Vodafone rural penetration_project

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Summer Training Project Report MERA GAON MERA DESH

2010

Vodafone Essar Company

9/20/2010

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Summer Training Project Report

On

To study the rural promotional and penetration activities of Vodafone under

its MGMD (Mera Gaon Mera Desh) project

Submitted in Partial Fulfillment for the Award of the

Degree of Master in Business Administration 2009-2011

Under the Guidance of: Submitted By:

Department of Management

State University.

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STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled ―To study the rural promotional

And penetration activities of Vodafone under its MGMD (Mera Gaon Mera Desh) project‖ in

Vodafone Essar Digilink Limited (A Vodafone Essar Company). This is an original piece of

work & I have not submitted it earlier elsewhere.

Date: Signature :

Place: Name :

University Enrollment No :

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CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled ―To study the rural promotional and penetration

activities of Vodafone under its MGMD (Mera Gaon Mera Desh) project‖ is an academic work

done in the partial fulfillment of the requirement for the award of the degree of Master of

Business Administration from, State University, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him in the project

has not been submitted earlier.

Signature :

Name of the Faculty :

Designation :

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ACKNOWLEDGEMENT

I am extremely thankful to Mr. Mehndiratta; Zonal prepaid Head of Zone-1 Haryana who gave

me this opportunity to undertake this project. Without his directions and permissions I could not

have undertaken this project.

I would like to thank the Relationship Managers Mr. Chibbar and Mr. Sharma, for their time to

time guidance and support; it was of great help in knowing the whole process and background of

this project.

I would also like to thank all the M.Ds, A.Ds, P.S.Rs, D.S.Es and other staff I have worked with,

for their cooperation and support.

In the end I would like to thank my Project guide Ms. Bharti for giving remarkable

contributions and help in making this Project report and also for throwing a good insight at the

practical aspect.

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EXECUTIVE SUMMARY

This project is based on telecom sector as the telecom sector is growing at a very good pace. The

telecom company where I did my summer internship project is VODAFONE. 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 presence all over the world. The company was started

in the mid 70‘s & since then it has never looked back. The products & services offered by

Vodafone are of a very high quality & also at affordable rates. They have various plans for

various customers depending on the status of the customers.

Vodafone has various product categories ranging from internet, mobile phones, headsets &

headphones & many more. In the service category it has telecom services and internet services

which include broadband internet & PC internet services. Vodafone also came out with cell

phones for the poor which were a part of their social responsibility toward the poor class people

of the society. The phones were available in the range of Rs. 750 - Rs.1500 which was one of the

successful strategies of Vodafone.

According to the June 2010 data VODAFONE Essar‘s market share is 23.89% and is just after

Bharti with 29.92%.

This report is based on the collective work of two months on a project called MERA GAON

MERA DESH, where we did our research on the MFS (Mera Gaon Mera Desh focus sites) to

increase our subscription rate. During this period we visited these sites and villages which come

under these sites and got response from the retailers and shopkeepers there, regarding their

experience with Vodafone as a user and selling our products there and for promoting the

Vodafone.

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Among those whose response was taken includes Kiryana shops, medical stores, mobile repair

shops, std/pco , tailor/parlors , etc. Random stratified sampling method was considered to be best

suited to fulfill the project. A structured questionnaire was constructed in order to measure the

responses of respondents on suitable scale. The data of sites was given by Vodafone and the

primary data collection from retailers was done through personal visits.

Apart from this questionnaire our main task was to tell them the benefits of selling recharges and

solve their queries and to convert them in our UEOs (Unique E-top Outlets) and UAOs (Unique

Activation Outlets) by filling their ACT forms and providing them with Recharge coupons and

E-top sim. Also to give them posters and banners for promotion and advertisement in the form

of new outlet kit.

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List of Tables: Page No.

Table-2.01 History of cellular telephony in India. 14

Table-2.02 Vodafone‘s People Strategy. 29

Table-4.01 Types of outlets visited. 48

Table-4.02 No of Vodafone users 49

Table-4.03 Experience with Vodafone 50

Table-4.04 Reason for experience 51

Table-4.05 Customer care service experience 52

Table-4.06 Experience of roaming facilities 53

Table-4.07 Knowledge about Vodafone Thank you card 54

Table-4.08 Selling recharge coupons and E-top values 55

Table-4.09 Companies people selling 56

Table-4.10 Idea about Telecom Business 57

Table-4.11 Interest in selling Vodafone 58

Table-4.12 Reasons for not selling 59

Table-4.13 Want to sell coupons and E-top values 60

Table-4.14 Want to sell new sim 61

Table-4.15 Reasons for not selling 62

Table-A Biswamil Non- etop retailers 79

Table-B Biswamil E-top retailers 80

Table-C Gannaur E-top retailers 81

List of Charts: Page No.

Chart-2.01 History of telecom in India 15

Chart-2.02 GSM players in India 16

Chart-2.03 CDMA players in India 17

Chart-2.04 World Economic Pyramid 34

Chart-4.01 Type of outlets 48

Chart-4.02 Vodafone Users 49

Chart-4.03 Experience with Vodafone 50

Chart-4.04 Reason for experience 51

Chart-4.05 Customer care service 52

Chart-4.06 Roaming facilities 53

Chart-4.07 Vodafone thank you card 54

Chart-4.08 Telecom business selling recharges 55

Chart-4.09 Idea about telecom business 57

Chart-4.10 Interested in selling Vodafone 58

Chart-4.11 Want to sell Vodafone coupons 60

Chart-4.12 Want to sell new sim 61

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Table of Contents: Page no.

Chapter 1 - Introduction

1.1 - Purpose of the Project. 8

1.2 - Objective. 9

1.3 - Scope of the Research 10

Chapter 2 - Company Profile

2.1 - About the Company 12

2.2 - About the Topic 31

Chapter 3 - Methodology

3.1 - Research Design 37

3.1.1 - Type of Research 38

3.1.2 - Population/Universe 38

3.1.3 - Sample Size 41

3.1.4 - Sampling Technique 41

3.2 - Data Collection

3.2.1 - Primary and Secondary data 42

3.2.2 - Instruments for Data Collection 42

3.2.3 - Method for Data Collection 43

Chapter 4 - Data Analysis 45

Chapter 5 - Findings and their Implications 62

Chapter 6 - Limitations of the Study 65

Chapter 7 - Recommendations / Suggestions 67

Chapter 8 - Conclusions 70

Bibliography 72

Annexure.

1. Questionnaire. 74

2. New outlet data. 77

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INTRODUCTION

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CHAPTER – 1

INTRODUCTION

1.1 Purpose of the project.

The basic purpose of the project MGMD is to focus on the areas where the subscription base

or the customer base is low. All the customers and retailers were tracked on the basis of CSI

(Cell Site Intelligence).

