Page 0 of 79Summer Training Project ReportMERA GAON MERA DESH2010Vodafone Essar Company9/20/2010
Page 1 of 79Summer Training Project ReportOnTo study the rural promotional and penetration activities of Vodafone underits MGMD (Mera Gaon Mera Desh) projectSubmitted in Partial Fulfillment for the Award of theDegree of Master in Business Administration 2009-2011Under the Guidance of: Submitted By:Department of ManagementState University.
Page 2 of 79STUDENT DECLARATIONThis is to certify that I have completed the Summer Project titled ―To study the rural promotionalAnd penetration activities of Vodafone under its MGMD (Mera Gaon Mera Desh) project‖ inVodafone Essar Digilink Limited (A Vodafone Essar Company). This is an original piece ofwork & I have not submitted it earlier elsewhere.Date: Signature :Place: Name :University Enrollment No :
Page 3 of 79CERTIFICATE FROM THE INSTITUTE GUIDEThis is to certify that the summer project titled ―To study the rural promotional and penetrationactivities of Vodafone under its MGMD (Mera Gaon Mera Desh) project‖ is an academic workdone in the partial fulfillment of the requirement for the award of the degree of Master ofBusiness Administration from, State University, under my guidance & direction.To the best of my knowledge and belief the data & information presented by him in the projecthas not been submitted earlier.Signature :Name of the Faculty :Designation :
Page 4 of 79ACKNOWLEDGEMENTI am extremely thankful to Mr. Mehndiratta; Zonal prepaid Head of Zone-1 Haryana who gaveme this opportunity to undertake this project. Without his directions and permissions I could nothave undertaken this project.I would like to thank the Relationship Managers Mr. Chibbar and Mr. Sharma, for their time totime guidance and support; it was of great help in knowing the whole process and background ofthis project.I would also like to thank all the M.Ds, A.Ds, P.S.Rs, D.S.Es and other staff I have worked with,for their cooperation and support.In the end I would like to thank my Project guide Ms. Bharti for giving remarkablecontributions and help in making this Project report and also for throwing a good insight at thepractical aspect.
Page 5 of 79EXECUTIVE SUMMARYThis project is based on telecom sector as the telecom sector is growing at a very good pace. Thetelecom company where I did my summer internship project is VODAFONE. The reason behindselecting Vodafone is its various schemes in product & service category & also its future policieswhere the company is coming out with lots of new & affordable schemes for its customers.Vodafone is a UK based company & has presence all over the world. The company was startedin the mid 70‘s & since then it has never looked back. The products & services offered byVodafone are of a very high quality & also at affordable rates. They have various plans forvarious customers depending on the status of the customers.Vodafone has various product categories ranging from internet, mobile phones, headsets &headphones & many more. In the service category it has telecom services and internet serviceswhich include broadband internet & PC internet services. Vodafone also came out with cellphones for the poor which were a part of their social responsibility toward the poor class peopleof the society. The phones were available in the range of Rs. 750 - Rs.1500 which was one of thesuccessful strategies of Vodafone.According to the June 2010 data VODAFONE Essar‘s market share is 23.89% and is just afterBharti with 29.92%.This report is based on the collective work of two months on a project called MERA GAONMERA DESH, where we did our research on the MFS (Mera Gaon Mera Desh focus sites) toincrease our subscription rate. During this period we visited these sites and villages which comeunder these sites and got response from the retailers and shopkeepers there, regarding theirexperience with Vodafone as a user and selling our products there and for promoting theVodafone.
Page 6 of 79Among those whose response was taken includes Kiryana shops, medical stores, mobile repairshops, std/pco , tailor/parlors , etc. Random stratified sampling method was considered to be bestsuited to fulfill the project. A structured questionnaire was constructed in order to measure theresponses of respondents on suitable scale. The data of sites was given by Vodafone and theprimary data collection from retailers was done through personal visits.Apart from this questionnaire our main task was to tell them the benefits of selling recharges andsolve their queries and to convert them in our UEOs (Unique E-top Outlets) and UAOs (UniqueActivation Outlets) by filling their ACT forms and providing them with Recharge coupons andE-top sim. Also to give them posters and banners for promotion and advertisement in the formof new outlet kit.
Page 7 of 79List of Tables: Page No.Table-2.01 History of cellular telephony in India. 14Table-2.02 Vodafone‘s People Strategy. 29Table-4.01 Types of outlets visited. 48Table-4.02 No of Vodafone users 49Table-4.03 Experience with Vodafone 50Table-4.04 Reason for experience 51Table-4.05 Customer care service experience 52Table-4.06 Experience of roaming facilities 53Table-4.07 Knowledge about Vodafone Thank you card 54Table-4.08 Selling recharge coupons and E-top values 55Table-4.09 Companies people selling 56Table-4.10 Idea about Telecom Business 57Table-4.11 Interest in selling Vodafone 58Table-4.12 Reasons for not selling 59Table-4.13 Want to sell coupons and E-top values 60Table-4.14 Want to sell new sim 61Table-4.15 Reasons for not selling 62Table-A Biswamil Non- etop retailers 79Table-B Biswamil E-top retailers 80Table-C Gannaur E-top retailers 81List of Charts: Page No.Chart-2.01 History of telecom in India 15Chart-2.02 GSM players in India 16Chart-2.03 CDMA players in India 17Chart-2.04 World Economic Pyramid 34Chart-4.01 Type of outlets 48Chart-4.02 Vodafone Users 49Chart-4.03 Experience with Vodafone 50Chart-4.04 Reason for experience 51Chart-4.05 Customer care service 52Chart-4.06 Roaming facilities 53Chart-4.07 Vodafone thank you card 54Chart-4.08 Telecom business selling recharges 55Chart-4.09 Idea about telecom business 57Chart-4.10 Interested in selling Vodafone 58Chart-4.11 Want to sell Vodafone coupons 60Chart-4.12 Want to sell new sim 61
Page 8 of 79Table of Contents: Page no.Chapter 1 - Introduction1.1 - Purpose of the Project. 81.2 - Objective. 91.3 - Scope of the Research 10Chapter 2 - Company Profile2.1 - About the Company 122.2 - About the Topic 31Chapter 3 - Methodology3.1 - Research Design 373.1.1 - Type of Research 383.1.2 - Population/Universe 383.1.3 - Sample Size 413.1.4 - Sampling Technique 413.2 - Data Collection3.2.1 - Primary and Secondary data 423.2.2 - Instruments for Data Collection 423.2.3 - Method for Data Collection 43Chapter 4 - Data Analysis 45Chapter 5 - Findings and their Implications 62Chapter 6 - Limitations of the Study 65Chapter 7 - Recommendations / Suggestions 67Chapter 8 - Conclusions 70 Bibliography 72Annexure.1. Questionnaire. 742. New outlet data. 77
Page 10 of 79CHAPTER – 1INTRODUCTION1.1 Purpose of the project.The basic purpose of the project MGMD is to focus on the areas where the subscription baseor the customer base is low. All the customers and retailers were tracked on the basis of CSI(Cell Site Intelligence).Through this project company‘s motive is to increase the customer base in these areas overtheir competitors by opening new outlets in these areas who can sell Vodafone recharges andnew connections.Another purpose of this project is to open outlets everywhere so that customer will not faceproblems in finding Vodafone recharge and he can get his mobile recharged in 5 min.anywhere.By visiting the MGMD villages personally, importance was given to get the retailer‘sresponse as a user about Vodafone services and to make them start selling Vodafonerecharges there on commission basis, so that subscription rate will increase there and thecustomers nearby will not face problems in getting recharges and new connections and theywill not be any need for them to go far places to get their phones recharged.Also through this awareness about TYC( Thank you card) was done so that they will visitVodafone stores and mini stores and can get free gifts from there.Pamphlet distribution at main locations in villages through van.
