Type: Private Founded: 1994as of Hutchison Essar Headquarters: Mumbai, India Key People: Asim Ghosh – M. D Industry: Telecom Products: Mobile Telecommunication operator Website: Vodafone India Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900Mhz and 1800Mhz digital GSM technology, offering voice and data services in 16 of the country’s 23 licence areas. Ownership Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11. 1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18. 8 billion.The transaction closed on 8 May 2007.
Previous brands In December 2006, Hutch Essar re-launched the “Hutch” brand nationwide, consolidating its services under a single identity. The Company entered into agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007. The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar.
The marketing brand was officially changed to Vodafone on 20 September 2007. In Mumbai, it was earlier known by the name Orange, a brand that used to be marketed by its former owner, Hutchison. Still earlier it was known as Max Touch and AceTel even before that. The cellular service was best during the time of Orange, it got bad during Hutch and contrary to expectations it got worst after Vodafone took over. Apart from a pathetic network service, they are plunging new depths in terms of their promotional messages in Hindi.They are more interested in selling callertunes and ringtones. It’s been one year but we don’t get a feel of using a world class telecom provider.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition exercises in recent times. Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile transition being unveiled today. Along with the transition, cheap cell phones have been launched in the Indian market under the Vodafone brand. There are plans to launch co-branded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that “the objective is to leverage Vodafone Group’s global scale in bringing millions of low-cost handsets from across-the-world into India. ” While there is no revealing the prices of the low-cost Vodafone handsets, the industry is abuzz that prices might start at Rs 666, undercutting Reliance Communications’ much-hyped ‘Rang Barse’ with cheap handsets beginning at Rs 777. Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset offers — rather handset-bundled schemes for customers.Incidentally, China’s ZTE, which is looking to set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India.
Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE. Growth of Hutchison Essar (1992-2005) In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.By the time of Hutchison Telecom’s Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India’s 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held licence applications for the seven remaining licence areas.
In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India – in cities like Mumbai, Delhi and Kolkata.In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User (“ARPU”) than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India’s largest markets providing the resources to expand its footprint nationwide.In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11. 1 billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max 2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition 2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai 003: Acquired AirCel Digilink (ADIL – Essar Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand 2004: Launched in three additional telecom circles of India namely ‘Punjab’, ‘Uttar Pradesh West’ and ‘West Bengal’ 2005: Acquired BPL, another mobile service provider in India Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background.Another recent successful ad campaign in 2003 featured a pug named “Cheeka” following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers. Subscriber Base The Vodafone subscriber base according to COAI – Cellular Operator Association of India as of March 2008 was: • Delhi – 3,216,769 • Mumbai – 3,451,567 • Chennai – 1,174,589 • Kolkata – 1,974,177 • Maharashtra & Goa – 2,610,389 • Gujarat – 6,010,594 • Andhra Pradesh – 2,601,458 • Karnataka – 2,850,346 • Tamil Nadu – 3,180,820 • Kerala – 2,001,133 Punjab – 1,645,501 • Haryana – 1,282,208 • Uttar Pradesh (West) -2,858,429 • Uttar Pradesh (East) -3,508,355 • Rajasthan – 2,934,598 • West Bengal & Andaman and Nicobar – 2,825,310 The total is 44,126,243 or 22.
93% of the total 192,355,939 GSM mobile connections in India till March 2008. VODAFONE MAREKETING TIMELINE 23 November 2007 – Vodafone Surprise winners take home Rs. 1 lakh talktime Vodafone Essar, one of India’s leading telecom service providers, announced the winners of talktime worth Rs 1 lakh through its Vodafone Surprise offer for customers in Haryana. Mr. Pardeep Kumar and Mr.Hajari were declared winners in the first two weeks of the offer. Each of the winners gets free talktime worth Rs 1 lakh. 28 November 2007 – New Vodafone Store launched in Baroda Vodafone Essar, one of India’s leading cellular service providers has announced the launch of its fifth Vodafone Store in Baroda.
