Vodafone Analysis: Marketing Mix, SWOT and PESTLE
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OBJECTIVES OF THE BRAND AUDITING
- To know the these days market scenario of Vodafone Cellular Services w.r.t. not only the Indian, on the other share extremely for the field - wide Cellular Services.
- To know the Marketing-Mix of the Vodafone Services.
- To find elsewhere the customer response for the Vodafone Services.
BACKGROUND OF THE CELLULAR Utility INDUSTRY
In November of 2006, India reached 100 million GSM subscribers. This places it at 3rd, persist China and Russia, in national subscribers to GSM. All told, there are 140 million cellular subscribers in India. With a total population of 1.1 billion, this system that 12.7% of the population uses cell phones. Compare this to China, with 449 million subscribers and a population of 1.3 billion, with 34.5% saturation. Both countries have cellular concentrations in their major cities, with some spotty coverage in outskirt villages. If you contemplate at this graphic, you'll see that the major cities of Delhi, Mumbai, Kolkata, and Chennai cause up about 20.7% of cellular usage. Not only does the native land have margin for growth, on the other artisan the government's rationale is to have 500 million subscribers by 2010. GSM will provide the course of action for this duration as will expansion of companies enjoy Texas Instruments. With that in meaning, finding an entrance into the Indian cellular market can be difficult. So, many of the companies have operations in other countries and are not a pure play.
Hutchison Telecom Int Ltd (HTX) is a multinational society based in Hong Kong, whose Indian manner, Hutchison Essar, has an impressive 25% market knowledge in Delhi, Mumbai, Kolkata, and Chennai. They extremely have an impressive presence in the smaller cities and more rural areas of India. Their business in India is just a parcel of the puzzle, as Hutchison Telecom has operations in a number of Asian markets. HTX isn't the meaning to enter into this market, as they are looking to sell off the Hutchison Essar division, for 14 billion USD. Maxis Communications BHD [5051.KU], U.S. private-equity kingdom Texas Pacific Quota [TPG.XX], Vodafone Plenty PLC (VOD), India's Reliance Communications Ltd. [532712.BY], and India's Essar Quota are among those interested in buying the native land. Whoever buys this division will ease from the strong market presence, GMS capability and duration practicable. A kingdom with a mini footprint in the cellular market is Mahanagar Ring Nigam Ltd (MTE), which trades in ADRs on the NYSE. Unfortunately, they have a petty market presence (2.3 million subscribers) and offer cellular servicing only in Delhi and Mumbai. Land-line call services bring in the majority of their revenue. Revenue from mobile services only brought in 10% of their revenue in the persist fiscal year. Between March and November, their cellular subscribers have grown 21%. The cellular market in India stands to facilitate their duty and if they can increase the scope of their internet services, the credible of that market will extremely facilitate them.
COMPETITIVE Subject OF CELLULAR SERVICES IN INDIA
Airtel is ranked number one in terms of building brand equity. Vodafone is ranked second in maintaining reliability, knowledge, esteem. The brisk competitor of Vodafone is Airtel followed by Sense, Tata, Reliance and BSNL. Brand equity can be managed by stressing on brand loyalty, creating brand responses .i.e. how customers respond to the brand marketing career, focusing on the customers personal impression and probation, by increasing brand quality .i.e. services that are been provided by Vodafone ,brand credibility .i.e. the kingdom should have a beneficial reputation in the minds of the customers. Airtel is in a superior way than Vodafone in terms of Brand Reputation bill. Vodafone is having highest Brand equity valuation in the Indian Cellular Services Industries.
This kingdom was established in 1995 by Sunil Mittal as a Universal Limited Gathering, Airtel is the largest telecom overhaul provider in Indian telecom sector. With market capitalization of over Rs. 1,360 billion, Airtel has 31% of total market knowledge of GSM servicing providers. Providing GSM services in all the 23 circles, Airtel was the first private player in telecom sector to connect all states of India. Extremely, Airtel is the first mobile overhaul provider to introduce the generation prepaid services and electronic recharge systems. After establishing itself in the domestic market, Airtel is these days spreading its wings in US by providing its mobile overhaul under the reputation 'call home' to the NRIs. Having achieved huge success in mobile services- postpaid and prepaid- Airtel has at once entered fixed-line telephony providing broadband services in 92 cities across India. The society has an optical fiber network of 35,016 km and a customer mould of 35,440,406 GSM mobile and 1,819,083 broadband subscribers.
The society was formed in 1984 as a subsidiary of Racal Electronics. By 1991, it was a separate class, known by its present reputation, and with its first controlled overseas development in Malta. A combination of acquisitions and partnerships with other networks has made Vodafone the world's largest mobile telecommunications society, with equity interests in 26 countries across five continents and partnerships in another 14. Vodafone is teaching itself quickly to have a deeply ingrained customer understanding in line to cause it nimble while developing the scale, scope, and potency of a large multinational. The focus on customer understanding and segmentation knowledge is highly salient to insure that Vodafone doesn't get sluggish and is able to deliver on customer needs rapidly. Vodafone is the world's largest mobile telecommunications community, employing over 65,000 staff and with over 130 million customers. The business operates in 25countries worldwide across 5 continents &40 partner network with200 million customer worldwide. Vodafone is a public limited convention with listings on the London and Virgin York stock exchanges. Global recognition of the Vodafone brand is growing as the gathering rolls elsewhere its identity into modern markets. On the other share, it retains limited names and imagery in markets where this is authentic to maintaining the trust of customers. To relieve promote its image worldwide, Vodafone uses leading sports stars from high profile global sports, including David Beckham and Michael Schumacher. Basically our objectives were to find elsewhere the behaviors of the consumers towards the Quality of the product.
