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  1. 1. A Marketing Research Report on VODAFONE NAME Shah Nikesh CLASS S.Y. B.B.A ROLL NO. SEAT NO. ____ ACADEMIC YEAR 2008-09 COLLEGE Shree H.N. Shukla College, Rajkot SUBMITTED TO SAURASHTRA UNIVERSITY GUIDED BY Mrs. Dina Kanani 1
  2. 2. Declaration I the undersigned NIKESH SHAH a student of S.Y.B.B.A.,here by declare that the project work presented in this respect is myown work and has been carried out under the supervision of Mrs.Dina Madam of H.N. Shukla COLLEGE, RAJKOT. This work hasnot been previously submitted to any other university for any otherexamination.Date: Student Sign:Place: 2
  3. 3. Preface In this era of globalization where every minute India ismoving a step ahead and expanding it horizontally, management inIndia is heading towards a profession. The demand formanagement’s professionals is increasing day by day. In such acompetitive surrounding it becomes a requirement to have an edgeover others and B.B.A is such a course, which helps and assistsstudents in doing that. The practical studies are treated as a different subject inB.B.A which helps the students in practically applying theirtheoretical knowledge. It helps us to face competition, builds up ourconfidence and also add something to our personality. Over andabove in this fast moving economy, here practical studies play animportant role in molding our carriers. 3
  4. 4. Acknowledgement I am much obliged to express my deep gratitude to all thepersonalities who spared their valuable time and gave me helpful co-operation and guidance for my Project Report. I am heartily grateful to the management of Shree H.N.Shukla particularly to the in charge Mrs. Dina Kanani for her helpfulco-operation, inspiration, interest and valuable guidance in preparingthis report. It is a matter of a great pleasure and excitement for me. Iexpress my sincere thanks to both Gentleman and staff members fordevoting their valuable time and providing extreme co-operation andguidance. Last but not least, I would like to express my sincere thanks toall respondents, friends and family members who have helped me inpreparing report through the preparation of this report.Date: Student Sign:Place: 4
  5. 5. IndexNO. PARTICULARS PAGE NO. 1 General Information 6 2 Company Profile 19 3 Marketing Department 25 4 Finance Department 45 5 Personnel Department 53 6 Future Plans 66 7 SWOT Analysis 68 8 Suggestion 74 9 Contribution 7610 My Observations 7811 Conclusions 8012 Bibliography 83 5
  6. 6. GeneralInformation Contents NO. PARTICULARS Page No. 1 Introduction 8 6
  7. 7. 2 Overview of company 10 3 History & Development of Company 11 4 Achievements 13 5 Location of Company 17 6 Types of Management Structure 18 Introduction Vodafone is a leading global telecommunications and data services provider operating with a high growth strategy in 17 countries. It is a dynamic and agile player with a strong track record as:• The first to market with an international 3G video mobile network. 7
  8. 8. • One of the most profitable 2G mobile voice and data network operators.• As a major owner and operator of the fibre optic broadband and fixed- line networks in England, serving as a telecoms gateway to China.• It is a world no. 1 in telecommunication. Vodafone started mobile business in 1983 in our home market of England and now serves over 40 million customers. Our array of telecommunications and data network offerings provides a depth of technological knowledge and insight into emerging consumer trends. This breadth of services in so many markets around the world also allows our operations to exploit opportunities, synergies and our critical mass in order to maintain our leadership position. Our telecommunications and data infrastructure support offerings in the areas of mobile telephony (voice and video based multimedia), fibre-optic broadband networks, fixed-line services and radio broadcasting VODAFONE is proud to be the first international provider of 3G video mobile services and an early adopter of the latest and most promising mobile phone technology. Another of our major telecommunications subsidiary is VODAFONE Telecommunications International Limited which was listed on the England and New York stock exchanges in October 2004. VODAFONE Telecom has a significant presence, and in many cases is a market leader, in nine dynamic markets, operating 8
  9. 9. or rolling out mobile services in England and Macau, India, Israel,Thailand, Ghana, Indonesia and Vietnam. The 3G network inEngland and a fixed-line telecom running there on a fibre opticnetwork is also part of the VODAFONE Telecom business.VODAFONE Telecom is built on a high-growth strategy focused onmobile telecommunications services markets with economicprospects and good demographics. A number of VODAFONETelecom markets such as India remain significantly under penetratedand offers significant opportunities for future growth. In othermarkets such as England and Israel, mobile phone penetration ishigher but customers are very eager to adopt new services andapplications, offering growth prospects in providing technologically-advanced value-added services. 9
  10. 10. OverviewName of the company : Vodafone ltd.Size of the unit : Large Scale UnitForm of organization : Multinational co.Web site : www.vodafone.inYear of establishment : 1984 in EnglandStage of product : MaturityName of the service : Post paid cards Prepaid cards Short Message Service Voice mail services Vodafone power service “Through continuous innovation, VODAFONE promises toliberate, stimulate customers from the shackles of time andspaces” 10
  11. 11. History & Development of the company Vodafone Limited is a leading international corporation committed to innovation and technology with businesses spanning the globe. Its diverse array of holdings range from some of the worlds biggest port operators and retailers to property development and infrastructure to the most technologically-advanced and marketing-savvy telecommunications operators. Vodafone reports turnover of approximately UK 242 billion and UK 124 billion for the year ended 31 December 2006 and for the unaudited results for the six months ended 30 June 2007 respectively With operations in 56 countries and over 220,000 employees worldwide, Vodafone has five core businesses - ports and related services; property and hotels; retail; energy, infrastructure, investments and others; and telecommunications. Vodafones achievements include being: • The worlds leading port investor, developer and operator with 44 ports across Europe, the Americas, Asia, the Middle East and Africa. • A pioneer of mobile multimedia communications with the launch of third-generation mobile phones and networks. • A visionary and international telecommunications operator through Vodafone Telecommunications International Limited which provides mobile phone networks and data services in nine dynamic markets in Asia, the Middle East and Africa. 11
