Case Study on Vodafone’s Re-Branding Strategies in India: Hutch to Vodafone

3 Share

Launch of Vodafone Essar

Vodafone is the world’s leading international mobile communications company. It presently has

operations in 25 countries across 5 continents and 40 partner networks with over 200 million customers

worldwide. Vodafone has partnered with the Essar Group as its principal joint venture partner for the

Indian market. The Essar Group is a diversified business corporation with interests spanning the

manufacturing and service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and

Construction. The Group has an asset base of over Rs.400 billion and employs over 20,000 people.

Vodafone Essar was launched in India on 21st September 2007. Vodafone was welcomed in India with

the “Hutch is now Vodafone” campaign. The popular and endearing brand Hutch was transitioned to

Vodafone across India. This marked a significant chapter in the evolution of Vodafone as a dynamic and

ever-growing brand. This brand unveiled nationally through a high profile campaign covering all important

media.

Vodafone, the world’s leading mobile telecommunication company, completed the acquisition of

Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007. The

transition from Hutch to Vodafone is probably the largest brand change ever undertaken in this country

and arguably as big as any in the world. It is even larger than Hutch’s own previous brand transitions. The

migration from Hutch to Vodafone was one of the fastest and most comprehensive brand transitions in the

history of the Vodafone Group, with 400,000 multi brand outlets, over 350 Vodafone stores, over 1,000

mini stores, over 35 mobile stores and over 3,000 touch-points rebranded in two months, with 60%

completed within 48 hours of the launch.

The Vodafone mission is to be the communications leader in an increasingly connected world – enriching

customers’ lives, helping individuals, businesses and communities be more connected by delivering their

total communication needs.

Vodafone’s Marketing Strategies: Hutch to Vodafone

Vodafone’s new advertising campaign in India carried on with the same popular pug that has become a

brand ambassador for Hutch. ‘Where ever you go, our network follows,’ was the previous slogan with the

pug following the child wherever he goes. Now, with Hutchison Essar becoming part of the Vodafone

Group, the new campaign had started with Vodafone Essar earmarking Rs. 2.5 billion on the transition

from Hutch to Vodafone. The main message of the brand transition exercise: The new Vodafone is the

same old Hutch. In the advertisement, the pug sees a new home when it returns after an outing and feels

the change is better. The new catch phrase will be ‘Make the most of now.’

Vodafone had tied up with Star India to run a complete roadblock of its fresh campaign on the entire

network by unveiling the 24-hour nationwide rebranding campaign. Vodafone used all of the commercial

airtime across all 13 channels in five languages (Hindi, Tamil, Bengali, Marathi and English) from 9 pm on

20 September to 9 pm on September 21. This exercise included TV commercials, transition bumpers and

contest spots to promote the Vodafone Essar brand. Commercial spots had also been purchased on

Sony.

Conventionally awareness for a new brand takes some time to build. However, Vodafone wanted to

achieve this task at the shortest possible time. Hence, Maxus and Star Network worked closely to

address this challenge and came up with the idea wherein during the day of the launch a complete

roadblock on the Star Network channels was conceptualized. Considering that the Star Network is the

lead network in India, this was the most apt platform for Vodafone launch. This strategy helped not only in

achieving build rapid brand awareness but also breaks the clutter during such an important launch in the

most happening category – telecom. This is a first of its kind mega media initiative in India by any brand.

While the campaign was heavy on television, it also included all other media vehicles. The print campaign

kicked off on 21 September, a day after the television splash.

While the brand campaign had been addressing the transformation, the Company, on the other hand was

swiftly preparing for a price war in the Indian telecom space. Indeed, it was preparing to provide mobile

handsets to new subscribers at ultra-cheap prices, ranging from about $19 to $25.

Vodafone Essar launched low priced cell phones in India under the Vodafone brand, and also co-branded

handsets sourced from major global vendors. By bringing in millions of low-cost handsets from across the

globe into India, Vodafone Essar distributed bundled handsets through its existing 400,000 distribution

outlets. By flooding the market with its low-cost handsets, Vodafone also became a mass mobile phone

brand like Nokia, Samsung, Motorola, and Sony Ericsson in addition to continuing as telecom services

provider.

Previously, similar handset-driven expansion strategies to grow subscriber bases were adopted by CDMA

players, like RCOM and Tata Teleservices. Vodafone is the first GSM operator to follow suit.

