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SUMMER INTERNSHIP PROJECT REPORT on

Brand management and Marketing Strategy of Vodafone in


Bangalore

At Vodafone Group Plc.


A Project Report Submitted In Partial Fulfillment of the
Requirements
For The Award of the
POST GRADUATE DIPLOMA IN MANAGEMENT
M.S.RAMAIAH INSTITUTE OF MANAGEMENT
BY

Supriya Sahoo 131449


BATCH 2013-15

Under the guidance of


Prof. P. Bhanumathi

M.S.RAMAIAH INSTITUTE OF MANAGEMENT


NEW BEL ROAD, BANGALORE-560054

CERTIFICATE

This is to certify that the Project Report undertaken by (SUPRIYA SAHOO


131449) conducted at Vodafone India Pvt. Ltd.

Submitted in partial

fulfillment of the requirements for the award of the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT


TO
M.S.RAMAIAH INSTITUTE OF MANAGEMENT

Is a record of bonafide internship carried out under my supervision and


guidance and that no part of this report has been submitted for the award of
any other degree/diploma/fellowship or similar titles or prizes.

Guides Signature:

Name: Prof. P. Bhanumathi


Qualifications: B.E. (Industrial Engineering and Management), MBA (HR
Specialization), (Ph.D).

STUDENTS DECLARATION
I hereby declare that the Project Report titled Brand management and marketing
strategy of Vodafone in Bangalore conducted at Vodafone India Group Plc.
Under the guidance of Prof. Bhanumati Submitted in Partial fulfillment of the
requirements for the Degree of

POST GRADUATE DIPLOMA IN MANAGEMENT


TO

M.S.RAMAIAH INSTITUTE OF MANAGEMENT

is my original work and the same has not been submitted for the
award of any other Degree/Diploma/Fellowship or other similar titles
or prizes

Signature of the Student


Place: Bangalore

(SUPRIYA SAHOO)

Date:

Reg. No :131449

ACKNOWLEDGEMENT

I extend my special gratitude to our beloved Dean Dr.H.Muralidharan,


Academic Head Prof. V. Narayanan & Programme Head Dr. Savitha
Rani Ramachandran for inspiring me to take up this project and also
for their able guidance and support in completing this internship.
I wish to acknowledge my sincere gratitude and indebtedness to my
project guide Prof. P. Bhanumati of M.S. RAMAIAH INSTITUTE
OF MANAGEMENT Bangalore for her valuable guidance and
constructive suggestions in the preparation of project report.

SUPRIYA SAHOO
131449

EXECUTIVE SUMMARY
This project is based on telecom sector as the telecom sector is growing at a very good
pace. The telecom company which I have selected for my project is Vodafone Group Plc.
The reason behind selecting Vodafone is its various schemes in product & service
category & also its future policies where the company is coming out with lots of new &
affordable schemes for its customers. Vodafone is a UK based company & has various
branches all over the world. The company was started in the mid 70s & since then it has
never looked back. The products & services offered by Vodafone is of a very high quality
& also at an affordable rates. They have various plans for various customers depending
on the status of the customers.

Vodafone has various product categories ranging from postpaid sim, prepaid sim,
chargers, mobile phones, headsets & headphones & many more. In the service category it
has internet services which include broadband internet & PC internet services. Apart
from the products & services normally offered they also came out with some interesting
& unique product like the I phone. This was one of the biggest events in the history of
Indian telecom industry. The phones were available which has unique feature called as
3G system.

Vodafone also came out with cell phones for the poor which was a part of their social
responsibility toward the poor class people of the society. The phones were available in
the range of 1000 Rs -1500 Rs which was one of the successful strategies of Vodafone.
According to the 2013-2014 data VODAFONE captures the market with 17.56 % & is at
the second position just after Bharti with 24.69% .

Vodafone also came out with one of best& most attractive advertisement which no one
has ever seen before called as VODAFONE ZOO-ZOOS. This advertisement was a
part of VODAFONES marketing strategy to boost its sales during the IPL 6 season. This
was one of the master moves by VODAFONE to introduce ZOO-ZOO during the IPL 2
season which was a SUPER-HIT.

VODAFONE is planning to come with its own accessories stores which would be a onetime shop for its customers wherein the customers will get all the products under one
roof. Vodafones future plan is to become no.1 telecom company by the year 2010-2011
which does not seems to be very difficult keeping in mind the progress it has made in the
last 5 years.

Vodafone has added around 5 million subscribers in the year 2008-2009 which makes it
the 2rd largest telecom company in the world. Vodafone has joined hands with one of the
world largest & the best car racing company F1 MCLAREN MERCEDES to host the 2
day event. This is the part of the promotion strategy of Vodafone to become the world
wide leader in telecom industry.

Vodafone is also the official sponsor of the England Cricket Team for the Npower test
series. It has also shaken hands with the most popular football tournament UEFA
CHAMPIONS LEAGUE football which is a part of the promotional strategy of
Vodafone.

TABLE OF CONTENTS
CHAPTER I - INDUSTRY PROFILE

1-12

1. INTRODUCTION

1.1 REFORMS IN TELECOM SECTOR

1.2 COUNTRY SPECIFIC SIM CARD INDUTRY PROFILE

1.3 MAJOR PLAYERS

1.4 INDIAN E-COMMERCE MARKET SPILT

1.5 COMPETITION IN THE INDUSTRY

1.6 POTENTIALS OF NEW ENTRANTS IN THE INDUSTRY

1.7 POWER OF SUPPLIERS

1.8 THREAT OF SUBSTITUTE PRODUCT

10

CHAPTER II COMPANY PROFILE

13-31

2. HISTORY OF VODAFONE

16

2.1 MARKET SHARE

20

2.2 VODAFONE ZOO-ZOO

22

2.3 SWOT ANALYSIS

23

2.4 ORGANIZATIONAL HIERARCHY

28

CHAPTER III TASKS ACCOMPLISHED DURING INTERNSHIP


3.

32-34

ROLES AND RESPONSIBILITIES

33

3.1 CONTRIBUTION TO ORGANIZATION

34

CHAPTER IV ANALYSIS OF THE RESEARCH UNDERTAKEN

35-51

4. OBJECTIVE

36

4.1 RESEARCH METHODLOGY

37

4.2 RESEARCH PROCESS

38

4.3 RESEARCH DESIGN

38

4.4 FINDING

49

4.5 SUGGESTION

50

4.6 CONCLUSION

51

LIST OF FIGURES
1.Telecom Industry

2.Vodafone corporate office

11

3.Vodafone store

11

4. Vodafone Mini store


5. Organizational Hierarchy
6. Market share
7.Sponshirship

12
25
29

8.Vodafone Coverage

31

9.Vodafone Tie up with railways

48

30

LIST OF GRAPHS
1.MAJOR PLAYERS AND THEIR MARKET SHARE
2.SERVICES WHAT THEY OFFER

3.GRAPH 1

34

4. GRAPH 2

41

5. GRAPH 3

41

6. GRAPH 4

42

7. GRAPH 5

42

8. GRAPH 6

43

9. GRAPH 7

43

10.GRAPH 8

44

11.GRAPH 9

44

12.GRAPH 10

45

13.GRAPH 11

46

14.GRAPH 12

47

Chapter -1
INDUSTRY ANALYSIS

INDUSTRY PROFILE

WHAT IS TELECOMUNICATION
Telecommunication is the transmissions of signals over a distance for the purpose of
communication. In modern times this process almost always involves the sending of
electro magnetic waves by electronic transmitters but in earlier years it may have
involved the use of smoke signals drums or semaphore lines.

