Vodafone 2003 Annual Report Download - page 17

Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 15
Vodafone live! and Mobile Office from Vodafone
Vodafone live! was launched on 24 October 2002 and by 31 March 2003 the
Group had connected more than one million active live! customers in 10
countries. Of the Vodafone live! customers, Germany had over 405,000, Italy
227,000 and the UK 240,000. Since 31 March 2003, Vodafone live! has also
been launched in Australia, Egypt and New Zealand. The service has also
attracted critical acclaim from the industry, including recent awards from the
GSM Association for best consumer application, advertising and mobile handset.
The acquisition of the remaining 50% stake in Vizzavi and its rapid integration
into the Group has supported the creation of Vodafone live!, which is expected to
continue to drive a significant part of the Group’s growth in future years. It is
intended that the Vodafone live! experience will continue to be updated,
integrating the most up to date services and technologies as well as broadening
the range of handsets available to cover more market segments. The next
release of Vodafone live! will include access to picture messaging libraries and
improved download speeds.
Mobile Connect Card, the first of Vodafone’s global business services to be
offered under Mobile Office from Vodafone, was launched in twelve countries
during the period. Mobile Connect Card, a high speed data card enabling
customers to access their normal business applications when out of the office, is
aimed at all business users, from large corporate customers to those in the small
and medium sized enterprise sector, and is marketed and sold through the
Group’s direct sales, retail and e-channels as well as partner channels for
leading personal computer brands. Mobile Office from Vodafone will offer a range
of global and local mobile business services to customers, with more global
services to be introduced later this year.
Vodafone live! and Mobile Office from Vodafone are already demonstrating their
importance to the Group’s strategy of deriving increased revenues from data
services, with games downloads, picture messaging and other content services
proving particularly popular and generating extra revenue.
3G
Together, Vodafone live! and Mobile Office from Vodafone lay the foundations for
the Group’s next stage of growth, as it is planned that both will create the
demand for new data services against which the Group will construct its 3G
networks. Both currently use 2.5G technology and will be upgraded to 3G,
enabling faster download speeds, which will enhance customer experience and
productivity.
In December 2002, J-Phone Vodafone became the first subsidiary in the Group
to launch 3G services commercially. Furthermore, J-Phone Vodafone customers
with an enabled handset, can not only use 3G services within Japan, but can
also roam internationally on 2G networks with the convenience of being able to
use the same telephone number as they do at home.
In Europe, the Group’s 3G programme continues, with networks being rolled out
according to plan and technical testing underway. The availability of suitable
handsets remains a key issue and supplies of these are expected to be limited
until 2004. 3G services are expected to be available to customers before the end
of the 2004 financial year, dependent on when networks and handsets are of
sufficient quality to offer the Group’s customers a good service.
Brand
The strength of the Vodafone brand continues to improve. For example, in
countries where the Group has migrated to the Vodafone brand, brand
awareness and preference continues to grow. During the year, the Group
continued with its high profile sponsorship of the Manchester United Football
Club and the Ferrari Formula 1 team, backed up with individual sponsorship
contracts which, when combined with the continued brand rollout and other
marketing communications programmes, has significantly improved awareness
and perception of the brand. In Italy, Vodafone Omnitel migrated to the single
brand in May 2003 and migration to the single Vodafone brand is also underway
in Japan. Having a consistently implemented brand across the Group’s markets
greatly assisted the execution of the Vodafone live! campaign and Vodafone live!
is already significantly contributing to the brand in terms of brand equity and
positioning. The brand is also being rolled out in networks where Vodafone does
not have equity stakes, through the partner networks programme, which licenses
the global brand and key global services.
Partner Network Agreements
The Group’s partner network strategy is becoming increasingly attractive to
operators in which it does not currently hold an equity stake. During the year
ended 31 March 2003, the Group signed a further four Partner Network
Agreements, with Mobilkom Austria Group, si.mobil in Slovenia, VIPnet in Croatia
and Radiolinja Eesti in Estonia. The Group now has eight partner networks
following the latest agreement with Islandssimi hf in Iceland announced on
16 April 2003. By partnering with leading mobile operators the Group is able to
market its global services in new territories, extend its brand reach into new
markets and create additional revenue without the need for equity investment.
Marketing and distribution
Marketing
The Group’s marketing activities can be categorised as brand marketing and
local marketing.
Brand marketing
Brand marketing is designed to increase general public awareness of the
Vodafone brand or other local Group brands – its values, products and services –
and marketing specifically directed at certain distribution channels. Brand
communications include sponsorships and advertising on radio, television, in
general circulation newspapers, in magazines and in specialised publications.
Having improved its brand awareness as a result of the Group’s brand rollout
programme and the continuing “How are you?”advertising campaign, the
Group’s brand marketing is now focused on turning brand awareness into brand
preference.
The Group believes that the adoption of a single Vodafone brand in all markets
will maximise the return from the Group’s investment in marketing and
application development and will increase customer loyalty. During the 2003
financial year the Group has continued to implement its strategy to introduce the
Vodafone brand into all businesses where it has control. At 31 March 2003, all
subsidiaries other than those in Italy and Japan had migrated to the single
Vodafone brand. Omnitel Vodafone was rebranded Vodafone Omnitel in June
2002 and migrated to the single brand in May 2003. In Japan, J-Phone
Vodafone is to migrate to the single brand by December 2003.
Further details on how the Group has developed the global brand during the
2003 financial year can be found in “Strategic developments – Global services”
above.