Through this project company‘s motive is to increase the customer base in these areas over

their competitors by opening new outlets in these areas who can sell Vodafone recharges and

new connections.

Another purpose of this project is to open outlets everywhere so that customer will not face

problems in finding Vodafone recharge and he can get his mobile recharged in 5 min.

anywhere.

By visiting the MGMD villages personally, importance was given to get the retailer‘s

response as a user about Vodafone services and to make them start selling Vodafone

recharges there on commission basis, so that subscription rate will increase there and the

customers nearby will not face problems in getting recharges and new connections and they

will not be any need for them to go far places to get their phones recharged.

Also through this awareness about TYC( Thank you card) was done so that they will visit

Vodafone stores and mini stores and can get free gifts from there.

Pamphlet distribution at main locations in villages through van.

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1.2 Objective:

The objective of the project and research is to know about the view of retailers in the

villages as a user about the Vodafone and satisfy their queries and make them

understand the telecom business of selling the Recharge coupons, Values and New

connections for the Characteristics low income and rural consumers.

With the help of the questionnaire we were able to know their status and their

problems in selling our recharges. With the help of our understanding and company‘s

policies and information we solved their queries and convert many of them into our

outlets.

Position, promotion, price and placement of service product.

To increase our village wise DPL i.e., Dealer per lakh. This shows the presence of

Vodafone in the market and convenience for users.

Another objective of this project was to do activities to convert Competition

customer to Vodafone (BSNL/AIRTEL). For this purpose TYC promotion and brand

promotion, for its customer focused activities, was done.

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1.3 Scope of Research:

Since, the telephony has started in India, the telecom companies were concentrated to

provide the best of their services in the big cities of India and this was the reason they were

more on increasing their subscriber base in cities. But now due to increasing competition,

companies are searching for new ways to increase their business and market share. For this

Vodafone has come up with a plan to penetrate the rural area and villages, where it can

increase its subscriber base and can promote itself with various schemes specially for the

rural people.

Though this report is totally devoted to the work done for the Vodafone, but it can work for

other companies as well if they want to penetrate the rural villages and want to increase their

subscriber base there.

To penetrate the market of rural villages companies will have to set up their outlets to sell

them and for that they will have to know the lifestyle and issues among retailers in rural

about their understanding of this field.

So the scope of this research is for all telecom players. The questionnaire is designed to

know about the people of villages and their problems and issues in starting telecom business

which can be of help for other telecom companies as well.

In order to cater to rural consumers, it is important to understand and respect their livelihood

and for promoting yourself activities like pamphlet distribution, Muniyadi, TYC

distribution, personal Visits, direct and easy interaction , etc all are part of rural marketing

which have scope in other company‘s promotion as well.

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COMPANY

PROFILE

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CHAPTER-2

COMPANY PROFILE

2.1 About the Company.

Indian Telecommunication Industry

The Indian telecommunications has been zooming up the growth curve at a feverish pace,

emerging as one of the key sectors responsible for India's resurgent economic growth.

India has surpassed US to become the second largest wireless network in the world with a

subscriber base of over 391.76 million, according to the Annual report of Telecom Regulatory

Authority of India (TRAI).

Table 2.01 History of Cellular Telephony in India

YEAR EVENT 1992 Telecommunication sector in India liberalized to bridge the gap through

government spending & to provide additional resources for the nation‘s telecom

target. Private sector allowed participating

1993 The telecom industry gets an annual foreign investment Rs 20.6 million

1994 License for providing cellular mobile services granted by the government of India

for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile

service to be duopoly (i.e. not more than two cellular mobile operators could be

licensed in each telecom circle), under a fixed license fee regime for 10 years.

1995 19 more telecom circles get mobile licenses

1995(aug) Kolkata became the first metro to have a cellular network

1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs 17,756.4 million

1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million

1999 Tariff rebalancing exercise gets initiated

1999(Mar) National Telecom Policy is announced

2000(Jan) FDI inflow drops further down to Rs 918 million coming

2000(June) Amendment of TRAI Act

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The booming domestic telecom market has been attracting accelerating amount of investment.

The cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 6.14

billion. In fact, the surge in mobile services market is likely to see huge amount of investment

implying a mobile in the hands of every second person in the country.

Among the recent nine bidders for 3g auctions, Vodafone accounts for the highest FDI at 70.9%,

which includes Vodafone‘s investments and some of Essar‘s own foreign investments. The

second largest FDI is in Aircel with its foreign investor — Global Communication Services

Holding (GCSH) owning 64.9%. Deccan Digital, which owes 34.9%, is, in turn, also held 25%

by GCSH.

Graph No.2.01

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Government has taken many proactive initiatives which have provided a framework for the rapid

growth of the telecom industry

Chart No.2.01

• Opening the industry for private sector participation.

• 100 per cent FDI is permitted in telecom equipment manufacturing through the

automatic route.

• FDI ceiling in telecom services has been raised to 74 per cent.

• Establishment of an independent regulator - the Telecom Regulatory Authority of

India (TRAI)-for the telecom sector.

• Introduction of a Unified access licensing regime for telecom services on a pan-

India basis.

• Implementation of New Telecom Policy (NTP'99).

• Introduction of Calling Party Pay (CPP) regime and lowering of access deficit

coupled with introduction of revenue share regime in ADC.

• Introduction of Mobile Number Portability in a phased manner, starting with the

fourth quarter of 2008.

• Allowing service providers to share active infrastructure.

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In GSM services major players are:

Chart No. 2.02

In CDMA major players are:

Chart No. 2.03

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ABOUT VODAFONE

Key people

Chairman : Sir John Bond

CEO : Vittorio Colao

Deputy Chairman : John Buchanan

CFO : Andy Halford

DURING 1980’s

Vodafone made the UK's first mobile call at a few minutes past midnight on 1st 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, it‘s 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.

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1985

• The Vodafone analogue network is the first cellular network to launch in the UK, and the first

call is made from St Katherine‘s dock in London to Newbury on 1 January 1985.

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 1990’S:

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 world‘s 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.

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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 2000’S:

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.

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2001

• Vodafone introduces instant messaging to its networks.

• Vodafone makes the world‘s first 3g roaming call between Spain and Japan.

2002

• Vodafone trials its global mobile payment system in the UK Italy and Germany.

• 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 was 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

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VODAFONE ESSAR

MD and CEO Vodafone Essar : Marten Pieters.

Mission & Vision

―To enrich our customer's lives through the unique power of mobile communication‖

Also its vision is to be the world‘s mobile communication leader – enriching customers‘ lives,

helping individuals, businesses and communities more connected in a mobile world.

Passion for Customers

Our customers have chosen to trust us. In return, we must strive to anticipate and understand

their needs and delight them with our service. We value our customers above everything else and

aspire to make their lives richer, more fulfilled and more connected.