The new store aims to deliver a complete Vodafone experience to our customers. 03 December 2007 – Vodafone launches Sambhav Card for special customers on World Disability Day Vodafone Essar, one of India’s leading cellular service providers, today on the occasion of World Disability Day, announced a unique prepaid Sambhav Card at Rs. 51 for customers with hearing and speech disability. This card enables them to use the phone purely for SMS purposes. 10 December 2007 – Vodafone Essar agrees to IT outsourcing deal with IBM Vodafone Essar is to outsource the management of all its back office IT operations to IBM India in a deal designed to boost efficiency and further enhance its service to customers. 12 December 2007 – Vodafone launches extended validity for Rs 199 customers in Andhra Pradesh Vodafone Essar, one of India’s leading cellular service providers, has announced extended validity at Rs 199 for its new and existing prepaid customers in Andhra Pradesh.
With this offer, Vodafone customers in the state can avail of seven months validity as against the earlier two months validity on recharging with Rs 199. 18 December 2007 – Vodafone crosses four million subscribers in West Bengal Vodafone Essar, the largest cellular service provider in West Bengal, today announced that it has crossed the landmark of four million subscribers in the state and has maintained its position of being the largest operator in West Bengal. Vodafone has maintained a high subscriber growth rate along with extensive penetration in the interiors of West Bengal.
0 December 2007 – Vodafone offers special benefits for Sabarimala pilgrims from Tamil Nadu Vodafone Essar, one of India’s leading cellular service providers, has announced special services for its prepaid customers in Tamil Nadu traveling to Sabarimala. 26 December 2007 – New Vodafone Store launched in Purulia Vodafone Essar, one of India’s leading cellular service providers has announced the launch of its Vodafone Store in Purulia district in West Bengal. The new store located at B. T.
Sarkar Road -Bhyawani Complex, aims to deliver a complete Vodafone experience to customers. 1 December 2007 – Vodafone offers two unique prepaid recharge options for the festive season Vodafone Essar, one of India’s leading cellular service providers has announced two special prepaid recharge offers for its customers in Chennai and Tamil Nadu, to celebrate the festive season. 03 January 2008 – Vodafone announces the winner of Jhumo aney Jeeto contest Vodafone Essar, one of India’s leading telecom service providers, announced Mr Vishal Ruparel from Junagarh as the winner of its Jhumo aney Jeeto contest. The winner took home an Alto car as the grand prize.Vodafone had organised this contest during the festive season of Navratri for its prepaid and postpaid customers in Gujarat. 03 January 2008 – Vodafone customers can get bonus recharges through SMS Vodafone Essar, one of India’s leading cellular service providers, has launched bonus recharge through SMS facility for its customers in Tamil Nadu. Vodafone is the first service provider to launch this service in the state. 08 January 2008 – New Vodafone Store launched in Kukatpally Vodafone Essar, one of India’s leading cellular service providers has announced the launch of one more Vodafone Store in Hyderabad.
The new store at Kukatpally aims to deliver a complete Vodafone experience to customers. This takes the strength of Vodafone stores in the city to 24. 14 January 2008 – Vodafone offers all local calls at Re1/minute Vodafone Essar, one of Indias leading cellular service providers, today announced that its customers can now make local calls at Re 1/minute within their circle. 14 January 2008 – Vodafone Self Service Kiosk launched in Kannur Vodafone Essar, one of India’s leading cellular service providers has announced the launch of its first Self Service Kiosk in Kannur.The new kiosk is a first-of-its-kind, easy to use kiosk, with a touch screen device and will provide a 24X7 customer service interface to all Vodafone customers. 24 January 2008 – Vodafone Classic Film Festival 2008 premiers in Ahmedabad Vodafone, one of India’s leading cellular service providers, brings to you the Vodafone Classic Film Festival in Ahmedabad at Fun Cinemas from January 25 to 28, 2008.
The theme for this year’s festival is classic comedy. 5 January 2008 – Take off on a Holiday with Vodafone Vodafone Essar, one of India’s leading cellular service providers has announced its tie up with Travel Port, one of India’s largest networks of travel brands, content and service offerings. This exclusive offer Holiday with Vodafone is for new postpaid customers in Andhra Pradesh. 31 January 2008 – Vodafone Classic Film Festival 2008 premiers in Surat Vodafone, one of India’s leading cellular service providers, brings to you the Vodafone Classic Film Festival in Surat at Valentine from February 1 to 3, 2008.The theme for this year’s festival is classic comedy. 11 February 2008 – Vodafone launches Vodafone Tuesdays Vodafone, one of India’s leading cellular service providers introduces Vodafone Tuesdays wherein Vodafone customers can enjoy the exclusive scheme of getting two movie tickets for the price of one. 14 February 2008 – Vodafone organises a karaoke festival in Hyderabad this Valentine’s Vodafone Essar, one of India’s leading cellular service providers, will organise a live karaoke festival this year on Valentine’s Day in Hyderabad.
