VODAFONE AND HUTCH
ABOUT VODAFONE: WHO THEY ARE:
Vodafone Group Plc is the world's leading mobile telecommunications company, 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 operate under the brand name 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless. During the last few years, Vodafone Group has entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Market Agreements, the Group and its partner operators co-operate in the development and marketing of global products and services, with varying levels of brand association. At 30 June 2010, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 347 million customers, excluding paging customers, calculated on a proportionate basis in accordance with the Company's percentage interest in these ventures. The
The Company had a total market capitalisation of approximately £71. Newbury. The Connection. Its registered office is Vodafone House.
. reverted to its former name. on 28 July 2000. the company changed its name to Vodafone AirTouch Plc on 29 June 1999 and.
Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Inc. approximately 20% of the company's capital was offered to the public in October 1988. following approval by the shareholders in General Meeting. Following its merger with AirTouch Communications. Vodafone Group Plc. Then known as Racal Telecom Limited.2 billion at 12 November 2009. at which time it changed its name to Vodafone Group Plc. England. Berkshire. RG14 2FN. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991. (‘AirTouch’).Company's ordinary shares are listed on the London Stock Exchange and the Company's American Depositary Shares ('ADSs') are listed on the NASDAQ Stock Market.Vodafone Group Plc is a public limited company incorporated in England under registered number 1833679.
Home services: Vodafone provides superfast broadband and state of the art high definition TV. The Company considers all its present non-executive directors to be fully independent.ogy such as WiFi.
WHAT THEY DO: PRODUCTS:
.Vodafone 360: Vodafone 360 is a new
. . in the event it should be necessary. is the nominated senior independent director and his role includes being available for approach or representation by directors or significant shareholders who may feel inhibited from raising issues with the Chairman.THE BOARD: Sir John Bond became Chairman of Vodafone Group Plc on 25 July 2006 having previously served as a Non-Executive Director.Handsets: Vodafone offers hadnsets packed with latest techno. The Deputy Chairman. John Buchanan. He is also responsible for conducting an annual review of the performance of the Chairman and. convening an annual meeting of the non-executive directors. . GPS and internet.
FUTURE AGENDAS OF THE COMPANY:
Supported by Vodafone Group. the Future Agenda is a cross-discipline programme which aims to bring together thoughtful people from around the world to address the greatest challenges of the next decade. identifying and debating potential solutions and suggesting possible ways forward. that it will provide a platform for collective innovation at a higher level than has been previously been achieved. It enables millions of people who have access to a mobile phone. We hope. as a consequence.internet service for phones and personal computers. or M-PESA as it is more commonly known. it is mapping out the major issues. In doing so.
. is the world’s most successful money transfer service. to send and receive money.
Vodafone Money Transfer: Vodafone Money Transfer. top-up airtime and make bill payments. but do not have or have only limited access to a bank account.
As the world responds to accelerating challenges. In order to understand emerging opportunities.
STRATEGIES: . we believe organisations should look.OPERATIONAL PERFORMANCE:
Drive operational performance Value enhancement: We’ve made significant progress on mobile data. This is still a large opportunity. with the penetration of data devices relatively low
. organisations are seeking to gain clearer and more informed views of the future so that they can place intelligent bets in terms of business strategy and innovation focus. government and third sector organisations keen to share perspectives. challenge each others views and identify ways forward across the topics being addressed. beyond their traditional horizons. and use new combinations of insight and foresight methodologies. The Future Agenda programme has already gained the support of a range of corporate. with annualised revenue of £3 billion.
particularly in India. Enterprise: Have a strong position in core mobile services and we’ve built a solid presence in 18 months in multi-national accounts through Vodafone Global Enterprise. It will be targeted at enterprise and high value consumers as a priority. There are few potential large new markets of interest to us and we will
. supported by our local sales forces. Our main focus now is on execution in these markets. Broadband: Adopt a market-by-market approach focused on the service. Turkey and our African footprint. This means serving small and home offices (SOHOs) and small-tomedium enterprises (SMEs) with shared platforms and services. Execute in emerging markets Delivery in existing markets: Represented in most of the key emerging markets where significant growth is expected in the coming years.We will make the most of this strength to expand our offerings into the broader enterprise communications market locally.in Europe and almost nil in emerging markets. following Selective expansion and cautious approach: Try to maximise the mobile data opportunity. rather than the technology.
the Board adopted a progressive dividend policy. which we consider to be appropriate in the current environment and comfortable with our liquidity position. Clear priorities for surplus capital: Our priorities are to:• invest in existing businesses• expand in the growth areas of mobile data. where appropriate.After investing in existing business and returns to
.Our focus is on generating £5 billion to £6 billion free cash flow generation per annum and ensuring appropriate investment in our existing businesses.be cautious and selective on future expansion.18 pence for the 2013 financial year. Strengthen capital discipline Remain committed to our low single A rating target. enterprise and broadband• acquire. where dividend growth reflects our underlying trading and cash performance.In May 2010 the Board announced that it was targeting dividend per share growth of at least 7% per annum for the next three financial years ending on 31 March 2013. new spectrum to support voice and data traffic growth. We expect the total dividend per share will therefore be no less than 10. Shareholder returns: Aim to improve returns to shareholders. primarily by increasing dividends. In November 2008.
has created a
. giving people the chance to spend two paid months working for a local charity. we will consider opportunities to reshape the portfolio. From thousands of applications we chose 500 winners. the new brand ambassador of Vodafone. LATIN AMERICAN FOUNDATION FOR THE FUTURE
MARKETING STRATEGIES OF VODAFONE:
. Our current capital structure implies that any significant acquisition would likely need to be funded through portfolio disposals. WORLD OF DIFFERENCE INTERNATIONAL: PEER EDUCATION PROGRAM AGAINST AIDS PLANTING PROMISE: developing education in Sierra by using the profits from the local business to provide free schooling for children and adults in the area. some of whom are still busy doing their bit.ZOOZOOS: ZooZoo.shareholders.
