Lower Utilisation Project Vodafone vandana

LOW UTILISTION TOWERS

IN SIRSA, HARYANA

A SUMMER INTERNSHIP REPORT

Submitted by

VANDANA JOSHI

Registration No.: 11502023

in partial fulfillment Summer Internship for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

School of Business

LOVELY PROFESSIONAL UNIVERSITY

Phagwara, Punjab

July, 2016

ACKNOWLEDEMENT

I would like to express my deepest gratitude to all those who support me and made it possible to

complete this report. A special appreciation that I really want to give to our Internship Supervisor for

this project Mr. Rahul Girdhar, (Area Sales Manager), whose contribution was very remarkable and

was always there to resolve my issues and also helped me to coordinate my project especially in writing

this report.

Furthermore I would also like to acknowledge with much appreciation the crucial role of the entire staff

member of Vodafone, My MD, ADs and DSEs, who make it possible to complete this internship with

success and great achievements. Special thanks goes to my Mr. Nitin Rai (Relationship Manager),

who help me to think critically and gave suggestion about the task “Convincing Retailers”. Last but not

least, many thanks go to the head of the project, Mr. Rahul Monga, (Zonal Head) who have invested

his full effort in guiding the team in achieving the goal. I have to appreciate the guidance given by my

respected mentor Mr. Mithelesh Pandey,(Assistant Professor, LPU) as well as the panels especially in

our project presentation that has improved our presentation skills thanks to their comment and advices.

Hope what we have learned will always be remained.

S.NO

TITLE

PAGE NO.

1 Introduction 6-7

2 Performance of the Company 7-8

3 Vision and Mission of Company 9

4 Branding 9-10

5 Introduction about Report 10-11

6 Purpose and Objectives 12-13

7 Distribution Channel 13-14

8 My Position and Responsibility 14-18

9 Site Classification 19-20

10 Amount of Work done and Data Presentation 20-23

11 Problem and Findings 24

12 Recommendations 25

13 Conclusion 26

14 Evidences 27

15 References 28

VODAFONE INDIA LIMITED

VODAFONE STORE

BOARD OF DIRECTORS


INTRODUCTION


COMPANY OVERVIEW:

Vodafone India Limited is the second largest mobile network operator in India by subscriber base, after

Airtel. The company was incorporated in 1992 and is based in Mumbai, Maharashtra with design stores

in Ambala and Narnaul. Vodafone India Limited operates as a subsidiary of Vodafone Group Plc. It has

over 194 million customers. The company offers prepaid and postpaid services, including mobile

number portability, roaming and calling cards; mobile internet and phones for customers. It offers its

products and services through its stores and online.

Vodafone India Limited was formerly known as Vodafone Essar Limited and changed its name to

Vodafone India Limited in October 2011.

TIMELINE:

YEAR MILESTONE

1995 Hutchison Whampoa launches operations in Mumbai.

2000 Services in other metros- Delhi, Kolkata and also Gujarat markets through Essar

Acquisition.

2002 Operations in Karnataka, Andhra Pradesh and Chennai.

2003 Acquires AirCelDigilink (ADIL- ESSAR subsidiary)

2005 Starts operations in three circles – Tamil Nadu, Kerala and Maharashtra, after acquiring

BPL, Mobile.

2007 Acquires a 67% stake in Hutchison Essar for $11.1 billion with a subscriber base of 30

million.

The company renamed ‘Vodafone Essar’ and ‘Hutch’ rebranded as ‘Vodafone’.

2010 Vodafone crosses 100 million subscribers.

Vodafone acquires spectrum for 9 circles in India in the auction for 3G spectrum.

2011 Vodafone Group buys out its partner Essar from its Indian mobile phone business. Pays

$5.46 billion to buy Essar’s 33% stake in the Indian subsidiary taking Vodafone’s share to

74%.

Vodafone Essar Limited becomes Vodafone India Limited.

Vodafone commences launch of 3G in India in phased manner.

Vodafone India revenues stand at INR 27,000 crores.

2012 Vodafone India is INR 32,000 crores in revenues, crosses the 150 million subscriber mark.

Vodafone India recognized as the ‘Best Marketing Company in India’ by an Economic

Times survey.

Vodafone completes 5years in India.

Vodafone India announces a strategic alliance with ICICI Bank to launch – M-pesa –

unique mobile money transfer and payment service – facilitate financial inclusion.

Vodafone India acquires additional spectrum in 14 circles in the 2G spectrum.

