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Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
Sample emarketing plan by bhawani nandan prasad
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Sample emarketing plan by bhawani nandan prasad

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Sample emarketing plan

Sample emarketing plan

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  • 1. E-Business Marketing for Vodafone By Bhawani Nandan Prasad Contents Acknowledgements ........................................................................................ Error! Bookmark not defined. Executive Summary of Vodafone ................................................................................................................. 3 Telecommunication Industry - A profile....................................................................................................... 7 Major Players in the Industry ...................................................................................................................... 18 Target Customer Market ........................................................................................................................... 20 Brand value and brand personality of Vodafone ......................................................................................... 21 Vodafone E-Marketing Strategy ................................................................................................................. 23 Unique selling Proposition (USP) ........................................................................................................... 26 Vodafone marketing mix- 4 P’s .............................................................................................................. 27 Products ............................................................................................................................................... 27 Place .................................................................................................................................................... 27 Pricing Strategy ................................................................................................................................... 27 Promotion and Positioning Strategy.................................................................................................... 28 Vodafone 360 .......................................................................................................................................... 31 Online Marketing Strategy ...................................................................................................................... 34 Affiliate Marketing.............................................................................................................................. 34 Why become a Vodafone affiliate? ..................................................................................................... 34 Selling your Own Product (SYOP) ..................................................................................................... 36 Website Flipping ................................................................................................................................. 36 Lead Generation .................................................................................................................................. 36 Webinar ............................................................................................................................................... 37 Digital Marketing .................................................................................................................................... 38 Ad film Based Marketing through Various Video clip channels ........................................................ 38 Vodafone email marketing campaign ..................................................................................................... 39 1
  • 2. Content Marketing .................................................................................................................................. 42 Call To Action Marketing ....................................................................................................................... 44 Key Success Factors ............................................................................................................................. 45 Referral Strategy ..................................................................................................................................... 47 Strategy for increasing transactions ............................................................................................................ 48 Customer Retention Strategy CRM .......................................................................................................... 49 Financial Projections ................................................................................................................................... 50 Budgeting .................................................................................................................................................... 52 Conclusion .................................................................................................................................................. 56 Bibliography / Webliography ...................................................................................................................... 57 2
  • 3. Executive Summary of Vodafone The name Vodafone comes from Voice data fone, chosen by the company to “Reflect The Provision Of Voice And Data Service Over Mobile Phones”. The company was formed in 1984 as a subsidiary of Racal Electronics, by 1991, it was a separate organization, known by its present name, and with its first controlled overseas operation in Malta. A combination of acquisitions and partnerships with other networks has made Vodafone the world’s largest mobile telecommunication company, with equity interests in 26 countries across five continents and partnerships in another 14. Vodafone is teaching itself quickly to have a deeply ingrained customer understanding in order to make it nimble while developing the scale, scope, and power of a large multinational. The focusing on customer understanding and segmentation knowledge is highly important to issue that Vodafone doesn’t get sluggish and is able to deliver on customer needs rapidly. Vodafone is the world’s largest mobile telecommunication community, employing over 65,000 staff and with over 130 million customers. The business operators in 26 countries worldwide across 5 continents and 40 partner network with 200 million customers worldwide. Vodafone is a public limited company with listings on the London and New York stock exchanges. Global recognition of the Vodafone brand growing as a company roll out its identity into new markets. However, its retains local names and imagery in markets where this is essential to maintaining the trust in customers. To help promise its image worldwide, Vodafone uses leading sports stars from high profile global sports, including David Beckham and Michael Schumarcher. Vision: 3
