Business Model Canvas (BMC)- A new venture concept
IIBD Case Competition
1. Bring Zoozoo to indian life, indian home, and
indian heart
Brand
Communication
Strategies
2. Executive Summary
Vodafone Essar is currently the second largest telecom company in India in terms of market share, and aims
ascend the ranks to become the market leader. It has undergone long history until its establishment in the Indian
telecom market, and yet there are still plenty of challenges to overcome. Outstanding ideas along with numerous
extraordinary processes have been implemented with top-notch outcomes, ultimately resulting in Vodafone Essar’s
present-day position.
The Zoozoos, lively anthropomorphic creatures acting as Vodafone Essar’s brand ambassador today, are widely
known and loved by Indian communities. Still, possessing highly acknowledged brand image is far from enough.
Vodafone Essar seeks to be the leading company in terms of profitability and subscribers share.
Vodafone Essar targets rural communities as its primary market. It has been an expedient decision so far, as noted
by a huge market potential within such areas. What should the company seek after all? Vodafone Essar is fully
aware of two of Indian market’s sharpest strength: huge population and high telecom market growth, and therefore
able to gain value through several strategies. We would like to entice on our ideas to accomplish Vodafone Essar’s
goals.
India is a big country with a variety of cultures and customs. To simply identify Indian telecom markets as a
singular, perfectly uniform market would be naïve. Vodafone Essar should capitalize on the hottest today issue and
the rich, vibrant Indian way of life, augmenting such with its Zoozoo ambassador.
Making Zoozoos blend with Indian communities effectively and naturally should be Vodafone Essar’s primary
objective in delivering its values through the Indian markets. The Indian culture and customs in particular need to
be paid special attention in capitalizing the ongoing market affection. We would propose that, with its Zoozoos,
Vodafone Essar actively pursues market bases and creates breakthroughs in order to effectively expand its market
share and ultimately lead the Indian telecom market.
The marketing programs we would opine are Zoozoo Place, Cricket Time with Zoozoos, and Zoozoo Green India.
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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3. Create ZooZoo
(Cricket Time With ZooZoo)
ZooZoo Palace
“I’m
Indian, and
ZooZoo Greenize
India
I love
The concept of this idea
is simply to bring zoozoo
closer to subscribers, with
transfer-ball strategy, to
touch the life of Indians, and
further could be beneficial as
vehicle tool for another
vodafone activities. Inside the
bus, there will be 3 zoozoo
games tools (like play station),
wifi area, credit payment and
other services for subscribers.
At a moment, zoozoo palace
can stop by in certain cities and
Vodafone could make wideopen zoozoo tittle-tattle time
for subscribers in special
moments such as Valentine
Day, Indepence Day, Durga
Puja, Indian Premier League,
Diwali, Christmas, Idul Fitri,
Holiday, New Year. There also
could be a programme “Zoozoo
Dance” among the subscribers.
cricket”
Realizing the most lovable sport in
India is Cricket, Vodafone can touch
the Indian by developing cricket
program.
Subscribers can have the right to
participate in this program, and play
cricket if they are lucky selected.
Subscribers should send their best
story with Vodafone, or tweet and
mention Vodafone Zoozoo twitter
account their best statement about
Vodafone, then Vodafone will choose
the best 32 subscribers among them to
get the ticket for Cricket (11 players
plus 7 substitute players in each team).
This game will be held periodicaly
every two month, there will be two
teams compete each. Targeted market
is young Indians, include internet
citizen as the selection happening on
social media twitter.
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
Vodafone could make Corporate
Social Responsibilities program.
Subscribers and zoozoo lovers
are entangled in the activity of
collecting garbage in Greenerize
India. All collected used plastic
will be recycled to make a
plastic zoozoo doll. This
environtmentally friendly
strategies will embed in the
subscribers’ heart.
Participant of the program
would be given recycled
zoozoo doll for free.
4. Execution
Strategy
First Step
Customer Insight represents a deep understanding of customer needs and the drivers
of customer behavior at a level well beyond what customers are able to articulate
themselves
Second Step.
