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PRESENTED BY:
Dhroov Sharma
DM17MA23
Marketing Analytics
A BRIEF REPORT ON
VODAFONE MOBILE PHONE IN
INDIA
SECTOR INFORMATION
206
300
430
621
846
951
898
846
996
1059
1194.58
1185.58
18.3
26.2
37
52.7
70.9
78.7
74.02
77.58 79.38
83.36
92.98
91.61
0
10
20
30
40
50
60
70
80
90
100
0
200
400
600
800
1000
1200
1400
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18*
Growth in Total Subscribers
Telephone Subscriber (in million) Teledensity
Source: IBEF Report
• India’s telephone subscriber base
expanded at a CAGR of 19.16%
• The mobile segment’s teledensity surged
from 14.6% in FY07 to 90.70% in FY17
• India is currently the 2nd largest telecommunication market and has the 3rd
highest number of internet users in the world
• Strict government regulations
• Extremely high infrastructure setup cost
Threat of New Entrants
• Low Switching cost
• Customers are price sensitive
Buyer Power
PORTER’S 5 FORCES
Threat of Substitutes
• No Competition in the market
• High Competition
• High exit barriers are also
intensifying competition
Rivalry CompetitionSupplier Power
• Few Supplier
• High Switching Cost
COMPANY OVERVIEW
• Vodafone was launched in India in September 2007
• Vodafone have consistently been awarded for their best-in-class network,
powerful brand, unique distribution and unmatched customer service
• Vodafone has 18% of Market Share and stood 2nd in the position
• Vision: “Connecting everybody to live a better today and build a better
tomorrow”
Source: Vodafone.in
SWOT ANALYSIS
STRENGTH
• Low cost as per the targeted market
• Good product quality
• Multiple flavor
Weakness
Opportunity
Threat • Competitor’s low price plan offering affects Vodafone's margins
• Mobile Number Portability can reduce subscriber base
• Latest and low cost technology can help the brand grow
• Untapped rural market can be a huge Potential
• Not been able to exploit the mobile wallet market (mpesa)
Strength • Most popular cellular service provider across the world
• Strong network capabilities across the country including Rural Market
PRODUCTS & SERVICES
1. Vodafone 125
2. Vodafone 225
3. Itel A20
And many more.
1. 4G MiFi
2. 4G Dongle
3. 3G Mobile WiFi
4. 3G Dongle
1. Mobile Internet, 4G
2. Billing & Payment
3. Prepaid Recharge & Balance
4. mpesa
Source: Vodafone.in
COMPETITOR ANALYSIS
Xiaomi
27%
Samsung
24%
Vivo…
Lenovo
6%
Oppo
5%
Others
32%
Market Share
Source: International Data Corporation Report
SMARTPHONE SEGMENTTELECOMMUNICATION SEGMENT
Airtel
25%
Vodefone
18%
Idea
17%
Jio
14%
Others
26%
Market Share
ITEL A20 MOBILE
• The Android 7.0 Nougat-based
• Powered with 1.3GHz quad-core processor, coupled with 1GB RAM
• The 4G VoLTE-enabled smartphone supports dual-SIM cards
• Packs a 1700mAh battery, and has 8GB of storage
• It bears a 2-megapixel rear camera with flash, and a 0.3-megapixel
(VGA) front camera
• Sensors on board include accelerometer, ambient light sensor, and
proximity sensor
• 250,000 Active Patents
• High Capital requirement
Threat of New Entrants
Supplier Power
• Few Chipset Supplier
• High Switching Cost
• Diverse customers
• Low Switching costs
• Lack of brand loyalty
• High competition
Buyer Power
PORTER’S
5 FORCES
• High Competition
• Competitors constantly at
short intervals launch new
variants, Models, Versions
and better features
Rivalry Competition
Threat of Substitutes
• Landline users are declining
• No Significant Tech existing to wipe out Mobile and
Smartphone industry any time soon
SWOT ANALYSIS: ITEL A20 MOBILE
• Low Margin to
distributors and retailer
• New to Smart Phone
Segment
• Rural Market penetration
• More featured mobile in
affordable prices
• Highly Competitive
Market
• Low Margin
Threats
• Strong Band Image
• Good product quality,
packaging and at
affordable price
Weaknesses OpportunitiesStrengths
SEGMENTATION TARGETING
POSITIONING
Geographic:
Rural and Urban areas (North, south, east, west) includes Tier 1 Cities, Tier2 and Tier3 cities
Demographic:
Age: 15 - above
Education: Any
Income: Middle to Upper income
Psychographics: Readiness to try new products, Price sensitive, Techno lover
SEGMENTATION: It defines the consumer
TARGETING: It helps to select the consumer
• The primary segment is the one for whom the product is designed
• Most revenue will come from the primary target market
• These customers share common characteristics and behaviors, account for the
highest volume of sales and are most likely to buy now
Here it is: Rural Market, Low Income, Internet Lover, Techno lover
POSITIONING: It helps to tap the consumer
“The Future is Exciting”
Vodafone wants his targeted customer to experience a new feature
through purchasing of “Itel A20”, in affordable price.
