ASummer Internship Project

on

Capturing Evolution of Telecom Sector in India with Special Emphasis to Vodafone GujaratComparative Study of Vodafone Products & Services vis-à-vis other Telecom Sectors of Gujarat

AtBaroda & Surat

Essar Ltd.

ByMANOJ M.SHARMA

MBA 2009-11

SOM-LALIT INSTITUTE OF BUSINESS MANAGEMENT

Executive SummaryCellular Industry in IndiaRequirement of highly Competitive MarketRole of RetailersRetailers Survey Findings : -70% Retailer Ranked Vodafone No.1 - 80% Retailers were Satisfied - 90% Successful BrandingCustomers Survey Findings : - Preference of customers - awareness amongst customers - customer satisfaction levelSnapshots of Findings : - Vodafone awareness is very high - Network Issues - Dissatisfaction due to Tata Docomo - Vodafone in excellent Health

Ch-1 Indian Telecom Industry -An Overview-

Introduction to Telecom Sector in World

Introduction to Telecom Industry in India

Contribution of Telecom Services to -National Economical Growth-

• Telecom Sector contributes 1.5% to National GDP

• India added 113.26 million new customers in 2008, the largest globally. The country’s cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month.

• It is projected that the industry will generate revenues worth US$ 43

billion in 2009-10. In this report we have tried to capture most of the areas of Telecom Industry.

Tele-Density of India

Major Happenings of Telecom Sector

• Liberalization• National Telecom Policy 1994• New Telecom Policy 1999• TRAI

Cell Phones an overview

• GSM• CDMA

Technological Adaptations

• 2G Services• 3G Services• Broadband Wireless Services

Origin of Various Players in India in last One Decade

• BSNL• BHARTI AIRTEL• MTNL• RELIANCE INFOCOMM• TATA TELESERVICES• VSNL• VODAFONE• IDEA• TATA DOCOMO• UNINOR

Telecom Market Share in 2010

• Bharti Airtel : 134.7 million (30.86%)• Vodafone Essar : 106.1 million (23.87%)• IDEA : 79.8 million (15.19%)• BSNL : 59.4 million (15.08%)• Aircel : 43.0 million (8.38%)• Reliance Telecom : 25.7 million (4.0%)• MTNL : 14.6 million (1.17%)• Loop Mobile : 2.7 million (0.69%)• Uninor : 2.5 million (0.64%)• STel : 0.5 million (0.13%)

Total Users: 469.69 million ( 1st Jan 2010)

Ch-2 -Vodafone-

A leading MNC in Cellular Industry

Vodafone Company Profile

• Vision of the Company• Passion of the Company - Passion for Customers - Passion for People - Passion for Result

- Passion for the world around them • Mission of the company

Hutch is Now Vodafone

Organizational Structure of Vodafone India

Introduction to Products & Services

• Product Review• Technology• Services - Voice - Data - Services - Fixed & Other Services

Vodafone Services

• Vodafone Office• Vodafone Live ! – Internet on mobile• Vodafone Mobile connect• Vodafone Mobile connect card• Mobile Advertising• Vodafone handsets• Vodafone handy phone• Vodafone Business handsets• Magic Box Handsets

Vodafone Roaming Services selects Roam ware Solution

VAS Provided by the Company

TEXT•P2P Sms•P2A Sms•A2P Sms

VOICE•Caller Tunes•In-Dial •Voice Packs

DATA•Browsing•Downloading

Marketing Strategies

• Promotional Strategies -Revenue Simulation -Cost Reduction -Delivering total Communication -Delivering Strong growth

• Sustainable Strategies

Mobile Number Portability

Ch-3 –Retailer & Consumer Survey-Analysis & Findings

Objectives of Research

• Objectives Of Retailers Survey :• Recharge Sales ( Revenue ) – ( Vodafone vs. Competitors )• Retailer Servicing – Comparative Study of Various Players• Retailer Awareness of tariff and Schemes• Perception of Vodafone Services in Retail• Customer Brand Preference as per retailer• To access the operator wise penetration in the limited available space

of retailers shop

• Objectives Of Customers Survey :• Customers Preferences while taking a new connection• Perception of customer towards Vodafone• Evaluation of Sources of Brand Awareness of Vodafone• Capturing probable Fall-Outs of MNP with specific reasons• Overall impression of Vodafone

Methodology of Survey Findings• Sample Size : 100 Respondents ( 80% Male & 20% Female ) 20 Retailers ( Baroda City) 30 Customers ( Baroda City) 20 Retailers ( Surat City) 30 Customers (Surat City) • Location Of Survey : Baroda & Surat City • Demographic Distribution of Customers : Total 60 Customers ( Baroda & Surat) 16 – Private Sector Employees 4 - Businessman 20 – Students 20 – Auto Drivers