- After the cost of the product.
- After the acceptable presentation of the product which includes the utility.
If the consumer is after or comes for particular product and why, either by rationale of of effective advertisement on the media enjoy television or info papers or other means of advertisement. Vodafone Essar in India is a subsidiary of Vodafone quota & commenced transaction in 1994 when its predecessor Hutchison telecom acquired cellular licenses for Mumbai. These days it has operations in 16 circles covering India's mobile customer mould with 34.1 million customers. Vodafone Essar under hutch brand has named the most respected telecom society best mobile servicing in native land. They are most effective &creative advertiser of the year. Vodafone has partner with Essar plenty as its principal joint venture partner for Indian market. Vodafone launched there brand across in India on 21st September 2007 Essar plenty has diversified Office Kingdom with governance in manufacturing as well as utility sector.
- Shipping & logistics
"We will be the communications leader in an increasingly connected area" Vodafone Quota Plc is the world's influential mobile telecommunications kingdom, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. The Group's mobile subsidiaries manipulate under the brand term 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless. During the persist two financial years, the Quota has extremely entered into arrangements with network operators in countries where the Parcel does not hold an equity stake. Under the terms of these Partner Network Agreements, the Quota and its partner networks co-operate in the development and marketing of global services under dual brand logos. At 31 December 2008, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that hour, the Plenty had 289 million customers, excluding paging customers, calculated on a proportionate target in accordance with the Company's percentage polity in these ventures. The Company's ordinary shares are listed on the London Stock Interchange and the Company's American Depositary Shares ('ADSs') are listed on the Virgin York Stock Interchange. The Gathering had a total market capitalization of on all sides of £74 billion at 31 December 2008. Vodafone Portion Plc is a regular limited society incorporated in England under registered number 1833679. Its registered office is Vodafone Habitat, The Connection, Newbury, and Berkshire, RG14 2FN, England. Vodafone is the world's largest provider of voice and string letter services to consumers and enterprise customers. The society employs about 66,000 community on all sides of the existence. The native land headquarter is situated in Berkshire, UK. Vodafone operates through single reportable business segment: servicing of communications services and products. At the speck of March 2007, the native land had 206 million customers worldwide. (Vodafone, 2007)
VODAFONE'S STRATEGIC OBJECTIVES
- Revenue stimulation and cost reduction in Europe
- Innovate and deliver on our customers' total memo needs
- Deliver strong activity in emerging markets
- Actively manage our portfolio to maximize returns Align capital structure and shareholder returns policy to strategy Key issues and problems Key issues and problems for Vodafone insert how the kingdom manages to coordinate its growth and to maintain its competitive servicing in the dramatically changing market area of the dynamic telecommunication sector.
BRAND ELEMENTS OF VODAFONE
VODAFONE'S BRAND MANTRA
Vodafone's internal brand mantra is simple and memorable. It stands for Prize, Reliability and Innovation. It is referred to throughout all business activities across the existence.
BRAND Bill & BRAND PERSONALITY OF VODAFONE
A series of virgin corporate values and four desired brand personality traits for Vodafone were identified:
To instill the contemporary brand personality traits within the attitudes of employees at Vodafone, NKD chose a teaching pathway that involved hands-on "experiential learning" using a range of sensory techniques. At each learning interval, employees were immersed in a friendly, themed existence which exuded the virgin Vodafone brand personality. NKD focused on three core programmers to reinforce the modern kingdom branding. A series of live events called Winning Together was used to inspire the company's 400 retail employees and equip them with world-class sales skills. This has by target of become the induction program for all modern retail employees. All shop managers and limited area managers attended a two-day session called Salient Together, which provided leadership and governance skills designed to be applied back in the workplace. Staying Together was a live subject of key community processes, transforming them - where necessary - to reflect the modern retail promise, brand personality and society culture.
VODAFONE'S PERSONALITY CAMPAIGN
- Not own able
- Not sustainable
- Vodafone's brand essence is:
- Red: For the prize and spirit.
- Rock Solid: dependable and empathetic
- Restless: always challenging to improve and career funny.
The competitive utility of Vodafone Services was that, that it is equally strong as Mobil ink on the other share at an affordable bill. This function possesses some kind of uniqueness which the other brand does not possess. Which differences to promote Not all brand differences are salient or worth-while not every difference makes skilled differences are primary or worth-while not every difference practise a beneficial differentiator. Each difference has the feasible to draw up society costs as well as customer benefits .therefore; the kingdom must carefully appropriate the ways in which it will distinguish itself from competitors. A difference is valuation establishing to the extents that it satisfies the later criteria:
Affordable: "Our services are a unique in many aspects; one of them is the valuation. We have offered our comment services at low cost than the other services. We are able to do this by target of of the virgin technology, equipments, and accessories. The contemporary techniques relieve us to minimize the valuation in the tea production."
- Influential: The difference delivers a highly valued facilitate to target buyer.
- Superior: The difference is superior to other ways that customers might receive the same facilitate.
- Communicable: The difference is communicable and visible to buyers.
- Preemptive: Competitors cannot easily draw up the difference.
- Profitable: The product must provide a authentic advice to consumer.
