Vodaphone online marketing case study

Project report on Vodafone E-Marketing Plan

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
Content Marketing .................................................................................................................................. 42
Call To Action Marketing ....................................................................................................................... 44
Key Success Factors ............................................................................................................................. 45
Referral Strategy ..................................................................................................................................... 47
Strategy for increasing transactions ............................................................................................................ 48
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Customer Retention Strategy CRM .......................................................................................................... 49
Financial Projections ................................................................................................................................... 50
Budgeting .................................................................................................................................................... 52
Conclusion .................................................................................................................................................. 56
Bibliography / Webliography ...................................................................................................................... 57

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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:
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―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.

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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
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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.

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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.

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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.
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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

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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

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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.

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Target Customer Market
Target Group : Corporates, Student campus plans
Segment : Upper Class and above, Lifestyle
Positioning : Inviting, cheerful and humorous

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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.

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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.
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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.

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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.

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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

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

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
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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

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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

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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.

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● 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
●

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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.

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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!



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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.

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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.

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Webinar
Vodafone recently facilitates Smart cities and Mobile Money webinar to sale the products and
perform brand extension scheme.

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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

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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

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.

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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.

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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

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

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.

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Referral Strategy
-

Cost Leadership

-

Differentiation in Assortment

-

Unmatched Customer Service

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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.

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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

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

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


– 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


Budgeting
Vodafone is worldwide global Telecom company and have well planned budgeting and IPO. Also,
Financial statements and Financial Structuring are well managed.

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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.

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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

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

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