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Brand Analysis andEvaluation PRESENTED BY:HITAISHI GUPTA

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India's teledensity has improved from under 4% in March 2001 to around 71% bythe end of March 2011.The mobile subscriber base (GSM and CDMA combined) has grown from under 2 mat the end of FY00 to touch 812 m at the end of March 2011 (average annualgrowth of nearly 73% during this eleven year period).

Circles Number in millions

Metros 4 114

A circles 5 288

B circles 8 335.5

C circles 6 115

Indian Telecom Industry


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Reliance,

16.81%

Vodafone,

16.56%

Idea,

11.55%BSNL,

10.91%

Tata,

9.97%

Aircel, 6.84%

Uninor, 3.67%

Bharti, 19.70%

Others, 3.90%

The GSM ARPU(Average revenue per user) is Rs 100 (~ USD 2.2) per month.There is a wide disparity in the rural and urban teledensity with rural teledensity at34% vs. urban teledensity of around 157%.

Indian Telecom Industry


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Vodafone Mobile Subscribers inthe world (%)

Vodafone Mobile Penetration inthe world (%)

Europe, 19

US/Canada, 6

India, 15

China, 16

Other Asia

pacific, 18

Africa, 10

Others, 16

The total mobile subscribers in the world is 5.6 billion , out of which India occupies a marketshare of 15 % , after Europe and China.

130

103

6965

58

0

20

40

60

80

100

120

140

Europe US/Canada India China Africa

Vodafone-Overview


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Vodafone Customers by Market(%) Vodafone Revenue by Market (%)

India, 36

Vodacom,12Germany,

10

Egypt, 9

Italy, 6

UK, 5

Spain, 5

Others, 17Germany, 17

Italy, 12

Spain, 11

UK, 11India, 8

Vodacom, 12

Others, 29

Vodafone-Overview


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Vodafone acquired a 67% stake in Hutchison Essar for$10.7 billion. The company was renamed VodafoneEssar. 'Hutch' was rebranded to 'Vodafone'.

2007

Vodafone acquired the licenses in remaining 7 circlesand started its pending operations in Madhya Pradeshcircle, as well as in Orissa, Assam, North East and Bihar.

2008 Vodafone Group buys out its partner Essar from its

Indian mobile phone business. It paid $5.46 billion totake Essar out of its 33% stake in the Indian subsidiary.It left Vodafone owning 74% of the Indian business.

2011

Vodafone India-Overview


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2500000000

24-hour Nation-wide RebrandingCampaign

20th

September (9 PM) 21st

September (9 PM)

TV Commercials, Contests etc

13 Channels; 5 Languages



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The brand transition was the largest, fastest and the most successful in the

whole world. During the transition 4,00,000 multi brand outlets, over350

Vodafone stores, over1,000 mini stores, over35 mobile stores and over

3,000 touch-points were rebranded in two months, with 60% completed

within 48 hours of the launch

- Times of India

An entire episode of CNBC covered the transition as a case study

Day-after brand recall for Vodafone was 80%

Proclaimed by the industry and media as one of the best brand-

launches the country has ever seen

35 Million Subscribers transitioned seamlessly into brand

Vodafone andwithin six months of launch, it became the brand

of choice for over44 million subscribers


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Strengths

Strong brand name

Wide distribution network

Financially stable

Strong brand connect with the customer

Strong customer base

Weaknesses

An international brand name may mean

that Indians may view it as a foreign

brand

Low margins to distributors and retailers

Servicing of client needs.

Opportunities

Untapped rural market

Introduction of newer technologies

Value added services market

Business markets

Threats

A number of competitors entering the

telecom space

Mobile number portability

Fear of consolidation in the industry



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MTNL

BSNLReliance

Airtel

Vodafone

Tata

AircelIdea

LoopUnitech

Videocon

MTS

High on esteemLow on esteem

High on

service

Low on

service

PERCEPTUAL MAP

Vodafone India


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To conduct a Brand Analysis of Vodafone on the

basis of the secondary research through aquestionnaire, and primary research, in depthinterviews to tap the top of the mind brand andbrand image of Vodafone.

ResearchObjective

The study is limited to Delhi/NCR Region.

Scope of thestudy

The sampling technique applied is snowballsampling technique.

Sampling

technique

120.Sampling Unit

Research Methodology


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Research Design


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Brand Analysis Framework


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Each item was measured on a 5-point Likert-type scaleanchored by strongly disagree (1) and strongly agree

(5).