Action is a marketing interaction between consumers and the product, where consumers
can understand the product better and accept it as a part of their lives.”
Third Step
Establish relationships with customers, both existing customers and potential customers
the easiest way is to make both communities Online and offline, The objective
Relationship is emphasis building and maintaining profitable long term relationship with
customer by creating superior customer valve and satisfactions. and making them feel
good about company by giving the some kind of personal connection to business
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
5. Background
Vodafone Company
Started its business by overtake Hutch company in the year 2007 that
owned 67% stake in Hutchison Essar. Have had long journey in
expanding its business, Vodafone today operates in all 23 circles telecom
in India and has the second large market share below Bharti Airtel.
Vodafone Essar is well-known with its Zoozoo campaign, which now
become ambassador. Zoozoo is used to promote Vodafone’s Value Added
Service (VAS) commercial as VAS gives higher margin than voice
transfer service. Facebook as the platform to launched Zoozoo campaign
now has about 1.979.323 fans as of June 6th 2011.
Current Situation
Triple Bottom Line
People-planet-profit is the three pillars as criteria for measuring organizational
success. This issue become so populer, instead the company believe by giving
more they could achieve more. India, a developing country, has big potential
to be developed more in such ways.Vodafone India could think further to gain
more subscribers and its effect to profitability, by simply become a part of
Indians, live the Indians way.
Telecom Industries
[Street Address]
[City], [State][Postal Code]
Presently, one can safely regard the Indian telecom industry as the world’s
fastest growing industry with more than 800 million mobile phone subscribers
as of March 2011. As a matter of fact, India also possesses the second largest
telecommunications network in the world after China. Projected that India will
have 1.159 billion mobile subscribers by 2013, telecom industries in India are
facing huge to achieve more in their business. However, there is TRAI
(Telecom Regulatory Authority of India) that entrusted to control tarrifs and
other policies. As the mobile tarrifs in India is the lowest in the world, telecom
industry become more competitive.
Competitor
Bharti Airtel as the biggest and market leader in service provider company in India is the rival and big
competitor for Vodafone Essar. Bharti, as local company, started its telecom service business in 1995, has major
market share with more than 185 million customers across its operations (slideshare.net, 2010) or 27,61% as in
January 2011 (slideshare, 2011), keep strengthen its position in market not only with Brand Ambassador
(Sharukh Khan & Sachin Tendulker) and advertisement but also with promotion with study of poor children.
Bharti Airtel’s target market is people who lives in big cities and town or metropolitans, while Vodafone has
different target market which is people living in small town and villages. Both company use almost the same
strategy for marketing mix, these are low price strategy, maximum outlet and service centres, and various
schemes for pre-paid and post-paid. Both company also operates its business in all 23 circles telecom in India.
Bharti tried to touch the people and customer with its commercial and inspiring video, that tell about historical
India related to Bharti. This is made to embed people with nationalism in India, and seem to have nationalist
Indian to be the subscriber of Bharti.
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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6. Redifining Segmenting Targeting
Vodafone Essar
Segmenting
Targeting
Geographical segment (Rural and Urban
India)
Demographic segment – middle Up
income groups
People living in small towns and
People living in Big towns and
villages.
small townss.
Poor and middle income groups.
Midlle Up income groups.
Youngsters in big cities.
Youngsters and Businessman
Businessmen
Affective
Positioning
Conative
Creating brands
Ads and
promotions
High Quality
Feature
Awareness
Cognitive
Knowledge
Affective
Interest
Preference
}
}
Buying
Conative
Satisfaction
Loyality
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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Main Share
Heart Share
}
Market
Share
7. SWOT ANALYSIS
One of big telecom company in India
Had a historical legal troubles for
that covers all 23 telecom circles in
cruelty towards the dog in the video
India. As the secong market leader in
advertisement’s making.