We must always listen and respond to each of our customers. We will strive to delight our

customers, anticipating their needs and delivering.

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16

telecom circles in India. Despite the official name being Vodafone Essar, its products are simply

branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout

India and is especially strong in the major metros.

Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM

technology, offering voice and data services in 16 of the country's 23 license areas.

Ownership

Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%.

On 11 February 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 8 May 2007.

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Previous Brands

Initially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE..... In

December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its

services under a single identity. The Company entered into agreement with NTT DoCoMo to

launch i-mode mobile Internet service in India during 2007.

The company used to be named Hutchison Essar, reflecting the name of its previous owner,

Hutchison. However, the brand was marketed as Hutch. After getting the necessary government

approvals with regards to the acquisition of a majority by the Vodafone Group, the company was

rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on

20 September 2007.

Vodafone Essar spent somewhere in the region of Rs 250 crores on its high-profile transition.

Along with the transition, cheap cell phones have been launched in the Indian market under the

Vodafone brand.

Growth of Hutchison Essar

In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994

was awarded a licence to provide mobile telecommunications services in Mumbai (formerly

Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh

of Max still holds 12% in company.

By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had

acquired interests in six mobile telecommunications operators providing service in 13 of India's

23 license areas and following the completion of the acquisition of BPL that number increased to

16. In 2006, it announced the acquisition of a company that held license applications for the

seven remaining license areas.

In a country growing as fast as India, a strategic and well managed business plan is critical to

success. Initially, the company grew its business in the largest wireless markets in India - in

cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to

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establish a robust network, well known brand and large distribution network -all vital to long-

term success in India. Then it also targeted business users and high-end post-paid customers

which helped Hutchison Essar to consistently generate a higher Average Revenue per User

("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish

leading positions in India's largest markets providing the resources to expand its footprint

nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding agreement

with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan

interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and

interests) of approximately US$11.1 billion or HK$87 billion.

Hutch was often praised for its award winning advertisements which all follow a clean,

minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses

only white letters on red background. Another recent successful ad campaign in 2003 featured a

pug named ―Cheeka‖ following a boy around in unlikely places, with the tagline, Wherever you

go, our network follows. The simple yet powerful advertisement campaigns won it many

admirers.

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 licenses to operate GSM services in Karnataka, Andhra Pradesh

and Chennai.

2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajasthan,

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, another mobile service provider in India.

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2008: Vodafone acquired the Licenses 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

2008: Vodafone launched the Apple i-Phone 3G to be used on its 17 circle 2.75G network.

2009: 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 has crossed the landmark of 100 million subscribers in India. With this

achievement, Vodafone Essar becomes world‘s 5th operator with 100 million customers in a

single country. Vodafone has also increased its market share to strengthen its position as India‘s

second largest operator in terms of revenue.

―This is a significant achievement for us and reflects the trust customers have bestowed on the

company,‖ said Marten Pieters, Managing Director and CEO, Vodafone Essar, ―In the past three

years, we have invested over Rs. 20,000 crores to expand our operations to service customers in

India. We will utilize our global and Indian experience to deliver the best products and services

to our customers.‖

Starting with about 28 million subscribers across 16 circles in May 2007, Vodafone Essar today

has 100 million customers and its footprint has extended to all the 23 circles in the country. This

journey is a testimony of Vodafone‘s success in a highly competitive and price sensitive market.

Around 60% of the Company‘s customer additions now come from upcountry areas. With a

distribution reach of about 1.2 million outlets, Vodafone is well-geared to serve customers in the

remotest corners of India.

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PRESENCE

Vodafone currently has equity interests in 31 countries across five continents and around 44

partner networks worldwide.

LOGO

A new visual identity—from the deep pink logo of Hutchison-Essar to Vodafone‘s trademark

deep red speech mark introduced in 1998.

Advertisement:

The inaugural TV commercial showed the trademark pug (minus the boy) moving out of a pink

kennel into a red one. An energetic version of Hutch‘s signature ‗You and I‘ tune played towards

the end, as the super concluded, ‗Change is good. Hutch is now Vodafone‘. There were four

more commercials featuring Hutch‘s animated boy and girl, introducing the new brand‘s logo to

consumers.

Vodafone put in close to Rs 150 crores into the first phase of the rebranding exercise—with Rs

60 crore in mass media and another Rs 90 crores in retail activities.

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In the second phase, Vodafone ushered in its global strap line—―Make the most of now‖, which

replaced ―How are you?‖ in 2001. By then it was apparent, the boy-and-pug chapter would soon

be over. In 2008, Vodafone used the platform of cricket when it unveiled the ‗Happy to Help‘

series during the first season of the Indian Premier League (IPL).

This season the Zoo zoos are all the rage. These characters have virtually hijacked the online

media as well as television—to convey a value added service (VAS) offering in each of the new

commercials.

In Indian scenario when other major telecom service providers are using celebrities

( Airtel-Shahrukh Khan, BSNL-Deepika Padukone, Aircel-Mahendra Singh Dhoni, Idea-

Abhishek Bachchan) as their brand ambassadors, Vodafone is standing out proudly with

Zoozoos and pug as successful ad campaign.

Products and services in India:

Average cost of calls: 2 US cents per minute

Average revenue per customer: US$6.4 per month

853,039 points of sale, covering 65% of the population

With more than 3 million Vodafone-branded, affordable handsets sold in 2008/09,

Vodafone ranks among the top five handset brands in India.

http://www.thehindubusinessline.com/2009/05/01/images/2009050150721301.jpg

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Brand and customer communications

In the Brand Z most powerful brands ranking: Ranked 11th globally.

In telecom industry it proudly stands as world no. 2 after China

And no. 2 GSM service provider in India after Airtel.

Distribution

Direct distribution-Number of directly owned stores – 1150+

Vodafone directly owns and manages over 1,150 stores. These stores sell services to new

customers, renew or upgrade services for existing customers, and in many cases also provide

customer support.

A standard store format, which was tested in 2006, was rolled out in 11 markets during the 2008

financial year. All stores in India were rebranded as Vodafone and over 40 stores were

refurbished to the Group‘s standard format.

The Group also has over 6,500 Vodafone branded stores, which sell Vodafone products and

services exclusively, by way of franchise and exclusive dealer arrangements.

The internet is a key channel to promote and sell Vodafone‘s products and services and to

provide customers with an easy, user friendly and accessible way to manage their Vodafone

services and access support. Additionally, in most operating companies, sales forces are in place

to sell directly to business customers and some consumer segments.

Philosophy- OUR PEOPLE

Vodafone rely on its people – their enthusiasm, their talent, their commitment – to maintain and

build on the success of our business, even more so in today‘s competitive market. It depends on

people to deliver excellent service to its customers.

Vodafone believe that the better experience our people have at Vodafone, the better service they

will give our customers. Vodafone Group employs approximately 71,000 people around the

world.