The Vodafone mission is to be the communications leader in an increasingly connected world – enriching

customers’ lives, helping individuals, businesses and communities be more connected by delivering their

total communication needs. Vodafone’s logo is a representation of that belief – The start of a new

conversation, a trigger, a catalyst, a mark of true pioneering.

Vodafone’s Advertising Strategies: Hutch to Vodafone

Advertising is probably one of the most frequently used vehicles for Rebranding, as it is fairly easy,

flexible and quick to change. It is a powerful way of reaching a broad or targeted audience quickly and is

effective at signalling a change in positioning, however real or broad that may be. There are many

examples of where advertising has either repositioned or strengthened brands, other good examples of

where advertising has built a new position for a brand or built a strong emotional link with the public are

where companies have created a sort of soap opera out of their advertising.

The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had a two-fold task to

achieve: announce the entry of Vodafone into India and highlight the metamorphosis of Hutch into

Vodafone. O&M realised that they had a fantastic property in the Hutch pug, which they had been using

for about five years. Therefore, to show the transition from Hutch to Vodafone, O&M launched a rather

direct, thematic ad showing the trademark pug in a garden, moving out of a pink coloured kennel which

symbolised Hutch making his way into a red one that is the Vodafone colour. A more energetic, chirpier

version of the ‘You and I’ tune associated with Hutch was played towards the end, and it concludes with

‘Change is good. Hutch is now Vodafone’.

O&M has also rolled out four Commercials featuring Hutch’s animated boy and girl, ‘introducing’ the new

brand’s logo to consumers. The four creatives which were of five seconds each included the duo peeping

over a wall to see the logo; parasailing with the logo flying high behind them; releasing a rocket bomb

wherein the explosion reveals the logo; and lastly, drawing curtains aside to show the logo.

Four other ads with the pug did the rounds of telly screens. These five and 10 second spots cast the dog

in situations where he, literally, saw red, using the colour as a visual mnemonic to remember the brand

by. The pug was shown in a red basket, popping up from a red cart, drying himself on a red mat, and

hiding in a red blanket. Each of these made use of the ‘Hutch is now Vodafone’ tagline.

The print ads, in all major languages in several leading dailies, were kept unbelievably simple: a still shot

of the pug inside a red kennel. The same creative was used in outdoor hoardings as well, in all the 16

circles in which Vodafone now operates.

It wasn’t easy integrating Vodafone with Hutch; the latter, as is known, is a subtle, understated brand,

while globally, Vodafone represents high energy, dynamism and young vitality – all represented by its

bright red speech mark logo. And so they put in elements such as a more energetic tune and feel to the

ads.

A few advertisements include:

Hutch is now Vodafone: If you watch any of the star channels or tuned into 20-20 world cup, you

would have seen this ad. On 11 February 2007, Vodafone agreed to acquire the controlling interest of

67% held by Cheung Kong Holdings in Hutch-Essar for US$11.1 billion and now had to rebrand itself so

it has decided to run a new ad series which piggy banked on Hutch’s dog mascot and the theme

“Change is Good”. This required nearly 250 crores of spending by Vodafone but they have successfully

painted the town red. An interesting part of this campaign was on the opening day roadblock where they

made a deal with Star India so that besides them no other commercials were aired (apart from in-

channel promos) on the Star India’s channels for 24 hours.

Vodafone Valentine Day Special Ads: Vodafone had released a simple and sweet ad for musical

greetings targeted at couples during the valentine week the feature of this campaign is its simplicity and

believability and is quite well received. It uses the positioning “Make the most of now” enjoy the video

Vodafone Chota Credit Ink Ad: This new ad had come as refreshing change and more so that this

ad takes a very refreshing look at school and at fountain pens. This ad creates a wonderfully subtle

message which really puts the point of chota (small) credit across.

Emotional marketing is a highly successful method that is used by marketers to both attract and retain

customers. The main aim of emotional marketing  is to connect to customers’ hearts. It is seen that

emotional thoughts stimulate people’s minds faster than rational thoughts. Emotional marketing is all

about considering the feelings and needs of customers and finding ways to take advantage of the same to

achieve higher volumes of sales. Most marketers are now adopting emotional marketing

technique because of the realization that the emotional route can be effectively used to change

consumers’ attitude towards their products. Now-a-days companies are using emotional

advertisements to evoke favorable reaction from consumers. Emotion based marketing offers

competitive advantages to marketers in developing strong relationship with consumers.

