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Vodafonemarketingcommunicationsby Namita Kumar EEMCS
Vodafonemarketingcommunicationsby Namita Kumar EEMCS
Vodafonemarketingcommunicationsby Namita Kumar EEMCS
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Namita N. Kumar is a Vodafone has been extremely successful, from the beginning, in capturing the mind share of
Professor at the Ajay Kumar Indian consumers with their attractive advertisements; adorable mascots – ‘‘Hutch’’ pug,
Garg Institute of zoozoo’s; the story telling behind the changes in the logo; the brand name. As per the data
Management, Ghaziabad, available on the customer base growth, Vodafone has been quite successful in its marketing
India. communication strategy. But the dilemma of Marten Pieters, CEO, Vodafone Essar Ltd, is
that despite this, the usage rate is low. Customers happily purchase the connection but are
very stringent as far as using the services are concerned. Vodafone, therefore, needs to
rethink and redefine the marketing communication approach.
Company background
Vodafone Essar formerly known as Hutchison Essar, is a Mumbai-based Indian subsidiary of
Vodafone group. The company has operations in India with over 152.664 million customers
(Boneless Research, 2012). It is the second largest mobile operator in terms of revenue
share, after Bharti Airtel, holding a revenue market share of 20.6 percent, and the second
largest in terms of subscribers’ base (Boneless Research, 2012).
This teaching case has been
developed from both primary Vodafone started its Indian operations in 1994 with the brand name Max Touch which was
and secondary sources of renamed to Orange in the year 2000, followed by ‘‘Hutch’’ in 2006. The company initially
information. The author wishes
to thank the management of established its business in the major metropolitan cities, namely Mumbai, Delhi and Kolkata.
Vodafone for providing access Soon it was able to establish a robust network, well-known brand and large distribution
to information and talk with
senior executives. The network in these densely populated urban areas, targeting business users and high-end
secondary sources generally post-paid customers.
refer to the company’s
websites, articles appearing in In February 2007, Hutchison Telecom announced that it had entered into a binding
trade journals and newspapers,
TRAI (telecom Regulatory agreement with a subsidiary of Vodafone Group Plc to sell its 67 percent direct and indirect
Authority of India) reports, equity and loan interests in Hutchison Essar Limited for a total cash consideration (before
company’s product literature,
advertisements in media, etc. costs, expenses and interests) of approximately $11.1 billion. On September 20, 2007, the
Some of these are mentioned marketing brand of Hutch was officially changed to Vodafone.
under the section Sources of
Information. The development All through the journey of its growth in India, Vodafone Essar, has followed a well thought and
of this teaching case study has
been facilitated by Bimtech carefully crafted communication propositions. The regular changes in the brand were
Center for Management Case beautifully integrated in all its communication, thus enhancing the personality of the brand.
Development at Birla Institute of
Management Technology,
Greater Noida (India).
Launch of Max Touch in India
Disclaimer. This case is written
solely for educational purposes The story of Vodafone began in 1995 when it was launched in India by the name Max Touch.
and is not intended to represent This was the year when mobile services were introduced in the Indian market. As a result
successful or unsuccessful
managerial decision making. Max Touch launched itself using the tagline ‘‘Hello Bombay’’ – the idea was to develop an
The author/s may have international brand personality (Rai, 2006). It was able to communicate this by using
disguised names; financial and
other recognizable information celebrities from various backgrounds to endorse it. Until then mobile just meant carrying
to protect confidentiality. cordless phones within the specified area. It became all the more necessary to educate the
DOI 10.1108/20450621211304298 VOL. 2 NO. 8 2012, pp. 1-8, Q Emerald Group Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1
consumers about what mobile telephony was all about? (Rai, 2006). Therefore, most of the
advertisements, such as ‘‘Can I call STD’’; ‘‘Can I use my phone in a lift?’’; ‘‘What is airtime’’,
educated the customers about the advantages of mobile phones’ services. It was also the
first cellular company to establish national roaming in the year 1996 (Rai, 2006).
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PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
between a dog and human to creatively communicate – Vodafone is ‘‘Happy to Help’’ its
customers.