HISTORY OF TELECOMMUNICATION:
The history of telecommunication began with the use of smoke signals & drums in Africa
the America & parts of Asia. Smoke signals
In the 1790s the first fixed semaphore systems emerged in Europe however it was not
until the 1830s that electrical telecommunication systems started to appear. This article
details the history of telecommunication & the individuals who helped make
telecommunication systems what they are today.
Early telecommunication included smoke signals & drums. Drums were used in natives
like Africa, New Guinea & South America & smoke signals in North America & China.
In 1792 a French engineer Claude Chappe built the first visual telegraphy for semaphore
system between Chile & Paris. This was followed by a line from Strasburg to Paris.

SOME OF THE MOST POPULAR TELECOM COMPANIES


IN INDIA:
BHARTI ENTERPRISES
Established in 1985, Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit, ranging from being the first mobile service in Delhi,
first private basic telephone service provider in the country, first Indian company to
provide comprehensive telecom services outside India.

ESSAR GROUP
The Essar group is one of Indias largest corporate houses with interests spanning the
manufacturing and service sectors in both old and new economies: steel, power, shipping,
constructions, oil & gas and telecom.

IDEA CELLULAR
India's leading GSM mobile services operator, idea cellular has licenses to operate in 11
circles. With a customer base of over 17 million, idea cellular has operations in Delhi,
Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal,
Haryana, UP-west, Himachal Pradesh and Kerala. Idea acquired spice telecom which was
operating in Karnataka and Punjab. Idea cellular footprint currently covers approximately
45% of Indias population and over 50% of the potential telecom-market. As a leader in
value added services, innovation is central to idea's vas factory. It is the first cellular
company to launch music messaging with 'cellular jockey', 'background tones', 'group
talk', a voice portal with 'say idea' and a complete suite of mobile email services.

INTERNET & MOBILE ASSOCIATION OF INDIA


The internet & mobile association of India (IAMAI) is a not-for-profit industry body
registered under the SOCIETIES ACT, 1896. Its mandate is to expand and enhance the
online and mobile value added services sectors.

MTNL DELHI
MTNL Was Set Up On 1st April, 1986 By The Government Of India To Upgrade The
Quality Of Telecom Services, Expand The Telecom Network, Introduce New Services
And To Raise Revenue For Telecom Development Needs Of India S Key Metros
Delhi, The Political Capital And Mumbai, The Business Capital Of India.

MTS - SHYAM TELECOM


Sistema Shyam teleservices limited is a joint venture company between sistema of Russia
3

and Shyam group of India. Currently they operate in the states of Rajasthan, Tamil Nadu,
Kerala, Bihar, West Bengal and Jharkand.

RELIANCE COMMUNICATIONS
Reliance Communications has a reliable, high-capacity, integrated (Both Wireless and
Wireline) and convergent (Voice, Data and Video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (Information and
Communication) value chain, including infrastructure and services for enterprises as well
as individuals, applications, and consulting.

RELIANCE INFOCOM
Reliance Infocomm will offer a complete range of telecom services, covering mobile and
fixed line telephony including broadband, national and international long distance
services.

SPICE TELECOM
Spice telecom the brand name of spice communications limited is presently operating
cellular phone services in the states of Punjab and Karnataka. Considered as one of the
best providers of mobile telephony in India.

TATA INDICOM
Tata teleservices ltd offers its products and services to customers across India under the
name of "Tata Indicom". Tata teleservices limited is Indias leading private basic service
operator.

VIDESH SANCHAR NIGAM LIMITED


VSNL incorporated on April 1, 1986 under the Indian Companies Act, 1956 to take over
the activities of the erstwhile overseas communication services (OCS). The company
operates a network of earth stations, switches, submarine cable systems, and value added
service nodes to provide a range of basic and value added services.

VODAFONE ESSAR
Vodafone essar in India is a subsidiary of Vodafone group plc and commenced
operations in 1994 when its predecessor Hutchison telecom acquired the cellular license
for Mumbai. Vodafone essar now has operations in 16 circles covering 86% of Indias
mobile
customer
base,
with
over
34.1
million
customers.

ABOUT DOT:
DOT stands for department of telecom. It was started in the year 1992-93.The department
is presently headed by Prof M.N. Srirangaraju, who is supported by a team of qualified &
dedicated staff members.
On the forefront of development & with the advent of technological revolution &
quantum development in the field of electronics & communication due to myriad
complexities of the e-world it was inevitable for the evolution of another field to make a
distinct identity of its own. Thus the ball of development was set into motion & the
telecommunication field gradually assumed a role of pre-eminence which is shared by
few other engineering disciplines in the modern world.
The Department established in the year 1992 emphasized in providing quality education
with the practical aspects of learning given ample importance .The department
encourages tech-savvy Projects which Whet the students appetite for technical
exploration.

TRAI:
TRAI stands for Telecom Regulatory Authority of India. TRAI was established in the
year 1997 in pursuance of TRAI (Ordinance) 1997 which was later replaced by an act of
parliament to regulate the telecommunication services. Some of the major
recommendatory, regulatory & tariff setting.

FUNCTIONS OF TRAI
Functions of TRAI are to make recommendations on the need & timing for introduction
of new service provider ensure compliance of terms & conditions of license, effective
management of spectrum, lay down the standards of quality of service to be provided by
the service providers & ensure the quality of service & conduct the periodical survey of
such service provided by the service providers so as to protect interest of the Consumers
of telecommunication service, ensure effective compliance of universal service
obligations notify the rates at which telecommunication services in India shall be
provided under this act etc.
Recently in exercise of powers conferred by Provision(K) (1) of Section 2 of the TRAI
Act, the Central Government, Vide Notification no S0 44(E) dated 9th January 2004, has
notified Broadcasting & Cable services to be telecommunication service.

RECONSTITUTION:

I (Amendment) Act, 2000 had led to reconstitution of the authority. It consists of one
Chairperson, two full-time members & two part-time Members.

COMPETITION IN THE INDUSTRY


In healthy competition, relentless improvements in processes and methods drive down
costs. Product and service quality rise steadily. Innovation leads to new and better
approaches, which diffuse widely and rapidly. Uncompetitive providers are restructured
or go out of business. Value-adjusted prices fall, and the market expands. This is the
trajectory common to all well-functioning industriescomputers, mobile
communications, banking, and many others.
Competition is global in nature and stretches across boundaries and geographies. It is
expected to intensify due to the attempted replication of the Indian offshoring model by
MNC Tlecom majors as well as small startups.

