Vodafone Complete Project

7/30/2019 Vodafone Complete Project

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ACKNOWLEDGEMENTPreparing a project of this nature is an arduous task and I wasfortune enough to get Support from a large number of persons. I wish to my express my deep sense of Gratitude to all thosewho generously helped successful completion of this report Bysharing their invaluable time and knowledge .

It is my proud and privilege to express my deepregards to respected Mr ANAND TIWARI ( HOD) ,Department of business. Management Govt. Girls P.G.College of Excellence , Sagar , for allowing me toundertake this project

I feel extremely exhilarated to havecompleted this project under the able and inspiringguidance of Miss DIPTI PATEL , Mrs. SHIKHA URMIL KHAN &Mr. SHAILENDRA PATEL. They render me all possible helpand guidance while reviewing the manuscript in finalizing

the report .

I also extend my deep regard to my teachers,family members , friends and all those whoseencouragement has infused courage in me to complete thework successfully.


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DECLARATION BY CANDIDATE

Date:

I declare that the project report tittleADVERTISING STRATEGY OF VODAFONE is my own work

conducted under the supervision of Mr.SHAILENDRA PATEL

(Guest-Lecturer), Department of Business Management ,

Govt. Girls P.G Collage Of Excellence , Sagar . To the best of

my knowledge the report does not contain any work , which

has been submitted for the award of any degree, anywhere.

Sheetal

patel

BBA 4th sem

2nd year


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CERTIFICATE

The project report titled ADVERTISING STRATEGY OF

VODAFONE has been prepared by Sheetal patel , BBA 4th

sem under the guidance and supervision of Mr.SHAILENDRA

PATEL for the partial fulfillment of the degree of BBA.

Signature of the Signature of the Signature ofthe head Supervision Examinerof the Department


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ABSTRACTIn the year 2007, the world's largest telecom company in

terms of revenue, Vodafone Plc (Vodafone) made a major

foray into the Indian telecom market by acquiring a 67

percent stake in the Indian telecom company, Hutchison

Essar Ltd, through a deal with the Hong Kong-based

Hutchison Telecommunication International Ltd. It was the

biggest deal in the Indian telecom market. Vodafone's main

motive of going in for the deal was its strategy of expanding

into emerging and high growth markets like India. In 2007,

India had emerged as the fastest growing telecom market in

the world outpacing China. But it still had low penetration

rates, making it the most lucrative market for global

telecom companies.

Though Hutchison Essar was one of the established players

in this market, Hutchinson Telecommunication International

Ltd. had exited India as the urban markets in the country

had become saturated.


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This brand management project aims to track Vodafone

success in the Indian market right through its launch on 21st

September 2007.

The report is divided into three parts: Introduction, Analysis

and Conclusion. The introduction section mainly gives an

overview of the Indian Telecom industry, and about the

company - Vodafone. The Analysis section deals with

competitors of Vodafone, and also giving an outline of the

competitive growth of the telecom companies. It also

discusses the various re-branding strategies adopted by

Vodafone in order to successfully penetrate into the Indian

market. A detailed

analysis of the telecom brand Vodafone is done for the

purpose of the study.


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WHAT IS TELECOMUNICATIONTelecommunication is the transmissions of signals over a

distance for the purpose of communication. In modern times

this process almost always involves the sending of electro

magnetic waves by electronic transmitters but in earlier

years it may have involved the use of smoke signals drums

or semaphore lines.

HISTORY OF TELECOMMUNICATION:The history of telecommunication began with the use of

smoke signals & drums in Africa the America & parts of Asia.

Smoke signals

In the 1790s the first fixed semaphore systems emerged in

Europe however it was not until the 1830s that electrical

telecommunication systems started to appear. This article


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details the history of telecommunication & the individuals

who helped make telecommunication systems what they are

today.

Early telecommunication included smoke signals & drums.

Drums were used in natives like Africa, New Guinea & South

America & smoke signals in North America & China.

In 1792 a French engineer Claude Chappe built the first

visual telegraphy for semaphore system between Chile &Paris. This was followed by a line from Strasburg to Paris.

SOME OF THE MOST POPULAR TELECOMCOMPANIES IN INDIA:

A.P TELECOM

A.P.-telecom officer's service telephone numbers can be

viewed by clicking the concerned telecom district. A.P.

telecom circle is serving the whole state of Andhra Pradesh

including the twin cities of Hyderabad and Secundrabad.

ASC ENTERPRISES LIMITED (ASCEL)

Ascel is a multi venture corporate heralding the

"convergence" era in our country, focusing on nationwide
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retailing of time (telecom, information & learning, media,

entertainment) products & services, satellite and digital

wireless communication ventures for provision of

infrastructure, services and solutions among other

initiatives.

AIRCEL

Popular provider in Tamil Nadu

BANGALORE TELECOM

Bangalore telecom system is a communications window to

the rest of the world. Offer a wide range of telecom services

from basic telephone service to high speed data circuits.

