Project on Emerging Strategy in Telecom

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Introduction to Telecom Industry
The telecom network in India is the fifth largest network in the world meeting up with global
standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to Indias GDP.
The Indian Telecommunications network with 110.01 million connections is the fifth largest
in the world and the second largest among the emerging economies of Asia. Today, it is the
fastest growing market in the world and represents unique opportunities for U.S. companies
in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005,
is expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million broadband
connections and 18 million internet connections by 2007. The wireless subscriber base has
jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two
out of every three new telephone subscribers were wireless subscribers. Consequently,
wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only
40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers
per month by 2007. The wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9
GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro
cities, covering 2000 towns across the country

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Cellular Market Structure in India
As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed to
operate in designated geographical operating areas. The service areas include four metro
areas and 18 circles categorized as A, B and C. (The categorization is based on the revenue
Proceedings of the 36th Hawaii International Conference on System Sciences).
The potential with category C circles in the lower end of the scale. For example the metros
account for 40% of the subscriber population, with Category-A, B and C accounting for 33%,
23% and 4% respectively. The CMSPs had to pay an entry fee and subsequently annual
license fee as a percentage of their revenue to the Department of Telecommunications.
The entry and license fees varied according to the service area, highest for metros and lowest
for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and
their licenses were revoked leading to a monopoly situation in certain areas. Apart from these
charges, each CMSP has to share the revenue with the long distance operators for carrying
inter-service area calls.In profitable metros and circles, the competition is severe and the
market is split between the two operators. In a price-cap regulated market, the operators use
appropriate pricing strategy to win customers and win market share. In highly price-elastic
markets, such as in India, as the service provider reduces the price, the subscriber base
increases considerably, and so is the network traffic. The increased network traffic decreases
the performance and the quality of service, inviting customers to switch. Being a new entrant
in a metro area, the government operator reduced the airtime charges to such an extent that
the subscriber base increased suddenly leading to poor network performance. The operator
did not have enough network capacity to handle calls leading to blocking of calls, with
frustrated customers switching over immediately to competitors.

The Churn in the Cellular Industry:

As like the other products Cellular industry has not been left untouched from the Churn
(switching over). During the survey this fact comes to the fore. According to the cellular
operators, there is a normal seven to eight percent churn in the customers, especially in the
pre-paid category. Among the post-paid customers, the Churn is much lower about two-three
percent.
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They say that one significant change that has happened in the last few months, more so since
lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges are
concerned incoming calls has been set free while they are charging reasonably only for the
outgoing ones has changed. A tariff re-balancing has definitely taken place.
This means that the cellular operators are encouraging their subscribers to not just receive
calls, but also make calls increasing the usage of the service. With falling tariffs, cellular
operators are convinced that increasing usage is one way to ensure that average revenue per
user (ARPU) does not fall very low. The industry figure for ARPU is believed to be about
Rs.1,100 while it may vary from operator to operator. The operators are also concentrating on
introducing more value added services to the customers. Value-added services have not really
taken off. Only the SMS (short messaging service) has really caught on, but operators like
Bharti are bringing in services like music messaging and concierge facility for its subscribers.

Project on Emerging Strategy in Telecom

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Company Profile
Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is the
largest mobile telecommunications network company in the world by turnover and has a
market value of about 75 billion (August 2008). Vodafone currently has operations in 25
countries and partner networks in a further 42 countries.
The name Vodafone comes from Voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones."
As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5
continents. On this measure, it is the second largest mobile telecom group in the world behind
China Mobile.
In the United States, Vodafone owns 45% of Verizon Wireless.

History:
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK
cellular telephone network licenses. The network, known as Racal Vodafone was 80% owned
by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5%
respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed
Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal Electronics
bought out the minority shareholders of Vodafone for GB110 million.In September 1988 the
company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics
floated 20% of the company. The flotation valued Racal Telecom at GB1.7 billion On 16
September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group.In
July 1996 Vodafone acquired the two thirds of Talkland it did not already own for 30.6
million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for
77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's
network. In a similar move the company acquired the 80% of Astec Communications that it
did not own, a service provider with 21 stores.