With this initiative, Vodafone will make the day special for all participants by giving them a chance to sing to their Valentine. The event is being organised in association with 93. 5 FM. 18 March 2008 – New Vodafone Store launched in Barackpore Vodafone Essar, one of India’s leading cellular service providers has announced the launch of its Vodafone Store in Barackpore, The new store located at Shop No. 22 and 23, 56/27 S. N. Banerjee Road, aims to deliver a complete Vodafone experience to customers.
Future Vision The future is unfolding around us.Over the next decade we will be able to see all sorts of differences that we can barely imagine today. In the Vodafone Future Vision Website you can explore what we think that future might look like, experience some of the changes we believe will happen, and tell us what you think of them. Vodafone is working hard to mobilize tomorrow’s world, but we need your input.
You are our partners in innovation, helping to shape a future that offers the mobile services we want, and brings us closer to the people we care about, wherever they are in the world.Together we can build a future that turns this vision into reality. Vodafone motto “We will be the communications leader in an increasingly connected world. ” GOALS “We will be the communications leader in an increasingly connected world. ” Vodafone Group Plc is the world’s leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company’s subsidiary undertakings, joint ventures, associated undertakings and investments.
The Group’s mobile subsidiaries operate under the brand name ‘Vodafone’. In the United States the Group’s associated undertaking operates as Verizon Wireless. During the last two financial years, the Group has also entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Network Agreements, the Group and its partner networks co-operate in the development and marketing of global services under dual brand logos.
At 31 March 2008, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 260 million customers, excluding paging customers, calculated on a proportionate basis in accordance with the Company’s percentage interest in these ventures. The Company’s ordinary shares are listed on the London Stock Exchange and the Company’s American Depositary Shares (‘ADSs’) are listed on the New York Stock Exchange. The Company had a total market capitalisation of approximately ? 9 billion at 31 December 2007. Vodafone Group Plc is a public limited company incorporated in England under registered number 1833679. Its registered office is Vodafone House, The Connection, Newbury, Berkshire, RG14 2FN, England. WHAT WE DO? Products and Services We offer our voice, messaging, data and fixed broadband services through many devices and supporting technologies.
Use of our data services continues to grow, driven by advances in our 3G networks and handset capabilities. Voice services are the largest part of our business.We offer our customers a wide range of innovative tariffs and services for use at home, in the office and while travelling.
Vodafone At Home Quick Stats: 4. 4 Million Customers Available in most European markets. Vodafone At Home includes a number of offers designed to meet all your home communications needs through a single device, now available in most European markets. With zonal tariffs, you can make reduced rate calls within your home area to fixed numbers and defined mobile networks, offering the value of a fixed line with the freedom of a mobile.You can also take out a subscription for unlimited calling to fixed line numbers from your mobile, reducing the need for fixed line devices and allowing cheaper calls when on the move. Vodafone Office Quick Stats: 3 Million customers Zonal tariffs available in some European markets Closed user tariff available Vodafone Office is the umbrella name for a series of products and services designed to meet all our business customers’ communications needs. With Vodafone Wireless Office, companies can transfer voice minutes from a fixed line to the mobile network, reducing the need for fixed desk phones.
Existing fixed line and extension numbers can be assigned so that all calls are easily transferred to your mobile. A closed user group tariff is available allowing employees to call each other for a flat monthly fee. In Germany, Spain, Greece, Italy and Portugal, location based zonal tariffs allow preferential rates when calling from the office. Geographic numbers enable increased fixed to mobile substitution, allowing you the freedom to use a single mobile phone in and out of the office.
Vodafone Passport Quick Stats: 17. 5 Million customers Simpler roaming tariffsNo charge calls with one off connection fee per call Vodafone Passport makes it possible for your home tariff to travel with you, offering better value and simplicity when you go abroad. With Vodafone Passport, you know exactly what the charges will be when you use roaming services, and in some cases Vodafone Passport includes free minutes bundles and the option to receive calls at no cha Our services are accessed on a wide range of handsets, the Vodafone Mobile Connect card with 3G broadband and the Vodafone Mobile Connect USB modem.
