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EXECUTIVE SUMMARY
The Vodafone Group provides a full range of mobile telecommunications services,
including voice and data communications. Vodafone has equity interests in 27 countries
and partner networks in a further 27 countries with almost all the group's mobile
subsidiaries operating principally under the brand name 'Vodafone'. Turnover for year
end March 2006 was £29.4 billion.
A big issue for companies like Vodafone in the mobile phone market has been how to
differentiate. New, breakthrough products are critical to win in this highly competitive
sector. However, the industry has traditionally been technology-led, rather than
customer-led. This has meant a pronounced lack of competitive differentiation.
Vodafone had come to realise that its traditional concept testing was not working hard
enough. While hundreds of product concepts were tested, there was no standardised
testing, no benchmarks and no way to compare one concept with another.
To overcome this, the Vodafone Global Insights team developed the Differentiation
Potential System (DPS). This was an end-to-end system designed to put customer
insight at the heart of product development. It was a complete business process to
ensure that the voice of the customer was integrated into the way products were
developed and priorities set.
By the end of 2005, the system was providing Vodafone with the common currency by
which teams could measure the success of their product ideas. In addition, highly
detailed diagnostics meant that further development on every individual product could
be based on understanding customers. Even more significantly, it changed the way the
company does business by having a profound effect on the way it perceives and reacts
to customer needs.
VODAFONE GROUP PLC
Type : Public limited company
Founded : 1991
Headquarters : London, United Kingdom (Head office)
Newbury, Berkshire,
United Kingdom (Registered office)
Key Person : Gerard Kleisterlee (Chairman),
Vittorio Colao (CEO)
Industry : Telecommunications
Products : Fixed line and mobile telephony,
Internet services, Digital television
Revenue : £46.417 billion (2012)
Employees : 86,373 (2012)
Website : www.vodafone.com
MOBILE INDUSTRY
Developments in communication technology have enhanced the mobile industry,
making it easy for people to remain connected to their friends, families and offices.
Mobile, or wireless, technology refers to any type of portable device, such as laptop
computers, cell phones and personal digital assistants.
 Function
The mobile industry gives users the ability to take their communication devices with
them on the go. The goal of wireless technology is to allow people to access information
without being tied to one location.
 Benefits
The biggest benefit that the mobile industry offers consumers is flexibility. With mobile
technology people can stay in touch with one another from any place in the world. In
the business world, businessmen and women rely on the portability of mobile devices so
that they may work remotely and enhance their efficiency.
 Risks
A main risk associated with mobile technology is the potential for unauthorized
individuals, or "hackers," to illegally access sensitive electronic information. To prevent
or minimize the chances of this happening, users are advised to password protect their
mobile devices. Laptop computers and even cellular phones have locking options that
require a password to gain access into the device
BACKGROUND
 Vodafone entered India in December 2005
 Acquired 10 percent stake in Bharti Ventures Limited (Bharti Airtel)
 Successfully rebranded 'Hutch' as 'Vodafone„
 Vodafone Essar started expanding its presence in India
 Rebranding included
 “Change is good...” Baseline - “Hutch is now Vodafone”
 Earlier Campaigns: Happy to help, Friend circle, Cheaper SMS, “Amar Chitra Katha” Alert.
INTRODUCTION
Orange was formerly known as France Telecom. The French government owns more
than one-quarter of Orange. The EE brand picks up criticisms from other French state-
owned companies such as Electricity Company EDF and Areva. Areva is one of the
world’s top nuclear energy companies and is involved in every step of nuclear power
production from uranium mining right through to recycling used fuel.12
The German government and German state-owned development bank KfW together
own about 32% of Deutsche Telekom.
UK Company Vodafone is infamous for stories about its tax avoidance. Vodafone, the
world’s second largest mobile phone company by revenue, paid no corporation tax in
the UK for a second year running in 2012. However in the same year the company
distributed £4.8bn in cash dividends to shareholders (more than any other British
business) and paid chief executive Vittorio Colao £11m.11
The firm made a £294m operating profit in Britain in 2012, but was able to transform
that into a loss by claiming UK network investment and interest payments wiped out
corporation tax liabilities for the year to April.11
Vodafone took the biggest tumble this year in Green peace’s ranking of IT companies’
climate change policies because it had not continued to publicly advocate for renewable
energy and greenhouse gas emissions targets.
Cheung Kong is a Hong Kong property conglomerate which controls around 50% of
Hutchison Whampoa, a firm with operations in ports and container terminals, retail,
telecom, and oil. Hutchison owns the ‘3’ network provider and also owns Husky Energy
Inc, which has substantial involvement in the oil sands projects in Alberta, Canada. For
that reason Ethical Consumer called a boycott of all subsidiaries of Cheung Kong
including its most obvious consumer boycott target, Superdrug stores.
Vodafone Group Plc is a British multinational telecommunications company
headquartered in London and with its registered office in Newbury, Berkshire. It is
the world's second-largest mobile telecommunications company measured by both
subscribers and 2011 revenues (in each case behind China Mobile), and had 439 million
subscribers as of December 2011.
Vodafone owns and operates networks in over 30 countries and has partner networks in
over 40 additional countries. Its Vodafone Global Enterprise division provides
telecommunications and IT services to corporate clients in over 65 countries. Vodafone
also owns 45% of Verizon Wireless, the largest mobile telecommunications company in
the United States measured by subscribers.
Vodafone has a primary listing on the London Stock Exchange and is a constituent of
the FTSE 100 Index. It had a market capitalisation of approximately £89.1 billion as of
6 July 2012, the third-largest of any company listed on the London Stock Exchange. It
has a secondary listing on NASDAQ.
Vodafone is a world leading mobile telecommunications company. Vodafone provides a
wide range of communication services, including voice calls, SMS text messaging,
MMS picture and video messaging, internet access and other data services. The group
has 221 million direct customers including private consumers and corporate customers
in diverse markets around the world.
Vodafone is the world’s largest mobile telecommunications community. Employing over
86,373 staff and with over 439 million subscribers as of December 2011.
Vodafone owns and operates networks in over 30 countries and has partner networks in
over 40 additional countries.
Vodafone is a public limited company with listings on the London and New York stock
exchanges.
2nd
Largest Telecommunication Company By subscribers & 2011 revenue.
MISSION
We are a global communications business giving people the power to connect with each
other – and to learn, work, play, be entertained and broaden their horizons – wherever
and however they choose.
The numbers speak for themselves.
At the last count, over 404 million customers use our services in more than 30 countries
around the globe.
They choose Vodafone because we stand for great coverage, a reliable connection and
good value as well as a passion for improving the customer experience.
Vodafone want to be admired for empowering people making their lives simpler, easier
and a good deal richer and more rewarding. These are the four pillars of the Vodafone
Way which forms the foundation of our culture:
 Customer obsessed:
They are passionate about exceeding customer expectations, understanding their needs
and earning their increasing loyalty.
 Innovation hungry:
They promote a climate that fosters innovation and calculated risk taking to develop
new services and ways of working.
 Ambitious and competitive:
They bring energy and passion to our work, setting ourselves high standards. We
measure our success compared to our competitors not just to our plans.
 One company, local root:
They operate as one company across diverse teams and Markets to achieve the best
outcome for our customers. They have an international brand and values, but are part of
the local community.
VISION
• A Scale Data Company
• A Strong Player In Enterprise
• A Leader In Emerging Markets
• A Selective Innovator In Services
• A Cost Efficient Organisation.
MARKETING OBJECTIVE OF VODAFONE
Vodafone endeavours to ensure that customer needs are at the centre of all of the
Group's actions. The Group seeks to use its understanding to deliver relevance and
value to each customer and communicate to them on an individual, household,
community or business level, with the ultimate aim of encouraging customers to stay
with Vodafone for longer and use and promote the Group's services more.
Vodafone is a customer knowledge driven organization which aims to make the most of
its deep customer understanding by approaching customers with the most appropriate
product through a channel they enjoy at a time that is best for them. This approach
firmly places Vodafone as an organization that listens to its customers, delivers value
and enhances their experience.
The marketing objective of Vodafone is to be the top mobile service provider of India
by the end of the year 2010. Their strategy for the same includes innovating and deliver
on customers' total communications needs, educating customer about various products
and cellular telephony, creating brand awareness and enhancing attitudes thereby
influencing purchases.
STRATEGY FOLLOWED BY VODAFONE
I. CORPORATE LEVEL STRATEGY
The Company was incorporated under English law in 1984 as Racal Strategic Radio
Limited (registered number 1833679). After various name changes, 20% of Racal
Telecom Plc share capital was offered to the public in October 1988. The Company was
fully demerged from Racal Electronics Plc and became an independent company in
September 1991, at which time it changed its name to Vodafone Group Plc.
Since then we have entered into various transactions which enhanced our international
presence. The most significant of these transactions were as follows:
 The merger with Air Touch Communications, Inc. which completed on 30 June 1999. The
Company changed its name to Vodafone Air Touch Plc in June 1999 but then reverted to its former
name, Vodafone Group Plc, on 28 July 2000;
 The acquisition of Mannesmann AG which completed on 12 April 2000. Through this transaction
we acquired businesses in Germany and Italy and increased our indirect holding in SFR;
 Through a series of business transactions between 1999 and 2004 we acquired a 97.7% stake in
Vodafone Japan. This was then disposed of on 27 April 2006;
 On 8 May 2007 we acquired companies with controlling interests in Vodafone India Limited
(‘VIL’), formerly Vodafone Essar Limited, for US$10.9 billion (£5.5 billion); and
 On 20 April 2009 we acquired an additional 15.0% stake in Vodacom for cash consideration of
ZAR 20.6 billion (£1.6 billion). On 18 May 2009 Vodacom became a subsidiary.
Other transactions that have occurred since 31 March 2009 are as follows:
10 May 2009 – Qatar: Vodafone Qatar completed a public offering of 40.0% of its
authorised share capital raising QAR 3.4 billion (£0.6 billion).
The shares were listed on the Qatar Exchange on 22 July 2009. Qatar launched full
services on its network on 7 July 2009.
9 June 2009 – Australia: Vodafone Australia merged with Hutchison 3G Australia to
form a 50:50 joint venture, Vodafone Hutchison Australia Pty Limited.
10 September 2010 – China Mobile Limited: We sold our entire 3.2% Interest in China
Mobile Limited for cash consideration of £4.3 billion. 30/31 March 2011 – India: The
Essar Group exercised its underwritten put option over 22.0% of VIL, following which
we exercised our call option over the remaining 11.0% of VIL owned by the Essar
Group. The total consideration due under these two options is US$5 billion (£3.1
billion).
16 June 2011 – SFR: We sold our entire 44% interest in SFR to Vivendi for a cash
consideration of €7.75 billion (£6.8 billion) and received a final dividend from SFR of
€200 million (£176 million).
1 June/1 July 2011 – India: We acquired an additional 22% stake in VIL from the Essar
Group for a cash consideration of US$4.2 billion (£2.6 billion) including withholding
tax. 18 August 2011 – India: Piramal Healthcare Limited (‘Piramal’) purchased 5.5% of
VIL from the Essar Group for a cash consideration of INR 28.6 billion (£368 million).
9 November 2011 – Poland: We sold our e2ntire 24.4% interest in Polkomtel in Poland
for cash consideration of approximately €920 million (£784 million) before tax and
transaction costs.
8 February 2012 – India: Piramal purchased a further 5.5% of VIL from the Essar
Group for a cash consideration of approximately INR 30.1 billion (£399 million) taking
Piramal’s total shareholding in VIL to approximately 11%.
 HISTORY
• 1984 - Incorporated as Racal Strategic Radio Limited
• 1988 - Partial listing on the LSE
• 1991 - Demerger from Racal and full listing on the LSE
• 1999 - Merger with Air Touch Communications
Formation of Verizon Wireless, Vodafone holds a 45% stake
• 2000 - Acquisition of Mannesmann AG
• 2006 - Acquisition of Telsim (Vodafone Turkey)
Disposal of Vodafone Japan
• 2007 - Acquisition of controlling stake in Vodafone Essar(Vodafone India)
• 2009 - Vodafone Australia merged with Hutchinson 3G Australia
Vodacom Group became a subsidiary
• 2010 - Sale of interest in China Mobile
• 2011 - Sale of interest in SFR
• 2012 - Acquisition of Cable & Wireless Worldwide
• 2013 -Acquisition of Kabel Deutschland Announced proposed sale of US Group, incl. Verizon
Wireless
TURNAROUND
Turnaround is a strategy of “cost reduction and asset reduction by a company to survive
and recover from declining profits” (Pearce and Robinson, 2009, p. 224). The company
has continuously increased the debt ratio due to its aggressive global geographic
expansion, and it has recently taken higher priority in investing in existing businesses to
improve ARPU from existing customer base and expanding its businesses to new
markets where it can expect immediate turnaround rather than high returns in the long
term. The company has thus 14
Implemented turnaround strategy and initiated One Vodafone program to achieve
streamlined cost effectiveness and efficiency to improve bottom line performance.
