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2010

Summer Training Project Report


MERA GAON MERA DESH

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Vodafone Essar Company


9/20/2010

Summer Training Project Report


On
To study the rural promotional and penetration activities of Vodafone under
its MGMD (Mera Gaon Mera Desh) project

Submitted in Partial Fulfillment for the Award of the


Degree of Master in Business Administration 2009-2011

Under the Guidance of:

Submitted By:

Department of Management
State University.

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STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled To study the rural
promotional And penetration activities of Vodafone under its MGMD (Mera Gaon Mera Desh)
project in Vodafone Essar Digilink Limited (A Vodafone Essar Company). This is an original
piece of work & I have not submitted it earlier elsewhere.

Date:

Signature

Place:

Name

University Enrollment No :

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CERTIFICATE FROM THE INSTITUTE GUIDE


This is to certify that the summer project titled To study the rural promotional and penetration
activities of Vodafone under its MGMD (Mera Gaon Mera Desh) project is an academic work
done in the partial fulfillment of the requirement for the award of the degree of Master of
Business Administration from, State University, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him in the project
has not been submitted earlier.

Signature

Name of the Faculty :


Designation

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ACKNOWLEDGEMENT

I am extremely thankful to Mr. Mehndiratta; Zonal prepaid Head of Zone-1 Haryana who
gave me this opportunity to undertake this project. Without his directions and permissions I
could not have undertaken this project.
I would like to thank the Relationship Managers Mr. Chibbar and Mr. Sharma, for their time
to time guidance and support; it was of great help in knowing the whole process and background
of this 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 remarkable
contributions and help in making this Project report and also for throwing a good insight at
the
practical aspect.

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EXECUTIVE SUMMARY
This project is based on telecom sector as the telecom sector is growing at a very good pace. The
telecom company where I did my summer internship project is VODAFONE. The reason behind
selecting Vodafone is its various schemes in product & service category & also its future
policies where 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
started in the mid 70s & since then it has never looked back. The products & services offered
by Vodafone are of a very high quality & also at affordable rates. They have various plans for
various 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 services
which include broadband internet & PC internet services. Vodafone also came out with cell
phones for the poor which were a part of their social responsibility toward the poor class people
of the society. The phones were available in the range of Rs. 750 - Rs.1500 which was one of the
successful strategies of Vodafone.
According to the June 2010 data VODAFONE Essars market share is 23.89% and is just after
Bharti with 29.92%.
This report is based on the collective work of two months on a project called MERA GAON
MERA DESH, where we did our research on the MFS (Mera Gaon Mera Desh focus sites) to
increase our subscription rate. During this period we visited these sites and villages which
come under these sites and got response from the retailers and shopkeepers there, regarding
their experience with Vodafone as a user and selling our products there and for promoting the
Vodafone.

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Among those whose response was taken includes Kiryana shops, medical stores, mobile repair
shops, std/pco , tailor/parlors , etc. Random stratified sampling method was considered to be best
suited to fulfill the project. A structured questionnaire was constructed in order to measure the
responses of respondents on suitable scale. The data of sites was given by Vodafone and the
primary 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
and solve their queries and to convert them in our UEOs (Unique E-top Outlets) and UAOs
(Unique Activation Outlets) by filling their ACT forms and providing them with Recharge
coupons and
E-top sim. Also to give them posters and banners for promotion and advertisement in the
form of new outlet kit.

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List of Tables:

Page No.

Table-2.01 History of cellular telephony in India.


Table-2.02 Vodafones People Strategy.
Table-4.01 Types of outlets visited.
Table-4.02 No of Vodafone users
Table-4.03 Experience with Vodafone
Table-4.04 Reason for experience
Table-4.05 Customer care service experience
Table-4.06 Experience of roaming facilities
Table-4.07 Knowledge about Vodafone Thank you card
Table-4.08 Selling recharge coupons and E-top values
Table-4.09 Companies people selling
Table-4.10 Idea about Telecom Business
Table-4.11 Interest in selling Vodafone
Table-4.12 Reasons for not selling
Table-4.13 Want to sell coupons and E-top values
Table-4.14 Want to sell new sim
Table-4.15 Reasons for not selling
Table-A Biswamil Non- etop retailers
Table-B Biswamil E-top retailers
Table-C Gannaur E-top retailers

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Page No.

List of Charts:
Chart-2.01 History of telecom in India
Chart-2.02 GSM players in India
Chart-2.03 CDMA players in India
Chart-2.04 World Economic Pyramid
Chart-4.01 Type of outlets
Chart-4.02 Vodafone Users
Chart-4.03 Experience with Vodafone
Chart-4.04 Reason for experience
Chart-4.05 Customer care service
Chart-4.06 Roaming facilities
Chart-4.07 Vodafone thank you card
Chart-4.08 Telecom business selling recharges
Chart-4.09 Idea about telecom business
Chart-4.10 Interested in selling Vodafone
Chart-4.11 Want to sell Vodafone coupons
Chart-4.12 Want to sell new sim

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15
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Table of Contents:
Chapter 1

Page no.