  • 4. “To be the world’s mobile communication leader enriching our customer’s lives through the unique power of mobile communications” Mission: 1. For customers: In anticipation of their customers trust Vodafone understands their needs and delight them with the service 2. For our people: Outstanding people working together make Vodafone exceptionally successful. 3. For result: the Vodafone believes in being action oriented and is driven by a desire to be the BEST. 4. For the world around us: Vodafone believes helping people of the world to have fuller lives through their services and its impacts. 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 evergrowing brand. This brand unveiled nationally through a high profile campaign covering all important media. Hutchson Whampoa and its Indian business partner - Max Group established the company Hutch in 1994, was awarded a license to provide mobile telecommunications services in Mumbai and launched commercial service as Hutchson Max in November 1995. 4
  • 5. Vodafone India, formally Vodafone Essar and Hutchson Essar, is the second largest mobile network operator in India after Airtel. It is based in Mumbai, Maharashtra and which operates nationally. It has approximately 146.84 million customers as of November 2011. In July 2011, Vodafone group agreed terms for the buy- out of its partner Essar from its Indian mobile phone business. The UK firm paid $ 5.46 billion to its Indian counterpart to take Essar out of its 33% stake in Indian subsidiary. It will leave Vodafone owing 74% of the Indian business, while the order 26% will be owned by Indian investors, in compliance with Indian Law. On 11 February, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li KaShing holdings in Hutch- Essar for US $ 11.1 billion, pippin Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on 8 May, 2007. It offers both prepaid and post paid GSM cellular phone coverage throughout India with good presence in the metros. History of VodafoneHutch in Indian Context: 1992: Hutchson Whampoa and Max group establish Hutchson Max. 2000: acquisition of Delhi operations and entry into Kolkata and Gujarat markets through Essar acquisition 2001: Won auction for licences of operating GSM services in Karnataka, Andhra Pradesh and Chennai 5
  • 6. 2003: Acquired Aircel digilink (ADIL-ESSAR subsidiary) which operated in Rajasthan, Uttar Pradesh east and Haryana telecom and rebranded it ‘HUTCH’. 2004: launched in three additional telecom circles of india namely Punjab, Uttar Pradesh (west) and West Bengal. 2005: Acquire BPL mobile operations in 3 circles. This left BPL with operations only in Mumbai, where it still operates under the brand ‘Loop Mobile’ 2007: Vodafone acquires a 67% stake in Hutchson Essar for $ 10.7 billion. The company is remained Vodafone Essar. ‘Hutch’ is rebranded to ‘Vodafone’. 2008: Vodafone acquires licences in remaining 7 circles and has starts its pending operations in Madhya Pradesh circle, as well as Orissa, Assam, North East and Bihar. 2011: Vodafone Group buys out its Essar partner from its Indian mobile phone business. Its paid $5.46 billion to take Essar out of its 33% stake in the Indian subsidiary. It left Vodafone owing 74% of the Indian business. 6
  • 7. Telecommunication Industry - A profile Indian telecommunication market is one of the largest in the world, with the number of telecom subscribers second only to China’s. In the term of infrastructure, India’s telecommunication network is the third largest in the world on the basis of its customer base and it has one of the lowest tariffs in the world enable by the hyper competition in the market. This major sector of the India telecommunication industries are telephony, internet and broadcasting. Indian telecom industries underwent a high pace of market liberalization and growth since 1990s and now became the world’s most competitive and one of the fastest growing telecom markets. India had the world’s second largest mobile users base with over 929.37 million users of May 2012. It was predicted that by 2013, the teledensity will shoot up to 75% and the total mobile subscriber base would be a colossal 1.159 billion. Telephone statistics in India  Telephone subscribers (wireless and landline): 995.9 million (May 2012)  Land lines: 31.53 million (May 2012)  Cell phones: 929.37 million (May 2012)  Monthly cell phone addition: 8.35 million (May 2012)  Teledensity: 79.28% (May 2012)  Annual cell phone addition: 227.27 million (March 2010 - 2011)  Projected teledensity: 1.159 billion, 97% of population by 2013. It has world’s third largest internet user base with over 121 million as of December 2011. 7
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  • 15. There are around 15 operators in the market for telecom space in India. As per latest annual report from Telecom Regulatory Authority of India (TRAI), the total revenue in the telecom service sector was INR 1,71,719 crore for the 2010-11, growth about 8.7% from the previous year. The capital employee in the sector increased from INR 2,86,8237 crore in 2009-10 to INR 3, 37,683 crore in 2010-11 i.e. an increase of 17.73% indicating a healthy growth of investment in the sector. Indian telecom industry strategy as of today is as follows, considered factors from available operator data and general understanding 1. Price- Price is low due to competitive nature 2. Traditional mobile service like talk, SMS, MMS, and ringtones etc are rated high as there are standard offerings by the operators. 3. Network quality and coverage- The mobile infrastructure in india is not up to the mark and the quality of the service is effected 4. Pay for what you use- - While most of the operators offer full talk time, but most of time operators add value added service like ringtone, daily astrology reports etc without customer consent. TRAI report also shows that there is deterioration on QoS in metering and billing credibility. 5. Roaming charge- Roaming charges in India are quire erratic and just moving even within a state attracts roaming charges although the operator does not incur in cost. 6. Internet and broadband services- Most of the major players are offering this service but the quality and reach is not so high. Hence a rating of average is given for this. 7. Variety in usage plan- Every operator has multiple usage plans for both post paid and pre paid services. Hence the rating of very high is given for this. 15