  12. 12. VODAFONE Whampoa Limited is among the largestcompanies listed on the main board of the England Stock Exchange.Flagship companies include VODAFONE Port Holdings,VODAFONE Whampoa Properties, A.S. Watson, Cheung KongInfrastructure and VODAFONE Telecom. VODAFONE dates back to the 1800s and while its operationsnow span the globe, it continues to remain based in England.VODAFONEs executives and staff are a multicultural mix asdiverse as the reach of the corporations operations. VODAFONE has a strong commitment to the higheststandards of corporate governance, transparency and accountability -principles which have been recognized by the receipt of numerousawards and commendations. Landmark buildings in the Groups portfolio include the 62-storey Cheung Kong Center in the Central district of England, theOriental Plaza in Beijing, and The Center in Shanghai. Prestigiousresidential properties in the United Kingdom include Royal GateKensington, Belgravia Place and Albion Riverside. Other holdingsinclude a stake in the Pacific Century Place Marunouchi office andhotel towers beside Tokyo Station and a beach and golf resort in theBahamas. The Group, together with Cheung Kong (Holdings) Limited,has set up a joint venture company, Harbour Plaza HotelManagement (International) Limited, to operate and manage hotelsunder the portfolio of the VODAFONE Property division. 12
  13. 13. Achievements & Accreditations1. VODAFONE Essar Limited, VODAFONE Mobile ServicesLimited, Fascel Limited, VODAFONE Telecom East Limited,VODAFONE Essar South Limited, Aircel Digilink India Limitedand BPL Mobile Cellular Limited (jointly hereinafter to asVODAFONE) shall use reasonable endeavors to check the accuracyof the information published on its Site. VODAFONE and any otherVODAFONE product or service name referred to on theVODAFONE website are trade marks of VODAFONE EssarLimited.2. Content (information, communications, images and soundscontained on or available through VODAFONE) is provided byVODAFONE, its affiliates, independent content providers and thirdparties. The contents of VODAFONE are copyright © VODAFONEits affiliates, independent content providers or third parties. Allrights reserved. The contents of VODAFONE cannot bereproduced, modified, transferred, distributed, republished,downloaded, posted or transmitted in any form or by any meansincluding but not limited to electronic, mechanical photocopying orrecording without the prior written permission of VODAFONEEssar Limited. You agree that the material and content containedwithin or provided by VODAFONE is for your own personal useonly and may not be used for commercial purposes or distributedcommercially.3. VODAFONE will use its reasonable endeavors to maintainVODAFONE in a fully operating condition. It is not responsible for 13
  14. 14. the results of any defects that exist in VODAFONE You should notassume that VODAFONE or its content is error free or that it will besuitable for the particular purposes that you have in mind whenusing it. VODAFONE reserves the right to make subsequentchanges to it, and services may be modified, supplemented orwithdrawn.4. It is a condition of us allowing you access to the information onVODAFONE that you accept we will not be liable for any actionyou take relying on the information on VODAFONE. VODAFONEwill not be liable if your use of materials or information fromVODAFONE results in the need for servicing, repair or correction ofequipment or data, you assume any costs relating to the above.VODAFONE reserves the right to charge for access to certaininformation on VODAFONE. VODAFONE will inform you wherea charge will be incurred by you for accessing certain services orinformation on VODAFONE.5. If you’re PC does not support relevant technology including butnot limited to encryption you may not be able to use certain servicesor access certain information on VODAFONE.6. You may not mirror any material contained on VODAFONE onany other server without the prior written consent of VODAFONEEssar Limited. Any unauthorized use of the contents ofVODAFONE either under this clause or clause 4 above may be inbreach of copyright laws or trademark laws. 14
  15. 15. 7. You acknowledge that VODAFONE has no control over andexcludes all liability for any material on the Internet which can beaccessed by using VODAFONE Neither can we be deemed to haveendorsed the content.8. By submitting any material to us via the VODAFONE website,via email or otherwise, you do so in the knowledge thatVODAFONE may copy, modify, distribute or create a derivativework from that content in any form. You warrant that the material isfit for publication and agree to indemnify us if any third party takesaction against us in relation to the material that you submit. Youwarrant that you believe VODAFONE may publish the material yousubmit and/or make use of it or any concepts described in it in ourproducts or services without liability and you agree not to takeaction against us in relation to it.9. In a few areas of VODAFONE we may ask you to providepersonal information that will enable us to use the information youprovide us with to keep you informed of our latest products andservices after your visit to VODAFONE The personal informationwill be used in accordance with our online privacy policy.10. You agree not to cause, nor knowingly allow others to cause,any nuisance, annoyance, or inconvenience, whether toVODAFONE or any of its customers or users of VODAFONE byany means. You also agree not to use VODAFONE to transmit or 15
  16. 16. post any material which is defamatory, offensive or obscene ormenacing character or which may in our judgement cause nuisance,annoyance, inconvenience to VODAFONE, or any other person orwhich is illegal. You will not use VODAFONE such that you wouldcause the whole or part of VODAFONE to be interrupted, damaged,and rendered less efficient or impaired in any way.11. The service is accessed via the World Wide Web which isindependent of VODAFONE and VODAFONE. Your use of theWorld Wide Web is solely at your own risk and subject to allapplicable national and international laws and regulations.VODAFONE have no responsibility for any information or serviceobtained by you on the World Wide Web.12. VODAFONE does not accept responsibility for any defects thatmay exist or for any costs, loss of profits, loss of data orconsequential losses arising from your use of, or inability to use oraccess or a failure, suspension or withdrawal of all or part of theservice at any time. VODAFONE excludes all liability whether incontract, tort (including liability for negligence) or otherwise for theaccuracy, suitability, quality or completeness of any information andthe value and integrity of goods and services offered by third partiesover VODAFONE You acknowledge that we have no control overand we exclude all liability for any material on the World WideWeb, which can be accessed by using VODAFONE. 16