Page 11 of 791.2 Objective:The objective of the project and research is to know about the view of retailers in thevillages as a user about the Vodafone and satisfy their queries and make themunderstand the telecom business of selling the Recharge coupons, Values and Newconnections for the Characteristics low income and rural consumers.With the help of the questionnaire we were able to know their status and theirproblems in selling our recharges. With the help of our understanding and company‘spolicies and information we solved their queries and convert many of them into ouroutlets.Position, promotion, price and placement of service product.To increase our village wise DPL i.e., Dealer per lakh. This shows the presence ofVodafone in the market and convenience for users.Another objective of this project was to do activities to convert Competitioncustomer to Vodafone (BSNL/AIRTEL). For this purpose TYC promotion and brandpromotion, for its customer focused activities, was done.
Page 12 of 791.3 Scope of Research:Since, the telephony has started in India, the telecom companies were concentrated toprovide the best of their services in the big cities of India and this was the reason they weremore on increasing their subscriber base in cities. But now due to increasing competition,companies are searching for new ways to increase their business and market share. For thisVodafone has come up with a plan to penetrate the rural area and villages, where it canincrease its subscriber base and can promote itself with various schemes specially for therural people.Though this report is totally devoted to the work done for the Vodafone, but it can work forother companies as well if they want to penetrate the rural villages and want to increase theirsubscriber base there.To penetrate the market of rural villages companies will have to set up their outlets to sellthem and for that they will have to know the lifestyle and issues among retailers in ruralabout their understanding of this field.So the scope of this research is for all telecom players. The questionnaire is designed toknow about the people of villages and their problems and issues in starting telecom businesswhich can be of help for other telecom companies as well.In order to cater to rural consumers, it is important to understand and respect their livelihoodand for promoting yourself activities like pamphlet distribution, Muniyadi, TYCdistribution, personal Visits, direct and easy interaction , etc all are part of rural marketingwhich have scope in other company‘s promotion as well.
Page 14 of 79CHAPTER-2COMPANY PROFILE2.1 About the Company.Indian Telecommunication IndustryThe Indian telecommunications has been zooming up the growth curve at a feverish pace,emerging as one of the key sectors responsible for Indias resurgent economic growth.India has surpassed US to become the second largest wireless network in the world with asubscriber base of over 391.76 million, according to the Annual report of Telecom RegulatoryAuthority of India (TRAI).Table 2.01 History of Cellular Telephony in IndiaYEAR EVENT1992 Telecommunication sector in India liberalized to bridge the gap throughgovernment spending & to provide additional resources for the nation‘s telecomtarget. Private sector allowed participating1993 The telecom industry gets an annual foreign investment Rs 20.6 million1994 License for providing cellular mobile services granted by the government of Indiafor the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobileservice to be duopoly (i.e. not more than two cellular mobile operators could belicensed in each telecom circle), under a fixed license fee regime for 10 years.1995 19 more telecom circles get mobile licenses1995(aug) Kolkata became the first metro to have a cellular network1997 Telecom Regulatory Authority of India is set up1998 Annual foreign investment in telecom stands at Rs 17,756.4 million1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million1999 Tariff rebalancing exercise gets initiated1999(Mar) National Telecom Policy is announced2000(Jan) FDI inflow drops further down to Rs 918 million coming2000(June) Amendment of TRAI Act
Page 15 of 79The booming domestic telecom market has been attracting accelerating amount of investment.The cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 6.14billion. In fact, the surge in mobile services market is likely to see huge amount of investmentimplying a mobile in the hands of every second person in the country.Among the recent nine bidders for 3g auctions, Vodafone accounts for the highest FDI at 70.9%,which includes Vodafone‘s investments and some of Essar‘s own foreign investments. Thesecond largest FDI is in Aircel with its foreign investor — Global Communication ServicesHolding (GCSH) owning 64.9%. Deccan Digital, which owes 34.9%, is, in turn, also held 25%by GCSH.Graph No.2.01
Page 16 of 79Government has taken many proactive initiatives which have provided a framework for the rapidgrowth of the telecom industryChart No.2.01• Opening the industry for private sector participation.• 100 per cent FDI is permitted in telecom equipment manufacturing through theautomatic route.• FDI ceiling in telecom services has been raised to 74 per cent.• Establishment of an independent regulator - the Telecom Regulatory Authority ofIndia (TRAI)-for the telecom sector.• Introduction of a Unified access licensing regime for telecom services on a pan-India basis.• Implementation of New Telecom Policy (NTP99).• Introduction of Calling Party Pay (CPP) regime and lowering of access deficitcoupled with introduction of revenue share regime in ADC.• Introduction of Mobile Number Portability in a phased manner, starting with thefourth quarter of 2008.• Allowing service providers to share active infrastructure.
Page 17 of 79In GSM services major players are:Chart No. 2.02In CDMA major players are:Chart No. 2.03
Page 18 of 79ABOUT VODAFONEKey peopleChairman : Sir John BondCEO : Vittorio ColaoDeputy Chairman : John BuchananCFO : Andy HalfordDURING 1980’sVodafone made the UKs first mobile call at a few minutes past midnight on 1stJanuary 1985.Within fifteen years, the network was the largest company in Europe and the largest of its kindanywhere in the world. By the turn of the century, almost every second UK citizen had a mobile– and a third of them were connected to Vodafone.The Vodafone story is one of investment, innovation and award-winning customer service.Above all, it‘s one of growth and the ability to deliver the tremendous benefits of mobilecommunications, not just in the UK but worldwide.1982• The Racal electronics group wins its bid for the private sector UK cellular license. It sets up theRacal telecoms division and names the new network ‗Vodafone‘ to reflect the provision of voiceand data services over mobile phones. Based in Newbury, the company has less than 50employees, all in one building.
Page 19 of 791985• The Vodafone analogue network is the first cellular network to launch in the UK, and the firstcall is made from St Katherine‘s dock in London to Newbury on 1 January 1985.1987• Vodafone is recognized as the largest mobile network in the world.• Vodata is created as the ‗voice and data‘ business to develop and market Vodafone recall, thevoicemail service.• Vodapage is launched, providing a paging network that covers 80% of the UK population.1988• Racal telecomm plc floats on the London and New York stock exchanges.1989• Paknet is formed as a joint venture between Racal telecom and cable & wirelessVODAFONE DURING 1990’S:1991• Racal and Vodafone demerge. And the Vodafone group is listed as an independent company onthe London and New York stock exchanges.• Vodafone and telecom Finland make the world‘s first international roaming call.• Vodafone launches its digital (GSM) mobile phone service – the first in the UK.1992• Vodafone and telecom Finland sign the worlds first international GSM roaming agreement.1993• Vodafone group international is formed to acquire licenses and supervise overseas interests.• Vodafone opens its first high street store.1994• Vodata is the first network operator in the UK to launch data, fax and sms services over thedigital network.• Vodafone joins the global star consortium to develop and launch a low earth orbiting satellitemobile phone service.
