ABSTRACT

In the year 2007, the world's largest telecom company in terms of revenue, Vodafone Plc (Vodafone) made a major foray into the Indian telecom market by acquiring a 67 percent stake in the Indian telecom company, Hutchison Essar Ltd, through a deal with the Hong Kongbased Hutchison Telecommunication International Ltd. It was the biggest deal in the Indian telecom market. Vodafone's main motive of going in for the deal was its strategy of expanding into emerging and high growth markets like India. In 2007, India had emerged as the fastest growing telecom market in the world outpacing China. But it still had low penetration rates, making it the most lucrative market for global telecom companies. Though Hutchison Essar was one of the established players in this market, Hutchinson Telecommunication International Ltd. had exited India as the urban markets in the country had become saturated. This brand management project aims to track Vodafones success in the Indian market right through its launch on 21st September 2007. The report is divided into three parts: Introduction, Analysis and Conclusion. The introduction section mainly gives an overview of the Indian Telecom industry, and about the company - Vodafone. The Analysis section deals with competitors of Vodafone, and also giving an outline of the competitive growth of the telecom companies. It also discusses the various re-branding strategies adopted by Vodafone in order to successfully penetrate into the Indian market. A detailed analysis of the telecom brand Vodafone is done for the purpose of the study.

INTRODUCTION
Vodafone, the British mobile company that entered India after buying Hutch’s share and by creating Vodafone Essar in July 2007, has embarked on a major rebranding exercise in the country. The history of Indian mobile industry is not very old, not to mention the industry as a whole in itself is very new to the whole world. Telephones have been serving mankind for quite a long now and can boast of the world largest redundant legacy system. Thousands of miles of underground cables run through oceans to connect all the continents. Telecommunication industry as a whole has not seen a major revolution for a long time with the exception of a few new innovations in the type of services and call rated. The advent of wireless communication has brought about a slew of path breaking technological advancements in the way people use and see telephones. From being an equipment kept on the side table for talking, it has walked to occupy every person’s pocket for all his information needs. Furthermore, the revolution has not ceased and it promises to bring even more of comfort and connectivity while on the move. Recognizing the crucial role that can be played by the telecommunication sector in India’s development, the Government of India in 1999 initiated a number of changes in the telecommunication and regulatory and policy framework. Through these the Government hoped to facilitate an increase in telecommunication penetration, which stood at 1.3% in 1995. The reforms, with an eye on a telecommunication penetration of 15% by 2010, resulted in a flurry of private operators entering the market breaking the monopoly of the incumbent operator Bharat Sanchar Nigam Limited (BSNL).

43 million in December as compared to 48. India is . suggesting that first-time users of telephones are opting for mobile phones.43 million a year ago. Rather than listing a web address. Although the average Indian mobile user remains cost-conscious because of low-income living and huge size of mobile subscriber in India uses only SMS or voice services. with around six million customers being added every month. India’s tele-density has grown by about 100 per cent to 17. many billboard ads offer an SMS short-code which people can text to get more information. with increased mobile internet access expected to push up average revenues per user. the number of fixed line telephone subscribers dropped. whereas growth of internet access at home is much slower. At the start of the decade.India’s 1. FM radio and mobile video. Also.16 per cent over the past two years. new and more multifunctional handset with features like cameras. But now. Even as the mobile telephony market in India is booming. But it is growing by more than six million subscribers every month. so the Indian market is certainly a growth one. making it the fastest growing market in the world and the focus of the industry. Last year it actually grew at a faster rate than China for the first time in new mobile phone connections. Mobile penetration in India is growing rapidly and it is becoming increasingly rare to see anyone without a 'hand-phone' as they are known. There are expected to be somewhere around 200 million subscribers by the end of the year.1 billion population currently boasts a mobile telephone penetration rate of just 13 per cent. The number of fixed line subscribers was down to 40. India was pretty much a telecom backwater.

Kumar Mangalam Birla.Vodafone bidding for 67% stake in Hutch-Essar. Anil Ambani. India’s tele-density of 17% is dreadful. The dramatis personae include leading names of India Inc’Sunil Bharti Mittal. whom the Hutch puppy will follow dutifully henceforth. . Ratan Tata and A K Sinha (of BSNL) not to mention the 51-year-old Arun Sarin of Vodafone. The Indian telecom industry recently witnessed its biggest deal .the largest untapped market where the 20% of the total world's population lives. The telecom market is at a stake with $22 billion which is expected to double by 2010. But for a nation of 1. And therein lies both the opportunity and the challenge.3 billion people.

. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market. The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like Steel. The Group has an asset base of over Rs. Power.000 people. Shipping & Logistics and Construction. It presently has operations in 25 countries across 5 continents and 40 partner networks with over 200 million customers worldwide. Energy.About Vodafone Vodafone is the world's leading international mobile communications company. Communications.400 billion and employs over 20.

over 35 mobile stores and over 3. the world’s leading mobile telecommunication company.000 mini stores. with 60% completed within 48 hours of the launch.000 multi brand outlets. The Vodafone mission is to be the communications leader in an increasingly connected world enriching customers lives. .000 touch-points rebranded in two months. This brand unveiled nationally through a high profile campaign covering all important media. It is even larger than Hutch’s own previous brand transitions. businesses and communities be more connected by delivering their total communication needs. The popular and endearing brand Hutch was transitioned to Vodafone across India. completed the acquisition of Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007. over 1. This marked a significant chapter in the evolution of Vodafone as a dynamic and ever-growing brand. Vodafone. over 350 Vodafone stores. helping individuals. The transition from Hutch to Vodafone is probably the largest brand change ever undertaken in this country and arguably as big as any in the world. The migration from Hutch to Vodafone was one of the fastest and most comprehensive brand transitions in the history of the Vodafone Group. Vodafone was welcomed in India with the Hutch is now Vodafone campaign. with 400.Launch of Vodafone Essar Vodafone Essar was launched in India on 21st September 2007.

for long ignores this country which is expected to become one of the top three emerging economies. Success in India will depend on the correct estimation of the country's potential. shortages of power and infrastructural deficiencies. aspiring to be a global player can. Entering India's marketplace requires a well-designed plan backed by serious thought and careful research. No company. of any size. is believed to be a good investment despite political uncertainty. Vodafone is to be the leading telecommunication company in India. due consideration should be given to the factor of the inherent difficulties and uncertainties of functioning in the Indian system.Analysis The major reasons for Vodafone to make a move in the Indian market was that. It is also the second largest among emerging nations. underestimation of its difficulty or overestimation of its possibilities can lead to failure. Vodafone after completing the acquisition of Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007 was granted for good in India’s market place. bureaucratic hassles. India is an opportunity for long-term growth. India is the fifth largest economy in the world and has the third largest GDP in the entire continent of Asia. India presents a huge potential for overseas investment and is vigorously encouraging the entrance of foreign players into the market. India. among the European investors. by making customers uses their mobile communications and making their . India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business. While calculating.

Players of Indian Telecom . entertainment or assistance wherever they are. Right now. Over the past few years they have worked hard to build a company capable of delivering innovative and compelling mobile services to all customers throughout the world. Vodafone has a strong aim to help people find information.life more fulfilled due to their experience. they are introducing new mobile services that will make Vodafone an even more important part of customers' lives. and by making mobile communications the primary means of personal communications.

• VODAFONE • AIRTEL • LOOP MOBILE • RELIANCE COMMUNINCATION • IDEA/SPICE • AIRCEL • TATA DOCOMO • MTNL COMPETITIVE GROWTH OF TELECOM COMPANIES .

that is. By September 2007. by revenue face intense Competition from incumbents as well as new entrants in India. In the third quarter which was around at the end of December. world’s No. It is said that Vodafone can see much as 12% of its global revenues to be coming from the Indian mobile phone market by 2012. and Reliance Communications set to offer GSM-based phone services in India. much like other telecoms in India will face competition in the coming months with as many as nine new companies such as Unitech Ltd. which adds around 8 million subscribers every month. Vodafone. Germany. contributed to 2.3% put it behind Bharti Airtel Ltd at 23.8 million to 252. In May 2007. Vodafone saw its global mobile subscriber base grow by around 10. Italy and Spain. all Europe. Vodafone reported a 4. GSM is the dominant wireless technology platform in India.3 million.2% increase in revenues.2061 crores in order to gain a foothold in the Indian mobile market. the company’s market share of 17. 71. While India contributed 4.6% and Reliance Communications Ltd. This helped in having almost 56% growth in Vodafone India’s revenues. at almost 18%. including the UK. Vodafone Essar Ltd had overtaken the state-run Bharat Sanchar Nigam Ltd in terms of number of mobile subscribers. In the initial three months till December. 1 mobile telecom company.58 million. As of 31st December.992 crores.2 million to this number. .7 Rs4. Vodafone acquired a 52% stake in India’s Hutchison Essar Ltd for $10.Vodafone. around Rs.