BHARTI ENTERPRISES

Established in 1985, Bharti has been a pioneering force in

the telecom sector with many firsts and innovations to its

credit, ranging from being the first mobile service in Delhi,

first private basic telephone service provider in the country,

first Indian company to provide comprehensive telecom

services outside India.

COMMSOUTH
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Commsouth was founded in Chennai, in the mid nineties;

Commsouth has grown steadily and established sound

positions in the mobile telephony and telecom management

software market.

CELLEBRUM

Cellebrum is a company of M Corp global group with

interests in the field of telecom solutions, office automationand information technology and value added services. Asias

leading value-added mobile services and solutions provider

on platforms like sms / ivrs / wap / gprs / ussd etc.

CRICKET COMMUNICATIONS

Cricket is the operating subsidiary of leap wireless

international, a customer-focused company providing

innovative mobile wireless services targeted to meet the

needs of customers who are under-served by traditional

communications companies.

ESSAR GROUP

The Essar group is one of Indias largest corporate houses

with interests spanning the manufacturing and service
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sectors in both old and new economies: steel, power,

shipping, constructions, oil & gas and telecom.

IDEA CELLULAR

India's leading GSM mobile services operator, idea cellular

has licenses to operate in 11 circles. With a customer base

of over 17 million, idea cellular has operations in Delhi,

Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya

Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-west,Himachal Pradesh and Kerala. Idea acquired spice telecom

which was operating in Karnataka and Punjab. Idea cellular

footprint currently covers approximately 45% of Indias

population and over 50% of the potential telecom-market.

As a leader in value added services, innovation is central to

idea's vas factory. It is the first cellular company to launch

music messaging with 'cellular jockey', 'background tones',

'group talk', a voice portal with 'say idea' and a complete

suite of mobile email services.
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INTRODUCTIONVodafone, the British mobile company that entered India

after buying Hutchs share and by creating Vodafone Essar

in July 2007, has embarked on a major rebranding exercise

in the country.

The history of Indian mobile industry is not very old, not to

mention the industry as a whole in itself is very new to the

whole world. Telephones have been serving mankind for

quite a long now and can boast of the world largest

redundant legacy system. Thousands of miles of

underground cables run through oceans to connect all the

continents. Telecommunication industry as a whole has not

seen a major


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revolution for a long time with the exception of a few new

innovations in the type of services and call rated. The

advent of wireless communication has brought about a slew

of path breaking technological advancements in the way

people use and see telephones. From being an equipment

kept on the side table for talking, it has walked to occupy

every persons pocket for all his information needs.

Furthermore, the revolution has not ceased and it promises

to bring even more of comfort and connectivity while on the

move.

Recognizing the crucial role that can be played by the

telecommunication sector in Indias development, the

Government of India in 1999 initiated a number of changes

in the telecommunication and regulatory and policy

framework. Through these the Government hoped to

facilitate an increase in telecommunication penetration,

which stood at 1.3% in 1995. The reforms, with an eye on a

telecommunication penetration of 15% by 2010, resulted in

a flurry of private operators entering the market breaking

the monopoly of the incumbent operator Bharat Sanchar

Nigam Limited (BSNL).

Indias 1.1 billion population currently boasts a mobile

telephone penetration rate of just 13 per cent. But it is

growing by more than six million subscribers every month,


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making it the fastest growing market

in the world and the focus of the industry.

At the start of the decade, India was pretty much a telecom

backwater. But now, Indias tele-density has grown by about

100 per cent to 17.16 per cent over the past two years. Last

year it actually grew at a faster rate than China for the first

time in new mobile phone connections.

Even as the mobile telephony market in India is booming,

the number of fixed line telephone subscribers dropped,

suggesting that first-time users of telephones are opting formobile phones. The number of fixed line subscribers was

down to 40.43 million in December as compared to 48.43

million a year ago.

Mobile penetration in India is growing rapidly and it is

becoming increasingly rare to see anyone without a 'hand-

phone' as they are known, whereas growth of internet

access at home is much slower. Rather than listing a web

address, many billboard ads offer an SMS short-code which

people can text to get more information. There are expected

to be somewhere around 200 million subscribers by the end

of the year, with around six million customers being added

every month, so the Indian market is certainly a growth one,

with increased mobile internet access expected to push up

average revenues per user.


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Although the average Indian mobile user remains cost-

conscious because of low-income living and huge size of

mobile subscriber in India uses only SMS or voice services;

new and more multifunctional handset with features like

cameras, FM radio and mobile video. Also, India is the

largest untapped market where the 20% of the total world's

population lives. The Indian telecom industry recently

witnessed its biggest deal - Vodafone bidding for 67% stake

in Hutch-Essar.

The telecom market is at a stake with $22 billion which is

expected to double by 2010. The dramatis personae include

leading names of India IncSunil Bharti Mittal, Anil Ambani,

Kumar Mangalam Birla, Ratan Tata and A K Sinha (of BSNL)

not to mention the 51-year-old Arun Sarin of Vodafone,

whom the Hutch puppy will follow dutifully henceforth. But

for a nation of 1.3 billion people, Indias tele-density of 17%

is dreadful. And therein lies both the opportunity and the

challenge.