Page 20 of 791996• Vodafone is the first network operator in the UK to launch a pre-pay analogue package.• Per second billing on the digital network is introduced, as well as options to buy ‗bundled‘minutes and make off-peak local calls to landlines.1997• Chris gent succeeds Sir Gerald Whent as chief executive officer of Vodafone group plc.1999• Vodafone air touch plc is created as a result of a successful merger between Vodafone groupplc and air touch communications Inc.• On 5 January Vodafone connects the five million customers in the UK.VODAFONE DURING 2000’S:2000• The acquisition of Mannesmann Ag almost doubles the size of the Vodafone group making itthe largest mobile telecommunications company and one of the top ten companies, by marketcapitalization, in the world.• Vizzavi is launched, a 50/50 joint venture between Vodafone air touch and vivendinet todeliver a multi-access branded internet portal for Europe.• Vodafone acquires the largest available 3g license in the UK. In parallel with the developmentof 3g, Vodafone announces its intention to offer GPRS (general packet radio service) to UKcorporate customers.• The global star satellite communications service is launched in the UK.
Page 21 of 792001• Vodafone introduces instant messaging to its networks.• Vodafone makes the world‘s first 3g roaming call between Spain and Japan.2002• Vodafone trials its global mobile payment system in the UK Italy and Germany.• Vodafone launches the first commercial European GPRS roaming service.• The Vodafone group foundation is launched. The group and its subsidiaries plan to contribute£20 million to community programs, guided by the group social investment policy.• Vodafone launches Vodafone live! & mobile office, two new consumer and businesspropositions.Arun Sarin was selected to succeed Sir Christopher Gent as Chief Executive of Vodafone groupplc.2003• Vodafone live! attracts 1 million customers in its first six months.• Orange, telefonica moviles, t-mobile, and Vodafone form a new association to driveinteroperable mobile payments.2004• Vodafone launches its first 3g service in Europe with the Vodafone mobile connect 3g/gprsdata card.Vodafone live! With 3g is launched in 13 markets.2005• Vodafone simply is launched, giving customers new, easy-to-use voice and text services.• Vodafone introduces passport, a new voice roaming price plan.2006• The number of Vodafone live! Customers with 3g reach 10 million
Page 22 of 79VODAFONE ESSARMD and CEO Vodafone Essar : Marten Pieters.Mission & Vision―To enrich our customers lives through the unique power of mobile communication‖Also its vision is to be the world‘s mobile communication leader – enriching customers‘ lives,helping individuals, businesses and communities more connected in a mobile world.Passion for CustomersOur customers have chosen to trust us. In return, we must strive to anticipate and understandtheir needs and delight them with our service. We value our customers above everything else andaspire to make their lives richer, more fulfilled and more connected.We must always listen and respond to each of our customers. We will strive to delight ourcustomers, anticipating their needs and delivering.Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16telecom circles in India. Despite the official name being Vodafone Essar, its products are simplybranded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughoutIndia and is especially strong in the major metros.Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSMtechnology, offering voice and data services in 16 of the countrys 23 license areas.OwnershipVodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%.On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li KaShing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, HindujaGroup, and Essar Group, which is the owner of the remaining 33%. The whole company wasvalued at USD 18.8 billion. The transaction closed on 8 May 2007.
Page 23 of 79Previous BrandsInitially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE..... InDecember 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating itsservices under a single identity. The Company entered into agreement with NTT DoCoMo tolaunch i-mode mobile Internet service in India during 2007.The company used to be named Hutchison Essar, reflecting the name of its previous owner,Hutchison. However, the brand was marketed as Hutch. After getting the necessary governmentapprovals with regards to the acquisition of a majority by the Vodafone Group, the company wasrebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on20 September 2007.Vodafone Essar spent somewhere in the region of Rs 250 crores on its high-profile transition.Along with the transition, cheap cell phones have been launched in the Indian market under theVodafone brand.Growth of Hutchison EssarIn 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994was awarded a licence to provide mobile telecommunications services in Mumbai (formerlyBombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singhof Max still holds 12% in company.By the time of Hutchison Telecoms Initial Public Offering in 2004, Hutchison Whampoa hadacquired interests in six mobile telecommunications operators providing service in 13 of Indias23 license areas and following the completion of the acquisition of BPL that number increased to16. In 2006, it announced the acquisition of a company that held license applications for theseven remaining license areas.In a country growing as fast as India, a strategic and well managed business plan is critical tosuccess. Initially, the company grew its business in the largest wireless markets in India - incities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to
Page 24 of 79establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customerswhich helped Hutchison Essar to consistently generate a higher Average Revenue per User("ARPU") than its competitors. By adopting this focused growth plan, it was able to establishleading positions in Indias largest markets providing the resources to expand its footprintnationwide.In February 2007, Hutchison Telecom announced that it had entered into a binding agreementwith a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loaninterests in Hutchison Essar Limited for a total cash consideration (before costs, expenses andinterests) of approximately US$11.1 billion or HK$87 billion.Hutch was often praised for its award winning advertisements which all follow a clean,minimalist look. A recurrent theme is that its message Hello stands out visibly though it usesonly white letters on red background. Another recent successful ad campaign in 2003 featured apug named ―Cheeka‖ following a boy around in unlikely places, with the tagline, Wherever yougo, our network follows. The simple yet powerful advertisement campaigns won it manyadmirers.1992: Hutchison Whampoa and Max Group established Hutchison Max2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets throughESSAR acquisition2001: Won auction for licenses to operate GSM services in Karnataka, Andhra Pradeshand Chennai.2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajasthan,Uttar Pradesh East and Haryana telecom circles and renamed it under Hutchbrand.2004: Launched in three additional telecom circles of India namely Punjab, UttarPradesh West and West Bengal‘.2005: Acquired BPL, another mobile service provider in India.
Page 25 of 792008: Vodafone acquired the Licenses in remaining 7 circles and has started its pendingoperations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya Nagar,Bhopal as well as in Orissa, Assam, North East and Bihar2008: Vodafone launched the Apple i-Phone 3G to be used on its 17 circle 2.75G network.2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card IndustrySecurity Standard (PCI DSS) certification for its Mumbai operations and launches unlimitedSMS offer in Mumbai2010: Vodafone has crossed the landmark of 100 million subscribers in India. With thisachievement, Vodafone Essar becomes world‘s 5th operator with 100 million customers in asingle country. Vodafone has also increased its market share to strengthen its position as India‘ssecond largest operator in terms of revenue.―This is a significant achievement for us and reflects the trust customers have bestowed on thecompany,‖ said Marten Pieters, Managing Director and CEO, Vodafone Essar, ―In the past threeyears, we have invested over Rs. 20,000 crores to expand our operations to service customers inIndia. We will utilize our global and Indian experience to deliver the best products and servicesto our customers.‖Starting with about 28 million subscribers across 16 circles in May 2007, Vodafone Essar todayhas 100 million customers and its footprint has extended to all the 23 circles in the country. Thisjourney is a testimony of Vodafone‘s success in a highly competitive and price sensitive market.Around 60% of the Company‘s customer additions now come from upcountry areas. With adistribution reach of about 1.2 million outlets, Vodafone is well-geared to serve customers in theremotest corners of India.
