Reference no: EM133527935
Assignment:
CASE STUDY
Vodafone has been extremely successful, from the beginning, in capturing the mind share of Indian consumers with their attractive advertisements; adorable mascots - ''Hutch'' pug, zoozoo's; the story telling behind the changes in the logo; the brand name. As per the data available on the customer base growth, Vodafone has been quite successful in its marketing communication strategy. But the dilemma of Marten Pieters, CEO, Vodafone Essar Ltd, is that despite this, the usage rate is low. Customers happily purchase the connection but are very stringent as far as using the services are concerned. Vodafone, therefore, needs to rethink and rede?ne the marketing communication approach.
Company background
Vodafone Essar formerly known as Hutchison Essar, is a Mumbai-based Indian subsidiary of Vodafone group. The company has operations in India with over 152.664 million customers. It is the second largest mobile operator in terms of revenue share, after Bharti Airtel, holding a revenue market share of 20.6 percent, and the second largest in terms of subscribers' base.
Vodafone started its Indian operations in 1994 with the brand name Max Touch which was renamed to Orange in the year 2000, followed by ''Hutch'' in 2006. The company initially established its business in the major metropolitan cities, namely Mumbai, Delhi and Kolkata. Soon it was able to establish a robust network, well-known brand and large distribution network in these densely populated urban areas, targeting business users and high-end post-paid customers.
Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67 percent direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately $11.1 billion. The marketing brand of Hutch was of?cially changed to Vodafone.
All through the journey of its growth in India, Vodafone Essar, has followed a well thought and carefully crafted communication propositions.
The regular changes in the brand were beautifully integrated into all its communication, thus enhancing the personality of the brand.
- Is a strong brand identity on its own a source of sustainable competitive advantage?
- To what extent must this be backed up by real product features?
Please give in depth explanation, both questions are connected to each other. Also provide references if used.