About Vodafone


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Vodafone is the world's leading international mobile

communications company. It presently has operations in 25

countries across 5 continents and 40 partner networks with

over 200 million customers worldwide. Vodafone has

partnered with the Essar Group as its principal joint venture

partner for the Indian market.

The Essar Group is a diversified business corporation with

interests spanning the manufacturing and service sectors

like Steel, Energy, Power, Communications, Shipping &Logistics and Construction. The Group has an asset base of

over Rs.400 billion and employs over 20,000 people.

Launch of Vodafone Essar

Vodafone Essar was launched in India on 21st September

2007. Vodafone was welcomed in India with the Hutch is


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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 ever-growing brand. This brand unveiled

nationally through a high profile campaign covering all

important media.

Vodafone, the worlds leading mobile telecommunication

company, completed the acquisition of Hutchison Essar in

May 2007 and the company was formally renamed Vodafone

Essar in July 2007. The transition from Hutch to Vodafone isprobably the largest brand change ever undertaken in this

country and arguably as big as any in the world. It is even

larger than Hutchs own previous brand transitions. The

migration from Hutch to Vodafone was one of the fastest

and most comprehensive brand transitions in the history of

the Vodafone Group, with 400,000 multi brand outlets, over

350 Vodafone stores, over 1,000 mini stores, over 35 mobile

stores and over 3,000 touch-points rebranded in two

months, with 60% completed within 48 hours of the launch.

The Vodafone mission is to be the communications leader in

an increasingly connected world enriching customers lives,

helping individuals, businesses and communities be moreconnected by

delivering their total communication needs.

HISTORY


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Original Corporate Logo of Vodafone.

Vodafone itself was formed in 1982 as a joint venture

between Racal Electronics plc's subsidiary Racal Strategic

Radio Ltd (who won one of two UK cellular telephone

network licences) along with Millicom and the Hambros

Technology Trust. In this arrangement Racal owned 80%,

Millicom 15% and Hambros 5%. The network was known as

Racal Vodafone, with the Vodafone name being derived

from the firm's goal of establishing a voice and data

services over cellular telecommunication networks. Hence

VO represented voice and DA symbolized data yielding

the name Vodafone.

Vodafone was launched on 1 January 1985 and later that

year Racal Strategic Radio was renamed Racal

Telecommunications Group Limited in 1985. A year later, on

29 December 1986 Racal Electronics bought out the

minority shareholders of Vodafone for GB110 million. In

September 1988 the company was again renamed Racal

Telecom and on 26 October 1988 Racal Electronics floated

20% of the company a flotation that valued RacalTelecom at GB1.7 billion. On 16 September 1991 Racal

Telecom was demerged from Racal Electronics as Vodafone

Group and the mobile telephony giant was born.


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During the mix 1990s Vodafone began to consolidate itself

on the British high-street. In July 1996 Vodafone acquired

the two thirds of Talkland it did not already own for 30.6

million. On 19 November 1996, in a defensive move,

Vodafone purchased Peoples Phone for 77 million, a 181

store chain whose customers were overwhelmingly using

Vodafone's network. In a similar move the company

acquired the 80% of Astec Communications that it did not

own, a service provider with 21 stores. This made Vodafone

a very visible presence on the British high street andsignificantly increased the company's share of UK mobile

customers.

New Corporate Logo of Vodafone as of 1997.

In 1997 Vodafone introduced its new corporate Speechmark

logo. This represents a quotation mark within a circle. With

the 'O's in the Vodafone logotype being opening and closing

quotation marks, suggesting conversation.


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VODAFONE The Brand!Brand Name : - VODAFONE Ltd.

Brand Person : - ARUN SARIN

Brand Delivery : - World class Cellular Telephony

with value Added Services

Brand Presence : - In the state of Gujarat,

Madhya, Bihar,

Pradesh, Maharashtra, Goa, M.P.,

U.P.,

Andhra Pradesh, Chhatisgarh,

Delhi, etc.

Brand Colour Significances : -

* The White background : - Youth & Energy

* Red Colour : - Energy

* Red Colour Text : - Solidarity

* The VODAFONE : - Innovation

Brand Launch : - 22th August, 2007

A media spent of Rs. 40-42 crores in T.V

advertisements, Print ads, Murals, brand launch


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parties, P.R.Campaigns, in all a high decibel and

Discussed launch.


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Overview

Name of the company : Vodafone ltd.

Size of the unit : Large Scale Unit

Form of organization : Multinational co.