WORLD OF DIFFERENCE: Last year
Vodafone launched the World of Difference programme.
but the curiosity heightened when Vodafone disclosed that Zoozooz were not animated. rather humans were playing those characters. and Zoozooz captured attention of nearly two billion people during the IPL. It was a fresh and innovative concept and Vodafone wonderfully promoted their services by creating different stories featuring Zoozoos. Within few days. round belly but extremely thin arms and legs. which proved to be a great marketing strategy. Zoozooz created a huge audience for them. People were even more hungry to know about their favorite Zoozooz.furore in the advertising industry. Cricket is considered to be a religion in India. Zoozoos are small pseudo-animated characters with big egg-shaped head. The charm of the Zoozoo was itself a great self-marketing strategy and they were instant success among masses. People were already in awe of those cute and lovable characters. giving a boost to the Vodafone brand. Zoozoos have been successful in giving Vodafone a makeover and establishing maximum brand presence.
. People eagerly waited for breaks between matches to see more stories about Zoozoo. I consider it to be a perfect example of a well-laid out marketing strategy for the following reasons: Vodafone chose the Indian Premier League 2 (IPL-2) as a platform to launch their advertisement.
Zoozoo fan clubs are there on social networking sites like Facebook. after the release of these ads. and many more. Following is the story told by the ads itself 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. Vodafone acquired 67% stake in Hutchisson and re-branded Hutch telecom into Vodafone. The recent ads of Vodafone. Hutch had a very strong brand personality. telecom provider in India. Nothing have been as popular as cricket during cricket seasons in India. In 2007.In the second phase. The ZooZoo ads have melted the millions of Indian hearts making it more popular than India Premier League. zoozoo t-shirts. etc. Twitter. named ‘ZooZoo’ have got an exception to it. where they have a huge followings. YouTube. The Hutch network was
. zoozoo mugs. Zoozooz have themselves become a brand and it will be interesting to see how Vodafone uses this concept in future to promote their services. which was another wise decision. Now Vodafone has announced to launch the Zoozoo goodies like zoozoo toys. Vodafone promoted these characters on social media sites. zoozoo keychains. The slogan “Wherever you go our network follows’ was closely tied up with the Hutch – Pug campaign. Orkut.
cutting-edge. Hutch was able to make a close connection with the people through this Hutch. who is normally a very cute kid. high on features (value added services). Lets look at these ads.MAKE THE MOST OF NOW: Vodafone is one of the leading global brands and in brand value ranking 2008. one would definitely fall in love with the brand. with high spends in R&D. The Hutch network was personified as the dog and the Hutch brand automatically drew the brand personality of being adorable.personified as the adorable pug dog following the owner. Hutch leveraged this popularity of the dog and used the dog in its websites and in all its communications. The ads had a very simple message that was communicated through the dog with backdrop of a beautiful song.Pug dog campaign and will this relationship sustain after its acquisition by Vodafone. The dog became the brand ambassador and a great brand asset to Hutch. After watching these above ads. THE VODAFONE BRAND. The dog was named Hutch dog and became very popular in India. Vodafone’s brand essence is:
. Vodafone brand enjoys the image of being youthful. cute. Vodafone is ranked as the 11th in the world and 2nd in Europe.
Though both Hutch and Vodafone ads are captivating. Vodafone very well understood that Hutch dog represents the network and communicated the change to Vodafone beautifully without losing the charm present in earlier Hutch ads. Unfortunately. Vodafone ads are also very good. Yet. in different way. but. You might have noticed that the new Vodafone ads liked girls than boys and have changed the song. the hutch
. they are in different ways. Vodafone differentiates itself from other telecom operators through its value added services (VAS) and it wanted to educate the customers about it.Red: For the passion and spirit. Rock Solid: dependable and empathetic Restless: always challenging to improve and being funny. these ads resembled Hutch ads closely. When Vodafone acquires Hutch. will the Hutch’s brand personality of being cute fade out and become more funny and youthful? VODAFONE INDIA LAUNCH: Vodafone spent around 50 million USD ( 250 Crores INR) for this brand transitioning. Vodafone continued to use the Hutch dog in their commercials. Later.
These ads didn’t appeal much although communicated the message very well. TheVodafone’s services were personified as quirky and lively personalities named ZooZoo. The ads were no more sweet and cute although they had a wider appeal owing to the young generation in the ads and the intentional humor. Hats off to Vodafone for being glocal (Global and local ) in their approach.
. I can hear the whispering that the Hutch’s ad are ‘cute’ again or even ‘cuter’. rather it created a whole new persona for itself in the Indian telecom market. But just when everyone thought that these cute ads have grown into adults there came the savior – ZooZoo ads by O&M. it didn’t. Vodafone India understood what Hutch stood for and tried to connect to people in the same way. Vodafone could have forced its global appeal to Indian market but. The comical way of communicating the message brought in the good old connection what Hutch earlier had with people. This confirms that there are no global brands but there is definitely global brand management. They simply did the job of communicating the various VAS in a fascinating way.dog had its limitations and was fired from the commercials and Vodafone brought in traditional commercial with adults to stress on the VAS.