India, Vodafone Essar own
The brand image seemed to deteriorate
without pug’s magic, when the
23.59% (wikipedia) and still keep
transition from Hutch to Vodafone
growing.
Having quiet large market share about
brand
Have multi-segment target market so
Having second large market share
below the rank of Bharti Airtel’s
that they can offer products with
differentiated to all ages.
Have a strong position in market with
S W
ZooZoo Campaign using
Zoozoo character as the icon.
Huge potential market in India as
T
O
telecom industries is the world’s fastest
growing industry.
High technology using social media to
market leader in India, which is Bharti
advertise and branding its company
Airtel
There are festivals and events such as
India Premier League (IPL) that
Rapid changing technology include in
telecommunication tools
Vodafone could participate in it or
develop such that programme.
Well-known competitor company and
Uncertainty of economic condition in
India
Indians spending on information and
communication technology increase
from 2010 spending of $65.23 billion to
spending 2011 of $71.9 billion, 10.3%
increasing.
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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8. Strategic Direction
Affirm and expand influence over Indian market through excellent brand image by
ascertaining loyalty of present customer and improving market share and
profitability to be market leader in India’s telecom industry.
The Market is THERE, You can GET IN
IF...
You have the RIGHT KEY
Bring Zoozoo to
Indians LIFE, Indians HOME, and Indians HEART
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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9. What is happening?
Vodafone’s zoozoo campaign, out of
the blue, successfully become Indians
favorite, for more than 2 Millions
facebook fans and more than 10
Thousands followers in twitter.
“An outstanding idea” ever made for
commercial
Others: Vodafone Tuesday Offer Eat Out,
Cooperation with companies or entreprises, Zoozoo
merchandises such as mug and t-shirt.
Celebrity endorsment
“Irfaan Khan”
boolywood actor for
Slumdog Millionaire,
Durga Puja Festival,
Parallel commercial in
Indians Premier
League, has embeded
in the Indians. No
doubt about the way
for branding, it has
created good brand
image of Vodafone.
However, Vodafone
need to go deeper and
further to develop
more.
Vodafone tried to maintain the customers and
brought satisfaction to its customers. Cooperation
with companies set up to maintain its market share.
Vodafone could obtain these strategies.
Creating excellent brand image is a big challenge for Vodafone ever since its first establishment. Many strategies
have been implemented to gain value for company. Vodafone expects to have increasing value every time, for its
brand image that affect market share and also profitability ratios. Zoozoo Campaign absolutly brought positive
brand image. However, after so long journey, Vodafone has not yet been the leading telecom company in term of
market share and also profitability.
What is the MYSTERY over all?
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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10. Cost (in million rupees)
No Things to buy
1 Zoozoo Palace
Double Decker bus
Zoozoo game set
Bus Interior cost
Other costs (drivers wage, gasoline)
2 Zoozoo Green India
Recycling plastic cost
3 Cricket with Zoozoos
Promotion Advertisement in television
Cricket Ground rent
Zoozoo Cricket Award (the best player)
Total
Cost
Item Total cost
16,50
0,30
1,56
0,10
4
12
4
4
66,00
3,60
6,25
0,40
0,17
10
1,65
6
6
0,30
4,69
1,35
84,24
0,30
0,78
0,23
Timeline
Year 1
Year 2
Year 3 Year 4 Year 5
Maintain current strategies (Zoozoo video campaign & merchandises, social media facebook and twitter, Vodafone Tuesday
Offer Eat Out)
Zoozoo palace
Dance zoozoo in special days and events
Zoozoo Greenize India
tittle-tattle with zoozoo in gathering
program
Zoozoo Cricket Time
Promote Zoozoo Cricket Time
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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12. Profit and Loss
Million
Rupees
SALES
Cost of goods
MARGIN ON OPERATIONS
Advertising & Promotions
OPERATING RESULT
%
1425,1
1157,9
267,2
93,7
100,0%
81,3%
18,8%
6,6%
173,5
12,2%
Margin on operations
vodafone
19%
267,2
TOTAL
1425,10
267,2
Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART
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