  17. 17. 13. We may suspend or vary the whole or any part of theservice offered on VODAFONE for any reason, at any time at oursole discretion.14. VODAFONE reserve the right to vary the terms of this contractfrom time to time, such variations becoming effective immediatelyupon posting of the varied Legal Statement on VODAFONE Bycontinuing to use VODAFONE you will be deemed to accept such 17
  18. 18. Location of The Company When a new business unit is to be established the maindecision to be taken about location of the industry. Location ofthe unit is a vital factor to deciding the profitability of company.There are many factor which are to be kept in mind whileselecting the location of the plant. It includes internal andexternal factors. Even if promoters have best ability to investand have the effect management skills but if they don’t takecare of location, it will decline prosperity of the company. 18
  19. 19. Types of Management Structure Board of Directors Production Marketing Finance H.R. Department Department Department Department Finance Manager H.R. ManagerManu. Dept. Assembling Dept. Mkt. ExecutiveSupervisor Supervisor EmployeeWorker Worker 19
  20. 20. Company 20
  21. 21. Profile 21
  22. 22. ContentsSr. Particulars Page No.No. 1 World wide VODAFONE 21 2 Presence of VODAFONE a Cellular 22 3 VODAFONE – The Brand 23 4 In the Pipeline 24 22
  23. 23. World Wide VODAFONE VODAFONE is a leading global telecommunications and dataservices provider operating with a high growth strategy in 17countries. It is a dynamic and agile player with a strong track recordas: VODAFONE started mobile business in 1983 in our homemarket of England and now serves over 40 million customers. Ourarray of telecommunications and data network offerings provides adepth of technological knowledge and insight into emergingconsumer trends. This breadth of services in so many marketsaround the world also allows our operations to exploit opportunities,synergies and our critical mass in order to maintain our leadershipposition. Our telecommunications and data infrastructure supportofferings in the areas of mobile telephony (voice and video basedmultimedia), fibre-optic broadband networks, fixed-line services andradio broadcasting 23
  24. 24. Presence of VODAFONE aCellular The biggest merger over took place in the history of wirelesstelecommunication services. The first time ever, the Essar groupjoined hands for working together. In the year 2006 VODAFONE Cellular operates in Andhra Pradesh,Chhattisgarh, Goa, Gujarat, Madhya Pradesh and MaharashtraMumbai and Delhi VODAFONE Cellular is committed to achieving totalcoverage. Its advanced Cellular network build up helpsVODAFONE offer seamless coverage in over 1 towns andunsurpassed highways coverage across all its circle of operation.These include 23 districts from Andhra Pradesh, 53 cities acrossMadhya Pradesh, entire Gujarat, 400 kms of highway across 85towns and cities. It is the first cellular operator in India to offeruninterrupted highway coverage across all its circle of operations. 24
  25. 25. VODAFONE – The Brand!Brand Name :- VODAFONE Ltd.Brand Person :- ARUN SARINBrand Delivery :- World class Cellular Telephony with value Added ServicesBrand Presence :- In the state of Gujarat, Madhya, Bihar, Pradesh, Maharashtra, Goa, M.P., U.P., Andhra Pradesh, Chhatisgarh, Delhi, H.P. etc.Brand Colour Significances :-* The White background : - Youth & Energy* Red Colour :- Energy* Red Colour Text :- Solidarity* The VODAFONE :- InnovationBrand Launch :- • 22th August, 2007 • A media spent of Rs. 40-42 crores in T.V advertisements, Print ads, Murals, brand launch parties, P.R.Campaigns, in all a high decibel and Discussed launch. 25
  26. 26. In the Pipeline The current period is a very crucial one for all the cellularoperators in India, due to a simple reason of a cold cellular warbeing on, internally within the competitors as well as externally tobe fought with the WLL and the TRAI. This being the gestationperiod for the WLL cellular operator to be in the market has tolaunch, innovate and improve their schemes on a more customerfriendly based, so that their clientele is intact. In such a situationprice crunches on outgoings, free incoming calls, free airtime, andother innovated and users-friendly value added services are the onlyoptions. To be intact at what VODAFONE Cellular is today, alsorequires carrying out any of the above options and thus the onemajor plan in the pipeline, coming in within 7-8 months is to exceedcustomer usage of cellular phones than landline users whichpresently is 10 crores, compared to landline users of 4 corers. Secondly to develop and synergies on such value AddedTechniques that are customer friendly and beneficial to the society. Thirdly in the coming months they are planning to reduce thecost of airtime, so that there is a benefit to the users. A few more cell site launches, appointments of customers’convenience center, Retailers and distributors are in the pipeline,which would be beneficial to all concerned. 26
  27. 27. MarketingDepartment 27
  28. 28. ContentsSr. No. Particulars Page No. 1 Importance of marketing Department 27 2 Organization Chart 29 3 Marketing – Yesterday & Today 30 4 Advertising 31 5 4 P’s of marketing 37 6 Market Share 43 7 Competitors 44 28
  29. 29. Importance of Marketing Department Marketing is the focus point of all business activities because the objectives of all business enterprise are to satisfy the needs and wants of the customers. Production and purchase has no meaning unless a firm is able to market the goods and services. Nothing happens unless somebody sells something. Marketing is the distinguishing feature of business. A business is essential part from all other human organization by the fact that it markets the product or services. Marketing is the basic operative function of all business firms. It serves on the basis of business planning and generates revenue for the firm. Efficient marketing management is essential for the survival and growth of every enterprise. Marketing is a system of integrated business activities designed to develop marketing plans and programs leading to the satisfaction of customer wants. Marketing department represents an important functional area of business management efforts for the flow of goods and services from the producer to the consumers. Marketing department of the VODAFONE Cellular Limited is a crucial part of its organization. The company can achieve its subsidiary objectives along with the primary objectives with the help of marketing department. It not only helps the company to achieve the goals that are directly related to marketing department but also helps in achieving the goals that are related to other departments of the organization. 29
