Vodafone Group

Anonymous. Euroweek. London: Jun 5, 2009.

Abstract (Summary)

This went very well. The issuer is happy with the final result as this is the largest ever single tranche deal for Vodafone in the sterling market. This is a very solid name, and telcos look like an increasingly defensive play in the current climate.

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(466 words)
( (c) Euromoney Institutional Investor PLC Jun 2009) Rating: Baa1/A-/AAmount: pound(s)600m Maturity: 5 December 2017 Issue/re-offer price: 99.383 Coupon: 5.375% Spread at re-offer: 240bp over the 4% 7 September 2016 Gilt Launched: Friday 29 May Payment date: 5 June Joint books: BNP Paribas, Bank of America Merrill Lynch, Lloyds Banking Group, Royal Bank of Scotland Bookrunners' comment: This went very well. The issuer is happy with the final result as this is the largest ever single tranche deal for Vodafone in the sterling market. This is a very solid name, and telcos look like an increasingly defensive play in the current climate. Although the sterling market has been strong, there were challenges for this deal as there has been quite a lot of issuance at this maturity. We were keen to tap the December 2017 point of the curve as this offers the best arbitrage to the issuer on a Libor basis. Vodafone has some outstanding December 2018 paper that priced late last year, and also tapped its 2014 notes earlier this year. Both of these deals were priced keenly but still performed well. The longer notes were bid at 220bp over Gilts and the 2014s at 195bp over. However, for the pricing for this deal it wasn't fair to use these outstanding deals as comparables. However, looking at the existing paper on a Libor basis, we set the guidance at 240bp-250bp over Gilts. Most investors thought that the final pricing at the tight end of this offered a skinny new issue premium.

But with the lack of liquidity in the sterling secondary market, we can be a little aggressive with pricing new issues. The book had been just shy of pound(s)1.5bn from around 120 accounts. The majority of demand came from UK institutional accounts, but there were also some non-traditional investors in the book. Despite the level of supply recently, there is not enough credit product in the European market, so they are willing to look at sterling deals. Also, as most people think that sterling is being oversold in the FX market and will appreciate in the short to mid term, there is also an attraction about the currency in general. There hasn't been much trading in the secondary market, just bits and pieces. It's tighter on a Libor basis, but given how the swaps spreads in sterling have moved this week, it's a smidge wider on that basis. Market appraisal: "...I felt that all the real money guys who bought into this would have got what they wanted. Postpricing there hasn't been a huge bid, although the deal hasn't been offered any wider." "...this is the only issuer in the market that refuses to do a deal that trades well. When everything else is trading a good 30bp tighter, I'm not surprised to see that Vodafone is still around re-offer."

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Telecommunications industry, Wireless networks, Bond issues, Brand image Vodafone Group PLC (NAICS: 517212 Anonymous News Euroweek. London: Jun 5, 2009.
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Vodafone cuts lines to challenge rivals

Tom O'Sullivan. Marketing Week. London: Jul 10, 1997. Vol. 20, Iss. 15; pg. 23, 1 pgs
Abstract (Summary)

Vodafone, armed with a L35 million budget, is revamping its operation to give it a uniform brand image. Ad agency BMP DDB, which has helped to build the Vodafone brand for the past 18 months, is working on plans for new advertising to be unveiled at the end of September. For the first time, the company is working a single brand for the entire group.

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(890 words)
Copyright Centaur Communications Ltd. Jul 10, 1997
[Headnote] Vodafone, armed with a L35m budget, is revamping its operation to give it a uniform brand image. Will it work? BY Tom O'Sullivan