  • 16. 8. Traditional value added services- Standard value added services like call forwarding, itemized billing, caller ringtone, music downloads are now standard in the Indian telecom industry. However there is lots of scope for adding more features and hence the rating given is average. 9. M commerce- though most of the providers offer this services, the penetration is still low because of security and customer awareness issue. 10. Video calls- New 3G players are only offering his service but the pricing is very high. So this parameter has ranked low. 11. Entertainment (music, download, IPTV)- Penetration is quite low, and most of the subscribers do not see much value in this offering. The main reason behind this is a high price and content not meeting exceptions. Hence is parameter is ranked low. 12. Customer service- Normally the high customer base is managed by comparatively lower customer support executives; the QoS in this parameter is low. PEST Analysis Political In telecom industry the following Government and Legal issues affecting how company operates.  Regulation  Infrastructure  Banning of Phone in certain circumstances  Health Issues 16
  • 17. Economical - Economical factors influencing the purchasing power of customer and companies cost of capital.  Cost of 3G licenses  Cost of call being driven down  Worldwide recession  Third world countries Social - Demographic and cultural aspects of environment which influence customer needs and market size.  Health issues on use telecom devices  Demographic and Social trends  Picture Phones  Mobile Etiquette  Saturation Point Technological - Modernization and innovativeness over a period of time leading to new and advanced technology in cellular services:  3G  UMTS (2.5G) - Universal Mobile Telecommunication System  GPRSWAP - General Packet Radio Service  SMSMMS  Vodafone has partnership with Linksys for 3G/Wireless Router with UMTS 17
  • 18. Major Players in the Industry There are three types of players in Indian telecom services:  State owed companies like BSNL or MTNL  Private Indian owned companies like reliance, infocomm, Tata teleservice (Tata docomo, Tata Indicom)  Foreign invested company like Vodafone, Bharti Tele-Ventures (Airtel), Idea Cellular, Uninor, Virgin etc Foreign director investment is increasing and new players are entering the market every year. 18
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  • 20. Target Customer Market Target Group : Corporates, Student campus plans Segment : Upper Class and above, Lifestyle Positioning : Inviting, cheerful and humorous 20
  • 21. Brand value and brand personality of Vodafone To instill the new brand personality traits within the attitude of employees of Vodafone. NKD chose teaching methods that involve hands on “experiential learning” using a range of sensory techniques. At each learning event, employees were immersed in a friendly, themed environment which exuded the new Vodafone brand personality. NKD focused on three core programme to reinforce the new company brand 1. A series live event called winning together was use to inspire the company’s 400 retail employees and equip them with world class sales skills. This has since become the induction program for all new retail employees. 2. All shop managers an regional area managers attended a two days session calles leading together which provided leadership and management skill design to be applied back in the workplace. 3. Staying together was a live review of key people processes, transformation marketing mix necessary to reflect the new retail promise, brand personality and company culture. Brand Elements of Vodafone Vodafone’s internal; brand mantra is simple and memorable. It stands for passion, reliability, and innovation. 21
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  • 23. Vodafone E-Marketing Strategy Vodafone integrates web, email and mobile to enhance prospective customers’ online shopping experience. Charlotte Crideford, Marketing Manager - Mobile and Multi-Channel Innovation, Vodafone once told in a seminar that “It may sound simple, but the use of cookies to link web and email is fundamental. By throwing mobile into the mix, we were asking for a truly multi-channel approach but we were confident it could be achieved with the right team involved.” Smart phones are becoming ubiquitous; with mobile email one of the many applications driving their uptake. As a leading UK mobile operator, Vodafone needed to develop a comprehensive, mobile optimised experience for its customers whilst being able to measure its mobile marketing impact to increase the efficiency and impact of its future campaign activities. While this posed some technical challenges, the potential return on investment could be significant. One of the key challenges to unifying the mobile and desktop journey is the use of cookies. Vodafone uses cookies to remind customers that they’ve previously added products to their online shopping basket, but haven’t completed the transaction. Customers receive an email containing a link to return them to the basket as they left it, with content recreated from information contained in cookies left on their computer when they shopped. However, if customers initially browse the online shop on their laptop but receive and open the reminder email on their smart phone, there is no cookie to recreate the basket — and valuable sales opportunities are lost. When the vast majority of emails were accessed from a desktop, Vodafone could produce messages that encouraged click through and conversion. When accessed via mobile devices with different operating systems and screen sizes, however, desktop email features often didn’t work, display properly or render at all. To achieve Vodafone’s objectives and deliver a new, cookie-free and mobile optimised experience, Experian Marketing Services started from scratch, re-building the abandoned basket email process from the ground up, both in terms of back-end construction and front-end look and usability. 23
