Kuntal Panja (106)

Himanshu Kamat (22)

Hitesh Mahansaria (24)

Sahil Gupta (88)

Prachi Bansal (84)

In 1992, Hutchison Whampoa and its Indian business partner Max Group, established a company that in 1994 was awarded a license to provide mobile telecommunications services in Bombay and launched commercial services as Hutchison Max in November 1995

1992: Hutchison Whampoa and Max Group establish Hutchison Max

2000: Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujarat markets through Essar acquisition

2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai

A 'You and I' print advertisement of Hutch featuring Cheeka (dog)

2003: Acquired AirCel Digilink (ADIL

ESSAR Subsidiary) which circles

operated in Rajastan, Uttar Pradesh East and Haryana telecom and rebranded it 'Hutch'.

2004: Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh (West) and West Bengal.

2005: Acquired BPL Mobile operations in 3 circles. This left BPL with operations only in Mumbai, where it still operates under the brand 'Loop Mobile'.

2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billionThe company is renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.

2008: Vodafone acquires the licences in remaining 7 circles and has starts its pending operations in Madhya Pradesh circle, as well as in Orissa, Assam, North East and Bihar

On March 31, 2011, Vodafone Group Plc announced that it would buy an additional 33% stake in its Indian joint venture for $5 billion after partner Essar Group exercised an option to sell the holding in the mobilephone operator. The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be owned by Indian investors, in compliance with Indian law.

It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel , and Third largest in terms of customers. Vodafone had about 134.5 million customers as of February 2011

Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology. Vodafone Essar will launch 3G services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks

Revenue stimulation and cost reduction

Innovate and deliver on our customers total communication needs Deliver strong growth in emerging markets

Actively manage our portfolio to maximize returns Align capital structure and shareholder returns policy to strategy

PEST ANALYSISEXTERNAL ANALYSIS

Political
Regulations Political Opposition to participation by the private players Govt support to promote FDI in Telecom sector Banning of Phone Use in Certain Circumstances

Technology
 Equipped with New Technology  Rapid Industrial growth rate induced by emerging technologies.  Strong Fibre Optic Network  Utilization of E- Commerce facilities  Efficient Customer Care Services

Economic
Cost of calls Being Driven Down Worldwide Recession- Both Boon & Bane Middle class consumer base growing due to accelerated economic growth Untapped markets in emerging Economies New Opportunity

Socio-Cultural
 High End Phones becoming status symbol  Due to Intimate family bonding in Indian Culture, there is need to remain connected Tech Savvy Generation

There are a few numbers of large firms worldwide that competes for the market share; however are very competitive and because of a relative slow market growth in this industry the firms fight over the market shares.

There is also a low level of switching costs to the consumer and a low level of product differentiation

Thus, in the mobile network industry the threat of rivalry is fairly high.

Substitute
The threat of substitutes for voice and data communication over the traditional network is moderate.

The low costs of computer calling could potentially take over most long distance calling.

The more local calls and business calls would be more secure for the mobile market, although cell phones with the ability to use the internet to make calls are being made available and will soon take a considerable market share of calls made.

The threat of substitutes can be reasonable high in this industry.

The threat of buyers in this industry can be considered fairly low.

The individual buyer has no impact on the price of the products offered.

1.

In the cell phone part of the business the suppliers of the phones can have a big impact on the price of products and the condition of the deal they make with the provider. One clear example of this is when apple launched their new I-phone. They made an exclusive contract with AT&T so they had the exclusive right to be the service provider to their phone in America. So the supplier s power in this industry is high.

2.

3.

1.

The threat of entry is highly influenced by the economy of scale of the existing companies. The large well established companies that have a strong foothold in the market and a known brand name would make entry for a new company costly.

2.

