The $23 billion Vodafone-Idea Cellular merger, which is touted to become India’s largest telecom firm, has cleared just one hurdle in the intense war simmering in the sector after the entry of Reliance Jio in September.
The move towards consolidation by Idea and Vodafone as announced on Monday with their merger has shaken the arena and more such mergers are expected.
However, Idea and Vodafone have a few stiles to leap over, even with the size the merged entity commands.
Vodafone and Idea Cellular have clear brand identities. British telecom major Vodafone is seen as ultra modern which is preferred by customers in the cities across the country. This image is also because the MNC has a confident urban image, says Siddharth Shekhar Singh, Associate Professor of Marketing, Indian School of Business (ISB). Idea, on the other hand, has an earthy and rustic image. What will the merged identity be – a balance of both or focus on the rural or city aspect?
The image chosen by the merged identity may not go down well with its customers, feels Singh, as it has to co-opt customers from opposing end of the spectrum. “A lot will depend on the brand resonance of the merged identities,” he said.
Source: Firstpost
The move towards consolidation by Idea and Vodafone as announced on Monday with their merger has shaken the arena and more such mergers are expected.
However, Idea and Vodafone have a few stiles to leap over, even with the size the merged entity commands.
Vodafone and Idea Cellular have clear brand identities. British telecom major Vodafone is seen as ultra modern which is preferred by customers in the cities across the country. This image is also because the MNC has a confident urban image, says Siddharth Shekhar Singh, Associate Professor of Marketing, Indian School of Business (ISB). Idea, on the other hand, has an earthy and rustic image. What will the merged identity be – a balance of both or focus on the rural or city aspect?
The image chosen by the merged identity may not go down well with its customers, feels Singh, as it has to co-opt customers from opposing end of the spectrum. “A lot will depend on the brand resonance of the merged identities,” he said.
Source: Firstpost
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