Created by O&M, the new campaign featured Vodafone’s trademark character – the young
girl and the pug (Lad, 2009). Speaking to Campaign India about the campaign, Rajiv Rao,
Executive Creative Director, O&M said, ‘‘This time, we started off wanting to refresh
Vodafone’s customer service promise (Lad, 2009). The promise itself was not new; it has
been a brand philosophy since its launch and the first time we stated this overtly was with the
Happy to Help campaign during the IPL in 2008’’ (Lad, 2009).
Vodafone came out with a series of ZooZoos advertisements, during IPL-2 season (Indian
Premier League – highly popular limited over cricket matches played in India on a league
basis), in 2009 (Rediff Business, 2011). The objective was to creatively communicate the
different value-added services by Vodafone, like phone back-up, cricket, stock market alerts,
fashion tips, and so on. It started off with a series of 30 advertisements which was aired each
day during the IPL Season 2.
ZooZoos became an instant hit in the market and to date they are the most admired
advertisement icons in India. They have scripted one of the most successful stories of brand
building in the country.
While the Vodafone ZooZoos were principally led by television, it was truly a 360 degree
campaign involving digital, outdoor, retail, radio and experiential media (Rao, 2012). The
campaign was a huge hit in the Indian market resulting in a spike of VAS. An exclusive line of
zoozoo merchandise became a regular feature at Shoppers’ Stop outlets. The campaign
was also the most viewed viral in the world (Rao, 2012).
The year 2009 also saw the launch of a digital campaign wherein a Facebook App allowed
users to guess what antics the zoozoos were up to in the new television commercials
(Chaudhuri, 2006). The concept was showing three different ad films in the Facebook App,
till a point when the film stopped and the users were prompted to guess what would happen
next (Chaudhuri, 2006). The Facebook users then could type in the text field, their version of
how the commercial should proceed and end. Vodafone then gave away its zoozoo
merchandise (T-shirts) and a BlackBerry Storm each week to the participants (Chaudhuri,
2006). Thus, in this way Vodafone were able to create a buzz amongst the Zoozoo fans on
Facebook and was able to give them the first taste of the TV commercials (Chaudhuri, 2006).
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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3
phased manner across the country. Faster, better and smarter is what we want to communicate
about our 3G services (Neha, 2011).
On the creative execution of all new, faster, smarter and better ZooZoos, Rajiv Rao, National
Creative Director, O&M India said:
The brief was a one liner and very simple to launch the 3G service. We wanted to make a big noise
about it because it is completely new for the consumer. It is a huge shift of technology from 2G to
3G and it is going to change the experience of consumers at all. So this is much superior
technology which needed to be communicated (Neha, 2011).
‘‘Right from the beginning, we were extremely clear about the execution. If you compare 3G
and 2G, then 3G is definitely better and faster. But as far as the consumers are concerned,
this is just another claim unless they experience it. We wanted to communicate it without
ridiculing the 2G as that too is much more important for basic users,’’ added Kapil Arora,
National Brand Head for Vodafone, Ogilvy & Mather (Neha, 2011).
Rajiv further added:
We were clearly toying with ZooZoos. We thought that if ZooZoo had represented 2G then 3G
should be represented by Super ZooZoos. With the birth of the Super ZooZoo idea, we came up
with the superior version of ZooZoo. After cracking that idea, everything became very simple for
further execution (Neha, 2011).
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PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
The second challenge ‘‘Vodafone Drive into the Big League’’ extended an opportunity to
small and medium enterprises to have their logo on the McLaren F1 cars that participated in
the motor racing event. The SME’s were finalized based on the growth they registered in the
previous three years. Vodafone also hosted some of the other activities like Hot Laps with the
VMM drivers and road shows with VMM car before the grand finale in Delhi (Sports
Marketing, 2011).
Yet another effort by Vodafone to connect with youth came in September 2011, when it tied
up with Facebook to create and launch a new handset Vodafone Blue (Sports Marketing,
2011). The phone has been designed in a manner that it brings an affordable integrated
mobile experience to customers. It is an answer to the youth’s mobile social networking
needs at a pocket friendly price.
Very recently (around mid-March 2012) Vodafone has come back with the ‘‘BlackBerry
Boys’’ campaign. The new advertisement highlights its reasonably priced plan of
BlackBerry’s free messaging service, the BlackBerry Messenger (BBM) (Campaign India
Team, 2012).