2013 Vodafone files FIPB application to increase stake to 100% in Vodafone India(following

100% FDI in Telecom sector.

Vodafone receives FIPB clearance to increase stake to 100% in India unit.

2014 Vodafone India is fully owned by Vodafone Group.

PERFORMANCE OF THE COMPANY

Vodafone is having 19% market share and stands at second position in Indian telecom industry

as of February 2015.

Vodafone is the second largest service provider in India having more than 190 million

subscribers. The performance for the financial year ended 2015. The data usage is contributing

more towards the growth of the company as it stands 44.1% higher due to higher usage, and

voice revenue is 7.1% higher due to increase in subscribers.

The company continues to be one of the leading operators, having a revenue market share of

32.0% for the year 2014-15. Revenue from the operations of the Company stood at Rs.42,121

million, representing a growth of 14.3% as compared to 2013-14.

The PBIDTA increased to Rs.32,984 million, an increase of 99.6% compared to 2013-14.

The Profit after tax (PAT) stood at Rs.6,280 million for the year 2014-15 as compared to loss of

Rs.1,149 million posted in previous year.

VISION AND MISSION


VISION:

“Our vision is to be the communication leader in an increasingly connected world.”

BRANDING

Vodafone is a formidable global brand and has always ranked amongst the top most valued brands

globally and Most Exciting and Admirable Brand in India.

Organizational Structure:

Vodafone India Limited is part of the Vodafone Group Plc, with pan-India operations, serving around

194 million customers.

Cellular Services:

Vodafone India Group offers both prepaid and postpaid GSM cellular phone coverage with

comprehensive pan-India urban and rural penetration.

Enterprise Services:

Vodafone Business Services provide total telecommunications (Voice and data) solutions across

mobility and wireline platforms, to serve the needs of enterprises, both large and small. It enjoys the

twin advantages of global expertise and experience and knowledge of local markets, besides a robust

network infrastructure and 24*7 Network of Coverage (NOC).

M-pesa:

‘M-pesa’ is a safe, secure and convenient service that enables money transfers to any mobile device in

India. It is also useful for airtime top-ups, bill payment services and can also pay for purchases at some

store. M-pesa, therefore is an important facilitator of the financial inclusion. VMPL, has partnered with

ICICI Bank to launch m-pesa across the India.

INTRODUCTION ABOUT REPORT

BASE TRANSCEIVER STATION (BTS)

A base transceiver station (BTS) is a piece of network equipment that facilitates wireless communication

between a device and network. However, because a BTS is associated with mobile communications

technologies, it refers to the equipment that creates the “cell” in a cellular network. Sometimes, an entire

base station, plus its tower, is improperly referred to as a BTS or cellphone tower. A BTS typically has

multiple transceivers that allow it to serve many of the cell’s different frequencies and sectors.

A BTS consists of following:

Antennas that relay radio messages

Transceivers

Duplexers

Amplifiers

LOW UTILIZATION TOWERS:

The BTS or commonly known as tower of company is considered as factory and to maintain a factory a

certain cost is incurred by company. Normally it takes around Rs.150000-200000 per month to a

company to maintain a tower, and if that particular tower doesn’t provide the potential benefit to the

company it comes under low utilization tower. Low utilization towers are more in rural areas as

compared to urban areas.

Reason to come under low utilization tag:

Competitors in that particular site are having more revenue earning subscribers.

There are no retailers of the company in that area.

Network coverage is weak and people prefer other network.

Company is providing service in that area.

Delay in sim activation process.

People are not spending much on calling and data.

Visibility of the company is very low as compared to other network.

Competitors are porting numbers to their network by providing attractive offers.

Purpose of the project

The main purpose of the project is to bring sites that are given to me, out from LUT.

As these sites are non-profitable and are not bringing any revenue to company so, in order to make the

sites profitable we made few objectives. By achieving those objectives slowly, the site will come out of

LUT and will start giving good revenue to company.

Objectives of the project

To provide better service –

In order to bring the site out from LUT we have to provide better service to retailers. Availability of

recharge and all type of coupons, regular visit of DSE or AD in site, timely activations of sim cards is

necessary for better service.

-

In order to grab more customers, we have to make sure that customers know all the schemes that are in

market for them. Pasting grid posters for all the monthly schemes and handmade posters for new

schemes is also one of the way to pull out the sites out from LUT.

–

Encouraging retailer to sell more recharges and coupons can also bring the site out from LUT.