Introduction

1.1
1.2
1.3

Purpose of the Project.


Objective.
Scope of the Research

Chapter 2

Company Profile

2.1
2.2

About the Company


About the Topic

Chapter 3

Methodology

3.1
3.1.1
3.1.2
3.1.3
3.1.4

Research Design
Type of Research
Population/Universe
Sample Size
Sampling Technique

37
38
38
41
41

3.2
3.2.1
3.2.2
3.2.3

Data Collection
Primary and Secondary data
Instruments for Data Collection
Method for Data Collection

42
42
43

Chapter 4

Data Analysis

45

Chapter 5

Findings and their Implications

62

Chapter 6

Limitations of the Study

65

Chapter 7

Recommendations / Suggestions

67

Chapter 8

Conclusions

70

Bibliography

8
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12
31

72

Annexure.
1. Questionnaire.
2. New outlet data.
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74
77

INTRODUCTION

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CHAPTER 1
INTRODUCTION
1.1 Purpose of the project.
The basic purpose of the project MGMD is to focus on the areas where the subscription
base or the customer base is low. All the customers and retailers were tracked on the basis
of CSI (Cell Site Intelligence).
Through this project companys motive is to increase the customer base in these areas over
their competitors by opening new outlets in these areas who can sell Vodafone recharges
and new connections.
Another purpose of this project is to open outlets everywhere so that customer will not
face problems 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 retailers
response as a user about Vodafone services and to make them start selling Vodafone
recharges there on commission basis, so that subscription rate will increase there and the
customers nearby will not face problems in getting recharges and new connections and
they will 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 visit
Vodafone stores and mini stores and can get free gifts from there.
Pamphlet distribution at main locations in villages through van.

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1.2 Objective:
The objective of the project and research is to know about the view of retailers in
the villages as a user about the Vodafone and satisfy their queries and make them
understand the telecom business of selling the Recharge coupons, Values and New
connections for the Characteristics low income and rural consumers.
With the help of the questionnaire we were able to know their status and their
problems in selling our recharges. With the help of our understanding and companys
policies and information we solved their queries and convert many of them into our
outlets.
Position, promotion, price and placement of service product.

To increase our village wise DPL i.e., Dealer per lakh. This shows the presence of
Vodafone in the market and convenience for users.
Another objective of this project was to do activities to convert Competition
customer to Vodafone (BSNL/AIRTEL). For this purpose TYC promotion and
brand promotion, for its customer focused activities, was done.

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1.3 Scope of Research:


Since, the telephony has started in India, the telecom companies were concentrated to
provide the best of their services in the big cities of India and this was the reason they
were more 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 this Vodafone has come up with a plan to penetrate the rural area and villages,
where it can increase its subscriber base and can promote itself with various schemes
specially for the rural people.

Though this report is totally devoted to the work done for the Vodafone, but it can work for
other companies as well if they want to penetrate the rural villages and want to increase
their subscriber base there.
To penetrate the market of rural villages companies will have to set up their outlets to
sell them and for that they will have to know the lifestyle and issues among retailers in
rural about their understanding of this field.
So the scope of this research is for all telecom players. The questionnaire is designed to
know about the people of villages and their problems and issues in starting telecom
business which 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
livelihood and for promoting yourself activities like pamphlet distribution, Muniyadi, TYC
distribution, personal Visits, direct and easy interaction , etc all are part of rural marketing
which have scope in other companys promotion as well.

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COMPANY
PROFILE
CHAPTER-2
COMPANY PROFILE
2.1 About the
Company.
Indian Telecommunication
Industry
The Indian telecommunications has been zooming up the growth curve at a
feverish pace, emerging as one of the key sectors responsible for India's resurgent
economic growth.
India has surpassed US to become the second largest wireless network in the world
with a subscriber base of over 391.76 million, according to the Annual report of
Telecom Regulatory Authority of India (TRAI).
Table 2.01 History of Cellular
Telephony in India
YEAR
EVENT
1992

Telecommunication sector in India liberalized to bridge the gap through


government spending & to provide additional resources for the nations telecom
target. Private sector allowed participating
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1993

The telecom industry gets an annual foreign investment Rs 20.6 million

1994

1995

License for providing cellular mobile services granted by the government of India
for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile
service to be duopoly (i.e. not more than two cellular mobile operators could be
licensed in each telecom circle), under a fixed license fee regime for 10 years.
19 more telecom circles get mobile licenses

1995(aug)

Kolkata became the first metro to have a cellular network

1997

Telecom Regulatory Authority of India is set up

1998

Annual foreign investment in telecom stands at Rs 17,756.4 million

1999

FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million

1999

Tariff rebalancing exercise gets initiated

1999(Mar)

National Telecom Policy is announced

2000(Jan)

FDI inflow drops further down to Rs 918 million coming

2000(June) Amendment of TRAI Act

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The booming domestic telecom market has been attracting accelerating amount of investment.
The cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 6.14
billion. In fact, the surge in mobile services market is likely to see huge amount of investment
implying 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 Vodafones investments and some of Essars own foreign investments.
The second largest FDI is in Aircel with its foreign investor Global Communication Services
Holding (GCSH) owning 64.9%. Deccan Digital, which owes 34.9%, is, in turn, also held 25%
by GCSH.

