• Agreed levels of service are detailed in the SDP
• Features and acceptance criteria are created for new product development
The ITIL 4 key message of ‘To support the holistic approach to service management, ITIL defines four aspects that collectively are critical to the facilitation of value for customers 5 ’ can also be mapped to Vodafone Business activities, as shown in Table 5.2.
Organizations and people | • A holistic view of the areas impacted was taken in the creation of the MVS • A more solid service relationship between the traditionally siloed areas of Operations, Service design, and Deal governance was created • The first iteration of MVS design highlighted a number of skills gaps, with improvements necessary to better meet customer expectations |
Information and technology | • The Vodafone Business ITSM Tooling strategy and feature development has a direct impact on optimizing the new operating model • Information and knowledge are captured in SDPs, which reside within a structured Microsoft SharePoint repository |
Partners and suppliers | • Internal partners and suppliers have become an integral part of the development and maintenance of the MVS • The continual feedback and input from partners and suppliers help to keep the MVS up-to-date and relevant |
Value streams and processes | • Existing standards and processes that form part of the MVS were reviewed • The processes that form part of the MVS were created or updated • The internal service model framework now aligns to the ITIL 4 value stream approach • Value streams are visible in the BAU MVS model |
1. Axelos, Continual Improvement ITIL 4 Practice Guide 2. Axelos. 2019. ITIL® Foundation: ITIL 4 Edition. p195. TSO. 3. Axelos. 2019. ITIL® Foundation: ITIL 4 Edition. p194. TSO. 4. Axelos. 2019. ITIL® Foundation: ITIL 4 Edition. p195. TSO. 5. Axelos. 2019. ITIL® Foundation: ITIL 4 Edition. p24. TSO. |
At a high level, in creating the MVS, the VBCO actions were as follows:
At a more detailed level, the MVS development included many aspects of the ITIL 4 service value system (SVS), as shown in Table 6.1.
Opportunity/demand | • MVS improvement opportunities are highlighted by service providers • Demand is raised by service consumers for additions or changes to be made to the MVS |
Value | • Value is delivered to internal consumers in the form of efficiencies in their day-to-day roles • Value is delivered to customers in speedier time to market for new products and quicker responses to RFPs • Value is delivered to operational teams because they can rely on other groups to deliver against set standards and policies, bringing further efficiencies |
Guiding principles | • Focus on value: VBCO focused on delivering the MVS content that delivers the most value to stakeholders • Start where you are: the MVS reused all existing policies, standards, processes, and procedures as a starting point • Progress iteratively with feedback: an agile/sprint-based approach was taken that focused on specific capabilities, releasing content as the project progressed • Collaborate and promote visibility: there was direct collaboration with all capabilities and other internal stakeholders and consumers to understand the requirements for the MVS • Think and work holistically: the MVS scope reaches across all aspects of service delivery, including Service design, Customer deals, Transition, and Operations • Keep it simple and practical: the MVS content is designed to be straightforward to use so that stakeholders and consumers can work effectively • Optimize and automate: MVS development highlighted where automation and optimization could occur through the Vodafone Business IT&SM tooling strategy |
Continual improvement | • The MVS delivery programme is an ongoing CSI initiative • A structured CSI capability exists within VBCO • The CSI (continual improvement, in ITIL 4 terminology) practice is part of the MVS model |
Practices | • The VBCO MVS content is supplied by 15 ITIL-aligned practices • Practices support the end-to-end delivery of Vodafone Business products and services |
The first phase of creating an MVS library was completed. The 15 capabilities that represent the standard service model are available in a central repository available to Vodafone teams across the business.
Value has been created for internal service consumers from MVS content as follows:
External customers (consumers) will benefit when the MVS is embedded within the organisation and is applied fully to products and services. It is at this point that full value co-creation will be realized.
Vodafone Business’s MVS development journey is still ongoing and the refinement of the model continues. Some of the benefits realized so far include that:
The MVS will be embedded into Vodafone BAU practices. A set of workstreams has been initiated to test the MVS and the associated content. These workstreams will ensure that the MVS can be used and the benefits maximized. An operating model has been developed to ensure that the MVS is maintained and governed.
Vodafone will adopt and adapt the ITIL 4 service value chain approach to manage this MVS operating model going forward. Continual feedback on MVS content and how it is used in a practical sense will further test its validity and ensure that it is kept up-to-date and relevant.
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Home » Management Case Studies » Case Study on Vodafone’s Re-Branding Strategies in India: Hutch to Vodafone
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.
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.’
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.
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.
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’.
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.
A few advertisements include:
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Please note you do not have access to teaching notes, vodafone marketing communications.
Publication date: 17 October 2012
Subject area.
Integrated advertising, promotion and marketing communications.
The case has been developed for use in marketing communication as well as strategic brand management courses of MBA and/or PGDM programmes. It high/ights the fact that generating interest amongst customers is not the only task of marketing strategists but conversion of such interest into an effective purchase is what the marketing department should be looking for.
The case takes the students through the journey of Vodafone's marketing communication since its introduction in the Indian market. It gives the reader a briefing as to how Vodafone has grown in the past few years - the changes in communication strategies involved to propagate the product; the integrated marketing communications that have he/ped Vodafone increase its customer base considerably. As mentioned by Marten Pieters, CEO of Vodafone Essar, India is an emerging market and it is necessary for Vodafone not on/y to increase its customer base but a/so to generate revenues. Therefore, his di/emma is how to bring about the perceptual connect with customers which induces them into product usage.
The area of integrated advertising, promotion and marketing communications is an integral part of marketing. It forms the foundation of creating effective marketing programmes that in turn helps develop positive product perception in the minds of the customers. It also helps the student understand the role of customizing the marketing communication according to the target audience and the importance of integrating advertising with not only the promotional activities but also other newer forms of marketing communications. The case has been structured to achieve the following learning objectives: the role of marketing communications in creating and building brand Vodafone; understanding the importance and key elements of Vodafone's Zoozoo ad campaign relating it to Vodafone's communication strategies; and the effect of marketing communication on the customers' perception about the brand.
Teaching notes are available. Please consult your librarian for access.
This teaching case has been developed from both primary and secondary sources of information. The author wishes to thank the management of Vodafone for providing access to information and talk with senior executives. The secondary sources generally refer to the company's websites, articles appearing in trade journals and newspapers, TRAI (telecom Regulatory Authority of India) reports, company's product literature, advertisements in media, etc. Some of these are mentioned under the section Sources of Information. The development of this teaching case study has been facilitated by Bimtech Center for Management Case Development at Birla Institute of Management Technology, Greater Noida (India).
Kumar, N.N. (2012), "Vodafone marketing communications", , Vol. 2 No. 8. https://doi.org/10.1108/20450621211304298
Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited
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