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In 1997 Vodafone introduced its Speech mark logo, as it is a quotation mark in a circle; the
O's in the Vodafone logotype are opening and closing quotation marks, suggesting
conversation.
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc. and
changed its name to Vodafone Airtouch plc. Trading of the new company commenced on 30
June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobilfunk. The
acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile
network.

Vodafones original logo used until the introduction of the speech mark logo in 1998. On
21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of Bell
Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000.
In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was rejected.
Vodafone's interest in Mannesmann had been increased by the latter's purchase of Orange, the
UK mobile operator. Chris Gent would later say Mannesmann's move into the UK broke a
"gentleman's agreement" not to compete in each other's home territory. The hostile takeover
provoked strong protest in Germany and a "titanic struggle" which saw Mannesmann resists
Vodafone's efforts. However, on 3 February 2000 the Mannesmann board agreed to an
increased offer of 112bn, then the largest corporate merger ever. The EU approved the
merger in April 2000. The conglomerate was subsequently broken up and all manufacturing
related operations sold off.
On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In April
2001 the first 3G voice call was made on Vodafone United Kingdom's 3G network. In 2001
the Company took over Eircell, then part of eircom in Ireland, and rebranded it as Vodafone
Ireland. It then went on to acquire Japan's third-largest mobile operator J-Phone, which had
introduced camera phones first in Japan.
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On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by signing
TDC Mobil of Denmark. The new concept involved the introduction of Vodafone
international services to the local market, without the need of investment by Vodafone. The
concept would be used to extend the Vodafone brand and services into markets where it does
not have stakes in local operators. Vodafone services would be marketed under the dual-brand
scheme, where the Vodafone brand is added at the end of the local brand. (i.e., TDC MobilVodafone etc.)
In February 2002 Finland was added into the mobile community, as Radiolinja is signed as a
Partner Network. Radiolinja later changed its named to Elisa. Later that year the Company
rebranded Japan's J-sky mobile internet service as Vodafone live! and on 3 December 2002
the Vodafone brand was introduced in the Estonian market with signing of a Partner Network
Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed its name to Elisa.
On 7 January 2003 the Company signed a group-wide Partner agreement with mobilkom
Austria. As a result, Austria, Croatia, and Slovenia were added to the community. In April
2003 Og Vodafone was introduced in the Icelandic market and in May 2003 Vodafone Italy
(Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21 July 2003 Lithuania was added
to the community, with the signing of a Partner Network agreement with Bit.
In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg's
LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to rename its
mobile phone operations to Cytamobile-Vodafone. In April 2004 the Company purchased
Singlepoint airtime provider from John Caudwell (Caudwell Group) and approx 1.5million
customers onto its base for 405million, adding sites in Stoke on Trent (England) to existing
sites in Newbury (HQ), Birmingham, Warrington and Banbury. In November 2004 Vodafone
introduced 3G services into Europe.

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VODAFONE:
Today, in India, becomes Vodafone. Now, the pink color logo of Hutch is replaced by
Vodafone Essars corporate red colored one.
In 2005-06, the Orange brand in Mumbai was phased out to introduce (now Vodafone). The
company also changed the colors of its logo from orange to pink and then red.
After acquiring 67 per cent of stake (around Rs. 250 crores) in ison Essar from Hong Kongbased ison Whampoa, Vodafone Essar is expecting to touch over 35 million customers across
400,000 shops and thousands of s own employees along with employees of its business
associates.
Vice chairman, Ravi Ruia, Vodafone Essar, said Weve had a good innings as in India
and today marks a new beginning for us, not as a departure from the fundamentals that
created , but an acceleration into the future with Vodafones global expertise.
Vodafone CEO, Marten Pieters of the Vodafone Essar will be landing in India for the
meeting that would discuss branding exercise, expansion plans, spectrum requirements for its
expanding subscriber base and future plans.
Vodafone offers a host of premier value added services (VAS) including national and
international roaming in over 70 countries in over 160 networks, Wireless Application
Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket
updates, M-banking, general information, tarot line, etc. The company launched WAP in
Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in
December 2000. The company has been a prime mover in introducing these value-added
services in the Delhi circle.
The values are stated simply. To be fair and transparent in what they do and how they do it.
To provide the quality services with more customer friendly practices. To make ones
communications experience simple, pleasurable and fun. Where he doesn't simply get
technology - but technology that is relevant. Where solutions are not just promised in the
future - but delivered in the present.

