Vodafone's Promotion Strategy

Vodafone opened the UK's first cellular network on 1 January 1985 and has been the market leader since 1986; its UK networks carry over 100 million calls each week. Vodafone currently has the largest share of the UK cellular market and now it is one of the world’s largest telecommunication companies, hence its promotional strategies are also at a grand scale .

Vodafone's current business strategy is to

Ø  grow through geographic expansion

Ø   acquisition of new customers

Ø   retention of existing customers

Ø  increasing usage through innovations in technology.

Sponsorship, the most effective way of increasing brand awareness, helps to generate consumer preference and to foster brand loyalty. A company can reinforce awareness among its target market by sponsoring an event or organization that attracts a similar target market. Vodafone sponsors several leading sports brands that have similar ideologies as Vodafone. In particular it sponsors – Ferrari and Manchester united .

Consider the case of Ferrari . Vodafone has over 100 million customers worldwide, spanning 5 continents and 28 countries . Formula 1 offers Vodafone high profile exposure a sport that commands a worldwide television audience of 360 million people thus giving Vodafone the immensely valuable media coverage it needs to be recognized as one of the world's leading brands .

Vodafone has established tangible links between the products and services it offers and the organizations that it sponsors. For example:

·         Ferrari fans can subscribe to Multimedia Messaging Services (MMS), news services and chat forums

·         Download games, ringtones, wicked welcomes, wallpaper and other images and play in quiz competitions

·         Similarly, the Vodafone Race Track racing simulator allows customers to compete in a racing simulator

Vodafone is thus committed to developing a range of value added connections to the sponsorship package . Vodafone's link with Ferrari gives them a USP in terms of up-to-the-minute involvement with the world's leading racing team . Providing up-to-the-minute sports services is a winning formula as it provides Vodafone with plenty of positive press coverage, word-of-mouth and public relations . Vodafone has provided a range of value added services that form part of its sponsorship package of Ferrari and Formula 1. 
Examples include:·         

'Grand Prix on the Fone' Generic Alerts

Customers can obtain wide-ranging updates texted to their Vodafone mobiles for every race of the Formula 1 season. They can even follow their favourite team, with lap speeds and times, positions of drivers and constructors as well as the drivers points table after the race

·      Ferrari news

Exclusive news from Ferrari texted to phones includes comments from Michael Schumacher, Rubens Barrichello and team manager Jean Todt , as well as key announcements from Ferrari (e.g. new driver signings) all through the year.

·      Grand Prix Quiz Trivia Game

·      Ferrari Ringtones and Icons

·      Ferrari content on Vodafone live!

Considering the case of Manchester united , we find how two businesses that have global appeal are co-operating to achieve their shared visions for their companies and brands

Vodafone: To become a global mobile leader in terms of profit, customers and value, making mobile networks the "nervous system" of the networked economy spanning three major developed markets (Europe, US and Japan) . Its brand vision is a ‘ Can Do ‘ approach that makes life easier for customers .

Manchester United: To remain the most pioneering, best supported and most successful football club in the world . Its brand ideology is ‘Relentless pursuit of excellence ‘ .

In February 2000 Manchester United and Vodafone UK announced a commercial alliance. Through this, Vodafone became the principal sponsor as well as the telecommunications and equipment service partner of the club. Due to Manchester United's global appeal, the dual branding process that Vodafone is currently progressing means that sponsoring such a renowned sporting team, exposes the Vodafone name in countries where it may not have been previously known

Both Vodafone and Manchester United are seeking to be the best in what they do and in pioneering new ideas. Both brands have a global appeal. Manchester United has a massive supporter base, including areas such as the Far East. These supporters represent potential customers for Vodafone. Clearly, the deal fits with Vodafone's marketing objectives of obtaining new customers, keeping its present ones and continuing to develop the brand. In addition, Vodafone is able to develop new value added services specifically for Manchester United fans.

The marketing benefits for Vodafone from these 2 alliances cover three main areas.

• Enhancing brand awareness and image
• Extending the range of products and services
• Adding value to services

The organisation receiving the sponsorship (sponsee) stands to benefit enormously from both financial support and other forms of backing from an established partner .For Manchester United, the deal not only generates extra income, but also provides valuable new services to its fans. This makes being a Manchester United fan even more attractive and for the club new fans mean new customers to sell to. Ferrari will benefit from joint ventures and shared revenue streams arising from the creation of a range of products and services, as well as the sale of merchandising within the telecom sector

Like all the best deals, there really is something in it for everyone.