Vodafone In India - Brand Management http://www.bignerds.

com/print/Vodafone-In-India-Brand-Management/7777

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 Kong-based 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’s 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
persons’ 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).

India’s 1.1 billion population currently boasts a mobile telephone penetration rate of just 13 per cent. But it is
growing by more than six million subscribers every month, making it the fastest growing market in the world
and the focus of the industry.

At the start of the decade, India was pretty much a telecom backwater. But now, India’s tele-density has
grown by about 100 per cent to 17.16 per cent over the past two years. Last year it actually grew at a faster
rate than China for the first time in new mobile phone connections.

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Even as the mobile telephony market in India is booming, the number of fixed line telephone subscribers
dropped, suggesting that first-time users of telephones are opting for mobile phones. The number of fixed line
subscribers was down to 40.43 million in December as compared to 48.43 million a year ago.

Mobile penetration in India is growing rapidly and it is becoming increasingly rare to see anyone without a
'hand-phone' as they are known, whereas growth of internet access at home is much slower. Rather than
listing a web address, many billboard ads offer an SMS short-code which people can text to get more
information. There are expected to be somewhere around 200 million subscribers by the end of the year, with
around six million customers being added every month, so the Indian market is certainly a growth one, with
increased mobile internet access expected to push up average revenues per user.

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; new and more multifunctional handset with
features like cameras, FM radio and mobile video. Also, India is the largest untapped market where the 20%
of the total world's population lives. The Indian telecom industry recently witnessed its biggest deal -
Vodafone bidding for 67% stake in Hutch-Essar.

The telecom market is at a stake with $22 billion which is expected to double by 2010. The dramatis personae
include leading names of India Inc—Sunil Bharti Mittal, Anil Ambani, Kumar Mangalam Birla, Ratan Tata
and A K Sinha (of BSNL) — not to mention the 51-year-old Arun Sarin of Vodafone, whom the Hutch puppy
will follow dutifully henceforth. But for a nation of 1.3 billion people, India’s tele-density of 17% is dreadful.
And therein lies both the opportunity and the challenge.

About Vodafone

Vodafone is the world's leading international mobile communications company. It presently has operations in
25 countries across 5 continents and 40 partner networks with over 200 million customers worldwide.
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, Energy, Power, Communications, Shipping & Logistics and Construction. The Group has an
asset base of over Rs.400 billion and employs over 20,000 people.
Launch of Vodafone Essar

Vodafone Essar was launched in India on 21st September 2007. Vodafone was welcomed in India with the
“Hutch is now Vodafone” campaign. The popular and endearing brand Hutch was transitioned to Vodafone
across India. This marked a significant chapter in the evolution of Vodafone as a dynamic and ever-growing
brand. This brand unveiled nationally through a high profile campaign covering all important media.

Vodafone, the world’s leading mobile telecommunication company, completed the acquisition of Hutchison
Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007. 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. It is even larger than Hutch’s own previous brand transitions. The migration from Hutch
to Vodafone was one of the fastest and most comprehensive brand transitions in the history of the Vodafone
Group, with 400,000 multi brand outlets, over 350 Vodafone stores, over 1,000 mini stores, over 35 mobile
stores and over 3,000 touch-points rebranded in two months, with 60% completed within 48 hours of the
launch.

The Vodafone mission is to be the communications leader in an increasingly connected world – enriching
customers’ lives, helping individuals, businesses and communities be more connected by delivering their total
communication needs.

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ANALYSIS

The major reasons for Vodafone to make a move in the Indian market was that, India, among the European
investors, is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of
power and infrastructural deficiencies. India presents a huge potential for overseas investment and is
vigorously encouraging the entrance of foreign players into the market. No company, of any size, aspiring to
be a global player can, 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, underestimation of its
difficulty or overestimation of its possibilities can lead to failure. While calculating, due consideration should
be given to the factor of the inherent difficulties and uncertainties of functioning in the Indian system.
Entering India's marketplace requires a well-designed plan backed by serious thought and careful research.
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. It
is also the second largest among emerging nations. 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.

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.
Vodafone is to be the leading telecommunication company in India, by making customers uses their mobile
communications and making their life more fulfilled due to their experience; and by making mobile
communications the primary means of personal communications.

Vodafone has a strong aim to help people find information, entertainment or assistance wherever they are.
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. Right now, they are introducing new
mobile services that will make Vodafone an even more important part of customers' lives.