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CORE VALUES :
We shall uphold the dignity of the individual.
We shall honor all commitments.
We shall be committed to Quality, Innovation and Growth in every endeavor .
We shall be responsible corporate citizens.

Vodafone Logo

Accomplishments:
-

Over the years, Vodafone Essar, under the Hutch brand, has been named the Most
Respected Telecom Company, the Best Mobile Service in the country and the
Most Creative and Most Effective Advertiser of the Year.

Vodafone is the worlds leading international mobile communications group with

approximately 315 million proportionate customers as at 30 June 2009.

Vodafone currently has equity interests in 31 countries across five continents and
around 40 partner networks worldwide

The Essar Group is a diversified business corporation with a balanced portfolio of

assets in the manufacturing and services sectors of Steel, Energy, Power,
Communications, Shipping Ports & Logistics, and Projects.

Essar employs more than 50,000 people across offices in Asia, Africa, Europe and the
Americas.

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-

The company now has operations across the country with over 78.68 million
customers.

Services:
Staying connected becomes a lot easier with Vodafone. We have a wide range of
services you can access right from your Vodafone phone. From cell banking to
flight updates to call management services, get all that you want, instantly.

Prepaid services(latest):
-

Vodafone Essar, one of Indias leading cellular service providers announced a new
Bonus Card 25 for its prepaid customers in Punjab. With this new bonus card,
Vodafone customers can enjoy the benefit of unlimited national SMS at just
20paisa/SMS. The new bonus card comes with 30 days validity.

Postpaid services(latest):

- Vodafone Essar, one of Indias leading cellular services providers has launched three
new monthly rental plans - Budget 500, Budget 750 and Budget 1000 - for its
postpaid customers in Kolkata and West Bengal. These Budget plans offer
combinations of free minutes over local and STD calls along with free local SMS.
This offer is valid for new and existing customers.
Sridhar Rao, Chief Executive Officer, Vodafone Essar East Limited, said
These budget plans will specially appeal to customers with high usage who can now
manage their mobile bills without compromising on talktime or SMS volume.

- Announced a special offer for its customers in Madhya Pradesh and Chhattisgarh.
Customers can now avail free VIP numbers with every new post paid connection. The
VIP numbers provide customers an option to choose a number of their preference
from a range of special Golden numbers that usually comes with a huge price tag.
Vodafone Online:

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Get all the useful information you need directly on your Vodafone phone - with Vodafone
Online. Including cricket, finance, entertainment, weather, astrology and more.
Simply go to the Vodafone Online menu on your Vodafone phone. If you do not see the
Vodafone Online menu on your phone, send HELP to 123. We will send you the list of
keywords.
Scroll to the topic on which you need information.

Select

the

information

and

key

input

as

requested

on

the

screen.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.
MTNL Directory:
With this facility you can get to know the address and telephone no. of MTNL users.you will
be charged Rs.2 per outgoing message.
STD / ISD Codes:
You don't need to look up your diary or a phone directory to find out STD and ISD codes.
You can find it directly through your Vodafone phone.
Ringtones & Logos:
Now you can change the ringtone on your Vodafone phone according to your
moods. You can download logos as well. With the Vodafone and Yahoo! tieup you
have hundreds of tunes and logos to choose from.
For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of
SMS sent). For every logo/picture message downloaded, you will charged Rs.
3.00 (including the cost of SMS sent).

Flash & Blink

Vodafone now offers you two exciting ways to send messages. You can make your message flash
directly on your recipients screen instead of the inbox. You can also highlight the important parts of
your message through blinks. So your text messages become not only more visible, but more effective
too.

