IIBD Case Competition

Bring Zoozoo to indian life, indian home, and

indian heart

Brand

Communication

Strategies

Bring Zoozoo to Indian LIFE, Indian HOME, and Indian HEART

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.


ZooZoo Palace

Create ZooZoo (Cricket Time With ZooZoo)

ZooZoo Greenize

India

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.

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.

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 wide-

open 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.

“I’m

Indian, and

I love

cricket”


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


5

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 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.

[Street Address]

[City], [State][Postal Code]

Background


6

Cognitive

Affective

Conative

Awareness

Knowledge

Interest

Preference

Buying

Satisfaction

Loyality

}

}

}

Main Share

Heart Share

Market

Share

Affective

Conative

Segmenting

Targeting

Positioning

Geographical segment (Rural and Urban

India)

Demographic segment – middle Up

income groups

People living in small towns and

villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

People living in Big towns and

small townss.

Midlle Up income groups.

Youngsters and Businessman

Creating brands

Ads and

promotions

High Quality

Feature

Redifining Segmenting Targeting Vodafone Essar


7

SWOT ANALYSIS

One of big telecom company in India

that covers all 23 telecom circles in

India. As the secong market leader in

India, Vodafone Essar own

Having quiet large market share about

23.59% (wikipedia) and still keep

growing.

Have multi-segment target market so

that they can offer products with

differentiated to all ages.

Have a strong position in market with

ZooZoo Campaign using

Zoozoo character as the icon.

Had a historical legal troubles for

cruelty towards the dog in the video

advertisement’s making.

The brand image seemed to deteriorate

without pug’s magic, when the

transition from Hutch to Vodafone

brand

Having second large market share

below the rank of Bharti Airtel’s

W S

Well-known competitor company and

market leader in India, which is Bharti

Airtel

Rapid changing technology include in

telecommunication tools

Uncertainty of economic condition in

India

Huge potential market in India as

telecom industries is the world’s fastest

growing industry.

High technology using social media to

advertise and branding its company

There are festivals and events such as

India Premier League (IPL) that

Vodafone could participate in it or

develop such that programme.

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.

O T


8

Strategic Direction

The Market is THERE, You can GET IN

IF...

You have the RIGHT KEY

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.

Bring Zoozoo to Indians LIFE, Indians HOME, and Indians HEART


9

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?

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

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. Others: Vodafone Tuesday Offer Eat Out,

Cooperation with companies or entreprises, Zoozoo

merchandises such as mug and t-shirt.

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.


10

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

tittle-tattle with zoozoo in gathering program

Dance zoozoo in special days and events Zoozoo Greenize India

Zoozoo Cricket Time

Promote Zoozoo Cricket Time

Cost (in million rupees)

No Things to buy Cost Item Total cost

1 Zoozoo Palace

Double Decker bus 16,50 4 66,00

Zoozoo game set 0,30 12 3,60

Bus Interior cost 1,56 4 6,25

Other costs (drivers wage, gasoline) 0,10 4 0,40

2 Zoozoo Green India

Recycling plastic cost 0,17 10 1,65

3 Cricket with Zoozoos

Promotion Advertisement in television 0,30 0,30

Cricket Ground rent 0,78 6 4,69

Zoozoo Cricket Award (the best player) 0,23 6 1,35

Total 84,24


SALES

N N+1 N+2 N+3 N + 4 N + 5

Product

Total

market size N

Vodafone

market

share

Sales

Expected

annual

growth

Total mark

et size N + 1

Vodafone

market

share

Sales

Total mark

et size N + 2

Vodafone

market

share

Sales

Total mark

et size N + 3

Vodafone

market

share

Sales

Total mark

et size N + 4

Vodafone

market

share

Sales

Total mark

et size N + 5

Vodafone

market

share

Sales

TOTAL

sales by

product

Vodafone

812 25% 203,00

4% 844,48

27% 228,01

878,26

29% 254,70

913,39

31% 283,15

949,93

33% 313,48

987,92

35% 345,77

1425,10

Total Sales

203,00

228,01

254,70

283,15

313,48

345,77

1425,10

Sales Growth

Rate

12,32%

11,70%

11,17%

10,71%

10,30%

MARKETING COSTS:

Marketing cost growth rate = 65,00% of sales growth 8,01% 7,61% 7,26% 6,96% 6,70%

N+1 N+2 N+3 N+4 N+5

Marketing costs before specific action: Year N = 2 2,16 2,32 2,49 2,67 2,85

Specific action marketing costs:

Zoozoo Palace 76,25 0,4 0,4 0,40 0,40

Zoozoo Green India 1,65

Cricket with Zoozoos 0,30 6,34 1,35 1,35 1,35

Total Marketing Costs: 78,71 9,06 5,89 4,42 4,60 93,67


12

Profit and Loss

Million Rupees

%

SALES 1425,1 100,0%

Cost of goods 1157,9 81,3%

MARGIN ON OPERATIONS 267,2 18,8%

Advertising & Promotions 93,7 6,6%

OPERATING RESULT 173,5 12,2%

Margin on operations vodafone 1425,10 19% 267,2

TOTAL 267,2


13

http://129.3.20.41/eps/em/papers/0412/0412012.pdf

http://mosoci.com/blog/wp-content/uploads/2009/03/cultural-insights-india-part.pdf

http://www.vodafone.com/content/annualreport/annual_report08/performance/financial_pos_and_resources/index.html

http://www.vodafone.com/content/annualreport/annual_report08/performance/financial_pos_and_resour

ces/index.html http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/annual_report_accounts_200

9.pdf

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http://www.siliconindia.com/shownews/India_is_the_2nd_largest_CDMA_market-nid-57694.html http://www.shanzai.com/index.php/market-mayhem/asia-analysis/450-cdma-market-in-india

http://articles.economictimes.indiatimes.com/2009-05-29/news/28398341_1_cdma-users-cdma-market-cdg

http://www.slideshare.net/Sutanshu/airtel-presentation-2011 http://www.expresscomputeronline.com/20110117/expressintelligententerprise20.shtml

http://en.wikipedia.org/wiki/Triple_bottom_line

http://bonelessresearch.blogspot.com/2011/06/kolkata-wireless-telecom-market-2011.html

http://en.wikipedia.org/wiki/Communications_in_India http://www.dailymarkets.com/stock/2011/05/31/earnings-scorecard-vodafone/

http://www.cellular-news.com/story/39099.php


14

Annexure


15