COMPETITORS OF VODAFONE

PLAYERS OF INDIAN TELECOM

• Vodafone
• Airtel
• Reliance Communications
• IDEA/Spice
• Aircel
• TATA Indicom
• BSNL
• MTNL
• HFCL Group
• BPL Mobile
• Shyam Telecom Ltd.

AIRTEL

Sunil Bharti Mittal promoted Airtel, has been a leader among the private players with a 23% market share.
The company’s idea to focus on marketing and services by outsourcing everything else including network

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management, customer care and IT infrastructure, is a case study in itself. According to the Joint Managing
Director of Airtel, they have always believed that telecom runs on economies of scale. In this process, they
bring down the cost per minute and pass it on to customers. Vodafone also benefited from closely watching
Airtel in action, and this is also a reason why both companies have not parted ways completely.

RELIANCE

Reliance Communications, though a late entrant, has climbed the subscriber charts, riding on its data-efficient
CDMA networks. The Rs. 500 Monsoon Hungama scheme speaks volumes of the company’s marketing
acumen as it roped in a million customers in one stroke. Reliance today has a centralised data centre and over
20,000 software and application developers. It has also successfully played the value added services game by
offering over 2,500 mobile content applications over its Reliance Mobile World platform. The company
currently has a CDMA 1X network, which is good for data services and can deliver Internet speeds up to 144
kbps. Their strength is in the ubiquity of our networks, the coverage and the voice and data quality that they
offer. Their bouquet of services and content meet the customer’s needs, and the demand will remain
unmatched for some more time to come. Basically Reliance knows how to slice and dice the market. They are
better placed with CDMA to offer 3G or data services. But with SIM cards—absent in CDMA handsets
now—being commoditised, and GSM adding more customers, they would like to take on GSM players on
their own turf. However, with other companies too spelling out their strategies for rural areas, it remains to be
seen how the company will maintain its current growth rate.

TATA INDICOM

Tata Teleservices (TTSL), the other CDMA operator, has been slowly but steadily gaining market share. The
company, with 16 million subscribers and presence in 20 circles together with its sister concern Tata
Teleservices Maharashtra, operates under the Tata Indicom brand. Their present market share is about 10%
and by 2011, they estimate to have a 20% market share. If they get there, they will be among the top 2-3
players in the industry. Unlike Reliance, the company has lagged in marketing and customer awareness about
its offerings.

TTSL had won 242 short distance charging areas under the universal service obligation tender and claims to
have taken tele-density in these areas from 0.1% to 20%. This experience had taught them a lot and they plan
to apply this learning to tap the rural opportunity.

BSNL

In terms of subscriber numbers, BSNL is among the top three, having gained market share by default, as it is
the only operator in many rural areas. The recent tender for 60 million GSM lines is just one pointer to the
company’s scale of operations. But it is losing out fast to private players and has to really wake up from its
slumber. However, the power supply unit can give any company a run for its money with the copper it has
sunk over the years throughout India.

IDEA

Idea Cellular is the dark horse in the telecom race. The company got listed only recently and raised $480
million after its IPO was oversubscribed 57 times. Though present in 13 select circles, the company has
managed a fair market share in rural areas; in Haryana, Maharashtra and UP (West), it is ahead of the big four
with over 20% market share. They are among the leaders in eight circles, which make up half the national
market and enjoy preference compared with many big names. Mobile telecom in India is an aggregation of
circle markets and is not one homogeneous market.

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Quality of service holds the key to retaining customers and reducing the churn rate. Unlike developed markets
where quality of service defines the customer retention capacity of a telecom operator, this differentiator has
been missing in India and the entry of Vodafone has helped in raising the bar. It is at the quality of service
level that regional players like Aircel and Spice who are planning an all-India rollout or HFCL and Shyam
Telecom can play a differentiator. With significant consolidation being ruled out for the next three to four
years, the fight would be decided on how one operator is relevant and different from others. With 3G round
the corner, the big players would like to make that their USP. But for operators who are concentrating on
rural markets, a lot will depend on the spectrum cost and licence fee and 3G could be limited to select areas.
With the game evenly poised, it would be interesting to watch how companies play their cards in the coming
years.
COMPETITIVE GROWTH OF TELECOM COMPANIES

Vodafone, world’s No. 1 mobile telecom company, by revenue face intense competition from incumbents as
well as new entrants in India. 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. In the third quarter which was around at the end of
December, Vodafone reported a 4.2% increase in revenues, that is, around Rs. 71,992 crores. This helped in
having almost 56% growth in Vodafone India’s revenues.