Potential of new entrants into industry


New entrants into a market bring new production capacity, the desire to gain a foothold in
the market, and sometimes, substantial resources with which to compete. These new
competitors may come from several sources: market areas or segments you currently do
not serve, indirect competitors with competing products, customers and suppliers. The
potential for the entrance of new competitors into a market principally depends on
barriers to entry and the expected reaction of the incumbent firms. Barriers to market
entry include: economies of scale, brand preferences and customer loyalty, capital
requirements and government policies, such as tariffs and trade restrictions and
regulatory policies. Whether these barriers are judged as high or low depends, in part, on
the resources and competencies of the potential new entrants.The IT industry was voted
second behind the legal profession when judged on career prospects in a survey of more
than 1,000 teenagers commissioned by the government's Foundation Degrees. IT was
also voted as one of the top three sectors for those young people who dream of becoming
the boss, but 68% of UK teens did not feel they had an adequate understanding of the
range of jobs available in the IT industry. The survey also found that the IT profession
has an image problem among young women, where 21% of female respondents said IT
was a male-dominated field. On a more positive note, the IT industry was judged the
second most "aspirational" sector to work in by teenagers. Nearly 90% said they were
prepared to work long hours to advance their careers and 58% said they would not be
deterred by extra study.

Threat of new entrants to an industry

If new entrants move into an industry they will gain market share & rivalry will
intensify
The position of existing firms is stronger if there are barriers to entering the
market
If barriers to entry are low then the threat of new entrants will be high, and vice
versa

Barriers to entry are, therefore, very important in determining the threat of new entrants.
An industry can have one or more barriers. The following are common examples of
successful barriers:

Barrier

Notes

Investment cost

High
cost
will
deter
entry
High capital requirements might mean that only large
businesses can compete
7

Economies
of
scale Lower unit costs make it difficult for smaller newcomers to
available to existing firms break into the market and compete effectively
Regulatory
restrictions

and

legal Each restriction can act as a barrier to entry


E.g. patents provide the patent holder with protection, at
least in the short run

Product
differentiation Existing products with strong USPs and/or brand increase
customer loyalty and make it difficult for newcomers to
(including branding)
gain market share
Access to suppliers and A lack of access will make it difficult for newcomers to
enter the market
distribution channels
Retaliation by established E.g. the threat of price war will act to discourage new
entrants
products
But note that competition law outlaws actions like
predatory pricing
What makes an industry easy or difficult to enter? The following table helps summarise
the issues you should consider:
Easy to Enter

Difficult to Enter

Common
technology
Access
to
distribution
channels
Low
capital
requirements
No need to have high capacity and output
Absence of strong brands and customer
loyalty

Patented
or
proprietary know-how
Well-established
brands
Restricted
distribution
channels
High
capital
requirements
Need to achieve economies of scale for
acceptable unit costs

Power of suppliers
If any telecommunication firms suppliers have bargaining power they will:

Exercise that power


Sell their products at a higher price
Squeeze industry profits

If the supplier forces up the price paid for inputs, profits will be reduced. It follows that
the more powerful the customer (buyer), the lower the price that can be achieved by
buying from them. Suppliers find themselves in a powerful position when:

There are only a few large suppliers


The resource they supply is scarce
8

The cost of switching to an alternative supplier is high


The product is easy to distinguish and loyal customers are reluctant to switch
The supplier can threaten to integrate vertically
The customer is small and unimportant
There are no or few substitute resources available

Just how much power the supplier has is determined by factors such as:
Factor

Note

Uniqueness of the input If the resource is essential to the buying firm and no close
substitutes are available, suppliers are in a powerful
supplied
position
Number and size of firms A few large suppliers can exert more power over market
prices that many smaller suppliers each with a small
supplying the resources
market share
Competition for the input If there is great competition, the supplier will be in a
stronger position
from other industries
Cost of switching
alternative sources

to A business may be locked in to using inputs from


particular suppliers e.g. if certain components or raw
materials are designed into their production processes.
To change the supplier may mean changing a significant
part of production

Power of customers
Powerful customers are able to exert pressure to drive down prices, or increase the
required quality for the same price, and therefore reduce profits in an industry.
A great example in the UK currently is the dominant grocery supermarkets which are
able exert great power over supply firms.
Several factors determine the bargaining power of customers, including:
Factor

Note

Number of customers

The smaller the number of customers, the greater their


power

Their size of their orders

The larger the volume, the greater the bargaining power


of customers
9

Number of firms supplying The smaller the number of alternative suppliers, the less
opportunity customers have for shopping around
the product
The threat of integrating If customers pose a threat of integrating backwards they
will enjoy increased power
backwards
The cost of switching

Customers that are tied into using a suppliers products


(e.g. key components) are less likely to switch because
there would be costs involved

Customers tend to enjoy strong bargaining power when:

There are only a few of them


The customer purchases a significant proportion of output of an industry
They possess a credible backward integration threat that is they threaten to buy
the producing firm or its rivals
They can choose from a wide range of supply firms
They find it easy and inexpensive to switch to alternative suppliers

Threat of substitute products


A substitute product can be regarded as something that meets the same need
Substitute products are produced in a different industry but crucially satisfy the same
customer need. If there are many credible substitutes to a firms product, they will limit
the price that can be charged and will reduce industry profits.
As an example, consider the many substitutes that consumers now have to buying a
software for browsing the internet:
The extent of the threat depends upon

The extent to which the price and performance of the substitute can match the
industrys product
The willingness of customers to switch
Customer loyalty and switching costs

If there is a threat from a rival product the firm will have to improve the performance of
their products by reducing costs and therefore prices and by differentiation.

10

Vodafone corporate office

Vodafone stores

11

Vodafone mini stores

12

Chapter 2
COMPANY ANALYSIS

Companys profile

The Vodafone "speech mark" logo in use since


1997
Type

Public limited company

Traded as

LSE: VOD NASDAQ: VOD

Industry

Telecommunications

Predecessor(s) Racal Telecom (1983 to 1991)


Founded

1991 Newbury, Berkshire,


United Kingdom

Area served

Worldwide

Key people

John Southam (Chairman)


Vittorio Colao (CEO)

Products

Fixed line and mobile


telephony, Internet services,
digital television

14

Revenue

43.65 billion (2014)[1]

Operating
income

4.728 billion (2014)[1]

Profit

429 million (2014)[1]

Total assets

142.69 billion (2013)[1]

Total equity

71.477 billion (2013)[1]

Employees

91,272 (2013) [1]

Divisions

Vodafone Global Enterprise

The name Vodafone comes from voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones"
Vodafone is the second largest company in this country by market capitalization. This is
remarkable because Vodafone is a relatively new company. Most of the other companies
in the FTSE 100 (largest 100 companies in the UK) have been around considerably
longer.
Most people in this country instantly recognize the Vodafone logo and know what the
company does. Vodafone supplies customers with mobile telephone facilities including
text, games, music, mobile TV, and internet services. In 2005 Vodafone had around 16
million UK customers, employed over 11,500 people across call centers, offices and
retail shops.

