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Idea Fone or Voda Cellular?

With distinctly different brand images, merged Idea and Vodafone will be a more diverse entity

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Not long before the proposed merger, Vodafone India and Idea Cellular were the closest of competitors. The second and third largest telecom operators, respectively, were equal in many aspect subscriber base or data subscribers. Yet, the brands of Vodafone and Idea had never crossed paths.

Apart from business synergies and the ability to create a leaner entity with low operational costs, the merged entity will bring together the most diverse brands in the telecom space which is known for noise. "Both Idea and Vodafone have distinctly different brand images which do not overlap. They address different sub-segments and I believe that they can co-exist together," said Kunal Bajaj, a former telecom analyst who is now launching telecom start-up.

Vodafone's branding strategy is known for its X-factor. Zoozoos created fanfare trendy enough to boost demand for its merchandise. The brand resonated with its well-educated urban subscribers. Vodafone is strong in metros especially Delhi and Mumbai, ladling away the cream of subscribers.

Idea on the other hand is identified with What an Idea, Sirji campaign. The suffix 'Sirji' and its most famous ad of Abhishek Bacchhan as the village headman, targets a segment far different from Vodafone. Idea chased subscribers in towns and villages with gusto as others battled for large cities. In the words of the company MD, Himanshu Kapania, "We built our brand and marketing programme not as a counter to other existing operators but focussed on mass rural population."

Idea vs Vodafone?

It is common in consumer goods business to have multiple brands under an umbrella. It is an interesting experiment which is yet to be tried in the telecom space. Though Vodafone and Idea have never been foes, they must fight to keep their mark even if they co-exist.

"Between Vodafone and Idea, Idea is the stronger brand. While the bigger brand always takes over, it is important to note that business is stronger than the brand," explains Harish Bijoor, the head of a marketing firm named after him. Idea is also a listed entity, with a brand image extending its image to stockholders too, beyond subscribers and vendors.

While Vodafone has always enjoyed the position as the second largest operator and Idea as the third, their numbers are extremely close. Vodafone has 202 million subscribers as Idea has 185, and while Vodafone has 34.8 million data subscribers, Idea is not too far behind with 28.4 million.

According to 'The Brand Trust Report Rankings 2016', Idea ranks at 21st position while Vodafone comes in at 29th. While they look close too, Vodafone has made huge strides in the last one year. A year back, it had come in at 63rd position while Idea ranked at 35, indicating that Vodafone is the brand which has made larger strides in refining its image.

Even as the merged entity is all set to become the country's largest operator, it should inspire awe, set standards and build trust. A lot would hang in the name it would work with.

The story of brand Vodafone

Vodafone's acquisition of Hutch in 2007, was followed by a shockingly effective ad campaign. It rode on the extremely popular campaign by Hutch with its pug. The pug walks into a Vodafone branded kennel, with the line, 'Hutch is Now Vodafone'

In 2009, Vodafone India went beyond showcasing its network (backed by Pug) and brought in a viral campaign with Zoozooz in the IPL season. The weirdly-shaped white beings spoke about plans, talk-time and offers.

In 2011, Vodafone launched 3G and the introduced the alien concept with a Superman Zoozoo. The Superman did the impossible, raced ahead of bullets, planes and circled the earth, passing the message of speed.

Coming back a full circle, Vodafone brought back the Pug last year to introduce its Supernet 4G. The ads featuring a boy, claim that Vodafone is the world's largest 4G network. The Pug is probably there to show that 4G network will follow them everywhere.

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