II. BUSINESS LEVEL STRATEGY
 Strategic Planning:-
In April 2005, Vodafone approved a five-year CR plan to help the company reach its
vision of being one of the most trusted companies in the markets it operates by 2010.
The CR strategy sets priorities in the following areas:
• Maintain high ethical standards;
• Understand and respond to our stakeholders' priorities;
• Ensure our operating standards are consistent across the Group;
• Deliver on our promises in three key areas:
Responsibility to our customers
Reuse and recycling of mobile phones
Energy and climate change; and
• Capture the potential of mobile to bring socio-economic value through access to
communications.
Local operating companies identify areas and activities to help contribute to meeting
these strategic priorities.
 Business Planning:
Local operating companies work to the strategic priorities identified in the corporate CR
strategy, and to the established suite of quantitative and qualitative KPIs for the
organization (see governance section above). Every six months, the Group CR team
runs a workshop for CR managers and issue owners from all of Vodafone’s operating
companies. The workshops provide the opportunity for colleagues from around the
world to meet, develop CR strategies and share best practices. Affiliates (companies
where Vodafone does not own a controlling share) and partner networks are also invited
to attend these workshop, as well as external stakeholders.
Issues of high priority that might emerge from these workshops and require further
development by the company would result in a CEO from one of the local operating
companies sponsoring the issue, and then bringing together people from throughout the
company to further discuss the issue and define policies, guidelines/standards and KPIs
to manage the issue effectively. Once approved, these would then be rolled-out across
the company. These policies, guidelines/standards become tools to help local operating
companies operate consistently according to corporate strategy.
Vodafone also uses a Group-wide issues management process to ensure that CR issues
are fed into the company’s long-range planning across local operating companies. The
process involves each operating company and most
Group functions reporting to the Corporate Affairs Board1 on a quarterly basis the most
significant local CR issues. The Board ensures that someone within the business is
assigned to develop appropriate responses to each issue, feeding into strategic decision-
making. This process helps Vodafone ensure that its strategic decision-making is taking
full account of social trends and anticipating new issues as soon as possible.
 Business Development:
Whenever Vodafone considers a merger and acquisition (M&A), a Global CR team
member is included in the team that conducts a due diligence review. Vodafone
considers a range of CR issues relating to the country of operation, such as the local
supply chain, environmental regulations or levels of bribery and corruption, as well as
reviewing the acquisition’s existing CR policies and programs. The M&A team
incorporate in the country report the information provided by the Group CR team
regarding the main CR issues Vodafone will be faced with, what the local company is
currently doing, and if Vodafone might face negative reputational impacts by acquiring
the local company.
In terms of product development, Vodafone is increasingly working at integrating CR
into its decision-making. Beginning in 2002, Vodafone began considering how its
products and services could meet societal needs instead of just customer needs related to
network coverage for example. The company began by commissioning third-party
research to understand the impacts of mobile phones. Research indicated that there was
a link between growths in GDP and increases in mobile phone penetration. Social
research identified that people with phones were impacted and empowered, having a
stronger sense of well-being, an increased social network and increased economic
status.
Vodafone is also working with partners such as BT, HSBC, Unilever, etc. to address the
needs of the bottom of the pyramid of the world’s population. This is an area where
Vodafone’s local operating companies have a crucial role to play by identifying the local
societal needs. Local operating companies send proposals that are considered by the
Steering Groups in Research and Development (R&D). Five-six ideas have been
considered in the last six months; full business cases are built and if approved, the
company moves forward on the idea, conducting a trial, usually through partnering with
a development agency and NGOs to implement.
 Risk Management:
Vodafone’s CR team feeds into three unique processes that help the company to manage
CR risks. The company has an issues management process (described in business
planning section above) that helps to identify potential implications to Vodafone of
issues that might impact the business and become a risk.
The company also uses a reputation risk management program that identifies the views
of stakeholders, media coverage and legal views. It is run by Corporate Affairs and
helps to define issues that could pose a risk to Vodafone and if considered a big risk and
impact, then the company would start to build a program to deal with the impact.
The third risk management approach taken by the company that incorporates a range of
CR questions is Vodafone’s internal audit control questionnaire which is completed by
all local operating companies once a year and signed off by their CEOs. This
questionnaire is part of the company’s formal risk identification process. The results are
reported to the Vodafone Group Plc Board of Directors.
Each local operating company will use the same processes but the results will be unique
reflecting local variables. Vodafone Romania, for example identified, identified RF
fields and health, products and services for people with special needs, waste
management and energy use as priorities in the 2006 financial year. Vodafone Greece
was approached a number of years ago with a proposal to provide gambling services
through mobile phones. In applying CR thinking, considering the social impact and the
potential negative impact on the company’s reputation, Vodafone said no to this
opportunity.
 Project Management:
Vodafone has developed social assessment criteria to look at new products and services
beyond net present value. The checklists used to assess new products propositions
include a specific section on CR and direct Vodafone staff to consider certain CR factors
(e.g. social benefit) and apply a score. If scores are below a certain threshold, then
project/product/service/supplier engagement will not go ahead as these may impact in
the reputation of the company and the brand.
For example, a women’s non-profit organization in Egypt approached Vodafone with a
project that would allow farmers to easily access market prices. The project involves
women going to different local markets in their area and using mobile phones to report
back to a central location on the prices of various products. Farmers can then use a
mobile phone and enter the product to sell and the phone will report the prices in the
different local markets so the farmer can go to the market where there are higher prices
and therefore make more profit selling for the highest prices avoiding unnecessary trips
to check prices. Vodafone does not receive any real financial benefit from this kind of
project, but the social benefit for the farmer is compelling and Vodafone believes it will
lead to increased customer loyalty and therefore decided to move forward trailing this
project.
III. FUNCTIONAL STRATEGIES
A. THE MARKETING MIX
A longer term marketing strategy is underpinned by careful planning and a successful
marketing mix. The marketing mix is a combination of many features that can be
represented by the four Ps:
 product - features and benefits of a good or service
 place - where the good or service can be bought
 price - the cost of a good or service
 Promotion - how customers are made aware of a good or service.
1. PRODUCT
• A product with many different features provides customers with opportunities to chat, play games,
send and receive pictures, change ring tones, receive information about travel and sporting events,
obtain billing information and soon view video clips and send video messages.
• Vodafone live! Provides on-the-move information services.
 The products offered by Vodafone are prepaid phone services
• World Calling Cards
• Gulf Calling Card
• Magic Box handsets
• iPhone 3G
• Vodafone Post paid
• Handy phone
• Vodafone PCO.
 The services offered by Vodafone are
• Tunes &amp
• Downloads
• Entertainment
• Devotional
• sports, News &amp
• Updates
• Call Management Services
• Astrology
• Finance
• Travel
• Internet Bonus Card
• Mail, Messaging &amp
• Dial in Services
• Bill Info
• Vodafone Business Solutions
• Vodafone Tuesdays
2. PLACE
• Vodafone UK operates over 300 of its own stores.
• It also sells through independent retailers e.g. Carphone Warehouse.
• Customers are able to see and handle products they are considering buying.
• People are on hand to ensure customers’ needs are matched with the right product and to explain
the different options available.
3. PRICE
• Vodafone wants to make its services accessible to as many people as possible: from the young,
through apprentices and high powered business executives, to the more mature users.
• It offers various pricing structures to suit different customer groups.
• Monthly price plans are available as well as prepay options. Phone users can top up their phone on
line.
• Vodafone UK gives NECTAR reward points for every £1 spent on calls, text messages, picture
messages and ring tones.
4. PROMOTION
• Vodafone works with icons such as David Beckham to communicate its brand values.
• Advertising on TV, on billboards, in magazines and in other media outlets reaches large audiences
and spreads the brand image and the message very effectively. This is known as above the line
promotion.
• Stores have special offers, promotions and point of sale posters to attract those inside the stores to
buy.
• Vodafone’s stores, its products and its staff all project the brand image.
• Vodafone actively develops good public relations by sending press releases to national newspapers
and magazines to explain new products and ideas.
• “Pug” & “ZooZoo” both are Mascot for Vodafone
• Sales promotions-Special prepaid bundle for diwali
• Official Sponsor for England cricket team since 15 years
• Vodafone McLaren Mercedes F1 Car
TRANSFORMATION FROM HUTCH TO VODAFONE PROMOTION
STRATEGY OF VODAFONE
 Hutch Dog to ZooZoo
 Vodafone in INDIA came with acquiring Hutchison essar limited.• Vodafone was launched
officially on 21st September 2007.• Than on hutch was rebranded as Vodafone.
 The name Vodafone comes from Voice data phone, chosen by the company to Reflect the
Provision of Voice and Data Services over Mobile Phones.
 MARKETING STRATEGY Replacing the Hutch’s iconic Dog mascot with new mascot ZooZoo
and associated with IPL as lead sponsor. All the stores were painted red replacing the pink rose
colour of Hutch The new catch phrase “Make the most of now”
 To keep its leading edge, Vodafone is continually looking to add value to the services it provides
and to the packages it offers to customers. ZooZoo, the new brand ambassador of Vodafone, has
created a furores in the advertising industry. All the services and tariffs, Value added services were
communicated through ad’s created using ZooZoo
 Marketing strategies of Vodafone has given birth to the Zoozoo: a special character created
specifically to convey a value added service (VAS) offering in each of the newly released
commercials.
 Vodafone has come with creative advertising campaign for its various plans.• This strategy has
captured the imagination of millions.• The strategy is a buzz that lives up to the brand image of
great creative’s and clever marketing.• In the first 10 days of IPL (Indian premier league) it has
reached a cumulative of 89 million people.• This is a wonderful strategy adopted by Vodafone.
 This has helped the company to raise not only its profits through sales but has also tremendously
increased its brand value.• Zoo zoos have become so popular that Vodafone has succeeded in its
effort of viral or buzz marketing. Their add campaign has gained so much popularity all over the
world.
 The viewership for the add is highest among all the adds. What’s interesting is that there are some
25 such commercials planned under this campaign, 10 of which are already on air.• The aim was
to release approximately one ad a day, to sustain interest till the end of the IPL.
 Themes for advertisement • Magic Box. • Background Music.• Stock Alerts. • Exam
Results.• International Roaming. • Beauty Tips. • Bhatia Sager. • Phone Backup. • Dating Tips. •
IPL commentary. • Voice SMS. • Cricket Alerts. • Fashion Tips. • IPL contests. • Recharge
Anywhere. • Chotta Credit. • Ringtone. • Maps Live. • Group SMS. • Live Games. • Call Divert. •
Musical greetings.
 Success…• Zoo zoos dominating social networking sites. • Created Strong Association. •
Wallpapers, ringtones, videos, contests. Pictures, stories etc of Zoo zoos. • Videos had 3million
hits in 3 weeks. • Most watched video. • Most watched brand in breaks. • Vodafone becomes
INDIA’s 3’rd biggest tele-com company after airtel and Reliance, within a very short period.
DAYS BEFORE ZOOZOO
 Pug was the mascot for Vodafone‟
 Taken over from Hutch
 IPL 2008 had Vodafone going in Pug for its „Happy to Help service‟
Vodafone in order plan for the future and in wake of mobile number portability decided
to distinctly identify its value added services by launching the Zoo zoos campaign
during the Indian Premier League 2 (IPL-2). Cricket is considered to be a religion in
India, and Zoozooz captured attention of nearly two billion people during the IPL.
People eagerly waited for breaks between matches to see more stories about Zoozoo.
Zoozoo have been successful in giving Vodafone a makeover and establishing
maximum brand presence. It is an excellent example of a well-laid out marketing
strategy. It was a fresh and innovative concept and Vodafone wonderfully promoted
their services by creating different stories featuring Zoozoo. There were no celebrity
endorsements. The charm of the Zoozoo was itself a great self-marketing strategy and
they were instant success among masses. Within few days, Zoozooz created a huge
audience for them, giving a boost to the Vodafone brand.
People were already in awe of those cute and lovable characters, but the curiosity
heightened when Vodafone disclosed that Zoo zoos were not animated, rather humans
were playing those characters. People were hungrier to know about their favourite
Zoozoo.
In the second phase, after the release of these ads, Vodafone promoted these characters
on social media sites, which was another wise decision. Zoozoo fan clubs are there on
social networking sites like Face book, YouTube, Orkut, Twitter, and many more, where
they have a huge followings. Now Vodafone has announced to launch the Zoozoo
goodies like zoozoo toys, zoozoo mugs, zoozoo key chains, zoozoo t-shirts, etc.
Vodafone finally launched the 3G SERVICES formally in India with a brand new
marketing campaign.
The teaser campaign was going on for few days now. Zoo Zoos describing seeing
something very fast and fascinating in the skies.
The ad campaign created a lot of buzz and anticipation in the market
as Vodafone’s Zoo Zoos had already a become popular figures with the
masses.
B. COMPETITORS OF VODAFONE
The competitors of Vodafone in India are:-
 Bharti Airtel
 Reliance Communications
 Idea cellular Limited, Virgin Mobile
 TATA (DOCOMO)
 TATA Indicom
 Aircel
 Spice communications Limited
 State owned MTNL and BSNL
C. SWOT ANALYSIS
STRENGTHS:-
 Expanded environmental collection with strong cellular & telecommunication business in the
Europe, Middle East, Africa Asia Pacific & somehow to the US.