15

The NAS is less well-known. It is a national charity working with children, adults, and
families affected by autism, and those professionals who work alongside them. Autism is
a complex life long developmental disability affecting an increasing number of children
in the UK. The term autism covers a wide range of behavioral and communication
difficulties. For example people with autism find everyday social interaction very
difficult.
Their ability to develop friendships is generally limited as is their capacity to understand
other people's emotional expression. People with autism can often have accompanying
learning disabilities but everyone with the condition shares a difficulty in making sense
of the world.
The NAS champions the interests of people with autism and provides services
appropriate to their needs. Around 535,000 people in the UK have autistic spectrum
disorders and 2 million parents, carers and friends are affected. Understanding of the
condition remains limited.

HISTORY OF VODAFONE:
Vodafone is the world's leading international mobile communications company.
Currently it has operations in 25 countries across 5 continents and 40 partner networks
with over 260 million customers worldwide.

DURING 1980S
Vodafone made the UK's first mobile call at a few minutes past midnight on 1 st January
1985. Within fifteen years, the network was the largest company in Europe and the
largest of its kind anywhere in the world. By the turn of the century, almost every second
UK citizen had a mobile and a third of them were connected to Vodafone.
The Vodafone story is one of investment, innovation and award-winning customer
service. Above all, its one of growth and the ability to deliver the tremendous benefits of
mobile communications, not just in the UK but worldwide.
1982
The Racal electronics group wins its bid for the private sector UK cellular license. It
sets up the Racal telecoms division and names the new network Vodafone to reflect the
provision of voice and data services over mobile phones. Based in Newbury, the
company has less than 50 employees, all in one building.
1985
The Vodafone analogue network is the first cellular network to launch in the UK, and
the first call is made from St Katherines dock in London to Newbury on 1 January 1985.
16

1987
Vodafone is recognized as the largest mobile network in the world.
Vodata is created as the voice and data business to develop and market Vodafone
recall, the voicemail service.
Vodapage is launched, providing a paging network that covers 80% of the UK
population.
1988
Racal telecomm plc floats on the London and New York stock exchanges.
1989
Paknet is formed as a joint venture between Racal telecom and cable & wireless.

VODAFONE DURING 1990S:


1991
Racal and Vodafone demerge. And the Vodafone group is listed as an independent
company on the London and New York stock exchanges.
Vodafone and telecom Finland make the worlds first international roaming call.
Vodafone launches its digital (GSM) mobile phone service the first in the UK.
1992
Vodafone and telecom Finland sign the world's first international GSM roaming
agreement.
1993
Vodafone group international is formed to acquire licenses and supervise overseas
interests.
Vodafone opens its first high street store.
1994
Vodata is the first network operator in the UK to launch data, fax and sms services over
the digital network.
Vodafone joins the global star consortium to develop and launch a low earth orbiting
satellite mobile phone service.

17

1996
Vodafone is the first network operator in the UK to launch a pre-pay analogue package.
Per second billing on the digital network is introduced, as well as options to buy
bundled minutes and make off-peak local calls to landlines.
1997
Chris gent succeeds Sir Gerald Whent as chief executive officer of Vodafone group plc.
1999
Vodafone air touch plc is created as a result of a successful merger between Vodafone
group plc and air touch communications Inc.
On 5 January Vodafone connects the five million customers in the UK.

VODAFONE DURING 2000S:


2000
The acquisition of Mannesmann Ag almost doubles the size of the Vodafone group
making it the largest mobile telecommunications company and one of the top ten
companies, by market capitalization, in the world.
Vizzavi is launched, a 50/50 joint venture between Vodafone air touch and vivendinet
to deliver a multi-access branded internet portal for Europe.
Vodafone acquires the largest available 3g license in the UK. In parallel with the
development of 3g, Vodafone announces its intention to offer GPRS (general packet
radio service) to UK corporate customers.
The global star satellite communications service is launched in the UK.
2001
Vodafone introduces instant messaging to its networks.
Vodafone makes the worlds first 3g roaming call between Spain and Japan.
2002
Vodafone trials its global mobile payment system in the UK Italy and Germany.

18

Vodafone launches the first commercial European GPRS roaming service.


The Vodafone group foundation is launched. The group and its subsidiaries plan to
contribute 20 million to community programs, guided by the group social investment
policy.
Vodafone launches Vodafone live! & mobile office, two new consumer and business
propositions.
Arun Sarin is selected to succeed Sir Christopher Gent as Chief Executive of Vodafone
group plc.
2003
Vodafone live! attracts 1 million customers in its first six months.
Orange, Telefonica moviles, T-Mobile, and Vodafone form a new association to drive
interoperable mobile payments.
2004
Vodafone launches its first 3g service in Europe with the vodafone mobile connect
3g/gprs data card.
Vodafone live! With 3g is launched in 13 markets.
2005
Vodafone simply is launched, giving customers new, easy-to-use voice and text
services.
Vodafone introduces passport, a new voice roaming price plan.
2006
The number of Vodafone live! Customers with 3g reach 10 million.

19

MARKET SHARE OF MOBILE OPERATORS IN INDIA:2002-2008

MARKET SHARE OF MOBILE OPERATORS IN INDIA:201213

VODAFONE TOPS THE LIST IN THIS CATEGORY

20

Financial results
Vodafone reports its results in accordance with International Financial Reporting
Standards (IFRS).

Vodafone has some large minority stakes, which are not included in its consolidated
turnover. In order to provide additional information on the overall scale and growth
trends of its business, it publishes "proportionate turnover" figures, and these are included
in the tables below. For example, if a business in which it owns a 45% stake has turnover
of 10 billion, that equals 4.5 billion of proportionate turnover for Vodafone.
Proportionate turnover is not an official accounting measure, and Vodafone's
proportionate turnover should not be compared with other companies' statutory turnover.
Vodafone also produces proportionate customer number figures on a similar basis, e.g. if
an operator in which it has a 30% stake has 10 million customers that equals 3 million
proportionate Vodafone customers.
Year ended
31 March
2013
2012
2011
2010
2009
2008
2007
2006*
2005
2004

Turnover
m
44,445
46,417
45,884
44,472
41,017
35,478
31,104
29,350
34,073
36,492

Profit before Profit for the


tax m
year m
3,255
673
9,549
7,003
9,498
7,870
8,674
8,618
4,189
3,080
9,001
6,756
(2,383)
(5,297)
(14,835)
(21,821)
7,951
6,518
9,013
6,112

Basic eps
(pence)
0.87
13.74
15.20
16.44
5.81
12.56
(8.94)
(35.01)
9.68
8.70

Proportionate
customers (m)
404.0
446.5
347.7
341.1
302.6
260
206.4
170.6
154.8
133.4

21

ABOUT THE MOST POPULAR VODAFONE ZOO-ZOOS:

SOME INTERESTING FACTS ABOUT ZOOZOOS:


