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  2. 2. PANKAJ CHAUHAN GROUP 6 BRM PROJECT PREFACEWe all know how the competition in every sector is transforming the business environment. Inthis era of competition, the main driving force is to get fair and square information about thebusiness. It is well said that "You can do what you have to do, and sometimes you can do it evenbetter than you think you can provided that you have right information with you." With the same spirit, I undertake the writing of this report of the mini project, because itis fact, that every worthwhile accomplishment, big or little, has its stages of drudgery andtriumph; a beginning, a struggle and a victory.Being a management student, we must know competition is not only rife but growing moreintense every year. Moreover, every firm wants to rule its corresponding market and hold the topposition. Competition includes all the actual and potential rival offerings and substitutes that abuyer might consider. So, it becomes very essential to know the competitors product/services inall the sense. So, the mini project titled “A Study On Customer Satisfaction of VODAFONE InRanchi” is aimed at knowing the competitors product and strategies with respect to differentparameters like specification, features, price, promotional activities, after sales service,distribution channel etc. And, it is quite obvious that this comparative overview about theproduct and market survey will help the company in many ways taking into consideration itsimportant factors of success. 1
  3. 3. PANKAJ CHAUHAN GROUP 6 BRM PROJECT INDEXS No. Chapter Name Page No.1. Introduction 3-62. Objectives 73. Research Methodology 8-104. Company Profile 115. Data Analysis & Interpretation 12-256. Conclusion 267. Bibliography 278. Appendix 28-31 2
  4. 4. PANKAJ CHAUHAN GROUP 6 BRM PROJECT INDUSTRY OVERVIEW1.1 IntroductionThe Indian telecommunications industry is one of the fastest growing in the world.Government policies and regulatory framework implemented by Telecom Regulatory Authorityof India (TRAI) have provided conducive environment for service providers. This has madethe sector more competitive, while enhancing the accessibility of telecommunication servicesat affordable tariffs to the consumers. In the last two decades, the Indian Telecom Sector andmobile telephony in particular has caught the imagination of India by revolutionizing the waywe communicate, share information; and through its staggering growth helped millions stayconnected. This growth, however, has and continues to be at the cost of the Climate, poweredby an unsustainable and inefficient model of energy generation and usage. Simultaneously, thisgrowth has also come at significant and growing loss to the state exchequer, raisingfundamental questions on the future business and operation model of the Telecom sector.The telecom industry has witnessed significant growth in subscriber base over the last decade,with increasing network coverage and a competition-induced decline in tariffs acting ascatalysts for the growth in subscriber base. The growth story and the potential have also servedto attract newer players in the industry, with the result that the intensity of competition haskept increasing. The sector expected to witness up to US$ 56.3 billion investments and themarket will cross the US$ 101 billion mark in five years.1.2 Current ScenarioThe Indian telecom sector has witnessed tremendous growth over the past decade. Today, theIndian telecom network is the second largest in the world after China. A liberal policy regimeand involvement of the private sector have played an important role in transforming thissector. The total number of telephones has increased from 429.73 million on 31 March 2009 to926.55 million on 31December 2011. The telecom industry has witnessed significant growth insubscriber base over the last decade, with increasing network coverage and a competition-induced decline in tariffs acting as catalysts for the growth in subscriber base. The growth storyand the potential have also served to attract newer players in the industry, with the result thatthe intensity of competition has kept increasing. Also, broadband segment has seen significantgrowth with total internet subscribers reaching 20.99 million in September 2011, whichincludes 13.30 broadband subscribers. Liberalization of the sector has not only led to rapidgrowth but also helped a great deal towards maximization of consumer benefits, evident from ahuge fall in tariffs. Telecom sector has witnessed a continuous rising trend in the total numberof telephone subscribers and hence the teledensity. In simple terms, ‘Teledensity’ is thenumber of landline telephones in use for every 100 individuals living within an area. Ateledensity greater than 100 means there are more telephones than people. Third-worldcountries may have a teledensity of less than 10. Teledensity is also an important indicator of 3