Web site : www.vodafone.in

Year of establishment : 1984 in England

Stage of product : Maturity

Name of the service : Post paid cards

Prepaid cards

Short Message Service

Voice mail services

Vodafone power service

Through continuous innovation, VODAFONEpromises to liberate, stimulate customers from the

shackles of time and spaces

SWOT ANALYSIS OF VODAFONE


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Strengths:The main strength of Vodafone within the

telecommunications market lies in its brand image and

recognition. Vodafone, having established a global presence

and having invested highly in marketing a differentiated

image by promoting a Vodafone life style, currently enjoys a

differentiating advantage that, if exploited properly, can

offer a lead in competition. The presence of Vodafone in

numerous countries within Europe as well as in all part of

the world enhances this image. It allows customers to travel

and enjoy easily the services of their home country

operator. In the few countries that Vodafone is not

physically present (e.g. Norway) it has well established

strategic alliances which allow for a better service of mobile

clients.

Weaknesses:The expansion of Vodafone has been completed at the

expense of direct control of its operations. The company

grew through a process of acquisitions of national

telecommunications companies (e.g. the acquisition of the

third biggest Czech mobile phone operator, Cesky mobile)

rather than organic growth. This increased its subscribers

base quickly, offering direct market knowledge and

immediate additions of customer bases at the expense of


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direct effective control of the subsidiaries. At the same time

though, it implicitly imposed a centralized operational

structure for the group, nominating the UK headquarters as

the leading business unit running a much centralised

marketing and handset procurement at group level. This has

resulted in the neglect of local markets and local

differences, allowing market share to be gained by smaller

local competitors. Due to the highly saturated Western

European market this has resulted in an increase in the

price elasticity of demand, with consumers becomingcontinuously price oriented. This has resulted in high

customer churn rates reaching the level of 32.8% in the UK

compared to O2s 24%.

Opportunities:The telecommunications market, even though highly

saturated in some regions offers great potential due to the

ageing population and the sophistication of the consumers.

It offers great opportunities through a careful market

segmentation and exploitation of particular profitable

segments. Different strategies should be pursued simple

phones and simplified pricing plans to the ageing population

and more updated, sophisticated solutions for younger

generations. The expanding Boundaries of the market could

provide further opportunities by allowing Vodafone to enter

more aggressively into fixedline service and to better enjoy


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the benefits of its high investment in 3G technology.

Moreover the company has undertaken its first steps in

establishing strategic alliances to develop customized

solutions for endusers: Vodafone recently announced two

new partnerships, one with supermarket group ASDA to

launch an ASDA branded mobile service in the UK, and

another with electrical retailer DSG International to provide

mobile solutions to small businesses. This could further be

enhanced to avoid being a lateentrant in this new method

of distribution which offers access to a wide potentialcustomer base.

Threats:The European part of Vodafones market is

characterized by existing high levels of competition. Major

brands such as O2 and TMobile are exploiting the price

sensitivity of customers and in this way they are building astronger image and presence in the market. Indirect

competition is also increasing further, through the presence

of Skype and other related (not only voice) Internetbased

services. This combined with the upcoming European

legislative measures is expected to limit further the tariffs

for the network providers imposing further need for price

cuts which could harm the bottom line profitability of the

company.


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Advertising StrategyAn advertising strategy is a campaign developed to

communicate ideas about products and services to potentialconsumers in the hopes of convincing them to buy those

products and services. This strategy, when built in a rational

and intelligent manner, will reflect other business

considerations (overall budget, brand recognition efforts)

and objectives (public image enhancement, market share

growth) as well. As Portable MBA in Marketing authors

Alexander Hiam and Charles D. Schewe stated, a business's

advertising strategy "determines the character of the

company's public face." Even though a small business has

limited capital and is unable to devote as much money to

advertising as a large corporation, it can still develop a

highly effective advertising campaign. The key is creative

and flexible planning, based on an indepth knowledge of the

target consumer and the avenues that can be utilized to

reach that consumer.


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Today, most advertising strategies focus on achieving three

general goals, as the Small Business Administration

indicated in Advertising Your Business: 1) promote

awareness of a business and its product or services; 2)

stimulate sales directly and "attract competitors'

customers"; and 3) establish or modify a business' image. In

other words, advertising seeks to inform, persuade, and

remind the consumer. With these aims in mind, most

businesses follow a general process which ties advertising

into the other promotional efforts and overall marketingobjectives of the business.

STAGES OF ADVERTISING STRATEGYAs a business begins, one of the major goals of advertising

must be to generate awareness of the business and its

products. Once the business' reputation is established and

its products are positioned within the market, the amount of

resources used for advertising will decrease as the

consumer develops a kind of loyalty to the product. Ideally,

this established and ever-growing consumer base will

eventually aid the company in its efforts to carry their

advertising message out into the market, both through its

purchasing actions and its testimonials on behalf of the

product or service.

Essential to this rather abstract process is the development

of a "positioning statement," as defined by Gerald E. Hills in


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"Marketing Option and Marketing" in The Portable MBA in

Entrepreneurship: "A 'positioning statement' explains how a

company's product (or service) is differentiated from those

of key competitors." With this statement, the business

owner turns intellectual objectives into concrete plans. In

addition, this statement acts as the foundation for the

development of a selling proposal, which is composed of the

elements that will make up the advertising message's "copy

platform." This platform delineates the images, copy, and

art work that the business owner believes will sell theproduct.