In the initial three months till December, Vodafone saw its global mobile subscriber base grow by around 10.8
million to 252.3 million. While India contributed 4.2 million to this number, all Europe, including the UK,
Germany, Italy and Spain, contributed to 2.58 million.

In May 2007, Vodafone acquired a 52% stake in India’s Hutchison Essar Ltd for $10.7 Rs4,2061 crores in
order to gain a foothold in the Indian mobile market, which adds around 8 million subscribers every month.

By September 2007, Vodafone Essar Ltd had overtaken the state-run Bharat Sanchar Nigam Ltd in terms of
number of mobile subscribers. As of 31st December, the company’s market share of 17.3% put it behind
Bharti Airtel Ltd at 23.6% and Reliance Communications Ltd. at almost 18%.

Vodafone, much like other telecoms in India will face competition in the coming months with as many as nine
new companies such as Unitech Ltd. and Reliance Communications set to offer GSM-based phone services in
India. GSM is the dominant wireless technology platform in India.

In December, Bharti Airtel, Idea Cellular Ltd and Vodafone Essar formed a joint venture called Indus Towers
Ltd with some 70,000 towers being shared by the operators in 16 Indian states. By sharing more telecom
infrastructure, Vodafone is looks to offer phone services at lower costs, even as average revenue per user
continues to fall.

Vodafone’s India operations have recorded a 50% growth in turnover at Rs 15,288 crore in fiscal 2007-08. In
contrast, its global operations have grown by only 14 per cent during this period. India accounts for 5 per cent
of its global revenues.

For Vodafone, India has been the fastest growing market, even ahead of geographies such as Turkey. The
country also scores well on the profit margin front, with Indian operations registering higher profitability than
the UK and the Netherlands markets. But in terms of subscriber base and revenues, the performance puts
Vodafone behind Bharti and Reliance Communications. The monthly subscriber additions have been healthy
at the rate of 1.5 million subscribers, resulting in a subscriber base of 44.1 million as of March 2008.

Bharti Airtel and Reliance Communication, however, have better operating margins on a higher revenue base.
Vodafone has attempted to shed its ‘premium’ image with offers such as ‘chota recharge’. While this would
have aided customer additions, it could have also resulted in lower realisations.

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The packaging of services along with low-priced handsets, to cater to the mass market and Vodafone’s high
decibel ad campaign to establish its new identity, may also explain lower margins. Average revenue per user
has come down over the year for Vodafone, but is still higher than that of Reliance Communications and Idea
Cellular.

In India, as with other operators, Vodafone’s rural foray will mean more strain on margins; but once it
consolidates margins may improve. As a partner in Indus Towers, along with Bharti and Idea, the company
may expect savings on tower infrastructure expenditure too.

PRODUCTS AND SERVICES

PRODUCTS

• Post-paid Services
• Pre-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.
• Home Calling Cards
Vodafone Home Calling Card is a Pre-paid calling card that allows one to make calls from landlines, PCOs &
mobile phones from over 100 countries. And helps save up to 90% as compared to International Roaming
charges. So talk more, spend less and always stay connected.
• Handyphone
Vodafone Handyphone is a landline that’s loaded with all the features of a cell phone - including low call
rates. And Vodafone Handyphone isn’t that expensive either. One can make it theirs for Rs 1999.

SERVICES

• Tunes & downloads

• Entertainment
• Devotional
• Sports
• News & Updates
• Call Management Services
• Astrology
• Finance
• Travel
• Mail, messaging & more
• Dial in Services
• Bill Info
RE-BRANDING STRATEGIES – Hutch to Vodafone

MARKETING STRATEGIES
Vodafone’s new advertising campaign in India carried on with the same popular pug that has become a brand
ambassador for Hutch. ‘Where ever you go, our network follows,’ was the previous slogan with the pug
following the child wherever he goes. Now, with Hutchison Essar becoming part of the Vodafone Group, the
new campaign had started with Vodafone Essar earmarking Rs. 2.5 billion on the transition from Hutch to
Vodafone. The main message of the brand transition exercise: The new Vodafone is the same old Hutch. In
the advertisement, the pug sees a new home when it returns after an outing and feels the change is better. The

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new catch phrase will be ‘Make the most of now.’

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. Vodafone used all of the commercial airtime
across all 13 channels in five languages (Hindi, Tamil, Bengali, Marathi and English) from 9 pm on 20
September to 9 pm on September 21. This exercise included TV commercials, transition bumpers and contest
spots to promote the Vodafone Essar brand. Commercial spots had also been purchased on Sony.