Many of the advertisements these days have a strong element of emotion touch to them, which draws

consumers to connect with the brands being advertised. For example, the advertisement for Johnson &

Johnson baby care products and those for various insurance products most often attempt to influence

consumers through emotions. Brands which are not able to make an emotional connect gradually lose out

to competing brands which are able to use emotional marketing effectively. The success of emotional

marketing is established when customer experiences the product. Once companies are able to deliver

their promise, they can establish a long-time their presence in the consumers’ heart.

When people think of emotional marketing, they are likely to visualize weepy and heartrending

sentiments. However, emotional marketing can also make people smile and even laugh, if they have a

tinge of humor in them. When people laugh, they feel good. If people feel good, while viewing a marketing

communication, they will feel good about the company and its product.

By understanding the target consumers and their needs, one would be better prepared to add value to

one’s product offerings and to satisfy their needs. Choosing the right emotion at the right time for the right

consumers will help in generating better sales revenue. There are many emotions that a company can

use to draw the attention of the target audience. However, one must be careful about customers’ emotion

when communicating promises. The promises should have some positive impact on the consumers’ mind

and heart. Companies should ascertain that the emotions they are incorporating in their communications

are relevant and that the claims they are making about their products and services are truthful.

Finally, emotional marketing is a powerful tool for marketers to attract customers towards their products,

services and brands. It helps marketers to improve customer loyalty and achieve their sales targets. It has

a great impact on customers’ mind. In today’s scenario where there is intense competition, the

companies, that adopt emotional marketing, have an edge over the others who do not. It yields the

desired results and is gaining increasing popularity with marketers.

Consumer behaviour is an attempt to understand & predict human actions in the buying role. It has

assumed growing importance under market-oriented or customer oriented marketing planning &

management. Consumer behaviour is defined as “all psychological, social & physical behaviour of

potential customers as they become aware of, evaluate, purchase, consume, & tell others about

product & services”.

Each element in this definition is important.

Consumer behaviour involves both individual (psychological) processes & group (social

processes).

Consumer behavior is reflected from awareness right through post-purchase evaluation indicating

satisfaction or non-satisfaction, from purchases

Consumer behaviour includes communication, purchasing & consumption behaviour

Consumer behaviour is basically social in nature. Hence social environment plays an important

role in shaping buyer behaviour.

Consumer behaviour includes both consumer & business buyer behaviour

In consumer behaviour we consider not only why, how, & what people buy but other factors such as

where , how often, and under what conditions the purchase is made. An understanding of the buyer

behaviour is essential in marketing planning & programmes. In the final analysis buyer behaviour is one of

the most important keys to successful marketing.

MAJOR FACTORS INFLUENCING BUYER BEHAVIOUR

CULTURAL FACTORS

Cultural factors exert the broadest and deepest influence on consumer behavior. The roles played by the

buyers culture, sub culture and social class are particularly important.

CULTURE- Culture is the most fundamental determinant of a person’s wants and behavior. The

growing child acquires a set of values, perceptions, preferences, and behavior through his or hr family

or other key institutions.

SUB-CULTURE- Sub-culture includes nationalities, religions, racial groups, and geographical

regions. Many sub-cultures make up important market segments, and marketers often design marketing

programs tailored to their needs.

SOCIAL CLASS- Social classes are relatively homogenous and enduring divisions in a society,

which are hierarchically ordered and whose members share similar values, interests, and behavior.

Social classes do not reflect income alone but also other indicators such as occupation, education, and

area of residence.

SOCIAL FACTORS

REFERNCE GROUPS- A Person’s reference groups consist of all the groups that have a direct

or indirect influence on the person’s attitudes or behavior. Groups having direct influence on a person

are called membership groups.

FAMILY- The family is the most important consumer buying organization in society, and has been

researched extensively. Family members constitute the most influential primary reference group.

ROLE AND STATUSES- A person’s position in each group that he participates throughout his life

–family, clubs, and organizations can be defined in terms of role and status. A role consist of activities

that a person is expected to perform. Each role carries a status. Marketers are aware of the status

symbol potential of products and brands.

PERSONAL FACTORS

A buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age &

stage in the life cycle, occupation, economic circumstances, lifestyle, personality & self concept.

AGE & STAGE IN THE LIFE CYCLE- People buy different goods & services over their lifetime.

They eat baby food in the early years, most foods in the growing & mature years & special diets in the

later years. People’s taste in clothes, furniture & recreation is also age related.

