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Mumbai, March 5, 2008 WFA/ISA - Global Advertiser Conference 1

Presentation by:

Sachin Nagare

Avinash Khodase

Ashish Ghadage

Avinash Tilekar

Abhijeet Kulkarni

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The name Vodafone

comes from Voice data

fone, chosen by the

company to

Reflect The Provision

Of Voice And Data

Services Over MobilePhones.

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Vodafone in INDIA came with acquiring

Hutchison essar limited.

Vodafone was launched officially on 21st

September 2007.

Than on hutch was rebranded as Vodafone.

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Vodafone Group, which was established in1982

mobile networks in 31 countries

341 million proportionate customer base7% share of the global mobile

telecommunications market

History

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Competitive Position

second largest mobile

operators globally by

subscriber base and

revenue behind China

Mobile that focuses on

its domestic Chinese

market

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Primary markets and customer

groups Operates in both developed and emerging markets with 7%

share of the global mobile telecommunications market.

Eastern Europe, Western Europe, and North Americas areamong the top three markets for the company bysubscriber but growth has been more muted in thosedeveloped markets.

In contrast, India and China are 4th and 5th largest

Regions respectively but growth prospect remains positivein those emerging markets.

The company is serving its fixed and mobile services toboth enterprises and consumers around the world.

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The technology

The company uses both fixed and mobile networktechnologies, including customer devices, access andtransmission network, core network, and othernetworks, to deliver products and services including

voice, messaging, data and fix line solutions anddevices to assist customers in meeting their totalcommunications needs .

The company has continued to diversity and expandthe services we provide to our customers to meet their

total communications needs

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The public image

While Vodafone Group is perceived as the most

recognizable global mobile telecommunicationsoperator, the company has continuously made efforts onmaintaining and enhancing its reputation as a sociallyresponsible company and it has reported theenvironmental and social impacts of its businesses for

ten years. The company aims to provide balanced account of our

performance on the socio-economic, ethical andenvironmental issues that are most material toVodafone

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The external environment

Divided into three interrelated subcategories

Economic Factors

International Monetary Fund (2010) reported thatEuropean market growth is projected only at 1.0%

and 1.3% in 2010 and 2011 respectively butVodafone Group has heavily relied on slower growthand saturated European market due to extremelyhigher mobile subscriber penetration with more than150% in some countries

In contrast, IMF (2010) reported that Indian marketgrowth is projected at 9.4% and 8.4% in 2010 and2011 respectively

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Political factors

formulating and implementing its strategies in accordancewith each country specific legal, regulatory and tax

environments. extensive range of requirements that regulate and supervise

the licensing and the allocation of frequency spectrum

Technological Factors

great impact on innovative and differentiated products and

services in response to the rapidly changing customerneeds and market environments

to continuously adapt new ICT, the company has createdvalue-added services like Vodafone 360 and CloudComputing services.

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InternalE

nvironment Threat of Entry

recent MVNO (mobile virtual network operators) businessmodel lowers the barrier and small companies withdifferentiated products and services has been identified asnew entrants

Supplier Power

Vodafone Groups key suppliers are handset

manufacturers like Samsung, Nokia and Motorola, andnetwork equipment manufacturers like Ericsson, Alcatel-Lucent, and Nokia Siemens Networks.

suppliersbargaining powers have weakened due to lackof technical advantages and new Chinese entrants

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Buyer Power

While Vodafone Group has been confronted with a

fierce competition globally, its customers tend to bemore price-sensitive in both developed and emergingmarkets. The company has still relied on Europeanmarkets with significantly higher mobile subscriber

penetration

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Operating environment

Competitive Position

faced fiercer competition across most of global marketsthan ever. Its major multi-national competitors are France

Telecoms Orange, Deutsche Telekoms T-Mobile, andTelefonicas O2 Its performance in European market isworse than its rivals especially in Germany, Italy andSpain.

The company is also facing fierce price competition in

Indian market. It presently comes third behind BhartiAirtel and Reliance

Customer Profiles

Traditional voice and messing services have been alreadycommoditized globally and they are affordable enough formost people living in the countries where Vodafone

Groups is operating

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Selection, training and motivation Vodafone (2009) stated that it provided an aggregate of

230,000 days of training, an average of three days peremployee, and in our most recent people survey, 71% of

employees rated their opportunities to develop their skillsand knowledge as good or very good

diverse workforce and offers equal opportunities for allaspects of employment and advancement, regardless ofrace, nationality, sex, age, marital status, disability,

religious or political belief, to understand expectations ofits diverse customers globally and have required skills andcompetences to create the innovative and differentiated

products and services that can meet their expectations.

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Operational performance

not cost leadership but differentiation strategy and

it focuses on creating new value-added services to

entice both existing and new customers globally. Employees are identified as a source of

competitive advantages to improve existing

customer relationships locally and the company

has maintained high performance benchmark foremployee engagement.

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To keep its leading edge, Vodafone iscontinually looking to add value to the

services it provides and to the packages it

offers to customers.

ZooZoo, the new brand ambassador of

Vodafone, has created a furors in theadvertising industry.

