“RETAILER , CUSTOMER STUDY FOR VODAFONE INDIA IN CUDDALORE DISTRICT TO IDENTIFY

EXISTING GAPS AND INCREASE MARKET SHARE OF VODAFONE”

By: Kulothungan Colbert DMS-Pondicherry University

GUIDED By Dr. B. RAJESWARI

Vodafone is the second largest operator in India after Airtel by subscriber base. In India Vodafone have 160 million customers as of December 2013. It also ranks second in terms of volume of data consumed after Germany.

In July 2011, Vodafone group agreed terms for the buyout of

its partner Essar from its Indian mobile phone business. The Vodafone paid $5.46 billion to its Indian counterpart to take Essar out of it 33% stake in Indian subsidiary. Vodafone owing 74% of the Indian business, while the other 26% will be owned by Indian investor, in compliance with Indian law.

  Vodafone has invested 59,000 cores since 2007, has grown to

become the third largest market for the company globally by revenue. In 2007, India was at No. 10 or 11. Today it is third largest market for us by revenue after Germany and UK.

COMPANY PROFILE:

Projects Undertaken Key Drivers Methodology. Findings & Analysis Recommendations.

Segmentation Sequence:

Cuddalore is bounded on the north by Viluppuram District, on the east by the Bay of Bengal, on the south by Nagapattinam District, and on the west by Perambalur District.

Some Important Parameters: Population (2011) Total 2,600,880 Density 702/km2 (1,820/sq mi) Urban 14.45%

Area of Study

Project Drivers:

Brandperceptio

n

exposure

Attention

Interpretation

memory

Stratified Sampling for initial Sample

Further Sampling through Convenience Sampling

Sample Size for retailer:70

Sample for Customer: 200

Methodology

• Stratified Sample• Convenience

Sampling

Exploratory

Retailer research:

Mapping existing prepaid & postpaid infrastructure of competition vis-à-vis Vodafone

Most preferred operator among retailers for doing business & the reasons for the same

Rating of products & process of 121 vis-à-vis competition Avenues of retailer earnings for competition vis-à-vis Vodafone Information on special products operated by competition for

specific counters/geography Service levels of all operators ( Product availability, DSE visits,

employee visits, retailer meets etc) Suggestions on building retailer intelligence in differentiating

Vodafone compared to competition

Objectives

Customer research:  Identifying potential niche market segments to extract new

acquisitions Observations related to standard buying trends of the geography Preferred operator among customers & the reasons for the same Factors determining customers purchase decision % of dual SIM customers in the sample. Primary & secondary SIM

of dual SIM users & the reason for choosing the secondary SIM Usage behavior in primary & secondary SIM Suggestions on improving Vodafone’s perception in your market

through products, process, MARCOM, channel

This survey was conducted among 70 retailers belonging to Manjakuppam , Vellaigate ,Pudhupalayam , Devenampatiinam , Semmankuppam ,Semmandalam ,Silver Beach , Vannarapalayam , Collector Office road ,KaramaniKuppam , Kumaramangalam , Gondur , Chavadi , Woodlands ,Cuddalore Bus stand and Cuddalore NT belonging to Cuddalore District .

The aim of this survey is to understand retailer behaviour and preferences among this group .

RETAILER SURVEY

This survey was conducted among 200 customers belonging to Manjakuppam , Vellaigate ,Pudhupalayam , Devenampatiinam , Semmankuppam ,Semmandalam ,Silver Beach , Vannarapalayam , Collector Office road ,KaramaniKuppam , Kumaramangalam , Gondur , Chavadi , Woodlands ,Cuddalore Bus stand and Cuddalore NT belonging to Cuddalore District .

The aim of this survey is to understand customer perception and preferences among this group .

CUSTOMER SURVEY

What network are you using?

71

51

34

44

AircelAirtelVodafoneOthers

Why do prefer that network

Tariff

Serv

ice

My

frien

ds u

se it

Past

Exp

erie

nce

0

20

40

60

80

100

120

In case of dual SIM which is your primary SIM?