With a large market knowledge in India's major cities and presence elsewhere of the cities, they will be able to capitalize on India's cell call expansion. Hutchison has said that it will not select anything less than 14 billion and assorted think that the offers are creeping closer to 20 billion. Vodafone is a major player in this acquisition, on the other artisan they have some hurdles to overcome. Vodafone has levy forward a non-binding offer of 16.5 billion, on the other share Essar has a chance to match this, and with the backing of Reliance Communications, the ante could come close to 20 billion. Essar Group's these days 33% stake in the society gives them salient influence if Vodafone were to try to practise changes to the society post-acquisition. If Vodafone does really get Hutchison Essar, the knowledge valuation might drop pending the final purchase cost. I would wait and examine the outcome of this before making a move on Vodafone. If its shares drop when the offer is announced, I would pick them up. The street meaning Vodafone spent extremely all the more when it acquired Turkey's Telsim Mobil Telekomunikasyon, on the other share Vodafone quickly turned that native land on all sides of and it is in a all the more in a superior system position. Facing cellular saturation in the European market, Vodafone has found acceptable activity credible in emerging markets and acquiring Hutchison Essar would only strengthen its office as India's cellular market begins to explode.
VODAFONE'S MARKETING MIX -4P'S
A longer reputation 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 skilled or utility
- Place - where the acceptable or servicing can be bought
- Valuation - the valuation of a acceptable or utility
- Promotion - how customers are made aware of a skilled or overhaul.
A product with many different features provides customers with opportunities to chat, play games, dispatch and appropriate pictures, moderate ring tones, select string about travel and sporting events, hire billing string - and soon impression video clips and dispatch video messages. Vodafone live! Provides on-the-move string services.
- Vodafone UK operates over 300 of its own stores.
- It extremely sells through independent retailers e.g. Machine ring Warehouse.
- Customers are able to examine and practice products they are considering buying.
- Community are on labourer to ensure customers' needs are matched with the correct product and to explain the different options available.
- Vodafone wants to practise its services accessible to as assorted community as practicable: 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 reward plans are available as well as prepay options. Call users can top up their telephone on dossier.
- Vodafone UK gives NECTAR reward points for every £1 spent on calls, subject messages, picture messages and phone tones.
Vodafone works with icons such as David Beckham to communicate its brand values. Above the list Advertising on TV, on billboards, in magazines and in other media outlets reaches large audiences and spreads the brand image and the comment extremely effectively. This is known as above the borderline promotion. Below the dossier Stores have special offers, promotions and speck of sale posters to attract those inside the stores to purchase. Vodafone's stores, its products and its staff all project the brand image.
Vodafone actively develops skilled regular relations by sending press releases to national newspapers and magazines to explain contemporary products and ideas.
BRAND AND CUSTOMER COMMUNICATIONS
Among all the Brand most powerful brands ranking is Ranked 9th globally. Vodafone has continued to focus on delivering a superior, consistent and differentiated customer participation through its brand and communications activities. A virgin Marketing Framework has been developed and implemented across the office, which includes a contemporary vision of expanding the Group's category from mobile only to total communications "to be the communications leader in an increasingly connected existence". Brand and customer participation continues to implement Vodafone's promise of "helping customers cause the most of their interval". The brand utility has extremely developed a methodology to develop competitive limited market brand positioning, with limited brand positioning projects these days implemented in 12 markets. To enable the consistent practice of the Vodafone brand, a fix of guidelines has been developed in areas such as advertising, retail, online and merchandising, all including naked truth on how to cause the brand duty across every touch speck. By rationale of June 2006, eight markets have implemented the global retail base.
In September 2007, Vodafone welcomed India with the "Hutch is these days Vodafone" campaign. The migration from Hutch to Vodafone was one of the fastest and most comprehensive brand transitions in the novel of the Plenty, with 400,000 multi brand outlets, over 350 Vodafone stores, over 1,000 petty stores, over 35 mobile stores and over 3,000 touch points reframed in two months, with 60% completed within 48 hours of the regulate. Vodafone regularly conducts Brand Health Tracking, which is designed to measure the brand performance against a number of key metrics and practise insights to facilitate the polity of the Vodafone brand across all Vodafone branded operating companies. This tracking has been in place by rationale of 2002 and provides continuous historical list against key metrics in all 19 Vodafone branded operating markets. Each operating society manages a interpret that complies with the standards and methodology fix by Vodafone Plenty Insights. An external accredited and independent market trial aggregation provides global coordination of the methodology, reporting and subject. As a result of these activities the Vodafone brand is these days ranked number 11 in the Brand Top 100 global brands record, recently published in The Financial Times, with an estimated bill attributable to the brand of £18.7 billion. For the 2008 financial year, Vodafone brand preference among its own users reached 81.9%, up 2.0 percentage points on the previous financial year, and a performance level that is 1.0 percentage speck higher than its closest competitors. In addition, the brand control among non-users of the brand has increased in the 2008 financial year to 33.5%, 1.8 percentage points above its market knowledge.
- Overhaul usage
- Area of customer
- Duration of overhaul
- Geographical poser
Vodafone is adopting a multi segment approach. They are offering a series of differentiated products to their respective market.
- Habitat calling cards for the family of those professionals who used to business abroad.
- Rs. 10 recharge for mini users.
- Cheap SMS facilities for youth.
- Facilities for circle users.
Positioning -"Where you go network follows you."
- Hutch as a brand always tried to connect with consumers in simple honest & authentic transaction, while Vodafone is more young &fun brand. So consumers will scrutinize a shift reflecting a more vibrant brand.
- The pug & actor Irfan Khan will be retained for the brand promotion.
- They are talking about the exclusively of the network & services they are offering to customers.