.288 crore in fiscal 2007-08. it could have also resulted in lower realisations. Vodafone has attempted to shed its ‘premium’ image with offers such as “chota recharge”. the performance puts Vodafone behind Bharti and Reliance Communications. India has been the fastest growing market. Vodafone is looks to offer phone services at lower costs. however. Bharti Airtel and Reliance Communication. In contrast. The packaging of services along with low-priced handsets. The monthly subscriber additions have been healthy at the rate of 1. but is still higher than that of Reliance Communications and Idea Cellular. to cater to the mass market and Vodafone’s high decibel ad campaign to establish its new identity. Idea Cellular Ltd and Vodafone Essar formed a joint venture called Indus Towers Ltd with some 70. Bharti Airtel.1 million as of March 2008.5 million subscribers. resulting in a subscriber base of 44. Vodafone’s India operations have recorded a 50% growth in turnover at Rs 15. But in terms of subscriber base and revenues.000 towers being shared by the operators in 16 Indian states. India accountsfor 5 per cent of its global revenues. Average revenue per user has come down over the year for Vodafone. with Indian operations registering higher profitability than the UK and the Netherlands markets. By sharing more telecom infrastructure. its global operations have grown by only 14 per cent during this period. even as average revenue per user continues to fall. The country also scores well on the profit margin front. While this would have aided customer additions. have better operating margins on a higher revenue base. even ahead of geographies such as Turkey. may also explain lower margins.In December. For Vodafone.

including low call rates. PCOs & mobile phones from over 100 countries. Vodafone Home Calling Card is a Pre-paid calling card that allows one to make calls from landlines. • Home Calling Cards Vodafone Handyphone is a landline that’s loaded with all the features of a cell phone .PRODUCTS AND SERVICES PRODUCTS • • • • PRE-PAID SERVICES POST-PAID SERVICES MAGIC BOX HANDSETS WORLD CALLING CARDS World Calling Card from Vodafone is a Pre-paid long distance calling card that one can use with their Vodafone Prepaid and Post-paid mobile phones to make ISD & STD calls. So talk more. One can make it theirs for Rs 1999. spend less and always stay connected. And helps save up to 90% as compared to International Roaming charges. • Handyphone . And Vodafone Handyphone isn’t that expensive either.

MESSAGING & MORE • DIAL IN SERVICES • BILL INFO MARKETING STRATEGIES .SERVICES • TUNES & DOWNLOADS • ENTERTAINMENT • DEVOTIONAL • SPORTS • CALL MANAGEMENT SERVICES • ASTROLOGY • FINANCE • TRAVEL • MAIL.

our network follows. Conventionally awareness for a new brand takes some time to build. Where ever you go. with Hutchison Essar becoming part of the Vodafone Group. The new catch phrase will be “Make the most of now”. the new campaign had started with Vodafone Essar earmarking Rs. In the advertisement.5 billion on the transition from Hutch to Vodafone. Hence. Bengali. Tamil. Commercial spots had also been purchased on Sony. was the previous slogan with the pug following the child wherever he goes. transition bumpers and contest spots to promote the Vodafone Essar brand. Marathi and English) from 9 pm on 20 September to 9 pm on September 21. The main message of the brand transition exercise: The new Vodafone is the same old Hutch. Considering that the Star Network is the lead network in India. this was the most apt platform for Vodafone launch. Now. Vodafone used all of the commercial airtime across all 13 channels in five languages (Hindi. Maxus and Star Network worked closely to address this challenge and came up with the idea wherein during the day of the launch a complete roadblock on the Star Network channels was conceptualized. the pug sees a new home when it returns after an outing and feels the change is better. Vodafone had tied up with Star India to run a complete roadblock of its fresh campaign on the entire network by unveiling the 24-hour nationwide rebranding campaign. This strategy helped not only in achieving build rapid brand awareness but also breaks the clutter during such an important launch in the most . However.Vodafone’s new advertising campaign in India carried on with the same popular pug that has become a brand ambassador for Hutch. 2. This exercise included TV commercials. Vodafone wanted to achieve this task at the shortest possible time.

While the brand campaign had been addressing the transformation. While the campaign was heavy on television. Previously. This is a first of its kind mega media initiative in India by any brand. it also included all other media vehicles. Samsung.telecom. The print campaign kicked off on 21 September. Vodafone Essar distributed bundled handsets through its existing 400. ranging from about $19 to $25. a catalyst. like RCOM and Tata Teleservices. Vodafone Essar launched low priced cell phones in India under the Vodafone brand. on the other hand was swiftly preparing for a price war in the Indian telecom space. The Vodafone mission is to be the communications leader in an increasingly connected world – enriching customers' lives. the Company.The start of a new conversation. and also co-branded handsets sourced from major global vendors. helping individuals. Vodafone's logo is a representation of that belief . and Sony Ericsson in addition to continuing as telecom services provider. Indeed. . Motorola. similar handset-driven expansion strategies to grow subscriber bases were adopted by CDMA players. By flooding the market with its low-cost handsets. a mark of true pioneering. a trigger.000 distribution outlets. a day after the television splash. Vodafone also became a mass mobile phone brand like Nokia. By bringing in millions of low-cost handsets from across the globe into India. it was preparing to provide mobile handsets to new subscribers at ultra-cheap prices.happening category . businesses and communities be more connected by delivering their total communication needs. Vodafone is the first GSM operator to follow suit.