MARKETING MIX
PRODUCT
• ANDRIOD VERSION Android v7.0 (Nougat)
• SCREEN SIZE 4.0-inch TFT
• PROCESSOR 1.3 GHz quad-core
• RAM 1 GB
• CONNECTIVITY Mobile hotspot, Wi-Fi, Bluetooth and a MicroUSB
• CAMERA 2MP Primary and 0.3MP Secondary
• STORAGE 8GB inbuilt memory
• COLOUR Silver, Champagne Gold and Dark Blue
• BATTERY 1,700mAh Li-ion
• WARRANTY 1 year manufacturer warranty & 6 month
accessories warranty
PRICE
• An affordable 4G smartphone
• The Pricing strategy Vodafone is using skimming
• The Price of Itel A20 is ₹3690/ ₹1590/-
PLACE
• ONLINE PLATFORM Amazon, Flipkart
PROMOTION
PRODUCT LIFE CYCLEAnnualSalesVolume
Time
INTRODUCTION Growth Maturity Decline
R
&
D
• ITEL A20 is in the
Introductory stage
SALES FORECAST (Excel)
Source: IBEF Report, https://telecom.economictimes.indiatimes.com/news/35-4g-subscribers-from-rural-areas-jio-and-incumbents-neck-and-neck-in-rural-india-cmr/63597029
IMRB, COAI REport https://www.financialexpress.com/industry/mobile-handset-penetration-why-rural-consumer-is-not-rural-anymore/788513/
206
300
430
621
846
951
898
846
996
1059
1194.58
1185.58
1422.7
1695.86
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19FFY20F
Growth in Total Subscribers
Telephone Subscriber (in million)
CAGR 19.22%
674.61
254.41
684.42
267.50
URBAN RURAL
Smartphone Growth (In Million)
2019 2020
SALES FORECAST
Source: IBEF Report, https://telecom.economictimes.indiatimes.com/news/35-4g-subscribers-from-rural-areas-jio-and-incumbents-neck-and-neck-in-rural-india-cmr/63597029
IMRB, COAI REport https://www.financialexpress.com/industry/mobile-handset-penetration-why-rural-consumer-is-not-rural-anymore/788513/
9.29
19.04
0
5
10
15
20
2019F 2020F
Vodafone Smartphone Sales Forecasted
(In Million)
Particular
2019(In
Million)
2020(In
Million)
Net Sales 13935 28560
Cost of sold
goods 6503 13328
Expenses 2787 5712
EBIT 4645 9520
Tax 1161.25 2380
Net Profit 3483.75 7140
DISTRIBUTION FORMATS AND CHANNELS
• Indirect Channel
Vodafone
Distributor
Distributor Sales Executives
Retailer
Main
Town
Direct
distribution to
village clusters
within 20kms
Cluster of villages
serviced by
Associate
Distributor
20Km
40Km
Cluster of villages
serviced by
Associate
distributor
35Km
Urban Rural
DISTRIBUTION FORMATS AND CHANNELS
• Exclusive Retail
DISTRIBUTION FORMATS AND CHANNELS
• Direct Channel
• Direct Sales Agent • Tele-calling • Super call Centre
DISTRIBUTION FORMATS AND CHANNELS
Channel Level:
• Zero Level
Vodafone Customer
• One Level
Vodafone Retailer Customer
CONSUMER BUYING BEHAVIOUR ON MOBILE
• Factor Analysis*
Group Name Value for Money Stylish
Factors
Processor
Finger Print
Scanner
Battery life Colour
VoLTE 4G
Connectivity (Wifi,
Bluetooth, etc.)
CONCLUSION and LEARNING
• Vodafone is trying to penetrate in the market to increase their market share
• Tapping to Lower middle and Rural market
• Vodafone should Improve battery and camera quality
• Vodafone will capture market share as they have all the factors which customer
seeks while purchasing a smartphone
• More intense advertisement should have needed to compete with Jio
THANK YOU!!