  5. 5. PANKAJ CHAUHAN GROUP 6 BRM PROJECTtelecom penetration in the country. Teledensity has increased from18.2percent in March2007to 76.86 per cent in December 2011.Teledensity varies across circles and there issignificant urban-rural divide. While urban teledensity reached 167.4 percent at the end ofDecember 2011 and rural teledensity was only 37.5 per cent. At circle levels also, while somecircles such as Delhi(235.6 per cent), Mumbai (188.95 per cent), Kolkata (168.45 per cent), Chennai (170.18percent), and Himachal Pradesh (118.63per cent) have high teledensity, in some circles such asBihar (47.17 per cent) and Assam (45.85 percent), it is very low. The steps that been undertakento improve teledensity , particularly in rural areas .The wireless segment broadly classified intoGSM and CDMA segments based on the underlying technology. The GSM segment holds themajority of subscribers with785.97 million at the end of Dec 2011. The remaining 107.88 millionsubscribers use CDMA based services. While the GSM segment is seeing a consistent increase inthe number of subscribers, the CDMA segment is seeing a reduction. The CDMA wirelesssegment saw a decrease from 112.42 million at end of Sept 2011 to107.88 million at the end ofDec 2011. In contrast the figures for GSM are 761.20million and 785.97 million for Sept and Dec2011 respectively.(Both figures are from Listed website, August 2012)The overall wireless market and consequently the GSM market is led by Bharti Airtel which held19.62% at the end of Feb 2012. It is followed by Reliance Communications, which holds16.68%of the market and also the leader in the CDMA segment. In the GSM segment ,Vodafone andIdea closely follow Bharti Airtel while Tata and Sistema follow Reliance Communications in theCDMA segment. 4
  6. 6. PANKAJ CHAUHAN GROUP 6 BRM PROJECT 2. GROWTH IN TELECOMGrowth DriversKey factors, which will fuel the growth of the sector include increased access to services owingto launch of newer telecom technologies like 3G and BWA, better devices, changing consumerbehavior and the emergence of cloud technologies. A majority of the investments will go intothe capital expenditure for setting up newer networks like 3G and developing the backhaul,among other things. Subscriber BaseThe mobile subscriber base in India is estimated rise by 9 per cent to 696 million connectionsthis year, according to technology researcher Gartner. The mobile service penetration in thecountry is currently at 51 per cent and is expected to grow to 72 per cent by 2016. Mobile Value Added Services (MVAS)Indias current MVAS industry has an estimated size of US$ 2.7 billion. The industry derives itsrevenues majorly from the top five to six products such as game based applications, musicdownloads, etc, which continue to form close to 80 per cent of VAS revenues. The IndianMVAS industry estimated to grow to US$ 10.8 billion by 2015, with the next wave of growth insubscriptions expected to come from semi-urban and rural areas. Mobile Number Portability (MNP)Mobile Number Portability requests increased from 41.88 million subscribers at the end ofMarch 2012 to 45.89 million at the end of April 2012. In the month of April 2012 alone, 4.01million requests have been made for MNP. HandsetsThe mobile handset markets revenues in India will grow from US$ 5.7 billion in 2010 to US$7.8 billion in 2016, according to the study. India is the second largest mobile handset market inthe world and is set to become an even larger market with unit shipment of 208.4 million in2016 at a CAGR of 11.8 per cent from 2010 to 2016.The Indian handset market witnessed a 14.1 per cent growth in 2011 to touch a total volume of182 million handsets. The market continues to be dominated by Nokia with a share of 37.2 percent, followed by Samsung with 14.9 per cent, GFive with 7.5 per cent, and Micromax with 5.8per cent.Domestic and Chinese handset makers such as Micromax, GFive , Karbonn, Spice, Maxx andLava, have garnered a strong presence in the Indian market due to their feature-rich, localizedproducts and low price points. 5