Handsets Quick Stats: 75 New models launched in the 2008 financial year 3% of handsets sold were 3G models 10 Million Vodafone own-brand devices shipped in 30 countries Our handset portfolio ranges from handsets for our core voice services, to premium multimedia devices and includes a range of low-cost Vodafone handsets for the emerging markets. Vodafone live! handsets Our customers access 3G services on a range of handsets including the exclusive Sony Ericsson V640i and an exclusive Mobile Internet version of the Nokia 6120c. Our higher speed HSDPA mobile broadband services are also available to subscribers on mid-priced handsets.Our ‘Internet on Your Mobile’ services are available on a selection of handsets customized for internet experience, including high-end devices like the Nokia N95 8GB, Sony Ericsson W910i and Samsung SGH-F700V QBowl. The Vodafone 125 and Vodafone 225 were the first ultra low cost handsets under the Vodafone brand, and the lowest cost mobile phones we have ever launched. Business handsets We are always expanding our range of business handsets.
Our exclusive devices include the Palm Treo 500v and the BlackBerry® Curve™ 8310 Smartphone. Both offer business email combined with Vodafone live! ervices, such as Google Maps, internet browsing and instant messaging. In addition, the BlackBerry 8100 series and the BlackBerry 8110 series continue to be in demand along with the Nokia E series range. Vodafone Mobile Connect The Vodafone Mobile Connect card with 3G broadband offers enhanced speeds which can be up to 7. 2 Mbps downlink and up to 2. 0 Mbps uplink through HSPA technology. Built-in 3G broadband from Vodafone is now available across a portfolio of 44 laptop models. Our partners Acer, Dell, HP and Lenovo fit a Vodafone SIM to their laptops which include a built-in modem.
We have a range Vodafone Mobile Connect USB modems with exclusive designs, including USB sticks, all benefiting from “plug and go” software, making them easy to use for consumers and businesses We offer a number of products and services to enhance our customers’ access to data services, including Vodafone live! for consumers as well as a suite of products for business users such as Vodafone Mobile Connect data cards and internet-based and corporate email solutions. Vodafone live! – Internet on Your Mobile Quick Stats: 2 Million customers Simple and secure browsing of online servicesUnlimited browsing tariff available Vodafone live! Offers 750,000 songs Vodafone live! Includes selection of latest games on handsets Mobile TV has an average of 850,000 subscribers a month “Internet on your Mobile” offers easy to use and secure browsing, including Google search, an unlimited browsing tariff and access to some of the most popular online services. You can use your mobile to access and update your social networking profiles, view and upload YouTube videos, buy and sell items on eBay, and check locations on Google Maps.
You can also chat to friends easily with Yahoo! nd MSN instant messaging using an easy to use dedicated interface. Using the new Vodafone live! mobile and PC music player you can search for music, artist pages and previews from a catalogue of more than 750,000 songs. Music from some of the world’s greatest artists is available, with music secured from agreements with major record labels such as Sony BMG Music Entertainment, EMI, Universal Music, Warner Music, as well as independent music labels. Mobile TV offers an average of 20 channels from both local and international broadcasters.Vodafone has local agreements with broadcasters, such as the BBC, ZDF, RAI, Pro-Sieben, Channel 4 and RTL, as well as international broadcasts from HBO, Fox, NBC Universal, Warner Brothers, UEFA Champions League, Vodafone McLaren Mercedes and MTV, ensuring diverse and relevant mobile content. Vodafone Mobile Connect Quick Stats: 2. 7 Million customers Built-in 3G broadband on 44 laptop models 7. 2 Mbps down and 2.
1 Mbps up using Vodafone Mobile Connect card with HSPA technology Vodafone Mobile Connect enables you to access the internet on your laptop or PC via Vodafone Mobile Connect data cards or Vodafone Mobile Connect USB modems.Business customers can access services such as email, corporate applications and company intranets using the service. Vodafone Mobile Connect card: You can enjoy built-in 3G broadband from Vodafone across 44 laptop models, including Vodafone’s partners Acer, Dell, HP and Lenovo. Everything you need to make an internet connection from your computer using a mobile network is installed and configured, allowing you to work on the move. The Vodafone Mobile Connect card with 3G broadband offers enhanced speeds which can be up to 7. 2 Mbps downlink and up to 2. 0 Mbps uplink by utilising HSPA technology.