Graph No.2.01

Government has taken many proactive initiatives which have provided a framework for the
rapid growth of the telecom industry

Chart No.2.01

Opening the industry for private sector participation.

100 per cent FDI is permitted in telecom equipment manufacturing through the
automatic route.

FDI ceiling in telecom services has been raised to 74 per cent.

Establishment of an independent regulator - the Telecom Regulatory Authority of


India (TRAI)-for the telecom sector.

Introduction of a Unified access licensing regime for telecom services on a panIndia basis.

Implementation of New Telecom Policy (NTP'99).

Introduction of Calling Party Pay (CPP) regime and lowering of access deficit
coupled with introduction of revenue share regime in ADC.

Introduction of Mobile Number Portability in a phased manner, starting with the


fourth quarter of 2008.

Allowing service providers to share active infrastructure.


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In GSM services major players are:

Chart No. 2.02

In CDMA major players are:

Chart No. 2.03

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ABOUT VODAFONE

Key people
Chairman

: Sir John Bond

CEO

: Vittorio Colao

Deputy Chairman

: John Buchanan

CFO

: Andy Halford

DURING 1980s
st

Vodafone made the UK's first mobile call at a few minutes past midnight on 1 January 1985.
Within fifteen years, the network was the largest company in Europe and the largest of its kind
anywhere 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, its one of growth and the ability to deliver the tremendous benefits of mobile
communications, 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
the Racal telecoms division and names the new network Vodafone to reflect the provision of
voice and data services over mobile phones. Based in Newbury, the company has less than 50
employees, all in one building.

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1985
The Vodafone analogue network is the first cellular network to launch in the UK, and the first
call is made from St Katherines 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, the
voicemail 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 & wireless

V O D A F O N E D U R I N G 1 9 9 0 S :
1991
Racal and Vodafone demerge. And the Vodafone group is listed as an independent company
on the London and New York stock exchanges.
Vodafone and telecom Finland make the worlds first international roaming call.
Vodafone launches its digital (GSM) mobile phone service the first in the UK.
1992
Vodafone and telecom Finland sign the world's 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
the digital network.
Vodafone joins the global star consortium to develop and launch a low earth orbiting satellite
mobile phone service.

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1996
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
group plc and air touch communications Inc.
On 5 January Vodafone connects the five million customers in the UK.

V O D A F O N E D U R I N G 2 0 0 0 S :
2000
The acquisition of Mannesmann Ag almost doubles the size of the Vodafone group making
it the largest mobile telecommunications company and one of the top ten companies, by
market capitalization, in the world.
Vizzavi is launched, a 50/50 joint venture between Vodafone air touch and vivendinet to
deliver a multi-access branded internet portal for Europe.
Vodafone acquires the largest available 3g license in the UK. In parallel with the
development of 3g, Vodafone announces its intention to offer GPRS (general packet radio
service) to UK corporate customers.
The global star satellite communications service is launched in the UK.

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2001
Vodafone introduces instant messaging to its networks.
Vodafone makes the worlds 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 business
propositions.
Arun Sarin was selected to succeed Sir Christopher Gent as Chief Executive of Vodafone
group plc.
2003
Vodafone live! attracts 1 million customers in its first six months.
Orange, telefonica moviles, t-mobile, and Vodafone form a new association to
drive interoperable mobile payments.
2004
Vodafone launches its first 3g service in Europe with the Vodafone mobile connect
3g/gprs data 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

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VODAFONE ESSAR
MD and CEO Vodafone Essar

: Marten Pieters.

Mission & Vision


To enrich our customer's lives through the unique power of mobile communication
Also its vision is to be the worlds mobile communication leader enriching customers
lives, helping individuals, businesses and communities more connected in a mobile world.
Passion for Customers
Our customers have chosen to trust us. In return, we must strive to anticipate and understand
their needs and delight them with our service. We value our customers above everything else
and aspire 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 our
customers, anticipating their needs and delivering.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India. Despite the official name being Vodafone Essar, its products are simply
branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 license areas.
Ownership
Vodafone 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 Ka
Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja
Group, and Essar Group, which is the owner of the remaining 33%. The whole company
was valued at USD 18.8 billion. The transaction closed on 8 May 2007.