Conventionally awareness for a new brand takes some time to build. However, Vodafone wanted to achieve
this task at the shortest possible time. Hence, 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. Considering that the Star Network is the lead network in India, this
was the most apt platform for Vodafone launch. This strategy helped not only in achieving build rapid brand
awareness but also breaks the clutter during such an important launch in the most happening category -
telecom. This is a first of its kind mega media initiative in India by any brand. While the campaign was heavy
on television, it also included all other media vehicles. The print campaign kicked off on 21 September, a day
after the television splash.

While the brand campaign had been addressing the transformation, the Company, on the other hand was
swiftly preparing for a price war in the Indian telecom space. Indeed, it was preparing to provide mobile
handsets to new subscribers at ultra-cheap prices, ranging from about $19 to $25.

Vodafone Essar launched low priced cell phones in India under the Vodafone brand, and also co-branded
handsets sourced from major global vendors. By bringing in millions of low-cost handsets from across the
globe into India, Vodafone Essar distributed bundled handsets through its existing 400,000 distribution
outlets. By flooding the market with its low-cost handsets, Vodafone also became a mass mobile phone brand
like Nokia, Samsung, Motorola, and Sony Ericsson in addition to continuing as telecom services provider.

Previously, similar handset-driven expansion strategies to grow subscriber bases were adopted by CDMA
players, like RCOM and Tata Teleservices. Vodafone is the first GSM operator to follow suit.

The Vodafone mission is to be the communications leader in an increasingly connected world - enriching
customers' lives, helping individuals, businesses and communities be more connected by delivering their total
communication needs. Vodafone's logo is a representation of that belief - The start of a new conversation, a
trigger, a catalyst, a mark of true pioneering.
ADVERTISING STRATEGIES

Advertising is probably one of the most frequently used vehicles for Rebranding, as it is fairly easy, flexible
and quick to change. It is a powerful way of reaching a broad or targeted audience quickly and is effective at
signalling a change in positioning, however real or broad that may be. There are many examples of where
advertising has either repositioned or strengthened brands, 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.

The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had a two-fold task to
achieve: announce the entry of Vodafone into India and highlight the metamorphosis of Hutch into Vodafone.
O&M realised that they had a fantastic property in the Hutch pug, which they had been using for about five
years. Therefore, to show the transition from Hutch to Vodafone, O&M launched a rather direct, 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. A more energetic, chirpier version of the ‘You and
I’ tune associated with Hutch was played towards the end, and it concludes with ‘Change is good. Hutch is

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now Vodafone’.

O&M has also rolled out four Commercials featuring Hutch’s animated boy and girl, ‘introducing’ the new
brand’s logo to consumers. The four creatives which were of five seconds each included the duo peeping over
a wall to see the logo; parasailing with the logo flying high behind them; releasing a rocket bomb wherein the
explosion reveals the logo; and lastly, drawing curtains aside to show the logo.

Four other ads with the pug did the rounds of telly screens. These five and 10 second spots cast the dog in
situations where he, literally, saw red, using the colour as a visual mnemonic to remember the brand by. The
pug was shown in a red basket, popping up from a red cart, drying himself on a red mat, and hiding in a red
blanket. Each of these made use of the ‘Hutch is now Vodafone’ tagline.

The print ads, in all major languages in several leading dailies, were kept unbelievably simple: a still shot of
the pug inside a red kennel. The same creative was used in outdoor hoardings as well, in all the 16 circles in
which Vodafone now operates.

It wasn’t easy integrating Vodafone with Hutch; the latter, as is known, is a subtle, understated brand, while
globally, Vodafone represents high energy, dynamism and young vitality – all represented by its bright red
speech mark logo. And so they put in elements such as a more energetic tune and feel to the ads.

A few advertisements include:

Hutch is now Vodafone

If you watch any of the star channels or tuned into 20-20 world cup, you would have seen this ad. On 11
February 2007, 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". This required nearly 250 crores of
spending by Vodafone but they have successfully painted the town red. 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.

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. 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. This ad creates a wonderfully subtle message which really puts the point of chota
(small) credit across.

PESTEL Analysis

Political
Political factors play an important role in the development of the network operating industry. Political factors
could include the provisions of certain laws, and pressures from certain pressure groups. The licensing of
certain frequencies plays an important role in the development of the mobile operating network. A Company
could only begin to use a frequency once they have been granted to them by the local authority. There are
other Governmental and legal issues affecting basically how the company operates. For instance it can be
regulation, infrastructure, and banning of phone use in certain circumstances.

