VI - Vodafone Idea: Vision

4.
VI – Vodafone
Idea
Vision
Create world class digital experiences to connect and inspire every Indian to build a better
tomorrow
Merger and Acquisition of Idea and Vodafone

Jio's debut into the Indian telecom business in 2016 led in a slew of mergers and
acquisitions. The merger of Idea Cellular and Vodafone India was announced in March 2017.
The merger was approved by the Department of Telecommunications in July 2018. The
National Company Law Tribunal authorised the Vodafone-Idea merger on August 30, 2018.
The merger was completed on August 31, 2018, and the newly amalgamated business was
named Vodafone Idea Limited. In terms of users and revenue, the merger established
India's largest telecom operator.
The Vodafone Group will control 45.2 percent of the combined firm, the Aditya Birla Group
would possess 26%, and the public will own the remaining shares, according to the
conditions of the agreement.
Vodafone and Idea were renamed V! after the merger. It was the largest merger of two
telecom businesses in the world.
The Vodafone Group will control 45.2 percent of the combined firm, the Aditya Birla Group
would possess 26%, and the public will own the remaining shares, according to the
conditions of the agreement.
Vodafone and Idea were renamed V! after the merger. It was the largest merger of two
telecom businesses in the world. Let's look at the company's marketing plan now that we
have a good understanding of it.
The Merger Strategy: Why Vodafone and Idea merged?
The key motivation for the Vodafone-Idea merger is to counter Reliance Jio's growing
dominance in the telecom business. Jio has stated that its services would be free for the first
six months. As a result, it began to seize the lion's share of the market.
Second, Jio's free services triggered a pricing war between telecom operators ( as it in an
oligopoly market structure).
As a result, in the event if a price war, a merger gives companies with synergy benefits
more confidence.
Finally, it was envisaged that the merged business of Vodafone and Idea would have a
dominant position in the industry. For example, it became the largest cellular service
provider in some circles and the largest cellular service provider in others second-largest
after Bharti Airtel. So, a joined company can focus on being the service provider in pan
India.
After the merger

VI Marketing Strategy
Historically, the company has positioned itself by stressing the customer experience. It has
positioned itself as a brand that links people, from its original tagline, 'An Idea Can Change
Your Life,' to its most recent, 'Stay Connected.' All of this is still represented in V!, the
company's new moniker.
Idea has grown from a purely telecommunications company to a key player in the
communication services industry, including internet, mobile telephone, and other services.
STP Strategy of VI
Segmentation, Targeting, and Positioning (STP) is a three-step marketing strategy that
analyses your products or services as well as how you communicate their benefits to distinct
client segments.Idea uses a combination of segmentation tactics to segment its mobile
network services, enterprise services, and broadband services. It takes use of geographic,
demographic, and psychographic segmentation.
Different parts of society are targeted by Idea's numerous offers. As a result, it adopts a
targeted approach that is both selective and differentiated.
Idea's advertising strategy was successful in building brand awareness among

communication service providers around the world. It uses positioning methods that are
based on value.
Product Strategy of VI
Idea Cellular, formerly V!, is one of India's largest telecommunications companies. Voice
service, mobile Internet, and value-added services are the company's main products.
Voice services are further categorised into prepaid and postpaid.
Post-paid plans start at a modest price. V! Cellular offers a variety of value packs to help in
customer acquisition. Ultimate plans, per-minute plans, per-second plans, and combo plans
are all integrated with post-paid plans. In the prepaid category, plans like start-up kits are
highly enticing, as they help to attract new clients.
Pricing of Vi
In India's competitive telecom business, V! Cellular focuses heavily on competition strategy.

In the fierce competitiveness of India's telecoms market, price is the whip hand. Voice plans
for post-paid customers start at Rs.199.
The Idea, now V!, offers its clients compelling ISD packages for postpaid services at prices
that are competitive with other providers. For prepaid services, full talk time coupons start
at Rs.100. Combo vouchers are not the same as single vouchers in terms of price. As a
result, they can profit from the willingness of their customers to pay.
In this approach, V! may maximise its revenues. Only those seeking luxury services are
willing to pay a premium for value-added services, which are exorbitantly priced.
Product Placement of Vi
V! has a massive audience. Vservices !'s are used by people in practically every corner of the
country. In today's world, being able to give immediate customer assistance is crucial. V!
does this by being available to customers at all times through customer care.
Customers can report problems via V! cellular's internet portal. Customers can also use this
platform to look for different packages, pay bills, and conveniently recharge their phones.
The company has outlets in all of India's main cities and states.
Marketing Strategy
The country's newest telecom operator, Vodafone Idea, has planned a large-scale
advertising campaign to promote its entrance. The corporation planned to start its branding
effort with broadcast and digital ads. So, over the course of a few weeks, Vodafone Idea
began a multi-media campaign to establish itself in a crowded market.
According to industry sources, the corporation planned a large promotional campaign to

progressively establish its new image. Due to scheduling restrictions, they held a virtual
event to introduce the world to their newly refurbished and amalgamated identity, 'V!'.
#StrongerEveryHour ” Campaign
A good network experience is critical for accessing information, meeting entertainment

requirements, and holding conversations as data becomes increasingly important in our
mobile life. With the launch of #StrongerEveryHour, Vodafone Idea, the country's largest
telecom network, ushered in the New Year of 2019.
This advertisement attempts to promote the 'Vodafone SuperNet 4G - India's Data Strong
NetworkTM' network's improved capabilities, particularly in congested locations where a
tower is built every hour.
Ogilvy & Mather was in charge of the marketing campaign's creatives.
Let's look at Vdigital !'s marketing and digital presence now that we've gone over some of
its marketing efforts.
Conclusion
Idea and Vodafone will become a major player as a result of their combination. Synergies of
up to INR 670 billion and INR 140 billion in operating costs can be acquired for the benefit
of cooperative managszement in the fourth year. It will also provide credit for Towers
Assets' sale to a consolidated company.
Consolidation appears to decrease expenses and provide financial opportunities that improve
financial performance. It remains to be seen if the corporation will be able to monetize the
remaining spectrum.
The promoters of the Aditya Birla Group are astute enough to join up with Vodafone in this
price war while also retaining the right to measure the pole in phases. There has been no
gain to public stockholders thus far, and they will continue to hope to benefit from the long-
term merger.

VI - Vodafone Idea: Vision

Uploaded by

Copyright:

Available Formats

VI - Vodafone Idea: Vision

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

VI - Vodafone Idea: Vision

Uploaded by

Copyright:

Available Formats

4.

Merger and Acquisition of Idea and Vodafone

After the merger

Idea's advertising strategy was successful in building brand awareness among

Voice services are further categorised into prepaid and postpaid.

In India's competitive telecom business, V! Cellular focuses heavily on competition strategy.

According to industry sources, the corporation planned a large promotional campaign to

A good network experience is critical for accessing information, meeting entertainment

Ogilvy & Mather was in charge of the marketing campaign's creatives.

You might also like