 A group of strong network transportation.
 Strong presence in rising markets like India.
 Strong in cities.
 Amongst Top Three Mobile operators in India
 Globally Renowned Name
 Strong infrastructure
 Strong advertising campaigns
WEAKNESSES:-
 A Negative revisit on chattels (ROA) under the execute & strong competitors like AT&T, BT
Group, Deutsche Telecom.
 The American business is not as strong as the European/having a break of the world operations of
80% of their business is producing in Europe.
 Does not have Network in the countryside.
 Not able to tap rural areas
 Brand image of catering only to urban and sub urban areas
OPPORTUNITIES:-
 Should rely on decreasing cost & increase Income.
 Most of the venture in Hutchison Essar in India.
 Needs to Investigate & Improvement of the new mobile technologies.
 Good tax free offers & plans.
 Rural Areas still needs to be tapped.
 Mobile Number portability
THREATS:-
 Very high competitive & strong market to face.
 Still insulate at the back of most of the competitors in the US.
 Very high incursion rates in the key European markets.
 European Union directive on cross-border usage of the cellular phones.
 Mobile Number Portability
 Entry of new Licenses like Virgin Mobile
 Lower Tariffs announced by Rival Players
D. HUMAN RESOURCES
Recruitment and Orientation:
Another area of improvement identified by Vodafone is the integration of CR factors
into human resource (HR) management. Vodafone is a young company of only 20 years,
ten of which were spent as a company of 300 employees.
Through aggressive acquisition, Vodafone now has 60,000 employees. This has resulted
in a number of HR policies throughout local operating companies and the need to focus
on standardizing these policies and practices.
At the global level, CR is integrated into induction training for all new employees,
through workshops that talk about the company’s CR policies. All employees also
receive the booklet on ‘Passion for the World around Us' that identifies the company’s
values and its commitment to the goals of CR.
Vodafone conducts an annual employee survey that includes questions about whether
the company is generating trust and adequately managing its environmental impact.
Vodafone does seek the approval of employees on what they are doing and the ratings
are generally above 90%. Employees report being more highly motivated because of the
company’s CR initiatives, with local operating companies on average having a better
understanding of CR and related higher pride for working with Vodafone.
Vodafone’s internal website is also used for collecting information or ideas from
employees on CR initiatives.
Training:
Vodafone delivers a variety of global training through the use of e-tools, including an e-
module on CR. Vodafone is developing a set of new indicators to identify the number of
employees that have also received classroom CR training (e.g. ten global managers
received training in social audit; 84% of Supply Chain Management managers and
employees have received training on the Code of Ethical Purchasing).
Other communication mechanisms are utilized to increase awareness of CR issues such
as: topic emails (e.g. climate change); themed events (e.g. invited employees to attend
showing of the documentary, An Inconvenient Truth, followed by a panel discussion
where the Corporate Affairs Director discussed climate change and what Vodafone is
doing to improve its practices); monthly CR teleconferences (CR is also discussed
between Group functions and operating companies in many other forums connected
with operational issues); and the monthly newsletter from the CEO normally contains a
paragraph to discuss Vodafone’s CR initiatives (e.g. one of the last newsletters
addressed some of the external recognition Vodafone received related to CR). The
CEO’s newsletter often addresses Vodafone’s way of dealing with an issue.
Vodafone also includes CR in the training for its managers. A session on CR is included
in the Global Management Development Program, which is a three-day course for the
most senior managers. The participants debate a series of issues from the perspective of
different stakeholder groups and devise a response.
Vodafone is also working at standardizing processes related to training among its local
operating companies. For example, Vodafone UK is piloting an e –learning training
course on the Business Principles for all UK employees. If successful, this would be
rolled out across local operating companies.
Performance Appraisal and Compensation:
In 2006, specific CR performance targets were defined and embedded into the
performance quarterly review process. Local operating CEOs and Group operating
business unit CEOs now have their bonuses also tied to personal performance against
CR targets.
CEOs cascade the performance targets throughout their organizations so the local CR
team members, the energy efficiency manager, etc. would also have a CR-related target
VODAFONE ESSAR
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. Vodafone Essar now has operations in 23 circles with over with
over 85.82 million customers**. Vodafone has partnered with the Essar Group as its
principal joint venture partner for the Indian market. Vodafone Essar is owned by
Vodafone 67% and Essar Group 33%.
The company used to be named Hutchison Essar, reflecting the name of its previous
owner, Hutchison. However, the brand was marketed as Hutch. After getting the
necessary government approvals with regards to the acquisition of a majority by the
Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand
was officially changed to Vodafone on 20 September 2007. On September 20, 2007
Hutch became Vodafone in one of the biggest brand transition exercises in recent times
Despite the official name being Vodafone Essar, its products are simply branded
Vodafone. Over the years, Vodafone Essar, under the Hutch brand, has been named the
‘Most Respected Telecom Company', the ‘Best Mobile Service in the country' and the
‘Most Creative and Most Effective Advertiser of the Year'. It offers both prepaid and
post-paid GSM cellular phone coverage throughout India with good presence in the
metros.
Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 23 of the country's 23 licence areas. It is
among the top three GSM mobile operators of India.
Vodafone Essar is the 1st Indian Telecom operator to receive the Payment Card Industry
Security Standard (PCI DSS) certification for its Mumbai operation in 2009. Also it is
the first time that Vodafone has launched Recharge Online.
Vodafone Essar Limited (Vodafone Essar) – subsidiary of mobile
network operator Vodafone Group Plc.
o 2005-Vodafone entered India by acquiring a 10% stake in Bharti Airtel Limited; which it
later sold.
o 2006-FDI limit in India increased – Essar became a minority stakeholder (33% equity
stake) in HEL
o 2007-HEL became Vodafone Essar Limited & re-branded ‘Hutch’ to ‘Vodafone’
INDUSTRY HEADING
The pace of change in the mobile industry is significant with growing sources of
revenue from data services such as internet usage; new users from emerging markets;
rising take-up of smart phones and tablets; and major advancements in network
technology to deliver faster and better services.
 Data services and emerging markets represent the largest opportunity as traditional voice and text
services in developed countries reach maturity
 The shift towards smart phones and away from feature phones continues with smart phones
representing nearly 40% of devices shipped in the last year
 Significant technological improvements have led to faster data networks and product innovation to
improve the customer experience
 Growing revenue streams
The share of industry mobile revenue from traditional voice and messaging services in
developed markets is declining due to relative market maturity, ongoing competitive and
regulatory pressures leading to lower prices for mobile calls, and a slow pace of
economic growth. In contrast the demand for data services, such as internet on the
mobile, is growing rapidly. In 2006 data services accounted for 6% of industry mobile
service revenue, in 2011 it reached 20%, and it is expected to rise further over the
medium term.
Demand is being driven by a combination of higher smart phone penetration, significant
enhancements to network data speed and coverage, and an increased range of mobile
applications. Smart phones now represent 39% of all handset sales compared to 8% in
2006.
Emerging markets, such as India and Africa, represent the regions with the most
potential for future revenue growth driven by strong economic growth and low mobile
penetration.
For example, only 74% of India’s 1.2 billion populations have a mobile phone implying
good potential future market growth.
According to external estimates by 2015 there will be 1.5 billion new mobile users, and
the vast majority will be from emerging markets.
 Technological innovation
Today’s mobile networks in Europe are typically a combination of 2G networks for
traditional voice, text and basic data services, and 3G networks for high speed mobile
internet access and application downloads. 3G maximum data downlink speeds are
already up to 43 Mbps (with typical user speeds of up to 6 Mbps). 4G, or long-term
evolution (‘LTE’), the next stage of mobile network development, is already in place in
some countries – providing maximum user speeds of up to 150 Mbps (typical user
speeds up to 12 Mbps). Going forward, further network upgrades are expected to
significantly enhance the user experience through a combination of both faster networks
and wider high speed network coverage.
Innovation in services is also critical to enhance customer experience. Vodafone,
together with a number of other leading operators, has developed the next wave in
personal mobile communications known as rich communication services which will
enable data services such as instant messaging or chat, live video sharing and file
transfer across any device and on any network, in much the same way as voice and
SMS. Vodafone is also developing a range of new services to generate additional
revenue and enhance
 Networks
We aim to have the best mobile network in each of our markets. This means giving our
customers far-reaching coverage, a very reliable connection, and increasing speeds and
data capacity. We believe that over time, offering a superior network experience will
enable us to secure a premium positioning in most of our markets.
Our network investment is enhanced by our ongoing acquisition of mobile spectrum as
it becomes available. For more information on our network build-out, see page 24.
 Distribution
We operate around 14,000 stores across the Group, and have extensive networks of
exclusive distribution partners and third party retailers. We will develop our distribution
further to stay close to our customers, making it easy for them to join us from our
competitors, upgrade their existing contract or just seek help with the services we offer.
In addition, the internet is becoming an increasingly important part of our sales and
service mix, and we have significantly upgraded our online shop and online service
capabilities over the last three years.
 Supplier relationships
We work closely with our suppliers to build robust networks, develop innovative
services and offer the widest range of the latest devices.
In many cases these are partnerships, where we will approach a supplier with an idea or
a problem that needs solving, and then work together to bring a solution to market.
From the customer perspective, the global reach and scale of Vodafone means that we
will often be the destination for exclusive or first-to-market products.
CURRENT POSITION OF INDUSTRY
The mobile industry is a large and important sector with six billion global users.
Customer growth over the last five years has been rapid, driven by the benefits of
mobility, falling prices and rising penetration in emerging markets.
However, pressures on revenue growth from competition and regulation are significant
and are likely to remain.
 86% of the world’s population use a mobile phone
 Competition is intense with typically at least four mobile operators in each country and numerous
additional alternative communications providers
 Regulators continue to impose policies to lower the cost of access to mobile networks.
 Scale
The mobile industry is one of the largest communication sectors in the world with over
six billion users across the globe. In contrast there are only 1.2 billion people with fixed
line phones. The mobile industry generates around
US$960 billion of annual service revenue,
80% of which comes from people making standard voice calls and sending texts. Over
the last ten years the share of telephone calls via mobile has increased from 20% to
74%, reflecting the benefits of mobility. In 2011, 4.3 trillion Text messages were sent
(about 136,500 every second).
 Growth
The demand for mobile services continues to grow. In the last five years the number of
users has increased by an average of 17% each year driven by rising living standards,
population growth and cheaper mobile services and handsets. In 2011 86% of the
world’s population has a mobile phone, whereas ten years ago this was only 16%. Most
of the new demand for mobile services is from emerging markets such as India and
Africa.
In India for example, the number of phone users increased by over 140 million in just
one year, 2011, which is more than twice the size of the UK population. Emerging
markets are growing quickly, and account for over 70% of the world’s mobile users. The
rest live in developed markets such as Europe and the United States, where demand is
growing more.
 Competition
Slowly as most people already have a device in Europe for example there is already an
average of 1.3 SIM cards per person.
The telecommunications industry is highly competitive, with typically at least four
national mobile network operators, such as Vodafone, and one national fixed line
operator in each country. In addition, there can be numerous companies that rent
capacity from mobile operators and sell their own mobile services to customers. In
some countries there can also be several independent distribution companies that
compete with the mobile network operators’ own stores. Advances in technology are
bringing in newer suppliers, such as internet based companies and software providers
offering converged services such as voice over internet protocol (‘VoIP’).Against this
background, consumers have a wide choice of providers.
 Regulation
The mobile industry is very heavily regulated by both national, European and other
regional and international authorities. Regulators continue to impose policies to lower
the cost of access to mobile networks through setting lower mobile termination rates
(the fees mobile companies charge for calls received from other companies’ networks)
and to limit the amount that operators can charge for mobile roaming services. These
two areas represent 12% of service revenue for Vodafone.
In an environment of intense competition and significant global regulatory pressures,
industry voice prices have tended to reduce over time and in 2011 fell 14%. However,
with more mobile phone users and some customers using their devices ever more
frequently.
VODAFONE PRODUCTS:
BRAND IMAGE
David Beckham is more than a footballer. He is also regarded as a fashion icon, a caring
family man and a nice guy: an overall image that attracted Vodafone to him.
Beckham’s popularity with football fans comes largely from his England team
captaincy. As a footballer, he is well regarded around the world. Other young men who
might aspire to his success and style also tend to identify with him. He appeals to many
females because of his reputation as a fashion and lifestyle icon. He is also married to a
female icon in her own right.
Vodafone’s sponsorship of the Manchester United team appeals to a broad section of the
global football/sports audience, whereas aspects of Beckham’s broader image have
grown to appeal to a much wider section of society. That suits Vodafone, who needs to
appeal to different segments of the market.