  7. 7. PANKAJ CHAUHAN GROUP 6 BRM PROJECT 3. MARKET PLAYERSKey PlayersWith new players coming in, the intensity of competition in the industry has increased,especially over the last four years. The market share of telecom operators of the telecomcompanies reflects the fragmented nature of the industry, with as many as 15 players. As ofApril 30, 2012, Bharti telecom led the market with 19.94 per cent share, Reliance (16.58 percent), Vodafone (16.41 percent), Idea (12.4 per cent), BSNL (10.51 per cent), Tata (8.77 percent), Aircel (6.93 per cent), with the remaining share being held by other smaller operators.Telecom Operator wise Market ShareBharti is far ahead with close 20% market share in India, Reliance (16.58%) and Vodafone(16.41) are having a close battle. Reliance currently has 154 million subscribers as compared to152.5 million of Vodafone. Uninor, who is one of the late entrants in Indian Telecom marketnow has over 45 million subscribers and accounts for close to 5 percent of Indian mobilemarket share. 6
  8. 8. PANKAJ CHAUHAN GROUP 6 BRM PROJECT Objective of Study: Following are the main objective to study about the customer satisfaction on Vodafone.  To study telecommunication industry.  To study customer satisfaction of Vodafone.  To study various Marketing activities provided by Vodafone.  To study the various services provided by Vodafone.  To know the expectation of Vodafone Customers. 7
  9. 9. PANKAJ CHAUHAN GROUP 6 BRM PROJECT RESEARCH METHODOLOGYThe various means and methods have been deployed for effective collection of the desired data-has been elucidated in this section.Research methodology. Research methodology means the method carried out to study the problem. It shows thetype of sample design used, its size, and the procedure used to draw a sample, it also focuses onmethod used to collect data, process of filtering and analyzing the data. Marketing search toolswere made use of Questionnaire direct structured method.Market ResearchThe purpose of market research is to provide information, which will aid management decision-making.Marketing managers are commissioned to undertake marketing research and formal studies on specificproblems and opportunities. They may request a marketing survey, a product preference test, a salesforecast for a region or a research advertising effectiveness. It was felt that to obtain more informationintense study with practices was required for understanding the subject. The basic aim of the study is toanalyze the market share of VODAFONE in service market with its competitor.Research Design Research design is simply the framework or plan for a study, which is used as a guide in collectingand analyzing the data. It is the blue print that is followed in completing a study. As objective of theresearch is descriptive in form, the research is descriptive in form of the research design must be madeaccordingly.  Formulating objective of the study  Designing the method of data collection  Selection the sample size  Collection of data analysis and finding 8
  10. 10. PANKAJ CHAUHAN GROUP 6 BRM PROJECT  Conclusion and inferences  Limitations  Suggestions and recommendation. Sampling Area: The researcher’s area for survey was:  FIIB campus, New Delhi  Vodafone Store, South zone  Data Sources – DATA COLLCTION PRIMARY DATA SECONDARY DATA  Personal Interview  Magazines  Questionnaire  Internet Both primary and secondary data were used to collect information regarding the project. Thesedata were collected directly through customers & secondary research work involved collection of datathrough internet and magazines. 9
  11. 11. PANKAJ CHAUHAN GROUP 6 BRM PROJECTPrimary sources of data These data were collected on the basis of personal interaction with the customers &retailers by knowing their preferences & basic requirements.Secondary source of data The profile of Vodafone & other valuable information were gathered from internets &magazines. 10