With these concrete objectives, the following elements of

the advertising strategy need to be considered: target

audience, product concept, communication media, and

advertising message. These elements are at the core of an

advertising strategy, and are often referred to as the"creative mix." Again, what most advertisers stress from the

beginning is clear planning and flexibility. And key to these

aims is creativity, and the ability to adapt to new market

trends. A rigid advertising strategy often leads to a loss of

market share. Therefore, the core elements of the

advertising strategy need to mix in a way that allows the

message to envelope the target consumer, providing ample

opportunity for this consumer to become acquainted with

the advertising message.


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TARGET CONSUMER The target consumer is a complex

combination of persons. It includes the person who

ultimately buys the product, as well as those who decide

what product will be bought (but don't physically buy it),

and those who influence product purchases, such as

children, spouse, and friends. In order to identify the target

consumer, and the forces acting upon any purchasing

decision, it is important to define three general criteria in

relation to that consumer, as discussed by the Small

Business Administration:

Demographicsge, gender, job, income, ethnicity, and

hobbies.

Behaviorshen considering the consumers' behavior an

advertiser needs to examine the consumers'

awareness of the business and its competition, the

type of vendors and services the consumer currently

uses, and the types of appeals that are likely to

convince the consumer to give the advertiser's product

or service a chance.

Needs and Desiresere an advertiser must determine

the consumer needsoth in practical terms and in terms

of self-image, etc.nd the kind of pitch/message that will

convince the consumer that the advertiser's services or

products can fulfill those needs.


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PRODUCT CONCEPT The product concept grows out of the

guidelines established in the "positioning statement." How

the product is positioned within the market will dictate the

kind of values the product represents, and thus how the

target consumer will receive that product. Therefore, it is

important to remember that no product is just itself, but, as

Courtland L. Bovee and William F. Arens stated in

Contemporary Advertising, a "bundle of values" that the

consumer needs to be able to identify with. Whether

couched in presentations that emphasize sex, humor,romance, science, masculinity, or femininity, the consumer

must be able to believe in the product's representation.

COMMUNICATION MEDIA The communication media is the

means by which the advertising message is transmitted to

the consumer. In addition to marketing objectives and

budgetary restraints, the characteristics of the targetconsumer need to be considered as an advertiser decides

what media to use. The types of media categories from

which advertisers can choose include the following:

Printrimarily newspapers (both weekly and daily) and

magazines.

AudioM and AM radio.

Videoromotional videos, infomercials.

World Wide Web.


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Direct mail.

Outdoor advertisingillboards, advertisements on public

transportation (cabs, buses).

After deciding on the medium that is 1) financially in reach,

and 2) most likely to reach the target audience, an

advertiser needs to schedule the broadcasting of that

advertising. The media schedule, as defined by Hills, is "the

combination of specific times (for example, by day, week,

month) when advertisements are inserted into media

vehicles and delivered to target audiences."

ADVERTISING MESSAGE An advertising message is guided

by the "advertising or copy platform," which is a

combination of the marketing objectives, copy, art, and

production values. This combination is best realized after

the target consumer has been analyzed, the product

concept has been established, and the media and vehicles

have been chosen. At this point, the advertising message

can be directed at a very concrete audience to achieve very

specific goals. Hiam and Schewe listed three major areas

that an advertiser should consider when endeavoring to

develop an effective "advertising platform":

What are the product's unique features?

How do consumers evaluate the product? What is likely

to persuade them to purchase the product?


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How do competitors rank in the eyes of the consumer?

Are there any weaknesses in their positions? What are

their strengths?

Most business consultants recommend employing an

advertising agency to create the art work and write the

copy. However, many small businesses don't have the up-

front capital to hire such an agency, and therefore need to

create their own advertising pieces. When doing this a

business owner needs to follow a few important guidelines.

COPY When composing advertising copy it is crucial to

remember that the primary aim is to communicate

information about the business and its products and

services. The "selling proposal" can act as a blueprint here,

ensuring that the advertising fits the overall marketing

objectives. Many companies utilize a theme or a slogan as

the centerpiece of such efforts, emphasizing major

attributes of the business's products or services in the

process. But as Hiam and Schewe caution, while "something

must be used to animate the theme are must be taken not

to lose the underlying message in the pursuit of memorable

advertising."

When writing the copy, direct language (saying exactly what

you mean in a positive, rather than negative manner) has

been shown to be the most effective. The theory here is that

the less the audience has to interpret, or unravel the

message, the easier the message will be to read,


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understand, and act upon. As Jerry Fisher observed in

Entrepreneur, "Two-syllable phrases like 'free book,' 'fast

help,' and 'lose weight' are the kind of advertising messages

that don't need to be read to be effective. By that I mean

they are so easy for the brain to interpret as a whole

thought that they're 'read' in an eye blink rather than as

linear verbiage. So for an advertiser trying to get attention

in a world awash in advertising images, it makes sense to

try this message-in-an-eye-blink route to the public

consciousnesse it for a sales slogan or even a productname."

