Vodafone completed the acquisition of Hutchison Essar in India in 2007. It launched with the "Hutch is now Vodafone" campaign and offers prepaid and postpaid mobile services across India. Vodafone uses characters like Zoozoos in their advertising to promote their services in a cost effective manner. Their strategy of using simple cartoon characters instead of celebrities helped them save on costs and create a positive brand image. This report provides an analysis of Vodafone's business in India including their target market, products, pricing, promotion and position in the competitive telecom industry.

1. • PREPARED BY: -
 ASIT DHOLAKIA. (114)
PROJECT
REPORT ON
VODAFONE
Submitted to : -
Dept. of
commerce and
Management

2. Hutchison Essar
Established - 1994
An Essar group and Hutchison Whampoa undertaking,
Acquiring the cellular mobile license for Mumbai
It has a nationwide market share of 16.4 %
The fourth-largest Indian operator.
'Most Respected Telecom Company‟
'Best Mobile Service in the country'
'Most Creative and Most Effective Advertiser
of the Year'.

3.  Vodafone, the world‟s leading mobile telecommunication company,
completed the acquisition of Hutchison Essar in May 2007
Launched in India on 21st September 2007
Welcomed in India with the “Hutch is now Vodafone”
campaign
Offers both prepaid and postpaid GSM
cellular phone coverage throughout India
with good presence in the metros
'Most respected telecom company‟
'Best mobile service in the country‟
„Most creative and most effective advertiser
of the year'
Vodafone Essar

4. Essar Group
Sashi and Ravi Ruia, the Indian brothers behind the Essar
conglomerate.
The Essar Group is a diversified business corporation with a
balanced portfolio of assets in the manufacturing and services
sectors of
Steel, Energy, Communications, Shipping Ports &
Logistics,
Essar employs more than 50,000 people across offices in Asia,
Africa, Europe and the Americas.
AV

5.  The Name Vodafone
comes from Voice data
fone, chosen by the
company to
“Reflect The Provision
Of Voice And Data
Services Over Mobile
Phones.“
 Speech mark
logo, suggesting
“conversation”

6. Services
 Tunes & Downloads
 Entertainment
 Devotional
 Sports
 News & Updates
 Call Management Services
 Finance
 Travel
 Mail, messaging & more
 Dial in Services
 Bill Information

7. Products
 Prepaid
 Postpaid
 I-Phone 3G
 Magic box Handset
 World Calling Cards
 Gulf Calling Cards
 Vodafone PCO
 Vodafone Handy phone

8. STP Analysis
Segmentation :
 Income
 Age
 Service usage
 Life of service
 Geographical condition

9. Targeting: -
 Vodafone is adopting multi-segment approach.
They are offering a series of differentiated products to their
respective markets.
 Home calling cards for the families of those
professional who use to work abroad.
 Rs. 10 recharge for small user.
 Cheap SMS facility for youth
 Facilities for circle users.
• AV

10. Positioning: -
 “Where you go the network follows you “
 Hutch , as a brand, always tried to connect with consumers in simple,
honest and real manner, while Vodafone is more young and fun brand.
So consumer will see a shift reflecting a more vibrant brand.
 The “pug” [Dog], Zoo-Zoo and actor Irfan Khan will be retained for
the brand position.
 They are talking about the exclusivity of the network and the service
they are offering to the customer.
• AV

11. 4 P‟s
1. Product: -
A product with many different features
provides customers with opportunities to
 chat,
 play games,
 send and receive pictures,
 change ring tones,
 Receive information about travel and
sporting events,
 obtain billing information
Vodafone live! provides on-the-move
information services.

12. 2. Place: -
 Vodafone UK operates over 300 of its own stores.
 It also sells through independent retailers.
 Customers are able to see and handle products they are
considering buying.
 People are on hand to ensure customers‟ needs are matched
with the right product and to explain the different options
available.
AV

13. 3. Price: -
 Vodafone wants to make its services
accessible to as many people as
possible: from the young, through
apprentices and high powered
business executives, to the more
mature users.
 It offers various pricing structures to
suit different customer groups.
 Monthly price plans are available as
well as prepay options. Phone users
can top up their phone on line.
AV

14. 4. Promotion: -
 Vodafone works with icons such as Zoo zoos &
Pug(Dog) to communicate its brand values.
Above the line
 Advertising on TV, on billboards, in magazines and in
other media outlets reaches large audiences and spreads
the brand image and the message very effectively. This is
known as above the line promotion.
Below the line
 Stores have special offers, promotions and point of sale
posters to attract those inside the stores to buy.
 Vodafone's stores, its products and its staff all project the
brand image.
AV

15. Promotional/Advertisement strategy
 Class – Television;
 Broadcasting Target – DD News & Regional channels & Daily Shops
Channel, Sports Channels.
DD News : Since Rural Indians are keen watchers of news
 Class- Radio-FM;
 Broadcasting target: AIR, channels like Vividh Bharti, Radio Mirchi etc.
All available radio channels (Both Local & National) Jingle in Hindi & local
language
 Web World;
 Websites like Face book,
Google, Yahoo, Msn YouTube
Stock market Websites.