-

One of the reason for the site to be a LUT can be there are less activation and recharge outlets. Low

availability of people working for company in a site can vanish the name of the company from the site.

-

Adding new customers will surely bring revenue because of more recharges sale.

-

Portability is one of the best way as it adds new customers to Vodafone that too for a longer period of

time.

A new project was added whose moto was to provide good service.

tive of Project Vistaris to provide good service to retailors so they can work for Vodafone

without any problem.

process is weak, service is weak and there is need of a distributor who can provide stock to every

retailor, there in that particular area and can solve any and every problem they are facing related to

Vodafone.

VODAFONE DISTRIBUTION CHANNEL

1. Super Distributor (SD):

Super distributor handles around 7-12 AD’s, and earns almost 0.4% of the total revenue and also

extra benefit on new activations.

2. Master Distributor (MD):

Master distributor directly handles almost 4-5 AD’s and also has direct control over market and

maintains relationship with retailers. Master distributor earns around 1.4% of total revenue and

gets extra benefit on new activations.

3. Associate Distributor (AD):

Associate distributor handles around 4-5 market and has direct control over the market. All the

activities in the market are done under the stamp of AD. Associate distributor earns from recharge

activities and also from new activations done in his market.

4. Distributor Sales Executive (DSE):

DSE or Feet on street works directly with retailers, all the activities in the market is done by DSE.

From recharging the E-Top number to collecting the new activation forms.

PREPAID HIERARCHY FOLLOWED:

1. ZM – Zonal manager

2. ZPH – Assistant Zonal manager

3. ASM – Assistant manager

4. RM – Relationship manager

5. PSR – Area manager

6. SD – Super distributor

7. MD – Master distributor

8. AD – Associate distributor

9. DSE – Direct Selling Executive

MY POSITION AND RESPOSIBLITY

My position in Vodafone was as Market Development Executive (MDE).

Three main responsibilities:

Working on visibility of Vodafone, by sticking recharge grids and handmade posters.

Creating and maintaining goodwill with retailers, and also adding new retailers in the market.

Increase subscriber base of the company by doing canopy activities and also engaging retailers in

activation process.

Other responsibilities:

Educating retailers about new schemes and offers available with Vodafone.

Taking queries from retailers and customers and convey them to Relationship Manager.

Ensuring timely activation of the new connections.

Smooth service in the area, through timely recharge of retailers E-Top numbers and also work on

availability of sim cards (normal, CYN and MNP).

GROUND REALITY:

Visibility:

One of my responsibilities was to work on visibility part by sticking handmade posters and grid recharge

charts in the market.

Maintaining goodwill:

One of the important responsibilities was to create and regain the confidence of the retailers in the

market as they are backbone of the business.

Canopy Activities:

Major part of my work was done through canopy activities. Canopy activities were important in order

to get new connections by providing exciting offers to the customers.

Educating Retailers:

In order to get work done through retailers it was very important to educate retailers about new offers

and schemes available with Vodafone for them. The retailers were divided into different categories to

avail claim for the activations done. And also different FRC’s were available with different OTF

benefit to retailers.

Vodafone divides retailers into three categories:

1. Platinum

2. Gold

3. Silver/Bronze

Platinum

FRC OTF BASE TARGET DAO

75

23

15

20

5rs/no>10days

DAO

7rs/no>15days

DAO

12rs/no>22days

DAO

If retailer is doing SRC of Rs.3 on 50% of VAC2 then he will get total amount of payout.

Gold


75

23

15

15

5rs/no>10days

DAO

7rs/no>15days

DAO

12rs/no>22days

DAO


Silver/Bronze


75

23

15

10

5rs/no>10days

DAO

7rs/no>15days

DAO

12rs/no>22days

DAO


AMO payout for retailers:

FRC Grid for retailers:

SITES CLASSIFICATION

All of my three sites were rural areas.

Sites given to me were purely LUT sites where a lot of work was needed to be done.

Vodafone service was not available in these sites for a long time.

Network coverage was one of the big issues.

Few retailers were having E-Top numbers of Vodafone.

Schemes and offers were not conveyed to retailers properly.

The main features of this project are:

To provide good service to existing retailers.

To motivate and encourage retailers to undertake activation and push more recharge.

To open new recharge and activation outlets.

To increase customer base by new connections and porting other network numbers.

The activities for this project include:

To visit market regularly the site, to ensure retailers are working according to their target.

To stick recharge grids and handmade posters in order to increase visibility.

To do canopy activities in all of the sites in order to increase Gross Added Share(GAS) of the

company.