- Mass media coverage
- Innovative distribution to reach customer
- Exclusive shops
- Hubs &spoke
- Associate distributor
- Customer function
- Shop &call centers
- Relieve desk
BRAND POSITIONING OF VODAFONE IN 1997-98 Brand Positioning of Vodafone currently
VODAFONE'S POSITIONING OPPORTUNITY
Differentiate the market using two vastness: 'service' and 'consumer mindset.' Telstra, as the traditional market leader, was perceived to have an audience comprising a conservative and older mindset. Its communications reinforced this perception. Optus with a servicing focus was increasingly becoming a conservative 'son of Telstra.'
BRAND EQUITY Probation OF VODAFONE
Vodafone stands 9th position among all over the world's brands in the terms of brand valuation. Points of Parity and Points of Difference of Vodafone & Airtel
Points of Parity
- Both the brands have same pricing strategies.
- Both the brands have same market segmentation.
Points of Difference
- Target customers of Vodafone are middle troop citizens whereas Airtel targets the elite and up market aggregation citizens.
- Airtel positions itself as a lifestyle brand whereas Vodafone positions itself as habitual man's brand.
SWOT Subject OF VODAFONE
- Diversified geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and to some amplitude the US
- Network infrastructure
- Influential presence in emerging markets such as India
- Slender focus of coercion of mobile on climate.
- Negative reimburse on assets (ROA) under perform key competitors liking AT&T, BT Portion,
- US business not nearly as strong as European/rest of the existence operations
- 80% of its duty is generated in Europe (see below for explanation)
- Improve accessibility to wide range of customers
- Focus on cost reductions improving returns
- Majority stake in Hutchison Essar in India
- Probation and development of modern mobile technologies
- Highly competitive market
- All the more lags extreme major competitors in the US
- Besides high penetration rates in key European markets
- European Union rule on cross-border cell telephone usage by customers
- Airtel is the biggest threat in India, it has maximum market participation in India.
- Meet the rising expectations of the brand loyal customers.
It's an controversy of native land at broad macro level &examines the kingdom under heading of political, economic, social& technological factors.
Political- governmental & legal issues affecting how gathering operates
- Banning of telephone in trustworthy circumstances
- Health issues
Economical - Factors influencing the purchasing force of customer &companies publish of capital.
- Valuation of 3G licenses
- Reward of telephone duration driven down.
- Worldwide recession.
- Third existence countries.
Social - Demographic & cultural aspects of existence witch influence customer needs & market bigness.
- Health subject.
- Demographic & social trends.
- Picture phones.
- Mobile Etiquette.
- Saturation site.
Technological - Modernization & innovativeness over a hour of generation influential to contemporary & contemporary technology. The cellular services has been started modern technologies enjoy following-
- UMTS (2.5G)
The VRIO Framework
Reward Rarity Imitability Aggregation
Yes No No Yes Competitive parity
Yes Yes No Yes
Yes Yes Yes Yes
One of Vodafone's key technologies and wealth is the strong network infrastructure that supports its operations. To be able to provide mobile services, a strong network infrastructure is fundamental for the society. Vodafone operates 2G networks, through GSM networks, in all its mobile operating subsidiaries, offering its customers services such as voice, subject messaging and basic string services. All the networks application GPRS or 2.5G as well, which enables wireless access with mobile devices to list networks prize the internet. Vodafone extremely controls 3G networks offering its customers mobile broadband record access services allowing list download speeds of up to 384 kilobits per second. 2006 launched High Rapidity Downlink Packet Access (HSDPA) technology shortens download times significantly with record transmission speeds of up to 3.6 megabits per second and makes the usage of mobile broadband services all the more more skilled for the customers. HSDPA is enabled in the existing 3G network with after software updates. (Vodafone, 2007) The strong network infrastructure is a primary resource and enables the native land to respond to the growing customer needs with high quality services these days and in the ultimate.
This salient resource is not a rarity in the wireless telecommunication industry and therefore it cannot be costly for the competitors to imitate. Many of the world's large mobile operators have the same access to the same technology as Vodafone and a governance over massive networks. Vodafone is extremely well organized to exploit the all-inclusive competitive practicable of the network infrastructure by providing the employees a productive and safe working nature with good-looking performance based incentives. This resource is an organizational compel and generates a competitive parity. Diversified revenue mould By acquisitions, stakes in companies, and partner networks Vodafone has strategically expanded its presence to consider the whole existence. The native land has equity interests in 25 countries. Vodafone's partner network arrangements extend to a further 38 countries. (Vodafone, 2007) Vodafone has significant mobile operations in countries such as Germany, Italy, Spain, UK, Egypt, Kenya, South Africa, Australia and Contemporary Zealand. In 2007 the largest geographic region was Germany with a contribution of 17.1% to the total revenue, followed by UK 16.3%, Spain 14.1%, Italy 13.5%, and other Europe 13.5%. Arcor and Pacific contributed 9%, Middle East, Africa and Asia 8.2%, and Eastern Europe the rest 9% of the revenues. (Datamonitor, 2007) Vodafone's global reach and geographically diversified revenue base is a leading resource for the native land.
This primary resource helps the kingdom to compensate its risks and losses. As diversified as Vodafone's revenue replica is it is a rarity within the wireless telecommunication industry. Vodafone's strategy is to actively plain their portfolio by investing into markets that offer a strong limited position. With strict financial investment criteria Vodafone maximizes its and its shareholders returns. (Vodafone, 2007) Vodafone's competitors would not face a bill disadvantage in trying to imitate this resource. It is more about the strategy that a society implements than about the financial resources. Vodafone is well organized to exploit the plentiful competitive feasible of this leading and infrequent resource. The Board's argument is to generate trustworthy that the company's employees are aware of Vodafone's strategic goals and mutual obligations. This resource is an organizational vigour and distinctive potency and generates a temporary competitive utility.