Beckham’s healthy lifestyle allied to his talent suggests an energy and a controlled
passion for life; an image that Vodafone would also like to project for itself. On a
football field, Beckham is innovative, creative, exciting; characteristics that Vodafone
aspires to. Beckham the family man comes across as caring and empathetic; Vodafone
wants people to appreciate that it too understands and cares about what people want and
need. Beckham is generally seen as dependable; Vodafone wants to communicate a
similar image. The synergy is clear.
THE CAMPAIGN
Beckham is supporting the campaign to promote Vodafone live! In the UK and in other
markets. The UK campaign shows Beckham doing everyday things: a happy, relaxed,
competent shopper sending pictures and accepting a message to remember to buy eggs.
At the same time he is also clearly demonstrating what Vodafone live can do.
The TV campaign has been a huge success. Many people have seen it and can recall the
adverts. The campaign captured the imagination of the press, and many newspapers
covered stories about Beckham’s sponsorship deal. Slogans such as ‘Send it like
Beckham’ help to further promote the Vodafone message. Beckham’s image is also used
on a variety of other customer communications including in-store posters, billboards, in
the company’s magazines and catalogues and in leaflets mailed to customer.
MARKET RESEARCH
High profile campaigns are a gamble. The campaign’s impact has to justify the time,
money and effort spent on it. The marketing team must evaluate the campaign’s success.
Vodafone UK has asked people across different sectors of society about the campaign,
and has analysed their responses. Individuals were asked what they could remember
about the campaigns. This is known in the marketing industry as recall.
RECALL %
Another exercise assessed the effectiveness of the poster depicting Beckham being
reminded to buy some eggs. People in the survey are shown different Vodafone posters
and asked to say which of them they recall in relation to Vodafone live!
Clearly, the Beckham poster is far and away the one that is best recalled.
Other data has been used to assess the success of the Beckham promotion. Findings
from UK Brand Tracking data reveal that the TV campaign has increased awareness of
Vodafone with above average efficiency as measured by the Awareness Index, primarily
because of the Beckham scenes. People are able to recall and describe the
advertisements without prompting.
The Beckham campaign has also helped to support Vodafone’s drive for brand
migration. Vodafone can help to fulfil its aim to grow successfully by acquiring local
companies in markets that Vodafone would like to enter. A good example of this is
Vodafone’s purchase of J-Phone in Japan. The initial strategy was to use a dual J-Phone
Vodafone logo alongside the powerful image of Beckham to emphasise the relationship
between the two companies.
The final transition removed the J-Phone logo altogether to a sole focus on Vodafone
(Vodafone KK). This strategy warmed J-Phone’s customers to the idea of a global brand
replacing a local brand. David Beckham is a popular figure in Japan and helped to
smooth the way for the substitution of the global brand in place of the local one.
MOBILE DATA SERVICES
Vodafone goal is to become the provider of choice for customers wanting to use data
services. The opportunity is huge as we believe that over time all customers will want to
use data internet services on their mobile devices
The mobile industry started less than 30 years ago with a single service making and
receiving calls. Today customers enjoy a range of services including simple voice calls,
text and picture messaging, and data services such as mobile internet browsing, social
networking sites, downloading applications (‘apps’) and sending emails via smart
phones.
MARKET CONTEXT:
According to industry analysts, data is expected to be the fastest growing segment of the
mobile industry. It is estimated that between the 2011 and 2016 calendar years
worldwide mobile data revenue is set to grow by US$142 billion, compared to a US$27
billion decline in voice revenue over the same period.1
GOALS:
Vodafone aim to have the best mobile network in all of the markets in which they
operate, supported by leading IT systems. This means giving customers far-reaching
coverage, a very reliable connection and increasing speeds and data capacity.
STRENGTHS:
They have more than 238,000 base station sites transmitting wireless signals – making
us one of the largest mobile operators in the world.
ACTIONS:
They are investing around £6 billion a year to deliver a high quality mobile data
experience for customers.
PROGRESS:
In 2012 nearly one trillion minutes of calls were carried and more than 216 pet bytes of
data were sent across our networks in other words enough data for 2.8 trillion emails.
Services is growing rapidly
Data is already our fastest growing segment, with data revenue up by 22.2%* over the
financial year, compared to a 4.4%* rise for messaging revenue and a 4.0%* fall for
voice revenue. This demand is being driven by three key factors – a widening range of
powerful and attractive smart phones and tablets, significant improvements in mobile
network quality and capability, and an increased choice of user friendly and useful
applications for business and social use.
They have already seen significant growth in the number of customers using smart
phones, with 27% of customers in Europe using these devices today, compared to 19%
last year and this is expected to grow rapidly in the next few years.
They are growing data revenue through enhancing technology and improving the
customer experience
They are continuing to refocus our business on data to capture the significant expected
growth in customer demand for data services.
Vodafone aim to deliver a market-leading network experience to their customers. To
compare their performance against our major competitors we conduct regular
benchmark tests using reputable third parties. The latest results show that we have
leading data service performance in 13 out of 18 markets with data downlink speeds on
average around 6% better than our next best competitor.
GENERAL FEATURES OF 3G
 Enhanced multimedia (voice, data, video, and remote control)
 Usability on all popular modes (cellular telephone e-mail, paging, fax, videoconferencing, and
Web browsing)
 Broad bandwidth and high speed (upwards of 2 Mbps)
 Routing flexibility (repeater, satellite, LAN) Roaming capability
VODAFONE 3G APPLICATIONS
 Interactive news delivery (voice, video, e-mail, graphics)
 Voice /High-quality audio
 Still photography
 Video
 Data transmission services
 File transfer from intranet
 Multimedia e-mail (graphics, voice, video)
 Video conferencing
 Information Systems
SERVICES OFFERED BY VODAFONE 3G HIGH SPEED
INTERNETS:
High Speed Internet: Vodafone 3G promises lightning fast downloads of large
attachments, music tracks, and superfast loading and browsing on Internet.
Video Calling: You can chat with your friend or attend a business meeting face to
face without leaving your seat with Vodafone 3G live and seamless video calling
feature.
Vodafone TV: When you are travelling, get live news and your other favourite TV
programs on your mobile. Vodafone TV brings popular channels like NDTV, STAR,
Zoom, Zee and National Geographic to your handset. You can enjoy all available
channels for Rs150/month and Rs7/Day.
Live Streaming: Now you can enjoy your favourite match or video without
annoying buffering breaks with Vodafone 3G.
HD Gaming: Mobile Gaming becomes more enjoyable and faster with Vodafone 3G
Faster Downloads: Vodafone 3G offers 3 times faster download than 2G and
simultaneous transfer of voice and non-voice data, so that you can enjoy a seamless
connectivity.
Mobile Newspaper: Vodafone 3G brings Mobile Newspaper, a service that brings
your favourite newspaper to your mobile. Just select your paper and news, videos and
photos will be directly displayed on your handset.
INTERESTING INSIGHTS
• High spenders, post paid subscribers and business subscribers show a greater tendency to
switch if Mobile Number Portability is introduced
• Prepaid, low and medium spend users are not motivated to switch
• Post paid subscribers have almost double the minutes of usage compared to pre-paid
subscribers and the incidence of data application usage is also higher among post-paid and high
spenders
• More than half (55%) of all respondents were generally satisfied with their mobile operator
and 48 percent were satisfied with the network quality
• 46 percent were satisfied with the network coverage area of their operator and 43 percent were
satisfied with the price they paid for the mobile phone service by their operator
• Satisfaction scores on network quality dropped for almost all operators, with Airtel, BSNL and
Reliance registering the greatest drops
• Vodafone has the highest post paid subscriber base in India
POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL
ANALYSIS
 Political: - Governmental and legal issues affect how the company operates.
 Regulation
 Infrastructure
 Banning of phone use in certain circumstances and areas.
 Health issues
 Economic: - Factors influencing the purchasing power of customers and the company's cost of
capital.
 Cost of 3G licenses
 Cost of calls being driven down
 Worldwide recession
 Third world countries
 Social: - Demographic and cultural aspects of the environment which influence customer needs
and market size.
 Health Issues
 Demographics
 Social Trends
 Picture phones
 Mobile Etiquette
 Saturation Point
 Technological: - The technological advancements that are coming in the telecom industry
 3G
 UMTS (2.5G)
 GPRS/WAP
 SMS / MMS
FUTURE STRATEGY
Vodafone can help to transform societies by bringing innovative products and
services to our 404 million customers, 68% of whom live in emerging markets.
Mobile technology is already a vital tool in people’s lives and our ambition is for
Vodafone’s mobile services to further improve people’s livelihoods and quality of
life.
At the same time, we aim to help consumers, governments and businesses tackle some of
the significant challenges they face – from food shortages and ageing populations, to lack
of access to communications, healthcare and financial services.
Their business focus on emerging markets, enterprise, data and new services gives us the
ability to achieve our ambition to contribute to global development in this way, while
continuing to grow our business at the same time, by developing commercially viable,
scalable services that support sustainable development.
DRIVING ECONOMIC AND SOCIAL DEVELOPMENT
 The global footprint of our network, our significant presence in emerging markets and our track
record as an innovator, enable us to make an important contribution to socio-economic
development. Recent research shows a 10% increase in mobile access raises a country’s economic
productivity by 4.2%.
 Over 68% of our customers live in emerging markets. By extending our network coverage and
putting basic voice and data services in the hands of people without access to communications, we
can create tangible benefits while building our customer base and establishing lasting relationships
too.
 They are also creating innovative mobile services to help people and organisations make the most
of limited resources and are focusing on using mobile to help transform financial services,
healthcare, education and agriculture.
 Thanks to Vodafone’s M-Pesa service, millions of people without a bank account can send, save
and borrow money; our mobile health services enable health workers to see more patients; and our
‘Learning with Vodafone’ programme in India helps children get a better education.
DOING MORE WITH LESS
 By 2030, there will be 20% more people in the world necessitating a 70% increase in agricultural
production The Connected Farmer Alliance is our a partnership with USAID and the NGO Techno
Serve, using our technology to help 500 million smallholder farmers in Africa to increase their
productivity; and our Turkey Farmers’ Club has already helped farmers increase productivity by
€190 million, showing how mobile can make a real difference.
 Businesses and organisations are under pressure to deliver a substantial portion of the global
carbon reductions required to tackle climate change, while also facing economic pressure to cut
costs and increase efficiency. They need to do more with less and by using our mobile technology
they can improve the efficiency of their operations and enable smarter ways of working.
 Remote wireless connections create two-way communication between machines –M2M –enabling
organisations to collect the real-time information they need to reduce their energy use and carbon
emissions. Vodafone is a leading M2M provider with more than 9.5 million of our connections
already helping businesses deliver cost savings and carbon reductions.
EXTENDING ACCESS TO EVERYONE
 For increasing numbers of people around the world, mobile internet is the internet. Fixed-line
internet is often too expensive to roll out and there are many places it can’t reach. Wireless
technology can close that digital divide
 Around the world, Vodafone is working to enable as many people as possible to share in the
mobile internet revolution. We are extending access to mobile broadband to remote areas across
the world and are creating new services that make mobile phones easier to use for people who are
elderly or people with a disability.
BEING RESPONSIBLE
 They can’t do any of this without the trust of our customers and other stakeholders. To earn that
trust, we need to manage our operations responsibly and conduct our business in an ethical and
transparent way.
 They are ambitious in the way we manage our wide-ranging responsibilities and have strong
programmes in place– from protecting customers’ information and respecting their privacy, to
treating our employees fairly, working to reduce our impact on the environment, and setting set
strict ethical, labour and environmental standards for suppliers.
By taking their responsibilities seriously, they aim to continue to enhance Vodafone’s
reputation and the contribution of their products and services to sustainable living.
CONCLUSION
After going through the Advertisement Strategies of Vodafone, I conclude that
promotion whether it is through print media or through the ads shown on television,
plays a very important role in building a Brand. Hutch and Vodafone rebranding is the
memorable and most big event in the telecommunication industry. And the
advertisement made this event bigger by continuously broadcasting the ads for 24 hours
on national television. The main motive is to make people know about your brand. And
that is what is done excellently by Vodafone.
The advertisement also puts a very big question in front of the other telecom companies,
does having big movie stars and cricketers as their brand ambassador really help?
Doesn’t a simple white character with egg shaped head, round belly and thin legs called
Zoozoo can gain the attention of masses. This is definitely a new trend and also a new
wave.
Thus it can be seen that oligopolistic market structure of this industry has played a
significant role in the generation of revenue for Vodafone, especially through this
unique advertising strategy.
Continued growth in data and emerging markets, mature voice trending below one third
of service revenue New strategic approach to consumer pricing and bundling in Europe
Strengthened commitment in enterprise through an expanded product catalogue and a
dedicated division Continuing consistent investment in high speed data networks,
technology independent Drive towards standardisation , simplification and efficiency
for both better service and lower cost position Maintaining strong returns to
shareholders as a priority
In a highly competitive market, David Beckham is the latest in a number of high profile
celebrities and sports personalities that Vodafone has used to promote Vodafone live!
