Vodacom's branding change is not only about sporting the same look at its majority shareholder and parent company, Vodafone, it says.
On Friday, SA's largest cellular operator unveiled new branding, which brings it in line with the rest of the Vodafone group. The red look signals a shift in strategy as the company has also streamlined its management structure.
The launch followed CEO Pieter Uys's statement in February that Vodacom would spend R200 million on rebranding and improving the customer experience. His comments sparked media speculation that the operator was going red, in line with UK-based Vodafone, which owns a majority stake in the local cellular company.
Uys said on Friday the rebranding “is not an April Fool's Day joke” and quipped that the media “cannot keep a secret”. Vodacom will spend another R200 million in the current financial year on its brand and improving subscribers' experience.
Vodacom launched the new brand at the Vodacom Unlimited music festival on Friday. During the show, it switched over to a live transmission of Hillbrow's iconic Ponte tower lit up in red during a pyrotechnics display.
Network focus
The cellular company has flattened its management structure to increase the speed with which it operates, noted Uys. The rebranding is not only about colour, and behind the scenes the company is working to improve the network and offer better services to consumers, he added.
Vodacom spent six months streamlining the company so that it isn't complex and responds quicker to changing market conditions. “You can't take months to respond, and that's how we'd become,” commented Uys.
Uys said the cellular company is focusing on improving its network. It will roll out at least another 1 000 3G base stations this year to reach 5 500, and won't only focus on metropolitan areas, he explained. “Customers will see our focus on our network.”
In addition, said Uys, customers will experience a reinvigorated Vodacom will a sharper focus on service. The company will also continue to innovate, and offer consumers value and better promotions. “The colour is just the tip of the iceberg.”
Growth ambitions
Vodacom has rebranded all its operations on the continent and will benefit from the closer link with Vodafone, noted Uys. He pointed out that subscribers will benefit from improved roaming tariffs across Vodafone's 30 operations. “It's great to be part of a big family”.
Uys added that the closer link to Vodafone will also aid the company in expanding into Africa.
Vodafone will support Vodacom in finding new expansion opportunities in Africa, and the companies are working together to find countries into which to expand, said Uys. According to Uys, there will be consolidation in the market, and with the new branding behind the company, it is better positioned to take advantage of opportunities that arise.
In November, Uys said Vodacom wants to generate more than the current sixth of its revenue outside of SA, especially considering more than half of its subscribers are based in other African countries.
Vodacom has spent two years fixing its current operations on the continent. It has turned around the operation in Tanzania; Mozambique will be profitable this year; and Lesotho is doing well, said Uys.
In addition, he pointed out, the company is still hopeful of finding a solution to an ongoing shareholder dispute in the Democratic Republic of Congo. However, said Uys, it is possible that Vodacom may sell its stake.
When Vodacom launched 17 years ago, the company expected the entire local cellular market to hit 500 000 subscribers in a decade, reflected Uys. The company anticipated signing up half of these users.
Vodacom SA is now the biggest network in the country, with 25.3 million subscribers, giving it the lion's share of the market with about 49% of all subscribers. However, Uys commented that the company had become too complex and needed to reinvent itself.
Share
