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Documenti di Professioni
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54%
30,000 TIM 47%
37%
20,000
10,000
Vodafone 36%
At the
leading
Traditional Italian leader:
edge reliable, conveying a
feeling of security.
INNOVATION
Low
Innovative player, strong
Standard / High brand awareness through
CUST. ORIENTATION
low service touch “videocompany” claims.
Key consumer segments
Segment Definition Value
Self-employed (often SOHO). Use the mobile for professional
Professional use. H
Socialising is top of their agenda. Mobile is for fun, they want to
Young
be at the leading edge in life and with technology. H
Young people; students or not employed
Teens Use mobile to be always in touch with their community. Mobile is a
personal statement.
M
“Functional” attitude to mobile mainly for voice and basic VAS: it is
Adult a “problem solver”, do not use it for lengthy/emotional
communication. (scared of cost)
M
Voice-only users, infrequent personal use. Older age, more likely
Mature to be women
Main need is safety, reachability and dependability
L
Vodafone stronger on Young, Adults and Professionals
Avg VF
Vodafone Average
Market Share
Market Share
36%
36%
Innovative
Can-do
Joie de vivre
LIVE
MMS
ROAMING
FERRARI
I FEEL VODAFONE OMNITEL
Pricing and promotional strategy
Pricing progressively more attractive for high usage/value customers (volume rebates, etc..)
Pag. 1
Distribution channels strategy
From . . . . . . To
Vodafone One Shops build and enhance an exclusive relationship between Vodafone and
its customers:
Information point Assistance point
Demo new services Redemption of rewards
Channel compensation strategy
Dealer compensation reduction
Reduction in up-front fees, while dealer incentives (variable based on results) slightly increase
Radical shift in dealer incentives from quantity (new add target) to quality (ARPU generated by
new SIMs)
(15)
Up-front
commissions Dealer
Compensation
Customer Satisfaction
Customer Index
Satisfaction ( 0 (–0-100)
Index 100 )
100
Vodafone strengths in Italy:
VF
Vodafone
Customer Care
COMP.1
COMP.1
Brand
COMP.2
Commercial offer
always interesting & competitive
COMP.2
1 01 1 2 02 2 3
y-0 ul-01 p- v-0 an-0
2
r-0 n -02 p- c-0 - 03 r-0
m a j se n o j m a j u se de jan m a
Vodafone market performance in Italy
Continued growth of EOP customer base . . .
EOP (SIMs)
19,590,000
19,412,000
17,426,000
14,919,000
10,418,00
6,190,000
2,460,000
713,000
13% 12.1%
Service Revenues: YoY Growth Rate 12% 11.3%
11%
30%
10% TIM
26.4%
9%
25%
21.2% 21.6% 8.7% 8.5%
20.3% 8%
8.1%
20% Vodafone 7%
16.9%
6%
14.3%
15% 12.1% dec-02 mar-03 jun-03
11.2% 11.3%
TIM 10.8%
10%
10.6%
8.5% 8.2% 9.2% 8.7% 8.1% 8.5%
5%
1.5% 6.4% Solid Service Rev. double digit growth
4.5%
0%
mar-01 jun-01 sep-01 dec-01 mar-02 jun-02 sep-02 dec-02 mar-03 jun-03
Share On Revenues vs Mkt Leader
90%
85%
65%
60%
sep-01 dec-01 mar-02 jun-02 sep-02 dec-02 mar-03 jun-03
ARPU
Vodafone consistently shows higher than competition ARPU growth . . .
(1)
ARPU Growth rate (YoY)
-8.5%
-10.0%
Vodafone
-13.1%
-15.0%
mar-01 jun-01 sep-01 dec-01 mar-02 jun-02 sep-02 dec-02 mar-03 jun-03
57 7.5%
-8%
+ 12%
6.9%
51
(1) (2)
ARPU DATA Data revenues as a % of Serv. Rev.