Page 26 of 79PRESENCEVodafone currently has equity interests in 31 countries across five continents and around 44partner networks worldwide.LOGOA new visual identity—from the deep pink logo of Hutchison-Essar to Vodafone‘s trademarkdeep red speech mark introduced in 1998.Advertisement:The inaugural TV commercial showed the trademark pug (minus the boy) moving out of a pinkkennel into a red one. An energetic version of Hutch‘s signature ‗You and I‘ tune played towardsthe end, as the super concluded, ‗Change is good. Hutch is now Vodafone‘. There were fourmore commercials featuring Hutch‘s animated boy and girl, introducing the new brand‘s logo toconsumers.Vodafone put in close to Rs 150 crores into the first phase of the rebranding exercise—with Rs60 crore in mass media and another Rs 90 crores in retail activities.
Page 27 of 79In the second phase, Vodafone ushered in its global strap line—―Make the most of now‖, whichreplaced ―How are you?‖ in 2001. By then it was apparent, the boy-and-pug chapter would soonbe over. In 2008, Vodafone used the platform of cricket when it unveiled the ‗Happy to Help‘series during the first season of the Indian Premier League (IPL).This season the Zoo zoos are all the rage. These characters have virtually hijacked the onlinemedia as well as television—to convey a value added service (VAS) offering in each of the newcommercials.In Indian scenario when other major telecom service providers are using celebrities( Airtel-Shahrukh Khan, BSNL-Deepika Padukone, Aircel-Mahendra Singh Dhoni, Idea-Abhishek Bachchan) as their brand ambassadors, Vodafone is standing out proudly withZoozoos and pug as successful ad campaign.Products and services in India:Average cost of calls: 2 US cents per minuteAverage revenue per customer: US$6.4 per month853,039 points of sale, covering 65% of the populationWith more than 3 million Vodafone-branded, affordable handsets sold in 2008/09,Vodafone ranks among the top five handset brands in India.
Page 28 of 79Brand and customer communicationsIn the Brand Z most powerful brands ranking: Ranked 11th globally.In telecom industry it proudly stands as world no. 2 after ChinaAnd no. 2 GSM service provider in India after Airtel.DistributionDirect distribution-Number of directly owned stores – 1150+Vodafone directly owns and manages over 1,150 stores. These stores sell services to newcustomers, renew or upgrade services for existing customers, and in many cases also providecustomer support.A standard store format, which was tested in 2006, was rolled out in 11 markets during the 2008financial year. All stores in India were rebranded as Vodafone and over 40 stores wererefurbished to the Group‘s standard format.The Group also has over 6,500 Vodafone branded stores, which sell Vodafone products andservices exclusively, by way of franchise and exclusive dealer arrangements.The internet is a key channel to promote and sell Vodafone‘s products and services and toprovide customers with an easy, user friendly and accessible way to manage their Vodafoneservices and access support. Additionally, in most operating companies, sales forces are in placeto sell directly to business customers and some consumer segments.Philosophy- OUR PEOPLEVodafone rely on its people – their enthusiasm, their talent, their commitment – to maintain andbuild on the success of our business, even more so in today‘s competitive market. It depends onpeople to deliver excellent service to its customers.Vodafone believe that the better experience our people have at Vodafone, the better service theywill give our customers. Vodafone Group employs approximately 71,000 people around theworld.
Page 29 of 79Vodafone want to enhance its reputation as an employer that provides excellent developmentopportunities, equipping employees with the skills and experience they need to help Vodafonecompete successfully.It aim to ensure that all its working environments are inclusive, safe, promote wellbeing, treatpeople with respect, and engage employees, and offer attractive incentives and opportunities.Vodafone People StrategyThe Vodafone People Strategy sets out a clear statement of its commitments to employees andexpectations of them in six key areas.Table No. 2.02
Page 30 of 79VODAFONE’S MARKETING MIXA longer term marketing strategy is underpinned by careful planning and a successful marketingmix. The marketing mix is a combination of many features that can be represented by the fourPs.product - features and benefits of a good or serviceplace - where the good or service can be boughtprice - the cost of a good or servicePromotion - how customers are made aware of a good or service.ProductA product with many different features provides customers with opportunities to chat,play games, send and receive pictures, change ring tones, receive information abouttravel and sporting events, obtain billing information - and soon view video clips andsend video messages.Vodafone live! Provides on-the-move information services.PlaceVodafone UK operates over 300 of its own stores.It also sells through independent retailers e.g. Car phone Warehouse.Customers are able to see and handle products they are considering buying.People are on hand to ensure customers needs are matched with the right product and toexplain the different options available.PriceVodafone wants to make its services accessible to as many people as possible: from theyoung, through apprentices and high powered business executives, to the more matureusers.It offers various pricing structures to suit different customer groups.Monthly price plans are available as well as prepay options. Phone users can top up theirphone on line.
Page 31 of 79Vodafone UK gives NECTAR reward points for every £1 spent on calls, text messages,picture messages and ring tones.PromotionVodafone works with icons such as David Beckham to communicate its brand values.Above the lineAdvertising on TV, on billboards, in magazines and in other media outlets reaches largeaudiences and spreads the brand image and the message very effectively. This is knownas above the line promotion.Below the lineStores have special offers, promotions and point of sale posters to attract those inside thestores to buy.Vodafones stores, its products and its staff all project the brand image.Vodafone actively develops good public relations by sending press releases to nationalnewspapers and magazines to explain new products and ideas.Vodafones marketing strategyVodafones marketing aim in the UK is to retain market leadership.Vodafones strategy is product-led; the company is continually developing new products andservices which utilise the latest technological advances.However, as consumers become increasingly sophisticated users of modern mobile technology,they make new demands and seek added value through product improvements. Consumers arebecoming more demanding and suppliers have to listen. Vodafone must feed this back into itsproduct strategy.In the UK, the mobile phone market has approached maturity in a very short space of time,particularly with young people. To keep its leading edge, Vodafone is continually looking to addvalue to the services it provides and to the packages it offers to customers.Soon, within the UK, there will be few new customers available. So the challenge is to provideadded value services and competitive charges to existing customers who are becoming moresophisticated and demanding.
Page 32 of 79For example, young people think hard about which mobile phone to buy. In their search for thewidest range of appropriate services and the best value for money, young people in particularexamine catalogues, surf the Internet and study what their friends have bought. Trying to sell tothem is tough.In order to retain market leadership, Vodafone has established a set of marketing objectives.These are to:Obtain new customersKeep the customers it already hasIntroduce new technologies and services (eg text messaging, WAP)Continue to develop the Vodafone brand.Vodafone is achieving these objectives by continually updating the range of phones and servicesoffered to keep ahead of its competitors. Vodafone also communicates regularly with itscustomers to keep them well informed of the benefits of all Vodafone products.