On first look, these Zoo Zoos in Vodafone TV ads may resemble animated cartoon
characters with an alien look or simply a stupid egg-head character with disproportional
white bodies and black dots for eyes and mouth.
But the interesting part is that Zoo Zoos are not animated characters but are actually slim
women actors from local Mumbai theatres, dressed in white costumes that are stuffed
with foam to portray the characters.
These characters are named Zoo Zoos, and are created by O&M. These ads were directed
by Prakash Varma and were launched during the ongoing IPL 2 series. They are human
beings who were made to wear body suits. the design of the characters is such that one
gets fooled into thinking it is animation, shrugs Rao, which was indeed the very illusion
that had to be created. in a sense, it is live animation! He quips, referring to the fact
that it was all shot live.
To create large heads they used a material called Perspex, which was again stuffed with
foam. Also, they casted only women and children to play the zoo zoos so that the thin
hands and legs made the heads look even bigger.
22

SWOT ANALYSIS
STRENGTH
VERY FOCUSED ON TELECOM : Vodafone is largely focused on the telecom, around
93% of the total revenue comes from telecom (Total telecom revenue Rs 3,326).
LEADERSHIP IN FAST GROWING CELLULAR SEGMENT: Vodafone is holding
leadership position in cellular market. Vodafone is one of India's leading private sector
providers of telecommunications services based on an aggregate of 27,239,757 customers
as on August 31, 2006, consisting of 25,648,686 GSM mobile and 1,591,071 broadband
& telephone customers.
PAN INDIA FOOTPRINT: Vodafone offers the most expansive roaming network.
Letting you roam anywhere in India with its Pan-India presence, and trot across the globe
with International Roaming spread in over 240 networks. The mobile services group
provides GSM mobile services across India in 23 telecom circles, while the B&T
business group provides broadband & telephone services in 92 cities.
THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVING
INTERNATIONAL SUBMARINE CABLES: Vodafone, the monopoly breaker shattered
the Telecom monopoly in the International Long Distance space with the launch of
International Submarine cable Network i2i jointly with Singapore Telecommunications
Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering
them an option besides the incumbent carrier, to connect to the outside world.

23

WEAKNESS
PRICE COMPETITION FROM BSNL AND MTNL: Vodafone is tough competition
from the operators like BSNL and MTNL as these two operators are offering services at a
low rate.
LOW PENETRATION RURAL MARKET: Although Vodafone have strong Presence
throughout the country but still they are far away from the Indian rural part and generally
this part is covered by BSNL so indirectly Vodafone is losing revenue from the rural
sector.

OPPORTUNITIES
THE FAST EXTENDING IPLC MARKET: An IPLC (international private leased
circuit) is a point-to-point private line used by an organization to Communicate between
offices that are geographically dispersed throughout the world. An IPLC can be used for
Internet access, business data exchange, video conferencing, and any other form of
telecommunication. Vodafone Enterprise Services and SingTel jointly provide IPLCs on
the Network i2i. The Landing Station in Singapore is managed by SingTel and by
Vodafone in Chennai (India). Each Landing Station has Power Feeding Equipment,
Submarine Line Terminating Equipment and SDH system to power the cable, add
wavelengths and convert the STM-64 output to STM-1 data streams respectively.
LATEST TECHNOLOGY AND LOW COST ADVANTAGE: The costs of introducing
cellular services for Vodafone are marginal in nature, as it needs only to augment its
cellular witch/equipment capacity and increase the number of base stations. The number
of cities, towns and villages it has covered already works to its advantage as putting more
base stations for cellular coverage in these areas comes with negligible marginal cost.
Besides such cost advantages, it has also other cost advantages for the latest cellular
technology. As a late entrant into the cellular market, it has dual advantage of latest
technology with modern features, unlike other private cellular operators who started their
service more than 4-5 years back and low capital cost due to advantages of large scale
buying of cellular switch/equipment.
HUGE MARKET
The cellular telephony market is presently expanding at a phenomenal / whopping __ rate
every year and there is still vast scope for Vodafone to enter /expand in this market.
Besides there is a vast rural Segment where the cellular services have not made much
headway and many customers are looking towards Vodafone for providing the service to
them. With its wide and extensive presence even in the remotest areas.

THREATS
competition from other cellular operators like Airtel has now outsourced some of its
services like customer services to IBM.
Vodafone Essar has nearly 2.2 million subscribers with a market share of
24.2%.Vodafone has 24/7 customer service with atag line HAPPY TO HELP
YOU.Vodafone has magic box handsets and business handset to reach their customers
specification. Vodafone advertising strategies are impressive to attract and add on

24

ORGANISATIONAL HIERARCHY

25

ORGANIZATIONAL STRUCTURE TYPES


Pre-bureaucratic structure
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure
is most common in smaller organizations and is best used to solve simple tasks. The
structure is totally centralized. The strategic leader makes all key decisions and most
communication is done by one on one conversations. It is particularly useful for new
(entrepreneurial) business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic domination in the sense
of Max Weber's tripartite classification of authority

Bureaucratic structure
Weber gives the analogy that the fully developed bureaucratic mechanism compares
with other organizations exactly as does the machine compare with the non-mechanical
modes of production. Precision, speed, unambiguity, strict subordination, reduction of
friction and of material and personal costs- these are raised to the optimum point in the
strictly bureaucratic administration. Bureaucratic structures have a certain degree of
standardization. They are better suited for more complex or larger scale organizations,
usually adopting a tall structure. The tension between bureaucratic structures and nonbureaucratic is echoed in Burns and Stalker's distinction between mechanistic and organic
structures.
The Webern characteristics of bureaucracy are:
Clear defined roles and responsibilities

A hierarchical structure

Respect for merit.

Post-bureaucratic
The term of post bureaucratic is used in two senses in the organizational literature: one
generic and one much more specific. In the generic sense the term post bureaucratic is
often used to describe a range of ideas developed since the 1980s that specifically
contrast themselves with Weber's ideal type bureaucracy. This may include total quality
management, culture management and matrix management, amongst others. None of
these however has left behind the core tenets of Bureaucracy. Hierarchies still exist,
authority is still Weber's rational, legal type, and the organization is still rule bound.
Huckster, arguing along these lines, describes them as cleaned up bureaucracies, rather
than a fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of
culture management at 'Tech' argued that 'the essence of bureaucratic control - the
formalization, codification and enforcement of rules and regulations - does not change in
26

principle. it shifts focus from organizational structure to the organization's culture'.


Another smaller group of theorists have developed the theory of the Post-Bureaucratic
Organization. provide a detailed discussion which attempts to describe an organization
that is fundamentally not bureaucratic. Charles Heckscher has developed an ideal type,
the post-bureaucratic organization, in which decisions are based on dialogue and
consensus rather than authority and command, the organization is a network rather than a
hierarchy, open at the boundaries (in direct contrast to culture management); there is an
emphasis on meta-decision making rules rather than decision making rules. This sort of
horizontal decision making by consensus model is often used in housing cooperatives,
other cooperatives and when running a non-profit or community organization. It is used
in order to encourage participation and help to empower people who normally experience
oppression in groups.
Still other theorists are developing a resurgence of interest in complexity theory and
organizations, and have focused on how simple structures can be used to engender
organizational adaptations. For instance, Miner et al. (2000) studied how simple
structures could be used to generate improvisational outcomes in product development.
Their study makes links to simple structures and improviser learning. Other scholars such
as Jan Rivkin and Sigglekow, and Nelson Repenning revive an older interest in how
structure and strategy relate in dynamic environments.