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Vodafone want to enhance its reputation as an employer that provides excellent development

opportunities, equipping employees with the skills and experience they need to help Vodafone

compete successfully.

It aim to ensure that all its working environments are inclusive, safe, promote wellbeing, treat

people with respect, and engage employees, and offer attractive incentives and opportunities.

Vodafone People Strategy

The Vodafone People Strategy sets out a clear statement of its commitments to employees and

expectations of them in six key areas.

Table No. 2.02

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VODAFONE’S MARKETING MIX

A longer term marketing strategy is underpinned by careful planning and a successful marketing

mix. The marketing mix is a combination of many features that can be represented by the four

Ps.

product - features and benefits of a good or service

place - where the good or service can be bought

price - the cost of a good or service

Promotion - how customers are made aware of a good or service.

Product

A product with many different features provides customers with opportunities to chat,

play games, send and receive pictures, change ring tones, receive information about

travel and sporting events, obtain billing information - and soon view video clips and

send video messages.

Vodafone live! Provides on-the-move information services.

Place

Vodafone UK operates over 300 of its own stores.

It also sells through independent retailers e.g. Car phone Warehouse.

Customers are able to see and handle products they are considering buying.

People are on hand to ensure customers' needs are matched with the right product and to

explain the different options available.

Price

Vodafone wants to make its services accessible to as many people as possible: from the

young, through apprentices and high powered business executives, to the more mature

users.

It offers various pricing structures to suit different customer groups.

Monthly price plans are available as well as prepay options. Phone users can top up their

phone on line.

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Vodafone UK gives NECTAR reward points for every £1 spent on calls, text messages,

picture messages and ring tones.

Promotion

Vodafone works with icons such as David Beckham to communicate its brand values.

Above the line

Advertising on TV, on billboards, in magazines and in other media outlets reaches large

audiences and spreads the brand image and the message very effectively. This is known

as above the line promotion.

Below the line

Stores have special offers, promotions and point of sale posters to attract those inside the

stores to buy.

Vodafone's stores, its products and its staff all project the brand image.

Vodafone actively develops good public relations by sending press releases to national

newspapers and magazines to explain new products and ideas.

Vodafone's marketing strategy

Vodafone's marketing aim in the UK is to retain market leadership.

Vodafone's strategy is product-led; the company is continually developing new products and

services which utilise the latest technological advances.

However, as consumers become increasingly sophisticated users of modern mobile technology,

they make new demands and seek added value through product improvements. Consumers are

becoming more demanding and suppliers have to listen. Vodafone must feed this back into its

product strategy.

In the UK, the mobile phone market has approached maturity in a very short space of time,

particularly with young people. To keep its leading edge, Vodafone is continually looking to add

value to the services it provides and to the packages it offers to customers.

Soon, within the UK, there will be few new customers available. So the challenge is to provide

added value services and competitive charges to existing customers who are becoming more

sophisticated and demanding.

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For example, young people think hard about which mobile phone to buy. In their search for the

widest range of appropriate services and the best value for money, young people in particular

examine catalogues, surf the Internet and study what their friends have bought. Trying to sell to

them is tough.

In order to retain market leadership, Vodafone has established a set of marketing objectives.

These are to:

Obtain new customers

Keep the customers it already has

Introduce new technologies and services (eg text messaging, WAP)

Continue to develop the Vodafone brand.

Vodafone is achieving these objectives by continually updating the range of phones and services

offered to keep ahead of its competitors. Vodafone also communicates regularly with its

customers to keep them well informed of the benefits of all Vodafone products.

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2.2 ABOUT “MERA GAON MERA DESH” PROJECT

The new mantra for the Telecom sector

“ROTI, KAPDA, MAKAAN AUR MOBILE”

Market /Products Present New

Present

Prepaid/Post-paid services

Wi-max,3G

New

Rural Sector

M2M services,WiBro

In order to diversify its current market portfolio, Vodafone is launching a global Machine to

Machine (M2M) service platform for helping companies to deploy and manage large, wireless

M2M projects for applications in customer service enhancement and central control and

automation of projects. In the Indian context, M2M is an untapped sector with enormous

potential for growth. WiBRO (Wireless Broadband) has the capacity to overcome data rate of

limitation of mobile phones by providing a staggering 30 to 50 MB/s speed. As in the case of

M2M platforms, WiBRO is a very promising market in India. Providing these two services in

India would open new avenues of growth for Vodafone and would help it diversify into different

market verticals.

With this diversification and for more market penetration in the rural areas Vodafone has started

a new project ―Mera Gaon Mera Desh‖. Since more and more companies are entering in the

telecom market of India so it‘s becoming difficult for the companies to just sit and eat the fruits.

It is very difficult already for the existing players as profit margins are reducing with increase in

number of players. The profits have reduced due to the slashing of call rates. However, the

profits realized are due to increasing usage rates .Stiff competition is giving rise to fear among

companies of losing the present customers so company has decided, with more service to

customers, to enter into the rural areas where the subscription rate is low and focus its activities

on servicing this sector and increasing subscriber rate.

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MARKET DEVELOPMENT

India is still an agrarian economy and over 60 percent of its population still dwells in rural areas.

According to recently conducted surveys, statistics showed that 45% of the overall telecomm

sector growth is to come from the rural sector. A major chunk of Vodafone‘s revenue is still

generated from tier 1 and tier 2 cities. This leads Vodafone to place further focus on rural

penetration so as to create economies of scale as well as the top line growth of revenues.

Development of infrastructure in rural areas is a bottleneck due to the cost factor associated with

it. Project MOST (Mobile Operators' Shared Towers) by COAI was initiated in order to reduce

these heavy costs by sharing infrastructure between the service providers, hence resulting in

better coverage and quality. Optimal rural penetration can be achieved by taking into account the

economic environment prevailing in the rural sector. This would encompass the socio economic

factors and would hence provide a more regional focus to the advertising and promotional

strategies in order to establish a good connect with the rural customers.

The Census of India defines rural explicitly. Areas with clear surveyed boundaries not having a

municipality, corporation or board, with density of population not more than 400 per km sq. and

with at least 75% of the male working population engaged in agriculture and allied activities

qualify as rural.

Keeping this in mind, looking at strategic first mover advantages, company has

started the project MGMD. The company has identified areas where subscriber base rate is very

low. So to increase that rate in these areas company has come up with some plans. These sites

are identified by the technical department by measuring the traffic on BTS (Trans receiver

stations), which gives figures about usage in the area. So the low user sites or MFS

(MGMD focus sites) were given to me where I had to go with the staff and do the promotion and

other activities.

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THE BOTTOM OF THE PYRAMID APPROACH

The bottom of the pyramid concept was given by Management Guru C. K. Prahalad; According

to this concept 4 Billion people living under $2 per day comes under this category. Benefits of

Bottom of Pyramid-

There is money at the bottom of pyramid: it is a viable market.

