Vodafone Services Project | Telecommunications | Advertising

MARKETING STRATEGIES OF VODAFONE 

                                           SERVICE   MARKETING   
                                                 SUBMITTED TO: PROF A SRIKANTH    

 

 

  Submitted   by :                        Aditi   Maheshwari     09BSHYD0033                                                Anshuman   Goel         09BSHYD0139                                                    Mudit   Mathur            09BSHYD1025                                               Mansi                         09BSHYD0433                                               Neha   Gupta                09BSHYD0498                                                        
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.................................................................................................................................................................................  5....................................................................................................................  4............................................6 PROCESSES ............1 PRODUCT  .................................................................. 7  CRM ................................................................................................................................ 4  SITUATIONAL ANALYSIS ........ 12  9.............................................................................................................5 PEOPLE ................................................................................................................................... 13  9.......................................... 9  SEGMENTATION ..............................................................  MARKETING MIX ‐ 7Ps FOR VODAFONE ................................................ 17        2    ...Table of Contents  1................................................................................................  12  9..........................  3............ 8  POSITIONING .........................  8........................................  6  BRAND ELEMENTS ........................  5  MARKET OPPORTUNITY .................................................................................................................................... 10  8........................1 BCG MATRIX ....................................................................................................................................  OBJECTIVES ..............................  11................... 16  REFERENCES .....................2 ANSOFF’s PRODUCT‐MARKET EXPANSION GRID ......... 15  9.....................  2... 13  9....................  7................................. 3  INTRODUCTION .................................. 14  9............................4 PROMOTIONS  ........................................................................................................................................................................  6.........................................................................................................2 PRICE .......................... 10  8.............................................................................................3 PLACE ............................ 14  9...................................7  10..........................................................................................................    PHYSICAL EVIDENCE .....................................................................................................................................................................................................................................................  11  9......  15  CONCLUSION .......................................................................................................................................................

  3    . OBJECTIVES    • • •   To analyze the marketing strategies of the service provider – Vodafone To see the positioning and segmentation done by Vodafone.1. To determine the marketing mix of Vodafone.

it retains local names and imagery in markets where this is essential to maintaining the trust of customers. In May 2007. To help promote its image worldwide. Vodafone uses leading sports AND stars from high profile global sports. As the rebranding campaign begun they started by changing the taglines communicating the change from hutch to Vodafone. However. 11617. including David Beckham and Michael Schumacher. The taglines were ‘change is 4    . Vodafone is a public limited company with listings on the London and New York stock exchanges. It was formerly known as Hutchison Essar.04 million customers. thereby making it Vodafone Essar. The company won 3G licenses in 9 of the 22 telecom zones for Rs. The business operates in 26 countries worldwide. Vodafone Essar.86 crore and plans to launch its 3G services in JanMarch 2011. This was an easy way to enter into India as hutch essar already had a strong brand image in Indian telecom market. employing over 65. FROM HUTCH TO VODAFONE Vodafone essar was formed out of an acquisition deal of Vodafone and hutch essar. and hence Hutch was successfully rebranded as Vodafone.000 staff and with over 130 million customers. Global recognition of the Vodafone brand is growing as the company rolls out its identity into new markets. INTRODUCTION       Vodafone is the world’s largest mobile telecommunications community.2. The company now has operations across the country with over 118. and 33% stakes owned by Essar Group. usually referred to as Vodafone is the Indian subsidiary of Vodafone Group with 67% stakes held by UK based Vodafone Group Plc. Vodafone acquired the 67% stake held by Li Ka Shing in Hutchison-Essar.