  • 24. Experian Marketing Services has developed a new form of ‘Deep Linking’ tracking that captures customers’ behaviour across websites. This information is then gathered by Experian Marketing Services’ Mail platform and integrated into the abandoned basket reminder email. It delivers all the data Vodafone needs to recreate the customer’s basket as they left it — including the phone, tariff and add-ons without a cookie in sight. Customers can now access their basket wherever they are on whatever device they choose. Using this, it’s possible to identify the device on which email traffic was initiated to deliver a perfectly rendered message. It’s an elegant solution that encourages far greater interaction with the Vodafone online store, driving traffic to the website, converting prospective web visitors into customers and delivering bottom-line, business process and customer benefit: • over 40% of Vodafone customers who receive responsive emails open them on their mobile device, demonstrating the importance of an integrated approach; • from roll out, orders from formerly abandoned baskets have kept by 30%; • pioneering tracking technologies bring business process improvement, with the ability, for example, to see how long transactions take and continually refine the process to make it easier and faster for customers; • detailed metrics allow Vodafone to see which campaign components generate the most revenue, and focus marketing resources where they will deliver maximum returns. 24
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  • 26. Unique selling Proposition (USP) In telecom industry, Ads, Campaign play significant role to increase market share and revenue to position the product to consumers. When firms raise prices, demand becomes relatively elastic that results into loss of market share and in turn loss of revenues as well. Whereas when prices are reduced demand is relatively inelastic, not resulting in much of a gain in terms of market share since other firms follow suit. Revenues too fall in such a case. Thus the "non-price" mechanism is the best method to beat competitors in this market structure. Through this mechanism firms generally adopt some unique and innovative advertising and sales strategies in order to outdo others. • Vodafone's ZooZoo Ad - A Classic Oligopolistic Product (interdependent firms price wars, kinky demand curve - adopt non-price measures to increase revenues). • Vodafone Money Transfer service - is a revenue-generating application that helps retain customers and differentiate Vodafone’s partner operators in already-saturated markets. • Vodafone 360 - Connected Life Experiences on the Move. • Advance IPTLC services e.g. Communication services, Money Transfer, M2M, mHealth. • Vodafone is action-oriented and driven by a desire to be the best. • Vodafone is committed to be the best in all they do. • Vodafone staff play their part in delivering results. • Vodafone seek speed, flexibility and efficiency in all that it does. 26
  • 27. Vodafone marketing mix- 4 P’s Products Vodafone launched products with many different features provided customers with opportunities to chat, play games, send and receive picture, change ringtones, receive information about travel and sporting events, obtain billing information and soon view videos clips and send video message. Place  Vodafone operates over 350 of its own stores  400, 000 multi brand outlets  Over 1,000 mini stores  Over 35 mini stores  People are on hand to ensure customers needs are matched with the right product and to explain the different options available Pricing Strategy Vodafone wants to make its service accessible to as many people as possible: from the young, high powered business executive to the more nature users.  It offers various pricing structures to suit different customer group, - Monthly price plans- - pay as you do plans - call charges while going abroad - pay monthly call charges - business call charges 27
  • 28.  Monthly price plans are available as well as prepay options. Phone user can topup their phone online.  A number of scheme are being introduce from time to time to match the customer’s needs, like unlimited free call cards, 1 paisa/ sec call rates.  The top-ups are available from Rs. 10.  Its pricing strategy varies accordingly by offering features like filmy recharge and SMS value packs targets at the youth segment to feature like bonus cards and longer validity schemes at a similar price rating but targeted at the lower income segment.  Magic hands boxes are products by which Vodafone can attract customers from a verity of income group and other demographic characteristics. In order to make it available to a very wide section of the audience magic hand boxes are made available from price as low as Rs. 999 to Rs. 9999.  Vodafone PCO: Vodafone PCO can be bought at Rs. 3750 and a starter kit worth Rs. 750 can be go with it. Promotion and Positioning Strategy One of the frequently used avenues for rebranding is advertisement, as it is fairly easy and flexible. It is powerful mechanism for signalling a change in the positioning of the company or reaching out to the broad or targeted audience promptly. Vodafone used different ad campaigns such as happy to help, friend circle, cheaper SMS, ‘Amar chitra katha’ alert, but it was also at this juncture that the telecom industry woke up to the potential of value added services (VAS) and Vodafone realized the burden of VAS 28
  • 29. would be too much for the pug! It was an opportunity for tapping the lucrative Indian mobile VAS industry valued at more Rs. 70,000 million. Vodafone launched the new advertisement campaign- zoo zoos’s during the IPL in cricket crazy nation. Characters donning white ( white black dotes for eyes and mouth) having heads that resembles eggs and bodies that are disproportionately thin, were to tell the VAS stories in a world that is similar to and yet different from human beings. The characterization of these creatures were such that they were to lead simple life, speaks a language sounding gibberish, move in a particular way, and even emote like human beings. Creation of the advertisements required low cost costumes, real people and speedy schedules. As a result, the 25 odd advertisements cost only about Rs. 30 million. Vodafone advertisements AIDA Model 29
