Vodafone

British Cultural Influence on the working of Vodafone

Introduction to Vodafone• Vodafone was formed in 1984 as a subsidiary of Racal

Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc.

• Took over Hutch in India for $11.1bn in 2005. Since then catering customers demand in India

MARKETING MIX OF VODAFONE

The marketing mix is a combination of many features that can be represented by the four Ps.

• product - features and benefits of a good or service• place - where the good or service can be bought• price - the cost of a good or service• promotion - how customers are made aware of a good or

service.

PRODUCT• Vodafone has always laid emphasis on product innovation and

uniqueness.• The logo of Vodafone contains a quotation mark with a circle with o in the

Vodafone logotype being the opening and closing quotation marks suggesting conversation. Its logo is a true representation of the belief The start of a new conversation, a trigger, a catalyst, a mark of true pioneering

• Vodafone was the first to introduce international roaming call in the world.

• It also 1st introduced commercial roaming GPRS service as it understood the changing cultural trends of the customers.

• When launched in India Vodafone mainly segmented on the middle class section of the society and came up with the concept of Chota Recharge

• Indian culture was sensitive about exploitation of animals and so Vodafone redesigned its successful add campaign of the pug

• As the problem of deforestation is increasing and there is urgent need for conservation of trees, Vodafone has introduced online billing system for its customers

• As the concept of Globalization is on the verge Vodafone has come up with features that provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information - and soon view video clips and send video messages through latest 3G bandwidth at ultra high speed.

• Vodafone live! provides on-the-move information services.

PRICE• Pricing is one of the most important elements of the marketing

mix, as it is the only mix, which generates a turnover for the organization .

• It costs to produce and design a product, it costs to distribute a product and costs to promote it.

• An organization can adopt a number of pricing strategies. The pricing strategies are based much on what objectives the company has set itself to achieve.

• Penetration pricing • Skimming pricing • Competition pricing• Product Line Pricing• Bundle Pricing • Psychological pricing • Premium pricing • Optional pricing

CULTURE• Cultural factors have a significant impact on customer behaviour.

• Culture is the most basic cause of a person’s wants and behaviour. Growing up, children learn basic values, perception and wants from the family and other important groups.

• Marketing is always trying to spot “cultural shifts” which might point to new products that might be wanted by customers or to increased demand.

• Operators must attempt to extract the full revenue potential of each service while taking account of a wide variety of factors, including affordability for end-users, the unique capacity and cost limitations of cellular technology, and the ability to differentiate from competitors:

• UK women use mobile phones chiefly to communicate with people they know via voice, text and picture messaging. Men are more likely to own a Smartphone and to use its advanced features, such as Web access, e-mail and downloading capability.

• Women's online habits diverged somewhat from those of men. Females were, on average, more drawn to social engagement; content and services focused on friends, family and the interests they shared; and, thanks to their role as chief household shopper, bargain hunting. I

• Vodafone has begun offering new fees and features to stir demand for mobile Internet usage as there are currently a total of 7.4 million mobile internet users in the UK.

• Pay as you go Plans.-PAYG

• Small businesses -Cheapside business and store efforts- “Vodafone's move to offer a dedicated service to the local business community will help to ensure that businesses get the most out of their communications needs for the best possible value on the UK's best network.”

VODAFONE IN INDIA• Vodafone in India Includes:• Launch of ‘India Pack’ on its Vodafone Alert SMS service to commemorate the

62nd Independence Day. aimed at helping subscribers get information on the History of Indian independence, culture, geography and people of India. # from their mobile, Rs 30 as monthly charges

• Diwali promotion for its customers across India*. This Diwali, 500 lucky customers will win a package of Dulux to paint their homes as a part of this unique promotional scheme!

• Other schemes include the ‘chota recharge option’ and low tariff Unlimited SMS plans

• Launch of Rs 52 Bonus Card that allows its prepaid customers in Mumbai to make Local and STD calls to Vodafone numbers @ 1p/sec. Calls to other phones (mobile or landline) across networks, anywhere in India, will be charged @1.2 p/sec

• These are all in line with the usage patterns and the patriotic, religious and cultural bent of the Indian society

•

Place- The difference between India and UK

• In India the vodafone accessories or cards are available through various Voda stores as well as local stores. But in the UK it is only available at the Voda stores.

Place- The difference between India and UK (contd)

• During bill payment Vodafone in India stresses on payment in Voda stores or dropping cheques in Vodafone Drop Boxes but in the UK it stresses more on online payment of bills.

Place- The difference between India and UK (contd.)

• In India Vodafone follows selective distribution whereas in the UK Vodafone follows Exclusive Distribution. In India suitable sellers stock the product while in the UK only authorized dealers are allowed to sell the product.

Advertising Campaigns

• Global Communication Campaign• Vodafone's 'big idea' campaign• Vodafone Guerrilla Marketing - Desk Car• Zoozoo• Another Example of Vodafone’s Guerrilla Marketing• Brand Ambassador• Vodafone’s contribution to Corporate Social Resposibility.

Indian sync with Global Communication Campaign

2001 2002 2004 2005 2006

•Vodafone’s promotional strategy has always been to connect people with what they are looking for.

•In Europe people love adventure.

•In Australia people love reality shows.

•In Japan people respect each others dignity and dignity of work.

•As in case of India people are looking for the innocence with in.•Thus zoo zoooo became the instant hit.

Desk car campaignIn England to promote 3G services Vodafone have used these interesting desk cars. This car traveled around London traffic to show Londoners 3G experience in a very surprising way.This is part of there innovative culture…where as in India they have introduced many new services such as chota recharge, caller tune card etc. Their innovative revolves around the customers needs and expectations.