Vodafone Essar is the Indian subsidiary of Vodafone Group 67% and Essar Group 33%. and the main feature of their campaign was the Zoo Zoo characters that were used to promote the value added services by Vodafone and became famous as soon as they were launched.20%and it faces stiff competition from several players in the market like Airtel. 5    . the level of competition that Vodafone has to face is high. 3. and third largest in terms of customers.75G services based on 900 MHz and 1800 MHz digital GSM technology. The rural mobile penetration is just 19% compared to 103 percent in urban India (around 20% is estimated to have dual Sim cards). Reliance. BSNL. Therefore. offering voice and data services in 23 of the country's 23 license areas. They changed from ‘where u go our network follows’ to ‘Make The most of Now’ They also carried out a massive advertising campaign to rebrand themselves.04 million subscribers all over India Competitors Vodafone’s market share is 23. formerly known as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based in Mumbai. Tata Indicom. in the month of October it has 118. Context Tele-density in India has reached nearly 51% and the industry is growing at a CAGR with 22%. “hutch is now Vodafone”. Company Vodafone Essar. Idea. Virgin Mobile and new entrants like DOCOMO. Vodafone Essar provides 2. It is second largest telecom service provider as per the market share. SITUATIONAL ANALYSIS  Customers Vodafone operates in 23 telecom circles in India in 2G segment and it is about to enter 9 telecom circles in 3G segments. As per the report of Cellular Operators Association of India. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel. The intense competition has led the players to target lower segments and entry into rural areas.good’.

tagline. The next phase of growth is thereby likely to be driven by the lower income group which form the Bottom of the Pyramid. good quality of service and constant innovations. 6    . The service providers will have to revamp their business models by which they could make good profits even at low ARPUs. much of this growth is to be driven by the lower middle income group and the rural population. MARKET OPPORTUNITY    The Indian telecom market is the fastest growing market in the world and is expected to soon takeover US as the second largest market. stores and schemes.4. the urban middle class markets have more or less saturated. With the penetration of telecom in the urban markets.     Vodafone logo.g. For e.: One paisa per second billing. Vodafone has already taken a step forward towards targeting these consumers who are at the bottom of the pyramid with their bonus cards and advertisements. The key success factor in the telecom sector would be to concentrate on providing the most competitive tariff rates.

creative PACKAGING Imprinting the same logo. Animated and Humanized.5. Recognizable and loved. BRAND ELEMENTS    NAME BRAND NAME URL LOGO/SYMBOL BRAND ELEMENTVODAFONE Vodafone www. colorful logos on packaging of sim cards. top up recharge coupons. Recognizable. 7    . Create imagery for value added services. handsets. TAGLINES   Make the most of now Consistent and uniform across the world. Bright red color giving a lively image CHARACTER Zoo Zoo.in DESCRIPTION Fanciful Easy to remember.vodafone. Simple country extensions Recognizable. Red and white color combination.

are some of the value added services that Vodafone provides. Mail. Personnel Benefits The staff of Vodafone is trained with the mindset of “Happy to help you” which is the motto of Vodafone. Vodafone now has the iPhone 3G and the Magic Box Handset as product offerings.10. News & Updates. Image Benefits Vodafone has always been positioned as a brand that provides a wide range of services and caters to all sections of the society. personnel and image involved. Sports. Astrology. Devotional. 8    . services. Vodafone provides a series of other services like Tunes & Downloads. Vodafone has call centers with trained personnel who take a customer’s request.6. Vodafone Live which guarantees nonstop streaming action. In addition to the existing products. Apart from all of this. Vodafone seems to have hit it off well with primarily the youth and the younger age groups. CRM    Total Customer Benefit is the perceived monetary value of the bundle of economic. Services Benefits Vodafone World which is the GPRS Service. and Detailed information on Billing. Entertainment. ‘Chhota Recharge’ which is a small value recharge card beginning at Rs. Travel. we can analyze the Total Customer Benefits as follows: Product Benefits A variety of products is offered including several variations in the prepaid and postpaid divisions. functional and psychological benefits customers expect from a given market offering because of the products. Call Management. In the case of Vodafone. Messaging. Vodafone provides a number of top-up plans each of which can be selected on the basis of what is the customer’s requirement. service the request and then follow up to find out if eventually the customer’s needs have been met satisfactorily. Finance. process it. However.