Market research and increased sales indicate that using Beckham’s image has been
highly effective. Sponsorship using stars involves a partnership between the star and the
company, and success depends on both remaining high profile and in the public eye The
Beckham campaign is seen in many countries worldwide and reinforces his own image
as well as communicating Vodafone’s brand values. Beckham is something of a
phenomenon whose star status shows no sign of waning. Vodafone believes that it has
gained an important advantage in a highly competitive market place as a result of
having such a high profile, admired star attached to its name and its product.
BIBLIOGRAPHY
• http://www.managementparadise.com/Aditi707/documents/13627/projet-report-on-
vodafone---marketing/
• http://www.vodafone.com/content/dam/vodafone/investors/financial_results_feeds/h
alf_year_30september2012/p_halfyear2012.pdf
• http://www.stratos-sts.com/wp-content/uploads/2013/04/2007_07_Case-Study-
Vodafone.pdf
• http://www.studymode.com/essays/Brand-Element-46587771.html
• http://www.studymode.com/search_results.php?
query=List+The+Names+Of+Vodafone+Products&field%5B%5D=title&field%5B
%5D=paper&period=any&pages=0&pages_from=1&pages_to=10&words=0&wor
ds_from=1&words_to=1500&match_mode=any&exact_query=&exclude_query=
• http://www.studymode.com/subjects/list-the-names-of-vodafone-products-
page2.html
• http://www.stratos-sts.com/wp-content/uploads/2013/04/2007_07_Case-Study-
Vodafone.pd
• http://www.vodafone.com/content/index/about/sustainability/our_vision. Html
• http://www.ehow.com/facts_7546949_introduction-mobile-industry.html
• MANAN PRAKASHAN, MAHICAL VAZ
STRATEGIC MANAGEMENT ON VODAFONE

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STRATEGIC MANAGEMENT ON VODAFONE

  • 1. EXECUTIVE SUMMARY The Vodafone Group provides a full range of mobile telecommunications services, including voice and data communications. Vodafone has equity interests in 27 countries and partner networks in a further 27 countries with almost all the group's mobile subsidiaries operating principally under the brand name 'Vodafone'. Turnover for year end March 2006 was £29.4 billion. A big issue for companies like Vodafone in the mobile phone market has been how to differentiate. New, breakthrough products are critical to win in this highly competitive sector. However, the industry has traditionally been technology-led, rather than customer-led. This has meant a pronounced lack of competitive differentiation. Vodafone had come to realise that its traditional concept testing was not working hard enough. While hundreds of product concepts were tested, there was no standardised testing, no benchmarks and no way to compare one concept with another. To overcome this, the Vodafone Global Insights team developed the Differentiation Potential System (DPS). This was an end-to-end system designed to put customer insight at the heart of product development. It was a complete business process to ensure that the voice of the customer was integrated into the way products were developed and priorities set. By the end of 2005, the system was providing Vodafone with the common currency by which teams could measure the success of their product ideas. In addition, highly detailed diagnostics meant that further development on every individual product could be based on understanding customers. Even more significantly, it changed the way the company does business by having a profound effect on the way it perceives and reacts to customer needs.
  • 2.
  • 3. VODAFONE GROUP PLC Type : Public limited company Founded : 1991 Headquarters : London, United Kingdom (Head office) Newbury, Berkshire, United Kingdom (Registered office) Key Person : Gerard Kleisterlee (Chairman), Vittorio Colao (CEO) Industry : Telecommunications Products : Fixed line and mobile telephony, Internet services, Digital television Revenue : £46.417 billion (2012) Employees : 86,373 (2012) Website : www.vodafone.com
  • 4. MOBILE INDUSTRY Developments in communication technology have enhanced the mobile industry, making it easy for people to remain connected to their friends, families and offices. Mobile, or wireless, technology refers to any type of portable device, such as laptop computers, cell phones and personal digital assistants.  Function The mobile industry gives users the ability to take their communication devices with them on the go. The goal of wireless technology is to allow people to access information without being tied to one location.  Benefits The biggest benefit that the mobile industry offers consumers is flexibility. With mobile technology people can stay in touch with one another from any place in the world. In the business world, businessmen and women rely on the portability of mobile devices so that they may work remotely and enhance their efficiency.  Risks A main risk associated with mobile technology is the potential for unauthorized individuals, or "hackers," to illegally access sensitive electronic information. To prevent or minimize the chances of this happening, users are advised to password protect their mobile devices. Laptop computers and even cellular phones have locking options that require a password to gain access into the device BACKGROUND  Vodafone entered India in December 2005  Acquired 10 percent stake in Bharti Ventures Limited (Bharti Airtel)  Successfully rebranded 'Hutch' as 'Vodafone„  Vodafone Essar started expanding its presence in India  Rebranding included  “Change is good...” Baseline - “Hutch is now Vodafone”  Earlier Campaigns: Happy to help, Friend circle, Cheaper SMS, “Amar Chitra Katha” Alert.
  • 5. INTRODUCTION Orange was formerly known as France Telecom. The French government owns more than one-quarter of Orange. The EE brand picks up criticisms from other French state- owned companies such as Electricity Company EDF and Areva. Areva is one of the world’s top nuclear energy companies and is involved in every step of nuclear power production from uranium mining right through to recycling used fuel.12 The German government and German state-owned development bank KfW together own about 32% of Deutsche Telekom. UK Company Vodafone is infamous for stories about its tax avoidance. Vodafone, the world’s second largest mobile phone company by revenue, paid no corporation tax in the UK for a second year running in 2012. However in the same year the company distributed £4.8bn in cash dividends to shareholders (more than any other British business) and paid chief executive Vittorio Colao £11m.11 The firm made a £294m operating profit in Britain in 2012, but was able to transform that into a loss by claiming UK network investment and interest payments wiped out corporation tax liabilities for the year to April.11 Vodafone took the biggest tumble this year in Green peace’s ranking of IT companies’ climate change policies because it had not continued to publicly advocate for renewable energy and greenhouse gas emissions targets. Cheung Kong is a Hong Kong property conglomerate which controls around 50% of Hutchison Whampoa, a firm with operations in ports and container terminals, retail, telecom, and oil. Hutchison owns the ‘3’ network provider and also owns Husky Energy Inc, which has substantial involvement in the oil sands projects in Alberta, Canada. For that reason Ethical Consumer called a boycott of all subsidiaries of Cheung Kong including its most obvious consumer boycott target, Superdrug stores. Vodafone Group Plc is a British multinational telecommunications company headquartered in London and with its registered office in Newbury, Berkshire. It is the world's second-largest mobile telecommunications company measured by both subscribers and 2011 revenues (in each case behind China Mobile), and had 439 million subscribers as of December 2011. Vodafone owns and operates networks in over 30 countries and has partner networks in over 40 additional countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Vodafone
  • 6. also owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £89.1 billion as of 6 July 2012, the third-largest of any company listed on the London Stock Exchange. It has a secondary listing on NASDAQ. Vodafone is a world leading mobile telecommunications company. Vodafone provides a wide range of communication services, including voice calls, SMS text messaging, MMS picture and video messaging, internet access and other data services. The group has 221 million direct customers including private consumers and corporate customers in diverse markets around the world. Vodafone is the world’s largest mobile telecommunications community. Employing over 86,373 staff and with over 439 million subscribers as of December 2011. Vodafone owns and operates networks in over 30 countries and has partner networks in over 40 additional countries. Vodafone is a public limited company with listings on the London and New York stock exchanges. 2nd Largest Telecommunication Company By subscribers & 2011 revenue. MISSION We are a global communications business giving people the power to connect with each other – and to learn, work, play, be entertained and broaden their horizons – wherever and however they choose. The numbers speak for themselves. At the last count, over 404 million customers use our services in more than 30 countries around the globe. They choose Vodafone because we stand for great coverage, a reliable connection and good value as well as a passion for improving the customer experience. Vodafone want to be admired for empowering people making their lives simpler, easier and a good deal richer and more rewarding. These are the four pillars of the Vodafone Way which forms the foundation of our culture:
  • 7.  Customer obsessed: They are passionate about exceeding customer expectations, understanding their needs and earning their increasing loyalty.  Innovation hungry: They promote a climate that fosters innovation and calculated risk taking to develop new services and ways of working.  Ambitious and competitive: They bring energy and passion to our work, setting ourselves high standards. We measure our success compared to our competitors not just to our plans.  One company, local root: They operate as one company across diverse teams and Markets to achieve the best outcome for our customers. They have an international brand and values, but are part of the local community. VISION • A Scale Data Company • A Strong Player In Enterprise • A Leader In Emerging Markets • A Selective Innovator In Services • A Cost Efficient Organisation.
  • 8. MARKETING OBJECTIVE OF VODAFONE Vodafone endeavours to ensure that customer needs are at the centre of all of the Group's actions. The Group seeks to use its understanding to deliver relevance and value to each customer and communicate to them on an individual, household, community or business level, with the ultimate aim of encouraging customers to stay with Vodafone for longer and use and promote the Group's services more. Vodafone is a customer knowledge driven organization which aims to make the most of its deep customer understanding by approaching customers with the most appropriate product through a channel they enjoy at a time that is best for them. This approach firmly places Vodafone as an organization that listens to its customers, delivers value and enhances their experience. The marketing objective of Vodafone is to be the top mobile service provider of India by the end of the year 2010. Their strategy for the same includes innovating and deliver on customers' total communications needs, educating customer about various products and cellular telephony, creating brand awareness and enhancing attitudes thereby influencing purchases.