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Economical
The economic environment is dependent and influenced by the country’s economic policies. These include
the rates of economic growth, inflation; consumption patterns, income distribution and many other economic
trends determine the nature of the products and services provided by Vodafone. High-income levels will
result in an increase of usage of the Vodafone mobile services. There are other factors that influence the
purchasing power of customers and the company, like cost of capital and cost of 3G licenses.

Social
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. There are certain demographic and cultural aspects of the environment
which influence customer needs and the market size. Social trends and other mobile etiquettes are factors that
any mobile customer would follow. This is because among this crowd going with the mobile trend is more of a
fashion statement. There are people for whom camera phones, high memory space, etc come under the latest
trends.

Technological
The success of technological development plays the most important role in the success of telecommunication
companies. In the network operating industry, technological development is based on the increase in
efficiency and quality in the transfer of voice calls, and data between mobile phones. Vodafone's competitors
are now offering the same GSM handsets as Vodafone. This shows that technology is feasible in the market of
network operators. Also, Vodafone’s competitors like Airtel, Idea, etc are planning to come out with the 3G
technology which further increase the competition to a great extent.

Environmental
Environmental factors also play an important role in the development of network operating industry. The
government is forcing Vodafone and other telecom operators to become more environmentally conscious. For
instance, while putting up towers, they have to keep various factors in mind. The action of the companies is
being monitored making sure they are environmentally friendly. Any negative 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. This means that development cost will need to be done to produce
handsets that attract low radiation.
STP ANALYSIS

Segmentation
Vodafone’s services are spread wide across India. Therefore, the segmentation can be done based on the
geographical conditions. Also, segmentation by Vodafone is done based on the service usage by the customer.
For instance, usage in terms of Post-paid or Pre-paid and further, services can be defined as the customers
who would prefer caller tunes, or know about the financial, or interested in astrology. To an extent, 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, 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.

Targeting
Vodafone is adopting a multi-segment approach. They are offering a series of differentiated products to their
respective markets. For instance, they have come out with Home calling cards for the family to those
professionals who use to work abroad. They are targeting middle class customers which can be clearly
justified by their products they are offering like Rs. 10 ‘chota’ recharge, inexpensive SMS facility for the

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youth.

Positioning
Initially, Hutch positioned themselves as “Where you go the network follows you”. Hutch is a brand that
always tried to connect with customers in a simple, honest and real manner, while Vodafone is a more of a
young and a fun brand. 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. Also, actor Irfan Khan
has been restrained for the brand promotions. Vodafone have always talked about the exclusivity of the
network, and the services they are offering to the customers very effectively.

CONCLUSION

The acquisition of interests in Hutchison Essar accelerates Vodafone's move to a controlling position in a
leading operator in India, and this has significantly increased their presence in emerging markets. With market
penetration of around 14% and with a population of over 1.1 billion, India provides a very significant
opportunity for future growth.

The transition of Hutch to Vodafone is estimated to be a mega Rs 200-crore campaign with multiple media
channels being used to convey the message. Coincidentally, both brands already have an upmarket image in
their respective markets and so transferring the values and emotions was not difficult for the mobile telephony
brand.

To move seamlessly from one brand name to the next, bringing in a familiar mascot is what is expected to do
the trick in convincing consumers. The important element in the changeover was to move without a glitch
from Hutch to Vodafone with a positive attitude, while carrying our customers along with them. The pug is
synonymous with Vodafone’s robust network and is the most endearing symbol of the brand. The baseline,
Change is Good, implies that even if a well-loved brand changes, there are always positive aspects to it in the
long run.

Vodafone says it wants to make its Indian unit the number one mobile provider in India by 2010. It has
already moved up to third from fourth place since being acquired, overtaking state-owned Bharat Sanchar
Nigam Ltd (BSNL).

So far India's "mobile revolution" has been mainly confined to the cities, but there are certain analysts who
say that the real prize lies in its vast rural areas, where nearly 70 percent of the country's 1.1 billion
population live. Hence, 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.

REFRENCES

1. Article: TeleCalm before the storm, Outlook Business

2. Article: Brand new impact, Business Line

3. http://afp.google.com/article/ALeqM5h0Ag13YpoQKLByzpqdsH7z8AoHoQ

4. http://www.afaqs.com/perl/news/index.html?sid=19184

5. http://www.indiantelevision.com/mam/headlines/y2k7/sep/sepmam89.php

6. http://www.vodafone.com/start/investor_relations/strategy0.html

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