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Previous Brands
Initially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE..... In
December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its
services under a single identity. The Company entered into agreement with NTT DoCoMo
to launch 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 government
approvals with regards to the acquisition of a majority by the Vodafone Group, the company
was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on
20 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
the Vodafone brand.
Growth of Hutchison Essar
In 1992 Hutchison Whampoa and its Indian business partner established a company that in
1994 was awarded a licence to provide mobile telecommunications services in Mumbai
(formerly Bombay) and launched commercial service as Hutchison Max in November 1995.
Analjit Singh of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had
acquired interests in six mobile telecommunications operators providing service in 13 of
India's
23 license areas and following the completion of the acquisition of BPL that number increased to
16. In 2006, it announced the acquisition of a company that held license applications for the
seven remaining license areas.
In a country growing as fast as India, a strategic and well managed business plan is critical
to success. Initially, the company grew its business in the largest wireless markets in India in
cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to

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establish a robust network, well known brand and large distribution network -all vital to longterm success in India. Then it also targeted business users and high-end post-paid customers
which 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 establish
leading positions in India's largest markets providing the resources to expand its footprint
nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement
with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan
interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses
and interests) 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 uses
only white letters on red background. Another recent successful ad campaign in 2003 featured a
pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever
you go, our network follows. The simple yet powerful advertisement campaigns won it many
admirers.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through
ESSAR acquisition
2001: Won auction for licenses to operate GSM services in Karnataka, Andhra
Pradesh and Chennai.
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajasthan,
Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch
brand.
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar
Pradesh West' and 'West Bengal.
2005: Acquired BPL, another mobile service provider in India.

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2008: Vodafone acquired the Licenses in remaining 7 circles and has started its pending
operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya
Nagar, Bhopal as well as in Orissa, Assam, North East and Bihar
2008: 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 Industry
Security Standard (PCI DSS) certification for its Mumbai operations and launches
unlimited SMS offer in Mumbai
2010: Vodafone has crossed the landmark of 100 million subscribers in India. With this
achievement, Vodafone Essar becomes worlds 5th operator with 100 million customers in a
single country. Vodafone has also increased its market share to strengthen its position as
Indias second largest operator in terms of revenue.
This is a significant achievement for us and reflects the trust customers have bestowed on the
company, said Marten Pieters, Managing Director and CEO, Vodafone Essar, In the past three
years, we have invested over Rs. 20,000 crores to expand our operations to service customers in
India. We will utilize our global and Indian experience to deliver the best products and services
to our customers.
Starting with about 28 million subscribers across 16 circles in May 2007, Vodafone Essar today
has 100 million customers and its footprint has extended to all the 23 circles in the country. This
journey is a testimony of Vodafones success in a highly competitive and price sensitive market.
Around 60% of the Companys customer additions now come from upcountry areas. With a
distribution reach of about 1.2 million outlets, Vodafone is well-geared to serve customers in the
remotest corners of India.

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PRESENCE
Vodafone currently has equity interests in 31 countries across five continents and around
44 partner networks worldwide.

LOGO

A new visual identityfrom the deep pink logo of Hutchison-Essar to Vodafones trademark
deep red speech mark introduced in 1998.
Advertisement:
The inaugural TV commercial showed the trademark pug (minus the boy) moving out of a pink
kennel into a red one. An energetic version of Hutchs signature You and I tune played
towards the end, as the super concluded, Change is good. Hutch is now Vodafone. There were
four
more commercials featuring Hutchs animated boy and girl, introducing the new brands logo to
consumers.
Vodafone put in close to Rs 150 crores into the first phase of the rebranding exercisewith Rs
60 crore in mass media and another Rs 90 crores in retail activities.

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In the second phase, Vodafone ushered in its global strap lineMake the most of now, which
replaced How are you? in 2001. By then it was apparent, the boy-and-pug chapter would
soon be 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 online
media as well as televisionto convey a value added service (VAS) offering in each of the
new commercials.

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 with Zoozoos and pug as successful ad campaign.


Products and services in India:
Average cost of calls: 2 US cents per minute
Average revenue per customer: US$6.4 per month
853,039 points of sale, covering 65% of the population
With more than 3 million Vodafone-branded, affordable handsets sold in
2008/09, Vodafone ranks among the top five handset brands in India.

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Brand and customer communications


In the Brand Z most powerful brands ranking: Ranked 11th globally.
In telecom industry it proudly stands as world no. 2 after China
And no. 2 GSM service provider in India after Airtel.

