Lower Utilisation Project Vodafone vandana

LOW UTILISTION TOWERS
IN SIRSA, HARYANA
A SUMMER INTERNSHIP REPORT
Submitted by
VANDANA JOSHI
Registration No.: 11502023
in partial fulfillment Summer Internship for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
School of Business
LOVELY PROFESSIONAL UNIVERSITY
Phagwara, Punjab
July, 2016

ACKNOWLEDEMENT
I would like to express my deepest gratitude to all those who support me and made it possible to
complete this report. A special appreciation that I really want to give to our Internship Supervisor for
this project Mr. Rahul Girdhar, (Area Sales Manager), whose contribution was very remarkable and
was always there to resolve my issues and also helped me to coordinate my project especially in writing
this report.
Furthermore I would also like to acknowledge with much appreciation the crucial role of the entire staff
member of Vodafone, My MD, ADs and DSEs, who make it possible to complete this internship with
success and great achievements. Special thanks goes to my Mr. Nitin Rai (Relationship Manager),
who help me to think critically and gave suggestion about the task “Convincing Retailers”. Last but not
least, many thanks go to the head of the project, Mr. Rahul Monga, (Zonal Head) who have invested
his full effort in guiding the team in achieving the goal. I have to appreciate the guidance given by my
respected mentor Mr. Mithelesh Pandey,(Assistant Professor, LPU) as well as the panels especially in
our project presentation that has improved our presentation skills thanks to their comment and advices.
Hope what we have learned will always be remained.

S.NO TITLE PAGE NO.
1 Introduction 6-7
2 Performance of the Company 7-8
3 Vision and Mission of Company 9
4 Branding 9-10
5 Introduction about Report 10-11
6 Purpose and Objectives 12-13
7 Distribution Channel 13-14
8 My Position and Responsibility 14-18
9 Site Classification 19-20
10 Amount of Work done and Data Presentation 20-23
11 Problem and Findings 24
12 Recommendations 25
13 Conclusion 26
14 Evidences 27
15 References 28

VODAFONE INDIA LIMITED
VODAFONE STORE

BOARD OF DIRECTORS

INTRODUCTION
COMPANY OVERVIEW:
Vodafone India Limited is the second largest mobile network operator in India by subscriber base, after
Airtel. The company was incorporated in 1992 and is based in Mumbai, Maharashtra with design stores
in Ambala and Narnaul. Vodafone India Limited operates as a subsidiary of Vodafone Group Plc. It has
over 194 million customers. The company offers prepaid and postpaid services, including mobile
number portability, roaming and calling cards; mobile internet and phones for customers. It offers its
products and services through its stores and online.
Vodafone India Limited was formerly known as Vodafone Essar Limited and changed its name to
Vodafone India Limited in October 2011.
TIMELINE:
YEAR MILESTONE
1995 Hutchison Whampoa launches operations in Mumbai.
2000 Services in other metros- Delhi, Kolkata and also Gujarat markets through Essar
Acquisition.
2002 Operations in Karnataka, Andhra Pradesh and Chennai.
2003 Acquires AirCelDigilink (ADIL- ESSAR subsidiary)
2005 Starts operations in three circles – Tamil Nadu, Kerala and Maharashtra, after acquiring
BPL, Mobile.
2007 Acquires a 67% stake in Hutchison Essar for $11.1 billion with a subscriber base of 30
million.
The company renamed ‘Vodafone Essar’ and ‘Hutch’ rebranded as ‘Vodafone’.
2010 Vodafone crosses 100 million subscribers.
Vodafone acquires spectrum for 9 circles in India in the auction for 3G spectrum.
2011 Vodafone Group buys out its partner Essar from its Indian mobile phone business. Pays
$5.46 billion to buy Essar’s 33% stake in the Indian subsidiary taking Vodafone’s share to
74%.
Vodafone Essar Limited becomes Vodafone India Limited.
Vodafone commences launch of 3G in India in phased manner.
Vodafone India revenues stand at INR 27,000 crores.
2012 Vodafone India is INR 32,000 crores in revenues, crosses the 150 million subscriber mark.
Vodafone India recognized as the ‘Best Marketing Company in India’ by an Economic
Times survey.
Vodafone completes 5years in India.
Vodafone India announces a strategic alliance with ICICI Bank to launch – M-pesa –

unique mobile money transfer and payment service – facilitate financial inclusion.
Vodafone India acquires additional spectrum in 14 circles in the 2G spectrum.
2013 Vodafone files FIPB application to increase stake to 100% in Vodafone India(following
100% FDI in Telecom sector.
Vodafone receives FIPB clearance to increase stake to 100% in India unit.
2014 Vodafone India is fully owned by Vodafone Group.
PERFORMANCE OF THE COMPANY
 Vodafone is having 19% market share and stands at second position in Indian telecom industry
as of February 2015.