  12. 12. PANKAJ CHAUHAN GROUP 6 BRM PROJECT Company ProfileIntroduction:Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is thelargest mobile telecommunications network company in the world by turnover and has a marketvalue of about £75 billion (August 2008). Vodafone currently has operations in 25 countries andpartner networks in a further 42 countries. The name Vodafone comes from Voice data fone,chosen by the company to "reflect the provision of voice and data services over mobilephones."As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5continents. On this measure, it is the second largest mobile telecom group in the world behindChina Mobile.In the United States, Vodafone owns 45% of Verizon Wireless. (Vodafone currentscenario, 2010-2011)Mission:Vodafone is primarily a user of technology rather than a developer of it, and this fact is reflectedin the emphasis of our work program on enabling new applications of mobile communications,using new technology for new services, research for improving operational efficiency and qualityof our networks, and providing technology vision and leadership that can contribute directly tobusiness decisions. (vodafone Home, 2010)Vision:Our Vision is to be the world’s mobile communication leader – enriching customers’ lives,helping individuals, businesses and Communities be more connected in a mobile world. 11
  13. 13. PANKAJ CHAUHAN GROUP 6 BRM PROJECT DATA REPRESENTATIONQ1) Do you have a mobile phone? .Suggestions Yes NoNo. of respondents 50 0 Sales Yes No 0% 100% 12
  14. 14. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ2) Are you aware about telecommunications services Suggestions Yes No No. of respondents 50 0 Column1 YES NO 100% 13
  15. 15. PANKAJ CHAUHAN GROUP 6 BRM PROJECT  Which operator’s service do you use?Operator’s service name No. of respondentsVodafone 35Airtel 7Idea 3Reliance 5 Vodafone Airtel Idea Reliance 14% 6% 10% 70% 14
  16. 16. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ3) Are you aware about Vodafone? Suggestions Yes No No. of respondents 50 0 Column1 YES NO 100% 15
  17. 17. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ4) From which source you came to know about Vodafone?Sources No. of respondentsAdvertisements 40Hoardings 2Newspapers 5Mouth Publicity 3 Advertisemnet Hoardings Newspaper Mouth publicity 4% 10% 6% 80% 16
  18. 18. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ5) since how long you are using Vodafone Services?Time period No. of respondentsLess than 1 month 72-6 months 56-12 months 3More than 1 year 20 Sales < 1 month 2-6 month 6-12 month > 1 year 20% 14% 58% 8% 17
  19. 19. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ6) which of the following services do you use of Vodafone?Services No. of respondentsPre-Paid 30Post-paid 5 Sales Pre-Paid Post-paid 15% 85% 18
  20. 20. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ7) which services are more helpful to you while using Vodafone Services?Services No. of respondentsCall Rates 5SMS Rates 20Network 7Value Added Services 3 Sales call rates sms rates network value add serv 9% 15% 20% 56% 19
  21. 21. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ8) Do you call at customer care?Suggestions Yes NoNo. of respondents 35 0 Sales Yes No 100% 20
  22. 22. PANKAJ CHAUHAN GROUP 6 BRM PROJECT  If yes, how often you call at customer care?Time Period No. of respondentsDaily 0Once a week 20Once a month 10Occasionally 5 Sales Daily Once a week once a month occasionally 14% 29% 57% 21
  23. 23. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ9) For what reason you call at customer care?Reasons No. of respondentsValue Added Services 5Information regarding new schemes 15Complaining 8Other queries 7 Sales VAS New scheme Complain Other Queries 20% 15% 22% 43% 22
  24. 24. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ10) Rate the following on the basis of your satisfaction.Services Excellent Very Good Fairly Good Average PoorNetwork 20 10 5 0 0SMS Rates 25 5 2 3 0New schemes 15 10 5 5 0and offersCustomer Care 27 3 0 5 0Recharge 30 2 3 0 0OutletsCall Rates 6 12 17 0 0Value Added 10 15 5 5 0Services 100% 9 8 90% 15 15 15 15 5 5 80% 15 8 15 48 15 70% 28 Excellent 60% 28 Very good 50% 42 85 Fairly good 40% 77 71 34 30% Average 57 20% 42 Poor 28 10% 17 0% Network Sms rates New Customer Recharge Call rates VAS scheme care outlets 23
  25. 25. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ11) Why you are not using Vodafone Services?Reasons No. of respondentsLack of awareness 0High Prices 10Poor Services 3Poor Network 2 Sales Lack of awarness High price Poor serv Poor network 14% 20% 66% 24