  • 9. STRATEGY FOLLOWED BY VODAFONE I. CORPORATE LEVEL STRATEGY The Company was incorporated under English law in 1984 as Racal Strategic Radio Limited (registered number 1833679). After various name changes, 20% of Racal Telecom Plc share capital was offered to the public in October 1988. The Company was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc. Since then we have entered into various transactions which enhanced our international presence. The most significant of these transactions were as follows:  The merger with Air Touch Communications, Inc. which completed on 30 June 1999. The Company changed its name to Vodafone Air Touch Plc in June 1999 but then reverted to its former name, Vodafone Group Plc, on 28 July 2000;  The acquisition of Mannesmann AG which completed on 12 April 2000. Through this transaction we acquired businesses in Germany and Italy and increased our indirect holding in SFR;  Through a series of business transactions between 1999 and 2004 we acquired a 97.7% stake in Vodafone Japan. This was then disposed of on 27 April 2006;  On 8 May 2007 we acquired companies with controlling interests in Vodafone India Limited (‘VIL’), formerly Vodafone Essar Limited, for US$10.9 billion (£5.5 billion); and  On 20 April 2009 we acquired an additional 15.0% stake in Vodacom for cash consideration of ZAR 20.6 billion (£1.6 billion). On 18 May 2009 Vodacom became a subsidiary. Other transactions that have occurred since 31 March 2009 are as follows: 10 May 2009 – Qatar: Vodafone Qatar completed a public offering of 40.0% of its authorised share capital raising QAR 3.4 billion (£0.6 billion). The shares were listed on the Qatar Exchange on 22 July 2009. Qatar launched full services on its network on 7 July 2009. 9 June 2009 – Australia: Vodafone Australia merged with Hutchison 3G Australia to form a 50:50 joint venture, Vodafone Hutchison Australia Pty Limited. 10 September 2010 – China Mobile Limited: We sold our entire 3.2% Interest in China Mobile Limited for cash consideration of £4.3 billion. 30/31 March 2011 – India: The Essar Group exercised its underwritten put option over 22.0% of VIL, following which we exercised our call option over the remaining 11.0% of VIL owned by the Essar
  • 10. Group. The total consideration due under these two options is US$5 billion (£3.1 billion). 16 June 2011 – SFR: We sold our entire 44% interest in SFR to Vivendi for a cash consideration of €7.75 billion (£6.8 billion) and received a final dividend from SFR of €200 million (£176 million). 1 June/1 July 2011 – India: We acquired an additional 22% stake in VIL from the Essar Group for a cash consideration of US$4.2 billion (£2.6 billion) including withholding tax. 18 August 2011 – India: Piramal Healthcare Limited (‘Piramal’) purchased 5.5% of VIL from the Essar Group for a cash consideration of INR 28.6 billion (£368 million). 9 November 2011 – Poland: We sold our e2ntire 24.4% interest in Polkomtel in Poland for cash consideration of approximately €920 million (£784 million) before tax and transaction costs. 8 February 2012 – India: Piramal purchased a further 5.5% of VIL from the Essar Group for a cash consideration of approximately INR 30.1 billion (£399 million) taking Piramal’s total shareholding in VIL to approximately 11%.  HISTORY • 1984 - Incorporated as Racal Strategic Radio Limited • 1988 - Partial listing on the LSE • 1991 - Demerger from Racal and full listing on the LSE • 1999 - Merger with Air Touch Communications Formation of Verizon Wireless, Vodafone holds a 45% stake • 2000 - Acquisition of Mannesmann AG • 2006 - Acquisition of Telsim (Vodafone Turkey) Disposal of Vodafone Japan • 2007 - Acquisition of controlling stake in Vodafone Essar(Vodafone India) • 2009 - Vodafone Australia merged with Hutchinson 3G Australia Vodacom Group became a subsidiary • 2010 - Sale of interest in China Mobile • 2011 - Sale of interest in SFR • 2012 - Acquisition of Cable & Wireless Worldwide • 2013 -Acquisition of Kabel Deutschland Announced proposed sale of US Group, incl. Verizon Wireless TURNAROUND
  • 11. Turnaround is a strategy of “cost reduction and asset reduction by a company to survive and recover from declining profits” (Pearce and Robinson, 2009, p. 224). The company has continuously increased the debt ratio due to its aggressive global geographic expansion, and it has recently taken higher priority in investing in existing businesses to improve ARPU from existing customer base and expanding its businesses to new markets where it can expect immediate turnaround rather than high returns in the long term. The company has thus 14 Implemented turnaround strategy and initiated One Vodafone program to achieve streamlined cost effectiveness and efficiency to improve bottom line performance. II. BUSINESS LEVEL STRATEGY  Strategic Planning:- In April 2005, Vodafone approved a five-year CR plan to help the company reach its vision of being one of the most trusted companies in the markets it operates by 2010. The CR strategy sets priorities in the following areas: • Maintain high ethical standards; • Understand and respond to our stakeholders' priorities; • Ensure our operating standards are consistent across the Group; • Deliver on our promises in three key areas: Responsibility to our customers Reuse and recycling of mobile phones Energy and climate change; and • Capture the potential of mobile to bring socio-economic value through access to communications. Local operating companies identify areas and activities to help contribute to meeting these strategic priorities.  Business Planning: Local operating companies work to the strategic priorities identified in the corporate CR strategy, and to the established suite of quantitative and qualitative KPIs for the organization (see governance section above). Every six months, the Group CR team runs a workshop for CR managers and issue owners from all of Vodafone’s operating companies. The workshops provide the opportunity for colleagues from around the
  • 12. world to meet, develop CR strategies and share best practices. Affiliates (companies where Vodafone does not own a controlling share) and partner networks are also invited to attend these workshop, as well as external stakeholders. Issues of high priority that might emerge from these workshops and require further development by the company would result in a CEO from one of the local operating companies sponsoring the issue, and then bringing together people from throughout the company to further discuss the issue and define policies, guidelines/standards and KPIs to manage the issue effectively. Once approved, these would then be rolled-out across the company. These policies, guidelines/standards become tools to help local operating companies operate consistently according to corporate strategy. Vodafone also uses a Group-wide issues management process to ensure that CR issues are fed into the company’s long-range planning across local operating companies. The process involves each operating company and most Group functions reporting to the Corporate Affairs Board1 on a quarterly basis the most significant local CR issues. The Board ensures that someone within the business is assigned to develop appropriate responses to each issue, feeding into strategic decision- making. This process helps Vodafone ensure that its strategic decision-making is taking full account of social trends and anticipating new issues as soon as possible.  Business Development: Whenever Vodafone considers a merger and acquisition (M&A), a Global CR team member is included in the team that conducts a due diligence review. Vodafone considers a range of CR issues relating to the country of operation, such as the local supply chain, environmental regulations or levels of bribery and corruption, as well as reviewing the acquisition’s existing CR policies and programs. The M&A team incorporate in the country report the information provided by the Group CR team regarding the main CR issues Vodafone will be faced with, what the local company is currently doing, and if Vodafone might face negative reputational impacts by acquiring the local company. In terms of product development, Vodafone is increasingly working at integrating CR into its decision-making. Beginning in 2002, Vodafone began considering how its products and services could meet societal needs instead of just customer needs related to network coverage for example. The company began by commissioning third-party research to understand the impacts of mobile phones. Research indicated that there was a link between growths in GDP and increases in mobile phone penetration. Social
  • 13. research identified that people with phones were impacted and empowered, having a stronger sense of well-being, an increased social network and increased economic status. Vodafone is also working with partners such as BT, HSBC, Unilever, etc. to address the needs of the bottom of the pyramid of the world’s population. This is an area where Vodafone’s local operating companies have a crucial role to play by identifying the local societal needs. Local operating companies send proposals that are considered by the Steering Groups in Research and Development (R&D). Five-six ideas have been considered in the last six months; full business cases are built and if approved, the company moves forward on the idea, conducting a trial, usually through partnering with a development agency and NGOs to implement.  Risk Management: Vodafone’s CR team feeds into three unique processes that help the company to manage CR risks. The company has an issues management process (described in business planning section above) that helps to identify potential implications to Vodafone of issues that might impact the business and become a risk. The company also uses a reputation risk management program that identifies the views of stakeholders, media coverage and legal views. It is run by Corporate Affairs and helps to define issues that could pose a risk to Vodafone and if considered a big risk and impact, then the company would start to build a program to deal with the impact. The third risk management approach taken by the company that incorporates a range of CR questions is Vodafone’s internal audit control questionnaire which is completed by all local operating companies once a year and signed off by their CEOs. This questionnaire is part of the company’s formal risk identification process. The results are reported to the Vodafone Group Plc Board of Directors. Each local operating company will use the same processes but the results will be unique reflecting local variables. Vodafone Romania, for example identified, identified RF fields and health, products and services for people with special needs, waste management and energy use as priorities in the 2006 financial year. Vodafone Greece was approached a number of years ago with a proposal to provide gambling services through mobile phones. In applying CR thinking, considering the social impact and the potential negative impact on the company’s reputation, Vodafone said no to this opportunity.  Project Management:
  • 14. Vodafone has developed social assessment criteria to look at new products and services beyond net present value. The checklists used to assess new products propositions include a specific section on CR and direct Vodafone staff to consider certain CR factors (e.g. social benefit) and apply a score. If scores are below a certain threshold, then project/product/service/supplier engagement will not go ahead as these may impact in the reputation of the company and the brand. For example, a women’s non-profit organization in Egypt approached Vodafone with a project that would allow farmers to easily access market prices. The project involves women going to different local markets in their area and using mobile phones to report back to a central location on the prices of various products. Farmers can then use a mobile phone and enter the product to sell and the phone will report the prices in the different local markets so the farmer can go to the market where there are higher prices and therefore make more profit selling for the highest prices avoiding unnecessary trips to check prices. Vodafone does not receive any real financial benefit from this kind of project, but the social benefit for the farmer is compelling and Vodafone believes it will lead to increased customer loyalty and therefore decided to move forward trailing this project. III. FUNCTIONAL STRATEGIES
  • 15. A. THE MARKETING MIX A longer term marketing strategy is underpinned by careful planning and a successful marketing mix. The marketing mix is a combination of many features that can be represented by the four Ps:  product - features and benefits of a good or service  place - where the good or service can be bought  price - the cost of a good or service  Promotion - how customers are made aware of a good or service. 1. PRODUCT • A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information and soon view video clips and send video messages. • Vodafone live! Provides on-the-move information services.  The products offered by Vodafone are prepaid phone services • World Calling Cards • Gulf Calling Card • Magic Box handsets • iPhone 3G • Vodafone Post paid • Handy phone • Vodafone PCO.  The services offered by Vodafone are • Tunes &amp • Downloads • Entertainment • Devotional • sports, News &amp • Updates • Call Management Services • Astrology • Finance • Travel
  • 16. • Internet Bonus Card • Mail, Messaging &amp • Dial in Services • Bill Info • Vodafone Business Solutions • Vodafone Tuesdays 2. PLACE • Vodafone UK operates over 300 of its own stores. • It also sells through independent retailers e.g. Carphone Warehouse. • Customers are able to see and handle products they are considering buying. • People are on hand to ensure customers’ needs are matched with the right product and to explain the different options available. 3. PRICE • Vodafone wants to make its services accessible to as many people as possible: from the young, through apprentices and high powered business executives, to the more mature users. • It offers various pricing structures to suit different customer groups. • Monthly price plans are available as well as prepay options. Phone users can top up their phone on line. • Vodafone UK gives NECTAR reward points for every £1 spent on calls, text messages, picture messages and ring tones. 4. PROMOTION • Vodafone works with icons such as David Beckham to communicate its brand values. • Advertising on TV, on billboards, in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively. This is known as above the line promotion. • Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy. • Vodafone’s stores, its products and its staff all project the brand image. • Vodafone actively develops good public relations by sending press releases to national newspapers and magazines to explain new products and ideas. • “Pug” & “ZooZoo” both are Mascot for Vodafone
  • 17. • Sales promotions-Special prepaid bundle for diwali • Official Sponsor for England cricket team since 15 years • Vodafone McLaren Mercedes F1 Car TRANSFORMATION FROM HUTCH TO VODAFONE PROMOTION STRATEGY OF VODAFONE  Hutch Dog to ZooZoo  Vodafone in INDIA came with acquiring Hutchison essar limited.• Vodafone was launched officially on 21st September 2007.• Than on hutch was rebranded as Vodafone.  The name Vodafone comes from Voice data phone, chosen by the company to Reflect the Provision of Voice and Data Services over Mobile Phones.  MARKETING STRATEGY Replacing the Hutch’s iconic Dog mascot with new mascot ZooZoo and associated with IPL as lead sponsor. All the stores were painted red replacing the pink rose colour of Hutch The new catch phrase “Make the most of now”  To keep its leading edge, Vodafone is continually looking to add value to the services it provides and to the packages it offers to customers. ZooZoo, the new brand ambassador of Vodafone, has created a furores in the advertising industry. All the services and tariffs, Value added services were communicated through ad’s created using ZooZoo  Marketing strategies of Vodafone has given birth to the Zoozoo: a special character created specifically to convey a value added service (VAS) offering in each of the newly released commercials.  Vodafone has come with creative advertising campaign for its various plans.• This strategy has captured the imagination of millions.• The strategy is a buzz that lives up to the brand image of great creative’s and clever marketing.• In the first 10 days of IPL (Indian premier league) it has reached a cumulative of 89 million people.• This is a wonderful strategy adopted by Vodafone.  This has helped the company to raise not only its profits through sales but has also tremendously increased its brand value.• Zoo zoos have become so popular that Vodafone has succeeded in its effort of viral or buzz marketing. Their add campaign has gained so much popularity all over the world.
  • 18.  The viewership for the add is highest among all the adds. What’s interesting is that there are some 25 such commercials planned under this campaign, 10 of which are already on air.• The aim was to release approximately one ad a day, to sustain interest till the end of the IPL.  Themes for advertisement • Magic Box. • Background Music.• Stock Alerts. • Exam Results.• International Roaming. • Beauty Tips. • Bhatia Sager. • Phone Backup. • Dating Tips. • IPL commentary. • Voice SMS. • Cricket Alerts. • Fashion Tips. • IPL contests. • Recharge Anywhere. • Chotta Credit. • Ringtone. • Maps Live. • Group SMS. • Live Games. • Call Divert. • Musical greetings.  Success…• Zoo zoos dominating social networking sites. • Created Strong Association. • Wallpapers, ringtones, videos, contests. Pictures, stories etc of Zoo zoos. • Videos had 3million hits in 3 weeks. • Most watched video. • Most watched brand in breaks. • Vodafone becomes INDIA’s 3’rd biggest tele-com company after airtel and Reliance, within a very short period. DAYS BEFORE ZOOZOO  Pug was the mascot for Vodafone‟  Taken over from Hutch  IPL 2008 had Vodafone going in Pug for its „Happy to Help service‟ Vodafone in order plan for the future and in wake of mobile number portability decided to distinctly identify its value added services by launching the Zoo zoos campaign during the Indian Premier League 2 (IPL-2). Cricket is considered to be a religion in India, and Zoozooz captured attention of nearly two billion people during the IPL. People eagerly waited for breaks between matches to see more stories about Zoozoo.
  • 19. Zoozoo have been successful in giving Vodafone a makeover and establishing maximum brand presence. It is an excellent example of a well-laid out marketing strategy. It was a fresh and innovative concept and Vodafone wonderfully promoted their services by creating different stories featuring Zoozoo. There were no celebrity endorsements. The charm of the Zoozoo was itself a great self-marketing strategy and they were instant success among masses. Within few days, Zoozooz created a huge audience for them, giving a boost to the Vodafone brand. People were already in awe of those cute and lovable characters, but the curiosity heightened when Vodafone disclosed that Zoo zoos were not animated, rather humans were playing those characters. People were hungrier to know about their favourite Zoozoo. In the second phase, after the release of these ads, Vodafone promoted these characters on social media sites, which was another wise decision. Zoozoo fan clubs are there on social networking sites like Face book, YouTube, Orkut, Twitter, and many more, where they have a huge followings. Now Vodafone has announced to launch the Zoozoo goodies like zoozoo toys, zoozoo mugs, zoozoo key chains, zoozoo t-shirts, etc. Vodafone finally launched the 3G SERVICES formally in India with a brand new marketing campaign. The teaser campaign was going on for few days now. Zoo Zoos describing seeing something very fast and fascinating in the skies. The ad campaign created a lot of buzz and anticipation in the market as Vodafone’s Zoo Zoos had already a become popular figures with the masses.