Influential market position
Vodafone is the world's primary mobile telecommunications society. Vodafone operates in Europe, the Middle East, Africa, Asia Pacific and the US by subsidiary undertakings, associated undertakings and investments. In countries with significant operations Vodafone's market shares are impressive; Germany 36%, Italy 33%, Spain 31%, UK 26%, South Africa 58%, US 25%, Egypt 48%, and Australia 18%. (Dossier monitor, 2007) A strong market share with the market leader position is an extremely influential and meagre resource which improves the company's brand image and gives it a solid foundation to enter contemporary credible markets. This resource is imperfectly imitable and the competitors would face a cost disadvantage in obtaining or developing it. Vodafone's market leader position is based on the liking and effort of the company's employees. The society is well organized to plain effectively its employees to reach their all-inclusive practicable and benefiting themselves and the native land. This resource is an organizational coercion and sustainable distinctive potency and generates a sustained competitive overhaul. Porter Five Forces Of Vodafone
The threat of rivalry in this business is impacted by the low number of big firms in the market. There are a sporadic numbers of large firms worldwide that competes for the market share; this lowers the threat of rivalry. The firms that are in the profession on the other artisan are besides competitive and by rationale of of a relative slow market activity in this industry the firms fight over the market shares that are elsewhere there and that increase the threat. There is extremely a low level of switching costs to the consumer and a low level of product differentiation and this further brings the threat level of rivalry up. So in the mobile network industry the threat of rivalry is fairly high.
The threat of substitutes for voice and list indication over the traditional network is interchange. Citizens calling over spread absent distances could instead of picking up a ring go to a personal computer and call through that. The low costs of personal computer calling could potentially hire over most spread absent distance calling. The more limited calls and business calls would be more secure for the mobile market, although cell phones with the faculty to manipulate the internet to assemble calls are activity made available and will soon receive a considerable market participation 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 coercion on the cost of the products offered.
Supplier's faculty in some aspects of this industry is high. In the cell ring stuff of the business the suppliers of the phones can have a big vigour on the valuation of products and the disagreement of the deal they generate with the provider. One unrestrained dispute of this is when apple launched their modern I-phone. They made an exclusive contract with AT&T so they had the exclusive genuine to be the utility provider to their call in America. So the supplier's force in this industry is high.
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 reputation would generate entry for a virgin gathering costly. Although there are some contemporary arrivals the larger firms governance the market and will levy coercion on any contemporary entries. The threat of contemporary entries is fairly low for the in a superior system companies. Vodafone and Linksys 3G/Wireless Router Opens Virgin Market and Demonstrates Strategic Collaboration Launched in Spain in September 2005, the Vodafone and Linksys 3G/Wireless Router is these days available in Australia, Austria, Germany, Greece, Ireland, Italy, the Netherlands, Contemporary Zealand, Portugal, Spain, South Africa, and the UK. It is the first solution of its kind to be widely available through established third-party distributors and resellers, supported by an spread absent customer utility infrastructure. The team believes it is at least 12 months ahead of competitors. Using Vodafone's Mobile Connect 3G/UMTS (Regular Mobile Telecommunications Means) list card in combination with the Linksys WRT54G3G Wireless-G Router, it is a "plug-and-go" sense that works wherever there is 3G/UMTS coverage (or the lower-bandwidth Universal Packet Radio Overhaul [GPRS]) and a influence function. The technology enables wireless networking for up to five users and access to additional devices, such as printers, via Ethernet or wireless connections. Access to e-mail, remote corporate networks, and the Internet operates at up to384 kbps over 3G/UMTS. The Vodafone and Linksys 3G/Wireless Router brings together two tried-and-tested technologies to draw up a sense that crosses traditional fixed/mobile boundaries, born of the growing user thirst for for fixed/mobile substitution and convergence.
Vodafone launches own-brand push email Vodafone has announced the first network-designed email utility from an operator - Vodafone Business Email. Alongside Vodafone Business Email, Vodafone will practise Blackberry Connect and Microsoft Windows Mobile-based devices and email utility available in the near forthcoming. These three modern services receive pride of place alongside the successful BlackBerry from Vodafone and Vodafone Mobile Connect services, giving customers in a superior system mobile email choice. BlackBerry Connect allows modern and existing Vodafone enterprise and SME customers, via BlackBerry Enterprise Server, to facilitate from proven and universal BlackBerry features, such as push email, attachment viewing and secure encryption on a broader range of handsets. The application extends the availability of mobile email and PIM across the troop without changes to hardware or the want for further IT planning. Alongside these contemporary email solutions, Vodafone will soon offer all Vodafone smart device customers access to enhanced customer utility ease.
PROMOTIONAL STRATEGY Probation
Brand Identity Improvement of Vodafone over a generation of generation
- At most beginning - only Product/Service
- Open Branding
- Branding started with strategic governance
- Came -up with Marketing Mix
- Brought IMC (Integrated Marketing Memo) with innovative promotional strategy
- These days Scenario of Vodafone
Vodafone works with icons such as David Beckham, Irfan khan to communicate its brand values. Advertising is exclusively done on TV, on billboards, in magazines and in other media outlets which reaches large audiences and spreads the brand image and the comment extremely effectively. Extremely Stores have special offers, promotions and speck of sale posters to attract those inside the stores to purchase. Vodafone actively develops beneficial habitual relations by sending press releases to national newspapers and magazines to explain contemporary products and ideas. Nothing has been as universal as cricket during cricket seasons in India. The modern ads of Vodafone, telecom provider in India, named 'ZooZoo' have got an exception to it. The ZooZoo ads have melted the millions of Indian hearts making it more regular than India Premier League (IPL - Twenty20 cricket).