Vodafone launched commuter campaign

• This campaign was started by Vodafone to promote the power of accessing the internet via the mobile in UK.

•Where in India it associated itself with the IPL, where people could download various videos and pictures of the matches and presentation ceremony.

• As part a part of this campaign Vodafone set itself a challenge – to set up a customer’s ‘free mail’ account, such as Yahoo Mail, Google Mail or MSN, on their phone (Vodafone devises) in less than two minutes.•And to its Indian counterpart It decided to make its network connectivity no. after taking over hutch it increased it no. of mobile towers two fold with an objective to over take Airtel.

ZOOZOO

The innocence and simplicity which exuberated through the ZooZoo was something which everyone looks for in their lives. The ZooZoo’s through their extreme expressions made the consumers relive it. If you are sad, watch ZooZoo; if you are not well, watch ZooZoo, if you feel lonely, watch ZooZoo- this was how ZooZoo crept into the minds and hearts of the consumers.

This strategy of Vodafone represent two characteristic of its culture… organizational as well as country’s…..Organizational: giving the people what they have been always looking for in the best possible way, in a way that would leave an impression on there mind.Country's: British are against the animal exploitation thus despite the PUG campaign was a super hit among the Indian consumer and helped the dog itself they dropped it after PETA raised an objection relating the animal exploitation.

Vodafone celebrate festivials with its customer

Vodafone has been announcing various offers during Diwali festival..Paint your house Free talk time up to 1lakhFor UK customers of Indian origin special rates on Diwali for calling India.On Christmas and other religious celebrations it offers similar options to its customers to show that it is passionate about its customer’s belief and ethnicityIt believes in building a brand with passion because prices and technology cannot make much difference these days but the brand always stands out.

A different aspect of Vodafone: CHARITY

World of difference

Till date Vodafone has sponsored more than 700 people to work for charity of there choice for two months.Vodafone charity foundation has presence around 23 nations and have been working very efficiently to provide to the needy people.It also helps various NGOs to promote themselves … during Delhi Half Marathon it provided them free publicity space.It has contribute a lot for Haiti disaster.This is an ongoing mission parallel to it parent organization Vodafone group.

Cultural Influence on Vodafone’s Sponsorships

• English people love sports and adventure and it can be well observed in the sponsorship policy of Vodafone.

• As a winner itself in its own line of business, Vodafone sees good sense in being associated with other winners, and being involved in aspirational activities which excite the public.

• The company believes that its sponsees act as ambassadors for the Vodafone brand, saying to the world ‘this brand is all about being dependable, empathetic, innovative, can do and full of vitality and life.’

• It has established tangible links between the products and services it offers and the organization it sponsor– Its European sponsorships

• Vodafone McLaren Mercedes• England cricket team• UAFA Champions League• David Beckham

SPONSORSHIP CAMPAGINE IN INDIA

• There has been always some deviation in its sponsorship policy when it enter into a new country. Indian sponsorship was a bit different initially. Indian audience are more attracted towards Bollywood celebrities and various household sops, It went for the TV channels rather then going for a sports event directly to make its presence felt.

• Vodafone collaborated with STAR channel, the leading television network in India, to launch a massive 24-hour nationwide rebranding campaign.

• Vodafone used all of the commercial airtime across the STAR India network from 9p.m. on 20th September, 2007 to 9p.m. on 21th September, 2007 to run TV commercials.

• Vodafone along with Coke became the Platinum sponsor for the 9XM with there name being flashed everywhere as it wanted to make a widespread awareness in the country.

Vodafone official sponsor of IPL

• Vodafone has signed deal with Indian Premier League for 5 years till 2012amounting to $25 million.

• Under this contract the vodafone customers will be able to book tickets through its Vodafone Live service.

• Customers can also participate in the ‘Predict the Man of the Match’ contest and the winner was announced as the ‘ Vodafone Winner of the Contest’ at the post-match presentation ceremony.`

Star studded field for Vodafone Delhi half marathon

• Soon after the take over of vodafone over hutch it sponsored vodafone delhi half marathon.

• Film actors and corporate majors like yana gupta,Nafisa Ali, Ajay Bijli of PVR cenimas group, HSBS, DELL, TV 18 took part.

• To built an alligience between the preference of the indian customer and it generic strategy for sponsorship it has made a perfect mix.

• It was into deals with television network as they helped it to reach to masses where as its theme was always sporty

A comparative analysis • European sponsorship policy(parent region)

– Choosing the best ambassador- David Backhem.– Sponsors the McLaren F1 team– Various other local sporting teams

• Indian sponsorship policy– Allegiance between customer taste its generic policy– Sponsoring major sporting event – IPL

• Australian policy– Sponsors AFL– Sponsor to the V8 supercar racing– Also sponsor many programs in MTV

Consumer Behavior of Vodafone in home region-U.K

The consumers in U.K go for • pay monthly plans- 12 months, 24 months with

phone as company has collaboration with companies like Blackberry.

• Pay monthly plans- only sim• Pay as you go plan• Not many vouchers and value added services

Consumer Behavior of Vodafone in India

The consumers in India go for• More of value added services• Only sim as there is no such installment system on

purchase of phones.• Easy recharge vouchers• More of prepaid connections

Conclusion

• As per the strategy of the Vodafone and its generic strategy defined by its culture the consumer behaviour of two countries can be distinguished.– As they define the business activity of the

company. – They both have some similarity as both have a

long history together.