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You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Dial-in Services
Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to check
cricket scores, horoscope, up-to-the minute news and other relevant information on services
that touch your everyday life.
All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).
Here's a shortlist of services you can access There are occasions when you may not
want to take a call, or your Vodafone phone maybe busy or simply unreachable.
By paying a nominal monthly access fee, you can now retrieve your messages at
your convenience. Even if you are roaming, you can retrieve your messages
from your voice mailbox through a fixed line, anywhere on earth.

Your Vodafone voicemail can

Hold up over 17 messages at a time.
Receive a message that lasts up to 90 seconds.
Store a message for as long as you want.
You can also record your voice signature and welcome message.
Calling Line Identification
You can check your caller's telephone name and number on your phone screen whenever you
receive a call. This gives you the flexibility to either accept or reject an incoming call. This
service is also helpful in identifying your missed calls
You can access this service by just paying Rs. 49 per month, if you are a postpaid customer.
This service is absolutely free if you are a Vodafone Prepaid customer.
Itemized Billing
As a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end of
each month. This is a detailed billing statement which helps you keep track of all your calls.
Your itemized bill includes:
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Origin of the call
Destination of the call
Duration of the call
Toll charges
Airtime and total charge
Get your itemized bill.
Via post: Pay a monthly rental of 49 only.
Fax & Data Services
This service enables you to constantly keep in touch with your office, colleagues
and information sources. You can send or receive faxes and transmit data using
your Vodafone phone anytime, anywhere. Whether you are operating from
home,

Hotels

and

airport

lobbies.

At speeds of up to 9600 bps within the network or while roaming. You can even
access the Internet.
All you need is a handset compatible data card (PC Card) or a GSM Software,
and a data chord cable with a PC to set up a mobile office.You can also opt for
either Vodafone Fax or Vodafone Data services independently.Your Vodafone fax
number can help you differentiate between incoming voice calls and fax
transmissions. You can also send and receive faxes anywhere on earth with your
Vodafone phoneBy opting for the Vodafone Data Services you can access e-mail,
databases and the Internet. All on your single incoming data number.
Charges to activate the Vodafone Fax and Data service, you just need to pay a
one-time activation fee of Rs 500. To access the Fax service, the fee is Rs. 250.
The usage charges are nominal at Re 1 per minute.

Call Management Services

There may be occasions when you need to conference with up to six people at a
time or talk to just two. Or you are speaking to someone and want to forward an

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incoming call to another phone. With your Vodafone phone, you can do this and
more. Vodafonehelps you manage your calls effortlessly so that you stay in
control of your conversations, always.

Voice Response
Get your Vodafone phone to respond directly to your commands. Custom
designed to recognize Indian voices and accents, the Voice Response service
makes your life more convenient. You can get the latest updates on news,
stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1
minute pulse).

Voice Messaging
Voice Messaging has become even more affordable. You can now send voice messages to
cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min*
(as against Rs.4.95 per min earlier).

Yahoo! Messenger For SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive
Vodafone-Yahoo! tie-up, you can easily get connected through your Vodafone phone.This
unique messenger comes with a lot of exciting features. You can connect with all Yahoo!
Messenger users, send, receive and reply to instant messages, view and manage your friend
list and also manage authorization requests. All this and more just by using SMS. You will be
charged Rs. 2 per outgoing message. Incoming messages are free.
Cell Banking
Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account and
transact directly on your Vodafone phone by sending text messages. The first of its kind in
India, this service enables you to conduct your banking without having to visit the bank or
making a call. You can do Cell Banking from over 90 countries worldwide.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
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Roaming
Now you can always stay connected, no matter where you are. With the
Vodafone Roaming facility, you can use your Vodafone phone in over 100
countries worldwide and over 1000 cities, towns and highways across India.
Vodafone Roaming makes life easy and convenient for you.