Distribution
Direct distribution-Number of directly owned stores 1150+
Vodafone directly owns and manages over 1,150 stores. These stores sell services to new
customers, renew or upgrade services for existing customers, and in many cases also
provide customer support.
A standard store format, which was tested in 2006, was rolled out in 11 markets during the 2008
financial year. All stores in India were rebranded as Vodafone and over 40 stores were
refurbished to the Groups standard format.
The Group also has over 6,500 Vodafone branded stores, which sell Vodafone products and
services exclusively, by way of franchise and exclusive dealer arrangements.
The internet is a key channel to promote and sell Vodafones products and services and to
provide customers with an easy, user friendly and accessible way to manage their Vodafone
services and access support. Additionally, in most operating companies, sales forces are in
place to sell directly to business customers and some consumer segments.
Philosophy- OUR PEOPLE
Vodafone rely on its people their enthusiasm, their talent, their commitment to maintain
and build on the success of our business, even more so in todays competitive market. It
depends on people to deliver excellent service to its customers.
Vodafone believe that the better experience our people have at Vodafone, the better service
they will give our customers. Vodafone Group employs approximately 71,000 people around
the
world.

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Vodafone want to enhance its reputation as an employer that provides excellent development
opportunities, equipping employees with the skills and experience they need to help
Vodafone compete successfully.
It aim to ensure that all its working environments are inclusive, safe, promote wellbeing,
treat people with respect, and engage employees, and offer attractive incentives and
opportunities.
Vodafone People Strategy
The Vodafone People Strategy sets out a clear statement of its commitments to employees
and expectations of them in six key areas.

Table No. 2.02

Page 29 of 79

VODAFONES MARKETING MIX


A longer term marketing strategy is underpinned by careful planning and a successful
marketing mix. The marketing mix is a combination of many features that can be represented by
the four Ps.
product - features and benefits of a good or service

place - where the good or service can be bought


price - the cost of a good or service
Promotion - how customers are made aware of a good or service.
Product
A product with many different features provides customers with opportunities to
chat, play games, send and receive pictures, change ring tones, receive information
about travel and sporting events, obtain billing information - and soon view video
clips and send video messages.
Vodafone live! Provides on-the-move information services.
Place
Vodafone 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
to explain the different options available.
Price
Vodafone wants to make its services accessible to as many people as possible: from
the young, through apprentices and high powered business executives, to the more
mature users.
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
their phone on line.

Page 30 of 79

Vodafone UK gives NECTAR reward points for every 1 spent on calls, text
messages, picture messages and ring tones.

Promotion
Vodafone works with icons such as David Beckham to communicate its brand values.
Above the line
Advertising on TV, on billboards, in magazines and in other media outlets reaches
large audiences and spreads the brand image and the message very effectively. This is
known as above the line promotion.
Below the line
Stores have special offers, promotions and point of sale posters to attract those inside
the stores to buy.
Vodafone's stores, its products and its staff all project the brand image.
Vodafone actively develops good public relations by sending press releases to
national newspapers and magazines to explain new products and ideas.

Vodafone's marketing strategy


Vodafone's marketing aim in the UK is to retain market leadership.
Vodafone's strategy is product-led; the company is continually developing new products
and services 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 are
becoming more demanding and suppliers have to listen. Vodafone must feed this back into its
product 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
add value 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
provide added value services and competitive charges to existing customers who are becoming
more

sophisticated and demanding.


Page 31 of 79

For example, young people think hard about which mobile phone to buy. In their search for the
widest range of appropriate services and the best value for money, young people in particular
examine catalogues, surf the Internet and study what their friends have bought. Trying to sell
to them is tough.
In order to retain market leadership, Vodafone has established a set of marketing
objectives. These are to:
Obtain new customers
Keep the customers it already has
Introduce 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
services offered to keep ahead of its competitors. Vodafone also communicates regularly with
its customers to keep them well informed of the benefits of all Vodafone products.

Page 32 of 79

2.2 ABOUT MERA GAON MERA DESH PROJECT


The new mantra for the Telecom sector
R OT I, KA PD A, MA KA A N AUR
MOB IL E
Market /Products

Present

New

Present

Prepaid/Post-paid services

Wi-max,3G

New

Rural Sector

M2M services,WiBro

In order to diversify its current market portfolio, Vodafone is launching a global Machine to
Machine (M2M) service platform for helping companies to deploy and manage large, wireless
M2M projects for applications in customer service enhancement and central control and
automation of projects. In the Indian context, M2M is an untapped sector with enormous
potential for growth. WiBRO (Wireless Broadband) has the capacity to overcome data rate of
limitation of mobile phones by providing a staggering 30 to 50 MB/s speed. As in the case of
M2M platforms, WiBRO is a very promising market in India. Providing these two services in
India would open new avenues of growth for Vodafone and would help it diversify into
different market verticals.
With this diversification and for more market penetration in the rural areas Vodafone has
started a new project Mera Gaon Mera Desh. Since more and more companies are entering in
the telecom market of India so its 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 in number of players. The profits have reduced due to the slashing of call rates.
However, the profits realized are due to increasing usage rates .Stiff competition is giving rise
to fear among companies of losing the present customers so company has decided, with more
service to customers, to enter into the rural areas where the subscription rate is low and focus its
activities on servicing this sector and increasing subscriber rate.