When asked if the quotation *mark in Vodafone's new L15m corporate identity looked more like a tear, the company's chief executive Chris Gent said wryly: "We don't think it will end in tears." If it does, Gent, brought in seven months ago, will be out of a job. But in truth the company has no option Vodafone has grown massively in the past 13 years, clinging to an identity that has looked tired and out of date for at least the past five. In the process it has accumulated six branded service providers, developed alternative means of distribution and faced stiffer competition as a result of the launch of Orange and the revamp of One20ne. The purchase of service provider People's Phone for L77m last November made the need to rationalise the group, and update its image through design company Springpoint, all the more necessary. The restructure will be supported by a L35m budget for advertising and sponsorship, including the English cricket team. Ad agency BMP DDB, which has helped to build the Vodafone brand for the past 18 months, is working on plans for new advertising to be unveiled at the end of September. With quotation marks in the logo, expect endlines similar to: "Where there is dialogue, there is Vodafone." "For the first time we are creating a single brand for the entire group," says Vodafone director of corporate affairs Terry Barwick. "This will enable us to maximise the value of our advertising, marketing and sponsorship programme." But the significance of Vodafone's move is beyond the impact on just one network. It heralds the end of the independent service provider - the middleman originally created to allow space for the smaller networks, One20ne and Orange, to grow. Telecoms watchdog Oftel has previously resisted efforts to remove the restriction and as late as last year was still canvassing opinion on whether the barrier to Vodafone and Cellnet's greater market strength should be lifted. In April, Oftel announced "a more liberal attitude" to the restriction on the growth of the big two, but no legal change. Yet it was the acquisition of People's Phone and Cellnet's decision to take a 40 per cent stake in The Dixons-owned The Link chain in April, rather than any change of mind at Oftel, that has fundamentally changed the market. "There are no licence implications," says an Oftel spokeswoman. "There are now four network operators and we consider that it is one of the more competitive telecoms markets. We no longer regulate it as closely as we once did." The restructuring of the mobile phone operator's distribution network will knock L20m off its 1997 profits, cost at least 250 jobs, witness the existing 87 separate payment tariffs cut to between 12 and 20 within 12 months and, contrary to the belief of some industry observers, see names like People's Phone and Talkland disappear from the high street. It will take 18 months to complete with the most immediate, and visible, change being a rationalisation of high street brand names and the adoption of the Vodafone name for all. Vodafone's six service

providers Vodac, Talkland, Vodacom, Vodacall, Astec and People's Phone will be merged into three separate Vodafone-branded business units - Retail, for individuals users; Connect, for individuals and small businesses; and Corporate, for its larger business clients. The Retail unit will be responsible for the near 300 Vodafonebranded outlets. Significantly none of the outlets will now sell connections to rival networks - again, Oftel is not concerned about this. "Vodafone has done what the mobile market has wanted to do for some time," says Hoare Govett telecoms analyst Alan Lyons. "It has got tighter control of its subscribers. It can now unify its billing systems and arrange tariffs in a much more focused way. "This is not unexpected but I am surprised that Oftel has allowed it to happen. I can't imagine Vodafone would have done this without consulting, so Oftel must believe that it does not represent an anti-competitive threat. The mobile market will evolve into one where there are really only four service providers the operators Vodafone, Cellnet, Orange and One20ne," says Lyons. The other operators will be sure to react. "Cellnet does everything Vodafone does, only six months later," says one telecoms analyst. Orange and One20ne are also watching the situation closely, having lost some of their distribution points. All of the mobile operators are now positioning themselves for 1998. There has been a limited price war sparked by the greater coverage achieved by One20ne, but Vodafone's Gent insists there will be no tariff changes this year. "We are the Marks & Spencer of this market; there is no reason to cut tariffs to Asda prices." But many City analysts believe that, privately, he is talking down expectations. If One20ne records further significant subscriber increases in the third quarter of the year, fuelled by its lower prices, then Vodafone could be forced to react, although it will always sell at a premium compared with One20ne. But Vodafone is now arguably better able to react than ever before. Gent is unlikely to be shedding too many tears.
Vodafone: The 'tired' logo is being replaced by the new image (bottom)

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Subjects:

Case studies, Telecommunications industry, Corporate image, Corporate reorganization 9110 Company specific/case studies, 8330 Broadcasting & communications industry, 9175 Western Europe, 2320 Organizational structure, 2420 Image UK Vodafone Tom O'Sullivan Marketing Week. London: Jul 10, 1997. Vol. 20, Iss. 15; pg. 23, 1 pgs
Periodical 01419285

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What's the word on Vodafone?