Access to this market requires unconventional approaches and these will be fruitful in

long run.

The bottom of the pyramid consumer is very much open towards advanced technologies.

To cater this category of the pyramid companies are coming with their new ideas Viz.,

E-Choupal of ITC and Project Shakti of HUL are some of the famous projects by FMCG

companies in rural areas. This MGMD project of Vodafone is some of the like project in the

Telecom Sector.

Chart No. 2.04

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MGMD Focus Sites Classification:

Rural/Urban Classification.

Distance from AD (Associate Distributor) town Pass (0 – 3 km), Beech (3-7 km),

and Door (7+km).

Traffic on the sites Low, Medium, and High.

Subscriber base of the site.

The main features of this project are:

All the customers and retailers would be tracked on the basis of CSI

(Cell Sites intelligence).

For any retailer who has done 300+ tertiary (E-top recharge) would be classified as UEO.

UEO (Unique E-top Outlet) – Village wise DPL( Dealer Per Lakh) planning.

Dosti : Tie up of small Retailer with MERC( Mobile E-top Recharge) retailer.

Badli : Activity to convert Competition customer to Vodafone ( BSNL/AIRTEL).

KIRANA: To Convert all kirana Store of MFS sites into E-top Up outlet.

Products:

Vodafone has launched a new SKU 50 which would have a retailer landing of Rs 24 and

MRP of Rs.40.

Vodafone have launched a special promotional offer for the entire customer base of the

FOCUS Site‘s wherein they would get Talk time or other benefits through 121best offer.

The Activities for this project include:

TYC Camps in MFS villages.

Van Activity in MFS villages.

Paper Insert. (Mentioning Retailer Shop).

Cable ADD. ( Mentioning Retailer Shop)

Muniyadi in Villages with NETWORK Promotion.

Pamphlets Distribution through CHOWKIDAR.

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Support Required:

Vodafone Garden Umbrella For promotion.

Special POP (Posters, Banners etc) for Villages.

STVs (Special tariff Vouchers) & NEW SKU (Stock Keeping Units) for Villages.

Special Talk Time Schemes for BSNL customers.

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METHODOLOGY

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CHARTER-3

METHODOLOGY

Research Methodology is a highly intellectual Human activity used in the investigation of nature

and matter and deals specifically with the manner in which the data is collected, analyzed and

interpreted.

It‘s basically the methods you intend to adopt to gather information in pursuit of answers to the

research questions.

3.1 Research Design.

Exploratory Research - Exploratory research is undertaken when few or no previous studies

exist. The aim is to look for patterns, hypotheses or ideas that can be tested and will form the basis

for further research. Typical research techniques would include case studies, observation and

reviews of previous related studies and data.

Descriptive Research- Descriptive research can be used to identify and classify the elements or

characteristics of the subject, e.g. number of days lost because of industrial action. Quantitative

Techniques are often used to collect, analyze and summarize data.

Analytical Research- Analytical research often extends the Descriptive approach to suggest or

explain why or how something is happening, e.g. underlying causes of industrial action. An

important feature of this type of research is in locating and identifying the different factors (or

variables) involved.

Predictive Research- The aim of predictive research is to speculate intelligently on future

possibilities, based on close analysis of available evidence of cause and effect. e.g., Predicting

When and where future industrial action might take place.

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Our Research Design:

Descriptive Research design has been followed for this marketing research. As in descriptive

research proper classification or identification of the elements and characteristics of the subject

is done.

Here as we have to identify the basic reasons for the situations studied, we opt for descriptive

research.

3.1.1 Type of Research

Here our research is more of quantitative type but in some issues pertaining in the village we

took the qualitative angle as well in this research. So our research is a combination of both.

The emphasis of Quantitative research is collecting and analyzing numerical data. It is highly

detailed and structured and results can be easily collated and presented statistically.

On the other hand the Qualitative research is more subjective in nature and involves examining

and reflecting on the less tangible aspects of the research like feelings, perception etc.

Also the research is an APPLIED Research as the objective is to apply the findings to the

situation here.

3.1.2 Population/Universe:

In research terminology Universe or population means an entire set, objects or events of concern

to a research study, from which a sample is drawn. Or in other words, population is the

theoretically aggregation of the elements in study.

Here in this project data of the MGMD sites is provided by the company and we identified some

conventional and unconventional outlets present in the areas of our sites.

We covered these outlets and get our questionnaires filled and did our promotional activities

there. Our universe was mainly in the rural areas of Haryana as the MFS (MGMD Focus Sites

were situated in rural areas only).

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The universe includes:

Conventional Outlets

• Telecom

• STD / ISD

• Chemist

• Petrol pumps

• Photo Shops

• Pan Bidi Shop

• General, Kirana

• Gift shops

• Music Shops & DVD Library

• Cyber Cafés

Unconventional Outlets

• Estate Agents

• Opticians

• Milk Booths

• Ice Cream Shops

• Hardware & Auto Spares Shop

• Beauty Parlours & Tailor Shop

• Book shops & Wine shops

• College, Office canteens & Eatery

• Cinema halls

• Hospitals

• Garages

• Security Guards

• Public Toilet (Tourist Areas).

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The MGMD focus sites given to me were:

M.F.S of GANNAUR (MD- Samalkha)

1. Purkhas. 11. Kailana.

2. Rajlu Garhi. 12. Kasanda.

3. Begha. 13. Barahi Industrial Area.

4. Shamri Buran. 14. Sanpera.

5. Sardhana. 15. Bajana Khera.

6. Dobheta. 16. Datauli.

7. Ghasoli. 17. Panchijatan.

8. Bhanwar. 18. Tajpur.

9. Kami. 19. Rajpur.

10. Khubru.

M.F.S of M D- Biswamil.

AD- Barota.

1. Jagdishpur.

2. Halalpur.

3. Nahri.

4. Jhundpur.

5. Abbaspur.

6. Malha Majra.

AD- Kharkhoda.

1. Rohat. 6. Kundal

2. Anandpur Jharot. 7. Khanda

3. Thanakalan. 8. Ladravan.

4. Rohna. 9. Pahaladpur.

5. Gopalpur.

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3.1.3 Sample Size:

A sample is a sub-set of individuals selected for study from among people or objects within a

defined population. The sample size of our research was all the shops in the MGMD sites areas.

Since our main aim was to open our outlets in the village and to do all promotional activities, so

we decided to cover all the available shops there. This comes out to be 150. This becomes our

sample size.

3.1.4 Sampling Technique:

Sampling is the process of selecting a number of individuals for the study. Sampling enables the

researcher to study a relatively small number of units in place of target population, and to obtain

data that are representative of the whole target population.

Sample Unit: All the retail shops in the MGMD sites were taken as sample units.

