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ZooZoo effect: 7% of Vodafone’s service revenues come from data browsing

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vodaIt has almost been 20 years since Vodafone set foot in the country, which was earlier known as Hutchison Max in 1994. Riding on a huge multimedia campaign in 2007, Hutchison became Vodafone and within a year the brand claims to have crossed five crore subscribers. Vodafone bought us the ZooZoo campaign, the ‘Vodafone Pug’ and many more innovative marketing to woo its customers. With the new ZooZoo campaigns during this IPL – and their radio avatar now in the form of Zumi – the telecom brand has aggressively promoted its data plans, but why is Vodafone banking on the digital frontier?

The recent FY13 report states that data for Vodafone now accounts for seven per cent of service revenues.The browsing revenue at Rs 1,998.8crore in FY13 has seen a 50.5 per cent growth YoY and the reason, Vodafone claims is the strong uptake of data through its 3.73 crore data users out of which 33 lakh are 3G customers. The brand also claims that the data usage and revenue growth has been led by increasing smartphone and tablet penetration.

The current ZooZoo campaign for this IPL season was pushing mobile phone users to accessVodafone’s data trial packs, starting at Rs 25 for 2G and Rs 49 for 3G. In an earlier interview with Pitch, Anuradha Aggarwal, Senior Vice-President, Brand Communications and Insights, Vodafone India, had said thatVodafone wants to handhold the consumer to get on mobile internet by making him understand the relevance of it in his life. “The idea is to improve the quality of awareness and thereby relevance of mobile internet,” she said.

Anuradha Aggarwal, Senior Vice-President, Brand Communications and Insights, Vodafone India

Anuradha Aggarwal, Senior Vice-President, Brand Communications and Insights, Vodafone India

Since the campaign is mobile internet oriented, the brand claims that the crux of the campaign, encouraging non data users to adopt the ‘digital use’ on mobile was alsoriding on social media. “It’s an exciting and dynamic medium and brands need to experiment with the kind of content they create for social networks, and be responsive to their fans and customers to earn customer trust, interact with the brand and seek information and resolutions to any problems they are facing,” added Aggarwal.

Vodafone itself as per the FY13 reports claims to have seen a growth in its revenue by 10.6 per cent. Marten Peters, Managing Director and CEO, Vodafone India says that the industry growth was negatively impacted this year by the new acquisition and processing fee regulations, however customer base growth and improved usage has led to a strong exit.

Vodafone claims to have 7,800 exclusive retail stores and 15 lakh customer touch-points. It also claims to have the largest rural subscriber base of 8.22crore.

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