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Marketing strategies ofV

odafone Vodafone has given

birth to the Zoozoo:

a special character

created specifically

to convey a value

added service(VAS) offering in

each of the newly

released

commercials.

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Vodafone has come with creative advertising

campaign for its various plans.

This strategy has captured the imagination ofmillions.

The strategy is a buzz that lives up to the brand

image of great creative's and clever marketing.

In the first 10 days of IPL (Indian premier league) it

has reached a cumulative of 89 million people.

This is a wonderful strategy adopted by Vodafone.

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This has helped the company to raise not

only its profits through sales but has also

tremendously increased its brand value.

Zoozoos have become so popular that

Vodafone has succeeded in its effort of viralor buzz marketing. Their add campaign has

gained so much popularity all over the

world.

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The viewership for the add is highest

among all the adds. Whats interesting is

that there are some 25 such commercials

planned under this campaign, 10 of whichare already on air.

The aim is to release approximately one

ad a day, to sustain interest till the end of

the IPL.

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Zoozoos have been successful in giving Vodafone a makeoverand establishing maximum brand presence.

The charm of the Zoozoo was itself a great self-marketingstrategy and they were instant success among masses. Withinfew days, Zoozooz created a huge audience for them, giving a

boost to the Vodafone brand.

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BUSINESS STRATEGIES.

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Magic Box. Stock Alerts.

International Roaming.

Bhakti Saagar.

Dating Tips. Voice SMS.

Fashion Tips.

Recharge Anywhere.

Ringtone. Group SMS.

Call Divert.

Background Music. Exam Results.

Beauty Tips.

Phone Backup.

IPL commentary. Cricket Alerts.

IPL contests.

Chotta Credit.

Maps Live. Live Games.

Musical greetings.

Themes for advertisement

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Success Zoozoos dominating social networking sites. Created Strong Association.

Wallpapers, ringtones, videos, contests. pictures,stories etc ofZoozoos.

Videos had 3million hits in 3 weeks.

Most watched video.

Most watched brand in breaks.

Vodafone becomes IN

DIAs 3rd biggest tele-com company after airtel and Reliance, within a

very short period.

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Low cost ads made a very good impact.

Zoozoo Concept highlights the presence ofVodafone in India very dominantly.

The strategy of strong advertising not only saveslots of money but also creates a positive impactin society regarding their brand.

Advertises more relate to common man ,leads

to more customers. Within a very short period they acquire 3rd

place in communication market.

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Distribution network

A supply chain is described that consists of all the parties and theirsupplied

activities that help us to create and deliver services to the finalcustomer.

The front channels are specially kept in mind.

ACTIVITIES: 1. Order

2. Handling

3. Storage

4. Display

5. Promotion

6. Selling 7. Information and feedback.

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The channel structureCo. or direct sales Indirect sales Misc. sales

Business head DSA/DST Dealers

G.M. Sales Manager Shop Owners

Assist. Sales Manager TLS Metro Shops

Sales Consultants Telemarketing Executives Hutch Shops

Executives Field Executives

Tele Marketing Executives

Field Executives

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The channel structure operates on the basis of segmentations

provided, namely:

Prepaid segmentation Postpaid segmentation

Individual bronze I B Individual bronze I B C O C P

Individual silver I S Individual silver I S co. owned co. paid

Individual gold I G Individual gold I G C O I P

Individual platinum I P Individual platinum I P co. owned indvl. Paid

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Sales Management Activities

company has centralized supply chains to weaken the bargainingpower of suppliers to achieve cost and operational efficiency

Vodafone Group has heavily invested in Group Technology andimprovements of its ability to adapt the advanced technologies

globally to create innovative and differentiated products andservices

To diminish the bargaining power of substitute products andservices, the company has continued to diversify its product andservice portfolio and offered a wide range of products and services

including value-added services to meet its customers

totalcommunications needs.

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Objectives

In the annual report for the year ended 31 March

2010, Vodafone Group (2010a) reported four main

objectives:

drive operational performance,

pursue growth opportunities in total communications,

execute in emerging markets, and

strengthen capital discipline

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Account Management profitability ratios are reported relatively lower than the industry norm

generally due to the impact of business acquisitions and disposals andforeign exchange associated with its global geographic expansion

An increase in short-term borrowings has been relatively higher than an

increase in the cash flows from operating activities, and its debt ratio has

increased due to business acquisitions and disposal, and foreign exchange

rates.

The company has acknowledged its liquidity risks and it has subsequently

implemented One Vodafoneprogram to improve cost effectiveness and

efficiency.

The company, however, is facing further challenges in taking higher

priority in investing in existing businesses to improve ARPU from existing

customer base, generating cash from its existing assets, and expanding itsbusiness to new countries where Vodafone Group can expect immediate

turnaround rather than high returns in the long term.

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SWOT Analysis

Strengths

1. The largest geographic footprin

2. Ability to adapt the advanced ICT3. Group Technologies

4. Strong brand recognition

Weaknesses

1. Financial instability

2. Underperformance in key markets

3. Weak domestic position

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Opportunities

1. Value added products and services

2. Fixed-mobile convergence

3. Mobile broadband4. Emerging market growth

Threats

1. Exposure to economic slowdown and maturing markets2. Fierce competition

3. Regulation

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