poor Services 4 11%

4 Poor Network 6 17%

Table no.15: reason for not using vodafone services

17%

55%

11%

17%

REASON FOR NOT USING VODAFONE

Lack of awarenessHigh PricesPoor ServicesPoor Network

Fig No. 15:reason for not using vodafone services

INTERPRETATION:

From the data it is clear that most of the people were not opting Vodafone services only because

of the reason that it is costlier, 17% says that it is because of poor network, another 17% says

that it is because of lack of awareness and the rest says that it is because of poor services.

Chapter 4 Lessons Learnt

48

Promotion strategies give brand a touch of glamour, and the hope that a famous face will provide added

appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited

by showing him a known face, and an effective demand is created. This would normally work best when

the concerned brand has close substitutes, or has a need for differentiation, or requires quick entry in a

short lifecycle category.

Economic conditions, market structure, policies regarding tariffs and interconnect agreements, and

customer characteristics are some of the significant forces affecting the growth of cellular services. Since

it takes about 3-4 years for cellular operators to attain financial payback on their projects, estimates of

market size can be useful for network and investment planning. Qualitative narratives and descriptive

statistics of the cellular sector for many countries are available from a variety of industry sources.

However, rigorous empirically based studies of cellular market growth are much more limited in number.

Moreover, these studies do not provide much insight into the mechanics of growth in cellular markets.

Such insights can inform policymakers about the process by which growth occurs and help develop

policies that can improve cellular penetration in developing countries. They are also useful to service

providers in planning their network rollouts and services in the face of market competition.

With the introduction of new providers, the incumbents face erosion of their subscriber base. They can

take preemptive measures to improve the quality of their services offerings, reduce prices and increase the

breadth of their service offerings. The new operators have to battle against the advantages of the

incumbents such as existing subscriber base, economies of network operations, network infrastructure and

their financial strength.

49

At last, consider all these points we would like to say that Vodafone is using simple but unique and

effective advertisement strategy compare to other telecommunication companies in India. Their

advertisement strategy in India is totally different from England and other countries. Where football is

famous in England in the same way they know cricket is considered as religion in India. So they targeted

people through huge advertising during IPL. They use indoor like TV, radio and internet as well as

outdoor sources like posters, pamphlets, billboards in playgrounds and many others for advertisement.

We also have found that Zoozoo advertisement campaign is most effective campaign compare to Pug and

Happy to help service campaign because of its way of making and giving information to customers.

In the same way, we learnt that how to do business research, how to collect relevant data, how to

sampling and how to analysis the fact. Through this report we have clear idea that how to make an

academic report. It helped us also to enhance our knowledge about how a company does effective

advertising, how they make different advertisement strategy for different area, how they segment the

market and targeting. Whatever we mentioned above our objective, almost we found and completed.

Vodafone media buying strengths and the fact they selected an impactful creative concept to raise

awareness, but till they talk of actual plans of engagement or follow-through ideas, I'm not convinced that

this is an initiative. The problem is that they lost an opportunity to sound authentic and impactful during

the initial burst of communication.

50

4.1 RECOMMENDATIONS

Satisfaction levels of Vodafone customers are comparatively lower than Air Tel

customers. They should introduce reward-based schemes for its customers.

Vodafone should focus on those customers whose satisfaction is high but low loyalty.

Loyalty based programs should be introduced, which the company has introduced now in

terms of Rewards programmes. Also an alarming proportion of its customers are those

with low satisfaction and low loyalty. This category poses a threat and their loyalty

should be established.

The company together with the consumers’ associations should agitate that the revenue

share must be abolished as they were imposed not to pay for the subsidizing some, not so

affluent telephone users or for putting public telephones in villages.

A cellular becomes more and more useful as its reach increases, that is, more are

connected to network, and then the revenue share so utilized has atleast a redeeming

feature. Only then the cellular prices can be brought down to make it available to the

maximum number of the users.

Adding more customers to the network to enhance the network value to users or by

abolition or reduction of prices and there more people affording the service.

The reachness of service must be deepened so as to make a list of strong and loyal

customers, which will be proved successful while making advertisement through indirect

channel.

Try to create the need with the help of its advertisement campaign and sponsorship of

Television shows to make it for more usage.

51

Vodafone advertisement should be more understandable to a rural people.

Online advertising is also a very effective medium to promote publicity on advertisement.

52

Bibliography

1. Books:

a. Batra Rajeev, Myers G. John & Aaker A. David (2007), Advertising Management,

Pearson Education.

b. Kotler P., Keller K.L., Koshy A & Jha M. (2007), Marketing Management, 12th

edition, Prentice Hall.

2. Websites:

a. https://www.vodafone.in/pages/home_del.aspx?cid=del ----accessed on __/__/2014

b. http://www.mxmindia.com/2013/08/adstrat-vodafones-made-for-proposition/

#sthash.KTrU2WGA.dpuf----accessed on __/__/2014

c. http://www.exchange4media.com/49238_%E2%80%9Cvodafone%E2%80%99s-

new-ads-deliver-message-crisply%E2%80%9D.html----accessed on __/__/2014

d. http://www.mxmindia.com/2013/08/adstrat-vodafones-made-for-proposition/----

accessed on __/__/2014

e. http://www.business-standard.com/article/companies/vodafone-rethinks-strategy-

to-drive-growth-113021400033_1.html----accessed on __/__/2014

f. http://www.mbaskool.com/business-articles/marketing/196-vodafone-3g-india-

superhero-zoozoo.html----accessed on __/__/2014

g. http://press-releases.techwhack.com/vodafone-speeds-india-street-racing-

experience-751/----accessed on __/__/2014

h. http://www.domainofhope.com/2011/03/vodafone-zoozoo-3g-campaign-

integrated.html----accessed on __/__/2014

i. http://www.campaignindia.in/Video/307322,vodafone-delights-again.aspx

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j. http://articles.economictimes.indiatimes.com/2012-07-03/news/

32524004_1_vodafone-zoozoos-new-campaigns ----accessed on __/__/2014

k. http://marketingmixx.com/marketing-plan-2/196-marketing-plan-of-

vodafone.html----accessed on __/__/2014

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