which they had been using for about five years. O&M launched a rather direct. “introducing” the new brand’s logo to consumers. Ogilvy & Mather (O&M). . Therefore. O&M realised that they had a fantastic property in the Hutch pug. The four creatives which were of five seconds each included the duo peeping over a wall to see the logo. had a two-fold task to achieve: announce the entry of Vodafone into India and highlight the metamorphosis of Hutch into Vodafone. to show the transition from Hutch to Vodafone. There are many examples of where advertising has either repositioned or strengthened brands. as it is fairly easy. and it concludes with “Change is good. drawing curtains aside to show the logo. parasailing with the logo flying high behind them. releasing a rocket bomb wherein the explosion reveals the logo.ADVERTISING STRATEGIES Advertising is probably one of the most frequently used vehicles for Rebranding. flexible and quick to change. other good examples of where advertising has built a new position for a brand or built a strong emotional link with the public are where companies have created a sort of soap opera out of their advertising. Hutch is now Vodafone”. thematic ad showing the trademark pug in a garden. moving out of a pink coloured kennel which symbolised Hutch making his way into a red one that is the Vodafone colour. O&M has also rolled out four Commercials featuring Hutch’s animated boy and girl. The Advertising agency of Hutch and now Vodafone. It is a powerful way of reaching a broad or targeted audience quickly and is effective at signalling a change in positioning. and lastly. however real or broad that may be. A more energetic. chirpier version of the ”You and I” tune associated with Hutch was played towards the end.

Vodafone represents high energy. dynamism and young vitality . The same creative was used in outdoor hoardings as well. The pug was shown in a red basket. is a subtle. It wasn’t easy integrating Vodafone with Hutch. popping up from a red cart. in all the 16 circles in which Vodafone now operates. while globally. understated brand. Each of these made use of the ”Hutch is now Vodafone” tagline. drying himself on a red mat. literally. using the colour as a visual mnemonic to remember the brand by. A few advertisements include: . These five and 10 second spots cast the dog in situations where he.all represented by its bright red speech mark logo. the latter.Four other ads with the pug did the rounds of telly screens. The print ads. And so they put in elements such as a more energetic tune and feel to the ads. saw red. were kept unbelievably simple: a still shot of the pug inside a red kennel. as is known. in all major languages in several leading dailies. and hiding in a red blanket.

It uses the positioning "Make the most of now" enjoy the video Vodafone Chota Credit Ink Ad This new ad had come as refreshing change and more so that this ad takes a very refreshing look at school and at fountain pens. PESTEL Analysis . On 11 February 2007.Hutch is now Vodafone If you watch any of the star channels or tuned into 20-20 world cup. Valentine Day Special Ads: Vodafone Vodafone had released a simple and sweet ad for musical greetings targeted at couples during the valentine week the feature of this campaign is its simplicity and believability and is quite well received. An interesting part of this campaign was on the opening day roadblock where they made a deal with Star India so that besides them no other commercials were aired (apart from in-channel promos) on the Star India's channels for 24 hours. This required nearly 250 crores of spending by Vodafone but they have successfully painted the town red. Vodafone agreed to acquire the controlling interest of 67% held by Cheung Kong Holdings in Hutch-Essar for US$11.1 billion and now had to rebrand itself so it has decided to run a new ad series which piggy banked on Hutch's dog mascot and the theme "Change is Good". you would have seen this ad. This ad creates a wonderfully subtle message which really puts the point of chota (small) credit across.

and pressures from certain pressure groups. and banning of phone use in certain circumstances. There are other factors that influence the purchasing power of customers and the company. like cost of capital and cost of 3G licenses. Economical The economic environment is dependent and influenced by the country’s economic policies. A Company could only begin to use a frequency once they have been granted to them by thelocal authority. For instance it can be regulation. inflation. The licensing of certain frequencies plays an important role in the development of the mobile operating network.Political Political factors play an important role in the development of the network operating industry. There are other Governmental and legal issues affecting basically how the company operates. Political factors could include the provisions of certain laws. income distribution and many other economic trends determine the nature of the products and services provided by Vodafone. infrastructure. consumption patterns. High-income levels will result in an increase of usage of the Vodafone mobile services. These include the rates of economic growth. Social .