Functional structure
Employees within the functional divisions of an organization tend to perform a
specialized set of tasks, for instance the engineering department would be staffed only
with software engineers. This leads to operational efficiencies within that group.
However it could also lead to a lack of communication between the functional groups
within an organization, making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods
and services at large volume and low cost. Coordination and specialization of tasks are
centralized in a functional structure, which makes producing a limited amount of
products or services efficient and predictable. Moreover, efficiencies can further be
realized as functional organizations integrate their activities vertically so that products are
sold and distributed quickly and at low cost.For instance, a small business could make
components used in production of its products instead of buying them.

Divisional structure
Also called a "product structure", the divisional structure groups each organizational
function into a division. Each division within a divisional structure contains all the
necessary resources and functions within it. Divisions can be categorized from different
points of view. One might make distinctions on a geographical basis (a US division and
an EU division, for example) or on product/service basis (different products for different
customers: households or companies). In another example, an automobile company with
a divisional structure might have one division for SUVs, another division for subcompact
cars, and another division for sedans.
27

Each division may have its own sales, engineering and marketing departments.

Matrix structure
The matrix structure groups employees by both function and product. This structure can
combine the best of both separate structures. A matrix organization frequently uses teams
of employees to accomplish work, in order to take advantage of the strengths, as well as
make up for the weaknesses, of functional and decentralized forms. An example would
be a company that produces two products, "product a" and "product b". Using the matrix
structure, this company would organize functions within the company as follows:
"product a" sales department, "product a" customer service department, "product a"
accounting, "product b" sales department, "product b" customer service department,
"product b" accounting department. Matrix structure is amongst the purest of
organizational structures, a simple lattice emulating order and regularity demonstrated in
nature The segmentation of the macro environment according to the six presented factors
of the PESTEL analysis is the starting point of the global environmental analysis.

sponsorship made by Vodafone for brand management .

28

29

Vodafone users

30

Chapter 3
TASKS
ACCOMPLISHED
DURING INTERNSHIP

Roles and Responsibilities


1) Collect and analyze data on source demographics, preferences, needs, and buying
habits to identify potential markets and factors affecting product demand.
2) Translating

complex

3) Measure

and

findings

into

assess

written

customer

text.
satisfaction.

4) Forecast and track marketing and sales trends, analyzing collected data.
5) Seek and provide information to help companies determine their position in the
marketplace.
6) Measure the effectiveness of marketing, advertising, and communications programs
and strategies.
7) Conduct research on consumer opinions and marketing strategies, collaborating with
marketing professionals, statisticians, pollsters, and other professionals.
8) Involve staffs to provide management with information and proposals concerning the
promotion, distribution, design, and pricing of company products or services.
9) Gather data on competitors and analyze their prices, sales, and method of marketing
and distribution.
10)Monitor

industry

statistics

and

follow

trends

in

trade

literature.

11) Devise and evaluate methods and procedures for collecting data (such as surveys,
opinion polls, or questionnaires), or arrange to obtain existing data.
12)Develop

and

implement

procedures

for

identifying

advertising

needs.

13) Direct trained survey interviewers.

Description of tasks handled and Contribution to the organization:

Meet prospective clients, execute effective product demonstrations, emphasizing


product features and benefits with focus on the value of the solution
Consult with Channel Managers practices to understand practice workflow needs
and expectations Prospect, educate, qualify, and generate interest for Sales
Opportunities
Develop and accomplish a lead generation plan including Outbound and Inbound
32

prospect management
Follow up with prospective clients and should be an expert in closing deals
Attending sales group meetings concerning sales targets, forecasts, and reporting
on market situation and competition
Maintaining and expanding the database of prospects for the organization
Providing suggestions to improvise on sales and marketing strategies

PROJECT OBJECTIVE
Primary Objective
To know the Marketing Strategy and Brand Management Techniques used by Vodafone
and check their impact on sales.
To analyze marketing opportunities Increase of sales and revenue
To satisfy the customers wants as the business exists only due to existence of customer
demands.
To maximize product variety and customer choice. Overcoming customer complaints.
What marketing strategies the Vodafone is implementing to defend and increase the
market share

Secondary Objectives
1. To find and list the factor that affect buying decisions.
2. To find the awareness Vodafone and other products of Vodafone in Bangalore.
3. To find the reasons for their willing ness or non-willingness of Vodafone user to
switch to other brand.

33

Chapter 4
ANALYSIS OF THE
RESEARCH
UNDERTAKEN

Objectives of the study are:


To find out what business are the retailers into.
To find out what services do the retailers offer.
To find out which visibility element is most important to retailers.

The sample unit of the study included all existing Multi-brand retailers in specific areas
of Bangalore. Sample size is 70 retailers/respondents.
In the survey the main objective was to know the retail visibility in multi-brand
outlets with respect to competitors. The survey also helped in understanding the
role and importance if brand visibility in retail outlets. It also helped in knowing
which visibility elements are mostly used or favored by the retailers because of its
usefulness.
Since the primary objective of the internship was to create a new visibility element,
therefore the survey served as great help in understanding the effectiveness of current
visibility elements in multi-brand retail outlets. It also helped in narrowing the area of
focus while brainstorming to come up with a new visibility element.
Research Methodology

Definition of Research
When you say that you are undertaking a research study to find answers to a question,
you are implying that the process;
1. is being undertaken within a framework of a set of philosophies ( approaches);
2. uses procedures, methods and techniques that have been tested for their validity and
reliability;
3. is designed to be unbiased and objective .
Philosophies means approaches e.g. qualitative, quantitative and the academic discipline
in which you have been trained.
Validity means that correct procedures have been applied to find answers to a question.
Reliability refers to the quality of a measurement procedure that provides repeatability
and accuracy.
Unbiased and objective means that you have taken each step in an unbiased manner and
drawn each conclusion to the best of your ability and without introducing your own
vested interest.
(Bias is a deliberate attempt to either conceal or highlight something).
Adherence to the three criteria mentioned above enables the process to be called
research.
The word research is composed of two syllables, re and search. re is a prefix meaning
again, anew or over again search is a verb meaning to examine closely and carefully, to
test and try, or to probe. Research is a structured enquiry that utilizes acceptable
34

scientific methodology to solve problems and create new knowledge that is generally
applicable. Scientific methods consist of systematic observation, classification and
interpretation of data.
The research process methodology consists of six steps and these steps are as follows:
1. Problem definition.
2. Development of an approach to the problem.
3. Research design formulation.
4. Field work or data collection.
5. Data preparation and analysis.
6. Report preparation and presentation.

Title of the study and statement of the Problem


Subject:
Importance of Brand visibility in Vodafone and ways to increase its effectiveness in
Multi-brand outlets.