0

100

What is your reason for choosing that operator ?

38

54

216

NetworkCall TariffInternetProduct

Split of Vodafone retailers by type

Telecom shops Kirana Shops0

5

10

15

20

25

30

35

40

45

50

Rate the Operators on the following parameters ( Scale of 1-5 with 5 being the highest)

150 Aircel

122 Airtel

121 Vodafone

122 Idea

0 1 2 3 4 5

SMS/RoamingBoosterDataFull Talk time earn-ingTotal Retailer earn-ingsEase of Use

What is your secondary SIM ?

Aircel

Airtel

Vodafone

Idea

Others

RETAILER FOCUS:

Brand Association

Growth

Feedback MechanismChange

Performance incentives

SEARCH ANALYSIS:Which among the below Supports / motivations are

rendered by the below Operators?

SAC

Retailer Recognition as special outlets

Special Branding

Additional Margin

Distributor Credit

Gifts and Tours

Aircel Y N N Y Y Y

Airtel N Y Y Y N N

VodafoneN N Y Y N N

Idea Y Y Y Y Y Y

Others Y N N N N N

Activations Issues:  

◦ There were many instances of faster activations done by competitors, especially Aircel and Idea in the territory.

◦ Operational problems in rejection messages not being sent to alternate number.

◦ Competitors ‘adjusting’ the CAF documents, many instances of our rejected documents being accepted by competitors.

Findings:

Higher rates in Bonus Cards 

◦ Competitors such as Idea, Aircel, Airtel and Docomo offer lower FTT.

Problems with the Distributor :

◦ 27.7 % retailers had Issues with Current/Previous Distributors

◦ Stock availability◦ Promotions

Findings:

Based on the data, findings and my analysis I suggest the following findings to improve retailer’s involvement

Quarterly retailer Recognition awards Special recognition for retailers doing 15 days activations per month Expand Width of distribution with introduction of offers for niche segments

such as migration customers. Provide One Time Activating Bonus to Rural retailers Increase True Activating Outlet base Improving the feedback mechanism and involve in active issue resolution Recognize retailer efforts and provide token appreciations in Vodafone

Santhippu so that they feel like they are contributing to a cause. Visibility is very low because of Predators / Competitors (Airtel & Aircel )

have better merchandize in terms of quality and quantity. Our focus should be on making sure the customer/potential customer recognizes our brand.

RECOMMENDATIONS:

CUSTOMERS FOCUS:

Brand Recongnition

Instant Activation

Product fit Focus on Dual Sim users

Localized Offers

Why do prefer that network

0

20

40

60

80

100

120

Tariff Service My friends use it Past Experience

Who/What influences your Purchase Decision

Friends

Availability

Advertisements

Past Experience

Based on the data, findings and my analysis I suggest the following findings to improve customer involvement 

Anybody who expects quality does prefer Vodafone, However it’s packs and offers are not in sync with customer sentiments.

It has been observed that a number of dual SIM users use Vodafone SIM for network coverage and data services. By introducing competitive talk time packs ,We can bring in newer dual SIM users leveraging the above points

The perception is that total Cost of Ownership is higher for Vodafone which is deterring students and labor class which forms a majority in Cuddalore .

Regionalized ads : This is something which has an instant connect with the customer , Our ads are Pan India which doesn’t ring a bill with the Cuddalore customer.

I observed that attrition rate is very low among Vodafone users. By providing one time attractive offers, we will be able to bring in customers who will stay with Vodafone because of its superior service and network

Visibility is very low because of Predators / Competitors (Airtel & Aircel) have better merchandize in terms of quality and quantity. Our focus should be on making sure the customer/potential customer recognizes our brand.

Focus on targeting Self help groups / Niche markets through Mpaisa .Being a first mover in this area will have its own fruits in the long run.

RECOMMENDATIONS:

HSW Policy

THANK YOU!!!