Page 33 of 792.2 ABOUT “MERA GAON MERA DESH” PROJECTThe new mantra for the Telecom sector“ROTI, KAPDA, MAKAAN AUR MOBILE”Market /Products Present NewPresent Prepaid/Post-paid services Wi-max,3GNew Rural Sector M2M services,WiBroIn order to diversify its current market portfolio, Vodafone is launching a global Machine toMachine (M2M) service platform for helping companies to deploy and manage large, wirelessM2M projects for applications in customer service enhancement and central control andautomation of projects. In the Indian context, M2M is an untapped sector with enormouspotential for growth. WiBRO (Wireless Broadband) has the capacity to overcome data rate oflimitation of mobile phones by providing a staggering 30 to 50 MB/s speed. As in the case ofM2M platforms, WiBRO is a very promising market in India. Providing these two services inIndia would open new avenues of growth for Vodafone and would help it diversify into differentmarket verticals.With this diversification and for more market penetration in the rural areas Vodafone has starteda new project ―Mera Gaon Mera Desh‖. Since more and more companies are entering in thetelecom market of India so it‘s becoming difficult for the companies to just sit and eat the fruits.It is very difficult already for the existing players as profit margins are reducing with increase innumber of players. The profits have reduced due to the slashing of call rates. However, theprofits realized are due to increasing usage rates .Stiff competition is giving rise to fear amongcompanies of losing the present customers so company has decided, with more service tocustomers, to enter into the rural areas where the subscription rate is low and focus its activitieson servicing this sector and increasing subscriber rate.
Page 34 of 79MARKET DEVELOPMENTIndia is still an agrarian economy and over 60 percent of its population still dwells in rural areas.According to recently conducted surveys, statistics showed that 45% of the overall telecommsector growth is to come from the rural sector. A major chunk of Vodafone‘s revenue is stillgenerated from tier 1 and tier 2 cities. This leads Vodafone to place further focus on ruralpenetration so as to create economies of scale as well as the top line growth of revenues.Development of infrastructure in rural areas is a bottleneck due to the cost factor associated withit. Project MOST (Mobile Operators Shared Towers) by COAI was initiated in order to reducethese heavy costs by sharing infrastructure between the service providers, hence resulting inbetter coverage and quality. Optimal rural penetration can be achieved by taking into account theeconomic environment prevailing in the rural sector. This would encompass the socio economicfactors and would hence provide a more regional focus to the advertising and promotionalstrategies in order to establish a good connect with the rural customers.The Census of India defines rural explicitly. Areas with clear surveyed boundaries not having amunicipality, corporation or board, with density of population not more than 400 per km sq. andwith at least 75% of the male working population engaged in agriculture and allied activitiesqualify as rural.Keeping this in mind, looking at strategic first mover advantages, company hasstarted the project MGMD. The company has identified areas where subscriber base rate is verylow. So to increase that rate in these areas company has come up with some plans. These sitesare identified by the technical department by measuring the traffic on BTS (Trans receiverstations), which gives figures about usage in the area. So the low user sites or MFS(MGMD focus sites) were given to me where I had to go with the staff and do the promotion andother activities.
Page 35 of 79THE BOTTOM OF THE PYRAMID APPROACHThe bottom of the pyramid concept was given by Management Guru C. K. Prahalad; Accordingto this concept 4 Billion people living under $2 per day comes under this category. Benefits ofBottom of Pyramid-There is money at the bottom of pyramid: it is a viable market.Access to this market requires unconventional approaches and these will be fruitful inlong run.The bottom of the pyramid consumer is very much open towards advanced technologies.To cater this category of the pyramid companies are coming with their new ideas Viz.,E-Choupal of ITC and Project Shakti of HUL are some of the famous projects by FMCGcompanies in rural areas. This MGMD project of Vodafone is some of the like project in theTelecom Sector.Chart No. 2.04
Page 36 of 79MGMD Focus Sites Classification:Rural/Urban Classification.Distance from AD (Associate Distributor) town Pass (0 – 3 km), Beech (3-7 km),and Door (7+km).Traffic on the sites Low, Medium, and High.Subscriber base of the site.The main features of this project are:All the customers and retailers would be tracked on the basis of CSI(Cell Sites intelligence).For any retailer who has done 300+ tertiary (E-top recharge) would be classified as UEO.UEO (Unique E-top Outlet) – Village wise DPL( Dealer Per Lakh) planning.Dosti : Tie up of small Retailer with MERC( Mobile E-top Recharge) retailer.Badli : Activity to convert Competition customer to Vodafone ( BSNL/AIRTEL).KIRANA: To Convert all kirana Store of MFS sites into E-top Up outlet.Products:Vodafone has launched a new SKU 50 which would have a retailer landing of Rs 24 andMRP of Rs.40.Vodafone have launched a special promotional offer for the entire customer base of theFOCUS Site‘s wherein they would get Talk time or other benefits through 121best offer.The Activities for this project include:TYC Camps in MFS villages.Van Activity in MFS villages.Paper Insert. (Mentioning Retailer Shop).Cable ADD. ( Mentioning Retailer Shop)Muniyadi in Villages with NETWORK Promotion.Pamphlets Distribution through CHOWKIDAR.
Page 37 of 79Support Required:Vodafone Garden Umbrella For promotion.Special POP (Posters, Banners etc) for Villages.STVs (Special tariff Vouchers) & NEW SKU (Stock Keeping Units) for Villages.Special Talk Time Schemes for BSNL customers.
Page 39 of 79CHARTER-3METHODOLOGYResearch Methodology is a highly intellectual Human activity used in the investigation of natureand matter and deals specifically with the manner in which the data is collected, analyzed andinterpreted.It‘s basically the methods you intend to adopt to gather information in pursuit of answers to theresearch questions.3.1 Research Design.Exploratory Research - Exploratory research is undertaken when few or no previous studiesexist. The aim is to look for patterns, hypotheses or ideas that can be tested and will form the basisfor further research. Typical research techniques would include case studies, observation andreviews of previous related studies and data.Descriptive Research- Descriptive research can be used to identify and classify the elements orcharacteristics of the subject, e.g. number of days lost because of industrial action. QuantitativeTechniques are often used to collect, analyze and summarize data.Analytical Research- Analytical research often extends the Descriptive approach to suggest orexplain why or how something is happening, e.g. underlying causes of industrial action. Animportant feature of this type of research is in locating and identifying the different factors (orvariables) involved.Predictive Research- The aim of predictive research is to speculate intelligently on futurepossibilities, based on close analysis of available evidence of cause and effect. e.g., PredictingWhen and where future industrial action might take place.
Page 40 of 79Our Research Design:Descriptive Research design has been followed for this marketing research. As in descriptiveresearch proper classification or identification of the elements and characteristics of the subjectis done.Here as we have to identify the basic reasons for the situations studied, we opt for descriptiveresearch.3.1.1 Type of ResearchHere our research is more of quantitative type but in some issues pertaining in the village wetook the qualitative angle as well in this research. So our research is a combination of both.The emphasis of Quantitative research is collecting and analyzing numerical data. It is highlydetailed and structured and results can be easily collated and presented statistically.On the other hand the Qualitative research is more subjective in nature and involves examiningand reflecting on the less tangible aspects of the research like feelings, perception etc.Also the research is an APPLIED Research as the objective is to apply the findings to thesituation here.3.1.2 Population/Universe:In research terminology Universe or population means an entire set, objects or events of concernto a research study, from which a sample is drawn. Or in other words, population is thetheoretically aggregation of the elements in study.Here in this project data of the MGMD sites is provided by the company and we identified someconventional and unconventional outlets present in the areas of our sites.We covered these outlets and get our questionnaires filled and did our promotional activitiesthere. Our universe was mainly in the rural areas of Haryana as the MFS (MGMD Focus Siteswere situated in rural areas only).