The BlackBerry advertisement was launched in 2010 and had been extremely successful in
branding the BlackBerry handset amongst youth. The advertisement positioned the
BlackBerry user, whether he was a college going student or a businessman, to be cool and
trendy (Campaign India Team, 2012).
The new campaign focuses on the Vodafone’s latest affordable price plan for prepaid BBM
users. It also showcases the popularity and increased usability of BBM amongst youth.
Vodafone has also brought back its beloved character ‘‘the pug’’ in its new advertisements,
once again highlighting the instant connectivity of its network – a parameter effectively
carried out by the ‘‘pug’’.
July 2012 saw the coming back of the ‘‘Vodafone Delights’’ campaign that was launched in
October 2011. Running over six weeks, the campaign featured three commercials, in
addition to the promotions through radio, print, outdoor, on-ground and digital media. The
commercials highlighted offers from Vodafone such as free gifts every time you visit the
store, birthday gifts, Happy Hours. Anuradha Aggarwal, Senior Vice President – brand and
communication insights, Vodafone India, said, ‘‘Vodafone Delights is a platform that we use
to surprise our customers with little delights and show them that we care.’’
On the timing of this campaign, she explained:
We had taken a communication hiatus for a month post IPL before releasing a new campaign and
we are following the same timing strategy on the current campaign. We alternate between
category consumption driving and brand stickiness enhancement activities. The strategy for the
current campaign is the latter one.
‘‘The key measure of the effectiveness of the campaign will be hard numbers on the
penetration of our three products, namely Thank You card, Birthday Offer and Happy
Hours,’’ she added.
On the creative execution, Kapil Arora, Country Head – Team Vodafone, Ogilvy & Mather,
said:
The lead offerings chosen for this round of the Vodafone Delights program are little ways of
thanking our customers for being with us. And we chose to bring that to life using the story of a
wonderful friendship between a teenage boy and his neighbour.
In October 2012, Vodafone came out with an advertisement campaign, inviting its customers
and racing enthusiasts to become a part of the VMM Team during the 2012 Formula 1 Airtel
Indian Grand Prix. The campaign taking the animation routé to catch the viewers’ attention,
features the joy ride of two animated caterpillars.
Kapil Arora, Country Head – Team Vodafone, Ogilvy & Mather, explained:
We wanted to highlight speed and decided to present it in the context of two speed-loving
caterpillars who hitch a ride on the VMM car. Animation was then the only way to do justice to
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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5
these protagonists and their ensuing experience. Of course it helps that the treatment breaks
stereotypes associated with Formula One advertising and helps the Vodafone offering stand out.
Vodafone’s dilemma
The marketing communication of Vodafone Essar Ltd, so far, has created very strong brand
value amongst consumers – that of strong customer orientation. Majority of its
advertisements focus on this aspect of customer service and/or customer relationship.
The entertainment value provided by Vodafone ads has helped the brand occupy an
excellent recall value which in turn has resulted in increase of the market share in India – a
region dominated by a number of telecom players.
However, a major area of concern for Marten Pieters is low revenue generation (Pieters,
2011). As quoted in his interview to NDTV Profit:
I can’t pay my bills from customer numbers. I need to pay bills from the money coming in from my
customers. So, in the end it’s about revenues and I think that is the challenge for the industry in
general. In the last two years the industry added more than 400 million customers but actually the
total industry revenue only went up by 7% for all the players together. So we have to fight and cut
that cake and eat all of it. That makes it a challenging industry because our costs are related to
customers’ numbers. More customers means more network, more capacity. At the same time the
prices are under incredible pressure which means that overall these new customers do not use it
so much but also the existing customers pay less and less (Pieters, 2011).
Revenue generation in the telecom sector starts when the customers extensively use
different services offered by the company. Since its entry in the Indian market, a host of
services have been offered by the telecom giant.
The reason for increasing the revenue generation lies in the fact that the increasing customer
base results in increase in operational costs – the costs of setting the infrastructure and
running the telecom operations (Pieters, 2011). And unless the cost of maintaining the
infrastructure and services of the existing customers are derived from the revenues earned
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PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
by the service provider, it would be extremely difficult for Vodafone Essar Ltd to run its
business in India (Pieters, 2011). Hence profits can be generated only when the usage rate
of customers increases. To improve the usage, therefore, Vodafone requires promoting
various services to its existing customers.
