marketing of services vodafone

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A

PROJECT REPORT

ON

MARKETING OF SERVICES

Submitted toward partial fulfillment of requirements for award of

POST GRADUATE DIPLOMA IN MANAGEMENT

(BATCH 2011-2013)

SUBMITTED BY: - SUPERVISED BY :-

ABHISHEK RAWAT Pro. JANSURYA SHARMACOURSE:-PGDM (Faculty JIMS )

ROLLNO:-20110

JAIPURIA INSTITUTE OF MANAGEMENT STUDIES

SHAKTI KHAND-4, INDRAPURAM, GHAZIABAD, 201012


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Acknowledgement

I take this opportunity with much pleasure to thank all the people who have helped

me through the course of my journey towards producing this report .I sincerely

thanks my Prof. Jansurya Sharma for their guidance ,help and motivation .Apart

from the subject of my research .I learnt a lot from them, which I am sure ,will be

useful in different stages of my life .

Finally ,this project report would not have been possible without the confidence,

endurance And support of my family. My family has always been a source of

inspiration and encouragement.


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MARKETINGSTRATEGIESOFVODAFONE

SERVICEMARKETING


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TableofContents

1. OBJECTIVES ............................................................................................................................ 3

2. INTRODUCTION..................................................................................................................................... 4

3. SITUATIONAL ANALYSIS ........................................................................................................................ 5

4. MARKET OPPORTUNITY ........................................................................................................................ 6

5. BRAND ELEMENTS................................................................................................................................. 7

6. CRM....................................................................................................................................................... 8

7. POSITIONING......................................................................................................................................... 9

8. SEGMENTATION ...................... ............................................................................................................ 10

8.1 BCG MATRIX.......................................................................................................................................... 10

8.2 ANSOFFs PRODUCTMARKET EXPANSION GRID .................................................................................. 11

9. MARKETING MIX 7Ps FOR VODAFONE ............................................................................................. 12

9.1 PRODUCT............................................................................................................................................... 12

9.2 PRICE ..................................................................................................................................................... 13

9.3 PLACE .................................................................................................................................................... 13

9.4 PROMOTIONS........................................................................................................................................ 14

9.5 PEOPLE .................................................................................................................................................. 14

9.6 PROCESSES ............................................................................................................................................ 15

9.7 PHYSICAL EVIDENCE ........................................................................................................................ 15

10. CONCLUSION................................................................................................................................... 16

11. REFERENCES.................................................................................................................................... 17

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1. OBJECTIVES

To analyze the marketing strategies of the service provider Vodafone

To see the positioning and segmentation done by Vodafone.

To determine the marketing mix of Vodafone.

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2. INTRODUCTION

Vodafone is the worlds largest mobile telecommunications community, employing

over 65,000 staff and with over 130 million customers. The business operates in 26

countries worldwide. Vodafone is a public limited company with listings on the

London and New York stock exchanges. Global recognition of the Vodafone brand is

growing as the company rolls out its identity into new markets. However, it retains

local names and imagery in markets where this is essential to maintaining the trust

of customers. To help promote its image worldwide, Vodafone uses leading sports

AND stars from high profile global sports, including David Beckham and Michael

Schumacher.

Vodafone Essar, usually referred to as Vodafone is the Indian subsidiary of

Vodafone Group with 67% stakes held by UK based Vodafone Group Plc. and 33%stakes owned by Essar Group. It was formerly known as Hutchison Essar. In May

2007, Vodafone acquired the 67% stake held by Li Ka Shing in Hutchison-Essar,

thereby making it Vodafone Essar. The company won 3G licenses in 9 of the 22

telecom zones for Rs. 11617.86 crore and plans to launch its 3G services in Jan-

March 2011. The company now has operations across the country with over 118.04

million customers.

FROM HUTCH TO VODAFONE

Vodafone essar was formed out of an acquisition deal of Vodafone and hutch essar,

and hence Hutch was successfully rebranded as Vodafone. This was an easy way to

enter into India as hutch essar already had a strong brand image in Indian telecom

market. As the rebranding campaign begun they started by changing the taglines

communicating the change from hutch to Vodafone. The taglines were change is

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good, hutch is now Vodafone. They changed from where u go our network follows

to Make The most of Now They also carried out a massive advertising campaign to

rebrand themselves, and the main feature of their campaign was the Zoo Zoo

characters that were used to promote the value added services by Vodafone and

became famous as soon as they were launched.

