IIBD Case Competition


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IIBD Case Competition

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IIBD Case Competition

  1. 1. Bring Zoozoo to indian life, indian home, and indian heart Brand Communication Strategies
  2. 2. Executive Summary Vodafone Essar is currently the second largest telecom company in India in terms of market share, and aims ascend the ranks to become the market leader. It has undergone long history until its establishment in the Indian telecom market, and yet there are still plenty of challenges to overcome. Outstanding ideas along with numerous extraordinary processes have been implemented with top-notch outcomes, ultimately resulting in Vodafone Essar’s present-day position. The Zoozoos, lively anthropomorphic creatures acting as Vodafone Essar’s brand ambassador today, are widely known and loved by Indian communities. Still, possessing highly acknowledged brand image is far from enough. Vodafone Essar seeks to be the leading company in terms of profitability and subscribers share. Vodafone Essar targets rural communities as its primary market. It has been an expedient decision so far, as noted by a huge market potential within such areas. What should the company seek after all? Vodafone Essar is fully aware of two of Indian market’s sharpest strength: huge population and high telecom market growth, and therefore able to gain value through several strategies. We would like to entice on our ideas to accomplish Vodafone Essar’s goals. India is a big country with a variety of cultures and customs. To simply identify Indian telecom markets as a singular, perfectly uniform market would be naïve. Vodafone Essar should capitalize on the hottest today issue and the rich, vibrant Indian way of life, augmenting such with its Zoozoo ambassador. Making Zoozoos blend with Indian communities effectively and naturally should be Vodafone Essar’s primary objective in delivering its values through the Indian markets. The Indian culture and customs in particular need to be paid special attention in capitalizing the ongoing market affection. We would propose that, with its Zoozoos, Vodafone Essar actively pursues market bases and creates breakthroughs in order to effectively expand its market share and ultimately lead the Indian telecom market. The marketing programs we would opine are Zoozoo Place, Cricket Time with Zoozoos, and Zoozoo Green India. Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 2
  3. 3. Create ZooZoo (Cricket Time With ZooZoo) ZooZoo Palace “I’m Indian, and ZooZoo Greenize India I love The concept of this idea is simply to bring zoozoo closer to subscribers, with transfer-ball strategy, to touch the life of Indians, and further could be beneficial as vehicle tool for another vodafone activities. Inside the bus, there will be 3 zoozoo games tools (like play station), wifi area, credit payment and other services for subscribers. At a moment, zoozoo palace can stop by in certain cities and Vodafone could make wideopen zoozoo tittle-tattle time for subscribers in special moments such as Valentine Day, Indepence Day, Durga Puja, Indian Premier League, Diwali, Christmas, Idul Fitri, Holiday, New Year. There also could be a programme “Zoozoo Dance” among the subscribers. cricket” Realizing the most lovable sport in India is Cricket, Vodafone can touch the Indian by developing cricket program. Subscribers can have the right to participate in this program, and play cricket if they are lucky selected. Subscribers should send their best story with Vodafone, or tweet and mention Vodafone Zoozoo twitter account their best statement about Vodafone, then Vodafone will choose the best 32 subscribers among them to get the ticket for Cricket (11 players plus 7 substitute players in each team). This game will be held periodicaly every two month, there will be two teams compete each. Targeted market is young Indians, include internet citizen as the selection happening on social media twitter. Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART Vodafone could make Corporate Social Responsibilities program. Subscribers and zoozoo lovers are entangled in the activity of collecting garbage in Greenerize India. All collected used plastic will be recycled to make a plastic zoozoo doll. This environtmentally friendly strategies will embed in the subscribers’ heart. Participant of the program would be given recycled zoozoo doll for free.