  30. 30. With the help of the marketing department VODAFONECellular as a company has not be successful in gaining the salesvolume but also earned goodwill for itself. As a result of the effortsmade by the marketing department VODAFONE Cellular isenjoying a prestigious position in the telecom industry. 30
  31. 31. Organization Chart CMO (Chief Marketing Officer) -Bombay DGM (Marketing) (Director General Manager) - Ahmedabad Assistant Assistant AssistantAssistant Manager Manager (Value ManagerManager - Postpaid Added Service) Outdoor - Prepaid Marketing 31
  32. 32. Marketing Yesterday & Today Business is changing at the speed of thought – literally, asacross the globe, somewhere or the other; someone comes up withsomething that revolutionizes the entire concept of business, as it isunderstood then. To keep pace with these developments, marketinghas become more intricate and scientific than ever before. Today nofirm can afford to rest on past laurels and be complacent about itsmarket. Competition is more intense and cutthroat than ever before,and the firm has to meet all these challenges, most in the form ofdirect or indirect marketing strategies. Yesterday was different, in the sense that firms that enjoyed agood market reputation did not need to market themselves to theirconsumers again and again. But today, times have changed. Keepcompetition poses challenges that have to met and countered, andthe customers are more demanding than they were around 20 yearsback. Past achievements are no longer a company’s claim tosupremacy. Earlier, marketing was confined to the narrow scope ofselling. But now, marketing is concerned with all activities aimed atfinding wants and filling them. The mantra followed the world overis “customer is the king”. It is the customer alone who keeps thebusiness going and provides employment to people. If the currenttrends were anything to go by, the future would only add to themisery of unprofessional or pedantic forms. Only firms willing and 32
  33. 33. able to change according to changing market conditions andconsumer demands would thrive in the market. 33
  34. 34. ADVERTISING “The best advertising is done by satisfied customers” -Philip Kotler Advertising can be defined as mass paid communication of goods, services or ideas by an identified sponsor. It is paid communication because the advertiser has to pay for the space or time in which his advertisement appears in the recognized media such as news paper, magazines, radio, T.V., Cinema film, posters, etc. Advertising can create market for a new product. It is very powerful tool for the creation and retention of consumer demand. VODAFONE Cellular Limited spends more than 30% of its profit in advertisement. It uses almost all media for its advertisement. VODAFONE Cellular Limited does its advertisement through ‘Lowe Lintas’ which is an advertising agency. VODAFONE’s advertisement is such that it informs guides; protect buyers and helps in increasing the standard of living. VODAFONE Cellular Limited use following Medias for advertisement Print Media: - It gives advertisement in each and every newspaper, magazines, and periodicals. The company also distributes calendars, cards during Diwali, diary, pens, clocks, key chains etc. to Retailers, customers. 34
  35. 35.  Posters: - It uses printed posters which stick on the wall. Banners: - Company provides banners to each and every Retailer and also to the Distributors. Hoarding: - The Company has done the use of hoarding at the major point of cities in different parts of the country. Glow Shine Board (GSB): - It is an electric board which is given to each and every Retailer. 35
  36. 36. Market Segmentation What is market segmentation? Market consists of buyers and buyers differ in one ormore respect. Market segmentation is a method for achievingfrom limited marketing resources by recognizing differences inthe response characteristics of various parts of the market. Insimple words market segmentation is nothing but just divingmarket into several groups. There are mainly four types of market segmentation. (1) Geographic Segmentation (2) Demographic Segmentation (3) Psychographic Segmentation (4) Behavioral Segmentation For “Vodafone” They produce only agriculture productslike ox operated drill, Tractor Operated Drill so for thecompany main segmentation of their product is agricultureproducts users farmers etc. 36
  37. 37. Channel of Distribution It is a process through which the goods or consumerfrom the producers. Distribution decision relates with moving.Product available at a right place, in right time for the rightpeople. Distribution channels are system of economic institutionthrough which a producer of goods delivers them into thehands of their uses. After the production the producer has totake decision how to do selling and distribution their products.So, how a product reaches to the consumer from the produceris called “Channel of Distribution”. Manufacturing or Production Direct Consumer Dealer Court of (Gujarat) Consumer 37
  38. 38. Pricing Policy Pricing policy means to determination our product, athow much cost it can be sold. The pricing policy of companyinfluences it’s sales to a large scale. Price is one element ofmarketing mix that produces revenues the other element ofmarketing mix is product cost. A wrong pricing decisions avoideffects of all right decisions related to products. When a unit take pricing decision they have to considersuch factor like taxes, expenses, Govt. policy, Profit etc. In“Vodafone” Pricing is deciding as under: Raw material cost + Wages of labour + Accessories +Other expenses + Taxes + Profit = Price of a product. 38
  39. 39. After Sales Services After sales services is the best part of the Vodafone. Becausethey arrange a special department for that service. Means when anycustomers buy a card of Vodafone after some days the after salesservice department is contact to the customer and asking them ifthere any problems related to their product or not. In short we can say once they sold their products to thecustomers they are keep in touch with their consumers. 39