The copy content needs to be clearly written, following

conventional grammatical guidelines. Of course, effective

headings allow the reader to get a sense of the

advertisement's central theme without having to read much

of the copy. An advertisement that has "50% Off" in boldblack letters is not just easy to read, but it is also easy to

understand.

ART WORK AND LAYOUT Small business owners also need to

consider the visual rhetoric of the advertisement, which

simply means that the entire advertisement, including blank

space, should have meaning and logic. Most industryexperts recommend that advertisers use short paragraphs,

lists, and catchy illustrations and graphics to break up and

supplement the text and make the document both visually


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inviting and easy to understand. Remember, an

advertisement has to capture the reader's attention quickly.

ADVERTISING BUDGET The advertising budget can be

written before or after a business owner has developed the

advertising strategy. When to make a budget decision

depends on the importance of advertising and the resources

available to the business. If, for instance, a business knows

that they only have a certain amount of money for

advertising then the budget will tend to dictate what

advertising is developed and what the overall marketing

objectives will be. On the other hand, if a business has the

resources available, the advertising strategy can be

developed to meet predetermined marketing objectives. For

small businesses, it is usually best to put together an

advertising budget early in the advertising process.

The following approaches are the most common methods of

developing an effective budget. All the methods listed are

progressive ones that look to perpetuate growth:

Percentage of future or past sales

Competitive approach

Market share

All available funds

The task or objective approach


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The easiest approachnd thus the one that is most often

useds the percentage of future or past sales method. Most

industry experts recommend basing spending on anticipated

sales, in order to ensure growth. But for a small business,

where survival may be a bigger concern than growth, basing

the advertising budget on past sales is often a more

sensible approach to take.

METHODS OF ADVERTISINGSmall business owners can choose from two opposite

philosophies when preparing their advertising strategy. The

first of these, sometimes called the push method, is a

stance wherein an advertiser targets retail establishments in

order to establish or broaden a market presence. The

second option, sometimes called the pull method, targetsend-users (consumers), who are expected to ask retailers

for the product and thus help "pull" it through the channel of

distribution. Of course, many businesses employ some

hybrid of the two when putting together their advertising

strategy.

PUSH METHOD The aim of the push method is to convinceretailers, salespersons, or dealers to carry and promote the

advertiser's product. This relationship is achieved by

offering inducements, such as providing advertising kits to


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help the retailer sell the product, offering incentives to carry

stock, and developing trade promotions.

PULL METHOD The aim of the pull method is to convince the

target consumer to try, purchase, and ultimately repurchase

the product. This process is achieved by directly appealing

to the target consumer with coupons, in-store displays, and

sweepstakes.

ANALYZING ADVERTISING RESULTS

Many small businesses are distressingly lax in taking steps

to monitor whether their advertising efforts are having the

desired effect. Instead, they simply throw a campaign out

there and hope for the best, relying on a general sense of

company health when determining whether to continue,

terminate, or make adjustments to advertising campaigns.

These small business owners do not seem to recognize that

myriad factors can influence a business's fortunes (regional

economic straits, arrival of new competition, seasonal

buying fluctuations, etc.). The small business owner who

does not bother to adequately analyze his or her advertising

efforts runs the danger of throwing away a perfectly good

advertising strategy (or retaining a dreadful one) if he or she

is unable to determine whether business upturns or

downturns are due to advertising or some other factor.

The only way to know with any accuracy how your

advertising strategy is working is to ask the consumer, the


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opinions of whom can be gathered in several ways. Although

many of the tracking alternatives are quite specialized,

requiring either a large budget or extensive advertising

research expertise, even small businesses can take steps to

measure the effectiveness of their advertising strategies.

The direct response survey is one of the most accurate

means of measuring the effectiveness of a company's

advertising for the simple reason that it measures actual

responses to a business's advertisements. Other

inexpensive options, such as use of redeemable coupons,can also prove helpful in determining the effectiveness of an

advertising campaign.

ADVERTISING AGENCIESThe decision whether or not to use an advertising agency

depends both on a company's advertising strategy and its

financial resources. An agency has professionals who can

organize, create, and place advertising so that it will meet

established objectives better than most small businessescan do on their own, but of course the expense associated

with soliciting such talent is often prohibitive for smaller

companies. Still, some small- and mid-sized businesses have


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found that agencies can be helpful in shaping and

monitoring advertising strategies.

Because of their resources and expertise, agencies are

useful when a business is planning a broad advertising

campaign that will require a large amount of resources. An

advertising agency can also help track and analyze the

effectiveness of the advertising. Some criteria to consider

when choosing an agency include size of the agency, size of

their clients (small companies should avoid allying

themselves with agencies with a large stable of big

corporate clients so that they are not treated as

afterthoughts), length of time that the principals have been

with the agency, the agency's general advertising

philosophy, and the primary nature of the agency's accounts

(are they familiar with your industry and the challenges

involved in differentiating your company's products orservices from others in that industry?).