4.0 14%
3.6 12.4% 11.9%
3.4
3.5 3.3 12% 11.5%
3.2
10.3% 10.0% 10.4%
3.0 2.8 10% 11.1%
2.8 3.11 9.3%
2.6 3.0 3.0 Vodafone 10.3%
10.6%
8.2%
2.5 Vodafone 2.4 8%
2.7 7.0% 7.3% 8.7% 8.8%
2.0 8.0%
2.3 7.5%
2.0 1.9 2.3 6% 7.1%
2.1 2.1
6.1% 6.1%
1.8 1.8
1.5 4%
TIM TIM
1.0 2%
mar-01 jun-01 sep-01dec-01mar-02 jun-02 sep-02 dec-02mar-03 jun-03 mar-01 jun-01 sep-01dec-01mar-02 jun-02 sep-02 dec-02mar-03 jun-03
(1) Vodafone ARPU does not include Visitors consistent with TIM’s ARPU calculation
(2) Vodafone Data Revenues do not include Visitors, consistent with TIM’s data revenue calculation
Redeployment of resources: SRCs versus SACs
Mix of commercial costs dramatically re-focused from Acquisition to loyalty
management . . .
Acquisition Costs (SACs) Retention Costs (SRCs)
300 EurMM Eur/GA 44
EurMM Eur/sub
140
250 240 6
5.4 5.1
37
200 181 37 100 95
91
4
150 35
125
60 2.2
100 30
2
30
50 25
20
23
FY 00-01 FY 01-02 FY 02-03 FY 00-01 FY 01-02 FY 02-03
25%
25%
23%
15%
21% 24% 24%
21%
22% 17%
5%
19% 20%
(1)
EBITDA & EBITDA Margin Cash Flow – Abs Value & % of Rev
12%
FY 00-01 FY 01-02 FY 02-03 FY 00-01 FY 01-02 FY 02-03
YoY Growth
1) Ebitda less Tangible additions – FY 00-01 excludes UMTS Licence
Contents
In the car
In the PDA
As a back-up
Multiparty
Summer Card
SMSretention
SMS retention and
and network
network stimulation
stimulation SMS CB initiatives + education
MMS
Messaging Vodafone live!
Community and chat
SMS Vodafone live!
Vodafone Mail
Vodafone live!
Gaming and entertainment
SMS Vodafone live!
Content Info-mobility services
Services Vodafone live! Voice / 412
News, sport, weather, horoscope…
Vodafone live! SMS
Vodafone Mobile Connect Card
Access
Vodafone PDA
= type of service
Italic = way the service is delivered
Pag. 2
Data: Continuous innovation to promote occasions of use
Professional
Vodafone Mobile Connect Card
Vodafone leading solution to provide fast and
easy-to-use PC access to the internet
E-mail
Web browsing / access to corporate LAN
Young
Vodafone live!
Communication with more than just words: a world of
colour, sound and fun to share the things that excite you
with those that matter to you
Icon based portal
Integrated camera handsets
MMS, games, polyphonic ring tones
Business: Overall services portfolio
Business services
Consumer
services
Devices Access Applications
Top/ Special
Vodafone Connect Connected by Projects
Int’l Acc
Card Vodafone (OEM)
(2.5 G, Wlan, 3G)
SMS Vodafone Dashboard Corporate
(2.5 G, Wlan, 3G) Mobile
MLA Solutions*
MMS
Vodafone PDA
Multi Messenger
SME Access Vodafone Mail
Packages
Pag. 3
CRM and campaign management
HIGH VALUE 1
CUSTOMERS 2x Average
2 Customer Value
3
CRM costs/ARPU
4
ARPU
MEDIUM-LOW 0.4x Average
VALUE
CUSTOMERS 5 Customer Value
6
Value Band 1 Value Band 2 Value Band 3 Value Band 4 Value Band 5
Campaign management : up-sell/cross-sell
SMS
Handset
Green 6%
Significant drop in traffic during
Low Churn Risk (70% CB)
recent months
Medium Churn Risk (20%) Yellow 35%
Abnormal traffic pattern,
The likelihood to churn is estimated on a monthly basis for each VF customer through
data mining. Customers flagged in RED are five times more likely to churn than an
average customer: they are treated accordingly.
High value retention focus: Vodafone One loyalty
program
Objective is to strengthen customer motivation with a reward based mechanism, with direct link
with his/her traffic spending
Rewards
Vodafone One churn impact
Mobile
Information Infotainment
Technology (IT)
Forces on the business
Customers
Regulatory Technology
Competitors
Our focus
Delight customers Outstanding customer service at all touch points
Deliver superior voice and data propositions by segment
Achieve brand preference
Build best global workforce Develop capability and competency of our employees