  40. 40. FOUR P’S OF MARKETING MIX Marketing Mix of a Company includes 7 P’s of marketing. But generally they can be precisely describe under four major heads viz. Product mix, price mix, promotion mix, and place mix. Product mix answers the question as to what, when, how, how much etc. to produce. Price mix answers the question as to the produce good should be sold at what price. Promotion mix suggests the promotional activities that have to be undertaken. While place mix describe distribution modes and channels1. Product Mix: - The product is the most tangible and important single component of the marketing programme. Product said to be the heart of the marketing mix. The whole marketing programme is based on the product. It is said that nothing happens in our economy unless there is a sale or purchase of product. Product is the sole of all over marketing activities without a producer; marketing can’t be imaged through which the transaction takes place. 40
  41. 41. It gives life to all marketing programme. So main responsibility of management should be to know its product well in the book of Philip Kotler there is a sentence “The first commandment in marketing knows their consumer the second is to know their product.” It is not necessary that product must be physical it may be service product and other but main theme is that it is capable of delivering satisfaction of wants or need. In VODAFONE Cellular Limited, there is only one product i.e. sim card through which company provides services. • What is Sim Card? The mobile phone is widely used in the markets now a day. It is just like a necessarily of a businessman or any kind of professional person. A sim card is one type of card which is fixed on the backside of a mobile phone. Any sim card service providing company in India is not manufacturing sim card but they import the sim cards from different countries. The VODAFONE Cellular Limited Company imports the mobile sim card from Switzerland.2. Price Mix: - Pricing the product is one of the important elements in marketing mix. It is the most critical decision in marketing management, so it is said that “Success or failure of business depends upon its product price policy”. Price is the exchange value 41
  42. 42. of the goods or services in terms of money. The exchange value of product is called price. The decision regarding pricing must be taken after considering every aspect of business and while fixing the prices, not on profit but also various factors i.e. social responsibility also to be considered. VODAFONE Cellular Limited determines the price in such a manner as to offer a reasonable amount of profit to the manufacturer, a reasonable remuneration to the middlemen and the maximum satisfaction to the consumers. It has found that a price kept by VODAFONE Cellular Limited is much lower and quite reasonable in comparison to its competitors. A company can pursue any of the six major objectives by its pricing which are as follows: 1. To survive in the market. 2. Maximize current profit 3. Maximum current revenue 4. Maximum sales growth. 5. Maximum market skimming 6. Product quality leadership. VODAFONE has adopted many methods for pricing which are as follows: - Penetration Pricing: - 42
  43. 43. This method is generally adopted at the time when the company has just entered into the market or newly started company uses this method. In this method the product price is lower then the substitutes in the market through which customers are attracted. Psychological Pricing: - Sellers should consider the psychology of prices in addition to their economics. Many sellers believe that the prices should end in odd numbers for such company prices dominate in the newspaper all in odd numbers i.e. product price is Rs. 299 in stead of Rs. 300. Skimming Pricing: - This method by which company can attract the customer mostly this pricing methods is always used in the time of festival such as Diwali offer, Navratri offer etc. VODAFONE takes benefit of all festival because they placed skimming price for short period on Navratri and Janmastami.3. Promotion Mix: - Promotion plays an important role in stimulation of demand and sales of the product. Promotion is basically communication process by which producer of the product or service draw attention of the consumer for prospective consumer towards their products. Sales Promotion: - 43
  44. 44. Sales promotion is a key ingredient in marketing campaigns. Where advertising offer a reason to buy, sales promotion offers on incentive to buy. Sales promotion includes tool for consumer promotion (coupons, etc.) Trade promotion (price-off etc.) etc Sales promotion tools are used by most organization, including manufacturing, distributors, Retailers trade associations and non profit organization.4. Place Mix: - Place mix is also known as Distribution Mix. This stands for the various activities the company undertakes to make the producer easily available to the customer. In today’s economy the producer customer are separated by vast distances. Place mix is nothing but marketing activities in which movements or flows of goods or services are there from primary producer to ultimate consumer. It includes Distribution Channel: - Distribution Channel: - Channels of distribution generally depend upon the nature of product, volume of sales and trade practices adopted. The set of marketing institutions participating in the marketing activities which involves the movement of all goods and services from the primary producer to the ultimate user or consumer is called the distribution channel. In modern era, with the increase in size and production of the unit, it is very difficult to sell the products directly to the 44
  45. 45. consumer so they have to adopt, distribution channel withmiddlemen like wholesalers, distributors, Retailers, etc. 45
  46. 46. DISTRIBUTION CHANNEL Company Distributor Dealer Salesmen Retailer Customer 46
  48. 48. COMPETITORS “Poor firms ignore their competitors; average firms copy theircompetitors; winning firms lead their competitors.” Today in this competitive world VODAFONE has got manycompetitors which are as follows: -  AIRTEL  IDEA  BSNL  RELIANCE  TATA INDICOM 48
  49. 49. Finance 49
  50. 50. Department INTRODUCTION Something must be direct the how of economic activity and facilities its smooth operation. Finance is the agent that produces this result. Nature of financial management refers to its functions, scope and objectives. Financial management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. In modern times finance is the life-blood of the business. No matter, whether the business is big or small financial is the equally important. The financial resources must proper planned and control in order to achieve the best out of available. So, financial resources should be very properly. 50