3. SITUATIONALANALYSIS

Customers

Vodafone operates in 23 telecom circles in India in 2G segment and it is about to

enter 9 telecom circles in 3G segments. As per the report of Cellular Operators

Association of India, in the month of October it has 118.04 million subscribers all

over India

Competitors

Vodafones market share is 23.20%and it faces stiff competition from several players

in the market like Airtel, Reliance, BSNL, Idea, Tata Indicom, Virgin Mobile and

new entrants like DOCOMO. Therefore, the level of competition that Vodafone has

to face is high.

Company

Vodafone Essar, formerly known as Hutchison Essar is a cellular operator in India

that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is the

Indian subsidiary of Vodafone Group 67% and Essar Group 33%. It is the second

largest mobile phone operator in terms of revenue behind Bharti Airtel, and third

largest in terms of customers. Vodafone Essar provides 2.75G services based on 900

MHz and 1800 MHz digital GSM technology, offering voice and data services in 23

of the country's 23 license areas. It is second largest telecom service provider as per

the market share.

Context

Tele-density in India has reached nearly 51% and the industry is growing at a

CAGR with 22%. The intense competition has led the players to target lower

segments and entry into rural areas. The rural mobile penetration is just 19%

compared to 103 percent in urban India (around 20% is estimated to have dual Sim

cards).

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4. MARKETOPPORTUNITY

The Indian telecom market is the fastest growing market in the world and is

expected to soon takeover US as the second largest market, much of this growth is

to be driven by the lower middle income group and the rural population.

With the penetration of telecom in the urban markets, the urban middle class

markets have more or less saturated. The next phase of growth is thereby

likely to be driven by the lower income group which form the Bottom of

the Pyramid. The service providers will have to revamp their business models

by which they could make good profits even at low ARPUs. For e.g.: One

paisa per second billing. Vodafone has already taken a step forward towards

targeting these consumers who are at the bottom of the pyramid with their bonus

cards and advertisements. The key success factor in the telecom sector would be toconcentrate on providing the most competitive tariff rates, good quality of service

and constant innovations.

Vodafone logo, tagline, stores and schemes.

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5. BRANDELEMENTS

NAME BRAND ELEMENT-

VODAFONE

DESCRIPTION

BRAND NAME

URL

LOGO/SYMBOL

CHARACTER

PACKAGING

TAGLINES

Vodafone

www.vodafone.in

Make the most of now

Fanciful

Easy to remember,

Simple country

extensions

Recognizable,

Red and white color

combination.

Bright red color giving a

lively image

Zoo Zoo. Create imagery

for value added services,

Animated and

Humanized,

Recognizable and loved.

creative

Imprinting the same

logo, colorful logos on

packaging of sim cards,

handsets, top up

recharge coupons,

Recognizable,

Consistent and uniform

across the world.

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6. CRM

Total Customer Benefit is the perceived monetary value of the bundle of economic,

functional and psychological benefits customers expect from a given market offering

because of the products, services, personnel and image involved. In the case of

Vodafone, we can analyze the Total Customer Benefits as follows:

Product Benefits

A variety of products is offered including several variations in the prepaid and post-

paid divisions. In addition to the existing products, Vodafone provides a number of

top-up plans each of which can be selected on the basis of what is the customers

requirement. Apart from all of this, Vodafone now has the iPhone 3G and the Magic

Box Handset as product offerings.

Services Benefits

Vodafone World which is the GPRS Service, Vodafone Live which guarantees non-

stop streaming action, Chhota Recharge which is a small value recharge card

beginning at Rs.10, are some of the value added services that Vodafone provides.

Vodafone provides a series of other services like Tunes & Downloads, News &

Updates, Call Management, Astrology, Entertainment, Sports, Finance,

Travel, Devotional, Mail, Messaging, and Detailed information on Billing.

Personnel Benefits

The staff of Vodafone is trained with the mindset ofHappy to help you which is

the motto of Vodafone. Vodafone has call centers with trained personnel who take a

customers request, process it, service the request and then follow up to find out if

eventually the customers needs have been met satisfactorily.

Image Benefits

Vodafone has always been positioned as a brand that provides a wide range of

services and caters to all sections of the society. However, Vodafone seems to have

hit it off well with primarily the youth and the younger age groups.

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If we were to analyze the Total Customer Costs in a similar manner, we would find

Monetary Costs

Vodafone has several plans to suit everyones pockets and so the cost associated

with a Vodafone connection is only what the client feels is feasible for him or her.

