Brand Analysis and Evaluation PRESENTED BY:

HITAISHI GUPTA 043026

Indian Telecom Industry

Circles Metros A circles B circles C circles Number 4 5 8 6 in millions 114 288 335.5 115

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

Indian Telecom Industry

Others, 3.90% Reliance, 16.81%

Bharti, 19.70% Uninor, 3.67% Aircel, 6.84% Tata, 9.97% BSNL, 10.91% Idea, 11.55% Vodafone, 16.56%

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 at 34% vs. urban teledensity of around 157%.

Vodafone-Overview
Vodafone Mobile Subscribers in the world (%) Vodafone Mobile Penetration in the world (%)

Others, 16

140 Europe, 19 120 100 130 103

Africa, 10

US/Canada, 6

80 60 69 65

Other Asia pacific, 18 China, 16

India, 15

58

40 20

0
Europe US/Canada India China Africa

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

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

Others, 17

Germany, 17 India, 36
Others, 29 Italy, 12

Spain, 5 UK, 5 Italy, 6

Vodacom, 12 Egypt, 9 Germany, 10

Spain, 11

Vodacom, 12

India, 8

UK, 11

Vodafone India-Overview

2007 2008

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

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

2011

Vodafone Group buys out its partner Essar from its Indian mobile phone business. It paid $5.46 billion to take Essar out of its 33% stake in the Indian subsidiary. It left Vodafone owning 74% of the Indian business.

Vodafone India-Overview
20th September (9 PM) 21st September (9 PM) 24-hour Nation-wide Rebranding Campaign

2500000000
13 Channels; 5 Languages

TV Commercials, Contests etc

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 brandlaunches the country has ever seen 35 Million Subscribers transitioned seamlessly into brand Vodafone and within six months of launch, it became the brand of choice for over 44 million subscribers
The brand transition was the largest, fastest and the most successful in the whole world. During the transition 4,00,000 multi brand outlets, over 350 Vodafone stores, over 1,000 mini stores, over 35 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

Vodafone India-Overview
Strengths Weaknesses

Strong brand name

Wide distribution network Financially stable Strong brand connect with the customer

An international brand name may mean

that Indians may view it as a foreign brand

Low margins to distributors and retailers

Strong customer base

Servicing of client needs.

Opportunities

Threats

Untapped rural market

Introduction of newer technologies Value added services market Business markets

A number of competitors entering the

telecom space Mobile number portability Fear of consolidation in the industry

Vodafone India
PERCEPTUAL MAP
High on service

Vodafone

BSNL MTNL

Airtel
Reliance

Tata

Low on esteem

Aircel Loop MTS Unitech Videocon

High on esteem

Idea

Low on service

Research Methodology
Research Objective Scope of the study Sampling technique
Sampling Unit
To conduct a Brand Analysis of Vodafone on the basis of the secondary research through a questionnaire, and primary research, in depth interviews to tap the top of the mind brand and brand image of Vodafone.

The study is limited to Delhi/NCR Region.

The sampling technique applied is snowball sampling technique.

120.

Research Design

Brand Analysis Framework

Brand Analysis Construct

Construct
General Brand Impression

Component
Brand Awareness

Item in Questionnaire
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 Has a good reputation Is a prestigious brand Has a good Network Has good Call rates Has good availability Has good services 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 I am loyal to this brand I will Choose this brand over Competitors

Brand Image Brand Specific Association Perceived Quality

Emotional values

Brand Commitment

Brand Loyalty

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

Findings
Gender

Female 40%

Male 60%

Findings
Age (in years)
>40 8%

<20 17%

30-40 28%

20-30 47%

Findings
Yearly Family Income

>1000000 28%

>300000 21%

6000011000000 44%

300000600000 7%

Findings
Monthly Spending on Mobile phone Bill
50-100 1% >400 30% 101-200 47%

201-400 22%

Findings
Favorite Telecom Brand
Reliance 5% Idea 8%

Airtel 28%

Vodafone 59%

Findings
Colleagu Purchase es 2%

Decision Influencers
Dealers 1%

Advertise ments 41%

Friends 52%

Family 4%

Findings
Brand that understands Indian Consumers well

Airtel 28% Vodafone 45% Idea 9% Reliance 13%

Tata Docomo 5%

Findings
Brand Image 5%

Factors important while choosing aCustomer Care mobile service provider. services
3% Availability 2% Value added services 22% Call rates 25%

Network 36%

Offers 7%

Findings
Factors important while using mobile.

SMS packs 19% Incoming and outgoing calls 50%

Internet 31%

Favorite Telecom Brand- Analysis

Cross Tabassociation between mobile service provider and favorite telecom operator

54.3% 83.3% 50%

P- value <0.05 Reject Null Hypothesis

H1: There is association between mobile service provider and favorite telecom operator

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

Vodafone has good Brand equity and people like Vodafone as a brand but still they have different mobile service provider ????

Favorite Telecom Brand- Analysis

66.7% 75%
Cross Tabassociation between gender and favorite telecom service provider

P- value >0.05 Fail to Reject Null Hypothesis

H0: There is no association between gender and favorite telecom service provider

Be it males or females, both love Vodafone as a brand and choose it over their own mobile service provider.

Monthly Spending on Mobile Phone Bill and Service Provider Correlation

67.9%

Cross Tabassociation between monthly mobile bill and telecom service provider P- value <0.05 Reject Null Hypothesis H1: There is association between monthly mobile bill and telecom service provider

52.8% 44.4%

It was seen that cost conscious consumers who dont spend much on mobile phones or want to spend low, have Reliance as their mobile connection.