  52. 52. FINANCIAL PLANNING Generally, financial planning means deciding in advance, thefinancial activities are to be carried on to achieve the objective of thefirm. In broader séance, in the words of Walker and Boughn as;“financial planning includes the determination of firm’s financialobjectives, formulating and promulgating financial polices anddeveloping and procedures.” Financial planning is necessary to achieve both long term andshort term objectives. A sound financial planning includes howmuch need of funds for both the terms. Then from where they are tobe received and utilized. “Vodafone” would evaluated different proposal placed beforethem and selects the best out of them. It estimates how much capitalis going to be required for various proposals and how much is thereturn on the capital employed. The financial manager lays down theestimate on the capital of cash per week, per month and per year. 52
  53. 53. CAPITALIZATION At the time of incorporation of any business, it is the firstproblem before the promoters to decide how much capitalizationshould be made in a business. The amount of capital of any timeshould not exceed nor less than the amount required. So, it isnecessary to have proper capitalization for the success of theenterprise. But Gerstenberg defines it as; “The total accounting value of all capital regularly employedin business, it includes owner’s capital, borrowed capital and anyother sources.” Thus term includes;1. The value of ordinary and preference shares2. The value of all surplus earned and capital3. The value of bonds and security still not redeemed4. The value of long term loans However the modern view includes short term funds orliabilities under the firm. It should be properly capitalized. “Vodafone” issue shares. So, all these terms do apply. 53
  54. 54. CAPITAL STRUCTURE Capital structure is the permanent financing of the firmrepresented by long term debt, preferred stock and net worth. Capital structure refers to its capitalization. Companyprocures funds by issuing various types of security i.e. ordinaryshares, preference shares, bonds and debentures. Before issuingsecurities the unit should decides what kind of securities should beissued? A balanced capital structure means and ideal combination ofownership capital and borrowed capital. “Vodafone” issues shares and it has reserves or surplus. Thefirm has taken loans from financial institutes. So capital structure ofthe firm consists ownership capital as well as borrowed capital. 54
  55. 55. FINANCIAL LEVERAGE Financial leverage is also known as trading on equity. In otherwords, the effect on earning by the use of fixed cost securities iscalled financial leverage. It is the ratio of return on share holdersequity and the net rate of return on total capitalization. The degree of financial leverage can be calculated at any levelof operating profits as follows.Financial Leverage = Operating Profits or E.B.I.T. E.B.I.T. – Interest or P.B.T. Financial leverage is followed by this firm as shares anddebentures are issued. 55
  56. 56. FINANCIAL POSITION PERTICULERS Rs.Capital 3,460,811,000Reserves 1,481,000Loan borrowing 0000000000 TOTAL 3,462,292,000Investment in fixed assets Rs. 5,54,754,000Investment in current assets Rs. 1,69,423,000Total investment Rs. 7,24,177,000 56
  57. 57. 57
  58. 58. PersonnelDepartment INTRODUCTION For survival growth of organization it requires better combination of Men, Money, Machine and Material. From these elements Men is most difficult and challenging element. In general sense, management of human resources in an organization is called personnel department. In present Personnel department is essential due to complexity of HRM in an organization. Personnel can be defined in the words of Pigors and Hynes as “Personnel management is method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to organization.” In the case of “Saurashtra Rachanatmak Samiti” it has personnel; manager to manage the HRM of their sector. Thus, it has a well established personnel department for managing their workers and employees. 58
  60. 60. MEN POWER PLANNING Men power planning is primary and essential function ofHRM. It is initial stage to get right type and right number ofpersonnel in an organization. As human resources is most valuableamong all capitals. It should be planned carefully andsystematically. In the words of Coleman Bruce “Men power is the process ofdetermining men power requirements in order carry the integratedplans of the organization.” In regard to personnel department of “Vodafone” is veryconscious because it is through out depended on HRM. It takes intoaccount the facts and of present work forces on the basis of suchavailable information of HRM. 1. TOTAL EMPOLYEES: 165 (near about) 2. SALARISE PERSON: 25 (near about) 3. 3 SALARISED AGENT: 140 60
  61. 61. 4. FOREMEN: 12 (near about) Men power planning thus enables the organization to make additions or deductions in about employees. For that it makes both short term and long term men power. RECRUITMENT, SELECTION AND PLACEMENT1) RECRUTMENT: The following factors affecting recruitment; a) Size of organization. b) The employment condition in the community where the organization is located. c) Working condition wage and salary and other benefits. In “Vodafone” they have usual three methods of recruitment; 1. Direct method 2. Indirect method 3. Third party If they want highly learned employees than they, apply indirect method. And if they want semi skilled labour than they, ask to their worker to ask their relative to apply for job. 61
  62. 62. 2) SELECTION: Second stage after having adequate number of application for particular job is selection. In short, it refers to choice best condition out of available. In fact selection process begins with initial screening then follows different types of test and interviews. The personnel department of “Vodafone” follows a perfect selection procedure. After receiving application, first of all takes preliminary interview and employment test. Personal interview and check reference of applicants. More ever they give importance more to mentally fitness of person. Lastly they would prepare list of final applicants who have crossed above hurdles and suitable for jobs. Finally they have been given appointment letter. 62
  63. 63. As far as unskilled labors are concerned they take advice from present workers who can suggest the names of their friends and relatives for selection in job.3) PLACEMENT: Once a candidate select for a job he should be placed on suitable job. “Placement can be described as the determination for the job to which an acceptable is to be assigned and his assignment to his job. Sometimes employees are put on probation period. In “Vodafone” sometimes selected sub ordinates employees are placed job for two or three months depended on nature of the job while there would be no testing in case of experienced and salaries. 63
