study of concepts of marketing of vadafone

7/31/2019 Study of Concepts of Marketing of Vadafone

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STUDY OF CONCEPTS OFMARKETING OF VADAFONE

Submitted by:-RAJAN KUMAR

BITM,PUNE


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Indian Telecom MarketSWOT OF Indian Telecom Market

VODAFONE INTRODUCTION

SWOT ANALYSIS OF VODAFONE

BCG MATRIX4ps

COMPETITORS

COMPETITIVE ANALYSIS

STP Analysis

PEST Analysis : A Environmental Scanning

Selection of channel members/dealers

RESPONSIBILITIES AND FUNCTIONS OF THE DEALERS

CONTENTS


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India is the fifth largest telecom services market in the world;$17.8 billion revenues in FY 2005

Industry grew by about 36% in FY 2005 over FY 2004

The Indian telecom market size of over $8.3 billion isexpected to treble itself by year 2011-2012, according toErnst & Young. "The Indian telecom market size of over $8.3billion is expected to treble itself by financial year2012. Thusthere is a significant opportunity for telecom players

Telecom market has grown at about 25% p.a. over the last 5

years Wireless segment subscriber base grew at 85% p.a.: fixed line

segment at about 10% p.a

Indian Telecom Market


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Strengths Huge Customer potential

Teledensity still being 48% and rural tele-density 21%.

The broadband subscribers grew from 0.18 million in 2005 to6.2 million as on30 April 2009 and about 7.98 million, at the end of the December 2009.

High Growth Rate

Wireless subscribers growing at a CAGR of 60 per cent per annum since 2004.

Allowed FDI limit ranging from 74% to 100% The total FDI equity inflows in telecom sector have been US$ 2223 million

during April-November 2009-10

High return on Investment

Easier to create economies of scale thereby increasing return on investment

Liberalization efforts by Govt.

The share of private sector in total telephone connections is now 82.33% as perthe latest statistics available for December 2009 as against a meager 5% in1999.

Lower capital expenditure

The Indian telecom market is a high density area, which means morepopulation per tower. This means lower capital expenditure cost.

SWOT OF Indian Telecom Market


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Poor Telecommunication Infrastructure

Result : Large number of call drops.

Late adopters of New Technology

India will be among the last countries in the world to get access to 3Gtechnology. Some estimates suggest that nearly 132 countries across

the world already have 3G technology and mobile services in one formor the other.

Most competitive market

10 to 12 companies offer mobile services in most parts of India, globally,the average is 4.

A market strongly regulated by Government. Difficult to enter because of requirement of huge financial resources.

E.g Auction of 3G license has reached Rs 15814.15 crores.

Weakness


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4G services

More Quality Service Mobile Number Portability will force the Service provider to improve their quality

to avoid losing subscribers

Value added Services (VAS) The mobile value added services include, text or SMS, menu based services,

downloading of music or ringtones, mobile TV, videos, streaming, sophisticated

m-commerce applications etc. Mobile banking, Mobile Ticketing etc

Boost to Telecom Manufacturing Companies Production of telecom equipments in value terms has increased from Rs. 412700

million (2007-08) to Rs.488000 million during 2008-09 and expected to increaseto Rs. 575840 million during 2009-10.

Telecom Equipment Exports The Indian telecom industry is expected to reach a size of Rs 344,921 crore by

2012 at a growth rate of over 26 per cent, and generate employmentopportunities for about 10 million people during the same period.The sectorwould create direct employment for 2.8 million people and for 7 million indirectly,according to a Frost and Sullivan report.

Opportunities


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Horizontal Integration

Entry Into other consumer segments leveraging the present channels

E.g. DTH service like Reliance BIG TV, Tata SKY, Airtel digital TV by telecommajors like Reliance, Tata and Airtel Respectively.

Other examples : Airtel website builder Providing fibre Connectivity to 2,50,000 village panchayat by 2012.

More scope in content related services, since, the consumer is influenced bylocal culture.