Page 41 of 79The universe includes:Conventional Outlets• Telecom• STD / ISD• Chemist• Petrol pumps• Photo Shops• Pan Bidi Shop• General, Kirana• Gift shops• Music Shops & DVD Library• Cyber CafésUnconventional Outlets• Estate Agents• Opticians• Milk Booths• Ice Cream Shops• Hardware & Auto Spares Shop• Beauty Parlours & Tailor Shop• Book shops & Wine shops• College, Office canteens & Eatery• Cinema halls• Hospitals• Garages• Security Guards• Public Toilet (Tourist Areas).
Page 43 of 793.1.3 Sample Size:A sample is a sub-set of individuals selected for study from among people or objects within adefined population. The sample size of our research was all the shops in the MGMD sites areas.Since our main aim was to open our outlets in the village and to do all promotional activities, sowe decided to cover all the available shops there. This comes out to be 150. This becomes oursample size.3.1.4 Sampling Technique:Sampling is the process of selecting a number of individuals for the study. Sampling enables theresearcher to study a relatively small number of units in place of target population, and to obtaindata that are representative of the whole target population.Sample Unit: All the retail shops in the MGMD sites were taken as sample units.Sample Procedure: Since the sites were provided to us so we visited shops there and tried tocover as many shops as possible. And the selection was Random.
Page 44 of 793.2 Data Collection:The data collection is an important part of research. Without data any research is impossible. Thedata is of two types‘ Primary data and Secondary data.3.2.1 Primary and Secondary Data:Primary Data: It is the data which is never gathered before. The data was collected byinteractions with the respondents. Primary Data collection is an important part of research; heredata collection was done through Questionnaire and interviews.Secondary Data: It is the data which is collected already in the past; it can be collected withthe help of secondary source like internet, books, journals, articles etc. The data regardingMGMD focus sites, their population, already running ueo, etc was provided to me fromcompany. Also during drafting of report all information was gathered from articles aboutcompany in magazines and from websites. As Vodafone is world renowned company so it wasnot tough to gather information about this company.3.2.2 Instruments for Data Collection.One of the most common and famous instrument for data collection is Questionnaire. Thequestionnaire was designed so that we can know about their knowledge of telecom particularlyabout Vodafone and about starting as our outlet. We also collected information regarding thehurdles and issues they are facing in starting this business and what they think about Vodafone asa user.Also with questionnaire another instrument used for this research was interview as-The low level of respondents, therefore face to face interviews were found suitable to getreliable information.The interview schedule was used because the researcher wanted to collect data withprobing questions.Keeping the objective in mind the questions were designed. We use the interview tool toget their data and response.
Page 45 of 793.2.3 Method for Data Collection:The method used for data collection was face to face interaction and interviews. During thisproject period I visited the rural areas personally and get the data from them through personalinteraction.It was a great experience to talk directly with the villagers about their business and scope forVodafone‘s promotion and business there.
Page 47 of 79CHAPTER – 4DATA ANALYSISWe prepared a questionnaire to get the response of the retailers is the rural area sites. Here I amgoing to analyze this questionnaire with the help of Pie- charts. These pie-charts give the idea forvarious areas we have chosen as responses and their weightage can be seen easily.Here I am going to analyse each question one by one. And with the help of the understanding,which I got through personal visits, I am able to analyze these and can give probable thoughts ofthe villagers in statistical data form.These pie charts are of very useful as we can draw information from them which can be provedto be very valuable now or in future. Any company, who wants to enter in a rural area, wantsproper information available about that area in advance to form the strategies and this analysis isof great help for them.
Page 48 of 79Q.1 The type of outlet visited:Table No. 4.01Chart No. 4.01This pie-chart reveals that most of the shops visited in the villages were Kiryana store and therewere other non-conventional shops as well like parlors, tailor shops in others constituting 11.3%.Most of the shops which were converted into Vodafone outlet were the Kiryana shops, pan-bidishops, Mobile repair shops, chemist etc.Frequency Percent CumulativePercentValida) Kiryana store.b) Mobile / repair shop.c) STD/PCO shop.d) Chemist/Clinic.e) Tailor / Barber.f) Photo shop.g) Pan- Bidi shop.h) Other.TOTAL7510205531517150506.7220.127.116.111011.31005056.77073.376.778.788.7100
Page 49 of 79Q.2 Are you currently a Vodafone user?Table No. 4.02Frequency Percent CumulativePercentValidNoYesTOTAL30120150208010020100Chart No. 4.02When we asked them what connection they are using then we found that most of our respondentshopkeepers were using Vodafone services and replied positively for this question which is 80%of total respondents, it shows that Vodafone‘s subscriber base is increasing in rural areas andpeople are adopting its services.NOYESAre you currently a Vodafone user?
Page 50 of 79Q.3 what is your experience with Vodafone?Table No.4.03Frequency PercentCumulativePercentValid VerySatisfied105 70.0 70.0Satisfied30 20.0 90.0No opinion7 4.7 94.7Unsatisfied 8 5.3 100.0Total 150 100.0Chart No. 4.03For their satisfaction level about the services of Vodafone most replied positively as 70% were inthe category of very satisfied, 20% were satisfied with 4.7% didn‘t answer this question and 5.3%were not satisfied with the services. But majority that is 90% were satisfied.Very SatisfiedSatisfiedNo OpinionUnsatisfiedWhat is your experience with Vodafone?