 Vodafone is the second largest service provider in India having more than 190 million
subscribers. The performance for the financial year ended 2015. The data usage is contributing
more towards the growth of the company as it stands 44.1% higher due to higher usage, and
voice revenue is 7.1% higher due to increase in subscribers.
 The company continues to be one of the leading operators, having a revenue market share of
32.0% for the year 2014-15. Revenue from the operations of the Company stood at Rs.42,121
million, representing a growth of 14.3% as compared to 2013-14.
 The PBIDTA increased to Rs.32,984 million, an increase of 99.6% compared to 2013-14.
 The Profit after tax (PAT) stood at Rs.6,280 million for the year 2014-15 as compared to loss of
Rs.1,149 million posted in previous year.

VISION AND MISSION
VISION:
“Our vision is to be the communication leader in an increasingly connected world.”
BRANDING
Vodafone is a formidable global brand and has always ranked amongst the top most valued brands
globally and Most Exciting and Admirable Brand in India.

Organizational Structure:
Vodafone India Limited is part of the Vodafone Group Plc, with pan-India operations, serving around
194 million customers.
Cellular Services:
Vodafone India Group offers both prepaid and postpaid GSM cellular phone coverage with
comprehensive pan-India urban and rural penetration.
Enterprise Services:
Vodafone Business Services provide total telecommunications (Voice and data) solutions across
mobility and wireline platforms, to serve the needs of enterprises, both large and small. It enjoys the
twin advantages of global expertise and experience and knowledge of local markets, besides a robust
network infrastructure and 24*7 Network of Coverage (NOC).
M-pesa:
‘M-pesa’ is a safe, secure and convenient service that enables money transfers to any mobile device in
India. It is also useful for airtime top-ups, bill payment services and can also pay for purchases at some
store. M-pesa, therefore is an important facilitator of the financial inclusion. VMPL, has partnered with
ICICI Bank to launch m-pesa across the India.
INTRODUCTION ABOUT REPORT
BASE TRANSCEIVER STATION (BTS)
A base transceiver station (BTS) is a piece of network equipment that facilitates wireless communication
between a device and network. However, because a BTS is associated with mobile communications
technologies, it refers to the equipment that creates the “cell” in a cellular network. Sometimes, an entire
base station, plus its tower, is improperly referred to as a BTS or cellphone tower. A BTS typically has
multiple transceivers that allow it to serve many of the cell’s different frequencies and sectors.
A BTS consists of following:
 Antennas that relay radio messages
 Transceivers
 Duplexers

 Amplifiers
LOW UTILIZATION TOWERS:
The BTS or commonly known as tower of company is considered as factory and to maintain a factory a
certain cost is incurred by company. Normally it takes around Rs.150000-200000 per month to a
company to maintain a tower, and if that particular tower doesn’t provide the potential benefit to the
company it comes under low utilization tower. Low utilization towers are more in rural areas as
compared to urban areas.
Reason to come under low utilization tag:
 Competitors in that particular site are having more revenue earning subscribers.
 There are no retailers of the company in that area.
 Network coverage is weak and people prefer other network.
 Company is providing service in that area.
 Delay in sim activation process.
 People are not spending much on calling and data.
 Visibility of the company is very low as compared to other network.
 Competitors are porting numbers to their network by providing attractive offers.

Purpose of the project
The main purpose of the project is to bring sites that are given to me, out from LUT.
As these sites are non-profitable and are not bringing any revenue to company so, in order to make the
sites profitable we made few objectives. By achieving those objectives slowly, the site will come out of
LUT and will start giving good revenue to company.
Objectives of the project
To provide better service –
In order to bring the site out from LUT we have to provide better service to retailers. Availability of
recharge and all type of coupons, regular visit of DSE or AD in site, timely activations of sim cards is
necessary for better service.
-
In order to grab more customers, we have to make sure that customers know all the schemes that are in
market for them. Pasting grid posters for all the monthly schemes and handmade posters for new
schemes is also one of the way to pull out the sites out from LUT.
–
Encouraging retailer to sell more recharges and coupons can also bring the site out from LUT.
-
One of the reason for the site to be a LUT can be there are less activation and recharge outlets. Low
availability of people working for company in a site can vanish the name of the company from the site.
-
Adding new customers will surely bring revenue because of more recharges sale.
-
Portability is one of the best way as it adds new customers to Vodafone that too for a longer period of
time.
A new project was added whose moto was to provide good service.
tive of Project Vistaris to provide good service to retailors so they can work for Vodafone
without any problem.