  64. 64. TRAINING AND DEVELOPMENT PROGRAMME Training can be described as learning sequence ofprogrammed behaviors. It increases knowledge and skill for doing aparticular job. While development covers not only improve the jobperformance but also bring growth of personality maturity and selfactualization.1) ON THE JOB: In this method employees are coached and instructed bysenior workers. Here, they have given basic training for fifteen dayswith basic salary and adopt this method of training mostly foroperational level.2) OF THE JOB: 64
  65. 65. In this method training is a part from job place. In recent yearsit becomes more popular so, trainees get training in a classroom ofcompany by special instructor. It includes seminars, conferences,case studies etc. “Vodafone” using this method only for top leveland middle level. WAGES AND SALARY ADMINISTRATION As every factor employed in a enterprise gets rewards for hiscombination among this factor human resources get contribution inform of monitory terms. So, proper administration of their wagesand salaries become a necessity. The priority objective of wage and salary administration is toestablish salary structure. Second one is to maintain acquisition oflabour cost structure. Sound wage policy should contain both theobjective. It is affected by factors like demand and supply of labors,labour rate in market etc. 65
  66. 66. Here, in “Vodafone” follows time wage system which is mostcommon and oldest system? Under this system workers are paidaccording to work done by in certain period. On an averageorganization Pays 40000-45000 to Sales manager and ass. Manageris paid near about 60000-100000 and agent are paid off commissioncum incentive. “Vodafone” pays total salary at the end of month and anyworker can withdraw half of salary. PERSONNEL RECORDS A record is a piece of writing with provides ready informationand preserves evidence for future use. Therefore personnel recordmeans maintenance of information regarding personal. Personnelrecord helps personnel manager in decision making. He can decidethe demand and supply of personnel in an organization. In “Vodafone” personnel maintain files of each and everyemployee for their presence, leave, bonus, promotion, performance,salary etc. is mention. The data regarding each employee is fed in tocomputer and store for future reference. 66
  67. 67. TIME KEEPING SYSTEM Every company has to keep watch on employee’s weatherthey come in time or not. This directly affects to the productivity ofeach employee and so production. So, it becomes necessary to get enough work from workers inproportion of their wages and salaries. In “Vodafone” office time isas under.SHIFT WORKING TIME HOURS RECESS 1 9 a.m. TO 1p.m. 4 Half An Hour 2 2 p.m. TO 6 p.m. 4 Half An Hour 67
  68. 68. EMPLOYEE BENEFITS AND SERVICES Employee’s benefits and services provided by any company is very useful not only from the view point of employees, but also from company. The requirement of providing such kind of facilities and services arises from social responsibilities. This is an important tool for any company to motivate its employees; 1. BETTER WORKING CONDITION : The management of this organization has given careful attention towards proper working condition for its employee. It 68
  69. 69. includes ventilation, drinking water, light, air etc. a special care is taken for better working condition as possible as best.2. BONUS AND FESTIVAL: Bonus is given to each employee during Diwali. More over all are to be given sweets on festival like Dashera, Diwali as a gift.3. PROVIDENT FUND SCHEME: As per government rules, provident scheme compulsory for organization, for that 8% of basic pay of employees and same amount by company paid to employee’s account. After retirement the amount accumulated to provident fund account is given to him as per rules.4. OTHER FACILITIES: “Saurashtra Rachanatmak Samiti” has given residential facilities to the employees. In addition to it, benefits like medical allowance, leaves and facilities like canteen, safety equipment, are provided to them by “Vodafone”. The management of “VODAFONE” is very conscious for welfare of its employees. They think that more ever they spent on employee is one kind of investment. It will be benefited through 69
  70. 70. HRM. The reason why they spent is benefited by increasedproductivity, quality and loyalty of workers. 70
  71. 71. FuturePlan Future Plans VODAFONE Cellular Limited has only one future plan and that is to excel in its field and conquer the market. Today there are more then 3 crores cellular phone users and the people who use the land line are around 7 crores. There is a huge gap to be bridged and 71
  72. 72. the only and future term plan of VODAFONE Cellular Limited is toexceed the land line users. Secondly their long term plan is to be consistent in the policyadopted by them for the purpose of outright excellence in their field.The policy of quality coverage, subsistent rates and a genuinecustomer convenience and care are high in standards presently andVODAFONE Family feels that if these are the factors that aremaintained at a consistent level then the company will be able tomeet all its future plans and goals. Thus VODAFONE Cellular Limited has no plans in particularexcept to lead the market in the crucial times of Cellular wars, andout rightly exceed the usage of land lines by wireless cellulartelephones and maintain their standard of quality coverage. 72
  73. 73. SWOT 73
  74. 74. Analysis SWOT ANALYSIS STRENGTHS: -1. DISTRIBUTION NETWORK: - VODAFONE Cellular has a wide spread network and to completely cover such network, it has a predetermined channel which covers every nook and corner of the city so that all masses are covered. With distribution network and an equal capacity to canalize makes VODAFONE Cellular strong in its own.2. LIVE WIRE PROFESSIONALS: - For every job specification in VODAFONE Cellular Limited there is employed a live wire professional who is best suited to his position and responsibility when it comes to skill, talent, qualification and perfection. Having people with such zeal and enthusiasm, professionalism comes as strength.3. PROACTIVE CUSTOMER CARE: - Not only VODAFONE Cellular Limited is strong from within but when its comes to external forces it proves its worth. Fabulous customer commonsense centers are established to take care of any issue that may come as a problem to the mass proactive customer care is one of the assets of the company while telecustomer care comes as an icing to the cake. 74