16.  Print
 Local News paper like Times of India, Divya
Bhaskar, Gujarat Samachar, Sandesh, etc
(Full page Ad)
 Outdoor
 Hoardings
 Outside Gram Panchayat
 Wall Paint
 Glow Sign Boards At Local Grocery Stores
 In Metros at the traffic signal on digitalize posters.
 Scheduling
 Television : Pulsing

17. PUBLIC RELATION
 Sponsorship
 Athletes
 Sports events (football), Boxing events,
Cricket
 Entertainment shows like Big-boss, MTV
Splits villa etc.
 Excellence in academics: Scholarships
 Big institutes/Rural school: 200 schools in
100 villages
 Colleges cultural programs
 Using low cost celebrities
Using Irrfan Khan to promote trials

18. Smart Advertising Technique
 Days before zoo-zoo…
 Pug‟ taken over from Hutch, was the
lucky charm for Vodafone.
 IPL 2008 had Vodafone going in Pug for
its „Happy to Help‟ service.
 20-30 seconds ads with the message
about the VAS. And ending with “Make
the Most of Now”

19.  Zoo-Zoo Rocks !!!!!!
 The ads were created by (O & M)
Ogilvy & Mather, an agency under
Executive Creative Director, Rajiv
Rao, South Asia.
 Advertisement characters promoted
by Vodafone during the India
Premier League Season 2 (IPL).
 The Zoo-zoo campaign won three
accolades – two Gold and one Silver,
at the Asia Marketing Effectiveness
(AME) awards ceremony.

32. HOW THEY MADE THESE
WONDER ACTUALLY ???????

33.  Animations 10-15 times costlier than real people.
 Zoozoos had low cost costumes.
 Speedy Schedules.
 30 advertisements cost only Rs 3 Crores.
 20-30 sec long.
Costs

34. Learning's
 Low cost ads can make good impact
 The strategy of strong advertising not only
saves lots of money but also creates a positive
impact in society regarding their brand.
 Expensive Brand Ambassadors could be
avoided
 Advertises more relate to common man ,leads
to more customers.
 Within a very short period they acquire 3‟rd
place in communication market.
 Most Importantly
‘Keep it simple’

35. Market Share in
Telecom sectorCompetitors in Market

36. Operator Subscriber base
Bharti Airtel 118,864,031
Reliance
Communications
93,795,613
Vodafone Essar 91,401,959
BSNL 62,861,214
Idea Cellular 57,611,872
Tata Teleservices 57,329,449
Aircel 31,023,997
Spice 4,875,913
DOCOMO 3,042,741
All India 525,147,922
Position Of Vodafone
Essar in India after
acquisition of Hutch
(Rank 3rd from 4th )

37. SWOT Analysis
STRENGHTH
 Easy and cheap moving picture leading to
low production cost.
 No celebrity endorser - No associated risks
and costs.
 Representation of a common man depicted
as a cartoon character ZOO-ZOO.
 Campaign penetrated both in the media as
well as in social networking sites
 Globally renowned Brand name

38.  WEAKNESS
 Rural India unable to relate to
the brand.
 Average Network coverage in
Compared to other Rivals.
 Low Research & Development.
 Price competition from
BSNL/MTNL.

39. Opportunity
 Revolution in the conventional
way of advertising that was through
public figures and celebrities.
 Low advertising cost leading to
provision of cheaper services.
 Diversification into new areas.
 More Focus on Rural Area
Segment.
 Latest and low cost technology.

40. THREATS
 Competition from Indian
players already present in
rural circles.
 Obvious threat from other
mobile tariffs e.g. Virgin,
BSNL, MTNL.
 New entrant's low price
offering.

41. Conclusion
 Low cost ad‟s can make good impact.
 Concept is important.
 Within a very short period they acquire
3‟rd place in communication market.
 Win-win situation for shareholders,
employees & the environment.
 Good Care of Customers & Make good
Relationship with them because after all..
“ CUSTOMER IS THE KING OF THE
MARKET .. “

43.  Presentation Exclusively Prepared By:
 Asit A. Dholakia (MBA -Finance & HR)
 At K.S.K.V KACHCHH UNIVERSITY ---SEM- II
 Thank You.