  • 30. AIDA model provides detailed illustration on how advertising affects consumer behavior and the purchase decision. AIDA means - Attention, Interest, Desire and Action which builds relationship between consumer behavior and advertising. Example : ZooZoo campaign. ZooZoo advertisements were indeed clutter-breaking and enforce the following:   Concept and content are most important  Expensive brand ambassadors are not a necessity  Advertisements should relate to the common man   Low cost advertisements can make good impact The message conveyed should be kept simple A well-crafted campaign can be accentuated through massive viral marketing The success of the campaign could be gauged from the fact that:  ZooZoo were dominating social networking sites such as Facebook  Wallpapers, emoticans, ringtones, videos, contests, stories were being downloaded frequently  Videos had approximately 3 million hits within the first 3 weeks  Huge number of downloads on Youtube  Winner of Awards, PETA and India's first Glitter Box awards 30
  • 31. Vodafone 360 The Vodafone 360 service is a cross-platform services play that embraces the Internet and social networking as well as mobile applications and content. It was announced in September 2009 and has since been deployed in eight markets: Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, and the United Kingdom. Vodafone 360 consists of a variety of features, including a visual address book; Vodafone People, which aggregates contacts and other personal data across social networks and PC synchronization; an application store; and other services such as music, maps, and search. The offer includes two signature semi-customized devices, the H1 and M1 from Samsung. Vodafone is faced with the following challenges in launching 360: ● Vodafone 360 is a major undertaking and has fierce competition not only from operators such as Orange and Telefonica but also from device vendors such as Nokia and Apple, and from Internet players such as Google. ● According to Ovum, a developer ecosystem is crucial to the success of this undertaking. Vodafone will have to be equal to, if not better than, the ecosystem developed by the providers such as Apple. Vodafone has limited experience in this field, and the competition for developers is fierce, with a growing number of players in this arena including some large, established companies such as Apple. ● Providing consistent user experience across a variety of networks and a wide range of handsets is going to be a challenge. ● Customized devices, while optimizing user experience, are limiting and out of step with Vodafone’s open Internet model. Ovum analysts feel that developers and consumers will quickly become disillusioned if the promise of Vodafone 360 cannot be fulfilled on the wider range of supported handsets beyond the customized devices Vodafone has a number of opportunities afforded to it by launching Vodafone 360: ● Vodafone Live, the provider’s flagship consumer service was beginning to lose momentum, and Vodafone 360 comes as an opportune response to the growing competition from the increasing number of device vendor app stores. ● Vodafone 360 presents the provider with opportunities to new revenue streams from advertising as well by providing Smart Enabler services to third parties. It also enhances revenues from data traffic and provides Vodafone with a share of premium content revenues. ● Vodafone 360 enables the operator to participate in the content and applications value chain without the heavy investment in developing all the content and applications itself, while at the same time maintaining a central role in the end-to-end customer experience. ● Vodafone People, which is at the heart of Vodafone 360, plays on the operator’s strength: communications with a smart layering of utility features. Vodafone aims to drive data and messaging traffic via People, but by default, the service could become a community in itself. If successful, this becomes a useful tool for customer retention and possible advertising revenues. Alliances/Partnerships Vodafone has launched 360 with some strategic partnerships. ● Samsung is Vodafone’s key partner for the signature devices, H1 and M1, for 360. 31
  • 32. ● The applications for the Apps Shop are built to the Joint Innovation Lab (JIL) standards, an initiative announced in April 2008 between Vodafone, Verizon Wireless, China Mobile, and Softbank Mobile. ● Vodafone is also working on a closer level with a small number of selected content partners, many of which will be local to a market. Those that have been announced and fall into this category include the newspaper publishers Bild in Germany and La Republica in Italy. The localization aspect is important because one of the criticisms levied against other application stores is the large number of applications lacking local relevance. ● Social networks/media are an important part of the Vodafone 360 service, notably via Vodafone People, which supports integration of contacts from social networking sites into the address book. On this front, Vodafone is partnering with Facebook, Windows Live Messenger, Google Talk and Mail, Hyves, Twitter, and studiVZ, to name a few. However, these are not exclusive partnerships. Pieter Knook, Internet Services Director, Vodafone claims: “We said that the launch of Vodafone 360 was the first step in the next phase of our mobile Internet journey, to provide a range of services that give customers a great mobile Internet experience.” Strategy ● Although the individual components of 360 are not all entirely new, what is innovative and pleasing from a user perspective is how the pieces have been packaged. According to Ovum, Vodafone 360 shows “joined up” thinking compared to the more fragmented offerings from rivals that often have similar components but in different service silos and often carrying sub-brands. ● Vodafone 360 plays to the core strengths of the mobile provider in terms of placing the communications service experience at the core of service offering. It is catering to the users via a number of user-friendly features:  Enabling customers to build an address book to better manage their contacts in addition to managing and backing up personal content  Enabling this service across both the mobile and PC platforms  Building other value-added services, both free and paid for, around the experience  Enabling the capability on a range of phones in order to reach a wider addressable market  Using the service to drive data usage but not charge for the service itself Vodafone is not targeting a homogenous subscriber base, all using the same handset, platform, or generation of wireless network. It is constantly working to enhance the user experience across different devices and platforms. For example, in February 2010, Vodafone ● 32