  4. 4. Execution Strategy First Step Customer Insight represents a deep understanding of customer needs and the drivers of customer behavior at a level well beyond what customers are able to articulate themselves Second Step. Action is a marketing interaction between consumers and the product, where consumers can understand the product better and accept it as a part of their lives.” Third Step Establish relationships with customers, both existing customers and potential customers the easiest way is to make both communities Online and offline, The objective Relationship is emphasis building and maintaining profitable long term relationship with customer by creating superior customer valve and satisfactions. and making them feel good about company by giving the some kind of personal connection to business Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
  5. 5. Background Vodafone Company Started its business by overtake Hutch company in the year 2007 that owned 67% stake in Hutchison Essar. Have had long journey in expanding its business, Vodafone today operates in all 23 circles telecom in India and has the second large market share below Bharti Airtel. Vodafone Essar is well-known with its Zoozoo campaign, which now become ambassador. Zoozoo is used to promote Vodafone’s Value Added Service (VAS) commercial as VAS gives higher margin than voice transfer service. Facebook as the platform to launched Zoozoo campaign now has about 1.979.323 fans as of June 6th 2011. Current Situation Triple Bottom Line People-planet-profit is the three pillars as criteria for measuring organizational success. This issue become so populer, instead the company believe by giving more they could achieve more. India, a developing country, has big potential to be developed more in such ways.Vodafone India could think further to gain more subscribers and its effect to profitability, by simply become a part of Indians, live the Indians way. Telecom Industries [Street Address] [City], [State][Postal Code] Presently, one can safely regard the Indian telecom industry as the world’s fastest growing industry with more than 800 million mobile phone subscribers as of March 2011. As a matter of fact, India also possesses the second largest telecommunications network in the world after China. Projected that India will have 1.159 billion mobile subscribers by 2013, telecom industries in India are facing huge to achieve more in their business. However, there is TRAI (Telecom Regulatory Authority of India) that entrusted to control tarrifs and other policies. As the mobile tarrifs in India is the lowest in the world, telecom industry become more competitive. Competitor Bharti Airtel as the biggest and market leader in service provider company in India is the rival and big competitor for Vodafone Essar. Bharti, as local company, started its telecom service business in 1995, has major market share with more than 185 million customers across its operations (slideshare.net, 2010) or 27,61% as in January 2011 (slideshare, 2011), keep strengthen its position in market not only with Brand Ambassador (Sharukh Khan & Sachin Tendulker) and advertisement but also with promotion with study of poor children. Bharti Airtel’s target market is people who lives in big cities and town or metropolitans, while Vodafone has different target market which is people living in small town and villages. Both company use almost the same strategy for marketing mix, these are low price strategy, maximum outlet and service centres, and various schemes for pre-paid and post-paid. Both company also operates its business in all 23 circles telecom in India. Bharti tried to touch the people and customer with its commercial and inspiring video, that tell about historical India related to Bharti. This is made to embed people with nationalism in India, and seem to have nationalist Indian to be the subscriber of Bharti. Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 5
  6. 6. Redifining Segmenting Targeting Vodafone Essar Segmenting   Targeting Geographical segment (Rural and Urban India) Demographic segment – middle Up income groups  People living in small towns and  People living in Big towns and villages. small townss.  Poor and middle income groups.  Midlle Up income groups.  Youngsters in big cities.  Youngsters and Businessman  Businessmen Affective   Positioning Conative   Creating brands Ads and promotions High Quality Feature Awareness Cognitive Knowledge Affective Interest Preference } } Buying Conative Satisfaction Loyality Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 6 Main Share Heart Share } Market Share
  7. 7. SWOT ANALYSIS   One of big telecom company in India Had a historical legal troubles for that covers all 23 telecom circles in cruelty towards the dog in the video India. As the secong market leader in advertisement’s making.  India, Vodafone Essar own  The brand image seemed to deteriorate without pug’s magic, when the 23.59% (wikipedia) and still keep transition from Hutch to Vodafone growing.  Having quiet large market share about brand  Have multi-segment target market so Having second large market share below the rank of Bharti Airtel’s that they can offer products with differentiated to all ages.  Have a strong position in market with S W ZooZoo Campaign using Zoozoo character as the icon.  Huge potential market in India as T O telecom industries is the world’s fastest growing industry.   High technology using social media to market leader in India, which is Bharti advertise and branding its company  Airtel There are festivals and events such as  India Premier League (IPL) that Rapid changing technology include in telecommunication tools Vodafone could participate in it or  develop such that programme.  Well-known competitor company and Uncertainty of economic condition in India Indians spending on information and communication technology increase from 2010 spending of $65.23 billion to spending 2011 of $71.9 billion, 10.3% increasing. Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 7