technological development is based on the increase in efficiency and quality in the transfer of voice calls. There are people for whom camera phones. Vodafone’s competitors like Airtel. etc come under the latest trends. etc are planning to come out with the 3G technology which further increase the competition to a great extent. and data between mobile phones. Also. The action of the companies is being monitored making sure they are environmentally friendly. Technological The success of technological development plays the most important role in the success of telecommunication companies. Environmental Environmental factors also play an important role in the development of network operating industry. they have to keep various factors in mind. For instance. In the network operating industry.Social factors look at the structure of the population and the impact of which it has on the demand for the product and the supply of labour. Social trends and other mobile etiquettes are factors that any mobile customer would follow. Idea. The government is forcing Vodafone and other telecom operators to become more environmentally conscious. There are certain demographic and cultural aspects of the environment which influence customer needs and the market size. high memory space. while putting up towers. Any negative . This is because among this crowd going with the mobile trend is more of a fashion statement. Vodafone's competitors are now offering the same GSM handsets as Vodafone. This shows that technology is feasible in the market of network operators.

This means that development cost will need to be done to produce handsets that attract low radiation.externalities given out will have to be paid by a full social cost by Vodafone. . Legal The market in which Vodafone is in has only one Legal force that is to provide safety in the use of its services through the handsets they sell and provide.

inexpensive SMS facility for the youth.STP ANALYSIS Segmentation Vodafone’s services are spread wide across India. the segmentation can be done based on the geographical conditions. or interested in astrology. segmentation by Vodafone is done based on the service usage by the customer. services can be defined as the customers who would prefer caller tunes. Positioning . usage in terms of Post-paid or Pre-paid and further. For instance. Also. Therefore. 10 ”chota” recharge. or know about the financial. For instance. and the other can be defined as Institutional where a company or any corporate purchases the connection and gives it to their employees whereby the bills expense would be borne by the company. They are offering a series of differentiated products to their respective markets. the nature of customer also a segmentation strategy as a customer can be defined as a sole customer who purchases the connection on his name and uses it himself. They are targeting middle class customers which can be clearly justified by their products they are offering like Rs. To an extent. they have come out with Home calling cards for the family to those professionals who use to work abroad. Targeting Vodafone is adopting a multi-segment approach.

Conclusion . actor Irfan Khan has been restrained for the brand promotions.Initially. Hutch positioned themselves as ‘Where you go the network follows you’. Vodafone have always talked about the exclusivity of the network. Hutch is a brand that always tried to connect with customers in a simple. The positioning strategies have been highly successful for Vodafone as they made a wise decision of restraining the “PUG” dog which was a very powerful visual imagery. while Vodafone is a more of a young and a fun brand. honest and real manner. and the services they are offering to the customers very effectively. Also.

Change is Good. there are always positive aspects to it in the long run. With market penetration of around 14% and with a population of over 1. Coincidentally. The important element in the changeover was to move with out a glitch from Hutch to Vodafone with a positive attitude. The transition of Hutch to Vodafone is estimated to be a mega Rs 200crore campaign with multiple media channels being used to convey the message. implies that even if a well-loved brand changes. It has already moved up to third from fourth place since being acquired. The pug is synonymous with Vodafone’s robust network and is the most endearing symbol of the brand.The acquisition of interests in Hutchison Essar accelerates Vodafone's move to a controlling position in a leading operator in India. overtaking state-owned Bharat Sanchar Nigam Ltd (BSNL). but there are certain analysts who say that the real prize lies in its vast rural areas. both brands already have an up market image in their respective markets and so transferring the values and emotions was not difficult for the mobile telephony brand. while carrying our customers along with them. So far India's "mobile revolution" has been mainly confined to the cities.1 billion. where nearly 70 percent of the country's 1. Vodafone says it wants to make its Indian unit the number one mobile provider in India by 2010. bringing in a familiar mascot is what is expected o do the trick in convincing consumers. The baseline. To move seamlessly from one brand name to the next. and this has significantly increased their presence in emerging markets.1 billion . India provides a very significant opportunity for future growth.

population live. Vodafone’s focus will be on rural markets and this is the reason why Vodafone has tied up with Chinese handset maker ZTE for low-cost handsets. Hence. REFRENCES .

vodafone.google.com .google.com/article/ALeqM5h0Ag13YpoQKLByzpqdsH7 z8AoHoQ • • http://www.• http://afp.com www.

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