  • 33. announced the availability of Vodafone 360 People Sync App on the Apple app store and on Android devices. Success Factors/Metrics/Monetization ● Vodafone has released very few key performance indicators (KPIs) to date. In February 2010, it announced that 7000 applications had been made available through 360 apps store across eight European markets. Registrations to the 360 service are increasing, running at a rate of four thousand a day, as reported in January 2010. Vodafone also stated that by March of this year it had shipped more than two million devices incorporating 50 different handsets capable of accessing the Vodafone 360 Apps Shop. ● In terms of the business model, Vodafone 360 is primarily designed to drive uptake of data plans. The service requires connectivity, and hence users are advised to take a data plan in order to enjoy the service. ● A number of wrap-around services such as music carry a premium charge, along with some of the applications in the 360 store, on a per item or subscription basis. ● Other services such as navigation are available for free (but help drive traffic revenues). ● Vodafone 360 also brings indirect revenue benefits by acting as a tool to increase user loyalty, primarily through the Vodafone People service. This service is designed to make it easier for the end user to manage and back up their contacts and personal content. The idea is that moving this information elsewhere becomes an inconvenience. ● Vodafone also benefits from a revenue share model with third-party application developers based on the industry standard 70:30. ● In the longer term, Vodafone 360 has been developed with a view to creating a large audience for advertisers, although it is not yet clear whether advertising has been deployed, and no additional details are available at this point. ● Vodafone is positioning itself as a smart enabler to third-party developers supporting the 360 service. Hence Vodafone is offering a portfolio of network-based assets and other enablers to developers: for example, network APIs (application programming interfaces) such as location, customer insights, and billing. 33
  • 34. Online Marketing Strategy Vodafone IVR system powers users to perform more self care transactions such as activatedeactivate services like internet pemobil, Roaming, Vodafone Passport, MMS, Ring back tones, Keyword Based search, Search Engine Based, Social Media Based interactions on Opera Mini browser. Affiliate Marketing Vodafone provides Benefit for promoting Vodafone's products and services and to partners. Two types of affiliates : Consumer and business The company having a website, can earn money by joining our Vodafone Affiliate Programme. All you have to do is sign up with TradeDoubler and begin advertising Vodafone products on your site. If the adverts result in a sale, vodafone pay you commission!       Why become a Vodafone affiliate? Irelands leading mobile communications operator Well recognised brand Competitive commissions Regular promotions and sales Regular creative updates Wide portfolio of products (mobile, home broadband, mobile broadband) Vodafone pay between £17 and £45 for every successful new phone, mobile broadband or SIM only contract connection in UK. 34
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  • 36. Selling your Own Product (SYOP) Through "Power to You" Campaign, vodafone refreshes the IVR for easier and improved customer experience. My Way is Vodafone’s 'build-your-own-plan' product: customers only pay for what they use. It embodies Vodafone's strategic positioning, putting choice and control into the customers' hands. Website Flipping Vodafone does not use flipping website marketing strategy. Lead Generation Vodafone uses lots of Campaigns, corporate relationship and CollegeUniversity campus student group campaigning to generate lead for sale. 36
  • 37. Webinar Vodafone recently facilitates Smart cities and Mobile Money webinar to sale the products and perform brand extension scheme. 37
  • 38. Digital Marketing Vodafone has tied with Star India to run complete roadblock of its fresh campaign by unveiling the 24-hours nationwide TV commercials, contests on 20th Sep 2007 on brand transition from Hutch. Vodafone also used advertising agency partner Ogilvy and Mather (O & M) showing the trademark pug in agarden moving out of a pink colored kennel. O & M has also rolled out four commercials featuring Vodafone animated boy and girl, Duo peeping over a wall to see the logo, parasailing with the logo flying high, Rocket bomb for logo show and drawing curtains aside to show the logo. Ad film Based Marketing through Various Video clip channels 38
  • 39. Vodafone email marketing campaign Vodafone has announced the first network designed email service from an operator - Vodafone Business Email. Alongside Vodafone Business Email, Vodafone will make Blackberry Connect and Microsoft Windows Mobile-based devices and email service available in the near future. Blackberry Connect allows new and existing Vodafone enterprise and SME customers, push email, attachment viewing and secure encryption on a broader range of handsets. The main objectives for the consumer lifecycle email campaign of Vodafone Consumer online were as follows:  Less ‘waste’ in the database;  Enrich data entries in the database for far-reaching personalization;  Less time lost with prospect follow-up;  Increase the conversion of email marketing campaigns. Concept The Vodafone Consumer Online email marketing campaigns are based entirely on the consumer lifecycle. The starting point is a vicious customer experience. By using Tripolis Dialogue Vodafone continues to stay in touch with the (potential) consumer throughout every stage in the consumer lifecycle. The challenge is to find out what improvements should be made by Vodafone in order to be able to standardize and optimize the email marketing campaigns to eventually increase the conversion. Solution Through an API that provides Oracle and Tripolis Dialogue with information the information deliveries are standardized. This allows users to send a subsequent email to new leads on the same 39