  75. 75. 4. TELECOM FOOTPRINTS: - VODAFONE Cellular though establish recently has set its foot in major cellular markets, be its markets of masses or geographical markets. The important states of India all have VODAFONE Cellular footprints with them. This is strength indeed.5. PROMOTERS – SYNERGY BETWEEN CORPORATES:- First time in the corporate history ever, has the two big heads joined hands for a merger with the telecom giant VODAFONE corp., U.S.A. This is strength itself. PARENT VODAFONE i.e. VODAFONE is among the top ten brand of the globe, which process as strength to organization. 75
  76. 76. WEAKNESSES: -1. FUNDAMENTAL CASHES: - As said earlier, corporate giants across the globe Tata, Birla, AT&T have joined hands to form VODAFONE Cellular Limited. They all being supreme in their field, have their own perceptions, these perception ideas and means are found to clash when they meet. Thus this may be proved as a hindrance to the company and comes out as a weakness.2. DELAY IN DECISION MAKING: - As the three partners are huge corporate, the flow of decisions, actions and understanding are channelized through a long route. This may cause delay in any decision to be taken and which might not be good for the company.3. TELECOM FOOTPRINTS: - VODAFONE Cellular is only present in 7 states out of highly numbered 26 states which show that geographically VODAFONE Cellular is not able to cover entire state. This leaves behind weak telecom footprints of the company. 76
  77. 77. OPPORTUNITIES: -1. Lowest telecom Density in the world.2. Lowest call charges in the world as well as in India.3. Opportunity to outsmart the landlines connections, through the usage of Mobile telephony.4. Growth possible through Acquisition.5. VODAFONE Cellular is established only in 16 states. It has still got a scope to establish itself in the remaining state and hold it foot. 77
  78. 78. THREATS: -1. VOLATILE REGULATORY MARKET: - Day in day out there is various rules and regulations that arecoming in the market and which on highly volatile in nature. Pricefluctuation, are one of them competitors come in and go out in ajiffy, and in such a situation to hold an upright place is difficult in itseven words and thus proves a threat to excrescence of companies.The same has been observed by VODAFONE Cellular.2. PREDATORY PRICING FROM WILL OPERATORS: - With ongoing Cellular wars and advent of WLL, Cellularoperators are now into an artificial cover of threat. The threat ofpricing policies, threat of customers care etc. is going high as WLLhave been setting its foot with predatory pricing policies tounchannelize Cellular operators.3. EXPANSION INVESTMENT THRET: - In order to survive in the market, VODAFONE Cellular has toupdate its technologies, and this all expansion requires huge costpull expenditure and this increase costs in leaps and bounds. 78
  79. 79. Suggestion 79
  80. 80. SUGGESTION The highly professionalized management and totally modernmarketing approach are the basic key factors behind the success ofVODAFONE Cellular Limited. The management of VODAFONECellular Limited is very perfect and nice. As per company’s perfectmanagement there is no need to give any suggestion to the companybut I observed that each and every person in this company is hardworking which one of the positive points of this company is. According to my observation, company spends lots of amounton advertisement. 80
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  82. 82. Contribution 82
  83. 83. CONTRIBUTION “VODAFONE Cellular Limited” at each and every step of itsdevelopment has tried to fulfill its social responsibility along with itsobjectives of profit. It has been following the policy and principlewhich ensure economic development. During the time of earthquake in Gujarat VODAFONECellular Limited has constructed up many mobile PCO’s. 83
  84. 84. 84
  85. 85. My Observation 85
  86. 86. My Observations VODAFONE Cellular Limited made me observe many things while on my survey of 100 Retailers in different areas. There were various reactions and gestures which, I observed through people. Few are some of them: - AMBIENCE & ATMOSPHERE: - Retailers, I visited were friendly and helpful. As it progressed with my survey they were highly co-operative and anxious to help me out with my findings. PRICING STRUCTURE: - Retailers insisted on a consistent stable and substantiate pricing policy as they were really frustrated with the constantly changing price in the mobile world. PERSONAL APPROACH: - Retailers always want the executives coming to their places and making them understand about the new scheme and plans, which are going to enter market. SALESMEN SERVICE: - Retailers are quite satisfied with the salesmen service. Whenever the retailers are in need of SP, RV, etc. when they make a single call to salesmen then order will be made available by salesmen with in an hour. 86
  87. 87. 87
  88. 88. Conclusion CONCLUSION VODAFONE Cellular Limited is one of the leading service providers present today in the state of Gujarat. It has been indeed a pleasure working for VODAFONE Cellular Limited, though as a part of my training. I have conducted my project on Retailer’s Network Management of VODAFONE Cellular Limited. As student trainees, I have learnt immensely. VODAFONE family is very co-operative, friendly as well as professional and practical in their approach. They have been guiding me whenever I viewed an obstacle. They have been of great help when it came to providing information to me about themselves and their organization. I wont be exaggerating, if I say that this project has helped me develop me as a person because while conducting my survey I have met 100 people whose nature was different from one another and each meeting in itself have been a memorable experience. I would also like to say that this project has made me known the realities that exit in the market today. I have also known the technicalities involves while finding the right sample for my survey. 88
  89. 89. This project I have learnt a lot about Survey etc. which has meapproach the real world in quite an extent. Also this project hashelped me have a more deepened knowledge about the cellularphone market, on going cellular wars etc. VODAFONE Cellular Limited is a company who has grownby leaps and bounds in these two years and has emerged itself into anew beginning. Under the report, I have researched about Retailersof VODAFONE Cellular Limited the findings of my survey say thatVODAFONE today is the leader in the market and is still growing. VODAFONE Cellular has got a very bright future as thedemand for cellular services are increasing day in and day out. ThusI conclude my report wishing company all the very best for theirfuture and I would like to thank all people concerned who helped memake this project come true. 89
  90. 90. Bibliography 90
  91. 91. BIBLIOGRAPHY1. Marketing Management: - By Philip Kotler2. Web site: - - 91