7. Therefore. POSITIONING  After the great success in the ZooZoo ads. maintenance. usage and disposal of the connection. Vodafone is trying to reach the mass consumers by releasing shorter and Tiny Packs and Using Animated Characters like Parrot Setji. which were used to communicate to audiences with high levels of literacy. This advertisement is to commercialize their Rs 4 Bonus card offered to pre-paid consumers.If we were to analyze the Total Customer Costs in a similar manner. we would find Monetary Costs Vodafone has several plans to suit everyone’s pockets and so the cost associated with a Vodafone connection is only what the client feels is feasible for him or her. There seems to be an attempt to connect with the price-conscious audience . Time Costs Customer’s do not have to spend too much of time trying to pay their bills or get their requests serviced because of the many stores and online payment facility Energy Costs Because clients do not have to travel to meet their needs too often. A similar ad was released by the company ‘Vodafone Blackberry Ads’ to target the urban growing youth who are price conscious but at the same time want Value added services. The proposition is very strong and interesting. the elements of the psychological costs do not play too much of a factor while evaluating the total costs that a customer incurs in availing of Vodafone’s services.e.therefore the 'common man' kind of talk. Vodafone is now popularising the brand by an animated parrot. 9    . Psychological Costs The customers of Vodafone do not need to spend any large amount on acquisition. the energy costs associated with Vodafone are also considerably low. lower income groups/masses. The positioning of this as is as such as to as address a different target group i.

8. SEGMENTATION  8. Vodafone Postpaid Services is a Cashcow by contributing a large proportion to the company’s revenues Question Marks The Magic Handboxes offered by Vodafone would fall under this particular category as the mobile Handset market in India is growing at a pace of about 9% per annum and due to intense rivalry and many specialised players Vodafone is not able to perform well in this particular area of interest. 10    . Vodafone is keeping itself abreast with the Industry growth rate by clocking a steady growth around the same margin Cash cows While the Wireless Telecom Sector may show an industry trend of 15% revenue share in the Post-paid segment.1 BCG MATRIX  HIGH Business Growth Rate LOW STARS QUESTION MARKS MAGIC HANDBOXES   PREPAID SERVICES  CASH COWS DOGS POSTPAID SERVICES HIGH LOW RELATIVE POSITION (MARKET SHARE) Stars Prepaid Services of Vodafone would be a star performer as the lower income segment and rural areas prefers pre-paid connections. With the Customer subscriber base growing steadily.

• Product Development With respect to the Magic Hand boxes and Solar Powered Mobile phone offerings of Vodafone.                                                             Current Products     Current Markets New Products Market Penetration S Product Development Strategy New markets     Market Development Diversification 11    . With Urban markets literally getting saturated and also with increased competition Vodafone should concentrate on the rural segment and the lower income group.8. Hence this would be a case of market development in this particular regard. Vodafone should adopt a very proactive approach in reaching out to the new markets with its current flagship products viz.2 ANSOFF’s PRODUCT­MARKET EXPANSION GRID    • Market Development With the booming rural market in India. As of now Vodafone is concentrating its efforts only on the urban areas with respect to Magic Hand boxes and although it has introduced its solar powered phones particularly for the rural segment there have been lagging behind in promotions for the same. the prepaid and post-paid plans. it would be a case of Product development strategy as it constantly comes out with innovative new designs to satisfy the changing needs of its customers.

This would be a very important component of differentiation considering the fact that almost all players in the market are on an even playing field with respect to providing the core products. • • • Vodafone products.1 PRODUCT  A product with many different features provides customers with opportunities to chat. These include Tunes and Downloads. Solar Powered Phones: Vodafone has already launched its solar powered phones earlier this year. top up coupons. obtain billing information – and soon view video clips and send video messages • Magic Hand boxes: Vodafone provides a range of magic boxes (mobile handsets) at the lowest possible rates as a part of its offering to the markets. Apart from these. These can be easily purchased from its stores and mini stores. It should embark on the low cost so as to attract the lower income segment. devotional and sports quotients. regular news and updates and call management services. These new handsets are to benefit users in areas with adequate sunlight and unstable electricity supply. special offers and services are also offered on important festive occasions like Diwali in order to provide maximum value to its customers. Bonus cards: These are essentially prepaid cards that enable a larger section of the society to stay connected. send and receive pictures. a satisfied Zoo Zoo 12    . play games. MARKETING MIX ­ 7Ps FOR VODAFONE  9. VAS: Vodafone offers a range of Value added services apart from its core offerings. change ring tones.9. receive information about travel and sporting events. entertainment quotients like music and movie related activities.