Selling Process:

Selling process includes convincing retailers to work for Vodafone by pitching a demo, where we explain

AMO i.e. only for retailers which explains how retailers can earn while working for Vodafone.

Route plan –

Market visit- As our project started I was told by my relationship manager to survey all the four markets to

know about the scenario of the markets. The survey was conducted with DSE’s and AD’s who visit their

markets regularly. This is to check the scenario of the market and to see what are the problems the existing

retailers are facing.

Visibility-The very first task was to increase visibility in all four markets. I went to all four markets and

pasted grid posters. I even made handmade posters of new schemes and pasted in shops.

Availability- From daily visit to market I came to know about all the problems my retailers are facing

weather it was related to availability of recharge, coupons, or even DSE is available to solve other problems

of retailer. I had conversation with all the retailers and asked about problems they are facing. I tried to solve

the problems and even conveyed all the problems to AM sir in daily report so that problems of retailers are

taken seriously.

Better service- when you are visiting a market regularly and solving the problems of retailers weather it is

their problem regarding Vodafone or some customer has asked for it, you are actually providing a good

service. Availability leads to better service.

Motivation- To earn a good amount from market for company you need to motivate retailers to work more

for Vodafone. Let if a retailer has asked for a recharge of 3000 you can motivate him and tell him to work

hard for himself and go for 4000 as he can do it. Motivating him to work on porting and explain him about

the profit on different numbers by checking schemes will bring profit to both company and retailer too.

Result analysis- After working in market for a period of time the next step is to analyze what are the results.

If the results are good, then we should think to make them better than the previous one and if the results are

not up to the mark, then we should think of to change the plan a little or modify it.

Further progress- Working on a plan will not give instant results as we have to wait for a period of time

in order to make trust and motivate retailers and it will take time. So, in order to get good results, stick to

the plan is a process we need to follow for a period of time.

AMOUNT OF WORK DONE

Work done and Data presentation

At first we started with market survey where we surveyed all our markets assigned and analyzed the situation

of the market. We tried to know each and every problem that site contain so that we can solve them.

The targets were also given of Gross, URO, UAO, Data FR and MNPO whose growth can bring those LUT

sites out from loss. So work started with convincing retailers to work for Vodafone either recharges,

activations or MNP.

ed

DATA PRESENTATION

Data presentation of target vs achievement of month June and July.

(Table – 1) In the month of June my target and achievements were –

June 2016 Gross Target vs Achievement:

S.NO TYPE TARGET ACHIEVED %ACHIEVEMENT

1 GROSS 792 618 87

2 URO 27 25 90

3 UAO 16 13 88

4 MNPO 11 9 85

5 DATA FR 279 46 19

I was not able to achieve gross target fully because the service of Vodafone was very weak and no

distributor is there in these areas, but I had worked hard and because of that gross target in June was

more than gross target in May.

June 2016 URO, UAO, MNPO Target vs Achievement:

FARWAIN

TARGET

ACHIEVED

URO

UAO MNPO

11

06 04

URO

UAO MNPO

10

05 07

PANNIHARI

TARGET

ACHIEVED

URO

UAO MNPO

08

05 03

URO

UAO MNPO

09

05 02

KUTABUDH

TARGET

ACHIEVED

URO UAO MNPO

09 05 04

URO UAO MNPO

07 04 04

I had added many new retailers in these sites and Vodafone was slowly gaining market in these areas,

as the results were at par compared to last month.

July 2016, Gross Target Vs Achieved

S.NO TYPE TARGET ACHIEVED %ACHIEVEMENT

1 GROSS 946 920 98

2 URO 33 27 87

3 UAO 18 22 117

4 MNPO 13 13 92

5 DATA FR 238 14 5

July URO,UAO, MNPO Target Vs Achieved

FARWAIN

TARGET

ACHIEVED

URO

UAO MNPO

11

06 04

URO

UAO MNPO

10

05 07

PANNIHARI

TARGET

ACHIEVED

URO

UAO MNPO

08

05 03

URO

UAO MNPO

09

05 02

KUTABUDH

TARGET

ACHIEVED

URO UAO MNPO

09 05 04

URO UAO MNPO

07 04 04

Gross Added Share in June:

SITE

ZONE

Voda GAS

Ind GAS

Voda RES

Ind RES

Farwain

Hissar

69

429

1069

5122

Pannihari

Hissar

21

350

782

4354

Kutabudh

Hissar

547

805

1502

4019

Gross Added Share in July:

SITE

ZONE

Voda GAS

Ind GAS

Voda RES

Ind RES

Farwain

Hissar

137

670

1179

5494

Pannihari

Hissar

71

458

761

3826

Kutabudh

Hissar

520

765

1530

4006

Problems

No 3G is there in my LUT sites due to which customers are showing more interest towards

competitors product because idea and airtel is having 3G network .

