VIVO

VIVO S1

VIVO Y17

VIVO V15

VIVO V17

EXECUTIVE SUMMARY

Vivo is a mobile telecommunications service provider – mobile phone services, data transmission and Internet – that has been in operation since 2003 in the telecommunication industry. The company’s main focus is to provide more and better products and services of mobile communication, bringing innovation and advantages in order to make customers’ life easier and enjoyable. Currently, the company holds about 30% market share and a customer base of 50 million users in the Brazilian market.

The following Situation Analysis will describe the current conditions surrounding Vivo and its products. It includes detailed information on the company’s products and services, an analysis of the market, an evaluation of Vivo’s competitors and distributors, historical results of marketing efforts, an industry-wide financial analysis, and macro environment information.

This marketing plan intends to address a new and revolutionary opportunity within a saturated mobile market. Operating in a highly competitive industry makes companies pursue new strategies in order to differentiate themselves from competitors. It has been difficult to distinguish from the pack only using voice and standard data (as short messages). Moreover, Vivo has always been concerned about being an innovative company aiming to make life easier to its customers.

For that reason, this assignment is based on a new product development known as mobile-payment. This method basically consists on financial transaction using mobile phones as a way of payment, replacing credit/debit cards, money and checks. It has been identified that there is a great opportunity for the parallel market and small financial transactions which are not attended by financial institutions. In additional, this service aims to facilitate customers’ lives since mobile phone became an indispensible gadget for majority of people. Vivo will take advantage of these opportunities by developing a new service which could provision that need.

INTORDUCTION

COMPANY PROFILE

Vivo Participacoes S/A (Vivo) is a Brazilian mobile telecommunication service provider, controlled by two European companies: Portugal Telecom and Telefonica. The joint venture was established in April 2003 and since then it is the largest mobile operator in the Southern Hemisphere and one of the largest in the world. It is a leading mobile phone market with a share of 29.9% and a base of about 50 million subscribers and roughly 10,500 direct employees. It has national coverage and it is the only operator in Brazil that offers wireless services in developed two key technologies used in the world – GSM and CDMA. Also it is the only one that offers services of third generation, 3G and CDMA EVDO.

For the third consecutive year, Vivo’s brand has been regarded as the Country’s most valuable mobile phone brand in the ranking organized by the British consulting firm Brand Finance, recording a value of R$ 5.8 billion. The company is continuously focused on expanding and improving connectivity among individuals, a commitment that has been summarized in the expression “Vivo – Quality Signal”. For this purpose, it has been investing in the development and improvement of technologies and services, as well as in policies geared to customer satisfaction. As a result, Vivo has been offering to its customers a broad and innovative portfolio of voice and data products and services.

Vivo’s main goal is to provide more and better services for customers to be able to connect themselves – whenever they wish, however they wish, from wherever they wish, every time more. Thus, it manages to stimulate a networked society, which brings along a huge source of opportunities for people to develop progress and live better. Accordingly, Vivo feeds a virtuous cycle which is reflected on the self-sustainable evolution of its own business.

In 2009, the company recorded a net income of R$ 16,4 Billion, a 5% growth over the previous year. The company shares have been traded at the Sao Paulo Stock Exchange (BM&F Bovespa) since 2006. These shares are also listed on the New York Stock Exchange

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