The highlight of Vodafone’s marketing communication has always been the promotion of
these services in a manner which remains in the minds of consumers. The last few years has
seen the arrival of several high-technology services in the telecom sector. This has created a
lot of clutter in the market. The customers are unable to understand the distinctness of the
services provided by any one telecom brand.
Also, there has been a sense of disconnect between Vodafone’s communication of value
addition through its services and its importance in the customer’s lifestyle.
Launching ads and marketing programs in an innovative, creative manner where the
customer not only understands the relevance and importance of the particular service but
also adopts it in his/her lifestyle is the biggest challenge faced by Vodafone.
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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7
References
Boneless Research (2012), India Wireless Telecom Market: September 2012, August.
Campaign India Team (2011), Vodafone launches ‘‘Vodafone race to fame’’, filed under Marketing, India.
Campaign India Team (2012), Vodafone brings back the ‘‘Black Berry Boys’’.
Chaudhuri, A. (2006), The Zoozoos are back! filed under Digital, India, November.
Chopra, R. (2010), O&M uses a parrot in Vodafone’s latest TVC, filed under Advertising, India.
Clow, K.E. and Black, D. (2011), Integrated Advertising, Promotion, and Marketing Communications,
4th ed., Pearson, Harlow.
Lad, M. (2009), Vodafone rolls out latest ‘‘Happy to Help’’ campaign, filed under Advertising, India.
Nardini, E. (2009), Taking a ‘‘You Turn’’ at Madison and Vine; Chief Marketer Network, September.
Neha, S. (2011), ‘‘Vodafone ZooZoos are back; turn faster, smarter & better’’, Best Media Info, February.
Pieters, M. (2011), ‘‘5 players enough for India: Vodafone’’, uploaded by NDTV Profit ‘‘Power of One’’ on
YouTube.
PwC Analysis (2011), Connect with Consumers – Value Added Services: The Next Wave, March, Report
by PricewaterhouseCoopers, available at: www.pwc.com/india
Rai, C. (2006), Airtel vs Hutch: and the winner is . . . , Source Business Standard, available at: www.rediff.
com/money/2006/jan/04spec.htm
Rao, R. (2012), Ad Strat: Vodafone ‘‘Zoozoos’’, Ogilvy & Mather; Media, Marketing, available at:
mxmindia.com; www.mxmindia.com/2012/01/ad-strat-vodafone-zoozoos/
Rediff Business (2011), Zoozoos: India’s most adorable ad icons, available at: www.rediff.com/business/
. . ./slide-show-1-zoozoos-india-most-adorable-ad-icons/20110420.htm
Sports Marketing (2011), Vodafone bring new promotional activity to Indian Grand Prix, collected from:
www.isportconnect.com
Further reading
Bhatnagar, P. (2012), ‘‘Vodafone India reports highest incremental revenue market share amongst
operators’’, Economic Times Bureau, May.
Bhatt, S. (2012a), ‘‘Vodafone, ‘delights’, again’’, filed under Advertising, India, Available in Campaign
India, July.
Bhatt, S. (2012b), ‘‘Vodafone takes animation route for 2012 Formula 1 Airtel Indian Grand Prix
campaign’’, filed under Advertising, India, Available in Campaign India, October.
Chopra, R. (2011), Vodafone ties up with Facebook to create Vodafone Blue, filed under Advertising,
India.
CNBC-TV 18 (2010), ‘‘Your World at 10: Vodafone: 100 million & counting’’, collected from youtube.com
MaxusGlobal (2010), Vodafone Zoozoo Marathon Video, uploaded on Youtube.
Rediff Business Desk (2010), ‘‘All about 3G spectrum’’, April 9, available at: www.business.rediff.com/
slide-show/2010/apr/09/slide-show-1-tech-all-about-the-3g-spectrum.htm
Vodafone (2009), Vodafone Happy to Help Ad. May 19, 2009 posted on AdsCritics.com
Corresponding author
Namita N. Kumar can be contacted at: namita@akgim.edu.in
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PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012