In 2007, Vodafone acquired 67% stake in Hutchisson and re-branded Hutch telecom into Vodafone. Later is the chronicle told by the ads it of how Hutch's brand image transitioned to Vodafone's brand image while pulling along the consumer's perceptions and preference towards the Hutch brand.
The Hutch Brand - 'Wherever You Go Our Network Follows'
Hutch had a extremely strong brand personality. The slogan "Wherever you go our network follows', was closely tied up with the Hutch - Pug campaign. The Hutch network was personified as the adorable pug dog succeeding the owner, who is normally a besides cute descendant. Let's contemplate at these ads. After watching these above ads, one would definitely fall in prize with the brand. The ads had a extremely simple memo that was communicated through the dog with backdrop of a graceful song. The Hutch network was personified as the dog and the Hutch brand automatically drew the brand personality of duration adorable, cute. The dog was named Hutch dog and became extremely universal in India. The dog became the brand ambassador and a acceptable brand asset to Hutch. Hutch leveraged this popularity of the dog and used the dog in its websites and in all its communications. Hutch was able to practise a brisk connection with the citizens through this Hutch- Pug dog campaign and will this relationship sustain after its acquisition by Vodafone? The Vodafone Brand - 'Make the Most of Now' Vodafone ads are extremely extremely skilled. Though both Hutch and Vodafone ads are captivating, they are in different ways. When Vodafone acquires Hutch, will the Hutch's brand personality of growth cute fade elsewhere and become more funny and youthful?
Vodafone - India Plain
Vodafone spent on all sides of 50 million USD ( 250 Cores INR) for this brand transitioning. Vodafone besides well understood that Hutch dog represents the network and communicated the transform to Vodafone beautifully without losing the charm present in earlier Hutch ads. Succeeding, Vodafone continued to practice the Hutch dog in their commercials, on the other share, in different pathway. You might have noticed that the contemporary Vodafone ads liked girls than boys and have changed the song. All the more, these ads resembled Hutch ads closely. Vodafone differentiates itself from other telecom operators through its reward added services (VAS) and it wanted to educate the customers about it. Unfortunately, the hutch dog had its limitations and was fired from the commercials and Vodafone brought in traditional commercial with adults to stress on the VAS. These ads didn't petition all the more although communicated the memo besides well. The ads were no more sweet and cute although they had a wider appeal owing to the young interval in the ads and the intentional humor. On the other share just when everyone solution that these cute ads have grown into adults there come the savior - Zoo Zoo ads by O&M. They simply did the office of communicating the various VAS in a fascinating pathway.
I can claim they are simply the best. The Vodafone's services were personified as quirky and lively personalities named Zoo Zoo. The comical pathway of communicating the indication brought in the acceptable antique connection what Hutch earlier had with humanity. I can hear the whispering that the Hutch's ad are 'cute' again or all the more 'cuter'. Vodafone India understood what Hutch stood for and tried to connect to community in the same course of action. Vodafone could have forced its global request to Indian market on the other share, it didn't, rather it created a whole contemporary persona for itself in the Indian telecom market. This confirms that there are no global brands on the other artisan there is definitely global brand polity. Hats off to Vodafone are for career glocal (Global and limited) in their approach. I would claim the Hutch to Vodafone brand transitioning is one of the greatest brand transitions in this nature of brands. Vodafone is continuing to invest in the mobile advertising market .Vodafone already has an offer of advertising spaces aimed at advertisers and advertising agencies covering various formats on offer on the Vodafone live portal that is header banners, channel sponsorship and sponsorship of at liberty MMS alerts. Various brands have been contacted to announce via this virgin medium, which has beneficial interactive practicable and a extremely wide audience. Advertisers such as CGD, Nestlé and Worten, and agencies such as Zenith Suffrage media, in society with Creative Partner, and Media Contacts, have risen to this challenge and designed advertising campaigns expressly for this medium and created mobile websites for the brands they are promoting on the
Vodafone live portal.
Vodafone aims to strengthen its relationship with media agencies and advertisers to ensure that all players in the market are aware of mobile advertising solutions. The Vodafone Plenty already offers mobile advertising solutions in 19 countries on all sides of the field, confirming the growing importance of the mobile advertising business worldwide.
Vodafone's global sponsorship strategy has delivered a strong fix of results across all Vodafone markets. Central sponsorship agreements, including the UEFA Champions League and the term sponsorship of the Vodafone McLaren Mercedes F1 team, have supported multiple business objectives and enabled Vodafone to provide customers with differentiating brand and product experiences. The strong performance of the Vodafone McLaren Mercedes F1 team during the 2007 season enabled Vodafone to maintain a dominant presence in one of the world's most habitual annual sporting events. Vodafone successfully integrated the sponsorship into a wide variety of business activities including communications, events, content and the open of three bespoke handsets. In Vodafone's first year as a sponsor of the UEFA Champions League, Vodafone became recognized as a leading sponsor of the competition (Source: TNS Soccerscope, May 2007) and used this convention to showcase a variety of products and services in a step designed to assemble in a superior system affinity with football fans across all influential territories. In January 2008, Vodafone became a global partner of the Laureus Foundation, which tackles various social challenges worldwide through a program of sports related community manner initiatives. This agreement complements Vodafone's spread absent standing relationship with sport and aims to relieve Laureus to application sport as a catalyst for inspiring acceptable social moderate. To maintain a influential and strategic role for global sponsorship investments, Vodafone is continually reviewing the portfolio to maintain pace with business and customer needs. On this target, Vodafone has trustworthy to discontinue the UEFA Champions League sponsorship at the stop of the 2008/9 competition and increase emphasis in global music opportunities. Music's broad request and product relevance provides a host of virgin and exciting opportunities for the business and the Group's customers.
