CONTENTS

BACKGROUND INTRODUCTION OBJECTIVE SCOPE OF THE STUDY RESEARCH METHODOLOGY MARKETING STRATEGIES LIMITATIONS FINDINGS & ANALYSIS CONCLUSION CUSTOMER RESPONSE TOWARDS QUESTIONNAIRE BIBLIOGRAPHY

BACKGROUND

• The project is an extensive report on how the Vodafone Company markets its strategies & how the company has been able in tackling the present tough competition and how it is coping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the Vodafone Company. This report also contains the basic marketing strategies that are used by the Vodafone Company of manufacturing process, technology, production policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues.

 • In today’s world of cutthroat fierce competition, it is very

essential to not only exist but also to excel in the market. Today’s market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there.

INTRODUCTION• Vodafone Essar, formally known as Hutchison Essar is a

cellular operator in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of customers.

• 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. 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 with good presence in the metros.

• Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India .

Growth of Hutchison Essar (1992-2010)

• 1992: Hutchison Whampoa and Max Group established Hutchison Max• 2000: Acquisition of Delhi operations Entered Calcutta and Gujarat

markets through ESSAR acquisition • 2001: Won auction for licences to operate GSM services in Karnataka,

Andhra Pradesh and Chennai•  2003: Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which

operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand

• 2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and ' West Bengal '

• 2005: Acquired BPL (Except Mumbai)- 3 Circles, another mobile service provider in India

• 2008: Vodafone acquired the Licence in remaining 7 circles and has started its pending operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya Nagar, Bhopal as well as in Orissa , Assam , North East and Bihar.Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network.

• 2009: Vodafone launched Recharge Online. Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card Industry Security Standard (PCI DSS) certification for its Mumbai operations and launches unlimited SMS offer in Mumbai.

• 2010: Vodafone emerged as the most admired marketer in India .

OBJECTIVE

The Primary objectives of the study are as under :- • To understand the Indian Telecom market. • To understand the market entry strategy adopted by Vodafone.  • To understand the competitive scenario in Indian Telecom market. • To identify the market performance of Vodafone industry . • To study the market of Vodafone Industry on big scale

telecommunication sector.

• To study customer buying behavior and factors which influence

the purchase decision process. • To know how the company has been successful in encountering

the aggressive marketing strategies of competitors. .

SCOPE OF THE STUDY• To conduct this research the target population was the

mobile users, who are using GSM Technology. . •  Targeted geographic area of Kolkata. Sample size of 50

persons was taken.

• To these 50 people a questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions.

•  The date during which questionnaires were filled.

•  Some dealers were also interviewed to know their prospective. Interviews with the STORE managers/executives of GSM service providers were also conducted.

•  Finally the collected data and information was analyzed and compiled to arrive at the conclusion given.

RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the

subject. The prime objective of the project is to identify the market performance of Vodafone and thereby analyse the various parameters of marketing strategies, advertising ,etc adopted by the company.

The research methodology adopted is basically based on both primary and secondary data via which the most recent and accurate piece of first hand information could be collected. However secondary data has been used to support primary data wherever needed.

Primary data was collected using the following techniques : • Questionnaire Method• Direct Interview Method • Observation Method The main tool used was, the questionnaire method. Further direct interview

method,where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in.

Type of Research Methodology EXPLORATORY: The type of research methodology used and carried out was Exploratory in

nature. The word Exploratory means serving or intending to explore. The basic objective of such research is to determine the approximate area where the drawback of the company lies and also to identify the course of action to solve it. For this purpose the information proved useful for studying and understanding the problems pertaining to the company.

MARKETING STRATEGIESVodafone targets the rural India • The main targeted customers of Vodafone are from rural India.• By offering cheap and light mobile sets Vodafone attracts most of the

customers of small villages and towns.

Offering cheap handsets• Vodafone offers cheap and free connections to all customers. The cost for

these sets was Rs-799-849-1099 per set and onward.

Free support and services• In every district and big towns Vodafone opens its service centers to

provide better support and services.

Strong logistics and supply chain  • Vodafone has a strong logistic and supply all over India.In every small town

the potential customers can easily purchase the Vodafone SIM & Sets.

Targeting youngsters in metropolitans • Vodafone attracts youngsters by offering colorful handset at very low

prices.