Vodafone Mobile Connect USB modems: There are a range of Vodafone Mobile Connect USB modems with exclusive designs. The USB modems are “plug and play” compatible, allowing for a fast set up and making the device easy to use. Vodafone is here: Hutch is now Vodafone 19 September 2007 [pic]Mumbai, September 19, 2007: Vodafone, the world’s leading international mobile communications company, has fully arrived in India.
Vodafone Essar announced today that the Vodafone brand will be launched in India from 21st September onwards. The popular and endearing brand, Hutch, will be transitioned to Vodafone across India.This marks a significant chapter in the evolution of Vodafone as a dynamic and ever-growing brand. The brand change over the next few weeks will be 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. Asim Ghosh, Managing Director, Vodafone Essar, said “We’ve had a great innings as Hutch in India and today marks a new beginning for us.Not as a departure from the fundamentals that created Hutch, but an acceleration into the future with Vodafone’s global expertise. ” Harit Nagpal, Marketing and New Business Director, Vodafone Essar, said, “This transition 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 our own previous brand transitions as it touches over 35 million customers, across 400,000 shops and thousands of our own and our business associates’ employees. 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 true representation of that belief – The start of a new conversation, a trigger, a catalyst, a mark of true pioneering. About Vodafone Essar Limited Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai.Vodafone Essar now has operations in 16 circles covering 86% of India’s mobile customer base, with over 34. 1 million customers*.
Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective Advertiser of the Year’. Vodafone is the world’s leading international mobile communications company. It now 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 (US$ 10 billion) and employs over 20,000 people.
Business Principles Our Vision and Values guide the way we act. Our Vision is to be the world’s mobile communication leader – enriching customers’ lives, helping individuals, businesses and communities be more connected in a mobile world.Our Values are about how we feel – in other words the Passions that make us the company we are. One of our four corporate Values is ‘Passion for the world around us’: “We will help the people of the world to have fuller lives – both through the services we provide and through the impact we have on the world around us. ” At the start of 2002, we introduced a set of ten Business Principles to make our Vision and Values happen. These define our relationships with all our stakeholders and govern how Vodafone conducts its day-to-day business. Our Business Principles apply to all Vodafone operating companies (majority owned businesses).
We also promote the Principles to our associate companies (where Vodafone holds a minority stake) and business partners. Chief Executives are responsible for ensuring application of the Principles within their business. Every employee is expected to act in accordance with the Business Principles. If employees have concerns about the application of the Principles, they can ask their local human resources managers for further advice, or contact the Group Human Resources Director or the Group Audit Director. We are incorporating training on our business principles into our employee induction process.Internal audits in 2002-03 show they have been communicated to over 90% of employees.
Responsible Marketing Responsible marketing means making sure our communications are always legal, decent, fair, honest, truthful and sensitive to the views of different groups in society. Responsible Marketing Guidelines Our Responsible Marketing Guidelines – updated in 2008 – set out standards for all Vodafone marketing and joint marketing with other brands. They cover advertising, direct marketing, point-of-sale material and also third-party mobile advertising on the Vodafone network.All our operating companies must comply with the guidelines, in addition to relevant national regulations and codes.
To ensure our marketing is consistently responsible across the Group, we must ensure that marketing teams are aware of the Guidelines and understand potential local concerns in individual markets. We have developed a responsible marketing checklist to help our marketing teams and creative agencies identify any potential issues when developing advertising campaigns. The main areas covered by the guidelines include: Ensuring Vodafone marketing material complies with local law, marketing and advertising codes and self regulatory bodies • Digital marketing – we apply the same standards to digital media marketing as to traditional media • Portraying our products and services accurately and substantiating any comparative claims. Our operating companies assess their communications and advertising material periodically to confirm that it complies with the Responsible Marketing Guidelines. The assessments are signed off by the chief marketing officer of each operating company. Complaints are sometimes made about our dvertising.
We monitor these complaints as a measure of our performance. Cutting out the small print Insufficiently clear pricing and extensive small print can affect the level of trust our customers place in Vodafone and the service packages we offer. Our global strategy is to progressively reduce the amount of small print in our advertising. Vodafone Romania put this into practice with a fun ‘no asterisk’ advertising campaign in 2006/07.