- Vodafone Essar, one of Indias leading cellular services providers, today announced
significant reduction in international roaming rates for its Postpaid customers
traveling to South Africa during the upcoming DLF Indian Premier League (IPL)
cricket tournament. Vodafone Essar is the official partner to DLF IPL 2009
One number across the globe
Your Vodafone phone number and PIN number remains the same whether you
are in Delhi, Chandigarh, London, Paris or anywhere else in the world.
National and International Roaming on Vodafone Prepaid
Roaming on Vodafone Prepaid gives you the most extensive coverage in over
1000 cities, towns and highways across India, and in over 100 countries around
the world. Enjoy Roaming on your Vodafone Prepaid card and stay in touch
wherever you go.

Yahoo! Mail For SMS

You can now directly access your email account on Yahoo! Mail on your Vodafone phone. Whats
more, you do not need a WAP enabled handset for this service as it is based on SMS. So gain freedom
from your PC and access your Yahoo! mails anytime, anywhere on your Vodafone phone. You will be
charged Rs. 2 per outgoing message. Incoming messages are free.

WAP
With WAP, you can have the Internet directly in your pocket. So if you are
looking for quick and easy delivery of information and services, your Vodafone
phone can show it all. Use it to check out news, finance, shopping,

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entertainment, travel, entertainment and city service information etc. To access
this service all you need is a WAP enabled handset and WAP services activated
on your Vodafone phone. This service comes to you at a nominal charge of Re. 1
per minute (1 min pulse).

Group Messaging
Party invitations, movie outings, festive greetings... whatever be the occasion, you can send
your message to all your friends at one go!
With Group Messaging from Vodafone, you can thus save yourself the bother of
painstakingly sending your message to one person at a time whether you are on Vodafone
Prepaid or Postpaid.
Vodafone4help
Vodafone4help now lets you take advantage of a lot more services than before. You can
connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are
stranded in the middle of the road, or if you you need immediate medical attention or if you
are looking for a police station close by, Vodafone4help gives you instant access to your
nearest source of help, anywhere in Delhi or the NCR.
All the help services are charged@Rs.6/min. while for police and fire help only local airtime
charge is applicable.

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Vodafone Essar

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 21 telecom
circles in India. Despite the official name being Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is
especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and
1800 MHz digital GSM technology, offering voice and data services in 22 of the country's 23
licence areas.
Ownership:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals,
15%.On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held
by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8,
2007.

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Previous brands:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its
services under a single identity. The Company entered into agreement with NTT DoCoMo to
launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous owner,
Hutchison. However, the brand was marketed as Hutch. After getting the necessary
government approvals with regards to the acquisition of a majority by the Vodafone Group,
the company was rebranded as Vodafone Essar. The marketing brand was officially changed
to Vodafone on 20 September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition
exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile
transition being unveiled today. Along with the transition, cheap cell phones have been
launched in the Indian market under the Vodafone brand. There are plans to launch cobranded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage
Vodafone Group's global scale in bringing millions of low-cost handsets from across-theworld into India."
While there is no revealing the prices of the low-cost Vodafone handsets, the industry is
abuzz that prices might start at Rs 666, undercutting Reliance Communications' much-hyped
'Rang Barse' with cheap handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset
offers -- rather handset-bundled schemes for customers.

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Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is
expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a
global low-cost handset procurement deal with ZTE

SWOT
STRENGTHS: Vodafone has its brand image and its ranking is 2nd in world. So here one
thing is conform that Vodafone has good network and outstanding services thats why its
users are most after china mobiles. At gave some special packages to attract customers. It can
offer international roaming facility more than any network in India. Financially Vodafone is
strong and is able to invest heavy amount in India.

WEAKNESS : It has to take license from PTA and act according to rules of India due to
which it may not give its special services like 3G,vedio calling and call to someone by
hiding your phone number.
OPPORTUNITIES: Vodafone can capture Asian market if it can grow in India ,55% of
population of India is young and mobile phones are most commonly used by young ones.
Demographs of India tell us that in this company Vodafone can earn heavy amount of
revenue. Total mobile users in India is 89.9 million and the population of the country is 1.15
billion. So there is space for market penetration . If Vodafone offers some special packages
for limited time then customer of other networks may switch. Vodafone have better
technology so it can capture the customers of the other networks as well. With India
Vodafone can capture Asia as well because of population or demographs of India.

