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.

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 Hutchs 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 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 Indias 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).

Indias 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, Indias 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. 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 IncSunil 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, Indias 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 worlds 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 Hutchs 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 individuals, businesses and communities be more connected by delivering their total communication needs.

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 Indias 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.

Players of Indian Telecom

VODAFONE AIRTEL LOOP MOBILE RELIANCE COMMUNINCATION IDEA/SPICE AIRCEL TATA DOCOMO MTNL

COMPETITIVE GROWTH OF TELECOM COMPANIES

Vodafone, worlds 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 Indias 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 Indias 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 companys 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. Vodafones 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 accountsfor 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. The packaging of services along with low-priced handsets, to cater to the mass market and Vodafones 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.

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.

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 thats loaded with all the features of a cell phone - including low call rates. And Vodafone Handyphone isnt that expensive either. One can make it theirs for Rs 1999.

SERVICES
TUNES & DOWNLOADS ENTERTAINMENT DEVOTIONAL SPORTS

CALL MANAGEMENT SERVICES ASTROLOGY FINANCE TRAVEL MAIL, MESSAGING & MORE DIAL IN SERVICES BILL INFO

MARKETING STRATEGIES
Vodafones 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 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 now Vodafone. O&M has also rolled out four Commercials featuring Hutchs animated boy and girl, introducing the new brands 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 wasnt 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 thelocal 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.

Economical
The economic environment is dependent and influenced by the countrys 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, Vodafones 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
Vodafones 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 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 200crore campaign with multiple media channels being used to convey the message. Coincidentally, 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. To move seamlessly from one brand name to the next, bringing in a familiar mascot is what is expected o do the trick in convincing consumers. The important element in the changeover was to move with out a glitch from Hutch to Vodafone with a positive attitude, while carrying our customers along with them. The pug is synonymous with Vodafones 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, Vodafones 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

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