Local festivals like Baisakhi, Chhath Puja, religious festivals like Diwali,

Chrismas etc., National festivals like Independence Day etc.

Contd..


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Telecommunication Policies e.g. Trai's 2G direction affecting new players most notably Tata

Teleservices, Norways Telenor and Essar-owned Loop Telecom

Renewal of 2G license on the basis of market rates of 3G auctions

TRAI intentions of rolling out 4G or the fourth-generation technology,known as the ultra-broadband in 2-3 years raising fears rendering 3G

services somewhat obsolete.

Declining ARPU (average Revenue per user) E.g. price wars like per-second billing which is deflating revenues and

making sure the survival of the fittest

Partiality on the part of the Govt. E.g.Allowing 3G service in a PSU (MTNL,BSNL) before auctioning toPrivate Sector .

Content Piracy

Threats


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Public limited company, Incorporated in England

It has got a significant presence in Europe, the Middle East,Africa, Asia Pacific and the United States

Vodafone entered India in December 2005

Acquired 10 percent stake in Bharti Ventures Limited (Bharti

Airtel) Successfully rebranded 'Hutch' as 'Vodafone

Vodafone Essar started expanding its presence in India

The name was derived from the newly-found company's goal ofestablishing both voice (VO) and data (DA) services over amobile telephone network.

Speechmark logo, suggesting conversation

VODAFONE INTRODUCTION


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Strengths

Diversified geographical portfolio with strong mobiletelecommunications operations in Europe, the Middle East, Africa,Asia Pacific and to some extent the US

Network infrastructure

Leading presence in emerging markets such as India

Large customer base One of the most popular cellular service provider in India

One of the largest Telecom operator in the world

Only Indian operator, with VSNL, that has an international submarinecable

High brand visibility

Strong advertising with ZooZoo concept

Tieup with international sports like FormulaOne

SWOT ANALYSIS of VODAFONE


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WeaknessPrice competition from BSNL and MTNL

Untapped Rural Market

Opportunities

Focus on cost reductions improving returns

Research and development of new mobile technologies :-

Good Tarrif packages

Threats

Highly competitive marketNew entrant's low price offering

Saturation point in Basic telephony serviceMobile Number Portability


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Product:

A product with many different features provides customerswith 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.Vodafone live! provides on-the-move information services.

4 Ps


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Place:

Vodafone operates its own stores.

It also sells through independent retailers

Customers are able to see and handle products they areconsidering buying.

People are on hand to ensure customers needs are matchedwith the right product and to explain the different optionsavailable.

Price:

Vodafone wants to make its services accessible to as manypeople as possible: from the young, through apprentices andhigh powered business executives, to the more mature users.

It offers various pricing structures to suit different customergroups.

Monthly price plans are available as well as prepay options.Phone users can top up their phone on line.


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Prmotion

Vodafone works with icons such as Zoozoos & Pug tocommunicate its brandvalues.

Above the line

Advertising on TV, on billboards, in magazines and in othermedia outlets reaches large audiences and spreads the brandimage 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 postersto attract those inside the stores to buy.

Vodafone's stores, its products and its staff all project the brandimage.

Vodafone actively develops good public relations by sendingpress releases to national newspapers and magazines to explain

new products and ideas.
http://www.thetimes100.co.uk/glossary--icons-337.phphttp://www.thetimes100.co.uk/glossary--brand-19.phphttp://www.thetimes100.co.uk/glossary--values-683.phphttp://www.thetimes100.co.uk/glossary--above-line-1586.phphttp://www.thetimes100.co.uk/glossary--effectively-1477.phphttp://www.thetimes100.co.uk/glossary--below-line-707.phphttp://www.thetimes100.co.uk/glossary--point-sale-627.phphttp://www.thetimes100.co.uk/glossary--public-relations-851.phphttp://www.thetimes100.co.uk/glossary--press-releases-1747.phphttp://www.thetimes100.co.uk/glossary--press-releases-1747.phphttp://www.thetimes100.co.uk/glossary--public-relations-851.phphttp://www.thetimes100.co.uk/glossary--point-sale-627.phphttp://www.thetimes100.co.uk/glossary--below-line-707.phphttp://www.thetimes100.co.uk/glossary--effectively-1477.phphttp://www.thetimes100.co.uk/glossary--above-line-1586.phphttp://www.thetimes100.co.uk/glossary--values-683.phphttp://www.thetimes100.co.uk/glossary--brand-19.phphttp://www.thetimes100.co.uk/glossary--icons-337.php


