Vodafone India 1

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  • 1. IMC Plan for Vodafone Assignment Presentation by: - Akhil Gupta, Student, ISMC Roll No. 1 [email_address] Presentation to: - Ms. Ashita Agarwal Director ISMC, Noida
  • 2. Introduction
    • Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai.
    • Vodafone Essar now has operations in 16 circles covering 86% of India’s mobile customer base, with over 34.1 million customers.
    • Vodafone Essar, under the Hutch brand, has been named the -
      • 'Most Respected Telecom Company'
      • 'Best Mobile Service in the country'
      • 'Most Creative and Most Effective Advertiser of the Year'
  • 3. Introduction
    • Vodafone is the world's leading international mobile communications company. It now 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.
    • Vodafone across India had launched their brand on 21st September 2007.
  • 4. Introduction
    • The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like -
      • Steel
      • Energy
      • Power
      • Communications
      • Shipping and Logistics
      • Constructions
    • The Group has an asset base of over Rs.400 billion (US$ 10 billion) and employs over 20,000 people
  • 5. Product and Services
    • World calling Grids
    • Post-paid services
    • Prep-paid services
    • Vodafone handyphone
    • Vodafone PCO
  • 6. Pest Analysis : A Environmental Scanning
    • PEST Analysis is an analysis of the Company at a broad macro level and examines the Company under the headings of Political, Economic, Social and Technological factors.
  • 7. Pest Analysis
    • Political:- Governmental and legal issues affecting how the company operates.
      • Regulation
      • Infrastructure
      • Banning of phone use in certain circumstances
      • Health issues
    • Economic:- Factors influencing the purchasing power of customers and the company's cost of capital.
      • Cost of 3G licenses
      • Cost of calls being driven down
      • Worldwide recession
      • Third world countries
  • 8. Pest Analysis
    • Social:- Demographic and cultural aspects of the environment which influence customer needs and market size.
      • Health Issues
      • Demographics
      • Social Trends
      • Picture phones
      • Mobile Etiquette
      • Saturation Point
    • Technological:-
      • 3G
      • UMTS (2.5G)
      • GPRS/WAP
      • SMS / MMS
  • 9. STP Analysis
    • Segmentation
      • Income
      • Age
      • Service Usage
      • Nature of Customer
        • Institutional
        • Sole
      • Life of the service
      • Geographical condition
  • 10.
    • Targeting:- Vodafone is adopting a multi-segment approach. They are offering a series of differentiated products to their respective markets.
      • Home calling cards for the family of those professionals who use to work abroad.
      • Rs.10 recharge for small users
      • Cheap SMS facility for youths
      • Facilities for circle users
    STP Analysis
  • 11. STP Analysis
    • Positioning: - “Where you go the network follows you”
      • Hutch, as a brand, always tried to connect with consumers in a simple, honest and real manner, while Vodafone is a more young and fun brand. So consumers will see a shift reflecting a more vibrant brand.”
      • The “Pug” and the actor Irfan Khan will be retained for the brand promotions.
      • They are talking about the exclusivity of the network and the services they are offering to the consumers.
  • 12. Players of Indian Telecom vodafone
  • 13. Competitive Growth of all Telecom companies
  • 14. Competitive Analysis (Market Share as on 30/09/07) 100225 Shyam (CDMA) 161016 HFCL (CDMA) 1153357 BPL(GSM) 2045322 Hutchison Telecom(GSM) 2772120 MTNL(GSM) 3481710 Spice(GSM) 8039355 Aircel(GSM) 18671860 IDEA(GSM) 19497738 Tata (CDMA) 30303230 BSNL(GSM) 33612224 Vodafone Essar(GSM) 35635249 Reliance (CDMA + GSM) 48875664 Airtel(GSM) Total Subscribers Group Company
  • 15. Target Markets in India
  • 16. Vodafone’s Marketing Strategy
    • Our strategic objective is
      • Innovate and deliver on our customers’ total communications needs.
    • Vodafone, too, needed to educate consumers about cellular telephony: -
      • "Can I call STD?"
      • "Can I use my phone in a lift?"
      • "What is airtime?"
  • 17. Marketing Objectives
    • Vodafone says that they want to be the top mobile service provider of India by the end of the year 2010.
      • Vodafone have forecasted Indian wireless subscriber base to reach 249.5 million by March 2008.
      • The average revenue per user is been falling now. So it is the objective of Vodafone to regain the ARPU. (From a level of Rs. 438.29 for the july september quarter of 2005, the ARPU for Vodafone Essar stood at Rs. 315.81 for the January-March quarter of 2007 )
      • India is having high customer base with low penetration level i.e. 17%. So they also want to cash this opportunity.
  • 18. Marketing Communication Objectives
    • Building Product category/wants
    • Creating brand awareness
    • Enhance Attitudes, Influence Purchases
  • 19. Commercial Strategy
    • Overview
    • Rebranding
      • Stores
      • Mass media coverage
    • Innovative Distribution to reach the Customer
      • Exclusive Shops
      • Hub and Spoke
      • Associate distributors
    • Customer Service
      • Shops and Call Centers
      • Vans
      • Help Desks
  • 20. AirTel’s Marketing Strategy
    • "We positioned Airtel as an aspirational and lifestyle brand, in a way that trivialised the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave him a badge value."