  8. 8. Strategic Direction Affirm and expand influence over Indian market through excellent brand image by ascertaining loyalty of present customer and improving market share and profitability to be market leader in India’s telecom industry. The Market is THERE, You can GET IN IF... You have the RIGHT KEY Bring Zoozoo to Indians LIFE, Indians HOME, and Indians HEART Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 8
  9. 9. What is happening? Vodafone’s zoozoo campaign, out of the blue, successfully become Indians favorite, for more than 2 Millions facebook fans and more than 10 Thousands followers in twitter. “An outstanding idea” ever made for commercial Others: Vodafone Tuesday Offer Eat Out, Cooperation with companies or entreprises, Zoozoo merchandises such as mug and t-shirt. Celebrity endorsment “Irfaan Khan” boolywood actor for Slumdog Millionaire, Durga Puja Festival, Parallel commercial in Indians Premier League, has embeded in the Indians. No doubt about the way for branding, it has created good brand image of Vodafone. However, Vodafone need to go deeper and further to develop more. Vodafone tried to maintain the customers and brought satisfaction to its customers. Cooperation with companies set up to maintain its market share. Vodafone could obtain these strategies. Creating excellent brand image is a big challenge for Vodafone ever since its first establishment. Many strategies have been implemented to gain value for company. Vodafone expects to have increasing value every time, for its brand image that affect market share and also profitability ratios. Zoozoo Campaign absolutly brought positive brand image. However, after so long journey, Vodafone has not yet been the leading telecom company in term of market share and also profitability. What is the MYSTERY over all? Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 9
  10. 10. Cost (in million rupees) No Things to buy 1 Zoozoo Palace Double Decker bus Zoozoo game set Bus Interior cost Other costs (drivers wage, gasoline) 2 Zoozoo Green India Recycling plastic cost 3 Cricket with Zoozoos Promotion Advertisement in television Cricket Ground rent Zoozoo Cricket Award (the best player) Total Cost Item Total cost 16,50 0,30 1,56 0,10 4 12 4 4 66,00 3,60 6,25 0,40 0,17 10 1,65 6 6 0,30 4,69 1,35 84,24 0,30 0,78 0,23 Timeline Year 1 Year 2 Year 3 Year 4 Year 5 Maintain current strategies (Zoozoo video campaign & merchandises, social media facebook and twitter, Vodafone Tuesday Offer Eat Out) Zoozoo palace Dance zoozoo in special days and events Zoozoo Greenize India tittle-tattle with zoozoo in gathering program Zoozoo Cricket Time Promote Zoozoo Cricket Time Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 10
  11. 11. SAL ES N Product Tota l mar ket size N Vodaf one marke t share Vodafo ne 812 25% Total Sales N+1 Sale s Expec ted annua l growt h Total mark et size N+ 1 Vodaf one marke t share 203, 00 4% 844, 48 27% 203, 00 N+2 Sales Total mark et size N+ 2 Vodaf one marke t share 228, 01 878, 26 29% N+3 Sales Total mark et size N+ 3 Vodaf one marke t share 254, 70 913, 39 N+4 Sales Total mark et size N+ 4 Vodaf one marke t share 31% 283, 15 949, 93 33% N+5 Sales Total mark et size N+ 5 Vodaf one marke t share Sales TOT AL sales by prod uct 313, 48 987, 92 35% 345, 77 1425, 10 1425, 10 228, 01 283, 15 313, 48 345, 77 12,3 2% Sales Growth Rate 254, 70 11,7 0% 11,1 7% 10,7 1% 10,3 0% MARKETING COSTS: Marketing cost growth rate = 65,00% of sales growth Year N = 2 7,61% 7,26% 6,96% 6,70% N+1 Marketing costs before specific action: 8,01% N+2 N+3 N+4 N+5 2,16 2,32 2,49 2,67 2,85 76,25 0,4 0,4 0,40 0,40 Specific action marketing costs: Zoozoo Palace Zoozoo Green India Cricket with Zoozoos Total Marketing Costs: 1,65 0,30 6,34 1,35 1,35 1,35 78,71 9,06 5,89 4,42 4,60 Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 93,67
  12. 12. Profit and Loss Million Rupees SALES Cost of goods MARGIN ON OPERATIONS Advertising & Promotions OPERATING RESULT % 1425,1 1157,9 267,2 93,7 100,0% 81,3% 18,8% 6,6% 173,5 12,2% Margin on operations vodafone 19% 267,2 TOTAL 1425,10 267,2 Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 12
  13. 13. http://mosoci.com/blog/wp-content/uploads/2009/03/cultural-insights-india-part.pdf http://www.vodafone.com/content/annualreport/annual_report08/performance/financial_pos_and_resour ces/index.html http://www.vodafone.com/content/annualreport/annual_report08/performance/financial_pos_and_resour ces/index.html http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/annual_report_accounts_200 9.pdf http://www.slideshare.net/gaurpiyush90/airtel-finncial-analysis-marketing-strategy http://www.siliconindia.com/shownews/India_is_the_2nd_largest_CDMA_market-nid-57694.html http://www.shanzai.com/index.php/market-mayhem/asia-analysis/450-cdma-market-in-india http://articles.economictimes.indiatimes.com/2009-05-29/news/28398341_1_cdma-users-cdma-market-cdg http://www.slideshare.net/Sutanshu/airtel-presentation-2011 http://www.expresscomputeronline.com/20110117/expressintelligententerprise20.shtml http://en.wikipedia.org/wiki/Triple_bottom_line http://bonelessresearch.blogspot.com/2011/06/kolkata-wireless-telecom-market-2011.html http://en.wikipedia.org/wiki/Communications_in_India http://www.dailymarkets.com/stock/2011/05/31/earnings-scorecard-vodafone/ http://www.cellular-news.com/story/39099.php Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 13
  14. 14. Annexure Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 14
  15. 15. Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART 15