bonus cards and longer validity schemes at a similar pricing but targeted at the lower income segment Magic hand boxes: Magic Hand boxes are products by which Vodafone can attract customers from a variety of income groups and other demographic characteristics. Stores have special offers. In order to make it available to a very wide section of the audience Magic hand boxes are made available from prices as low as Rs. Its pricing strategies varies accordingly by offering features like Filmy recharges and SMS value packs targeted at the youth segment to features like “Apne minutes”. to the more mature users. like unlimited free msg card.999 to Rs. 9. Monthly price plans are available as well as prepay options. The top ups are available from Rs. 10.in/index. It offers various pricing structures to suit different customer groups. Ads showing Zoo Zoo moods and accessibility of Vodafone services                                                              http://businesstoday. Phone users can top up their phone on line A number of schemes are being introduced from time to time to match the customer needs. and various point of sale posters in order to attract its customers.intoday.2 PRICE      • • • • • • • Vodafone wants to make its services accessible to as many people as possible: from the young. 1paisa per second call rates.  9.php?option=com_content&task=view&id=1892&Itemid=1&issueid=&limit= 1&limitstart=1  1 13    . high powered business executives.9999.3 PLACE  • Vodafone promotes its offerings through a host of over 4000001 stores located across all the 23 telecom circles in the country.

115 in the financial year 2010 which is considered as a dedicated and passionate workforce and one of the best customer service support teams. Moreover it aims to reach the maximum number of people. Vodafone’s stores. Most Effective and Most Creative Advertiser of the Year. in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively.4 PROMOTIONS    • • • Unlike the other telecom majors which rely heavily on Film stars and cricketers to promote their brands.5 PEOPLE    • Vodafone Essar India has an employee database of around 10. on billboards. its products and its staff all project the brand image.9.           14    . This is known as above the line promotion. 9. Vodafone has focused on advertising campaigns like the Pug and Zoo Zoos and now the Parrot to have connect with the people and also as a part of its strategy to be cost effective on the ad production front. and Most Respected Telecom Company. It provides a dynamic environment and challenging opportunities to its employees. ABOVE THE LINE: Advertising on TV. BELOW THE LINE: Stores have special offers. promotions and point of sale posters to attract those inside the stores to buy. Empowerment and career development go simultaneously with all opportunities in Vodafone. Vodafone Essar Limited has received many awards over the years such as the Best Mobile Service in India. Fun is incorporated in the work life of employees of Vodafone.

of customers Kolkata 1. • The most important physical evidence of for the Vodafone is its existing customer base.9.632. Vodafone mini stores that are small in size but big in service.875 Mumbai 2989970 Delhi 3002442 Chennai 981996 (Source: http://business.mapsofindia.html)  • Existence of the customer care centers across the country. Vodafone outlets are all a part of the physical evidence that facilitate the customer judge the service.6 PROCESSES    Vodafone Essar India provides a wide variety of services in mobile communication and other value added services by adopting an easy-to-use customer friendly approach.com/communications‐industry/companies/vodafone. 15    . Vodafone stores. Vodafone ads and stores 9.7 PHYSICAL EVIDENCE  Physical Evidence is the element which allows the consumer again to make judgments on the organization. All information about its basic and other valued services and various promotional offers can be availed through a unique customer care number 111 which can be dialed from anywhere in India. The Vodafone Essar subscriber bases in the cities of India are: City No.

10. these value added services now form a main part of the telecom industry. However. CONCLUSION    Vodafone as seen in the report has been a successful service provider and has been able to make its mark by a large consumer base despite a tough competition in the industry. Vodafone has till now achieved a higher growth share in the urban areas as compared to the rural areas where it needs to focus on by implementing different strategies that would ease the usage of their services for the rural customers as well. 16    . The rebranding exercise was a huge success and the main credit goes to the Zoo Zoo ads which were mainly used to promote the value added services of Vodafone.

aspx http://www.thetimes100.in/ http://www.com/Market-Research-Reports/Asia-Pacific-MobileHandset-Market-Analysis.kpmg.co.htm 17    .html Cellular Operators Association of India.vodafone.bharatbook. REFERENCES    • • • • • • http://www.11.php http://www.uk/case-study--sponsorship-marketing-mix--41131-3.org/casestudies/catalogue/marketing/MKTG220.icmrindia. 2010 http://www.com/Global/en/WhatWeDo/Advisory/PerformanceTechnology/Business-Performance-Services/Pages/Vodafone-case-study. October.

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