Time Costs

Customers do not have to spend too much of time trying to pay their bills or get

their requests serviced because of the many stores and online payment facility

Energy Costs

Because clients do not have to travel to meet their needs too often, the energy costs

associated with Vodafone are also considerably low.

Psychological Costs

The customers of Vodafone do not need to spend any large amount on acquisition,

maintenance, usage and disposal of the connection. Therefore, the elements of the

psychological costs do not play too much of a factor while evaluating the total costs

that a customer incurs in availing of Vodafones services.

7. POSITIONING

After the great success in the ZooZoo ads, which were used to communicate toaudiences with high levels of literacy, Vodafone is now popularising the brand by an

animated parrot. This advertisement is to commercialize their Rs 4 Bonus card

offered to pre-paid consumers. The positioning of this as is as such as to as address

a different target group i.e. lower income groups/masses. Vodafone is trying to reach

the mass consumers by releasing shorter and Tiny Packs and Using Animated

Characters like Parrot Setji. The proposition is very strong and interesting. There

seems to be an attempt to connect with the price-conscious audience - therefore the

'common man' kind of talk. A similar ad was released by the company Vodafone

Blackberry Ads to target the urban growing youth who are price conscious but atthe same time want Value added services.

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8. SEGMENTATION

8.1BCGMATRIX

HIGH

Business

Growth

Rate

LOW

HIGH

STARS

PREPAIDSERVICES

CASH COWS

POSTPAIDSERVICES

LOW

QUESTION MARKS

MAGICHANDBOXES

DOGS

RELATIVE POSITION (MARKET SHARE)

Stars

Prepaid Services of Vodafone would be a star performer as the lower income

segment and rural areas prefers pre-paid connections. With the Customer

subscriber base growing steadily, Vodafone is keeping itself abreast with the

Industry growth rate by clocking a steady growth around the same margin

Cash cows

While the Wireless Telecom Sector may show an industry trend of 15% revenue

share in the Post-paid segment, Vodafone Postpaid Services is a Cashcow by

contributing a large proportion to the companys revenues

Question Marks

The Magic Handboxes offered by Vodafone would fall under this particular

category as the mobile Handset market in India is growing at a pace of about 9%

per annum and due to intense rivalry and many specialised players Vodafone is

not able to perform well in this particular area of interest.

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8.2ANSOFFsPRODUCTMARKETEXPANSIONGRID

Market Development

With the booming rural market in India, Vodafone should adopt a very proactiveapproach in reaching out to the new markets with its current flagship products

viz. the prepaid and post-paid plans. With Urban markets literally getting

saturated and also with increased competition Vodafone should concentrate on the

rural segment and the lower income group. Hence this would be a case of market

development in this particular regard.

Product Development

With respect to the Magic Hand boxes and Solar Powered Mobile phone offerings

of Vodafone, it would be a case of Product development strategy as it constantlycomes out with innovative new designs to satisfy the changing needs of its

customers. As of now Vodafone is concentrating its efforts only on the urban areas

with respect to Magic Hand boxes and although it has introduced its solar

powered phones particularly for the rural segment there have been lagging behind

in promotions for the same.

Current Products New Products

Current Markets

New markets

Market

Penetration

S

Market

Development

Product

Development

Strategy

Diversification

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9. MARKETINGMIX 7PsFORVODAFONE

9.1PRODUCT

A product with many different features provides customers with opportunities to

chat, play games, send and receive pictures, change ring tones, receive information

about travel and sporting events, obtain billing information and soon view video

clips and send video messages

Magic Hand boxes: Vodafone provides a range of magic boxes (mobile

handsets) at the lowest possible rates as a part of its offering to the markets.

It should embark on the low cost so as to attract the lower income segment.

Solar Powered Phones: Vodafone has already launched its solar powered

phones earlier this year. These new handsets are to benefit users in areas

with adequate sunlight and unstable electricity supply. Bonus cards: These are essentially prepaid cards that enable a larger

section of the society to stay connected. These can be easily purchased from

its stores and mini stores.

VAS: Vodafone offers a range of Value added services apart from its core

offerings. These include Tunes and Downloads, entertainment quotients like

music and movie related activities, devotional and sports quotients, regular

news and updates and call management services. Apart from these, special

offers and services are also offered on important festive occasions like Diwali

in order to provide maximum value to its customers. This would be a very

important component of differentiation considering the fact that almost all

players in the market are on an even playing field with respect to providing

the core products.

Vodafone products, top up coupons, a satisfied Zoo Zoo

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9.2PRICE

Vodafone wants to make its services accessible to as many people as possible:

from the young, high powered business executives, to the more mature users.