Ben Rosier. Marketing. London: Feb 8, 2001. pg. 19, 1 pgs
Abstract (Summary)

Vodafone clearly leads the pack in the mobile phone market, however its brand has not been the best. It has been less successful than its rivals in creating a coherent image, and matters reached a head last week when BMP DDB was dropped. Vodafone's business went to WCRS without a pitch. Now, Vodafone is hoping to create the first truly global mobile service brand. The agency shift is part of a strategy to build a reputation as a "go anywhere" service.

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(1217 words)
Copyright Haymarket Publishing LTD. Feb 8, 2001
[Headnote] It's the biggest, but its branding hasn't been the best. Can last week's agency shake-up assure Vodafone's global future? By Ben Rosier

In the mobile phone market, Vodafone clearly leads the pack. It has the number one spot in terms of subscriber numbers, and has built a reputation for quality and consistency, particularly among the business community. The company has pursued an aggressive acquisition strategy, using its considerable resources to snap up Mannesmann last year and build a formidable presence globally; operations and joint ventures are up and running in most key European markets as well as the US and, more recently,Asia. But its brand advertising tells a different story. Vodafone has been less successful than its rivals in creating a coherent image, and matters reached a head last week when BMP DDB, which had worked on Vodafone's business since 1996, was dropped. The UK business went, without a pitch, to WCRS, the agency that built the Orange brand but was left without a telecoms brand when the account went to Lowe Lintas last summer. The marketing and advertising shake-up is not limited to the UK. The L100m international business, only handed to McCann-Erickson in October, is currently being contested by McCanns, WCRS and Wieden & Kennedy. Whatever happens, the agencies face a formidable brief and the stakes are higher than ever. Chris Gent,the CEO who has established Vodafone's credentials with the City, was quoted as saying: "It's a daunting thought, but over half the world have never made a phone call of any kind. So there's huge growth potential we can unlock." Global ambition

With that in mind,Vodafone hopes to create the first truly global mobile service brand. The agency shift is part of a strategy to build a reputation as a "go anywhere" service.The company is also keen to develop cost synergies, not least helping the company get the most of its various sponsorship deals last year saw it back Manchester United to the tune of L30m. The other driver for the global brand is the growth of data services. "Data does not respect boundaries. If you travel abroad you need reassurance that services will work in similar ways, delivering a similar promise and benefit," says Paul Donovan, Vodafone's marketing and commercial director. In a rapidly changing market Vodafone needs to establish an international identity, especially as challengers such as Orange and Virgin Mobile are eyeing up wider markets.Hence its decision in November last year to hire ex-CocaCola, Unilever, and Mars marketer David Haines to the newly created position of global brand director. Haines, overseeing the global review, faces rolling out Vodafone as a virtually unknown umbrella brand, replacing well-known local names such as D2 in Germany, Omnitel in Italy, and Telecel in Portugal. Local sensitivities - already inflamed in Germany by the perceived hostility of the Mannesmann dealwill mean there are pitfalls as well as benefits to rebranding. The question in the UK is likely to be more fundamental: can a single theme encompass Vodafone's various tariffs and services, and help it keep ownership of the subscriber base it has built? Vodafone will no doubt hope that WCRS can replicate Orange's success with its `The Future's Bright' tagline. At least until the late 90s,Vodafone has lacked a core branding message. Several changes of direction have taken the brand from the early `Nobody goes further to keep you in touch' message, to its deliberately more wacky X-Files-style approach, featuring the tagline `Vodafone-you are not alone'. This is in part due to the way the mobile market has developed. Formed in 1983, Vodafone - an agglomeration of `voice','data' and 'phone' - was born out of business electronics company Racal. Although Vodafone and Cellnet had a head start in the market, they were stifled by rules forcing them to operate through intermediaries or `service providers', so they could not sell airtime direct to consumers. When Orange and One 2 One launched in 1993 the market changed.The newcomers were allowed to sell services direct, a situation which led both to introduce more brand-led advertising. Vodafone had already introduced a consumer tariff, but, due in part to its dominance of the business market, Orange and One 2 One made the first mainstream ad push into the consumer market. In addition, Vodafone ran its advertising activity through its corporate affairs department, with the marketing department focusing on channel activity. It was not until 1997, with the redesign of the company logo and the introduction of the tagline `The word is Vodafone', that it really committed itself to large-scale brand campaigns. The appointment of One 2 One's former chief marketer, Paul Donovan in 1999, as commercial and marketing director marked a recognition of the company's need to focus on the consumer. More concerted brand initiatives followed, including last year's `You are here' ads,BMP's last dedicated brand-led campaign for the company. Advertising to the fore