Construct Component Item in QuestionnaireGeneral Brand Impression Brand Awareness I can recognize the brand among

competing brands

I can quickly recall the logo of the brand

I can quickly recall the brand ambassador

of the brand

I can quickly recall its tv advertisement

Brand Image Has a good reputation

Is a prestigious brand

Brand Specific Association Perceived Quality Has a good Network

Has good Call rates

Has good availability

Has good services

Emotional values Is the brand I love

Makes me want to use it

I want to stay associated with the brand

Gives me pleasure

I will Choose this brand over

Competitors

Brand Commitment Brand Loyalty I am loyal to this brandI will Choose this brand overCompetitors

Brand Analysis Construct


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Female40%

Male60%

Gender

Findings


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408%

Age (in years)

Findings


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Findings

>300000

21%

300000-600000

7%600001-1000000

44%

>100000028%

Yearly Family Income


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Findings

50-1001%

101-20047%

201-40022%

>40030%

Monthly Spending on Mobile phoneBill


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Findings

Airtel28%

Vodafone59%

Reliance5% Idea

8%

Favorite Telecom Brand


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Advertisements41%

Family4%

Friends52%

Colleagues2%

Dealers1%

Purchase Decision Influencers

Findings


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Findings

Airtel28%

Idea

9%Reliance

13%TataDocomo

5%

Vodafone45%

Brand that understands IndianConsumers well


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Findings

BrandImage

5%

CustomerCare

services3%

Availability2%

Network36%

Offers7%

Call rates

25%

Valueadded

services22%

Factors important while choosing amobile service provider.


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Incomingand

outgoingcalls50%

Internet

31%

SMS packs19%

Factors important while using mobile.

Findings


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70% of the total sample chose Vodafone as its favorite telecom brand.

Cross Tab-association

between mobileservice provider

and favoritetelecom operator

P- value


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between genderand favorite

telecom serviceprovider

P- value >0.05

Fail to Reject NullHypothesis

H0: There is noassociation

between genderand favorite

telecom serviceprovider

Be it males or females, both love Vodafone as a brand and choose it

over their own mobile service provider.

Favorite Telecom Brand- Analysis

75%

66.7%


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betweenmonthly mobilebill and telecomservice provider

P- value


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Construct Component Item in

questionnaire

Vodafone Airtel Idea Reliance Tata

Docomo

General Brand

Impression

Brand Image Has a good

reputation

4.48 4.16 3.12 1.77 2.47

Is a prestigiousbrand

4.49 4.53 3.78 2.27 3.08

Brand

Awareness

I can quickly recall

the logo of the

brand

4.51 4.53 3.87 1.53 3.13


the brandambassador of the

brand

4.5 4.48 3.8 2.18 3.07


the tv ads of thebrand

4.55 4.47 4.51 1.63 3.02

Brand SpecificAssociation

PerceivedQuality

Has a goodnetwork

4.53 3.80 3.74 1.68 2.36

Has good call rates 2.39 2.37 3.83 4.54 4.51

Has good

availability

4.48 4.52 3.8 3.75 3.03

Has good services 4.51 3.84 3.13 3.03 3.08

Emotional

Values

Is the brand I love 4.47 3.13 2.34 2.29 2.33

Makes me want to

use it

4.46 3.12 2.38 2.28 2.39

I want to stayassociated with the

brand

4.43 3.79 4.36 2.28 3.08

Brand

Commitment

Brand

Loyalty

I am loyal to the

brand

4.41 3.88 2.31 2.23 2.3

I will choose the

brand overcompetitors

4.43 4.51 3.07 2.16 3

Findings


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General Brand Impression- Brand Image

Has a good reputation Is a prestigious Brand

P-Value < 0.05


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General Brand Impression- BrandAwareness

Recall of Logo Recall of brand

ambassador

Recall of tv ads of

the brand.

P-Value < 0.05


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Brand Specific Association- PerceivedQuality

Has a good

Network

Has good call

rates.

Having good

availability.

P-Value < 0.05


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Brand Specific Association- Emotionalvalues

Is the brand I

love

Makes me want to

use it.

I want to stay

associated with

the Brand

P-Value < 0.05


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Brand Commitment-Brand Loyalty

I am loyal to the

Brand

I will choose the Brand

over Competitors

P-Value < 0.05


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Vodafone should work on its call rates as it scores very low incomparison to its competitors on having good call rates.

Call rates form the second most important factorwhile choosing a mobileservice provider and Incoming and outgoing calls form the most importantfactor while using mobile services.

Recommendations

Incoming

andoutgoingcalls50%

Internet31%

SMSpacks19%

Factors important while using mobile.