MARKET DEVELOPMENT
India 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 telecomm
sector growth is to come from the rural sector. A major chunk of Vodafones revenue is still
generated from tier 1 and tier 2 cities. This leads Vodafone to place further focus on rural
penetration 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 with
it. Project MOST (Mobile Operators' Shared Towers) by COAI was initiated in order to reduce
these heavy costs by sharing infrastructure between the service providers, hence resulting in
better coverage and quality. Optimal rural penetration can be achieved by taking into account
the economic environment prevailing in the rural sector. This would encompass the socio
economic factors and would hence provide a more regional focus to the advertising and
promotional strategies 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 a
municipality, corporation or board, with density of population not more than 400 per km sq. and
with at least 75% of the male working population engaged in agriculture and allied activities
qualify as rural.
Keeping this in mind, looking at strategic first mover advantages, company has
started the project MGMD. The company has identified areas where subscriber base rate is
very low. So to increase that rate in these areas company has come up with some plans. These
sites are identified by the technical department by measuring the traffic on BTS (Trans receiver
stations), 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 and
other activities.

THE BOTTOM OF THE PYRAMID APPROACH


The bottom of the pyramid concept was given by Management Guru C. K. Prahalad;
According to this concept 4 Billion people living under $2 per day comes under this category.
Benefits of Bottom of PyramidThere is money at the bottom of pyramid: it is a viable market.
Access to this market requires unconventional approaches and these will be fruitful
in long 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 FMCG
companies in rural areas. This MGMD project of Vodafone is some of the like project in
the Telecom Sector.

Chart No. 2.04

Page 35 of 79

MGMD 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 and
MRP of Rs.40.
Vodafone have launched a special promotional offer for the entire customer base of the
FOCUS Sites 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 36 of 79

Support 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 37 of 79

METHODOLOGY

Page 38 of 79

CHARTER-3
METHODOLOGY
Research Methodology is a highly intellectual Human activity used in the investigation of
nature and matter and deals specifically with the manner in which the data is collected, analyzed
and interpreted.
Its basically the methods you intend to adopt to gather information in pursuit of answers to
the research questions.
3.1 Research Design.

Exploratory Research - Exploratory research is undertaken when few or no previous


studies exist. The aim is to look for patterns, hypotheses or ideas that can be tested and will
form the basis for further research. Typical research techniques would include case studies,
observation and reviews of previous related studies and data.

Descriptive Research- Descriptive research can be used to identify and classify the elements
or characteristics of the subject, e.g. number of days lost because of industrial action. Quantitative
Techniques are often used to collect, analyze and summarize data.

Analytical Research- Analytical research often extends the Descriptive approach to suggest
or explain why or how something is happening, e.g. underlying causes of industrial action. An
important feature of this type of research is in locating and identifying the different factors (or
variables) involved.

Predictive Research- The aim of predictive research is to speculate intelligently on


future possibilities, based on close analysis of available evidence of cause and effect. e.g.,
Predicting
When and where future industrial action might take place.

Page 39 of 79

Our Research Design:


Descriptive Research design has been followed for this marketing research. As in descriptive
research proper classification or identification of the elements and characteristics of the
subject is done.
Here as we have to identify the basic reasons for the situations studied, we opt for
descriptive research.
3.1.1 Type of Research
Here our research is more of quantitative type but in some issues pertaining in the village
we took 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
highly detailed 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
examining and 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
the situation here.
3.1.2 Population/Universe:
In research terminology Universe or population means an entire set, objects or events of
concern to a research study, from which a sample is drawn. Or in other words, population is the
theoretically aggregation of the elements in study.
Here in this project data of the MGMD sites is provided by the company and we identified
some conventional and unconventional outlets present in the areas of our sites.
We covered these outlets and get our questionnaires filled and did our promotional activities
there. Our universe was mainly in the rural areas of Haryana as the MFS (MGMD Focus
Sites
were situated in rural areas only).

Page 40 of 79

The universe includes:


Conventional Outlets

Telecom

STD / ISD

Chemist

Petrol pumps

Photo Shops

Pan Bidi Shop

General, Kirana

Gift shops

Music Shops & DVD Library

Cyber Cafs

Unconventional 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 41 of 79

The MGMD focus sites given to me were:


M.F.S of GANNAUR (MD- Samalkha)
1. Purkhas.

11. Kailana.

2. Rajlu Garhi.

12. Kasanda.

3. Begha.

13. Barahi Industrial Area.

4. Shamri Buran.

14. Sanpera.

5. Sardhana.

15. Bajana Khera.

6. Dobheta.

16. Datauli.

7. Ghasoli.

17. Panchijatan.

8. Bhanwar.

18. Tajpur.

9. Kami.

19. Rajpur.

10. Khubru.
M.F.S of M D- Biswamil.
AD- Barota.
1. Jagdishpur.
2. Halalpur.
3. Nahri.
4. Jhundpur.
5. Abbaspur.
6. Malha Majra.
AD- Kharkhoda.
1. Rohat.