  • 40. day instead of two weeks later. Besides that, Vodafone uses a dynamic form that is connected to the Oracle CRM system and the Tripolis Dialogue database, whereby (potential) consumers can immediately change their information and subscribe or unsubscribe to specific Vodafone newsletters. This leads to a deeper personalization. To optimize the email marketing campaigns Vodafone uses the A/B testing module in Tripolis Dialogue. The A/B tests have shown that a green call-to-action (CTA) button leads to a much higher conversion. In addition, A/B tests confirmed that implementing an F-template with several offers in one email is the most optimal template form. Vodafone has switched to a new ‘persuasive design’ (unconsciously changing the behavior of the reader) template focusing on taking action. Campaign results  Open Rates increased by 250%  Click Through Rates growth of 200%  Lightning fast, same-day follow-up of prospects, instead of two weeks later  More information available for segmenting email campaigns  Cheaper, better-quality leads The Open Rates and Click Through Rates have grown up to 250 and 200 percent by extensive optimization and the link to the Oracle database of Vodafone. More information is available for segmenting email campaigns, which leads to cheaper leads of higher quality. Vodafone would like to get closer to its retailers and send traffic to stores and vice versa, receive email registrations from them. By introducing this step by step, Vodafone wants to keep perfecting the omni channel approach with the help of the consumer lifecycle. 40
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  • 42. Content Marketing Vodafone use Online Channel Content Marketing for developing and bringing to market new customer propositions such as M2M applications. Vodafone chose to lead its communications on the content deals it has brokered for the announcement around its 4G switch-on date and tariffs - somewhat surprisingly given its hefty investment behind the spectrum that provides the best indoor coverage. The operator should ensure, however, that deals with the likes of Sky and Spotify go beyond simply low hanging fruit-style introductory offers. 42
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  • 44. Call To Action Marketing In 2008, Vodafone joined the Business Call to Action (BCtA) with its pledge to increase access to financial services, drive small-scale enterprise, and stimulate economic growth in key emerging markets through its Vodafone Money Transfer platform known locally in Kenya, Tanzania, Fiji, Afghanistan, and South Africa as M-PESA or M-Paisa. Vodafone’s goal: • Expand access of Money Transfer platform in Kenya, Tanzania, South Africa, Fiji, and Afghanistan so that people can securely receive or transfer money Business Model - How it works To date, Vodafone 's Money Transfer platform has seen tremendous uptake. Across all markets, there are more than 18.5 million registered customers that transfer over US $350 million each month 44
  • 45. through the platform. In Kenya, in 2009 an increase in operating profit of US $91.9 was due to the growth in M-PESA revenue. In Tanzania, M-PESA shows also strong revenue growth. Key Success Factors Having an Appropriate Regulatory Framework Vodafone and its mobile network operators seek to work with regulators, either the central bank or other government officials, to build an appropriate regulatory framework for a successful service. It is important that the national regulators are fully briefed about how the Money Transfer system works and the way in which Vodafone addresses issues, such as money laundering and counter terrorist financing. For example, each national mobile phone operator employs a designated antimoney laundering officer to brief outlets on what to look for in terms of criminal behavior, to monitor transactions, and to report suspicious activities. Successful Organizational Model One of the key success factors for Vodafone has been the creation of accredited and trained agents who act as outlets for the service. Safaricom were able to train and accredit a large number of their already established networks of airtime sellers. Because most airtime sellers were eager to add to their product line offerings, there has been a lot of interest in servicing Money Transfer platform customers. Transparent Customer Processes By working closely and communicating regularly with key stakeholders including regulators and customers, Vodafone has ensured that its operations are transparent. Mobile operators require money transfer outlets to go through a rigorous security process. Vodafone also requires that supporting 45
  • 46. mobile operators dedicate a customer service division to the Money Transfer service. Such steps are crucial to gain the trust of customers. Transparent Pricing System The cost to transfer money is kept uniform across the entire network of outlets regardless of local mobile phone operators and is clearly communicated to customers. Plus, free registration and no monthly fees have helped outlets to persuade potential customers to subscribe to the service. 46
  • 47. Referral Strategy - Cost Leadership - Differentiation in Assortment - Unmatched Customer Service 47
  • 48. Strategy for increasing transactions  Continuous Advertisements and Campaign  Partnership : Verizon Reaches Agreement to Acquire Vodafone's 45 Percent Interest in Verizon Wireless for $130 Billion. Transaction Provides Verizon with 100 Percent Ownership of Verizon Wireless; Enhances Ability to Provide Customers with Seamless and Integrated Services; Transaction Expected to be Immediately Accretive to Verizon’s EPS; Verizon Board Authorizes 2.9 Percent Increase in Quarterly Dividend. 48