Vodafones Marketing Strategies: Hutchto Vodafone

Vodafones new advertising campaign in India carried on

with the same popular pug that has become a brand


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ambassador for Hutch. Where ever you go, our network

follows, was the previous slogan with the pug following the

child wherever he goes. Now, with Hutchison Essar

becoming part of the Vodafone Group, the new campaign

had started with Vodafone Essar earmarking Rs. 2.5 billion

on the transition from Hutch to Vodafone. The main

message of the brand transition exercise: The new Vodafone

is the same old Hutch. In the advertisement, the pug sees a

new home when it returns after an outing and feels the

change is better. The new catch phrase will be Make themost of now.

Vodafone had tied up with Star India to run a complete

roadblock of its fresh campaign on the entire network by

unveiling the 24-hour nationwide rebranding campaign.

Vodafone used all of the commercial airtime across all 13

channels in five languages (Hindi, Tamil, Bengali, Marathi

and English) from 9 pm on 20 September to 9 pm on

September 21. This exercise included TV commercials,

transition bumpers and contest spots to promote the

Vodafone Essar brand. Commercial spots had also been

purchased on Sony.

Conventionally awareness for a new brand takes some time

to build. However, Vodafone wanted to achieve this task at

the shortest possible time. Hence, Maxus and Star Network

worked closely to address this challenge and came up with

the idea wherein during the day of the launch a complete


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roadblock on the Star Network channels was conceptualized.

Considering that the Star Network is the lead network in

India, this was the most apt platform for Vodafone launch.

This strategy helped not only in achieving build rapid brand

awareness but also breaks the clutter during such an

important launch in the most happening category telecom.

This is a first of its kind mega media initiative in India by any

brand. While the campaign was heavy on television, it also

included all other media vehicles. The print campaign kicked

off on 21 September, a day after the television splash.While the brand campaign had been addressing the

transformation, the Company, on the other hand was swiftly

preparing for a price war in the Indian telecom space.

Indeed, it was preparing to provide mobile handsets to new

subscribers at ultra-cheap prices, ranging from about $19 to

$25.

Vodafone Essar launched low priced cell phones in India

under the Vodafone brand, and also co-branded handsets

sourced from major global vendors. By bringing in millions

of low-cost handsets from across the globe into India,

Vodafone Essar distributed bundled handsets through its

existing 400,000 distribution outlets. By flooding the market

with its low-cost handsets, Vodafone also became a mass

mobile phone brand like Nokia, Samsung, Motorola, and

Sony Ericsson in addition to continuing as telecom services

provider.


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Previously, similar handset-driven expansion strategies to

grow subscriber bases were adopted by CDMA players, like

RCOM and Tata Teleservices. Vodafone is the first GSM

operator to follow suit.

The Vodafone mission is to be the communications leader in

an increasingly connected world enriching customers

lives, helping individuals, businesses and communities be

more connected by delivering their total communication

needs. Vodafones logo is a representation of that belief

The start of a new conversation, a trigger, a catalyst, a markof true pioneering.


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Vodafones Advertising Strategies:Hutch to Vodafone

Advertising is probably one of the most frequently used

vehicles for Rebranding, as it is fairly easy, flexible and

quick to change. It is a powerful way of reaching a broad or

targeted audience quickly and is effective at signalling a

change in positioning, however real or broad that may be.

There are many examples of where advertising has either

repositioned or strengthened brands, other good examples

of where advertising has built a new position for a brand or

built a strong emotional link with the public are where

companies have created a sort of soap opera out of their

advertising.

The Advertising agency of Hutch and now Vodafone, Ogilvy

& Mather (O&M), had a two-fold task to achieve: announcethe entry of Vodafone into India and highlight the

metamorphosis of Hutch into Vodafone. O&M realised that

they had a fantastic property in the Hutch pug, which they

had been using for about five years. Therefore, to show the

transition from Hutch to Vodafone, O&M launched a rather

direct, thematic ad showing the trademark pug in a garden,

moving out of a pink coloured kennel which symbolised

Hutch making his way into a red one that is the Vodafone

colour. A more energetic, chirpier version of the You and I

tune associated with Hutch was played towards the end,


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and it concludes with Change is good. Hutch is now

Vodafone.

O&M has also rolled out four Commercials featuring Hutchs

animated boy and girl, introducing the new brands logo to

consumers. The four creatives which were of five seconds

each included the duo peeping over a wall to see the logo;

parasailing with the logo flying high behind them; releasing

a rocket bomb wherein the explosion reveals the logo; and

lastly, drawing curtains aside to show the logo.

Four other ads with the pug did the rounds of telly screens.These five and 10 second spots cast the dog in situations

where he, literally, saw red, using the colour as a visual

mnemonic to remember the brand by. The pug was shown

in a red basket, popping up from a red cart, drying himself

on a red mat, and hiding in a red blanket. Each of these

made use of the Hutch is now Vodafone tagline.