6. Kundal

2. Anandpur Jharot.

7. Khanda

3. Thanakalan.

8. Ladravan.

4. Rohna.

9. Pahaladpur.

5. Gopalpur.
Page 42 of 79

3.1.3 Sample Size:


A sample is a sub-set of individuals selected for study from among people or objects within a
defined 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,
so we decided to cover all the available shops there. This comes out to be 150. This becomes
our sample size.
3.1.4 Sampling Technique:
Sampling is the process of selecting a number of individuals for the study. Sampling enables
the researcher to study a relatively small number of units in place of target population, and to
obtain data 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
to cover as many shops as possible. And the selection was Random.

Page 43 of 79

3.2 Data Collection:


The data collection is an important part of research. Without data any research is impossible.
The data 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 by
interactions with the respondents. Primary Data collection is an important part of research;
here data collection was done through Questionnaire and interviews.

Secondary Data: It is the data which is collected already in the past; it can be collected
with the help of secondary source like internet, books, journals, articles etc. The data regarding
MGMD focus sites, their population, already running ueo, etc was provided to me from
company. Also during drafting of report all information was gathered from articles about
company in magazines and from websites. As Vodafone is world renowned company so it was
not 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. The
questionnaire was designed so that we can know about their knowledge of telecom particularly
about Vodafone and about starting as our outlet. We also collected information regarding the
hurdles and issues they are facing in starting this business and what they think about Vodafone
as a user.
Also with questionnaire another instrument used for this research was interview asThe low level of respondents, therefore face to face interviews were found suitable to
get reliable information.
The interview schedule was used because the researcher wanted to collect data
with probing questions.
Keeping the objective in mind the questions were designed. We use the interview tool to
get their data and response.

Page 44 of 79

3.2.3 Method for Data Collection:


The method used for data collection was face to face interaction and interviews. During this
project period I visited the rural areas personally and get the data from them through
personal interaction.
It was a great experience to talk directly with the villagers about their business and scope for
Vodafones promotion and business there.

Page 45 of 79

DATA ANALYSIS

Page 46 of 79

CHAPTER 4
DATA ANALYSIS
We prepared a questionnaire to get the response of the retailers is the rural area sites. Here I am
going to analyze this questionnaire with the help of Pie- charts. These pie-charts give the idea
for various 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
of the villagers in statistical data form.
These pie charts are of very useful as we can draw information from them which can be proved
to be very valuable now or in future. Any company, who wants to enter in a rural area, wants
proper information available about that area in advance to form the strategies and this analysis
is of great help for them.

Page 47 of 79

Q.1 The type of outlet visited:


Table No. 4.01

Valid
a) 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.
TOTAL

Frequency

Percent

Cumulative
Percent

75
10
20
5
5
3
15
17

50
6.7
13.3
3.3
3.3
2
10
11.3

50
56.7
70
73.3
76.7
78.7
88.7
100

150

100

Chart No. 4.01


This pie-chart reveals that most of the shops visited in the villages were Kiryana store and there
were 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-bidi
shops, Mobile repair shops, chemist etc.

Q.2 Are you currently a Vodafone user?


Table No. 4.02
Frequency

Percent

Cumulative
Percent

30

20

20

120

80

100

150

100

Valid
No
Yes
TOTAL

Are you currently a Vodafone user?


NO
YES

Chart No. 4.02


When we asked them what connection they are using then we found that most of our respondent
shopkeepers were using Vodafone services and replied positively for this question which is 80%
of total respondents, it shows that Vodafones subscriber base is increasing in rural areas and
people are adopting its services.

Q.3 what is your experience with Vodafone?


Table No.4.03

Valid

Very
Satisfied
Satisfied
No opinion
Unsatisfied
Total

Frequency

Percent

Cumulative
Percent

105

70.0

70.0

30

20.0

90.0

4.7

94.7

8
150

5.3
100.0

100.0

What is your experience with Vodafone?


Very Satisfied
Satisfied
No Opinion
Unsatisfied

Chart No. 4.03


For their satisfaction level about the services of Vodafone most replied positively as 70% were in
the category of very satisfied, 20% were satisfied with 4.7% didnt answer this question and
5.3% were not satisfied with the services. But majority that is 90% were satisfied.

Q.4 what is the reason for your this experience?

(A) Is Network very good?


Table No. 4.04

Valid yes

Frequency
135

Percent
90.0

Cumulative
Percent
90.0

No

15

10.0

100.0

150

100.0

Total

Yes
No

Chart No. 4.04


When asked about the Network of Vodafone there in their village, 90% said that network is
very good and they do not face any problem in network but 10% said that they face problems
while talking and there is problem of network as in some places in the village roaming starts on
their phone and phone gets cut (Eg.Vpo-tanda).
Page 51 of 79

(B) Is Customer Care Service Very good?


