CUSTOMER ASSIGNMENT

ON

VODAFONE

SUBMITTED B Y:

Pankaj Gupta PG20121394

Nishtha Khurana PG20121759

Nitika Yadav PG20121333

Nishant Gambhir PG20121657

Nupur Gupta PG20121599

Pankaj Yadav PG20121555

Vodafone company profile

Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the third largest mobile network operator in India.

Vodafone comes from word Voice and Data.

Type of Organization :- Private Industry :- Telecommunication Predecessor(s) :-Hutchison Essar Founded :- 1994 Headquarters :- Mumbai, Maharashtra, India Head India :- Peter Martin COO India :- Sunil Sood Subscriber Base :-141,591.840 Net profit (FY 2011-2012) :-9749 crore Products :- Mobile telephony, Wireless broadband services Owner(s) :-Vodafone group Parent :- Vodafone international Website :- www.vodafone.com

www.vodafone.in

Vodafone is the world’s leading international mobile communications group with operations in 25 countries across five continents and over 300 million customers

Vodafone entered in India by acquiring 10% stake in Bharti Airtel limited in December 2005

In year March 2007, Vodafone acquired 67% stake from Hutchison Essar limited for USD 11.1 billion

The whole company was valued at USD 18.8 billion.

In year September 2007, Vodafone started its rebranding from Hutch to Vodafone.

On July 2011, Vodafone group agreed terms for the buy-out of its partner Essar from its Indian mobile phone business.

Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology. Vodafone India launched 3G services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks.

Timeline

1992: Hutchison Whampoa and MAX group establish Hutchison Max

2000: Acquisition of Delhi operations and entry into Calcutta (now Kolkata) 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 rebranded it 'Hutch'.

2004: Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh (West) and West Bengal.

2005: Acquired BPL Mobile operations in 3 circles. This left BPL with operations only in Mumbai, where it still operates

under the brand 'Loop Mobile'.

2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The company is renamed Vodafone Essar.

'Hutch' is rebranded to 'Vodafone'.

2008: Vodafone acquires the licences in remaining 7 circles and has starts its pending operations in Madhya

Pradesh circle, as well as in Orissa, Assam, North East and Bihar.

2011: Vodafone Group buys out its partner Essar from its Indian mobile phone business. It paid $5.46 billion to take Essar

out of its 33% stake in the Indian subsidiary. It left Vodafone owning 74% of the Indian business.

Subscriber Base

Telecom Cicle No. of SubscribersGujarat 14,910,573

Uttar Pradesh(East) 14,237,217Maharashtra 11,962,824West Bengal 11,040,815Tamil Nadu 9,330,557Rajasthan 8,711,277

Uttar Pradesh(West) 9,234,369Andhra Pradesh 7,347,024

Delhi 7,788,376Goa 7,134,576

Karnataka 6,591,039Kerala 5,535,177Bihar 5,244,148

Kolkata 4,373,647Punjab 4,132,392

Haryana 4,170,943Madhya Pradesh 3,135,580

Chennai 2,113,992Odisha 2,338,159Assam 1,650,109

North East 861,826Jammu & Kashmir 565,253Himachal Pradesh 357,430

Mumbai 5,887,113

Competitors

Vodafone compete with 14 other mobile operators throughout India. They are :-

Aircel Airtel BSNL Loop Mobile MTNL MTS Reliance Communication Tata DoCoMo Tata Indicom Uninor Videocon Virgin Mobile

Vodafone India Market Share

Ownership :-67% Customer Base:-130,920,732. Market share :-23.59% Website :- www.vodafone.in

STP Analysis (Segmentation, Targeting and Positioning Strategies)

HUTCHISON ESSAR INDIAN

COMPANY

ESSAR

GROUP

ASIM GHOSH

12% AND OTHER

COMPANIES IN

MINORITY

HTIL (WHAMPOA GROUP OF

LIA KA SHING HONG KONG A FOREIGN COMPANY)

VODAFONE A FOREI

GN COMPANY

TAKES

OVER67

%

Segmentation

Vodafone adopts multi segmentation approach. They have segmented their customer on the basis of 3 categories and they are as follows

1. Demographic: Vodafone uses the occupation aspect in the demographic category of segmentation. They divide their users as consumer and business. On their website these two segments are catered to by two completely different web pages.

Source - http://www.vodafone.in/pages/home_del.aspx?cid=del

2. Geographic: The Company provides different plans, tariffs and offers to different customers depending on the state that they come from.