• Type of Connection : 80 % Pre-Paid 20 % Post-Paid

• Mode of Survey : Questionnaire

Findings From Customers Survey Analysis : 1 ) Customers Preferences while Taking a new connection : Total Respondents : 60 customers 15 customers – Call Charges 20 customers – Services 15 customers – Availability 10 customers - Brand Image

Call Charges Services Availability Brand Image0%

5%

10%

15%

20%

25%

30%

35%

Customers Preferences while Taking a New Connection

Sources Of Brand Awareness :• Total Respondents : 60 Customers

30 Customers : Aware of Various Service of Vodafone through friends16 Customers : Aware of Various Service of Vodafone through Advertisements10 Customers : Aware of Various Service of Vodafone through Newspapers4 Customers : Aware of Various Service of Vodafone through Hoardings

Through Friends Newspapers Advertisements Hoardings0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Brand Awareness

Capturing Fall-Outs Of MNP :• Total Respondents : 60 Customers 28 Out of 60 (47%) would like to switch of their Present operator Service after MNP. • 15 Customers – Due to High Call Charges• 10 Customers – To Try a new operator• 3 Customers – Due to Other Reasons ( GPRS Speed , Better Network Coverage )

Due to Call Charges

Try New Operator

Other reasons

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Reasons for Obtaining for MNP

Customers Perception Towards Vodafone :• Total Respondents Surveyed : 48 Customers 9 Customers – Excellent 21 Customers – Good 15 Customers – Satisfied 3 Customers - Dissatisfied

Excellent Good Satisfied Dissatisfied0%

5%

10%

15%

20%

25%

30%

35%

40%

Customers Perception towards Vodafone

Findings From Retailers Survey Analysis :

• Retailers Ranking : ( Maximum Recharges in a Month )• Total Respondents : 40 Retailers• 1 Vodafone – 70%• 2 Airtel - 25%• 3 Reliance - 3%• 4 Idea - 2%

Vodafone 70%

Airtel25%

Reliance3%

Idea2%

Retailers Ranking (Maximum Recharges In a Month)

Quality of Service of Vodafone to Retailers : • Total Respondents : 40 Retailers • 32 Retailers : Satisfied• 8 Retailers : Dissatisfied

Satisfied Dissatisfied0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Retailers View Towards Vodafone Service Quality

Branding at Retailer Point :OPERATOR SIGNAGE LOLLYPOP BRANDED

BACKDROP SHEET

PREPAID CARD HOLDER

CAMPAIGN BASED POS

BRANDED BALLONS

VODAFONE √ √ √ √ √ √

AIRTEL √ √ √

IDEA √ √ √

RELIANCE √ √

TATA DOCOMO

√ √ √

VIDEOCON √ √

SWOT ANALYSIS • 1 ) STRENGTH : • Excellent Service Quality• Minimum Call Charges• Customer Oriented Tariff Plans & Schemes• Availability of 24*7 highly qualified team• Maximum market share in Gujarat • 2 ) WEAKNESS :• Some retailers were talking about network issues in some areas of Surat • 3 ) OPPURTUNITIES :• Maximum Revenue can be generated through 3G Service• Can acquire 50 % Market Share through Present Growth Rate in Gujarat• Airtel Customers are facing problems in postpaid billing while Tata Docomo has network issues and

availability of recharge coupons.• Hence Summarizing this; it’s a good Opportunity for Vodafone as they are front-line Players in

the Cellular Market• With better rural network coverage; Vodafone Gujarat has best opportunity to take 1st Mover advantage• • 4 ) THREATS :• Aggressive new entrants bringing in lots of Schemes and Products and creating Cluster in the market• Hence Vodafone has to prove actively attack and defense against each new entrant with a specific strategy

to retain its No.1 Position in Gujarat • This being a Critical Time, Vodafone will be required to deliver its best.

VODAFONE MARKETING MIX

• PRODUCT• PLACE • PRICE • PROMOTION

MAJOR FINDINGS

• Awareness about Vodafone Brand• Non-Vodafone customers desires to shift to it if they provide

low call rates• Complaints regarding wrong billing from Airtel postpaid

customers• Effect of advertisements• Some regions having low frequency of Signals

MAJOR SUGGESTIONS

• Vodafone to take lead and initiative in launching various Pre-Paid Schemes

• Vodafone to give lower rental plans and free-bees to potential Customers of Post Paid

• Retailers need more branding products to promote Vodafone as market goes with a cluster of Various Players

• To further improve network services in the city ( Baroda & Surat ) as few customers and retailers complain of in Peak Hours ( 16:00 to 20:00 Hrs)

BIBLIOGRAPHY

• MAGAZINES/PERIODICALS:

• Marketing Management- Philip Kotler 13th Edition• India today• Brochures & Pamphlets of Vodafone Essar • Web References

• www.vodafone.in• www.indiatelecomnews.com• www.telecomtigers.com• www.telecomyatra.com• www.trai.com• www.cellular-news.com

THANK YOU