Vodafone Idea is likely to relaunch its brand on Monday, revealing a completely new identity and communication around it, reliably learned.
The relaunch is to have a combined brand identity and advertising around it, as the organization has so far been advertising the two brands separately, officials familiar with the matter said.
It is likely that the entire leadership of the entity, which was born from the merger of Vodafone India and Idea Cellular in August 2018, will announce the renewed positioning of the brand, as it addresses a difficult business scenario in which the parent Vodafone Group is not willing to commit additional funds.
The introduction of this new brand is to communicate the superior quality of calls and the world-class service around it, officials said.
The intent is known to attract a new set of subscribers with the promise of guaranteed quality under this brand and stop further erosion of users.
While Idea Cellular had a more rural reach, Vodafone was popular in urban areas. The telecommunications company has already integrated its postal mail plans with the Vodafone brand.
But the telco has been steadily losing customers to rivals Reliance Jio and Bharti Airtel.
It has seen its user base drop to nearly 280 million at the end of June from 408 million at the time of the merger. Its revenue market share (RMS) also tumbled 448 basis points (bps) sequentially to 23.3% in the June quarter, triggered by sharp declines in market share in urban circles, analysts said. Market leader Jio, by contrast, reported strong sequential growth (702 bps to 41.8%) in its RMS in the April-June period, while Airtel’s RMS also rose 391 bps qoq to 34.8 %.
Last Friday, the telecommunications company announced that it plans to raise funds of up to 25 billion rupees through a combination of debt and equity instruments in one or more tranches, which will be used to pay legal fees and invest in network operations. to take rivals.
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