THREATS: The current recession in market is not good for any kind of business including
telecommunication. Five cellular companies are already working in India. The situation in
India is not good specially political and peace. There are a lot of uncertainties in the country.

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Customer Satisfaction Survey - listening to customers' needs

As part of our ongoing commitment to delivering exceptional service and support, we

recently surveyed a number of our Global Enterprise customers. The analysis of these results
identified some key areas where Global Enterprise can develop solutions and provide greater
benefits and support to our customers.
Pricing
Globally consistent pricing is crucial for any global business in order to manage its
communications spend more effectively. We have launched a new voice roaming tariff that
can be used for both domestic and international voice usage, across 5 European markets and
are currently working on extending this footprint. For data, we have developed a roaming
package that is simple, predictable, capped and available across 10 European markets
We are working on an improved monthly roaming tariff for mobile datacards plus a Friends
and Family tariff, which we plan to announce later this year.
Contracts & commercial terms
In addition to shortening and simplifying our contracting process, our legal and commercial
teams have continued to grow in order to provide even greater support for customers. Our
Master Services Agreement has been expanded to cover new countries, increasing the
footprint available under this contract.

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Global Footprint & Communications
We continue to identify opportunities for expansion of the Vodafone footprint, as well as
increasing our engagement with our partners across the globe. We have appointed a number
of Regional Engagement Managers who are responsible for ensuring that the needs of
Vodafone Global Enterprise customers are prioritised within Vodafone affiliates and partners.
We are also building an agency management capability specifically for Vodafone Global
Enterprise customers to ensure that you have a consistent approach to managing mobility
worldwideA number of Customer Forum events are being planned for the coming year. These
will provide an ideal opportunity to interact with other global businesses and ensure that
youre kept up to date with the latest product and service information from Global Enterprise.
Global Solutions
We have increased our portfolio of global solutions with consistent products across key
markets, such as Vodafone Applications Service which enables you to access critical
applications from any smart device. We continue to build our managed service capabilities,
specifically for reporting, security and device management. This year will see the launch of
Spend Manager, providing a web based reporting tool for our customers to keep control of
spend and profiles across multiple countries.
Service Implementation
We understand that the speed of implementing any new solution is critical for our customers
and we continue to build a world class service and programme management team to provide
even greater support in this area. We have adopted MSP and Prince 2 as our project and
programmed management methodology and introduced direct reporting lines between our
national service teams and Vodafone Global Enterprise to ensure greater control of end-toend implementation.
We continue to further develop our professional managed services capabilities to reduce the
complexity and cost of managing your global communications. Your Global Service Manager
will be able to give you more information on how we can help your business.
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Market Segmentation
After gathering all this data our objective was to segment the market or market targeting. We
tried to follow the theory of the segmentation which says that, to be useful, market segments
must be:
Measurable: The size, purchasing power, and profiles of the segments can be
measured. Certain segmentation variables are difficult to measure. Like for our product 89%
of the population of Mumbai takes tea and more than 70% of the population takes tea more
than one time daily and in that 70% more than 50% of the population takes tea more than
one time to four times a day. And the population of Mumbai is more than 10 million and
according to the report 8.9million people are the customers for the tea. And 70% means 7
million are the potential customers of this product.

Accessible:

The market segments can be effectively reached and served. Like our

advertisement team was working very hard to capture or dominate the mass marketing
strategy we adopted, in the same manner we did make sure that our distribution channels are
capable enough to provide the service to the consumer by making sure that the availability of
the product is certain.
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Substantial: The market is large or profitable enough to serve. A segment should be

the largest possible homogenous group worth pursuing with a tailored marketing program. It
would not pay like our product Unique, was for everyone and there was no restriction of
anything in the usage.