Page 51 of 79Q.4 what is the reason for your this experience?(A) Is Network very good?Table No. 4.04Frequency PercentCumulativePercentValid yes 135 90.0 90.0No 15 10.0 100.0Total150 100.0Chart No. 4.04When asked about the Network of Vodafone there in their village, 90% said that network is verygood and they do not face any problem in network but 10% said that they face problems whiletalking and there is problem of network as in some places in the village roaming starts on theirphone and phone gets cut (Eg.Vpo-tanda).YesNo
Page 52 of 79(B) Is Customer Care Service Very good?Table No. 4.05Chart No. 4.05When asked about their experience with customer care service that majority i.e., 70% said thatthey are satisfied with the customer care service and all their queries herd and resolved but 30%were little complaining and said the services are not good and their problems are not resolvedproperly and balance gets deducted for services they had not activated.Frequency PercentValidPercentCumulativePercentValid yes 105 70.0 70.0 70.0No 45 30.0 30.0 100.0Total 150 100.0 100.0Yes 70%NO 30%
Page 53 of 79(C) Are Roaming Facilities Good?Table No. 4.06Chart No. 4.06For a question regarding roaming services most of the people i.e. 80% said that Vodafone‘snetwork in all India is very good and where ever they go the network is always very good andthey do not feel any problem in outside Haryana while 20% were complaining and said that inareas outside Haryana Vodafone is not that strong and also the charges should be low.Frequency PercentCumulativePercentValid yes 120 80.0 80.0No 30 20.0 100.0Total 150 100.0Yes 80%NO 20%
Page 54 of 79Q.5 Do you know about Vodafone’s Thank you card?Table No. 4.07Chart No. 4.07When asked about whether they know about Vodafone‘s Thank You Card coupon which theycan get from Vodafone store most people replied positively i.e. 76% said yes they know and getit every month while 24% said they do not know about this. It shows that Vodafone‘s promotionis good in rural areas where majority of people are aware about its TYC and as 24% are stillunaware so it has to promote its campaigns more.Frequency PercentCumulativePercentValid yes 114 76.0 76.0No36 24.0 100.0Total 150 100.0Do you know about Vodafone‘s Thank you card?YesNO
Page 55 of 79Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?Table No. 4.08Frequency Percent CumulativepercentValid * Only coupons*Only E-top value*Both*NoneTotal175812015011.33.35.48010011.314.620100Chart No. 4.08When asked about whether they know anything about telecom business and are they selling anytype of recharge than most of the shopkeepers said that they are not into any such rechargeselling (80%), while some were into coupons selling and e-top value selling. This made easier toopen our work there , as some recharge was already available and those people had someknowledge of this business.None 80%Only coupons 11.3%Both 5.3%Only E-top value 3.3%
Page 56 of 79(ii) If selling then of which companies?Table No. 4.09FrequencyValid Vodafone 15Airtel 15Idea 10TataOther1015Graph No. 4.01When we asked them about all companies of which they were selling the recharges than majoritywere selling Vodafone and Airtel recharge coupons and others include Idea, Tata, BSNL, andReliance.TATA IDEA AIRTEL VODAFONE051015FreqWhich company’s recharge available?OTHERS
Page 57 of 79Q.7 If you are not selling any, then do you have any idea about telecom business?Table No. 4.10Chart No. 4.09Those who were not into this business, we asked them about their knowledge of telecombusiness that in reply most of the respondent shopkeepers 76% replied that they had no ideaabout this only 24% said they are having some idea of this business and they know aboutrecharge selling and commission which they will get on this.Frequency PercentCumulativePercentValid yes 114 76.0 76.0No36 24.0 100.0Total 150 100.0YESNo
Page 58 of 79Q.8 (i) Are you interested in selling Vodafone?Table No. 4.11Chart No. 4.10When we asked people if they are interested in selling Vodafone than most of the shopkeepers(83.3%) denied and said that they cannot do this while only 16.7% said yes and got ready to sellour recharges. There were several reasons of people about denying this.Frequency PercentCumulativePercentValid yes 25 16.7 16.7No 125 83.3 100.0Total 150 100.0YESNoAre you interested in selling vodafone?
Page 59 of 79(ii) If no, then any particular reason for not selling?Table No. 4.12FrequencyValid Illiterate 20Age Factor 25Less Commission 40Several shops nearbyFinancial issueCredit issue in villageOther30253525Graph No. 4.02When asked about their reasons for not starting this business than majority said the commissionis less, others said the villages take things on credit and do not pay for them frequently so creditissue is also a big problem among villagers. Other reasons include Age factor as most of theshopkeepers were of older age, several shops were there nearby, financial issues etc.01020304050FrequencyIf no, then any particular reason for not selling?Illiterate Age factor less commission several shops near Financial credit issue others
Page 60 of 79Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?Table No. 4.13Frequency PercentCumulativePercentValid Onlycoupons12 23.0 23.0Only E-top 8 15.4 38.4.0Both 32 61.6 100.0Total 52 100.0Chart No. 4.11Those people who got convinced and satisfied with our presentation and promotion were readilyagreed for opening our outlet there and filled the ACT form new E-top connection and tookcoupons (61.6%), while 23% opted for coupons only as many of them wanted to check and testthe sales there first before starting work fully and some were not ready to take e-top recharge asthey find it complex, while 8% took E-top recharge only.
Page 61 of 79Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?Table No. 4.14Chart No. 4.12When we asked them, are they ready to sell new sim connections than majority i.e. 65% said noas they gave certain reasons for this while only 35% said yes at once.Frequency PercentCumulativePercentValid yes 14 35 35No 26 65 100.0Total 40 100.0YESNoDo you want to sell new SIM (New Vodafone connections)?
Page 62 of 79(ii) If No, then reason for not selling?Table No. 4.15FrequencyValid New connectionsale less16I.D. issuesFinancial issue1510Others 7Graph No. 4.03When asked about the reasons for not selling the new connections Majority said that in villagesnew connections sale is less, others also said that I.D. issue is there and its risky for them thoughwe gave them solution for this query, Others said they cannot start this as they do not havefinance available, while some said they cannot compete shops in markets nearby who areoffering sim at very low price.New Connectionless SaleI.D. issues Financial issue Others0510152025FrequencyIf No, then reason for not selling?
Page 64 of 79CHAPTER – 5FINDINGS AND THEIR IMPLICATIONSFINDINGS:Vodafone has a good customer base in rural areas as well. As among the rural villagerswe have visited, almost 80% were using Vodafone and were aware about its variousschemes like TYC, and other benefits.The users were found to be very satisfied with the services they are getting and networkis very good in rural areas as well.Among the shops we have visited almost 80% were not selling any recharge of anycompany. Among others most were selling the paper coupons only.Although most of the villager shopkeepers were not into this business of telecom werealmost 75% were having some knowledge about this business. They know about variousproducts of Vodafone and recharges available, E-top recharge, paper recharge, and thecommission they will get for selling (though not exactly the percentage) etc.Most of the shopkeepers were not interested in selling Vodafone in their shops. Theygave several reasons for this and most frequently given reasons include Illiteracy, Agefactor, Less commission, Financial issues, Credit issues as villagers take things on creditand not pay several times.Those interested most of them took both recharges paper and E-top. Some took onlypaper recharge as they wanted to first test this business and wanted to see if they will getcustomers initially.For selling SIMs (New connections) most of the shopkeepers said No. They were notready to sell new connections as they find it very complex and face certain problems.
Page 65 of 79Most of the problems they are facing include New connection sale is less in villages andI.D issues also made them to not to sell this.Overall people were not very advanced and they were ready to cooperate and listen aboutthe company and things we were saying. Most who understood about this were ready tostart this business.IMPLICATIONS:As Vodafone has good customer base there in rural areas as well so it can focus on it.Vodafone can get idea about the problems of villagers from this project and can find newideas to get rid of them.Vodafone can use the findings to get more penetration into the other rural areas and candesign its strategies according to the findings and issues pertaining in villages.This project work is for Vodafone but other companies also can get benefit from it. Theycan also implicate this survey for getting the understanding of the rural market they wantto concentrate on.Companies who are interested in entering rural areas can use this project work to knowthe problems of villagers, which can help them guide in initial steps of entry.