LIMITATIONS

The following are the limitations faced in preparing the report:-

• During the study, on many occasions the respondent groups gave a cold shoulder.

 • The respondents from whom primary data was gathered many times displayed

complete ignorance about the complete branded range, which was being studied.

 • Lack of time is the basic limitation in the project. • Some retailers/whole sellers refuse to cooperate with the queries. • Some retailers/wholesalers gave biased or incomplete information regarding

the study. • Money played a vital factor in the whole project duration. • Lack of proper information and experience due to short period of time.

• Some respondents did not answer all the questions or do not have time to answer.

 

FINDINGS AND ANALYSIS

AGE GROUP CHART

As we can see from the chart below, the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. This segment is the one which gives maximum business to the mobile operators. This segment constitutes the young executives and other office going people. They are 65% of the total people who were interviewed. The next age group are the people who are 28-35 years old. They are 20% of the total. They are those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 years old. They are school and college going students and carry mobile phones to flaunt. They are 15% of the total interviewed people.

Age Group

010203040506070

15-21 (15%)21-28 (65%)28-35 (20%)

OCCUPATION GRAPH

As the graph shows that 55% of the total people interviewed are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele - callers etc. who require mobile for their official purposes. The next category is the households, who are either housewife, small units which operate from their homes etc. They are 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of the whole is categories who are the professionals.

Customer Segment

Students (15%)Executives (55%)Household (20%)Others (10%)

MONTHLY EXPENSE GRAPH

People on an average spend Rs 500 per month as their mobile phone expense. 64% people spend this amount. 24% people spend Rs 300 per month as their monthly mobile expense. The remaining 12% had an expense more than Rs 1000, they could be the ones having postpaid connections and having a lot of business calls on their mobiles.

Monthly Expense

< Rs 300 (24%)> Rs 500 (64%)> Rs 1000 (12%)

CONCLUSION Being the leader in telecommunications sector, Bharti Airtel holds the

lion’s share of market of the communication sector. However Vodafone has been giving giving tough competition to Bharti Airtel . Vodafone is the second largest player and shareholder in the Indian communication sector. Since its launch Vodafone has been adopting aggressive marketing strategies. Moreover, Hutchison Essar Telecom captured 22% market share in the first month of its launch of postpaid subscription in the year 2002

With a different technology altogether, Vodafone creates its own market. Today it deals in almost every business of communication sector. It is making and changing the strategies to constantly capture the market shares. The main targeted customers of Vodafone are from rural India. By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages and towns. It offers cheap and free connections to all customers. The cost for these sets is around Rs-799-849-1099 per set and onwards.

Vodafone has to work more in every field of communication business as it is the time not only to survive but to sustain in the market for a long time. For this it has to work on its all marketing strategies, marketing, promotion, brand image.etc. Airtel and the rest of the competitors has to take Vodafone very seriously and update their strategies from time to time and when the need arises to exist competitively in the market.

CUSTOMER’S RESPONSE TOWARDS

QUESTIONNAIRES

Are you aware of various promotional activities being run by Vodafone, if yes then how?

• Customer Care• By Ad Films • By Camp • 24 hrs call center services

Majority of the people chose Ad Films,one which features the zoozoos.

Customer Awareness

Customer Care (25%)By Ad Films (35%)By Camp (10%)24 hrs call center services (30%)

While your usage of the service did you feel that the service and the facilities that you are acquiring from

Vodafone cater to your needs?

• Very well • Adequately • Not well enough • Not at all

Customer Satisfaction

Very well (55%)Adequately (30%)Not well enough (12%)Not at all (3%)

BIBLIOGRAPHY In this project report, while finalizing and for analyzing quality problem

in details the following Books, Magazines/Journals and Web Sites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report.

 Books :• Principles of Marketing –Philip Kotler & Kevin Keller edi. 12• Market Research – D.D. Sharma • Research Methodology – C.R. Kothari  Websites:• www.google.com• www.india.com• www.Vodafone.in• http://www.blonnet.com/2004/06/26/stories/2004062602180700.htm • com/companies/companies_r/Vodafone_infocom/20031104_stop-

roaming.htm • www.encyclopedia.com  Magazines:• India Today(3 November to 11 November 2009)• Vodafone Essar (2 July to 10 July 2004)• Vodafone India page of HT paper (Thursday 1December 2009)

THANK YOU !!!!!