process is weak, service is weak and there is need of a distributor who can provide stock to every
retailor, there in that particular area and can solve any and every problem they are facing related to
Vodafone.
VODAFONE DISTRIBUTION CHANNEL
1. Super Distributor (SD):
Super distributor handles around 7-12 AD’s, and earns almost 0.4% of the total revenue and also
extra benefit on new activations.
2. Master Distributor (MD):
Master distributor directly handles almost 4-5 AD’s and also has direct control over market and
maintains relationship with retailers. Master distributor earns around 1.4% of total revenue and
gets extra benefit on new activations.
3. Associate Distributor (AD):
Associate distributor handles around 4-5 market and has direct control over the market. All the
activities in the market are done under the stamp of AD. Associate distributor earns from recharge
activities and also from new activations done in his market.
4. Distributor Sales Executive (DSE):
DSE or Feet on street works directly with retailers, all the activities in the market is done by DSE.
From recharging the E-Top number to collecting the new activation forms.

PREPAID HIERARCHY FOLLOWED:
1. ZM – Zonal manager
2. ZPH – Assistant Zonal manager
3. ASM – Assistant manager
4. RM – Relationship manager
5. PSR – Area manager
6. SD – Super distributor
7. MD – Master distributor
8. AD – Associate distributor
9. DSE – Direct Selling Executive
MY POSITION AND RESPOSIBLITY
My position in Vodafone was as Market Development Executive (MDE).
Three main responsibilities:
 Working on visibility of Vodafone, by sticking recharge grids and handmade posters.
 Creating and maintaining goodwill with retailers, and also adding new retailers in the market.
 Increase subscriber base of the company by doing canopy activities and also engaging retailers in
activation process.
Other responsibilities:
 Educating retailers about new schemes and offers available with Vodafone.
 Taking queries from retailers and customers and convey them to Relationship Manager.
 Ensuring timely activation of the new connections.
 Smooth service in the area, through timely recharge of retailers E-Top numbers and also work on
availability of sim cards (normal, CYN and MNP).

GROUND REALITY:
 Visibility:
One of my responsibilities was to work on visibility part by sticking handmade posters and grid recharge
charts in the market.
 Maintaining goodwill:
One of the important responsibilities was to create and regain the confidence of the retailers in the
market as they are backbone of the business.
 Canopy Activities:

Major part of my work was done through canopy activities. Canopy activities were important in order
to get new connections by providing exciting offers to the customers.
 Educating Retailers:
In order to get work done through retailers it was very important to educate retailers about new offers
and schemes available with Vodafone for them. The retailers were divided into different categories to
avail claim for the activations done. And also different FRC’s were available with different OTF
benefit to retailers.
Vodafone divides retailers into three categories:
1. Platinum
2. Gold
3. Silver/Bronze
Platinum
FRC OTF BASE TARGET DAO
75 23 15 20
5rs/no>10days
DAO
7rs/no>15days
DAO
12rs/no>22days
DAO
If retailer is doing SRC of Rs.3 on 50% of VAC2 then he will get total amount of payout.
Gold

75 23 15 15
5rs/no>10days
DAO
7rs/no>15days
DAO
12rs/no>22days
DAO
Silver/Bronze
75 23 15 10
5rs/no>10days
DAO
7rs/no>15days
DAO
12rs/no>22days
DAO
AMO payout for retailers:

FRC Grid for retailers:

SITES CLASSIFICATION
All of my three sites were rural areas.
 Sites given to me were purely LUT sites where a lot of work was needed to be done.
 Vodafone service was not available in these sites for a long time.
 Network coverage was one of the big issues.
 Few retailers were having E-Top numbers of Vodafone.
 Schemes and offers were not conveyed to retailers properly.
The main features of this project are:
 To provide good service to existing retailers.
 To motivate and encourage retailers to undertake activation and push more recharge.
 To open new recharge and activation outlets.
 To increase customer base by new connections and porting other network numbers.
The activities for this project include:
 To visit market regularly the site, to ensure retailers are working according to their target.
 To stick recharge grids and handmade posters in order to increase visibility.
 To do canopy activities in all of the sites in order to increase Gross Added Share(GAS) of the
company.
Selling Process:
Selling process includes convincing retailers to work for Vodafone by pitching a demo, where we explain
AMO i.e. only for retailers which explains how retailers can earn while working for Vodafone.
Route plan –