OCCUPATION- A person’s occupation also influences his or her consumption pattern. Marketers

try to identify the occupational groups that have above – average interest in their products and services.

A company can even specialize its products for certain occupational groups.

ECONOMIC CIRCUMCTANCES- Product choices are greatly affected by one’s economic

circumstances. Economic stability consist of their spend able income (its level, stability andtime pattern),

saving and assets (including the percentage that is liquid), debts , borrowing power, attitude toward

spending versus saving.

LIFESTYLE- People coming from the same subculture, social class & occupation may lead quite

different lifestyles. A person’s lifestyles the person’s pattern of living in the world as expressed in the

persons activities, interests & opinions.

PERSONALITY AND SELF-CONCEPT- Each person has a distinct personality that influences

his or her buying behavior. By personality, we mean a person’s distinguishing psychological

characteristics that lead to relatively consistent and enduring responses to his or her environment.

Personality can be a useful variable in analyzing consumer behavior, provided that personality type can

be classified accurately and that strong correlations exist between certain personality types and product

or brand choices.

PSYCHOLOGICAL FACTORS

A person’s buying choices are influenced by four major psychological factors-motivations, perception,

learning, beliefs and attitudes.

MOTIVATION- A person has many needs at any given time. A need becomes motive when it is

aroused to a sufficient level of intensity. Motivational researchers hold that each product is capable of

arousing a unique set of motive in consumers.

LEARNING- When people act they learn. Learning involves changes in an individual’s behavior

arising from experience.  Learning theory teaches marketers that they can build up demand for a

product by associating it with strong drives, using motivating cues and providing positive reinforcement.

PERCEPTION- Perception is the process by which an individual selects, organizes, & interprets

information inputs to create a meaningful picture of the world. A motivated person is ready to act. How

the motivated person actually acts is influenced by his or her perception of the situation.

BELIEFS & ATTITUDES- A belief is a descriptive thought that a person holds about something.

Through doing & learning, people acquire beliefs & attitudes. These in turn influence their buying

behavior. Particularly important to global marketers is the fact that buyers often hold distinct disbeliefs

about brands or products based on their country of origin. An attitude is person’s enduring favorable or

unfavorable evaluations, emotional feelings, and action tendencies towards some object or idea. People

have attitude toward almost everything: religion, politics, clothes, music, food, and so on. Attitude put

them into a frame of mind of liking or disliking an object , moving toward or away from it.

Does Marketing of Brand Help? We take guidance from the definition of brand as a promise of value that

is…

1. Unique

2. Relevant

3. Sustainable

These three dimensions of all brands point the way for marketers to create value inside any organization.

Regardless of its role and expectations, marketing will win respect when it is recognized as a contributor

of value that is unique (not generated by any other area, department or function), relevant (supporting

results for the organization) and sustainable (ongoing and lasting).

1. Unique Value

The unique value of marketing is its focus on customers. More than any other function, marketing leads

the way for the organization to understand, attract and keep customers. While by no means an exclusive

domain, marketing is uniquely absorbed with this external focus in holistic terms. Marketing’s contribution

to the organization is to lead the way in customer focus by bringing the customer perspective inside the

organization in ways that build customer equity, which, in turn, is no less than the primary source of equity

for the entire organization.

2. Relevant Value

While the external focus of marketing is unlike most other management disciplines, this unique

perspective will not be valued until marketing can demonstrate its relevancy to the organization as a

generator of earnings in the short term (or revenue increases for nonprofit organizations) and top-line

growth in the long term. Nothing is more relevant to business than results in terms of revenue and profit

growth. Also, marketing enhances its relevancy when it skillfully communicates throughout the

organization the positive consequences of a customer-focused strategy.

3. Sustainable Value

The unique or relevant value of marketing is ultimately of no consequence unless the value is sustainable.

That is, only if marketing can repeat over a long period of time its ability to bring a customer perspective

throughout the organization and generate earnings in the short term and top-line growth in the long term

will the marketing brand win lasting respect.

Marketing must therefore be both a scout to watch for change emerging on the horizon and a vanguard

leading the way to new opportunities. In each of these three dimensions of the marketing brand,

marketers must effectively market their work to internal “customers.” They must recognize that it is the

equity that marketing builds within the organization, rather than the equity that marketing builds with

customers, that often makes the difference between gaining a seat at the strategy table on the one hand

and powerlessness and marginality on the other.