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Brand Analysis and Evaluation PRESENTED BY: HITAISHI GUPTA 043026
Indian Telecom Industry Circles Number in millions Metros 4 114 A circles 5 288 B circles 8 335.5 C circles 6 115Indias teledensity has improved from under 4% in March 2001 to around 71% bythe end of March 2011.The mobile subscriber base (GSM and CDMA combined) has grown from under 2 mat the end of FY00 to touch 812 m at the end of March 2011 (average annualgrowth of nearly 73% during this eleven year period).
Indian Telecom Industry Others, 3.90% Reliance, 16.81 % Bharti, 19.70% Uninor, 3.67% Vodafone, 16.5 6% Aircel, 6.84% Tata, 9.97% Idea, 11.55% BSNL, 10.91%The GSM ARPU(Average revenue per user) is Rs 100 (~ USD 2.2) per month.There is a wide disparity in the rural and urban teledensity with rural teledensity at34% vs. urban teledensity of around 157%.
Vodafone-Overview Vodafone Mobile Subscribers in Vodafone Mobile Penetration in the world (%) the world (%) 140 Others, 16 Europe, 19 120 130 100 103 Africa, 10 US/Canada, 6 80 60 69 65 58 India, 15 40 Other Asia pacific, 18 20 China, 16 0 Europe US/Canada India China AfricaThe total mobile subscribers in the world is 5.6 billion , out of which India occupies a marketshare of 15 % , after Europe and China.
Vodafone-OverviewVodafone Customers by Market(%) Vodafone Revenue by Market (%) Others, 17 Germany, 17 India, 36 Others, 29 Spain, 5 UK, 5 Italy, 12 Italy, 6 Vodacom, 12 Spain, 11 Egypt, 9 Vodacom, Germany, 12 10 India, 8 UK, 11
Vodafone India-Overview2007 • Vodafone acquired a 67% stake in Hutchison Essar for $10.7 billion. The company was renamed Vodafone Essar. Hutch was rebranded to Vodafone.2008 • Vodafone acquired the licenses in remaining 7 circles and started its pending operations in Madhya Pradesh circle, as well as in Orissa, Assam, North East and Bihar. • Vodafone Group buys out its partner Essar from its2011 Indian mobile phone business. It paid $5.46 billion to take Essar out of its 33% stake in the Indian subsidiary. It left Vodafone owning 74% of the Indian business.
Vodafone India-Overview 20th September (9 PM) – 21st September (9 PM) 24-hour Nation-wide Rebranding Campaign 2500000000 13 Channels; 5 Languages TV Commercials, Contests etc
An entire episode of CNBC covered the transition as a case study Day-after brand recall for Vodafone was 80%Proclaimed by the industry and media as one of the best brand- launches the country has ever seen 35 Million Subscribers transitioned seamlessly into brandVodafone and within six months of launch, it became the brand of choice for over 44 million subscribers The brand transition was the largest, fastest and the most successful in the whole world. During the transition 4,00,000 multi brand outlets, over 350 Vodafone stores, over 1,000 mini stores, over 35 mobile stores and over 3,000 touch-points were rebranded in two months, with 60% completed within 48 hours of the launch - Times of India
Vodafone India-OverviewStrengths Weaknesses Strong brand name An international brand name may mean Wide distribution network that Indians may view it as a foreign Financially stable brand Strong brand connect with the customer Low margins to distributors and retailers Strong customer base Servicing of client needs.Opportunities Threats Untapped rural market A number of competitors entering the Introduction of newer technologies telecom space Value added services market Mobile number portability Business markets Fear of consolidation in the industry
Vodafone India PERCEPTUAL MAP High on service Vodafone Airtel BSNL Tata Reliance MTNLLow on esteem High on esteem Aircel Idea Unitech Loop Videocon MTS Low on service
Research Methodology • To conduct a Brand Analysis of Vodafone on the Research basis of the secondary research through a questionnaire, and primary research, in depth Objective interviews to tap the top of the mind brand and brand image of Vodafone.Scope of the • The study is limited to Delhi/NCR Region. study Sampling • The sampling technique applied is snowball sampling technique. techniqueSampling Unit • 120.
Brand Analysis Framework
Brand Analysis ConstructConstruct Component Item in QuestionnaireGeneral Brand Impression Brand Awareness I can recognize the brand among competing brands I can quickly recall the logo of the brand I can quickly recall the brand ambassador of the brand I can quickly recall its tv advertisement Brand Image Has a good reputation Is a prestigious brandBrand Specific Association Perceived Quality Has a good Network Has good Call rates Has good availability Has good services Emotional values Is the brand I love Makes me want to use it I want to stay associated with the brand Gives me pleasure I will Choose this brand over CompetitorsBrand Commitment Brand Loyalty I am loyal to this brand I will Choose this brand over CompetitorsEach item was measured on a 5-point Likert-type scaleanchored by “strongly disagree” (1) and “strongly agree”(5).