Sample Procedure: Since the sites were provided to us so we visited shops there and tried to

cover as many shops as possible. And the selection was Random.

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3.2 Data Collection:

The data collection is an important part of research. Without data any research is impossible. The

data is of two types‘ Primary data and Secondary data.

3.2.1 Primary and Secondary Data:

Primary Data: It is the data which is never gathered before. The data was collected by

interactions with the respondents. Primary Data collection is an important part of research; here

data collection was done through Questionnaire and interviews.

Secondary Data: It is the data which is collected already in the past; it can be collected with

the help of secondary source like internet, books, journals, articles etc. The data regarding

MGMD focus sites, their population, already running ueo, etc was provided to me from

company. Also during drafting of report all information was gathered from articles about

company in magazines and from websites. As Vodafone is world renowned company so it was

not tough to gather information about this company.

3.2.2 Instruments for Data Collection.

One of the most common and famous instrument for data collection is Questionnaire. The

questionnaire was designed so that we can know about their knowledge of telecom particularly

about Vodafone and about starting as our outlet. We also collected information regarding the

hurdles and issues they are facing in starting this business and what they think about Vodafone as

a user.

Also with questionnaire another instrument used for this research was interview as-

The low level of respondents, therefore face to face interviews were found suitable to get

reliable information.

The interview schedule was used because the researcher wanted to collect data with

probing questions.

Keeping the objective in mind the questions were designed. We use the interview tool to

get their data and response.

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3.2.3 Method for Data Collection:

The method used for data collection was face to face interaction and interviews. During this

project period I visited the rural areas personally and get the data from them through personal

interaction.

It was a great experience to talk directly with the villagers about their business and scope for

Vodafone‘s promotion and business there.

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DATA ANALYSIS

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CHAPTER – 4

DATA ANALYSIS

We prepared a questionnaire to get the response of the retailers is the rural area sites. Here I am

going to analyze this questionnaire with the help of Pie- charts. These pie-charts give the idea for

various areas we have chosen as responses and their weightage can be seen easily.

Here I am going to analyse each question one by one. And with the help of the understanding,

which I got through personal visits, I am able to analyze these and can give probable thoughts of

the villagers in statistical data form.

These pie charts are of very useful as we can draw information from them which can be proved

to be very valuable now or in future. Any company, who wants to enter in a rural area, wants

proper information available about that area in advance to form the strategies and this analysis is

of great help for them.

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Q.1 The type of outlet visited:

Table No. 4.01

Chart No. 4.01

This pie-chart reveals that most of the shops visited in the villages were Kiryana store and there

were other non-conventional shops as well like parlors, tailor shops in others constituting 11.3%.

Most of the shops which were converted into Vodafone outlet were the Kiryana shops, pan-bidi

shops, Mobile repair shops, chemist etc.

Frequency Percent Cumulative

Percent

Valid

a) Kiryana store.

b) Mobile / repair shop.

c) STD/PCO shop.

d) Chemist/Clinic.

e) Tailor / Barber.

f) Photo shop.

g) Pan- Bidi shop.

h) Other.

TOTAL

75

10

20

5

5

3

15

17

150

50

6.7

13.3

3.3

3.3

2

10

11.3

100

50

56.7

70

73.3

76.7

78.7

88.7

100

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Q.2 Are you currently a Vodafone user?

Table No. 4.02


Percent

Valid

No

Yes

TOTAL

30

120

150

20

80

100

20

100

Chart No. 4.02

When we asked them what connection they are using then we found that most of our respondent

shopkeepers were using Vodafone services and replied positively for this question which is 80%

of total respondents, it shows that Vodafone‘s subscriber base is increasing in rural areas and

people are adopting its services.

NO

YES

Are you currently a Vodafone user?

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Q.3 what is your experience with Vodafone?

Table No.4.03

Frequency Percent

Cumulative

Percent

Valid Very

Satisfied 105 70.0 70.0

Satisfied 30 20.0 90.0

No opinion 7 4.7 94.7

Unsatisfied 8 5.3 100.0

Total 150 100.0

Chart No. 4.03

For their satisfaction level about the services of Vodafone most replied positively as 70% were in

the category of very satisfied, 20% were satisfied with 4.7% didn‘t answer this question and 5.3%

were not satisfied with the services. But majority that is 90% were satisfied.

Very Satisfied Satisfied No Opinion Unsatisfied

What is your experience with Vodafone?

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Q.4 what is the reason for your this experience?

(A) Is Network very good?

Table No. 4.04

Frequency Percent

Cumulative

Percent

Valid yes 135 90.0 90.0

No

15

10.0

100.0

Total 150 100.0

Chart No. 4.04

When asked about the Network of Vodafone there in their village, 90% said that network is very

good and they do not face any problem in network but 10% said that they face problems while

talking and there is problem of network as in some places in the village roaming starts on their

phone and phone gets cut (Eg.Vpo-tanda).

Yes

No

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(B) Is Customer Care Service Very good?

Table No. 4.05

Chart No. 4.05

When asked about their experience with customer care service that majority i.e., 70% said that

they are satisfied with the customer care service and all their queries herd and resolved but 30%

were little complaining and said the services are not good and their problems are not resolved

properly and balance gets deducted for services they had not activated.

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid yes 105 70.0 70.0 70.0

No 45 30.0 30.0 100.0

Total 150 100.0 100.0

Yes 70%

NO 30%

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(C) Are Roaming Facilities Good?

Table No. 4.06

Chart No. 4.06

For a question regarding roaming services most of the people i.e. 80% said that Vodafone‘s

network in all India is very good and where ever they go the network is always very good and

they do not feel any problem in outside Haryana while 20% were complaining and said that in

areas outside Haryana Vodafone is not that strong and also the charges should be low.

Frequency Percent

Cumulative

Percent

Valid yes 120 80.0 80.0

No

30

20.0

100.0

Total 150 100.0

Yes 80%

NO 20%

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Q.5 Do you know about Vodafone’s Thank you card?

Table No. 4.07

Chart No. 4.07

When asked about whether they know about Vodafone‘s Thank You Card coupon which they

can get from Vodafone store most people replied positively i.e. 76% said yes they know and get

it every month while 24% said they do not know about this. It shows that Vodafone‘s promotion

is good in rural areas where majority of people are aware about its TYC and as 24% are still

unaware so it has to promote its campaigns more.

Frequency Percent

Cumulative

Percent

Valid yes 114 76.0 76.0

No 36 24.0 100.0

Total 150 100.0

Do you know about Vodafone‘s Thank you card?

Yes

NO

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Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?

Table No. 4.08


percent

Valid * Only coupons

*Only E-top value

*Both

*None

Total

17

5

8

120

150

11.3

3.3

5.4

80

100

11.3

14.6

20

100

Chart No. 4.08

When asked about whether they know anything about telecom business and are they selling any

type of recharge than most of the shopkeepers said that they are not into any such recharge

selling (80%), while some were into coupons selling and e-top value selling. This made easier to

open our work there , as some recharge was already available and those people had some

knowledge of this business.

