MERGER AND ACQUISITION FROM HUTCH TO VODAFONE !!

VODAFONE”speech mark” logo in use since 1997

INTRODUCTION TO VODAFONE• TYPE : Public limited company• INDUSTRY : Telecommunication• PREDECESSOR : Hutchison Essar• HEAD OFFICE :London, UK• KEY PEOPLE : GERARD KLEISTERLER(Chairman)

VITTORIO COLAO (CEO)• PRODUCTS : Wireless broadband, internet

service, mobile telephony• OWNER : Takashi group

• REVENUE :↑ £46.147 billion (2012)• OPERATING INCOME :↑ £ 11.187 billion

(2012)• PROFIT :↓ £6.957 billion (2012)• TOTAL ASSETS : ↓£139.57 billion • TOTAL EQUITY :↓ £76.935 billion• EMPLOYEES : 86373

Where ever you go , we follow you

MERGER

In business or economics a merger is a combination of two companies into one large companySuch action are commonly voluntary and involve stock swap or cash payment to a target

ACQUSITION

An Acqusition ,also known as a takeover,is the buying of a company (“THE TARGET”) by another.An Acquisition may be frendly or hostile.

Need of merger and acquisition

• Gain market share• Economies of scale• Enter new market• Acquire technology• Utilization of surplus funds• Marginal economics• Statergic objective• Vertical integration

VODAFONEPurchased stake in

HUTCH(hutchison Telecom International)ForUSD 11.08 Billion

TIMELINE

• 1992 : Hutchison Whampoa and Max group established Hutchison Max

• 2000 :Acquisition of Delhi operation and entry into Kolkata and Gujarat market through Essar acquistion

• 2001 : Won auction for licences to operate GSM services in Karnataka , Andhara pradesh and Chennai

• 2003 : Acquire Essar Digilink which operated in Rajasthan , Uttar pradesh east and Haryana telecom circles and rebranded it ”HUTCH”

• 2005 : Acquired BPL mobile operations in 3 circles

• 2007 : VODAFONE acquires a 67% stake in HUTCHISON ESSAR for $10.7 billion . Company is renamed VODAFONE ESSAR. ‘HUTCH” is rebranded to “VODAFONE”.

• 2008 : VODAFONE launched the apple iphone 3G to be used on itz 17 circle 2G network .

• 2011 : VODAFONE group buys oyt its partner ESSAR from its indian mobile phone business. It paid $5.46 billion to take ESSAR out of its 33% stake in indian subsidiary .It left VODAFONE owning 74% of indian business.

CHALLENGEHutch, the second largest GSM brand in the Indian telecom market, had been

bought by Vodafone. A leading player in the high-growth Indian market, Hutch enjoyed considerable brand equity. It was also a well-

loved brand in terms of its unique imagery and award-winning communication. In making the transition to Vodafone, it was important to carry

forward this equity and exceed expectations.

The objectives for the exercise were to carry along 35 million customers, 400,000 trade partners and 10,000 employees through the

transition and, even more importantly, to enthuse existing stakeholders and potential customers with the possibilities offered by Vodafone.

The entire project including positioning, retail identity, campaign development and implementation was to be carried out in less than

four months. Ogilvy & Mather, Maxus and Team Vodafone worked in conjunction to develop the India positioning for Vodafone.

INSIGHT

The touch point list alone, for this project, included over 3,000 different elements. Working in conjunction with the Ogilvy One team and Fitch, the Ogilvy team developed and executed the entire list in

45 daysso that from Day One – September21, 2007 – the consumer would experience a whole new brand.

The first task was to internalise the new brand and its tone of voice. Fitch was briefed not to just redesign the store signage but to

create a whole new store experience for the Vodafone customer. At every interaction point with the consumer, the brand required

a new look in line with the new brand promise. That meant changing everything from the internal forms to the uniform of the security

guard.

SOLUTION

There was a first of-its-kind alliance with Star (India’s largest TV network) where the entire advertising was bought for Vodafone for

24 hours across all the network’s 13 channels – a 24-hour TV roadblock.

Ogilvy Action put up over 20,000 outdoor sites overnight, using over two million square feet of vinyl. An elaborate Radio campaign

had RJs announcing the transition creatively, through contests and other ideas.

A commercial, making use of the Hutch ‘pug’ – a mnemonic associated with Hutch over the years in India – was released to announce

the transition from Vodafone to Hutch, to ensure consumers know it is a name change and they can expect an even better brand

experience as well.

THE END