Findings Gender Female 40% Male 60%
Findings Age (in years) >40 8% <20 17%30-4028% 20-30 47%
Findings Yearly Family Income >300000 21%>1000000 28% 600001- 300000- 1000000 600000 44% 7%
Findings Monthly Spending on Mobile phone Bill50-100 1% >400 30% 101-200 47% 201-400 22%
FindingsColleagu Purchase Decision Influencers es Dealers 2% 1% Advertise ments 41% Friends 52% Family 4%
FindingsBrand that understands Indian Consumers well Airtel 28% Vodafone 45% Idea 9% Tata Docomo Reliance 5% 13%
FindingsBrand Factors important while choosing aCustomerImage Care 5% mobile service provider. services 3% Availability Value 2% added services 22% Network Call rates 36% 25% Offers 7%
FindingsFactors important while using mobile. SMS packs 19% Incoming and Internet outgoing 31% calls 50%
Favorite Telecom Brand- Analysis Cross Tab- association between mobile service provider and favorite telecom operator P- value <0.05 54.3% Reject Null Hypothesis 83.3% 50% H1: There is association between mobile service provider and favorite telecom operator 70% of the total sample chose Vodafone as its favorite telecom brand.Vodafone has good Brand equity and people like Vodafone as a brand but still they have different mobile service provider ????
Favorite Telecom Brand- Analysis Cross Tab- association 66.7% between gender and favorite telecom service provider 75% P- value >0.05 Fail to Reject Null Hypothesis H0: There is no association between gender and favorite telecom service providerBe it males or females, both love Vodafone as a brand and choose it over their own mobile service provider.
Monthly Spending on Mobile Phone Bill and Service Provider Correlation Cross Tab- association 67.9% between monthly mobile bill and telecom service provider 52.8% P- value <0.05 44.4% Reject Null Hypothesis H1: There is association between monthly mobile bill and telecom service provider It was seen that cost conscious consumers who don’t spend much on mobile phones or want to spend low, have Reliance as their mobile connection.
FindingsConstruct Component Item in Vodafone Airtel Idea Reliance Tata questionnaire DocomoGeneral Brand Brand Image Has a good 4.48 4.16 3.12 1.77 2.47Impression reputation Is a prestigious 4.49 4.53 3.78 2.27 3.08 brand Brand I can quickly recall 4.51 4.53 3.87 1.53 3.13 Awareness the logo of the brand I can quickly recall 4.5 4.48 3.8 2.18 3.07 the brand ambassador of the brand I can quickly recall 4.55 4.47 4.51 1.63 3.02 the tv ads of the brandBrand Specific Perceived Has a good 4.53 3.80 3.74 1.68 2.36Association Quality network Has good call rates 2.39 2.37 3.83 4.54 4.51 Has good 4.48 4.52 3.8 3.75 3.03 availability Has good services 4.51 3.84 3.13 3.03 3.08 Emotional Is the brand I love 4.47 3.13 2.34 2.29 2.33 Values Makes me want to 4.46 3.12 2.38 2.28 2.39 use it I want to stay 4.43 3.79 4.36 2.28 3.08 associated with the brandBrand Brand I am loyal to the 4.41 3.88 2.31 2.23 2.3Commitment Loyalty brand I will choose the 4.43 4.51 3.07 2.16 3 brand over competitors
General Brand Impression- Brand Image Has a good reputation Is a prestigious Brand P-Value < 0.05 <0.05 Analysis Brand type has an effect Brand type has effect on: on: having a good having it being perceived reputation. as a prestigious brand. Reliance has the most Tata Docomo and poor reputation. Reliance aren’t considered to be prestigious.
General Brand Impression- Brand Awareness Recall of Logo Recall of brand Recall of tv ads of ambassador the brand.P-Value < 0.05 <0.05 <0.05Analysis Brand type has an Brand type has an Brand type has an effect on: the effect on: the effect on: the Recall of logo of Recall of brand Recall of tv ads of the brand. ambassador of the the brand. Reliance logo had brand. Reliance has the the poorest recall. Vodafone and least, followed by Idea have the Tata Indicom. highest recall. Reliance has the least.
Brand Specific Association- Perceived Quality Has a good Has good call Having good Network rates. availability.P-Value < 0.05 <0.05 <0.05Analysis Brand type has an Brand type has an Brand type has an effect on: having it effect on: brand effect on: brand being perceived to having good call having good have a good rates. availability. network. Reliance Vodafone is has the most poor perceived to have Network. worst call rates followed closely by Airtel.
Brand Specific Association- Emotional values Is the brand I Makes me want to I want to stay love use it. associated with the BrandP-Value < 0.05 <0.05 <0.05Analysis Brand type has an Brand type has an Brand type has an effect on: brand effect on: brand effect on: brand being loved more. that pulls that customers customers towards want to stay . it. Reliance scores associated with. the least and Vodafone the highest.