BCG MATRIX
Stars
Voice GSM Service EDGE Service

?
VPN Data Cards Telemetry and Security Solutions 3 G Services

Cows Bundled Phones

Dogs Bulk and Interactive messaging Integrated wire line communication

LOW

HIGH

LOW

ANSOFFs MATRIX
Product Development Business Solutions Mkt. Peneteration 3G Data Cards Mkt. Development Exclusive Mobile Content

Diversification Bundled Phones

NEW

NEW PRESENT

Strategic Group Analysis

Broad
Airtel

PRODUCT RANGE

Reliance
BSNL, MTNL

Vodafone

Narrow

Other

IDEA

TATA

VIRGIN

NATIONAL

GLOBAL

GEOGRAPHICAL SCOPE

Vodafone regularly conducts Brand Health Tracking, which is designed to measure the brand performance against a number of key metrics and generate insights to assist the management of the Vodafone brand across all Vodafone branded operating companies. This tracking has been in place since 2002 and provides continuous historical data against key metrics in all 19 Vodafone branded operating markets. An external accredited and independent market research organization provides global coordination of the methodology, reporting and analysis. As a result of these activities the Vodafone brand is now ranked number 11 in the Brand Top 100 global brands list recently published in The Financial Times, with an estimated value attributable to the brand of 18.7 billion. Vodafone has continued to focus on delivering a superior, consistent and differentiated customer experience through its brand and communications activities.

Vodafone tops UK Valuable brand index

The Brand Finance Mobile 100 is an index of the world s most valuable mobile telecoms brands in the world published annually in association with Total Telecom
1.

2.

In the third year of publication Vodafone remains the top ranked brand with a value of $30.7 billion (up from $28.9 billion) and a Brand Rating of AAA+ (up from AAA) The increase in brand values in China and the US illustrate continued rapid economic growth in China and the growing economic recovery in the US

BRANDED CUSTOMER EXPERIENCE

MARKETING FRAMEWORK BRAND COMMUNICATIONS BRAND VALUES & ENGAGEMENT

A brand is what a brand does.

Arun Sarin, CEO Vodafone

The most valuable brands in the world are those where the customer knows theyre going to get a good experience
Sir John Bond, Chairman, Vodafone

WFA/ISA - Global Advertiser Conference

Mumbai, March 5, 2008 27

Group s Vision - to be the communications leader in an increasingly connected world .

Develop competitive local market brand positioning, with local brand positioning projects now implemented in 19 markets.

Advertising is largely done on TV, on billboards, in magazines and in other media outlets which reaches large audiences and spreads the brand image and the message very effectively.

Irfan Khan Advertisement

To enable the consistent use of the Vodafone brand, a set of guidelines has been developed in areas such as advertising, retail, online and merchandising, all including detail on how to make the brand work across every touch point. Since June 2006, eight markets have implemented the global retail design. Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy.

The migration from Hutch to Vodafone was one of the fastest and most comprehensive brand transitions in the history of the Group, with
400,000 multi brand outlets, over 350 Vodafone stores, over 1,000 mini stores, over 35 mobile stores and over 3,000 touch points reframed in two months,

with 60% completed within 48 hours of the launch.

Vodafone live portal that is header banners, channel sponsorship and sponsorship of free MMS alerts.

WFA/ISA - Global Advertiser Conference

Mumbai, March 5, 2008 42

An innovative Handset based Self Care application, that will allow our customers to access real time self care services directly from their phones.

A capability that enables tailored on device self service and CRM transactions

Fitting into our Strategy

Differentiation strategy:
` ` `

Global strategy: Cost Saving in Europe Revenue Growth in Emerging Markets

It will radically improve the quality of users Interactions with their products and services, making things simpler and more easily accessible

Relevant Reliable Easy to use Innovative

Positioning strategy: To make the most of customers time!