  • 49. Customer Retention Strategy CRM A key concept of customer retention and branding is using various promotion techniques such as market evolution, product life-cycle marketing strategies, differentiation strategies, and developing and communicating a positioning strategy. Companies must look at the market to see how its products will evolve based upon “new needs, competitors, technology, channels, and other developments” (Kotler & Keller, 2006, p. 331). The product life-cycle marketing strategies involve looking at the products’ performance to determine if the company should continue to promote the product or develop a new product to boost sales. Differentiation strategies involve companies finding a niche that sets them apart from their competitors. For example, Southwest Airlines is known for its “short-haul flights with low prices” (Kotler & Keller, 2006, p. 318). IBM uses personnel differentiation to stand out in its industry because the company has a reputation of employing professional people (Kotler &Keller, 2006, p. 318). Last, it is important that companies observe their competitors to formulate and execute the best brand positioning strategies. Vodafone strategies for CRM  New Differential Products  Continuous Ads and campaigns for communicating a positioning strategy  Use new Technology such as BigInsights and Business intelligence to analyze trends  Constantly reviewing and refining the tools and processes used for customer retention  By employing the Jacada Fusion solution, Vodafone has cut the time of a successful retention call in half, and completely eliminated wrap-up process  Retention discount rate offers 49
  • 50.  Various pricing options, different service plans, new phone models, and a wide array of solutions Financial Projections Post partnership of 45% in US giant Verizon in Sep 2013, The example of Financial transaction: The transaction consideration of $130 billion consists of a combination of cash, Verizon common stock and other items. Verizon will pay Vodafone $58.9 billion in cash. To fund this portion of the consideration, Verizon has entered into a fully executed $61.0 billion Bridge Credit Agreement with J.P. Morgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., Bank of America, N.A. and Barclays. Verizon intends to reduce the commitments under the Bridge Credit Agreement with the issuance of permanent financing. In addition, Verizon expects to maintain capital structure, balance sheet and financial policies consistent with investment-grade credit metrics, in part based on 100 percent access to Verizon Wireless’ cash flow. Verizon will also issue common stock currently valued at approximately $60.2 billion to be distributed to Vodafone shareholders, subject to a collar arrangement with a floor price of $47.00 and a cap price of $51.00 that will determine the maximum and minimum number of shares to be issued upon closing of the transaction. In addition, Verizon will issue $5.0 billion in notes payable to Vodafone, and Verizon will sell its 23.1 percent minority stake in Vodafone Omnitel N.V. to Vodafone for $3.5 billion. The remaining $2.5 billion of the transaction value will be a combination of other consideration. Key highlights 50
  • 51. – Vodafone announces that it has reached agreement to dispose of its US group whose principal asset is its 45% interest in Verizon Wireless (“VZW”) to Verizon Communications Inc. (“Verizon” — NYSE: VZ), Vodafone’s joint venture partner, for a total consideration of US$130 billion (GBP84 billion). – The consideration comprises: – US$58.9 billion (GBP38.0 billion) in cash; – US$60.2 billion (GBP38.9 billion) in Verizon shares ; – US$5.0 billion (GBP3.2 billion) in the form of Verizon loan notes; – US$3.5 billion (GBP2.3 billion) in the form of Verizon’s 23% minority interest in Vodafone Italy; and – US$2.5 billion (GBP1.6 billion) through the assumption by Verizon of Vodafone net liabilities relating to the US Group. – The VZW Transaction represents an attractive valuation of 9.4x EV / LTM EBITDA and 13.2x EV / LTM OpFCF. – Vodafone intends to implement a new organic investment programme, Project Spring, to establish further network and service leadership through additional investments of GBP6 billion over the next three financial years. – At completion, Vodafone shareholders are expected to receive all the Verizon shares and US$23.9 billion of cash (the “Return of Value”) totalling US$84.0 billion (GBP54.3 billion), equivalent to 112p per share and representing 71% of the Net Proceeds. – Vodafone expects that strong free cash flow generation will continue to underpin shareholder returns. The Board, therefore, intends to increase the total 2014 financial year dividend per share by 8% to 11p, and intends to grow it annually thereafter. – Subject to the satisfaction of certain conditions precedent, the Transactions are expected to complete in Q1 2014. 51
  • 52. Budgeting Vodafone is worldwide global Telecom company and have well planned budgeting and IPO. Also, Financial statements and Financial Structuring are well managed. 52
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  • 56. Conclusion Vodafone with the help of its correct Online Marketing Strategies, E-Commerce and E-services at an affordable price can achieve Top one of the world's leading telecom companies with the huge customer base and growth. 56
  • 57. Bibliography / Webliography 1. http://www.experian.co.uk/assets/marketing-services/case-studies/case-studyvodafone.pdf 2. http://www.tripolis.com/customers/email-marketing-client-case-vodafone/ 3. www.campaignindia.in/Brand/vodafone 4. www.vodafone.com 5. www.vodafone.in 6. http://www.blastradius.com/work/vodafone/ 7. http://en.wikipedia.org/wiki/Telecommunications_statistics_in_India 8. http://www.articlesbase.com/branding-articles/vodafone039s-zuzu-ad-a-classicoligopolistic-product-1906012.html 9. http://www.vodafone.co.uk/about-us/selling-vodafone/ 10. http://iqcontent.com/work/case-studies/vodafone-myway/#sthash.5mqv0ctv.dpuf 11. http://www.businesscalltoaction.org/wpcontent/files_mf/bctavodafonecasestudyforweb96.pdf 12. https://www.google.co.in/search?q=internet+users+in+india+2013&tbm=isch&tbo=u&source=univ &sa=X&ei=8jitUo2HKYmPrQe_qoGQDA&ved=0CDkQsAQ&biw=1366&bih=666#facrc=_&imgd ii=_&imgrc=Is_js2ba6gtMrM%3A%3BcpGPFe3VyxzaTM%3Bhttp%253A%252F%252Fyourstory. 57
  • 58. in%252Fwpcontent%252Fuploads%252F2013%252F01%252Ffigure_1.jpg%3Bhttp%253A%252F%252Fyourst ory.com%252F2013%252F01%252Findia-to-have-130-million-mobile-internet-users-by-march2014%252F%3B593%3B273 13. http://newscenter.verizon.com/corporate/news-articles/2013 Thank You The End 58

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