Number of directly owned stores 1,150 Vodafone directly owns and manages over 1,150 stores. These stores sell services to virgin customers, renew or upgrade services for existing customers, and in many cases extremely provide customer ease. A guideline store format, which was tested in 2006, was rolled elsewhere in 11 markets during the 2008 financial year. The store footprint is constantly reviewed in response to market conditions which resulted in, for disagreement, Vodafone opening a further 90 stores in Spain and 21 stores in Romania during the year. Additionally, all stores in India were re branded as Vodafone and over 40 stores were refurbished to the Group's guideline format. The Parcel besides has 6,500 Vodafone branded stores, which sell Vodafone products and services exclusively, by course of action of franchise and exclusive dealer arrangements. The internet is a key channel to promote and sell Vodafone's products and services and to provide customers with an easy, user friendly and accessible pathway to plain their Vodafone services and access relieve. As a result, a specific Parcel wide program is currently career rolled elsewhere across all controlled markets, in column to ensure Vodafone websites have asseverate of the art online capabilities and provide the customer with an excellent and consistent online participation. Additionally, in most operating companies, sales forces are in place to sell directly to business customers and some consumer segments.
Number of branded stores 6,500 The amplitude of indirect distribution varies between markets on the other artisan may embrace using third troop overhaul providers, independent dealers, distributors and retailers. The Quota hosts MVNOs in a number of markets. These are operators who purchase access to existing networks and resell that access to customers under a different brand term and proposition. Where appropriate, Vodafone seeks to enter mutually profitable relationships with MVNO partners as an additional route to market.
Vodafone's Campaign Strategy
Develop a personality-led campaign that would inject meaning into the Vodafone brand, break from the serious and rational category formula, and practise the Vodafone brand more primary and motivating to its modern target, 18 to 39-year-olds. The brand personality manifested itself via the character of 'Kramer' (from the TV series Seinfeld and played by Michael Richards) to appear in all television, radio, print and point-of-sale executions. Results were needed quickly and couldn't wait for Vodafone's brand personality to generate over hour. A character prize Kramer would give the Vodafone brand instant personality Brand Exploratory of Vodafone Questionnaire
1. Which cell phone function provider is the best?
41 of the sampled opined that Airtel was the best in the office while sense stood second at 29 Vodafone came third at 28. This indicated a at liberty shift towards Airtel, with Solution and Vodafone at neck and Neck.
2. What Cell ring servicing provider do you subscribe to?
Of the samples collected most community were subscribers of Airtel and Vodafone with 37 and 35 responses each. Solution was nest at 18 the rest were the others.
3. Why are you with your overhaul provider? What makes it special?
- Bill for mode
- Coverage & Quality
- Switching costs
- Schemes & Benefits
- Others __________
While most of the Vodafone users 17 selected switching costs, a meagre of them extremely indicated Valuation for mode 7 and Schemes and Benefits 5 respectively. Airtel users indicated reward for resources 20, and coverage and quality 7. This indicated that Vodafone customers were in it only by rationale of of the high switching costs associated with a switch in cell call operators.
4. What comes to meaning when you think about Vodafone
- Red & White Scheme
- Walk n Talk
- Zoo Zoo
- F1 & Louis Hamilton
- Happy to Advice
- Express Yourself
- Cause the most of these days
Most selected the pug at 96 while zoo zoo and the Red and white scheme brought in 56 and 54 ticks respectively. Express your self was the most wrongly ticked native land and the same can be attributed to the proximity of colour scheme that Airtel shares with Vodafone.
5. Which comes to meaning when you contemplate the succeeding
100 percent polled for the pug with Vodafone and only 72 associated Vodafone with the logo. Zoo Zoo
reminded 78 community of Vodafone.
6. What impedes Vodafone from activity the best Cell ring servicing provider
- Coverage & Voice clarity
- Customer Overhaul quality
Most community felt that Vodafone had customer handling issues. This would not go well with contemporary "Happy to Relieve" tagline. Vodafone's customer relationships have been the bone of contention for a spread absent interval.
7. Recommendations & Suggestions
A sporadic humanity recommended that Vodafone started with 3G related services and improve on their coverage. On the other artisan most suggestions were related to Customer servicing and other related complaints.