Findings
Construct General Brand Impression Component Brand Image Item in questionnaire Has a good reputation Is a prestigious brand I can quickly recall the logo of the brand I can quickly recall the brand ambassador of the brand I can quickly recall the tv ads of the 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 I am loyal to the brand I will choose the brand over competitors Vodafone 4.48 4.49 4.51 Airtel 4.16 4.53 4.53 Idea 3.12 3.78 3.87 Reliance 1.77 2.27 1.53 Tata Docomo 2.47 3.08 3.13 Brand Awareness

4.5

4.48

3.8

2.18

3.07

4.55

4.47

4.51

1.63

3.02

4.53 2.39 4.48 4.51 4.47 4.46 4.43

3.80 2.37 4.52 3.84 3.13 3.12 3.79

3.74 3.83 3.8 3.13 2.34 2.38 4.36

1.68 4.54 3.75 3.03 2.29 2.28 2.28

2.36 4.51 3.03 3.08 2.33 2.39 3.08

Brand Commitment

Brand Loyalty

4.41

3.88

2.31

2.23

2.3

4.43

4.51

3.07

2.16

General Brand Impression- Brand Image

Has a good reputation Is a prestigious Brand

P-Value

< 0.05

<0.05

Analysis

Brand type has an effect on: having a good reputation. Reliance has the most poor reputation.

Brand type has effect on: having it being perceived as a prestigious brand. Tata Docomo and Reliance arent considered to be prestigious.

General Brand Impression- Brand Awareness

Recall of Logo Recall of brand ambassador <0.05 Recall of tv ads of the brand. <0.05

P-Value

< 0.05

Analysis

Brand type has an effect on: the Recall of logo of the brand. Reliance logo had the poorest recall.

Brand type has an effect on: the Recall of brand ambassador of the brand. Vodafone and Idea have the highest recall. Reliance has the least.

Brand type has an effect on: the Recall of tv ads of the brand. Reliance has the least, followed by Tata Indicom.

Brand Specific Association- Perceived Quality

Has a good Network P-Value < 0.05 Has good call rates. <0.05 Having good availability. <0.05

Analysis

Brand type has an effect on: having it being perceived to have a good network. Reliance has the most poor Network.

Brand type has an effect on: brand having good call rates. Vodafone is perceived to have worst call rates followed closely by Airtel.

Brand type has an effect on: brand having good availability.

Brand Specific Association- Emotional values

Is the brand I love P-Value < 0.05 Makes me want to I want to stay associated with use it. the Brand <0.05 <0.05

Analysis

Brand type has an effect on: brand being loved more.

.

Brand type has an effect on: brand that pulls customers towards it. Reliance scores the least and Vodafone the highest.

Brand type has an effect on: brand that customers want to stay associated with.

Brand Commitment-Brand Loyalty

I am loyal to the Brand P-Value Analysis < 0.05 Brand type has an effect on: brand that customers are loyal to. Vodafone has the highest loyalists. . I will choose the Brand over Competitors <0.05 Brand type has an effect on: brand that customers over competitors.

Recommendations

Factors important while using mobile.

Customer Factors important while choosing a Care mobile service provider. services Brand Image 5% 3% Availability 2%

SMS packs 19% Incoming and outgoing calls 50%

Value added services 22% Call rates 25% Network 36%

Internet 31%

Offers 7%

Vodafone should work on its call rates as it scores very low in comparison to its competitors on having good call rates. Call rates form the second most important factor while choosing a mobile service provider and Incoming and outgoing calls form the most important factor while using mobile services.

Recommendations
Airtel Vodafone

20 17

3.1

2.85

Advertising Spent 2009 (Rs billion)

Increase in users (million)

Advertising spent has a direct correlation with increase in the number of subscribers. Hence Vodafone should continue to advertise and penetrate deeper into the Indian market. Vodafone should also go for Market Development for the Rural part of India. Tele density in India is still 70%. There is 30% of the untapped market left to be tapped and only 37% penetration in rural India.

Recommendations

Change in subscriber after MNP (lakhs)

Change in subscriber(lakhs) 8.24 7.11 6.5

Idea

Rcom

Vodafone

Bharti Airtel

-12

Idea gained the maximum subscribers after MNP because it made all the effort to advertise for MNP. Vodafone should also advertise on the benefits that mobile users would gain by changing their connection to Vodafone.

Recommendations

Since Five Indian states would stand among the 20 most populous nations in the world and Uttar Pradesh has a population which is more than the fifth largest country in the world, hence Vodafone should focus its marketing efforts to acquire users in these 5 states.

Recommendations

5
B and C circle have very low penetration which gives Vodafone a market development opportunity. Vodafone should come up with some special plans for these two circle in order to increase its reach.

Recommendations

Monthly Spending on Mobile phone Bill

50-100 1% >400 30% 101-200 47% 201-400 22%

Vodafone, which has an average of 5 to 6 megahertz of spectrum in most zones in India, compared with the 22 megahertz it holds on average in other countries should use its global expertise and increase the spectrum in India as well. This would help it provide better Value Added Services at cheaper Rates and increase average revenue per customer.

Recommendations
What connects you with Vodafone the most

Power to you 0%

Express yourself 2% Red/White Colors 12%

Happy to Help 7%

Pug/Dog 21%

Zoo Zoo 58%

The consumers tend to remember more about the zoo zoos and the pug while the basic service attributes that can be attached to a telecom operator are not really crossing the mind of the consumer when talking about the brand.

Recommendations

8
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 customer service. Clearly Vodafone is not being able to stand up to its own promise.

Indepth Interviews- Vodafone Users

Limitations
We faced time constraint during our research, as we had less number of 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 collect primary data. Thus, we had to go for obtaining secondary data that is cheaper to obtain. Sample size: Due to time constraint, we had to go for snowball sampling. The research was conducted in open marketplace where numerous variables act on research settings.

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/serviceprovider-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.

Thank You