Scope:
Increasing effectiveness of visibility elements in Multi-Brand outlets (MBOs)

Process:

Need for brand visibility in telecom industry.


Different visibility elements provided by Vodafone to its retailers.
Measuring the effectiveness of current visibility elements in MBOs through
questionnaire.
Ways/methods to increase effectiveness of visibility elements in MBOs by creating new
visibility element.

Definition:
The display of products which makes them appealing, attractive, accessible, engaging,
and enticing to shoppers in a retail store. Visual merchandising utilizes displays- Posters,
Banners, Leaflet, Dangler, lighting, digital technology and interactive elements to catch
customers' attention and persuade them to make purchases. Visual merchandising helps
convey the image of the brand and reflects the personality of the target markets that the
retail store wants to attract.

Problem Definition:
The first step in any marketing research is to define the problem. In defining the problem,
the researcher should take into account the purpose of study, the relevant background
information and the information needed.

Statement of problem:
Visibility elements in telecom industry are provided by all retailers. Moreover, visibility
elements also have an influence in sales of the product. The problem identified here is
35

how to increase store effectiveness through visibility elements. Creating a new visibility
element that could increase store effectiveness as well as be able to attract customers.

Research Design:
A research design is a framework for conducting the marketing research project. It details
the procedure necessary for obtaining the required information, and its purpose is to
design a study that will test the hypothesis of interest, determine possible answers to
research questions and provide the information needed for decision making. Formulating
the research design involves the following steps:-

Research Design: Descriptive Research


We are using the descriptive research as we know the problem and by using this type of
research we are able to get information regarding the attitude of Vodafone retailer
towards retail visibility. A research design is the arrangement of conditions for the
collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure. Research design can be classified into three broad
classes, exploratory, descriptive and casual. In this study descriptive research was used.
This is because descriptive research is essentially a fact and finding approach related
largely to the present and abstracting generalizations by cross sectional study of current
situation.

Data collection method:


For collecting data a questionnaire was developed keeping in mind the objective of the
study. Since the objective of the study is to create a new visibility element, the
questionnaire was designed with the aim of understanding the effectiveness of current
visibility elements in multi-brand outlets. Also the questionnaire was developed in such a
way that it could narrow down the area to focus on when creating a new visibility
element. A survey was conducted in which the questionnaire was filled up by retailers of
multi-brand outlets. The questionnaire contained questions that were mostly comparison
between different mobile operators in terms of visibility provided visibility.
Sample element: sample elements were the retailers of multi-brand outlets.
Extent: the survey was conducted in following areas within Bangalore
Kormangala
J.P nagar
Banshankri
Jayanagar
Electronic city
Indiranagar
Sampling Technique: The sampling elements were selected using convenience
sampling.
Sample Size: The number of sampling elements selected for target areas were 70 for all.
[Abstract] Companies are always looking for tools and ways to increase the brand
visibility and communication. Brand communication to the consumers is always an
important marketing goal of marketers. In doing so, they spend a lot through their
marketing services firm, which provides the advertising and communication services to
36

the client firms. Companies can use point of purchases (POP), like retail outlets and
surroundings, for brand communication. The author personally visited some rural and
semi-urban areas as part of the distributors sales representative team and pointed out
some simple, cost-effective ways to effectively reach the customers, such as brand
communication.
In service industry customers tend to forget about the service they purchased due to the
intangible feature of the service itself. It becomes a task of the marketer to re-enforce the
brand in the mind of the customer through continuous marketing activities. The most
effective marketing activity to re-enforce a brand name among the customer is through
brand visibility or bran communication.
Brand communication is necessary not only for companies producing good but it is all he
more necessary for the service industry. Considering the telecom industry, a customer
who purchases a mobile connection (Sim card) tend to forget about or does not give
much thought to the brand that he owns. He simply uses it to communicate and comes in
contact with the brand only when he goes for a recharge. In such a situation, the marketer
needs to continuously remind the customer about the brand he`s using. Either by coming
up with new service or through brand Communication. The customer must be able to
relate to the brand and feel pride in being connected to it.
Visibility elements are specific promotional elements that help remind the people of the
presence of the bran in the market. It also helps remind its customers about its presence
and through it it also creates awareness of it new plans and schemes. Visibility elements
are seen as anything that helps a customer in identifying a brand, relating to it and
refreshing the sense of being connected to it.
Constant innovation is required in brand communication in order to attract customers.
Visibility elements are designed in such ways that it can easily attract customer`s
attention. Titles and slogans are brainstormed so that customers would want to read it.
These are placed in areas where it can get maximum views by the people. Strategic
alliances are formed with others to keep the name up in the market and build a healthy
brand image.

37

The handset outlet holds a major share of the market with 40%, it was followed by
others which consisted of 27% and included medical shops, grocery stores, electronic
repair shops. It mostly included those shops who were not directly related to the business
of Vodafone.

81% of the retailers were into both sim selling and recharging and 19% of the retailers
were only occupied in recharging cell phones.

38

Category B holds a major share of 72% which indicates that more than half of the
retailers fall into medium sales generating category.

All the retailers agreed to receiving visibility elements fron mobile operators.

39

Airtel, Vodafone and Tata Docomo were among the ranking mobile operators who
provided visibility elements to retail outlets. These were followed by Idea, Aircel,
Reliance and others.

Airtel and Vodafone share the same place when it came to regularity in distribution of
visibility elements. Both the companies were equally competitive in this section. It was
followed by Tata DoCoMo, Idea and others.

40

The frequency of distribution of visibility elements was highest in alternate days. The
merchandisers of respective mobile operators visited retail outlets on alternate days to
distribute visibility elements. However, there were some merchandisers who were not
working hard enough in providing elements to retail outlets.

The above bar chart is a comparison between 4 major mobile operators in terms of
visibility elements provided by to the retailers. In the poster section all the 4 competitors
are almost at the same spot indication high importance of posters. In the dangler section
Vodafone is the leading brand. Similarly in signages Vodafone has more than any other
brand.

41

93% of the retailers said that visibility elements are important and &% denied its
importance. Retailers saw importance of visibility elements in two ways. Firstly how
useful it is in terms of providing the required information and secondly, how can it
increase the shops attractiveness.

94% of the retailers refer to visibility elements specially the Tariff Plans for information
regarding new pans and schemes. However, 6% of the retailers denied referring to it.

42

The above chart shows life span for both hard and soft visibility elements provided by
Vodafone. Signages have the longest life span followed by shelf-strips and banners.
Lowest life span was found in posters and fliers. Knowing the life span of current
visibility elements was important as the new visibility element that has to be created
should have a considerably good life span.

Retailers were of the view that if the company provides new and innovative/attractive
visibility elements which could also increase the attractiveness of the retail outlet, they
would definitely recommend Vodafone to future customers.

43

80% of the retailers believe that customers see/notice the visibility elements. This is
important because it helps the customer to identify the brand. An attractive visibility
element might also influence the buying decision.

Almost all of the retailers said that no one from any mobile operator company has ever
come up to ask suggestions for visibility elements.