Brand Commitment-Brand Loyalty I am loyal to the I will choose the Brand Brand over CompetitorsP-Value < 0.05 <0.05Analysis Brand type has an Brand type has an effect on: brand that effect on: brand that customers are loyal to. customers over Vodafone has the competitors. highest loyalists. .
Recommendations Brand Customer Factors important while using mobile. Factors important while choosing a Image Care mobile service provider.1 5% services 3% Availability 2% SMS packs Value 19% added services 22% Incoming and Network outgoing Call rates 36% Internet calls 25% 31% 50% Offers 7%• Vodafone should work on its call rates as it scores very low in comparison to its competitors on having good call rates.• Call rates form the second most important factor while choosing a mobile service provider and Incoming and outgoing calls form the most important factor while using mobile services.
Recommendations Airtel Vodafone2 20 17 3.1 2.85 Advertising Spent 2009 (Rs billion) Increase in users (million)• Advertising spent has a direct correlation with increase in the number of subscribers. Hence Vodafone should continue to advertise and penetrate deeper into the Indian market.• Vodafone should also go for Market Development for the Rural part of India. Tele density in India is still 70%. There is 30% of the untapped market left to be tapped and only 37% penetration in rural India.
Recommendations Change in subscriber after MNP (lakhs)3 Change in subscriber(lakhs) 8.24 7.11 6.5 Idea Rcom Vodafone Bharti Airtel -12• Idea gained the maximum subscribers after MNP because it made all the effort to advertise for MNP.• Vodafone should also advertise on the benefits that mobile users would gain by changing their connection to Vodafone.
Recommendations4 Since Five Indian states would stand among the 20 most populous nations in the world and Uttar Pradesh has a population which is more than the fifth largest country in the world, hence Vodafone should focus its marketing efforts to acquire users in these 5 states.
Recommendations5• B and C circle have very low penetration which gives Vodafone a market development opportunity.• Vodafone should come up with some special plans for these two circle in order to increase its reach.
Recommendations Monthly Spending on Mobile6 phone Bill 50-100 1% >400 30% 101-200 47% 201-400 22%Vodafone, which has an average of 5 to 6 megahertz of spectrum in mostzones in India, compared with the 22 megahertz it holds on average inother countries should use its global expertise and increase the spectrum inIndia as well.This would help it provide better Value Added Services at cheaper Ratesand increase average revenue per customer.
Recommendations What connects you with Vodafone the most Happy to Power to you Express yourself7 Help 0% 2% 7% Red/White Colors 12% Pug/Dog 21% Zoo Zoo 58%• The consumers tend to remember more about the zoo zoos and the pug while the basic service attributes that can be attached to a telecom operator are not really crossing the mind of the consumer when talking about the brand.
Recommendations8• Vodafone’s tagline of “Happy to Help” is not going down well as consumers who are not satisfied with Vodafone cite the main reason as poor customer service. Clearly Vodafone is not being able to stand up to its own promise.
Indepth Interviews- Vodafone Users
Limitations• We faced time constraint during our research, as we had less number of days for the completion of the research.• Money constraints: We haven’t had the proficiency to carry wide surveys for collecting primary data, and hence were not also able to hire specialized market experts and research agencies to collect primary data. Thus, we had to go for obtaining secondary data that is cheaper to obtain.• Sample size: Due to time constraint, we had to go for snowball sampling.• The research was conducted in open marketplace where numerous variables act on research settings.
References• Lee, M.Y., Knight D., Kim Y.K. (2008). Brand analysis of a U.S. global brand in comparison with domestic brands. Journal of Product & Brand Management.• Bhardwaj, V., Kumar, A. and Kim, Y.K. (2010). Brand Analyses of U.S. Global and• Local Brands in India: The Case of Levis. Journal of Global Marketing.• Kotler, P., Keller, K., Lane, Koshy, A., Jha, M. (2009), Marketing Management (13e), Prentice Hall, Delhi.• Vodafone expects to triple data revenue in India, The Times of India, Jan 9, 2012. Accessed on 19 January 2012.• Rajpurohit, R.C.S. and Dr. Vasita, M.L (2011), Consumer Preferences and Satisfaction towards various mobile phone services providers.• Sathish M (Feb. 2011), A Study on Consumer Switching Behaviour in Cellular Service Provider: A Study with reference to Chennai.• Service Provider wise Wireless Market Share (CMS) October 2011, http://www.indiatelecomonline.com/service- provider-wise-wireless-market-share-october-2011/, accessed on 10 January 2012.• Vodafone Annual report2011, http://www.vodafone.com/content/annualreport/annual_report11/index.html, accessed on 9 January 2012.• Snapshot: India Telecom Market, http://www.telecomcircle.com/2009/06/india-telecom/, accessed on 9 January 2012.• Research Indian Telecom Industry, http://www.equitymaster.com/research-it/sector-info/telecom/, accessed on 9 January 2012.