Idea, Vodafone likely to create a new brand identity post merger

Vodafone Idea (Image: Reuters)

Vodafone India and Idea Cellular are likely to come up with a new name and brand identity for the combined entity post merger, sources told The Economic Times. The same would come into practice a year after closure of the transaction, sources added.

A senior officer working closely with the merged entity’s new identity said work on the same has begun on a war footing. Both companies are also working on a new positioning to attract customers while maintaining the recall value that both entities originally had.

Sources said nothing is finalised yet and many options are being discussed. “We are veering towards the maintaining status quo for at least one year. The operational chaos that would ensue as a result of a new brand, however, would be a major issue,” sources told ET.

Jessie Paul, CEO of a marketing advisory firm in Bengaluru, said “A new brand will help them start afresh without any baggage. With Vodafone's strength in urban circles and Idea in rural areas, a new brand from scratch makes more sense.”

Going by the number of subscribers and revenue market share, this merger will give birth to India’s largest mobile phone operator. The deal is expected to conclude before July 2018.