Promotion details were laid out clearly, simply and prominently in all advertising material, eliminating the need for small print.In the Czech Republic, a ‘no small print’ campaign was launched entitled “No flea text. No hidden hooks”. In Germany, we reduced the amount of small print by around 40% in 2006/07.
Our People We rely on our people – their enthusiasm, their talent, their commitment – to maintain and build on the success of our business, even more so in today’s competitive market. We depend on our people to deliver excellent service to our customers. We believe that the better experience our people have at Vodafone, the better service they will give our customers.Vodafone Group employs approximately 71,000 people around the world. * We want to enhance our reputation as an employer that provides excellent development opportunities, equipping employees with the skills and experience they need to help Vodafone compete successfully. We aim to ensure that all our working environments are inclusive, safe, promote wellbeing, treat people with respect, engage employees, and offer attractive incentives and opportunities. Vodafone People Strategy The Vodafone People Strategy sets out a clear statement of our commitments to employees and our expectations of them in six key areas. pic] This strategy, together with our Group employment policies, sets out a global framework for employee engagement.
We are committed to upholding human rights and our employee policies are consistent with the UN Universal Declaration of Human Rights and the International Labour Organization’s Core Conventions. Our People Strategy applies across the Group, but local operating companies have the flexibility to adapt their human resource policies and practices to suit local cultural differences and legal requirements.We are implementing a Group-wide project that will enable all our local operating companies to share a common human resources system, core processes and operating model. Communication and involvement Informed and engaged employees are essential for our business to operate effectively.
We communicate our business strategy and new developments to our people and engage with them to gain feedback on how we are doing as an employer. This also helps to create a sense of global community across the Group. Internal communicationsEmployee engagement is an important part of Vodafone’s business strategy. We have a Board level representative responsible for promoting effective dialogue with our people. We use our own products and services to communicate with employees, including SMS, video clips and mobile intranet sites.
This improves knowledge of our products and services, and helps reinforce our total communications strategy. A key focus in 2007/08 has been informing and engaging our employees on our total communications strategy.This included: • A series of 10 podcasts to help senior managers understand the concepts behind total communications • Twelve webinars (seminars on the web) open to all employees, covering topics such as mobile advertising, convergence, social networking and mobile internet • An internal wiki where employees can read news and updates and engage in dialogue.
Other internal communication channels at Group level include: • Group intranet • Online videos, including monthly video-casts from the Chief Executive • Wikis and webinars • Vital, an online news hub updated daily VGS News, a monthly email news bulletin • Internal TV channel • Induction packs for new employees. Local operating companies also run their own internal communications programmes. Corporate responsibility messages are included in our internal communications to employees, see Internal Communications and Awareness. Employee engagement We engage with our people informally every day, through team meetings and discussions with immediate managers.
All employees have access to our intranet site, with around 30% of our employees using it every day. We are increasingly using the intranet for online discussions and engagement.We have more than 450 internal blogs and wikis, which receive around 3,500 visits per month. We share information with colleagues through over 8,000 online team rooms, used by over 45,000 people. Monthly messages from the Chief Executive Officer, Arun Sarin, using a wiki platform, ‘Arun’s channel’, and video-cast help our people understand how we are progressing against our company goals and provide an opportunity to give feedback directly to the CEO.
Since its launch in February 2008, Arun’s channel has received more than 35,000 individual hits and 100 responses from employees.We plan to make the channel available via mobile internet. We hold regular ‘Talkabout’ sessions at our local operating companies where the CEO and members of the executive team meet with employees in person. This enables them to discuss our business strategy with employees and listen to their feedback about the business and the issues that matter most to them. Around 5,000 employees attended these sessions in 2007/08. We also engage with employees more formally through the Vodafone People Survey and their annual performance dialogues with line managers.We conduct a full Group-wide People Survey every year, to obtain feedback from our people on key issues and measure employee engagement. It also helps us identify opportunities to improve working environments and practices, and to support employees so they can do their best work.