Page 67 of 79CHAPTER – 6LIMITATIONS OF THE STUDYThe limitations of our projects include:This project work is of two months and only few villages were visited, Sample size isalso small i.e. of 150 only so errors may crop in while generalizing the results.The respondents may be in a hurry and to get rid-off quickly they might not haveresponded truly to all the questions.Most visits were done in the afternoon time, when most of the villagers are in restingmood and we found some of the shops closed. These may be potential shopkeepers whomay have responded well.Though most attention is given to analysis but there may be some human error inanalyzing which can create error in generalizing.
Page 69 of 79CHAPTER – 7RECOMMENDATIONS / SUGGESTIONSThis research throws light on various Issues and conditions of Vodafone‘s Rural Market andcan also help Vodafone to improve on different fronts in order to have an edge over itscompetitors. Based on the analysis and findings of my research I would like to give followingrecommendations:Most of the shops present in the villages are either Kiryana or paan-bidi type, so companyshould come up with new plans to lure these retailers who are least ready for thisbusiness. Also for visiting the shops morning or evening time should be chosen as in theafternoon we found most of the shops were closed in village.Most of our respondents were using the Vodafone, so it shows Vodafone‘s services aregood there. Company should use it as the base for increasing its customer base.Though most of the respondents knew about Vodafone‘s TYC, but a sufficient numberwas unaware. So company should promote about TYC in the rural through Muniyadi, orpamphlets and banners.Though most our respondents were not selling recharges but they had a fair idea aboutthis business so this is of great use for Vodafone. The process becomes easy if they knowabout it. So company should focus more on satisfying the shopkeepers about their otherissues and hurdles they are facing in opening recharge outlet.Company should focus more on learning the shopkeepers so that they will be able to dothis business well. The company should make them understand the E-top rechargeprocess severally as it‘s not easy for some to understand in one go, also their benefits inBest Deal, etc.Most of the responses said the commission is less and Credit issue is there in village, forthis Vodafone should come up with strategies to solve these frequent problems andshould make villagers understand this.
Page 70 of 79As for selling new connections people were not ready, as they feel there is problemregarding the I.D issue and finance for sim, whose sale is less so people feel their moneywill be blocked if they buy sim. For this company can make new plan and can providenew sim to them on credit basis whose payment can be made after sale, more awarenessand activities can be organized in village to sell more sim. If more connections will sellthen only it can enhance its revenues rapidly.As far as commission is concerned on sale, people less understood the Vodafone currencysystem. They found it complex to understand and were more on selling the paperrecharge as it‘s easy. So company should consider this issue and should come up withnew alternative to give benefits to rural village retailers.
Page 72 of 79CHAPTER – 8CONCLUSIONSVodafone has a firm commitment to growth and aims to differentiate itself in Indias highlycompetitive communications environment by ensuring customer delight through personalizedcustomer service, Excellent Network and other benefits. Vodafone has a solid reputation in India,exemplified by a multitude of awards such as: three accolades – Two Gold and One Silver, at theAsia Marketing Effectiveness (AME) awards ceremony, the GSMA Global Mobile Awards to itsstrong value proposition as ―Best mobile enterprise service‖.The Company is taking every bit of effort to penetrate into the rural area and above analysisshows how it is trying its level best to achieve this. All the efforts are directed towards this.Through consistent presence and support for rural ecology company can strengthen its hold onrural market. Lowering the initial costs of entry is expected to keep company in profit sincereduced profit margins stand to be compensated by a larger consumer base.If the company will carry on the good work of penetration into the ruralareas and enhance it by considering the suggestions made above in the report than it can pace upthe success of Mera Gaon Mera Desh project. Through its efforts of Promotion and penetrationactivities it can surely become the first preference of every Indian may it be in any corner ofIndia and can become No.1 Telecom Company of India in near future.This penetration will help in better connectivity and reduce the distances.
Page 74 of 79BIBLIOGRAPHYBOOKSCooper Donald R. & Schindler Pamela S., 9thedition, 2006, Tata McGraw-HillPublication Company Ltd., New Delhi. Ch-6 Research Design(pg.136),Ch-14 Questionnaire & Instruments (pg.356), Ch-15 Sampling (pg.400)Kotler Philip and Keller Kevin, Principles of Marketing, 11th edition, 2006, Prentice hallInc, Published by Ashoke K. ghosh, Connaught circus, New Delhi.Ch-15 Advertising, promotion & public relationsARTICLEA Research article by CSK consulting Pvt. Ltd., ―Rural Marketing practices for TelecomServices‖, 2008, Nokia Siemens networks.WEBSITESCellular Operators Association of India, History of Cellular telephonyhttp://www.coai.com/history.php, 20 July 2010.Instablogs, 10 Aug. 2010, Varinder Kaurhttp://varinderkaur.instablogs.com/entry/vodafone-zoozoo-a-successful-marketing-strategy/, Vodafone Zoo Zoos – ―A Successful Marketing Strategy‖.Prahalad C. K., ―Bottom of the pyramid‖ articlehttp://www.12manage.com/methods_prahalad_bottom_of_the_pyramid.htmlTelecom Regulatory Authority of India,http://www.trai.gov.in/annualreport/TRAIAR2008_09E_Add.pdf, 25 JULY 2010.Vodafone History, http://en.wikipedia.org/wiki/Vodafone_Essar. 2Aug 2010.http://www.vodafone.com/start/media_relations/news/group_press_releases/2010/prelim_2010.html
Page 76 of 79ANNEXURE1. QUESTIONNAIRE:QUESTIONNAIREVodafone Essar CompanyDear Respondent,I am a student of Maharaja Agrasen Institute of Technology, I am doing this Project forVodafone, for the purpose of promotion and opening new outlets in Sites called MERA GAONMERA DESH FOCUS SITES, and so for that purpose I have designed following questionnaire.Needless to say, that your information will be kept confidential and won‘t be disclosed toanyone.Q.1 The type of outlet visited:a) Kiryana store. e) Tailor / Barber.b) Mobile / repair shop. f) Photo shop.c) STD/PCO shop. g) Pan-Bidi shop.d) Chemist/Clinic. h) Other.Q.2 Are you currently a Vodafone user?a) Yes b) No.Q.3 what is your experience with Vodafone?a) Very satisfied.b) Satisfied.c) No opinion.d) Unsatisfied.
Page 77 of 79Q.4 what is the reason for your experience?Good Bada) Networkb) Customer care servicec) Roaming facilitiesd) Vodafone customer planse) Any other--------------------------------------------------------------------------------Q.5 Do you know about Vodafone‘s Thank you card?a) Yes b) NoQ.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?a) Only couponsb) Only E-top Value.c) Both.d) None.(ii) If selling then of which companies?Yes Noa)Vodafone.b) Airtel.c) Idea.d) Tata.e) Others.Q.7 if you are not selling any, then do you have any idea about telecom business?a) Yes b) No
Page 78 of 79Q.8 (i) Are you interested in selling Vodafone?a) Yes b) No(ii) If no, then any particular reason for not selling?a) Illiterate.b) Age factor.c) Less Commission.d) Several shops are nearby.e) Financial issue.f) Credit issues with villagers.g) Any other-----------------------------------------------------------------------------------Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?a) Only recharge couponsb) Only E-top Value.c) Both.Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?a) Yes b) No(ii) If No, then reason for not selling?a) New connections sale is less here.b) I.D. issues.c) Financial issues.d) Any other------------------------------------------------------------------------------------