The print ads, in all major languages in several leading

dailies, were kept unbelievably simple: a still shot of the pug

inside a red kennel. The same creative was used in outdoor

hoardings as well, in all the 16 circles in which Vodafone

now operates.

It wasnt easy integrating Vodafone with Hutch; the latter,

as is known, is a subtle, understated brand, while globally,

Vodafone represents high energy, dynamism and young

vitality all represented by its bright red speech mark logo.


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And so they put in elements such as a more energetic tune

and feel to the ads.

A few advertisements include:

Hutch is now Vodafone: If you watch any of the star

channels or tuned into 20-20 world cup, you would have

seen this ad. On 11 February 2007, Vodafone agreed to

acquire the controlling interest of 67% held by Cheung Kong

Holdings in Hutch-Essar for US$11.1 billion and now had to

rebrand itself so it has decided to run a new ad series which

piggy banked on Hutchs dog mascot and the theme

Change is Good. This required nearly 250 crores of

spending by Vodafone but they have successfully painted

the town red. An interesting part of this campaign was on

the opening day roadblock where they made a deal with

Star India so that besides them no other commercials were

aired (apart from in-channel promos) on the Star Indiaschannels for 24 hours.

Vodafone Valentine Day Special Ads: Vodafone had

released a simple and sweet ad for musical greetings

targeted at couples during the valentine week the feature of

this campaign is its simplicity and believability and is quite

well received. It uses the positioning Make the most ofnow enjoy the video

Vodafone Chota Credit Ink Ad: This new ad had come as

refreshing change and more so that this ad takes a very


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refreshing look at school and at fountain pens. This ad

creates a wonderfully subtle message which really puts the

point of chota (small) credit across.

RESEARCH METHODOLOGYWHAT IS RESEARCH METHODOLOGY?

It is the science that tells the method of doing research .It

mainly consists of following steps;

Developing research design

Determining the data collection method

Developing sampling plan

Conducting field work

Research in common parlance refers to a search forknowledge. One can also define research as a scientific

and systematic search for pertinent information on aspecific topic.

The word research has been derived from French wordResearcher means to search.


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DEFINITION OF RESEARCH METHODOLOGY:

Research may be defined as "a careful investigation orenquiry specially through search for new facts in any branch

of knowledge "in a technical sense research comprisedefining &redefining problems, formulating hypothesis orsuggested solutions; collecting ,organizing &evaluatingdata; making deductions & reaching conclusion & at lastcarefully testing the conclusion to determine weather theyfit the formulating hypothesis.

RESEARCH DESIGN:

Research Design is the conceptual structure withinwhich research is conducted. It constitutes theblueprint for collection, measurement and analysis ofdata. The design used for carrying out this research isDescriptive.RESEARCH DESIGN USED IN THE SURVEY:

Considering the objectives of the study and also theimportance of the decision it was decided to undertake anexploratory survey.

DATA COLLECTION:

Types of data:

1. Primary data- primary data are those which are freshand collected for the first time and thus happen to beoriginal characters.

2. Secondary data - It is the data that is already beencollected by someone else.

In this survey I used both primary and secondary data. Allinformation collected through questionnaire.


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DATA SOURCE:

The sources of collection of secondary data are: Questionnaire

Books

Websites

Magazine

Brochure

SUGGESTIONS

1. SMS bones card rates should be minimized.

2. The company should go for increasing the users of

GPRS.

3. The company should make attention on the users

between age of 18-27 who are students.

4. The company should make efforts for increasing

the new connection users, who earns more than

20000.


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5. The company should improve the service of

55655 and minimized its tariff.

6. The company should make attention on Caller

tunes and SMS users.

7. The company should concentrate on the

customers who are students because there are

very few customers below 18 years and shouldmaintain the customers above 40 years because

they cover a large area of consumption.

RECOMMENDATIONS

1. Sales promotion technique should be used tosurvive in the market and to increase the sales of

new customers.

2. Advertising media should be meaningful and able

to persuade the customers.

3. Vodafone should make attention on the young

age generation and on those customers who

expend a large amount on calls and earners more

than 20000.


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4. Vodafone should provide the facility which the

customers want after buying the new connections.

5. The company should make their calls easy so that

the customers can gain knowledge of the services

like 55655.

6. The company should concentrate for satisfying

their customers. Vodafone should provide thecharming schemes for maintaining their old

costumers and for attracting new age generation.

7. Advertisement media should be like that the

costumers can receive the knowledge and

information about Vodafone so that they can trust

on it. LIMITATIONS

1. The responses collected are perception based so

the nature variant can be biasing factor.

2. The result of the study may not be universally

applicable due to regional constraint.

3. I was not able to cover the whole Rohtak city.


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4. The time for research was limited.

5. The sample size was small.

6. Language constraints were encountered the

project sometimes when the questions had to

transmitted to Hindi for response

BIBLIOGRAPHY1. ADVERTISING MANAGEMENT:

- By Philip Kotler

2. Web site:

- www.vodafone.in- www.vodafone.com


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Vodafone Complete Project

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