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Product Positioning
After selecting the segment we had a big task of position our product in the customers mind.
As we know that a products position is the way the product is defined by the consumer on
the important attributes, the place a product occupies in the consumers mind relative to the
competing products. Positioning involves implanting the brands unique benefits and
differentiation in customers mind. As we tried to position our product as the strongest
communication services in the market by comparative advertisement on the media and as I
mentioned earlier that we have already tried to get an effective noise level in the consumer
surroundings before starting our media publicity.Consumers are always overloaded with
information about products and services. They cannot reevaluate products every time they
make a buying decision. To simplify the buying process consumers organize products into
categories, they position products, services and companies in their minds. A products position
is the complex set of perception, impression and feelings that consumers have for the product
compared with the competing products. Consumer position their product with or without the
help of marketers, but marketers do not want to leave their products positions to chance.
They must plan position that will give their products the greatest advantage in selected target
markets.
Competitive Advantage
The competitive advantage of our services was that, that it is equally strong as
Mobilink but at an affordable price. This service possess some kind of uniqueness which the
other brands does not posses.
Which Differences To Promote?
Not all brand differences are meaningful or worth-while not every difference makes good
differences are meaningful or worth-while not every difference make a good differentiator.
Each difference has the potential to create company costs as well as customer benefits
.therefore; the company must carefully select the ways in which it will distinguish itself from
competitors. A difference is worth establishing to the extents that it satisfies the following
criteria:

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Affordable:

Our services are a unique in many aspects; one of them is the price.

We have offered our communication services at low price than the other services.
We are able to do this because of the new technology, equipments, and accessories.
The modern techniques help us to minimize the cost in the tea production.

Important:

The difference delivers a highly valued benefit to target buyer.

Distinctive:

Competitors do not offer the difference; other company can offer it in a

more distinctive ways.

Superior:

The difference is superior to other ways that customers might obtain

the same benefit.

Communicable:

Preemptive: Competitors cannot easily copy the difference.

Profitable:

The difference is communicable and visible to buyers.

The product must provide a real benefit to consumer.

Pricing.
The pricing of the tea is specially designed for the special purpose that is Affordable for
all. The company had decided earlier that the price factor of Vodafone will be carrying a
unique factor of affordability. But the quality is same as the expensive one. The pricing is
leveled very correctly by our competent team of researchers. Peoples are very loyal to the
brands or they dont want change we introduce (likho)sachets & where the peoples want to
experience and have resources to taste new and can buy more in quantity we introduce the
boxes (packets) etc.
Advertisement

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As we had already started our mass marketing so we managed to get a noise level within the
market and we also used TV and Newspaper for the advertisement, and for advertisement we
hired an advertising company. And our sales team did provide light boards to more to more
than 60 big stores in Mumbai which had our products name on it. In the same time our sales
team gave targets to the different retailers and set bonuses for them on achieving certain
targets. At the same time we started a quiz questions along with a scratch card with our
product and different prizes were allocated for the winners. The one of the basic innovative
idea is related to our product is the advertising unlimited. As we are approaching the
normally promotion channels like print media, electronic media (+internet) etc. We are also
looking widely at the billboard concept of advertising, the sell stands, sell promotion
campaign by moving vehicles, the hoardings but the thing we include in that is we will be
launching a parachute carrying our label on it, the hoardings will be every where. The
concept of this huge marketing campaign was the part of the organization statement of
Uniqueness which is the main difference between our product and others.

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Customers, marketing and distribution
Vodafone endeavours to ensure that customers needs are at the core of all products and
services. Understanding these needs and continuing to serve them is key to Vodafones
customer strategy.