44

45

Findings
After the complete analysis of entire study the company put forward a set of
recommendations which are as follows:
Vodafone entered in broadband and fixed phone line market. Vodafone has now
outsourced some of its services like customer services to IBM. Vodafone Essar has nearly
2.2 million subscribers with a market share of 24.2%. Vodafone has 24/7 customer
service with a tag line HAPPY TO HELP YOU. Vodafone has magic box handsets and
business handset to reach their customers specification .Vodafone advertising strategies
are
impressive
to
attract
and
add
on
more
customers.
PRICING Depending on the market conditions / competition from cellular or wll-mobile
service providers and also to suit local conditions, there should be flexible pricing
mechanism
(either
at
central
or
local
).
IMPROVEMENT IN TECHNOLOGY Vodafone should immediately shift to third
generation switches by replacing its c-dot switches. This will improve the quality of
service to desired level and provide simultaneous integration with the nationwide
network. The special distribution of the transmission towers should be increased to avoid
"
no
signal
pockets"
ESTABLISHMENT OF DISTRIBUTION CHANNELS Vodafone should establish
widespread and conspicuous distribution to match that of the competitors. The
distribution network shall make the product visible and available at convenient locations.
LOW PENETRATION RURAL MARKET Large part of Indian rural market is still
untapped therefore Vodafone is required to bring that area under mobility.

46

CONCLUSION
After analyzing the findings of the research we can conclude that VODAFONE with
strong brand recognition is a market leader. VODAFONE that is the most respected
company in the telecom sector is still lagging behind AIRTEL on the ground of ethics,
belief in transparency, 3G and 4G Services. Postpaid cards are popular as they are so
consumer friendly and recharging is a hassle free while travelling or on roaming.
Most of the subscribers has complained about internet connectivity in the network which
is not there in AIRTEL so, Vodafone is getting tough competition in GPRS network.
Vodafone must seriously look into the loop holes in its marketing strategy and tariff plans
to increase its subscriber base in the industry. Vodafone should catch on its core strengths
and competencies like wide network throughout India, own ILD and a basket full off
value added services to compete with the others potential players in the market.
VODAFONE can adopt marketing strategies like low activation fees for Student
postpaid plans, free airtime and other VAS to attract new customers and also try to retain
the existing customer base through providing quality service and better customer care
service.
Although people are aware about the tariff plans offered by other service providers, but
right now they are not in hurry to avoid it. The public wants to wait and watch their
respective performances.

47

Recommendation
There should be better/innovative visibility elements for tariff plans and new
schemes of the company.
Certain merchandisers were not working hard enough in distributing the visibility
elements.
Small retails outlets and less information on products and services of the
company.
Merchandisers have built good relations with the retailers. It was time the
company also did something different to gain their loyalty.
There is more advertisement of products of Vodafone than found in retail outlets.
A huge lot of retailers wanted their shop/outlet to look more attractive and also
requested for new visibility elements.

48

BIBLIOGRAPHY

Books
The books concerned for the accomplishment of the project are as follows:

Philip Kotler 13th Edition MARKETING MANAGEMENT by PEARSON


Ramaswami 10th Edition MARKETING MANAGEMENT Publish by Oxford
G.C. Berrys Fifth edition Research Methodology Publish by McGraw Hill
Education.#SWAPNA PRADHAN ( TATA McGraw-Hill) MARKETING
MANAGEMENT

BUSINESS LINE - boom: ADS can give the extra thrust-S. D. Nai
BUSINESS : The debate rages- Shanthi Venkataraman, Thursday, Nov 24, 2005
INDIAN BRAND FOUNDATION BRAND INDUSTRY, BRANDING.
Websites
http://www.mckinseyquarterly.com/category_editor.aspx?L2=5
http://www.cfoasia.com/link.htm
http://www.strategy-business.com
http://www.cia.gov/cia/publications/factbook/geos/in.html
http://www.retailadvisors.net/
http://www.ibef.org/
http://www.retail.com/
http://www.retailbiz.com/
http://www.trai.com/
Magazines
SOURCE: VODAFONE, Annual Report 2012-13 (Updated on 31st Dec, 2013)

APPENDIX/ANNEXURE
QUESTIONNAIRE FOR RETAILERS

UNDERSTANDING EFFECTIVENESS OF VISIBILITY


ELEMENTS
RETAILER PROFILING
Name of the shop:

Name of the Proprietor:

No. of years in
business:

Contact No.
Location:
SHOP AREA ______________ (sq. feet)
WHAT KIND OF SHOP IS IT?
STATIONERY

HANDSET

KIRANA

CYBER CAF

TICKET BOOKING

OTHERS

SERVICES OFFERED?
SIM SELLING

RECHARGE

BOTH

AVERAGE MONTHLY SALE OF SIMS AT CATEGORY LEVEL


CATEGORY 100+
A
CATEGORY
B

10-99

CATEGORY
C

< 10

Do you get visibility elements from mobile operators?

Which

Yes
No

company/companies

provide

you

with

visibility

elements?

Airtel

Aircel

Vodafone

Reliance

Idea

MTS

Tata DoCoMo

Uninor

Which company is regular at providing visibility elements?


Airtel
Aircel
Vodafone

Reliance

Idea

MTS

Tata DoCoMo

Uninor

What is the frequency at which they provide visibility elements?

Weekly
Fortnightly
Monthly

What elements do they provide?


Airtel
Vodafone
Posters
Danglers
Bunting
Banners
Shelf Strips
Recharge Grids
Fliers
Signage

Tata DoCoMo

Idea

Do you think these visibility elements are important? Why?

Yes
No

Do you refer to the visibility elements provided to you? Are they helpful to you?

Yes
No

How are these visibility elements helpful to you?

Which visibility element is the most useful/helpful to you and how? (In terms of
information)
Which elements do you like from the functionality point of view? How is it useful?

Which Vodafone visibility element currently provided has a longer life span in your
store?
Less than one 1-2 week
2-3 week
One month or
week
more
Posters
Danglers
Bunting
Banners
Shelf Strips
Recharge Grids
Fliers
Signage
Does visibility elements have a role to play in Brand recommendation?

Yes
No

Do customers see/notice these visibility elements?

Yes
No

What kind of visibility elements would you like to get besides the current ones?
________________________________________________________________________
______
Why and how will it be useful?

Do other mobile operators ask for suggestions regarding new visibility elements?
Yes
* No

QUESTIONNAIRE FOR COLLECTING RESPONSE FROM


THE NEW VISIBILITY ELEMENT:
1. How was the new visibility element useful to you?
2. How is it different from the earlier/previous method?

3. How would you rate the visibility of posters inside it?


1

1 Lowest point 7- highest point

4. Do customers view it as a source of information?

5.

Yes
No

Rate its effectiveness on a scale of 1-5?


1

1- Ineffective 5- Highly effective

6. Given a choice which method would you choose?

Old method
New method

7. Did the new visibility element helped you in solving problem of overlapping of
posters by competing operators

Yes
No

8. Would you like to get such visibility elements form Vodafone?

9.

Yes
No

How can this be improve