Market visit- As our project started I was told by my relationship manager to survey all the four markets to
know about the scenario of the markets. The survey was conducted with DSE’s and AD’s who visit their
markets regularly. This is to check the scenario of the market and to see what are the problems the existing
retailers are facing.
Visibility-The very first task was to increase visibility in all four markets. I went to all four markets and
pasted grid posters. I even made handmade posters of new schemes and pasted in shops.
Availability- From daily visit to market I came to know about all the problems my retailers are facing
weather it was related to availability of recharge, coupons, or even DSE is available to solve other problems
of retailer. I had conversation with all the retailers and asked about problems they are facing. I tried to solve
the problems and even conveyed all the problems to AM sir in daily report so that problems of retailers are
taken seriously.
Better service- when you are visiting a market regularly and solving the problems of retailers weather it is
their problem regarding Vodafone or some customer has asked for it, you are actually providing a good
service. Availability leads to better service.
Motivation- To earn a good amount from market for company you need to motivate retailers to work more
for Vodafone. Let if a retailer has asked for a recharge of 3000 you can motivate him and tell him to work
hard for himself and go for 4000 as he can do it. Motivating him to work on porting and explain him about
the profit on different numbers by checking schemes will bring profit to both company and retailer too.
Result analysis- After working in market for a period of time the next step is to analyze what are the results.
If the results are good, then we should think to make them better than the previous one and if the results are
not up to the mark, then we should think of to change the plan a little or modify it.
Further progress- Working on a plan will not give instant results as we have to wait for a period of time
in order to make trust and motivate retailers and it will take time. So, in order to get good results, stick to
the plan is a process we need to follow for a period of time.
AMOUNT OF WORK DONE
Work done and Data presentation
At first we started with market survey where we surveyed all our markets assigned and analyzed the situation
of the market. We tried to know each and every problem that site contain so that we can solve them.

The targets were also given of Gross, URO, UAO, Data FR and MNPO whose growth can bring those LUT
sites out from loss. So work started with convincing retailers to work for Vodafone either recharges,
activations or MNP.
ed
DATA PRESENTATION
Data presentation of target vs achievement of month June and July.
(Table – 1) In the month of June my target and achievements were –
June 2016 Gross Target vs Achievement:
S.NO TYPE TARGET ACHIEVED %ACHIEVEMENT
1 GROSS 792 618 87
2 URO 27 25 90
3 UAO 16 13 88
4 MNPO 11 9 85
5 DATA FR 279 46 19
I was not able to achieve gross target fully because the service of Vodafone was very weak and no
distributor is there in these areas, but I had worked hard and because of that gross target in June was
more than gross target in May.

June 2016 URO, UAO, MNPO Target vs Achievement:
FARWAIN TARGET ACHIEVED
URO UAO MNPO
11 06 04
URO UAO MNPO
10 05 07
PANNIHARI TARGET ACHIEVED
URO UAO MNPO
08 05 03
URO UAO MNPO
09 05 02
KUTABUDH TARGET ACHIEVED
URO UAO MNPO
09 05 04
URO UAO MNPO
07 04 04
I had added many new retailers in these sites and Vodafone was slowly gaining market in these areas,
as the results were at par compared to last month.
July 2016, Gross Target Vs Achieved
S.NO TYPE TARGET ACHIEVED %ACHIEVEMENT
1 GROSS 946 920 98
2 URO 33 27 87
3 UAO 18 22 117
4 MNPO 13 13 92
5 DATA FR 238 14 5