  • 20. B. COMPETITORS OF VODAFONE The competitors of Vodafone in India are:-  Bharti Airtel  Reliance Communications  Idea cellular Limited, Virgin Mobile  TATA (DOCOMO)  TATA Indicom  Aircel  Spice communications Limited  State owned MTNL and BSNL
  • 21. C. SWOT ANALYSIS STRENGTHS:-  Expanded environmental collection with strong cellular & telecommunication business in the Europe, Middle East, Africa Asia Pacific & somehow to the US.  A group of strong network transportation.  Strong presence in rising markets like India.  Strong in cities.  Amongst Top Three Mobile operators in India  Globally Renowned Name  Strong infrastructure  Strong advertising campaigns WEAKNESSES:-  A Negative revisit on chattels (ROA) under the execute & strong competitors like AT&T, BT Group, Deutsche Telecom.  The American business is not as strong as the European/having a break of the world operations of 80% of their business is producing in Europe.  Does not have Network in the countryside.  Not able to tap rural areas  Brand image of catering only to urban and sub urban areas OPPORTUNITIES:-  Should rely on decreasing cost & increase Income.  Most of the venture in Hutchison Essar in India.  Needs to Investigate & Improvement of the new mobile technologies.  Good tax free offers & plans.  Rural Areas still needs to be tapped.  Mobile Number portability THREATS:-  Very high competitive & strong market to face.
  • 22.  Still insulate at the back of most of the competitors in the US.  Very high incursion rates in the key European markets.  European Union directive on cross-border usage of the cellular phones.  Mobile Number Portability  Entry of new Licenses like Virgin Mobile  Lower Tariffs announced by Rival Players D. HUMAN RESOURCES Recruitment and Orientation: Another area of improvement identified by Vodafone is the integration of CR factors into human resource (HR) management. Vodafone is a young company of only 20 years, ten of which were spent as a company of 300 employees. Through aggressive acquisition, Vodafone now has 60,000 employees. This has resulted in a number of HR policies throughout local operating companies and the need to focus on standardizing these policies and practices. At the global level, CR is integrated into induction training for all new employees, through workshops that talk about the company’s CR policies. All employees also receive the booklet on ‘Passion for the World around Us' that identifies the company’s values and its commitment to the goals of CR. Vodafone conducts an annual employee survey that includes questions about whether the company is generating trust and adequately managing its environmental impact. Vodafone does seek the approval of employees on what they are doing and the ratings are generally above 90%. Employees report being more highly motivated because of the company’s CR initiatives, with local operating companies on average having a better understanding of CR and related higher pride for working with Vodafone. Vodafone’s internal website is also used for collecting information or ideas from employees on CR initiatives. Training: Vodafone delivers a variety of global training through the use of e-tools, including an e- module on CR. Vodafone is developing a set of new indicators to identify the number of employees that have also received classroom CR training (e.g. ten global managers received training in social audit; 84% of Supply Chain Management managers and employees have received training on the Code of Ethical Purchasing).
  • 23. Other communication mechanisms are utilized to increase awareness of CR issues such as: topic emails (e.g. climate change); themed events (e.g. invited employees to attend showing of the documentary, An Inconvenient Truth, followed by a panel discussion where the Corporate Affairs Director discussed climate change and what Vodafone is doing to improve its practices); monthly CR teleconferences (CR is also discussed between Group functions and operating companies in many other forums connected with operational issues); and the monthly newsletter from the CEO normally contains a paragraph to discuss Vodafone’s CR initiatives (e.g. one of the last newsletters addressed some of the external recognition Vodafone received related to CR). The CEO’s newsletter often addresses Vodafone’s way of dealing with an issue. Vodafone also includes CR in the training for its managers. A session on CR is included in the Global Management Development Program, which is a three-day course for the most senior managers. The participants debate a series of issues from the perspective of different stakeholder groups and devise a response. Vodafone is also working at standardizing processes related to training among its local operating companies. For example, Vodafone UK is piloting an e –learning training course on the Business Principles for all UK employees. If successful, this would be rolled out across local operating companies. Performance Appraisal and Compensation: In 2006, specific CR performance targets were defined and embedded into the performance quarterly review process. Local operating CEOs and Group operating business unit CEOs now have their bonuses also tied to personal performance against CR targets. CEOs cascade the performance targets throughout their organizations so the local CR team members, the energy efficiency manager, etc. would also have a CR-related target VODAFONE ESSAR Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone Essar now has operations in 23 circles with over with over 85.82 million customers**. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%.
  • 24. The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007. On September 20, 2007 Hutch became Vodafone in one of the biggest brand transition exercises in recent times Despite the official name being Vodafone Essar, its products are simply branded Vodafone. Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom Company', the ‘Best Mobile Service in the country' and the ‘Most Creative and Most Effective Advertiser of the Year'. It offers both prepaid and post-paid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India. Vodafone Essar is the 1st Indian Telecom operator to receive the Payment Card Industry Security Standard (PCI DSS) certification for its Mumbai operation in 2009. Also it is the first time that Vodafone has launched Recharge Online. Vodafone Essar Limited (Vodafone Essar) – subsidiary of mobile network operator Vodafone Group Plc. o 2005-Vodafone entered India by acquiring a 10% stake in Bharti Airtel Limited; which it later sold. o 2006-FDI limit in India increased – Essar became a minority stakeholder (33% equity stake) in HEL o 2007-HEL became Vodafone Essar Limited & re-branded ‘Hutch’ to ‘Vodafone’ INDUSTRY HEADING The pace of change in the mobile industry is significant with growing sources of revenue from data services such as internet usage; new users from emerging markets; rising take-up of smart phones and tablets; and major advancements in network technology to deliver faster and better services.  Data services and emerging markets represent the largest opportunity as traditional voice and text services in developed countries reach maturity
  • 25.  The shift towards smart phones and away from feature phones continues with smart phones representing nearly 40% of devices shipped in the last year  Significant technological improvements have led to faster data networks and product innovation to improve the customer experience  Growing revenue streams The share of industry mobile revenue from traditional voice and messaging services in developed markets is declining due to relative market maturity, ongoing competitive and regulatory pressures leading to lower prices for mobile calls, and a slow pace of economic growth. In contrast the demand for data services, such as internet on the mobile, is growing rapidly. In 2006 data services accounted for 6% of industry mobile service revenue, in 2011 it reached 20%, and it is expected to rise further over the medium term. Demand is being driven by a combination of higher smart phone penetration, significant enhancements to network data speed and coverage, and an increased range of mobile applications. Smart phones now represent 39% of all handset sales compared to 8% in 2006. Emerging markets, such as India and Africa, represent the regions with the most potential for future revenue growth driven by strong economic growth and low mobile penetration. For example, only 74% of India’s 1.2 billion populations have a mobile phone implying good potential future market growth. According to external estimates by 2015 there will be 1.5 billion new mobile users, and the vast majority will be from emerging markets.  Technological innovation Today’s mobile networks in Europe are typically a combination of 2G networks for traditional voice, text and basic data services, and 3G networks for high speed mobile internet access and application downloads. 3G maximum data downlink speeds are already up to 43 Mbps (with typical user speeds of up to 6 Mbps). 4G, or long-term evolution (‘LTE’), the next stage of mobile network development, is already in place in some countries – providing maximum user speeds of up to 150 Mbps (typical user speeds up to 12 Mbps). Going forward, further network upgrades are expected to significantly enhance the user experience through a combination of both faster networks and wider high speed network coverage. Innovation in services is also critical to enhance customer experience. Vodafone, together with a number of other leading operators, has developed the next wave in
  • 26. personal mobile communications known as rich communication services which will enable data services such as instant messaging or chat, live video sharing and file transfer across any device and on any network, in much the same way as voice and SMS. Vodafone is also developing a range of new services to generate additional revenue and enhance  Networks We aim to have the best mobile network in each of our markets. This means giving our customers far-reaching coverage, a very reliable connection, and increasing speeds and data capacity. We believe that over time, offering a superior network experience will enable us to secure a premium positioning in most of our markets. Our network investment is enhanced by our ongoing acquisition of mobile spectrum as it becomes available. For more information on our network build-out, see page 24.  Distribution We operate around 14,000 stores across the Group, and have extensive networks of exclusive distribution partners and third party retailers. We will develop our distribution further to stay close to our customers, making it easy for them to join us from our competitors, upgrade their existing contract or just seek help with the services we offer. In addition, the internet is becoming an increasingly important part of our sales and service mix, and we have significantly upgraded our online shop and online service capabilities over the last three years.  Supplier relationships We work closely with our suppliers to build robust networks, develop innovative services and offer the widest range of the latest devices. In many cases these are partnerships, where we will approach a supplier with an idea or a problem that needs solving, and then work together to bring a solution to market. From the customer perspective, the global reach and scale of Vodafone means that we will often be the destination for exclusive or first-to-market products. CURRENT POSITION OF INDUSTRY The mobile industry is a large and important sector with six billion global users. Customer growth over the last five years has been rapid, driven by the benefits of mobility, falling prices and rising penetration in emerging markets.
  • 27. However, pressures on revenue growth from competition and regulation are significant and are likely to remain.  86% of the world’s population use a mobile phone  Competition is intense with typically at least four mobile operators in each country and numerous additional alternative communications providers  Regulators continue to impose policies to lower the cost of access to mobile networks.  Scale The mobile industry is one of the largest communication sectors in the world with over six billion users across the globe. In contrast there are only 1.2 billion people with fixed line phones. The mobile industry generates around US$960 billion of annual service revenue, 80% of which comes from people making standard voice calls and sending texts. Over the last ten years the share of telephone calls via mobile has increased from 20% to 74%, reflecting the benefits of mobility. In 2011, 4.3 trillion Text messages were sent (about 136,500 every second).  Growth The demand for mobile services continues to grow. In the last five years the number of users has increased by an average of 17% each year driven by rising living standards, population growth and cheaper mobile services and handsets. In 2011 86% of the world’s population has a mobile phone, whereas ten years ago this was only 16%. Most of the new demand for mobile services is from emerging markets such as India and Africa. In India for example, the number of phone users increased by over 140 million in just one year, 2011, which is more than twice the size of the UK population. Emerging markets are growing quickly, and account for over 70% of the world’s mobile users. The rest live in developed markets such as Europe and the United States, where demand is growing more.  Competition Slowly as most people already have a device in Europe for example there is already an average of 1.3 SIM cards per person. The telecommunications industry is highly competitive, with typically at least four national mobile network operators, such as Vodafone, and one national fixed line operator in each country. In addition, there can be numerous companies that rent
  • 28. capacity from mobile operators and sell their own mobile services to customers. In some countries there can also be several independent distribution companies that compete with the mobile network operators’ own stores. Advances in technology are bringing in newer suppliers, such as internet based companies and software providers offering converged services such as voice over internet protocol (‘VoIP’).Against this background, consumers have a wide choice of providers.  Regulation The mobile industry is very heavily regulated by both national, European and other regional and international authorities. Regulators continue to impose policies to lower the cost of access to mobile networks through setting lower mobile termination rates (the fees mobile companies charge for calls received from other companies’ networks) and to limit the amount that operators can charge for mobile roaming services. These two areas represent 12% of service revenue for Vodafone. In an environment of intense competition and significant global regulatory pressures, industry voice prices have tended to reduce over time and in 2011 fell 14%. However, with more mobile phone users and some customers using their devices ever more frequently. VODAFONE PRODUCTS: BRAND IMAGE David Beckham is more than a footballer. He is also regarded as a fashion icon, a caring family man and a nice guy: an overall image that attracted Vodafone to him. Beckham’s popularity with football fans comes largely from his England team captaincy. As a footballer, he is well regarded around the world. Other young men who might aspire to his success and style also tend to identify with him. He appeals to many females because of his reputation as a fashion and lifestyle icon. He is also married to a female icon in her own right. Vodafone’s sponsorship of the Manchester United team appeals to a broad section of the global football/sports audience, whereas aspects of Beckham’s broader image have grown to appeal to a much wider section of society. That suits Vodafone, who needs to appeal to different segments of the market. Beckham’s healthy lifestyle allied to his talent suggests an energy and a controlled passion for life; an image that Vodafone would also like to project for itself. On a football field, Beckham is innovative, creative, exciting; characteristics that Vodafone aspires to. Beckham the family man comes across as caring and empathetic; Vodafone