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A BRIEF REPORT ON VODAFONE MOBILE PHONE IN INDIA

  • 1. PRESENTED BY: Dhroov Sharma DM17MA23 Marketing Analytics A BRIEF REPORT ON VODAFONE MOBILE PHONE IN INDIA
  • 2. SECTOR INFORMATION 206 300 430 621 846 951 898 846 996 1059 1194.58 1185.58 18.3 26.2 37 52.7 70.9 78.7 74.02 77.58 79.38 83.36 92.98 91.61 0 10 20 30 40 50 60 70 80 90 100 0 200 400 600 800 1000 1200 1400 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18* Growth in Total Subscribers Telephone Subscriber (in million) Teledensity Source: IBEF Report • India’s telephone subscriber base expanded at a CAGR of 19.16% • The mobile segment’s teledensity surged from 14.6% in FY07 to 90.70% in FY17 • India is currently the 2nd largest telecommunication market and has the 3rd highest number of internet users in the world
  • 3. • Strict government regulations • Extremely high infrastructure setup cost Threat of New Entrants • Low Switching cost • Customers are price sensitive Buyer Power PORTER’S 5 FORCES Threat of Substitutes • No Competition in the market • High Competition • High exit barriers are also intensifying competition Rivalry CompetitionSupplier Power • Few Supplier • High Switching Cost
  • 4. COMPANY OVERVIEW • Vodafone was launched in India in September 2007 • Vodafone have consistently been awarded for their best-in-class network, powerful brand, unique distribution and unmatched customer service • Vodafone has 18% of Market Share and stood 2nd in the position • Vision: “Connecting everybody to live a better today and build a better tomorrow” Source: Vodafone.in
  • 5. SWOT ANALYSIS STRENGTH • Low cost as per the targeted market • Good product quality • Multiple flavor Weakness Opportunity Threat • Competitor’s low price plan offering affects Vodafone's margins • Mobile Number Portability can reduce subscriber base • Latest and low cost technology can help the brand grow • Untapped rural market can be a huge Potential • Not been able to exploit the mobile wallet market (mpesa) Strength • Most popular cellular service provider across the world • Strong network capabilities across the country including Rural Market
  • 6. PRODUCTS & SERVICES 1. Vodafone 125 2. Vodafone 225 3. Itel A20 And many more. 1. 4G MiFi 2. 4G Dongle 3. 3G Mobile WiFi 4. 3G Dongle 1. Mobile Internet, 4G 2. Billing & Payment 3. Prepaid Recharge & Balance 4. mpesa Source: Vodafone.in
  • 7. COMPETITOR ANALYSIS Xiaomi 27% Samsung 24% Vivo… Lenovo 6% Oppo 5% Others 32% Market Share Source: International Data Corporation Report SMARTPHONE SEGMENTTELECOMMUNICATION SEGMENT Airtel 25% Vodefone 18% Idea 17% Jio 14% Others 26% Market Share
  • 8. ITEL A20 MOBILE • The Android 7.0 Nougat-based • Powered with 1.3GHz quad-core processor, coupled with 1GB RAM • The 4G VoLTE-enabled smartphone supports dual-SIM cards • Packs a 1700mAh battery, and has 8GB of storage • It bears a 2-megapixel rear camera with flash, and a 0.3-megapixel (VGA) front camera • Sensors on board include accelerometer, ambient light sensor, and proximity sensor
  • 9. • 250,000 Active Patents • High Capital requirement Threat of New Entrants Supplier Power • Few Chipset Supplier • High Switching Cost • Diverse customers • Low Switching costs • Lack of brand loyalty • High competition Buyer Power PORTER’S 5 FORCES • High Competition • Competitors constantly at short intervals launch new variants, Models, Versions and better features Rivalry Competition Threat of Substitutes • Landline users are declining • No Significant Tech existing to wipe out Mobile and Smartphone industry any time soon
  • 10. SWOT ANALYSIS: ITEL A20 MOBILE • Low Margin to distributors and retailer • New to Smart Phone Segment • Rural Market penetration • More featured mobile in affordable prices • Highly Competitive Market • Low Margin Threats • Strong Band Image • Good product quality, packaging and at affordable price Weaknesses OpportunitiesStrengths
  • 12. Geographic: Rural and Urban areas (North, south, east, west) includes Tier 1 Cities, Tier2 and Tier3 cities Demographic: Age: 15 - above Education: Any Income: Middle to Upper income Psychographics: Readiness to try new products, Price sensitive, Techno lover SEGMENTATION: It defines the consumer
  • 13. TARGETING: It helps to select the consumer • The primary segment is the one for whom the product is designed • Most revenue will come from the primary target market • These customers share common characteristics and behaviors, account for the highest volume of sales and are most likely to buy now Here it is: Rural Market, Low Income, Internet Lover, Techno lover
  • 14. POSITIONING: It helps to tap the consumer “The Future is Exciting” Vodafone wants his targeted customer to experience a new feature through purchasing of “Itel A20”, in affordable price.