None 80%

Only coupons 11.3%

Both 5.3%

Only E-top value 3.3%

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(ii) If selling then of which companies?

Table No. 4.09

Frequency

Valid Vodafone 15

Airtel 15

Idea 10

Tata

Other

10

15

Graph No. 4.01

When we asked them about all companies of which they were selling the recharges than majority

were selling Vodafone and Airtel recharge coupons and others include Idea, Tata, BSNL, and

Reliance.

TATA IDEA AIRTEL VODAFONE 0

5

10

15

Freq

Which company’s recharge available?

OTHERS

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Q.7 If you are not selling any, then do you have any idea about telecom business?

Table No. 4.10

Chart No. 4.09

Those who were not into this business, we asked them about their knowledge of telecom

business that in reply most of the respondent shopkeepers 76% replied that they had no idea

about this only 24% said they are having some idea of this business and they know about

recharge selling and commission which they will get on this.

Frequency Percent

Cumulative

Percent

Valid yes 114 76.0 76.0

No 36 24.0 100.0

Total 150 100.0

YES

No

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Q.8 (i) Are you interested in selling Vodafone?

Table No. 4.11

Chart No. 4.10

When we asked people if they are interested in selling Vodafone than most of the shopkeepers

(83.3%) denied and said that they cannot do this while only 16.7% said yes and got ready to sell

our recharges. There were several reasons of people about denying this.

Frequency Percent

Cumulative

Percent

Valid yes 25 16.7 16.7

No 125 83.3 100.0

Total 150 100.0

YES

No

Are you interested in selling vodafone?

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(ii) If no, then any particular reason for not selling?

Table No. 4.12

Frequency

Valid Illiterate 20

Age Factor 25

Less Commission 40

Several shops nearby

Financial issue

Credit issue in village

Other

30

25

35

25

Graph No. 4.02

When asked about their reasons for not starting this business than majority said the commission

is less, others said the villages take things on credit and do not pay for them frequently so credit

issue is also a big problem among villagers. Other reasons include Age factor as most of the

shopkeepers were of older age, several shops were there nearby, financial issues etc.

0

10

20

30

40

50

Frequenc

y

If no, then any particular reason for not selling?

Illiterate Age factor less commission several shops near Financial credit issue others

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Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?

Table No. 4.13

Frequency Percent

Cumulative

Percent

Valid Only

coupons 12 23.0 23.0

Only E-top 8 15.4 38.4.0

Both 32 61.6 100.0

Total 52 100.0

Chart No. 4.11

Those people who got convinced and satisfied with our presentation and promotion were readily

agreed for opening our outlet there and filled the ACT form new E-top connection and took

coupons (61.6%), while 23% opted for coupons only as many of them wanted to check and test

the sales there first before starting work fully and some were not ready to take e-top recharge as

they find it complex, while 8% took E-top recharge only.

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Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?

Table No. 4.14

Chart No. 4.12

When we asked them, are they ready to sell new sim connections than majority i.e. 65% said no

as they gave certain reasons for this while only 35% said yes at once.

Frequency Percent

Cumulative

Percent

Valid yes 14 35 35

No 26 65 100.0

Total 40 100.0

YES

No

Do you want to sell new SIM (New Vodafone connections)?

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(ii) If No, then reason for not selling?

Table No. 4.15

Frequency

Valid New connection

sale less 16

I.D. issues

Financial issue

15

10

Others 7

Graph No. 4.03

When asked about the reasons for not selling the new connections Majority said that in villages

new connections sale is less, others also said that I.D. issue is there and its risky for them though

we gave them solution for this query, Others said they cannot start this as they do not have

finance available, while some said they cannot compete shops in markets nearby who are

offering sim at very low price.

New Connection less Sale

I.D. issues Financial issue Others 0

5

10

15

20

25

Frequenc

y

If No, then reason for not selling?

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FINDINGS

AND

THEIR IMPLICATIONS

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CHAPTER – 5

FINDINGS AND THEIR IMPLICATIONS

FINDINGS:

Vodafone has a good customer base in rural areas as well. As among the rural villagers

we have visited, almost 80% were using Vodafone and were aware about its various

schemes like TYC, and other benefits.

The users were found to be very satisfied with the services they are getting and network

is very good in rural areas as well.

Among the shops we have visited almost 80% were not selling any recharge of any

company. Among others most were selling the paper coupons only.

Although most of the villager shopkeepers were not into this business of telecom were

almost 75% were having some knowledge about this business. They know about various

products of Vodafone and recharges available, E-top recharge, paper recharge, and the

commission they will get for selling (though not exactly the percentage) etc.

Most of the shopkeepers were not interested in selling Vodafone in their shops. They

gave several reasons for this and most frequently given reasons include Illiteracy, Age

factor, Less commission, Financial issues, Credit issues as villagers take things on credit

and not pay several times.

Those interested most of them took both recharges paper and E-top. Some took only

paper recharge as they wanted to first test this business and wanted to see if they will get

customers initially.

For selling SIMs (New connections) most of the shopkeepers said No. They were not

ready to sell new connections as they find it very complex and face certain problems.

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Most of the problems they are facing include New connection sale is less in villages and

I.D issues also made them to not to sell this.

Overall people were not very advanced and they were ready to cooperate and listen about

the company and things we were saying. Most who understood about this were ready to

start this business.

IMPLICATIONS:

As Vodafone has good customer base there in rural areas as well so it can focus on it.

Vodafone can get idea about the problems of villagers from this project and can find new

ideas to get rid of them.

Vodafone can use the findings to get more penetration into the other rural areas and can

design its strategies according to the findings and issues pertaining in villages.

This project work is for Vodafone but other companies also can get benefit from it. They

can also implicate this survey for getting the understanding of the rural market they want

to concentrate on.

Companies who are interested in entering rural areas can use this project work to know

the problems of villagers, which can help them guide in initial steps of entry.

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LIMITATIONS

OF

THE STUDY

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CHAPTER – 6

LIMITATIONS OF THE STUDY

The limitations of our projects include:

This project work is of two months and only few villages were visited, Sample size is

also small i.e. of 150 only so errors may crop in while generalizing the results.

The respondents may be in a hurry and to get rid-off quickly they might not have

responded truly to all the questions.

Most visits were done in the afternoon time, when most of the villagers are in resting

mood and we found some of the shops closed. These may be potential shopkeepers who

may have responded well.

Though most attention is given to analysis but there may be some human error in

analyzing which can create error in generalizing.