  26. 26. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ 1, 2 & 3  Total sample size i,e 50 have mobile phone and are aware of telecom services and also aware of its services but out of 50 only 35 uses Vodafone.Q4  Maximum respondent came to know about Vodafone from advertisement followed by hoarding and mouth publicity.Q5&6  Out of 35 who are using Vodafone are using it for more than one year and using pre-paid services of it.Q7  The reason why they are using Vodafone because of its low SMS rates.Q8&9  Users of Vodafone call customer care once a week for getting information related to new schemes.Q 10  Satisfaction level of its customer because of its excellent network followed by SMS rates and new schemes.Q 11  Out of 50 , 15 are not using Vodafone services because of high call rates. 25
  27. 27. PANKAJ CHAUHAN GROUP 6 BRM PROJECT ConclusionFollwing are the conclusion that the researcher found after the survey.  From the above analysis the researcher concludes that major respondents are dissatisfied with some of the major services like call rates, poor services.  Major portion of respondents from all respondents use services of Vodafone.  Major portion of customers of Vodafone are old customers so majority of respondents are satisfied with the services of Vodafone and thus they would like to recommend Vodafone to others.  Major portion of respondents using Vodafone pre-paid services compared to post-paid services.  Major portion of respondents are youngsters so they need more SMS facilities and low call rates, but Vodafone dissatisfies these age group (18-25) as their call rates are much high. 26
  28. 28. PANKAJ CHAUHAN GROUP 6 BRM PROJECTBibliography(2010). vodafone Home. Vodafone Home site.(2010-2011). Vodafone current scenario. New Delhi: TIMES OF INDIA.(August 2012). Both figures are from Listed website. New Delhi: www.asa.in.Works Cited(2010). vodafone Home. Vodafone Home site.(2010-2011). Vodafone current scenario. New Delhi: TIMES OF INDIA.(August 2012). Both figures are from Listed website. New Delhi: www.asa.in.Websites:  http://www.vodafone.com/start/media_relations/news/local_press_releases/portugal/p ortugal_press_release/vodafone_had_highest.html  http://en.wikipedia.org/wiki/Customer_satisfaction  http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)  http://en.wikipedia.org/wiki/Vodafone  http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf  www.anacom.pt/render.jsp?contentId=606658  www.iimcal.ac.in/community/consclub/reports/telecom.pdf 27
  29. 29. PANKAJ CHAUHAN GROUP 6 BRM PROJECT  QuestionnaireQ1) Do you have a mobile phone? o Yes o NoQ2) Are you aware about telecommunications service? o Yes o No If yes, then which operator’s Service do you use? o Vodafone (Multi-choice) o Airtel o Idea o Reliance ( If not Vodafone then go to Q12 )Q3) Are you aware about Vodafone? o Yes o No (If No, then go to Q11 ) 28
  30. 30. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ4) From which source you came to know about Vodafone? o Advertisement (Multi-choice) o Hoardings o Newspapers o Mouth PublicityQ5) Since how long you are using Vodafone services? o Less than 1 month o 2-6 months o 6-12 months o More than 1 yearQ6) Which of the following services do you use of Vodafone? o Pre-paid o Post-paidQ7) Which services are more helpful to you while using Vodafone services? o Call rates (Multi-choice) o SMS service o Network o Value Added ServicesQ8) Dou you call at customer care? o Yes o No If yes, how often you call at customer care? o Daily o Once a week o Once a month 29
  31. 31. PANKAJ CHAUHAN GROUP 6 BRM PROJECT o OccasionallyQ9) For what reason you call at customer care? o Value added services (Multi-choice) o Information regarding new schemes o Other queries o ComplainingQ10) Rate the following services on the basis of your satisfaction.Services Excellent Very Good Fairly good Average PoorNetworkSMS ratesNew schemes and offersCustomer CareRecharge outletsCall RatesValue Added Services 30
  32. 32. PANKAJ CHAUHAN GROUP 6 BRM PROJECTQ11) What makes you unaware about Vodafone? o Less Advertisements o Less Publicity o Others (If others then mention ________________________)Q12) Why you are not using Vodafone services? o Lack of awareness (Multi-choice) o High Prices o Poor Services o Poor networkQ13) Give your suggestions to help in serve you better.________________________________________________________________________________________________________________________________________________________________________________________________________________________Name: ________________Age: ___ yearsSex: Male/FemaleContact no.: ___________Signature: __________ 31