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Competitive Analysis (Positioning Strategy)

Vodafone has veeredtowards warmth and

emotions.

Airtel is focused onfunctionally and efficiency.

Vodafone used the powerfulvisual imagery of a dog.

Airtel choose to use music,

which is not nearly as effective


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Competitive Analysis (Target Audience)

They are targeting middleclass person as their target

audience.

A group or class of personsenjoying superior

intellectual or social or

economic status

It can be justified by theirproduct like chota recharge.

Up market professionals


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Segmentation : Income

Age Service usage Life of service Geographical condition Nature of customer

Institutional Sole

Targeting Vodafone is adopting multi-segment approach .they are offering a

series of differentiated products to their respective markets. Home calling cards for the families of those professional who use to

work abroad. Rs. 10 recharge for small user. Cheap SMS facility for youth Facilities for circle users.

STP Analysis


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Positioning :

where you go the network follows you

Hutch , as a brand, always tried to connect with consumers in

simple, honest and real manner, while vodafone is more youngand fun brand. So consumer will see a shift reflecting a morevibrant brand.

The pug and actor Irfan Khan will be retained for the brand

position. They are talking about the exclusivity of the network and the

service they are offering to the customer.


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Political :Governmental and legal issues affecting how the companyoperates

Regulation

Infrastructure

Banning of phone use in certain circumstances

Health issues

Economic :

Factors affecting the purchasing power of the customers and the

companys cost of capital Cost of 3G license

Cost of calls being driven down

Worldwide recession

PEST Analysis : A EnvironmentalScanning


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Social :

Demographic and cultural aspects of environment whichinfluence customer need and market size

Health issues Demographic

Social trends

Picture phone

Mobile etiquette

Saturation point

Technological :

3G UMTS(2.5G)

GPRS/WAP

SMS / MMS


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Selection of channel members/dealers

A strict policy in selection of the dealers, and therefore it is necessaryto fulfill the following pre- requisites to be eligible to become adealer:

1) The dealers should have a sound financial background. The financialcapability of a dealer is solely depended on the discretion of thecompany officials.

2) The dealers should have a good market reputation, since thedealers help the customers in forming the first impression a customerhas about the company.

3) The dealer should have a good previous track record,i.e of timelypayments, no criminal background etc.

4) The dealers should have good market penetration. The companiesability to gain maximum customers in this era of competition solelydepends on the penetration the dealers have in the market.

5) The last criterion of dealers selection is the area the dealerscover.This would include different geographical areas which are

covered by a dealer


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RESPONSIBILITIES AND FUNCTIONS OF THE DEALERS As we believe in Customer Loyalty and thus It expects that their

dealers apart from selling paint products should perform thefollowing functions for better customer relations management:

1) Sales promotion through regular promotional schemes, roadshows, campaigns etc. the expenses incurred by the dealers is sharedby the company only if these activities are for promotion of thecompany and not of the dealer.

2) Recruitment- done under the guidance of certain officials 3) Training and development of manpower with company assistance 4) Servicing according to the size of orders 5) Customer relation management 6) Promote other products of the companyThe dealer should be in regular touch with the customer, keep taking hisfeedback and ensure maximum customer satisfaction. The dealer shouldalso try and convince the customer to try newer products of thecompany.The dealer has to thus cater to 3 major areas: Pre sale Selling Post sale services


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study of concepts of marketing of vadafone

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