For example, Bonus cards for SMS Services are different for different circle In MP circle BC 66 offers 1000 sms for 30 days (local + national ) where as in Delhi

NCR circle BC 62 offers 700 sms per month (local + National) Source - https://shop.vodafone.in/shop/rechargeOnline.jsp?startValue=31

3. Behavioral (User Status): The users are further segmented depending upon whether they are post paid users or pre paid users. Separate plans are then provided to each user depending upon their category.

Source - https://shop.vodafone.in/shop/postpaidHome.jsp

Targeting

Vodafone is adopting a multi segment targeting. They are targeting the high end user, low end

user, the business professional as well as the common man. While they are providing “chota

recharge” for their pre paid users, at the same time they are also providing international roaming

facility, calling card etc for their high end users or post paid users.

A multi segment targeting approach makes sense also as India is a rapidly growing telecom

market and with the tele density increasing, one can be sure that people of all strata’s would start

owning a mobile phone very soon. Thus to target the huge population a multi segment targeting

approach makes more sense.

Therefore the targeting of Vodafone is done on the basis of marketing specialization

ProductMarket (as per customer

Income)

 

low end High End

Business Class

     Vodafon

e      

 

          

     

Positioning

Identify the target marketThe person seeking for mobile connection, and can afford the services of Vodafone.

Determine needs and benefits sought by target marketIn the early era people used to depend on STD and PCO booth for making a call, these

days people want to connect with their friends and relatives any time anywhere. So a mobile connection will provide

Easy connectivity Avoiding the inconvenience in using public booths Cheep call rates Value added services ( like GPRS, caller tunes , alerts , sms , mms . etc) Self Esteem ( social status of user will be higher)

Marketing Mix- 7 P’s analysis

1. Product

Services offered by Vodafone India.

PrepaidPostpaid

Value added

services

Caller Tunes

Blackberry Services

M-shop

Vodafone Delight

National and International

Roaming

Number Portability

Online Bill Paymet and recharges

Mail and messaging

Alerts

Internet ( GPRS, Edge)

2. PriceAs Vodafone is very big brand so they follow market penetration pricing strategy

For example in Vodafone prepaid recharges are available from Re 1 , Rs 2, Rs 4 , Rs 8 and so on (Pan India), where as other competitors recharge coupons started from Rs 10.

Source :- https://shop.vodafone.in/shop/rechargeOnline.jsp?cid=del

3. PlaceVodafone follows 3 types of distribution strategies, they are as followsA. Exclusive :-

“Vodafone stores” located at different places are owned by company itself. In Delhi & NCR there are 29 Vodafone stores Source – (http://www.vodafone.in/pages/vodafone_stores.aspx?

currentpage=3&cid=del) Vodafone Mobile Stores are service centers located in vehicles that travel around your

city, special in rural areas of Gujarat and Rajasthan where a customer can Get Prepaid connections and recharge cards View demos and activate Value Added Services Get information on the latest recharges Have your queries answered, SIM replaced and much more Source – (http://www.vodafone.in/pages/find_store.aspx?cid=mum)

B. Selective :- “Vodafone mini stores” in India are operated through franchise In Delhi & NCR there are 88 Vodafone mini stores Source – http://www.vodafone.in/pages/vodafone_ministores.aspx?

currentpage=9&cid=del

C. Intensive :- Various retailers like mom and pop shop, in and out store, kirana stores, STD- PCO booth, paan wala’s they also have Vodafone recharge service available .

4. PromotionVodafone uses integrated marketing communication strategy (IMC)

Prepaid and Value added Services

Print Media,Interective Media(Facebook. Twitter, officialwebsite)

Electronic Media ( television ,Radio)

B 2 C (Vodafone stores and mini stores, canopy)

Postpaid

B2C ((Vodafone stores and mini stores, canopy)

B2B ( sales representatives pitching postpaid plans)

5. Physical evidence The Vodafone stores, their merchandise like sim cards, handsets etc, their

website, personnel etc all contribute to the physical evidence of the company.

6. People All the employees and personnel associated with the Vodafone represents the

people aspect of the marketing Mix For example various training programs offered to enhance their skills

7. Process The process for such a company depends on the kind of product or service that the

customer wants to avail. As the complexity of the customer increases, for eg: from a

normal customer to a business user to an enterprise, the complexity of the process would

also increase.

Perceptual Map

Using Vodafone services increases the social status or self esteem of a person in a society.

Vodafone provides high quality services, so customers are very much satisfied with it.

The current positioning of Vodafone is “Power to you”. With the competition in the telecom space heating up, most of the telecom providers are providing almost the same tariffs. As the companies understand that they cannot gain advantage through the price wars, each is trying to differentiate itself by providing something extra. Vodafone is treading the same path by providing the user with different offerings like special alerts, magic box, call filter etc. With these Vodafone wants to empower its customer with the power to control all the aspects of the service that he possibly can.