July URO,UAO, MNPO Target Vs Achieved
FARWAIN TARGET ACHIEVED
URO UAO MNPO
11 06 04
URO UAO MNPO
10 05 07
PANNIHARI TARGET ACHIEVED
URO UAO MNPO
08 05 03
URO UAO MNPO
09 05 02
KUTABUDH TARGET ACHIEVED
URO UAO MNPO
09 05 04
URO UAO MNPO
07 04 04
Gross Added Share in June:
SITE ZONE Voda GAS Ind GAS Voda RES Ind RES
Farwain Hissar 69 429 1069 5122
Pannihari Hissar 21 350 782 4354
Kutabudh Hissar 547 805 1502 4019
Gross Added Share in July:
SITE ZONE Voda GAS Ind GAS Voda RES Ind RES
Farwain Hissar 137 670 1179 5494
Pannihari Hissar 71 458 761 3826
Kutabudh Hissar 520 765 1530 4006

Problems
 No 3G is there in my LUT sites due to which customers are showing more interest towards
competitors product because idea and airtel is having 3G network .
 Improper services is the biggest issue.
 Retailers is having issue that Vodafone claim comes after 1 month whereas competitors
claim comes in a week.
 No timely visibility.
 DSE is not having any knowledge of new schemes due to which they are not able to
communicate it to the retailers.
 Irregularity of market through DSE.
 Lack of availability of sims in AD point.
 Late activation of new connections due to which
Findings
 Most of the shopkeepers in these areas were very supporting and welcoming.
 Most of the retailers were not aware about the schemes and offers available with Vodafone.
 Most of the activation outlets were uneducated; they were facing problems in filing RPAC’s
of the new connections.
 Some of the customers were unaware of their best offer check by 121.
 The customers in these LUT sites were more interested in less call charges, which was not
available in Vodafone.
 There was negligible presence of Vodafone in these areas.
 Offers and recharge grids were written in English hence most of customers remained
deprived.
 There was also delay in posting the posters for month’s offers.
 People were not using internet enabled phone in these areas so the recharge outlets were
relying only on main balance.
 Also there were no exciting offers for existing customers.
 There was also delay in activation process of new connections.
 Most of the shopkeepers were doing recharge as a side business.
 Also recharge outlets were not willing to upgrade in activation outlets.

Recommendations
 Vodafone should increase visibility in these areas in order to gain more market share.
 DSE’s and PSR’s should visit these sites regularly in order to gain confidence.
 Either morning or evening time should be chosen to visit these markets as I found most of the
shops were closed during day.
 Company should come up with exciting offers for these areas, as I found people were not
interested in the offers which we were offering.
 Company should also come up with good schemes for retailers in order to lure them to work
for Vodafone.
 Also DSE’s and PSR’s should provide uninterrupted service in the market whether it’s
recharging flexi or collecting new connection forms from the market.
 The activation process should be made smooth, fast and timely activation of new connections
will surely increase the gross share of the company.
 DSE’s and PSR’s should educate retailers about new schemes and offers so that they can tale
benefit from these offers.
 Good relationships should be maintained with retailers as they are backbone of the company.
RM should visit the market once in a week and communicate with retailers this will increase
credibility of the company.
 Gate meeting should be regular in order to clear all the doubts about new schemes and plans.
 Offers should be provided according to the needs of customers, as most of the customers want
less call charges.

Conclusion
Customer loyalty is very important in order to stay at top position in the market. Customers and
retailers are the main driver of the business in telecom sector. In order to keep them happy company
needs to provide them exciting and extra benefits.
The key to a successful business is a steady customer base. After all successful businesses typically
see 80 percent of their business come from 20 percent of their customers.
Gaining back LUT site is one of the tough jobs for any company. Vodafone is working hard in these
LUT sites in order to gain the lead in the market.
The best way to gain back these areas is to make new recharge and activation outlets on the first hand
and then convert them to quality outlets.
The company is taking every bit of effort to penetrate in these rural areas many new schemes and offers
are devised just for these LUT sites, in order to gain the market share. Providing the extra benefits to
AD’s of these areas will increase the market activity of the Vodafone in the market.
If the company will carry on good work of the penetration into these rural markets and enhance it by
considering the recommendations made above in the report then it can pace up the success of LUT
penetration. Through its efforts of promotion and penetration it will surely become the first preference
of every customer and retailers in these LUT sites.

Evidences
Every day I was doing visibility activity in the market by sticking posters and also canopy activity
through which exciting offers were given in order to get new subscribers and also port in numbers of
other network.

References
 http://www.vodafone.in/about-us/home [viewed 02/08/2016]
 http://www.vodafone.in/_layouts/15/images/consumer/corporate_governance/pdfs/Voda
fone%20India_Limited_ANNUAL_REPORT_31March2015.pdf

Lower Utilisation Project Vodafone vandana

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