Brand as a central organising principle that drives performance, culture, experience and action Treat engagement as a journey, and a source of competitive differentiation Involve Leaders! Make the vision actionable include everyone who represents your brand Link to recognition and reward Measure your progress

` `

` `

Where we play
Market Definition: Integrated Communications Provider Positioning Target: Progressives Customer Insight: I live for this life and time is precious

What we do
Differentiation: A Great Customer Experience Functional Benefits: Useful, Seamless, Stimulating Emotional Benefit: Inspired (to use my time)

Who we are
Personality: The Pioneer Values: Red, Rock solid & Restless Physique: Red within a technicolor world

Our rallying cry

Ambition: Communications leader Purpose: To help people make the most of their time in life Customer expression: Make the most of now

A static brand can quickly become irrelevant. But brand innovation also has its risks. Brand innovation can take place internally through research & development or it could occur externally by understanding the opportunities that are being created due to increased competition and an informed consumer. A brand has to continually scout for opportunities to better itself and its perception among the consumers of its product.

Brand opportunity can be understanding consumer behavior.

gauged

by

One needs to understand what is pulling a consumer away from your brand and what feature about your brand is underperforming to have the same effect pulling the consumer away from your brand.

10% 23% 40% Value for Money Coverage and Quality Switching costs 7% 20% Schemes and Benefits Others

The reasons why people are with their current telecom service providers

Coverage & Voice Clarity Pricing Others

Customer Service Quality Schemes

7% 13%

10%

17% 53%

Shows which features of Vodafone brand promise are underperforming to create a negative perception of the brand.

From the observations, an understanding of the opportunities that Vodafone can capitalize on is created. Vodafone is a company which focuses on customer service through its brand communications in the form of Power to You and Happy to Help . It has to ramp up its customer service and it s value propositions to make the brand more effective in the market. Vodafone should try to focus on promises it has made to its customers and faltering on these would be detrimental to its survival. Pricing has to be made innovative and should be centered on creating value for the customer through product bundling and pioneering tariff styles.

Brand Satisfaction
 Brand Satisfaction is established only by the experiences that customers have, across each of the brand s touch-points, over the course of time.  A minority in the Excellent category and a one-third majority in the Not Satisfactory category lead us to conclude that more of Vodafone s customer base is disgruntled with it than delighted.
Excellent Good Satisfactory 7% 27% Not Satisfactory

36%

30%
52

Brand Personality
 It is a comprehensive concept, which includes all the tangible and intangible traits of a brand, say beliefs, values, prejudices, features, interests, and heritage. A brand personality makes it unique.

Brand personality is seen as a valuable factor in increasing brand engagement and brand attachment, in much the same way as people relate and bind to other people. 27% 23% 10% 40% Strong Network Customer Service Innovative Schemes Value Added Services
53

Brand Loyalty
 Brand consists loyalty, of in a marketing, consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive No majority saying 63% they of will 63% 37% Yes

behaviors such as word of mouth advocacy.  With a

respondents

recommend Vodafone to anyone else, it is a good statistic

54

Brand Hierarchyarchy

Resonance High level of repeat purchase Regular Engagement High on Community

Judgment Quality according to Price Innovative and competitive

Feelings
Excitement

Performance Medium Priced Service Effectiveness and Efficiency

Imagery User Profile All Classes All Age Group and Gender Strong Brand Reliability

Salience Varied Product Portfolio Very High Awareness High Recall

Vodafone, Nokia among most recalled brands during the IPL. Among the top 10 most recalled advertisements, Vodafone Zoozoo ads (Go Green and Jokes) rank highest, with 43 per cent unaided recall.(According to Afaqs ! study)

Vodafone has maintained its market share in urban and semi-urban areas and can have opportunity to compete for rural share. Vodafone has been able to maintain arguably the highest brand awareness and recall ratings in its industry segment. They have capitalised on zoo zoo merchandise in association with Shoppers stop but can do better on this front.

A suggestion could be releasing a weekly comic strip on zoo zoo in national dailies through print ad mode and involving audiences directly with the story line in competition format. Mobile games and Apps can be developed with the zoo zoo as protagonist. In game advertising is a medium that can be explored.