    • Hemant Sachdev, chief marketing officer (mobility) and director, Bharti Tele-Ventures.
  • 21. AirTel’s Marketing Strategy
    • AirTel’s strategy is to be leader in
      • Innovations
      • Network
      • Offers and Services
    • Strategy of making customers educated about the services like: -
      • “ what is roaming?”
      • “ what is coverage area?”
      • “ how to make international calls?”
      • AirTel adopted the product driven communication to make their products successful in the market and also emotional communication to target younger people .
  • 22. Competitive Analysis (positioning strategy)
    • Vodafone has veered towards warmth and emotions.
    • Vodafone used the powerful visual imagery of a dog.
    • AirTel is focused on functionality and efficiency.
    • Airtel chose to use music, which is not nearly as effective.
  • 23. Competitive Analysis (target audience)
    • Vodafone
      • They are targeting middle class persons as their target audience.
      • It can be justified by by their product like 10rs. Chota recharge.
    • Airtel
      • Élite
      • Upmarket professionals
      • Entrepreneurs.
  • 24. The Marketing Communication Plan
    • There is big untapped rural market. So it is the opportunity in front of Vodafone to capture it.
    • The objective this IMC plan is to create the brand awareness and to increase the customer base.
    • The target audience of this Marcom plan will remain the same.
    • Marketing Communication Mix: -
      • Advertising
      • Print Media
      • Outdoor Advertising
  • 25. The Marketing Background Worksheet Marketing communication will help Vodafone to communicate the right message in the right way. Marketing Communications 6 To be the market leader by the end of 2010 and to build brand salience. Marketing Objectives 5 AirTel is positioning itself on the basis of functionality and efficiency Competitive Evaluation 4 My business broadly comes from consumer market from Urban areas. Source of business 3 Market Assessment 2 Mobile Service Provider Product Descriptions 1 Questions Key Considerations S. No.
  • 26. The Key Target Audience Worksheet
    • The sales of Vodafone basically comes from consumer market from urban areas from middle and upper middle class families.
    • It requires continues usage.
    • Refer to STP analysis.
    • Basically the user of the mobile is decision maker.
  • 27. The Decision Grid same College going students, Businessman, Professionals, Working Members. User Owner User of Mobile Purchaser Owner and his peer group User of Mobile. Decider Peer groups, retailer & profit margins Children and Peer groups Influencer Owner, Demand of Product in the market User of Mobile, Peer Groups. Initiator Trade Consumer Role Target Audience
  • 28. The Communication Strategy Worksheet
    • Communication Objectives: -
      • Building Product category/wants.
      • Creating Brand Awareness
      • Enhancing the consumers attitude towards the product which will influence them to by more.
    • Brand Attitude Strategy
    • What do we want people to do after doing this communication?
      • Vodafone should be in the top of the mind of the consumers.
      • Increase the sales to achieve the target.
      • Building relationship with the customer.
  • 29. The Behavior Sequence Model (communication based) - - -- - - - -- - - - - - - -- - - - - -- - - - - -- - - - - Purchase Facilitation, Brand Attitude How is it likely to occur - - - - - -- -- Offers and promotions should be clearly visible Visibility, be in the top of the minds of the customer Brand Attitude Timing of purchase - - - - - - - - Retail Outlet of service provider New offers and new product launches Purchase Intention Where purchase is likely to occur Feedback Brand Attitude Product Information Category need, Brand Awareness Decision roles involved Usage Purchase Information search Need Arousal Consideration at each stage Decision Stages
  • 30. The Behavior Sequence Model (purchase based) Data Inputs (1) What (decision stages) (2) Who (roles) (3) Where (location) (4) When (time & timing) (5) How (description) Need Arousal Purchase Information Search & Evaluation Usage User (target audience) Peer Groups, user, family Members, Children's User, Head of the Family User (target audience) Working Place While Shopping, Watching TV, Having Discussion with Peer Group Retail Outlet, Company outlet Workplace, Home At the Time of promotion, not specified Before purchasing the product i.e. @ need arousal At the Time of promotion or any time After making purchase Life Style, Workaholic TV Ads, News paper, Internet, Pops, Outdoor Advertising Cash or credit card SMS, Calls, Internet
  • 31. The IMC Task Grid M-Commerce By offering new services User and Peer Groups Brand Recall Usage Sales Promotion Point of Purchase, Promotions User of the mobile Be in the top of the mind of the consumer Purchase Brochures, Pamphlets, Web Out of home and Ads on TV Children Brand Recognition Information Search/ Evaluation TVC, Outdoor Advertising, Print Reading Newspaper & watching news User of the mobile Need Recognition Need Arousal List best IMC option for satisfying each communication task Determine best way of reaching primary target audience group at each stage Determine primary target audience group to reach at each stage List specific result desired from the appropriate communication effect needed at each stages From Decision Grid list appropriate decision stages IMC Options Where and When Target Audience Communication Task Decision Stage
  • 32. Thank You!