  • 16. PRODUCT • ANDRIOD VERSION Android v7.0 (Nougat) • SCREEN SIZE 4.0-inch TFT • PROCESSOR 1.3 GHz quad-core • RAM 1 GB • CONNECTIVITY Mobile hotspot, Wi-Fi, Bluetooth and a MicroUSB • CAMERA 2MP Primary and 0.3MP Secondary • STORAGE 8GB inbuilt memory • COLOUR Silver, Champagne Gold and Dark Blue • BATTERY 1,700mAh Li-ion • WARRANTY 1 year manufacturer warranty & 6 month accessories warranty
  • 17. PRICE • An affordable 4G smartphone • The Pricing strategy Vodafone is using skimming • The Price of Itel A20 is ₹3690/ ₹1590/-
  • 18. PLACE • ONLINE PLATFORM Amazon, Flipkart
  • 20. PRODUCT LIFE CYCLEAnnualSalesVolume Time INTRODUCTION Growth Maturity Decline R & D • ITEL A20 is in the Introductory stage
  • 21. SALES FORECAST (Excel) Source: IBEF Report, https://telecom.economictimes.indiatimes.com/news/35-4g-subscribers-from-rural-areas-jio-and-incumbents-neck-and-neck-in-rural-india-cmr/63597029 IMRB, COAI REport https://www.financialexpress.com/industry/mobile-handset-penetration-why-rural-consumer-is-not-rural-anymore/788513/ 206 300 430 621 846 951 898 846 996 1059 1194.58 1185.58 1422.7 1695.86 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19FFY20F Growth in Total Subscribers Telephone Subscriber (in million) CAGR 19.22% 674.61 254.41 684.42 267.50 URBAN RURAL Smartphone Growth (In Million) 2019 2020
  • 22. SALES FORECAST Source: IBEF Report, https://telecom.economictimes.indiatimes.com/news/35-4g-subscribers-from-rural-areas-jio-and-incumbents-neck-and-neck-in-rural-india-cmr/63597029 IMRB, COAI REport https://www.financialexpress.com/industry/mobile-handset-penetration-why-rural-consumer-is-not-rural-anymore/788513/ 9.29 19.04 0 5 10 15 20 2019F 2020F Vodafone Smartphone Sales Forecasted (In Million) Particular 2019(In Million) 2020(In Million) Net Sales 13935 28560 Cost of sold goods 6503 13328 Expenses 2787 5712 EBIT 4645 9520 Tax 1161.25 2380 Net Profit 3483.75 7140
  • 23. DISTRIBUTION FORMATS AND CHANNELS • Indirect Channel Vodafone Distributor Distributor Sales Executives Retailer Main Town Direct distribution to village clusters within 20kms Cluster of villages serviced by Associate Distributor 20Km 40Km Cluster of villages serviced by Associate distributor 35Km Urban Rural
  • 24. DISTRIBUTION FORMATS AND CHANNELS • Exclusive Retail
  • 25. DISTRIBUTION FORMATS AND CHANNELS • Direct Channel • Direct Sales Agent • Tele-calling • Super call Centre
  • 26. DISTRIBUTION FORMATS AND CHANNELS Channel Level: • Zero Level Vodafone Customer • One Level Vodafone Retailer Customer
  • 27. CONSUMER BUYING BEHAVIOUR ON MOBILE • Factor Analysis* Group Name Value for Money Stylish Factors Processor Finger Print Scanner Battery life Colour VoLTE 4G Connectivity (Wifi, Bluetooth, etc.)
  • 28. CONCLUSION and LEARNING • Vodafone is trying to penetrate in the market to increase their market share • Tapping to Lower middle and Rural market • Vodafone should Improve battery and camera quality • Vodafone will capture market share as they have all the factors which customer seeks while purchasing a smartphone • More intense advertisement should have needed to compete with Jio