See Communication and involvement: performance 2007/08 for details on the results of the latest survey. We consult employees on changes to the business and other issues that affect them through the Vodafone European Employee Consultative Council.Some local operating companies also consult recognised trade unions. Learning and development We provide training for our employees to develop new skills and opportunities to gain new experiences. This helps them reach their full potential and benefits our business. Online training We have a catalogue of more than 70 online training courses on a wide range of subjects related to specific aspects of the business or key skill sets. These include: • Communicating for impact – business writing, giving presentations, managing meetings, negotiation skills • Putting customers first Delivering results – budgets, objectives, project management • Making a personal difference – self-development, mentoring and time management • Managing a changing environment – decision making and problem solving • Performing through our people – delegation, team building, leadership, facilitation • IT – how to use specific computer programmes. We are integrating corporate responsibility into our training programmes and induction courses.
Online courses include related subjects such as anti-corruption and privacy training.We also use online webinars (web seminars) and wikis to inform employees about key business strategies, embedding our commitment to total communications. Performance dialogues All employees complete an annual performance dialogue with their line manager, enabling them to review their performance annually and set clear goals and development plans for the year ahead. The process ensures our people can make a clear connection between their goals and Vodafone’s business objectives. See details on our performance 2007/08. Promoting leadership We use our Leadership Framework to help us recruit and promote leaders within the company.
We are evaluating our most senior managers against the framework. In 2007/08, 80% of our senior leaders participated in our workshops on Leading High Performing Teams. These are designed to build their awareness of leadership style and working culture. Our development initiatives emphasise the role of local operating companies in tailoring development support to individual needs. For example, Vodafone Spain “One Way” professional development programme for managers includes training on team management and engagement, creating a culture of co-operation and effectively executing strategic goals.In 2007/08, a performance reporting tool was launched to keep individuals up to date on their progress. One Way has contributed to improving employee perceptions of the coaching and feedback they receive from managers. Inspire programme Inspire is a global programme designed to identify and develop high potential employees and accelerate their progression into leadership roles.
Participants take part in a three-month international rotation and receive commercial training and personalised leadership development through Imperial College, Oxford Said Business School and the Hay Group.They also gain from exposure to and learning from members of our Executive Committee. The programme promotes cross-cultural understanding within Vodafone and encourages employees to take advantage of the breadth of experience across the Group.
Inspire launched in May 08 and replaced our Global Rotation programme. Promoting career opportunities within Vodafone We want people to develop at Vodafone and promote recruitment from within. This encourages people to progress their careers within the company, either through promotion or a change of role to broaden their experience.All vacancies across Vodafone are advertised on the job-posting page of our global intranet, which encourages the transfer of talent across the Group. Equal opportunities and diversity We believe employee diversity is an asset to our business – men and women of various ages from different backgrounds and cultures with a range of different experiences help us understand and serve our customers around the world. Our equal opportunities policy states that Vodafone does not condone unfair treatment of any kind and requires employees to act with integrity nd respect for their colleagues and customers. We are building a culture that respects the value of differences among us and encourages individuals to contribute their best within an environment that is inclusive, open, flexible and fair. We will not tolerate discrimination or unfair treatment on any grounds.
We are committed to helping talented people from diverse backgrounds meet their potential at all levels of the company. Cultural diversity With operations worldwide, Vodafone is not only multinational but multicultural.We encourage our managers to gain experience working in different countries and almost half our senior managers have international experience. International rotation is a key part of our new Inspire programme for employees with high potential. See Learning and development. Gender diversity We have a strategy in place to improve gender diversity. This includes carrying out senior leadership training on inclusion and diversity.
We intend to develop action plans to build a more inclusive culture over the next three to five years (see target in performance 2007/08).We also recognise that women can often be more affected by family commitments than men and encourage flexible working to help employees balance their work with their family commitments. Employees with disabilities We are conscious of the difficulties experienced by people with disabilities, and make every effort to ensure access to the Group’s facilities and services.
Disabled people are assured of full and fair consideration for all vacancies for which they offer themselves as suitable candidates. We do our best to meet their needs, particularly in relation to access and mobility.Where possible, modifications to workplaces are made to provide access for the disabled. Every effort is made to continue the employment of people who become disabled during their employment, through the provision of additional facilities, job design and appropriate training. Reward and recognition Vodafone offers competitive and fair rates of pay and benefits to attract and retain the best employees. Competitive rates of pay and benefits vary in each local market where we operate. We want to ensure that our people feel their efforts are recognised and their rewards are connected with their performance.