  • 29. wants people to appreciate that it too understands and cares about what people want and need. Beckham is generally seen as dependable; Vodafone wants to communicate a similar image. The synergy is clear. THE CAMPAIGN Beckham is supporting the campaign to promote Vodafone live! In the UK and in other markets. The UK campaign shows Beckham doing everyday things: a happy, relaxed, competent shopper sending pictures and accepting a message to remember to buy eggs. At the same time he is also clearly demonstrating what Vodafone live can do. The TV campaign has been a huge success. Many people have seen it and can recall the adverts. The campaign captured the imagination of the press, and many newspapers covered stories about Beckham’s sponsorship deal. Slogans such as ‘Send it like Beckham’ help to further promote the Vodafone message. Beckham’s image is also used on a variety of other customer communications including in-store posters, billboards, in the company’s magazines and catalogues and in leaflets mailed to customer. MARKET RESEARCH High profile campaigns are a gamble. The campaign’s impact has to justify the time, money and effort spent on it. The marketing team must evaluate the campaign’s success. Vodafone UK has asked people across different sectors of society about the campaign, and has analysed their responses. Individuals were asked what they could remember about the campaigns. This is known in the marketing industry as recall. RECALL % Another exercise assessed the effectiveness of the poster depicting Beckham being reminded to buy some eggs. People in the survey are shown different Vodafone posters and asked to say which of them they recall in relation to Vodafone live! Clearly, the Beckham poster is far and away the one that is best recalled. Other data has been used to assess the success of the Beckham promotion. Findings from UK Brand Tracking data reveal that the TV campaign has increased awareness of Vodafone with above average efficiency as measured by the Awareness Index, primarily because of the Beckham scenes. People are able to recall and describe the advertisements without prompting. The Beckham campaign has also helped to support Vodafone’s drive for brand migration. Vodafone can help to fulfil its aim to grow successfully by acquiring local companies in markets that Vodafone would like to enter. A good example of this is
  • 30. Vodafone’s purchase of J-Phone in Japan. The initial strategy was to use a dual J-Phone Vodafone logo alongside the powerful image of Beckham to emphasise the relationship between the two companies. The final transition removed the J-Phone logo altogether to a sole focus on Vodafone (Vodafone KK). This strategy warmed J-Phone’s customers to the idea of a global brand replacing a local brand. David Beckham is a popular figure in Japan and helped to smooth the way for the substitution of the global brand in place of the local one. MOBILE DATA SERVICES Vodafone goal is to become the provider of choice for customers wanting to use data services. The opportunity is huge as we believe that over time all customers will want to use data internet services on their mobile devices The mobile industry started less than 30 years ago with a single service making and receiving calls. Today customers enjoy a range of services including simple voice calls, text and picture messaging, and data services such as mobile internet browsing, social networking sites, downloading applications (‘apps’) and sending emails via smart phones. MARKET CONTEXT: According to industry analysts, data is expected to be the fastest growing segment of the mobile industry. It is estimated that between the 2011 and 2016 calendar years worldwide mobile data revenue is set to grow by US$142 billion, compared to a US$27 billion decline in voice revenue over the same period.1 GOALS: Vodafone aim to have the best mobile network in all of the markets in which they operate, supported by leading IT systems. This means giving customers far-reaching coverage, a very reliable connection and increasing speeds and data capacity. STRENGTHS: They have more than 238,000 base station sites transmitting wireless signals – making us one of the largest mobile operators in the world. ACTIONS:
  • 31. They are investing around £6 billion a year to deliver a high quality mobile data experience for customers. PROGRESS: In 2012 nearly one trillion minutes of calls were carried and more than 216 pet bytes of data were sent across our networks in other words enough data for 2.8 trillion emails. Services is growing rapidly Data is already our fastest growing segment, with data revenue up by 22.2%* over the financial year, compared to a 4.4%* rise for messaging revenue and a 4.0%* fall for voice revenue. This demand is being driven by three key factors – a widening range of powerful and attractive smart phones and tablets, significant improvements in mobile network quality and capability, and an increased choice of user friendly and useful applications for business and social use. They have already seen significant growth in the number of customers using smart phones, with 27% of customers in Europe using these devices today, compared to 19% last year and this is expected to grow rapidly in the next few years. They are growing data revenue through enhancing technology and improving the customer experience They are continuing to refocus our business on data to capture the significant expected growth in customer demand for data services. Vodafone aim to deliver a market-leading network experience to their customers. To compare their performance against our major competitors we conduct regular benchmark tests using reputable third parties. The latest results show that we have leading data service performance in 13 out of 18 markets with data downlink speeds on average around 6% better than our next best competitor. GENERAL FEATURES OF 3G  Enhanced multimedia (voice, data, video, and remote control)  Usability on all popular modes (cellular telephone e-mail, paging, fax, videoconferencing, and Web browsing)  Broad bandwidth and high speed (upwards of 2 Mbps)  Routing flexibility (repeater, satellite, LAN) Roaming capability VODAFONE 3G APPLICATIONS  Interactive news delivery (voice, video, e-mail, graphics)
  • 32.  Voice /High-quality audio  Still photography  Video  Data transmission services  File transfer from intranet  Multimedia e-mail (graphics, voice, video)  Video conferencing  Information Systems SERVICES OFFERED BY VODAFONE 3G HIGH SPEED INTERNETS: High Speed Internet: Vodafone 3G promises lightning fast downloads of large attachments, music tracks, and superfast loading and browsing on Internet. Video Calling: You can chat with your friend or attend a business meeting face to face without leaving your seat with Vodafone 3G live and seamless video calling feature. Vodafone TV: When you are travelling, get live news and your other favourite TV programs on your mobile. Vodafone TV brings popular channels like NDTV, STAR, Zoom, Zee and National Geographic to your handset. You can enjoy all available channels for Rs150/month and Rs7/Day. Live Streaming: Now you can enjoy your favourite match or video without annoying buffering breaks with Vodafone 3G. HD Gaming: Mobile Gaming becomes more enjoyable and faster with Vodafone 3G Faster Downloads: Vodafone 3G offers 3 times faster download than 2G and simultaneous transfer of voice and non-voice data, so that you can enjoy a seamless connectivity.
  • 33. Mobile Newspaper: Vodafone 3G brings Mobile Newspaper, a service that brings your favourite newspaper to your mobile. Just select your paper and news, videos and photos will be directly displayed on your handset. INTERESTING INSIGHTS • High spenders, post paid subscribers and business subscribers show a greater tendency to switch if Mobile Number Portability is introduced • Prepaid, low and medium spend users are not motivated to switch • Post paid subscribers have almost double the minutes of usage compared to pre-paid subscribers and the incidence of data application usage is also higher among post-paid and high spenders • More than half (55%) of all respondents were generally satisfied with their mobile operator and 48 percent were satisfied with the network quality • 46 percent were satisfied with the network coverage area of their operator and 43 percent were satisfied with the price they paid for the mobile phone service by their operator • Satisfaction scores on network quality dropped for almost all operators, with Airtel, BSNL and Reliance registering the greatest drops • Vodafone has the highest post paid subscriber base in India POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL ANALYSIS  Political: - Governmental and legal issues affect how the company operates.  Regulation  Infrastructure  Banning of phone use in certain circumstances and areas.
  • 34.  Health issues  Economic: - Factors influencing the purchasing power of customers and the company's cost of capital.  Cost of 3G licenses  Cost of calls being driven down  Worldwide recession  Third world countries  Social: - Demographic and cultural aspects of the environment which influence customer needs and market size.  Health Issues  Demographics  Social Trends  Picture phones  Mobile Etiquette  Saturation Point  Technological: - The technological advancements that are coming in the telecom industry  3G  UMTS (2.5G)  GPRS/WAP  SMS / MMS
  • 35. FUTURE STRATEGY Vodafone can help to transform societies by bringing innovative products and services to our 404 million customers, 68% of whom live in emerging markets. Mobile technology is already a vital tool in people’s lives and our ambition is for Vodafone’s mobile services to further improve people’s livelihoods and quality of life. At the same time, we aim to help consumers, governments and businesses tackle some of the significant challenges they face – from food shortages and ageing populations, to lack of access to communications, healthcare and financial services. Their business focus on emerging markets, enterprise, data and new services gives us the ability to achieve our ambition to contribute to global development in this way, while continuing to grow our business at the same time, by developing commercially viable, scalable services that support sustainable development. DRIVING ECONOMIC AND SOCIAL DEVELOPMENT  The global footprint of our network, our significant presence in emerging markets and our track record as an innovator, enable us to make an important contribution to socio-economic development. Recent research shows a 10% increase in mobile access raises a country’s economic productivity by 4.2%.  Over 68% of our customers live in emerging markets. By extending our network coverage and putting basic voice and data services in the hands of people without access to communications, we can create tangible benefits while building our customer base and establishing lasting relationships too.
  • 36.  They are also creating innovative mobile services to help people and organisations make the most of limited resources and are focusing on using mobile to help transform financial services, healthcare, education and agriculture.  Thanks to Vodafone’s M-Pesa service, millions of people without a bank account can send, save and borrow money; our mobile health services enable health workers to see more patients; and our ‘Learning with Vodafone’ programme in India helps children get a better education. DOING MORE WITH LESS  By 2030, there will be 20% more people in the world necessitating a 70% increase in agricultural production The Connected Farmer Alliance is our a partnership with USAID and the NGO Techno Serve, using our technology to help 500 million smallholder farmers in Africa to increase their productivity; and our Turkey Farmers’ Club has already helped farmers increase productivity by €190 million, showing how mobile can make a real difference.  Businesses and organisations are under pressure to deliver a substantial portion of the global carbon reductions required to tackle climate change, while also facing economic pressure to cut costs and increase efficiency. They need to do more with less and by using our mobile technology they can improve the efficiency of their operations and enable smarter ways of working.  Remote wireless connections create two-way communication between machines –M2M –enabling organisations to collect the real-time information they need to reduce their energy use and carbon emissions. Vodafone is a leading M2M provider with more than 9.5 million of our connections already helping businesses deliver cost savings and carbon reductions. EXTENDING ACCESS TO EVERYONE  For increasing numbers of people around the world, mobile internet is the internet. Fixed-line internet is often too expensive to roll out and there are many places it can’t reach. Wireless technology can close that digital divide  Around the world, Vodafone is working to enable as many people as possible to share in the mobile internet revolution. We are extending access to mobile broadband to remote areas across the world and are creating new services that make mobile phones easier to use for people who are elderly or people with a disability.
  • 37. BEING RESPONSIBLE  They can’t do any of this without the trust of our customers and other stakeholders. To earn that trust, we need to manage our operations responsibly and conduct our business in an ethical and transparent way.  They are ambitious in the way we manage our wide-ranging responsibilities and have strong programmes in place– from protecting customers’ information and respecting their privacy, to treating our employees fairly, working to reduce our impact on the environment, and setting set strict ethical, labour and environmental standards for suppliers. By taking their responsibilities seriously, they aim to continue to enhance Vodafone’s reputation and the contribution of their products and services to sustainable living. CONCLUSION After going through the Advertisement Strategies of Vodafone, I conclude that promotion whether it is through print media or through the ads shown on television, plays a very important role in building a Brand. Hutch and Vodafone rebranding is the memorable and most big event in the telecommunication industry. And the advertisement made this event bigger by continuously broadcasting the ads for 24 hours on national television. The main motive is to make people know about your brand. And that is what is done excellently by Vodafone. The advertisement also puts a very big question in front of the other telecom companies, does having big movie stars and cricketers as their brand ambassador really help? Doesn’t a simple white character with egg shaped head, round belly and thin legs called Zoozoo can gain the attention of masses. This is definitely a new trend and also a new wave. Thus it can be seen that oligopolistic market structure of this industry has played a significant role in the generation of revenue for Vodafone, especially through this unique advertising strategy. Continued growth in data and emerging markets, mature voice trending below one third of service revenue New strategic approach to consumer pricing and bundling in Europe Strengthened commitment in enterprise through an expanded product catalogue and a dedicated division Continuing consistent investment in high speed data networks, technology independent Drive towards standardisation , simplification and efficiency
  • 38. for both better service and lower cost position Maintaining strong returns to shareholders as a priority In a highly competitive market, David Beckham is the latest in a number of high profile celebrities and sports personalities that Vodafone has used to promote Vodafone live! Market research and increased sales indicate that using Beckham’s image has been highly effective. Sponsorship using stars involves a partnership between the star and the company, and success depends on both remaining high profile and in the public eye The Beckham campaign is seen in many countries worldwide and reinforces his own image as well as communicating Vodafone’s brand values. Beckham is something of a phenomenon whose star status shows no sign of waning. Vodafone believes that it has gained an important advantage in a highly competitive market place as a result of having such a high profile, admired star attached to its name and its product. BIBLIOGRAPHY • http://www.managementparadise.com/Aditi707/documents/13627/projet-report-on- vodafone---marketing/ • http://www.vodafone.com/content/dam/vodafone/investors/financial_results_feeds/h alf_year_30september2012/p_halfyear2012.pdf • http://www.stratos-sts.com/wp-content/uploads/2013/04/2007_07_Case-Study- Vodafone.pdf • http://www.studymode.com/essays/Brand-Element-46587771.html • http://www.studymode.com/search_results.php? query=List+The+Names+Of+Vodafone+Products&field%5B%5D=title&field%5B %5D=paper&period=any&pages=0&pages_from=1&pages_to=10&words=0&wor ds_from=1&words_to=1500&match_mode=any&exact_query=&exclude_query= • http://www.studymode.com/subjects/list-the-names-of-vodafone-products- page2.html • http://www.stratos-sts.com/wp-content/uploads/2013/04/2007_07_Case-Study- Vodafone.pd • http://www.vodafone.com/content/index/about/sustainability/our_vision. Html • http://www.ehow.com/facts_7546949_introduction-mobile-industry.html • MANAN PRAKASHAN, MAHICAL VAZ