SWOT Analysis

Strengths

Strong brand name

Wide distribution network

Financially stable

Strong brand connect with the customer

Strong customer base

Weaknesses

An international brand name may mean

that Indians may view it as a foreign brand

Low margins to distributors and retailers

Servicing of client needs.

Opportunities

Untapped rural market

Introduction of newer technologies

Value added services market

Business markets

Threats

A number of competitors entering the

telecom space

Mobile number portability

Fear of consolidation in the industry

PESTEL Analysis

Political Factor Regulations

Mobile phone licenses are tightly controlled and access to the spectrum is limited. In addition political pressure may be brought about regarding the use of mobile phones by children and the possible health issues associated with mobile phone use.

Infrastructure

Building the infrastructure needed to support the network usually requires permission from the government to use their lands.

Health issues

There is no definitive public opinion on the effect of mobile phone usage by people and also the possible health effects of the closeness of phone masts to schools.

Econ omical Factor

Cost of licenses

The cost of acquiring mobile phone licenses is very high.

3G

The bidding war for 3G licenses happened at the height of an economic boom and consequently the price paid for them was extreme. This with the cost of building the network will require a lot of revenue, but if the price is too high, the standard will not take off.

Cost of calls being driven down

There are constant price wars between the providers and there are very few markets where there is monopoly controlling the mobile market.

SOCIO CULTURAL FACTORS:

Health issues

If mobile phones are shown to be harmful both with the masts and handsets, there may be a move away from their use and a campaign to ban the masts.

Demographics

Mobile phones tend to be used by the younger members of society. In a country where the population is ageing, which is the trend across the EU, the demographics may shift to a more aged population who may have less use for mobile phones.

Social trends

A lot of take up of mobile phones has been down to fashion and peer pressure. If a trend of not having a phone was to occur this could seriously impact on their usage, although unlikely to happen.

TECHNOLOGICAL FACTORS:

The mobile phone industry has seen a great deal of technological change and will continue to do so. Mobile phones were originally used for telephone conversations but since text messaging became available the usage has increased dramatically.

As technology developed, it has become possible to swap information between mobiles and other devices via Bluetooth technology. However, this can be used inappropriately to send anonymous and unwanted texts.

The introduction of 3rd generation mobile phone technology is bringing with it a better mix of content and providing more services. These further raise the issue of ethics as Vodafone can now offer a wide variety of content to mobile phones with this new technology 3G and it will help to increase their sales revenues. However, Vodafone recognizes that it brings additional responsibility, including the need to protect young people from inappropriate content, including violent games and gambling.

ENVIRONMENTAL FACTORS:

Vodafone have established a handset recycling program that encourages customers to dispose of handsets and accessories in a safe and responsible way by advertising their return programmers, providing incentives to customers and by making it easy to return unwanted phones through pre-paid envelopes or recycling points in retail outlets.

LEGAL FACTORS:

Laws regulating businesses e.g. The Sales of Goods Act 1974 stating all products must be fit for the purpose they are intended. Certain laws are created to regulate particular industries, for examples the ban on using a phone while driving.

Research Methodology

1. Title of the project“ A study on customer satisfaction of Vodafone services”.

2. Research designWe will use descriptive research design

3. Research methodology Primary Research

Primary data is collected through questionnaire Secondary Data

For collecting secondary data internet sites will be referred to Target population

People residing in south Delhi region Sample Size :- 50 People

4. Limitations Sample size of 50 respondents has been taken which is too small to

generalize the trend Study is limited only to south Delhi Research time was limited so in depth analysis could not be done

Questionnaire used for Research Purpose

1. Name of the customer2. Mobile Number of Customer3. Are you a Vodafone customer?

Yes No

4. Since how long you are using Vodafone connection?5. Are you satisfied with Vodafone Services?6. What you like in Vodafone?7. What you dislike in Vodafone?8. How will you rate Vodafone

Not Satisfied Less Satisfied Satisfied Delighted Customer

9. Are you interested in buying new Vodafone connection

if customer is not using Vodafone connection than we will move directly to question number 9.

Question number 4, 6, 7 are descriptive question where question number 3, 6and 8 is analysis based question

Analysis

Are you a Vodafone customer?

Are you a Vodafone Customer

Yes 41 82%

No 9 18%

83%

17%

Are You a Vodafone Customer?

YesNo

Are you satisfied with Vodafone services?

We asked this question to Vodafone user, as our previous question provide us the data that out of 50 customers, 41 are Vodafone user.

Are you satisfied with Vodafone ServicesYes 34 68%

No 7 14%

83%

17%

Are you satisfied with Vodafone Services

YesNo