We monitor employee views of the compensation packages we offer through our annual Vodafone People Survey (see performance 2007/08). Rewarding performance We are implementing a range of initiatives that reward our employees based on their contribution to the success of the business. The annual bonus plan for all our global managers, which covers approximately 4,500 employees, includes an individual performance element measured over the year and assessed through our global performance dialogue process.Most of our local operating companies offer employees not covered by the global bonus plan the opportunity to participate in local plans that reward their performance. Our Global Long Term Incentive (GLTI) Plan awards shares based on an assessment of an individual’s potential, future performance and their business criticality in supporting the delivery of Vodafone’s strategy. Share plans We offer a variety of share plans as an incentive for our employees to stay at Vodafone. Our global AllShares Plan is designed to ensure everyone in the Company has a stake in our success.All permanent employees are made an award of shares on the condition that they remain at Vodafone for a further two years.
Our communications with employees about share plans have been recognised externally. Vodafone received the ifs ProShare award for most effective communication of an employee share plan in 2007, and awards from the Global Equity Organisation for best share plan communications in 2006 and 2007. Benefits Each of our local operating companies offers a competitive range of benefits for employees. The benefits packages offered are determined by local legislative and tax requirements and industry benchmarks.Depending on the location, we offer benefits such as life assurance, accident insurance, private medical insurance, subsidised mobile phones, and service and retirement benefits. Retirement benefits are provided through a variety of arrangements, including defined benefit and defined contribution schemes. These vary depending on the conditions and practices in the countries concerned such as local market practice, taxation, legislation and the quality of the state’s pension.
Vodafone’s marketing mix A longer term marketing strategy is underpinned by careful planning and a successful marketing mix.The marketing mix is a combination of many features that can be represented by the four Ps. • product – features and benefits of a good or service • place – where the good or service can be bought • price – the cost of a good or service • promotion – how customers are made aware of a good or service. Product • A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information – and soon view video clips and send video messages.
Vodafone live! provides on-the-move information services. Place • Vodafone UK operates over 300 of its own stores. • It also sells through independent retailers e. g. Carphone Warehouse. • Customers are able to see and handle products they are considering buying.
• People are on hand to ensure customers’ needs are matched with the right product and to explain the different options available. Price • Vodafone wants to make its services accessible to as many people as possible: from the young, through apprentices and high powered business executives, to the more mature users. It offers various pricing structures to suit different customer groups. • Monthly price plans are available as well as prepay options.
Phone users can top up their phone on line. • Vodafone UK gives NECTAR reward points for every ? 1 spent on calls, text messages, picture messages and ring tones. Promotion Vodafone works with icons such as David Beckham to communicate its brand values. Above the line • Advertising on TV, on billboards, in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively. This is known as above the line promotion.Below the line • Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy. • Vodafone’s stores, its products and its staff all project the brand image. • Vodafone actively develops good public relations by sending press releases to national newspapers and magazines to explain new products and ideas.
Vodafone’s marketing strategy Vodafone’s marketing aim in the UK is to retain market leadership. Vodafone’s strategy is product-led; the company is continually developing new products and services which utilise the latest technological advances.However, as consumers become increasingly sophisticated users of modern mobile technology, they make new demands and seek added value through product improvements. Consumers are becoming more demanding and suppliers have to listen. Vodafone must feed this back into its product strategy.
In the UK, the mobile phone market has approached maturity in a very short space of time, particularly with young people. To keep its leading edge, Vodafone is continually looking to add value to the services it provides and to the packages it offers to customers.Soon, within the UK, there will be few new customers available.
So the challenge is to provide added value services and competitive charges to existing customers who are becoming more sophisticated and demanding. For example, young people think hard about which mobile phone to buy. In their search for the widest range of appropriate services and the best value for money, young people in particular examine catalogues, surf the Internet and study what their friends have bought. Trying to sell to them is tough.
In order to retain market leadership, Vodafone has established a set of marketing objectives. These are to: • obtain new customers • keep the customers it already has • introduce new technologies and services (eg text messaging, WAP) • continue to develop the Vodafone brand. Vodafone is achieving these objectives by continually updating the range of phones and services offered to keep ahead of its competitors. Vodafone also communicates regularly with its customers to keep them well informed of the benefits of all Vodafone products.