Brand Study: Vodafone New Zealand


In 1998, the global telecommunications corporation Vodafone established itself in the New Zealand (NZ) marketplace by acquiring the subsidiary operations of Bell South. Bell South had been fighting hard for years to establish a market presence within NZ but remained very much a secondary player to the national provider, Telecom Mobile New Zealand. When Bell South was acquired, its market share in the cellular phone market was a modest 19 percent. An internal brand consultant who worked on the Vodafone NZ project reports that at that time the prevailing viewpoint of staff could be summarized as "How can we possibly compete with Telecom Mobile NZ?"

To justify its initial investment and ongoing capital expenditure, Vodafone needed to grow. The new board and management recognized what seemed to be an insurmountable challenge: how to compete against Telecom Mobile NZ with product or technology advances. The presence of Telecom Mobile NZ was so strong, it didn't matter that Vodafone NZ had the might of a multinational corporation behind them.

Jan Mottram, with the Vodafone NZ human resources department, put it this way: "We realized that the only way to create a sustainable point of differentiation was to focus on how customers felt about our brand. That meant becoming a values-based organization." [11]

Vodafone NZ management decided to become a business of consumer experiences as much as it was a seller of cellular phone services. It recognized that there was huge potential in the rapidly emerging youth and young adult market, which needed to be approached in a specific experiential way.

Part of the process included an analysis of the market from the outside in, to get a clear understanding of what consumers within Voda-fone NZ's target market wanted to feel as a result of their experiences with the brand. From there a set of inspirational values was developed: zesty, your call, simple and clever, and tribe. These defined the brand persona and overlaid another set of foundation values, including integrity, excellence, and supportive.

Based on market research, Vodafone NZ management knew that customers embraced its newly defined inspirational values, so the next step was to get staff to project them. The branding process began with Vodafone NZ leadership to ensure they were powerful brand spokes-people for the company. This meant each manager had to develop a clear understanding of the organization he or she wanted to create. The process included asking managers to align their personal values with Vodafone NZ's values. They were forcefully asked for a commitment to live and communicate Vodafone NZ's values explicitly in all their actions and activities.

Vodafone NZ then worked to integrate these values into all elements of the business. Strategies and initiatives included the following:

  • A heavy emphasis on engagement with staff. A specifically designed brand induction program was run entirely by Vodafone NZ's executive team. The program focused on how each part of the business fit with the culture and the brand.

  • A comprehensive internal communications program to keep the company's messages alive. Every message was infused with the brand and values, including briefings to staff on strategy and communication of company results that were themed, inspirational events.

  • Changes in the physical work environment to reflect the brand and culture. Every space was looked at, including office areas, call centers, and special rooms where staff relax (the Chill Room) or have fun (the Thrill Room). Even the most senior executives began to work in an open plan environment with their staff.

  • Modifications in strategies, policies, and processes. These progressive changes supported and reinforced the unique brand and culture to which Vodafone NZ aspired. HR focused on three key brand-related elements: business needs assessment, employee-company alignment, and creation of passion so that people want to contribute.

Vodafone NZ managers now fundamentally believe that if the company is not living the brand, it is losing customers. When employees make decisions, interact with each other, and deal with customers, the company wants staff to give their values priority. Vodafone is clear in wanting everyone to be on-brand at all times; it has become intolerant of behavior that is out of sync with its values.

While the company sees this as an ongoing journey, it has already achieved much. Vodafone NZ is one of the strongest employment brands in New Zealand today, with employee turnover having fallen by a third. A recent staff survey demonstrated the high degree of engagement staff feel about working for Vodafone NZ. [12]

  • Overall satisfaction and engagement (84 percent)

  • Importance of passion for customers (97 percent)

  • Importance of passion for results (97 percent)

  • Pride in Vodafone NZ (96 percent)

  • Role in supporting company strategy (88 percent)

Jan Mottram points to the reactions of employees when they join the company as a powerful anecdotal indicator of their success. Typically, new employees say that working at Vodafone NZ is exactly how they perceived it to be before they joined the company.

Has it delivered value? The results speak for themselves. Vodafone NZ has increased its market share from 19 to 53 percent, and brand recognition has increased from 3 to 99 percent. Vodafone NZ ascribes much of this success to its values-based organization and brand strategy. Now, Telecom Mobile NZ finds itself wondering how it can possibly compete with Vodafone NZ.

[11]Private interview, August 2003.

[12]Vodafone Staff Survey, April 2003. Percentages state the proportion of employees who "agreed" or "strongly agreed" with statements relating to these factors.




Branded Customer Service(c) The New Competitive Edge
Branded Customer Service: The New Competitive Edge
ISBN: 1576752984
EAN: 2147483647
Year: 2006
Pages: 134

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