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RECOMMENDATIONS/

SUGGESTIONS

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CHAPTER – 7

RECOMMENDATIONS / SUGGESTIONS

This research throws light on various Issues and conditions of Vodafone‘s Rural Market and

can also help Vodafone to improve on different fronts in order to have an edge over its

competitors. Based on the analysis and findings of my research I would like to give following

recommendations:

Most of the shops present in the villages are either Kiryana or paan-bidi type, so company

should come up with new plans to lure these retailers who are least ready for this

business. Also for visiting the shops morning or evening time should be chosen as in the

afternoon we found most of the shops were closed in village.

Most of our respondents were using the Vodafone, so it shows Vodafone‘s services are

good there. Company should use it as the base for increasing its customer base.

Though most of the respondents knew about Vodafone‘s TYC, but a sufficient number

was unaware. So company should promote about TYC in the rural through Muniyadi, or

pamphlets and banners.

Though most our respondents were not selling recharges but they had a fair idea about

this business so this is of great use for Vodafone. The process becomes easy if they know

about it. So company should focus more on satisfying the shopkeepers about their other

issues and hurdles they are facing in opening recharge outlet.

Company should focus more on learning the shopkeepers so that they will be able to do

this business well. The company should make them understand the E-top recharge

process severally as it‘s not easy for some to understand in one go, also their benefits in

Best Deal, etc.

Most of the responses said the commission is less and Credit issue is there in village, for

this Vodafone should come up with strategies to solve these frequent problems and

should make villagers understand this.

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As for selling new connections people were not ready, as they feel there is problem

regarding the I.D issue and finance for sim, whose sale is less so people feel their money

will be blocked if they buy sim. For this company can make new plan and can provide

new sim to them on credit basis whose payment can be made after sale, more awareness

and activities can be organized in village to sell more sim. If more connections will sell

then only it can enhance its revenues rapidly.

As far as commission is concerned on sale, people less understood the Vodafone currency

system. They found it complex to understand and were more on selling the paper

recharge as it‘s easy. So company should consider this issue and should come up with

new alternative to give benefits to rural village retailers.

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CONCLUSION

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CHAPTER – 8

CONCLUSIONS

Vodafone has a firm commitment to growth and aims to differentiate itself in India's highly

competitive communications environment by ensuring customer delight through personalized

customer service, Excellent Network and other benefits. Vodafone has a solid reputation in India,

exemplified by a multitude of awards such as: three accolades – Two Gold and One Silver, at the

Asia Marketing Effectiveness (AME) awards ceremony, the GSMA Global Mobile Awards to its

strong value proposition as ―Best mobile enterprise service‖.

The Company is taking every bit of effort to penetrate into the rural area and above analysis

shows how it is trying its level best to achieve this. All the efforts are directed towards this.

Through consistent presence and support for rural ecology company can strengthen its hold on

rural market. Lowering the initial costs of entry is expected to keep company in profit since

reduced profit margins stand to be compensated by a larger consumer base.

If the company will carry on the good work of penetration into the rural

areas and enhance it by considering the suggestions made above in the report than it can pace up

the success of Mera Gaon Mera Desh project. Through its efforts of Promotion and penetration

activities it can surely become the first preference of every Indian may it be in any corner of

India and can become No.1 Telecom Company of India in near future.

This penetration will help in better connectivity and reduce the distances.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS Cooper Donald R. & Schindler Pamela S., 9

th edition, 2006, Tata McGraw-Hill

Publication Company Ltd., New Delhi. Ch-6 Research Design(pg.136),

Ch-14 Questionnaire & Instruments (pg.356), Ch-15 Sampling (pg.400)

Kotler Philip and Keller Kevin, Principles of Marketing, 11th edition, 2006, Prentice hall

Inc, Published by Ashoke K. ghosh, Connaught circus, New Delhi.

Ch-15 Advertising, promotion & public relations

ARTICLE

A Research article by CSK consulting Pvt. Ltd., ―Rural Marketing practices for Telecom

Services‖, 2008, Nokia Siemens networks.

WEBSITES

Cellular Operators Association of India, History of Cellular telephony

http://www.coai.com/history.php, 20 July 2010.

Instablogs, 10 Aug. 2010, Varinder Kaur

http://varinderkaur.instablogs.com/entry/vodafone-zoozoo-a-successful-marketing-

strategy/, Vodafone Zoo Zoos – ―A Successful Marketing Strategy‖.

Prahalad C. K., ―Bottom of the pyramid‖ article

http://www.12manage.com/methods_prahalad_bottom_of_the_pyramid.html

Telecom Regulatory Authority of India,

http://www.trai.gov.in/annualreport/TRAIAR2008_09E_Add.pdf, 25 JULY 2010.

Vodafone History, http://en.wikipedia.org/wiki/Vodafone_Essar. 2Aug 2010.

http://www.vodafone.com/start/media_relations/news/group_press_releases/2010/prelim_

2010.html

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ANNEXURE

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ANNEXURE

1. QUESTIONNAIRE:

QUESTIONNAIRE

Vodafone Essar Company

Dear Respondent,

I am a student of Maharaja Agrasen Institute of Technology, I am doing this Project for

Vodafone, for the purpose of promotion and opening new outlets in Sites called MERA GAON

MERA DESH FOCUS SITES, and so for that purpose I have designed following questionnaire.

Needless to say, that your information will be kept confidential and won‘t be disclosed to

anyone.

Q.1 The type of outlet visited:

a) Kiryana store. e) Tailor / Barber.

b) Mobile / repair shop. f) Photo shop.

c) STD/PCO shop. g) Pan-Bidi shop.

d) Chemist/Clinic. h) Other.

Q.2 Are you currently a Vodafone user?

a) Yes b) No.

Q.3 what is your experience with Vodafone?

a) Very satisfied.

b) Satisfied.

c) No opinion.

d) Unsatisfied.

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Q.4 what is the reason for your experience?

Good Bad

a) Network

b) Customer care service

c) Roaming facilities

d) Vodafone customer plans

e) Any other

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Q.5 Do you know about Vodafone‘s Thank you card?

a) Yes b) No

Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?

a) Only coupons

b) Only E-top Value.

c) Both.

d) None.

(ii) If selling then of which companies?

Yes No

a)Vodafone.

b) Airtel.

c) Idea.

d) Tata.

e) Others.

Q.7 if you are not selling any, then do you have any idea about telecom business?

a) Yes b) No

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Q.8 (i) Are you interested in selling Vodafone?

a) Yes b) No

(ii) If no, then any particular reason for not selling?

a) Illiterate.

b) Age factor.

c) Less Commission.

d) Several shops are nearby.

e) Financial issue.

f) Credit issues with villagers.

g) Any other

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Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?

a) Only recharge coupons

b) Only E-top Value.

c) Both.

Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?

a) Yes b) No

(ii) If No, then reason for not selling?

a) New connections sale is less here.

b) I.D. issues.

c) Financial issues.

d) Any other

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Vodafone rural penetration_project

Technology

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