It offers various pricing structures to suit different customer groups.

Monthly price plans are available as well as prepay options. Phone users can

top up their phone on line

A number of schemes are being introduced from time to time to match the

customer needs, like unlimited free msg card, 1paisa per second call rates.

The top ups are available from Rs. 10.

Its pricing strategies varies accordingly by offering features like Filmy

recharges and SMS value packs targeted at the youth segment to features

like Apne minutes, bonus cards and longer validity schemes at a similar

pricing but targeted at the lower income segment

Magic hand boxes: Magic Hand boxes are products by which Vodafone can

attract customers from a variety of income groups and other demographic

characteristics. In order to make it available to a very wide section of the

audience Magic hand boxes are made available from prices as low as Rs.999

to Rs.9999.

9.3PLACE

Vodafone promotes its offerings through a host of over 4000001 stores located

across all the 23 telecom circles in the country. Stores have special offers, and

various point of sale posters in order to attract its customers.

Ads showing Zoo Zoo moods and accessibility of Vodafone services

1http://businesstoday.intoday.in/index.php?option=com_content&task=view&id=1892&Itemid=1&issueid=&limit=

1&limitstart=1

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9.4PROMOTIONS

Unlike the other telecom majors which rely heavily on Film stars and

cricketers to promote their brands, Vodafone has focused on advertising

campaigns like the Pug and Zoo Zoos and now the Parrot to have connect

with the people and also as a part of its strategy to be cost effective on the ad

production front.

ABOVE THE LINE: Advertising on TV, on billboards, in magazines and in

other media

outlets reaches large audiences and spreads the brand image and the

message very effectively. This is known as above the line promotion.

BELOW THE LINE: Stores have special offers, promotions and point of sale

posters to attract those inside the stores to buy. Vodafones stores, its

products and its staff all project the brand image.

9.5PEOPLE

Vodafone Essar India has an employee database of around 10,115 in the

financial year 2010 which is considered as a dedicated and passionate

workforce and one of the best customer service support teams. Fun is

incorporated in the work life of employees of Vodafone. Empowerment and

career development go simultaneously with all opportunities in Vodafone. Itprovides a dynamic environment and challenging opportunities to its

employees. Vodafone Essar Limited has received many awards over the years

such as the Best Mobile Service in India, Most Effective and Most Creative

Advertiser of the Year, and Most Respected Telecom Company. Moreover it

aims to reach the maximum number of people.

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9.6PROCESSES

Vodafone Essar India provides a wide variety of services in mobile communication

and other value added services by adopting an easy-to-use customer friendly

approach. All information about its basic and other valued services and various

promotional offers can be availed through a unique customer care number 111

which can be dialed from anywhere in India.

Vodafone ads and stores

9.7PHYSICALEVIDENCE

Physical Evidence is the element which allows the consumer again to make

judgments on the organization.

The most important physical evidence of for the Vodafone is its existing

customer base. The Vodafone Essar subscriber bases in the cities of India are:

City No. of customers

Kolkata 1,632,875

Mumbai

Delhi

Chennai

2989970

3002442

981996(Source: http://business.mapsofindia.com/communicationsindustry/companies/vodafone.html)

Existence of the customer care centers across the country, Vodafone mini

stores that are small in size but big in service, Vodafone stores; Vodafone

outlets are all a part of the physical evidence that facilitate the customer

judge the service.

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10. CONCLUSION

Vodafone as seen in the report has been a successful service provider and has been

able to make its mark by a large consumer base despite a tough competition in the

industry. The rebranding exercise was a huge success and the main credit goes to

the Zoo Zoo ads which were mainly used to promote the value added services of

Vodafone, these value added services now form a main part of the telecom industry.

However, Vodafone has till now achieved a higher growth share in the urban areas

as compared to the rural areas where it needs to focus on by implementing different

strategies that would ease the usage of their services for the rural customers as

well.

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11. REFERENCES

http://www.vodafone.in/

http://www.kpmg.com/Global/en/WhatWeDo/Advisory/Performance-

Technology/Business-Performance-Services/Pages/Vodafone-case-study.aspx

http://www.bharatbook.com/Market-Research-Reports/Asia-Pacific-Mobile-

Handset-Market-Analysis.html

Cellular Operators Association of India, October, 2010

http://www.thetimes100.co.uk/case-study--sponsorship-marketing-mix--41-

131-3.php

http://www.icmrindia.org/casestudies/catalogue/marketing/MKTG220.htm

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marketing of services vodafone

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