SUGGESTIONS FOR RE-POSITIONING VODAFONE:
It is perception in the imagination of the rationale customer. Positioning is the naked truth of designing companies offer and image so that it occupies a different place in target customers meaning. it involves in finding proper speck in the sense of target customer so that they think about the product and utility in the true and desired system. Vodafone's positioning in the sense of the customer should be unique, distinctive, and consistent, it should be influential to target needs .i.e. ease oriented and should be coherent with other brand signals. As Vodafone's customer servicing is pathetic they should concentrate on poser sense prompts and advice driven positioning by focusing on clarity. And customer utility though Vodafone gives elsewhere the indication happy to ease on the other share their customer overhaul is extremely pathetic. Their helpline number offers/schemes to customers on the other artisan does not connect them to customer facilitate manager. Vodafone has positioned itself as habitual man's brand. Vodafone is more young &fun brand. So consumers see a shift reflecting a more vibrant brand. Similarly Vodafone uses the pug, zoo-zoo & actor Irfan Khan will be retained for the brand promotion and these days along with it needs to concentrate on customer servicing and acceptable network coverage. It is leading that Vodafone updates its brand positioning .not only this it should besides follow it. Indication given by Vodafone is that they are happy to advice their customers on the other artisan its customer survives is defective and the network coverage is besides wick. Main Puzzle Statement: How can we revolutionize the wireless telecom industry
Strategic Option 1:
There is a plenty of buzz in the telecommunication market about 2G and 3G networks. It was the dream of the CEO of Vodafone to bring the 3G network into the hands of the American consumers a uncommon years back, on the other artisan Vodafone's partner in America did not thirst for to invest in the modern 3rd interval network. The virgin technologies that are elsewhere in the market these days can give Vodafone the opportunity to be in front of all the competition in the American market. What we propose that Vodafone enters the American market with a 6th interval call and telephone overhaul for cell phones. The type of ring is a telephone that not only works on the habitual network used to hour in America on the other artisan can extremely application the internet to practise calls, not only to other Vodafone customers on the other share to all networks. The technology is not contemporary and exists today in America, on the other share not in the mobile ring market. Vonage and Comcast offer their customers a ring overhaul based over digital networks and not over principles phone lines.
The course of action Vodafone is going to differ themselves from the existing firms is to offer this to cell phones. The means that this system of dispute works is that instead of the cell phone using the public network to connect the calls it makes, it uses any wireless internet access that it can connect to. This means that calling humanity from you cell is virtually unrestrained and you would only pay a monthly charge on you cell telephone to Vodafone. If you cannot find a wireless network to connect to, the ring can application a regular telephone network as a backup. With a strategy to enter and appropriate a market share in America prize this one, you do not have to cause large fixed investments in the hardware. Instead you have a 6th hour ring that can be operated on both the senile networks and on digital networks. To get these phones and plans elsewhere to a large customer quota, Vodafone should concentrate on the big cities first, making a encrypted wireless network available in the metropolis that only their phones can access. This pathway the gathering can scrutinize how the customers liking duration connected to a faster and in a superior pathway network with a more contemporary ring then available in the American market. The virgin hype in the American cell ring market is the Iphone; this call is looked into one carrier and can over the carrier's network connect to the internet. The call is locked to one carrier (AT&T) on the other share can be hacked and used by others. The Vodafone would be configured so that you cannot hack it by the software allowing the consumer to connect and call for unrestrained to any call in the field by simply not connecting that person to the Vodafone network. The call could be at liberty for all providers to sell on the other share some functions on the telephone enjoy IP letter would be useless. By rationale of this is one of the biggest selling points for the product you basically lock the customer in to your carrier. To be able to practise mode of you customers you fix a fixed monthly valuation for the means and no extra charges for calling community over the wireless networks, on the other artisan guideline charges for regular charges made from the phones.
Strategic Option 2:
It is difficult to try to develop a strategic option to revolutionize the telecom industry for a native land that has already been involved in shaping the industry for assorted years. Option 2 will differ from Option 1 in multiple areas. For option 2 we propose that Vodafone enters the American market place as soon as feasible as Vodafone the native land instead of through subsidiaries. Vodafone has always focused their marketing efforts expressly through sponsorships of large sports teams such as Manchester United Football Club and McLaren Mercedes Benz Formula 1 team along with hundreds of others. We believe that Vodafone can draw up assorted of the elements that European customers have been satisfied with directly over to the American market which are currently lagging persist by almost five years compared to Asia and almost two years compared to Europe. Providing 3G function in the United States is needed and we believe that Vodafone could successfully gain market labourer in the United States. Vodafone has besides high brand equity worldwide and we believe that it is interval to fix a receive on the US market.
RECOMMENDATION & IMPLEMENTATION:
It is easy to scrutinize similarities between Vodafone and Sir Richard Branson's Virgin Kingdom, other than the naked truth that the logos see much the same. They are both UK based companies that are extremely dynamic and the society cultures are all the more the same. Both companies are not afraid to be innovative and to move in contemporary directions. We therefore recommend that Vodafone choose to move forwards with Option 1. This option involves the most risk, on the other share we firmly believe that the industry is moving more and more towards telecommunication via wireless broadband connections. Just receive a contemplate at the Apple iPhone which with just one push on the touch screen switches from WI-FI to pure telephone mode. The iPhone does not provide IP-voice indication all the more on the other artisan we firmly believe that it is just a phase of interval before it and others will. Implementing Option 1 we recommend that Vodafone fix strategic alliances with persuaded US based companies to be able to provide WI-FI hotspots that the handheld devices connect to.
Extremely fix alliances or strengthen alliances with the telephone manufacturers. We recognize that there are some privacy issues with Option 1 that needs to be solved, on the other artisan this could not be done overnight and those issues will manipulate to the Vodafone's competitors, such as AT&T as well. We choose to recommend Option 1 by target of we have identified an opportunity for Vodafone to become the industry innovator and leader besides in the United States over interval. And we believe that it is feasible due to the naked truth that the society is dynamic and it is not afraid to explore modern opportunities. The same level of brand equity can be achieved in the US as in Europe and Asia. Suggestions for Competitive Response Vodafone must these days seek to integrate its WLAN and UMTS services, by rationale of a portfolio that touts separate string card products, separate pricing plans and separate billing processes for assorted technologies is no longer considered competitive. As a first transaction, Vodafone should fold WiFi usage into its "Unlimited" Mobile Connect 1GB offer for 3G/GPRS. Vodafone should offer ten Business E-mail handsets of its own; the existing two-device BlackBerry range looks a petty thin and unappealing by comparison.
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