Improper services is the biggest issue.

Retailers is having issue that Vodafone claim comes after 1 month whereas competitors

claim comes in a week.

No timely visibility.

DSE is not having any knowledge of new schemes due to which they are not able to

communicate it to the retailers.

Irregularity of market through DSE.

Lack of availability of sims in AD point.

Late activation of new connections due to which

Findings

Most of the shopkeepers in these areas were very supporting and welcoming.

Most of the retailers were not aware about the schemes and offers available with Vodafone.

Most of the activation outlets were uneducated; they were facing problems in filing RPAC’s

of the new connections.

Some of the customers were unaware of their best offer check by 121.

The customers in these LUT sites were more interested in less call charges, which was not

available in Vodafone.

There was negligible presence of Vodafone in these areas.

Offers and recharge grids were written in English hence most of customers remained

deprived.

There was also delay in posting the posters for month’s offers.

People were not using internet enabled phone in these areas so the recharge outlets were

relying only on main balance.

Also there were no exciting offers for existing customers.

There was also delay in activation process of new connections.

Most of the shopkeepers were doing recharge as a side business.

Also recharge outlets were not willing to upgrade in activation outlets.

Recommendations

Vodafone should increase visibility in these areas in order to gain more market share.

DSE’s and PSR’s should visit these sites regularly in order to gain confidence.

Either morning or evening time should be chosen to visit these markets as I found most of the

shops were closed during day.

Company should come up with exciting offers for these areas, as I found people were not

interested in the offers which we were offering.

Company should also come up with good schemes for retailers in order to lure them to work

for Vodafone.

Also DSE’s and PSR’s should provide uninterrupted service in the market whether it’s

recharging flexi or collecting new connection forms from the market.

The activation process should be made smooth, fast and timely activation of new connections

will surely increase the gross share of the company.

DSE’s and PSR’s should educate retailers about new schemes and offers so that they can tale

benefit from these offers.

Good relationships should be maintained with retailers as they are backbone of the company.

RM should visit the market once in a week and communicate with retailers this will increase

credibility of the company.

Gate meeting should be regular in order to clear all the doubts about new schemes and plans.

Offers should be provided according to the needs of customers, as most of the customers want

less call charges.

Conclusion

Customer loyalty is very important in order to stay at top position in the market. Customers and

retailers are the main driver of the business in telecom sector. In order to keep them happy company

needs to provide them exciting and extra benefits.

The key to a successful business is a steady customer base. After all successful businesses typically

see 80 percent of their business come from 20 percent of their customers.

Gaining back LUT site is one of the tough jobs for any company. Vodafone is working hard in these

LUT sites in order to gain the lead in the market.

The best way to gain back these areas is to make new recharge and activation outlets on the first hand

and then convert them to quality outlets.

The company is taking every bit of effort to penetrate in these rural areas many new schemes and offers

are devised just for these LUT sites, in order to gain the market share. Providing the extra benefits to

AD’s of these areas will increase the market activity of the Vodafone in the market.

If the company will carry on good work of the penetration into these rural markets and enhance it by

considering the recommendations made above in the report then it can pace up the success of LUT

penetration. Through its efforts of promotion and penetration it will surely become the first preference

of every customer and retailers in these LUT sites.

Evidences

Every day I was doing visibility activity in the market by sticking posters and also canopy activity

through which exciting offers were given in order to get new subscribers and also port in numbers of

other network.

References

http://www.vodafone.in/about-us/home [viewed 02/08/2016]

http://www.vodafone.in/_layouts/15/images/consumer/corporate_governance/pdfs/Voda

fone%20India_Limited_ANNUAL_REPORT_31March2015.pdf

http://www.vodafone.in/about-us/home

http://www.vodafone.in/_layouts/15/images/consumer/corporate_governance/pdfs/Vodafone%20India_Limited_ANNUAL_REPORT_31March2015.pdf

http://www.vodafone.in/_layouts/15/images/consumer/corporate_governance/pdfs/Vodafone%20India_Limited_ANNUAL_REPORT_31March2015.pdf

Lower Utilisation Project Vodafone vandana

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