BrandImage

5%

CustomerCare

services3%

Availability2%

Network36%

Offers7%

Call rates25%

Valueadded

services22%

Factors important while choosing a

mobile service provider.

1


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Advertising spent has a direct correlation with increase in the number of subscribers.Hence Vodafone should continue to advertise and penetrate deeper into the Indianmarket.

Vodafone should also go forMarket Development for the Rural part of India. Tele

density in India is still 70%. There is 30% of the untapped market left to be tappedand only 37% penetration in rural India.

Recommendations

220

3.1

17

2.85

Advertising Spent 2009 (Rs bi ll ion) Increase in users (mil lion)

Airtel Vodafone


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Idea gained the maximum subscribers after MNP because it made allthe effort to advertise for MNP.

Vodafone should also advertise on the benefits that mobile users

would gain by changing their connection to Vodafone.

Recommendations

38.24

-12

7.116.5

Idea Rcom Vodafone Bharti Airtel

Change in subscriber after MNP (lakhs)

Change in subscriber(lakhs)


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Since Five Indian states would standamong the 20 most populous nations in the

world and Uttar Pradesh has a populationwhich is more than the fifth largest countryin the world, hence Vodafone should focusits marketing efforts to acquire users inthese 5 states.

Recommendations

4

R d i


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B and C circle have very low penetration which gives Vodafone a marketdevelopment opportunity.

Vodafone should come up with some special plans for these two circle in order to

increase its reach.

Recommendations

5

R d ti


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Vodafone, which has an average of 5 to 6 megahertz of spectrum in mostzones in India, compared with the 22 megahertz it holds on average inother countries should use its global expertise and increase the spectrum inIndia as well.

This would help it provide better Value Added Services at cheaper Rates

and increase average revenue per customer.

Recommendations

650-100

1%

101-20047%

201-40022%

>40030%

Monthly Spending on Mobilephone Bill

R d ti


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The consumers tend to remember more about the zoo zoos and the pugwhile the basic service attributes that can be attached to a telecomoperator are not really crossing the mind of the consumerwhen talkingabout the brand.

Recommendations

7Red/White

Colors

12%

Pug/Dog

21%

Zoo Zoo

58%

Happy

to

Help

7%

Power to you

0%

Express yourself2%

What connects you with Vodafone the most

R d ti


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Vodafones tagline of Happy to Help is not going down well as consumers

who are not satisfied with Vodafone cite the main reason as poor customerservice. Clearly Vodafone is not being able to stand up to its own promise.

Recommendations

8


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Indepth Interviews- Vodafone Users

Li i i


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Limitations

We faced time constraint during our research, as we had less numberof days for the completion of the research.

Money constraints: We havent had the proficiency to carry wide

surveys for collecting primary data, and hence were not also able to

hire specialized market experts and research agencies to collectprimary data. Thus, we had to go for obtaining secondary data that ischeaper to obtain.

Sample size: Due to time constraint, we had to go for snowballsampling.

The research was conducted in open marketplace where numerousvariables act on research settings.

R f


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References

Lee, M.Y., Knight D., Kim Y.K. (2008). Brand analysis of a U.S. global brand in comparison with domestic brands.Journal of Product & Brand Management.

Bhardwaj, V., Kumar, A. and Kim, Y.K. (2010). Brand Analyses of U.S. Global and

Local Brands in India: The Case of Levi's. Journal of Global Marketing.

Kotler, P., Keller, K., Lane, Koshy, A., Jha, M. (2009), Marketing Management (13e), Prentice Hall, Delhi.

Vodafone expects to triple data revenue in India, The Times of India, Jan 9, 2012. Accessed on 19 January 2012.

Rajpurohit, R.C.S. and Dr. Vasita, M.L (2011), Consumer Preferences and Satisfaction towards various mobile phone

services providers.

Sathish M (Feb. 2011), A Study on Consumer Switching Behaviour in Cellular Service Provider: A Study with reference

to Chennai.

Service Provider wise Wireless Market Share (CMS) October 2011, http://www.indiatelecomonline.com/service-

provider-wise-wireless-market-share-october-2011/, accessed on 10 January 2012.

Vodafone Annual report2011, http://www.vodafone.com/content/annualreport/annual_report11/index.html,

accessed on 9 January 2012.

Snapshot: India Telecom Market, http://www.telecomcircle.com/2009/06/india-telecom/, accessed on 9 January

2012.

Research Indian Telecom Industry, http://www.equitymaster.com/research-it/sector-info/telecom/, accessed on 9

January 2012.


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