Customers
Vodafone has 302.6 million proportionate mobile customers across the globe. The Group
seeks to use its understanding of customers to deliver relevance and value and communicate
on an individual, household, community or business level. In delivering solutions that meet
customers changing needs in a manner that is easy to access and is available when required,
Vodafone aims to build a longer and deeper customer relationship.
Vodafone continues to use a customer measurement system called customer delight to
monitor and drive customer satisfaction in the Groups controlled markets at a local and
global level. This is a proprietary diagnostic system which tracks customer satisfaction across
all points of interaction with Vodafone and identifies the drivers of customer delight and their
relative impact. This information is used to identify any areas for improvement and focus.
Customer segmentation
Customer segments are targeted through many different tariffs and propositions, which are
adapted for any localised customer preferences and needs. These often bundle together voice,
messaging, data and, increasingly, fixed line services.
Consumer
Customers are typically classified as prepaid or contract customers. Prepaid customers pay in
advance and are generally not bound to minimum contractual commitments, while contract
customers usually sign up for a predetermined length of time and are invoiced for their
services, typically on a monthly basis. Increasingly, Vodafone offers SIM only tariffs

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allowing customers to benefit from the Vodafone network whilst keeping their existing
handset.
Enterprise
The Group continues to grow usage and penetration across all business segments. VGE
manages the Groups relationship with Vodafones 270 largest multinational corporate
customers. VGE simplifies the provision of fixed, mobile and broadband services for mncs
who need a single operational and commercial relationship with Vodafone worldwide. It
provides a range of managed services such as central ordering, customer self-serve web
portals, telecommunications expense management tools and device management coupled
with a single contract and guaranteed service level agreements.

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Marketing and brand

Vodafone has continued to build brand value by delivering a superior, consistent and
differentiated customer experience. Communication activities are focused on delivering the
promise of helping customers make the most of their time. The Groups vision is to be the
communications leader in an increasingly connected world expanding the Groups category
from mobile only to total communications. To enable the consistent use of the Vodafone
brand in all customer interactions, a set of detailed guidelines has been developed in areas
such as advertising, retail, online and merchandising.
Vodafone regularly conducts brand health tracking, which is designed to measure the brand
performance against a number of key metrics and generate insights to assist the management
of the Vodafone brand across all Vodafone branded operating companies. An external
accredited and independent market research organisation provides global coordination of the
methodology, reporting and analysis.
Distribution
Vodafone directly owns and manages over 1,800 stores selling services to customers and
providing customer support. The store footprint is constantly reviewed in response to market
conditions. The Group also has 5,200 Vodafone branded stores, which sell Vodafone products
and services exclusively through franchise and exclusive dealer arrangements. Additionally,
in most operating companies, sales forces are in place to sell directly to business customers.
The internet is increasingly a key channel to promote and sell Vodafones products and
services and to provide customers with an easy, user friendly and accessible way to manage
their services and access support, whilst reducing costs for the Group.
The extent of indirect distribution varies between markets but may include using third party
service providers, independent dealers, distributors and retailers. The Group hosts mvnos in a
number of markets, selling access to the Vodafone network at a wholesale level. Where
appropriate, Vodafone seeks to enter mutually profitable relationships with MVNO partners
as an additional route to market.
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Companys Future Prospectus

The Vodafone also took some additional steps for the consumers sake and different interests.
We are suppose to launch India website shortly in which the facilities of free email account,
chatting rooms, E-greetings, current news, stock rate, weather situation etc. We are moving
towards fulfilling the requirements of new millennium costumers.

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Conclusion
Vodafone uses the capabilities of the mobile phone to bring value to both developing and
developed economies. The impact of mobile technology on developed markets over recent
years has been immense and has focused on providing added value to customers through new
and improved functions and features. By comparison, the impact of technology on emerging
markets such as Kenya has provided a real lifeline both to individuals and to small
businesses. The mobile phone has helped economic development in emerging economies.
With growth in the provision of mobile phones, Vodafone has enabled great improvements in
facilitating the flow of money and information, which is vital for economic growth

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Bibliography
http://www.vodafone.com/start/media_relations/news/local_press_releases/portug

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al/portugal_press_release/vodafone_had_highest.html
http://en.wikipedia.org/wiki/Customer_satisfaction
http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)
http://en.wikipedia.org/wiki/Vodafone
http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf
www.anacom.pt/render.jsp?contentId=606658
www.iimcal.ac.in/community/consclub/reports/telecom.pdf