Donovan insists Vodafone is focusing on advertising: "We've recognised the importance of brand and advertising in driving business objectives," he says. "It's fair to say Orange has demonstrated more consistency [in its ads] than Vodafone, One 2 One and BTCellnet." The key to Orange's branding success has been, in effect, `selling the future' in easily understood terms which retained the human aspect of the brand. It wasn't just advertising. Hans Snook, the company's recently departed CEO, effectively communicated how the brand might stretch into other areas, variously describing the service as "an e-wallet" and "a remote control for your life". One 2 One's approach is encapsulated in its personality-led `Who would you have a One 2 One with?' campaign. But all the mobile operators face something of a dilemma. As one telecoms insider puts it: "There is a tension between brand advertising and product benefit advertising. If you can differentiate your brand, you can charge a premium. As we go into the future with WAP and general packet radio services, this will become more of an issue. As an operator would you rather define yourself by cost proposition, or as a premium brand?" He adds: "The problem that all four networks face is that if you take `the future of mobile' positioning out of the proposition, people don't perceive a big difference between them - it's a commodity product." This has been exacerbated by the growth of the prepay market,which has helped to galvanise mobile sales. But with penetration rising, the issue will become customer retention. "We need to build on our current strength in terms of customer perceptions as the market leader. I would seek to add greater emotional proximity to the customer," says Donovan. The arrival of new data services will be a step-change. Vodafone will seek greater differentiation and to introduce more premium services - including those which leverage its relationship with Manchester United. As all the major operators look to recoup the L22.5bn they jointly paid for UK 3G licences, they will need to boost their emotional attachment with subscribers, through branding and additional services.
[Photograph] Vodafone ads: core branding message took off with 'The word is Vodafone, after campaigns such as the XFiles spoof `You are not alone'

[Photograph] Branding shake-up: Vodafone has ditched BMP DDB, which has created its advertising since 1996, for former Orange agency MRS

[Photograph] Prepay: differentiation difficulties

[Photograph] Donovan: 'creating emotional proximity'

MOBILE MARKET

Early days: brand-led advertising in 1993

VODAFONE

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Case studies, Telephone companies, Cellular telephones, Advertising accounts, Market strategy, Advertising agencies, Brand image, Statistical data 9175 Western Europe, 9140 Statistical data, 9110 Company specific, 8330 Broadcasting & telecommunications industry, 7200 Advertising United Kingdom, UK Vodafone Group PLC(Ticker:VOD , Sic:4813 ) Ben Rosier Feature Marketing. London: Feb 8, 2001. pg. 19, 1 pgs
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, NAICS: 513322

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Factors Determining Brand Image, Product Comparison of Proctor & Gamble & Uniliver of Pakistan
Ali Raza Nemati

affiliation not provided to SSRN December 1, 2009 Abstract: A brand is unlikely to have one brand image, but several, though one or two may predominate. The key in brand image research is to identify or develop the most powerful images and reinforce them through subsequent brand communications. The aim of the research is to conduct a study of brand image and provide recommendations for brand image enhancement after theoretical analysis of brand image on sales .This research has been done as a comparison between the products of P&G and Unilever in Pakistan with respect to their brand image that, Does the brand image has any impact on the fast moving consumer goods consumption of different companies Does brand image affects consumer behavior For this research the tool we are using questionnaire. Brand image can be reinforced by brand communications such as packaging, advertising, promotion, customer service, word-of-mouth and other aspects of the brand experience. This would also be seen with having different kind of questions in questionnaire to cover as many aspects of brand image. The results show that there were more users of Unilever Products as compared to Proctor and Gamble with advertising, Customer Satisfaction and Innovation positively correlated with Brand Image. Keywords: Brand Image, Adverstising, Customer satisfaction, Innovation JEL Classifications: Brand Image, Adverstising, Customer satisfaction, Innovation

