3. INTRODUCTION TO VODAFONE
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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
6. MERGER
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.
7. Need of merger and acquisition
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Gain market share
Economies of scale
Enter new market
Acquire technology
Utilization of surplus funds
Marginal economics
Statergic objective
Vertical integration
9. 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
10. • 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”.
11. • 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.
12. CHALLENGE
Hutch, 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.
13. 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.
14. 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.