Food Health Branding: The Role of Marketing Mix Elements and Public Discourse in Conveying a Healthy Brand Image
Polymeros Chrysochou
University of Aarhus - Department of Marketing and Statistics

Journal of Marketing Communications, Vol. 16, No. 1-2, 2010 Abstract: The soaring rates of dietary-related diseases have increased the need for interventions in consumers healthy eating behaviour. The two main avenues followed so far have focused on either making consumers change their food choices or improving the nutrition content of food products. Both avenues are said to have limitations since consumers often base their choices on heuristics that simplify their choices, such as brands. Therefore, branding is considered an important tool in communicating the value of health and contributing towards healthier food choices. However, branding a food product based on the value of health is not an easy practice as strategies employed may often fail to convey the value of health. Based on a case study approach drawn from the Danish food industry, this paper has two objectives: (1) to provide a line of insight on how marketing mix elements are used to convey a healthy brand image; and (2) to explore how brands that are positioned as healthy are dealt with in the public discourse. Keywords: Health, Branding; Food products, Case study, Denmark

A Conceptual Research on the Association between Celebrity Endorsement, Brand Image and Brand Equity

Anjali Tumkur Jaiprakash

affiliation not provided to SSRN

The Icfai University Journal of Marketing Management, Vol. 7, No. 4, pp. 54-64, November 2008 Abstract: This paper presents the findings of an exploratory conceptual research on celebrity endorsement. Literature survey of both theoretical and empirical research on the subject clearly indicates that celebrity product endorsement is a form of co-branding, which influences brand image through meaning transfer from the endorser to the endorsed brand. Celebrity-product congruence has a positive impact on brand image, which in turn has a positive impact on brand equity. While this paper draws up a model based on a conceptual approach, scope for further research lies in validating the same through a primary research. Accepted Paper Series

Brand Positioning: The Case of Mitsubishi Lancer

S. Silas Sargunam
American College, Madurai

The Icfai Journal of Marketing Management, Vol. 6, No. 1, pp. 52-63, February 2007 Abstract: This paper deals with the brand positioning and repositioning strategies of Mitsubishi Lancer. The dynamics of the Indian car industry underwent a complete change with the deregulation of the industry in 1993. However, the new entrants faced early setbacks especially in the luxury segment. Hence, this segment was considered to be unattractive. At that juncture, Hindustan Motors Ltd. entered the luxury segment in 1998 with Mitsubishi Lancer; and the image-positioning strategy of the company paid rich dividends. Apart from emerging as the market leader in the luxury segment, Mitsubishi Lancer expanded the segment beyond expectations. Mitsubishi Lancer remained the market leader till 2001. The attractiveness of the segment motivated other companies to make a foray into the segment. With the launch of cars having better features, Lancer's sales started to decline. At this juncture, Hindustan Motors Ltd. decided to reposition Lancer. The company formulated a two-pronged positioning strategy: It decided to launch low priced variants of Lancer, and simultaneously prepared for the launch of Mitsubishi Cedia as the new Lancer in the D segment. Hence in February 2005, Hindustan Motors launched the cheapest variant of the Lancer, which was priced at Rs. 6.93 lakh. It was positioned as an entry level car in the C segment, thus offering a 'value for money' proposition. On the other hand, Mitsubishi Cedia was identified as the new Lancer 2004. The car, which comes under the D segment, was priced at about Rs. 12 lakh. Company sources claimed that the new Lancer would give another option to the customers to move up the value chain. The case attempts to highlight the appropriateness of the two-pronged strategy where a brand has two diametrical positioning planks. Accepted Paper Series