Table No. 4.05

Valid yes
No
Total

Frequency
105
45
150

Percent
70.0
30.0
100.0

Valid
Cumulative
Percent
Percent
70.0
70.0
30.0
100.0
100.0

Yes 70%
NO 30%

Chart No. 4.05


When asked about their experience with customer care service that majority i.e., 70% said that
they 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
resolved properly and balance gets deducted for services they had not activated.
(C) Are Roaming Facilities Good?
Table No. 4.06

Valid yes
No
Total

Frequency
120
30
150

Cumulative
Percent
Percent
80.0
80.0
20.0
100.0

100.0

Yes 80%
NO 20%

Chart No. 4.06


For a question regarding roaming services most of the people i.e. 80% said that Vodafones
network in all India is very good and where ever they go the network is always very good and
they do not feel any problem in outside Haryana while 20% were complaining and said that in
areas outside Haryana Vodafone is not that strong and also the charges should be low.

Q.5 Do you know about Vodafones Thank you card?


Table No. 4.07

Valid yes
No
Total

Frequency
114

Percent
76.0

Cumulative
Percent
76.0

36

24.0

100.0

150

100.0

Do you know about Vodafones Thank you card?

Yes
NO

Chart No. 4.07


When asked about whether they know about Vodafones Thank You Card coupon which they
can get from Vodafone store most people replied positively i.e. 76% said yes they know and get
it every month while 24% said they do not know about this. It shows that Vodafones promotion
is good in rural areas where majority of people are aware about its TYC and as 24% are still
unaware so it has to promote its campaigns more.

Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?
Table No. 4.08

Valid

Frequency

Percent

17

11.3

Cumulative
percent
11.3

*Only E-top value 5

3.3

14.6

*Both

5.4

20

*None

120

80

100

Total

150

100

* Only coupons

None 80%
Only coupons 11.3%
Both 5.3%
Only E-top value 3.3%

Chart No. 4.08


When asked about whether they know anything about telecom business and are they selling any
type of recharge than most of the shopkeepers said that they are not into any such recharge
selling (80%), while some were into coupons selling and e-top value selling. This made easier
to open our work there , as some recharge was already available and those people had some
knowledge of this business.

(ii) If selling then of which companies?


Table No. 4.09
Frequency
Valid

Vodafone
Airtel
Idea
Tata

15
15
10
10

Other

15

Which companys recharge available?

15

10

Freq

OTHERS
TATA

IDEA

AIRTEL

VODAFONE

Graph No. 4.01


When we asked them about all companies of which they were selling the recharges than
majority were selling Vodafone and Airtel recharge coupons and others include Idea, Tata,
BSNL, and Reliance.

Q.7 If you are not selling any, then do you have any idea about telecom business?
Table No. 4.10

Valid yes
No
Total

Frequency
114

Percent
76.0

Cumulative
Percent
76.0

36

24.0

100.0

150

100.0

YES
No

Chart No. 4.09


Those who were not into this business, we asked them about their knowledge of telecom
business that in reply most of the respondent shopkeepers 76% replied that they had no
idea about this only 24% said they are having some idea of this business and they know
about recharge selling and commission which they will get on this.

Q.8 (i) Are you interested in selling Vodafone?


Table No. 4.11

Valid yes
No
Total

Frequency
25
125
150

Cumulative
Percent
Percent
16.7
16.7
83.3
100.0
100.0

Are you interested in selling vodafone?


YES

No

Chart No. 4.10


When 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
sell our recharges. There were several reasons of people about denying this.

(ii) If no, then any particular reason for not selling?


Table No. 4.12

Valid

Illiterate
Age Factor
Less Commission
Several shops nearby
Financial issue
Credit issue in village

Frequency
20
25
40
30
25
35
25

Other

If no, then any particular reason for not selling?


50

40

30

20
Frequenc

10

Illiterate Age factor less commission

several shops near Financial credit issue

others

Graph No. 4.02


When asked about their reasons for not starting this business than majority said the commission
is less, others said the villages take things on credit and do not pay for them frequently so
credit issue is also a big problem among villagers. Other reasons include Age factor as most of
the shopkeepers were of older age, several shops were there nearby, financial issues etc.

Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?
Table No. 4.13
Frequency
Valid

Only
coupons
Only E-top
Both
Total

Percent

Cumulative
Percent

12

23.0

23.0

8
32
52

15.4
61.6
100.0

38.4.0
100.0

Chart No. 4.11


Those people who got convinced and satisfied with our presentation and promotion were
readily agreed for opening our outlet there and filled the ACT form new E-top connection and
took coupons (61.6%), while 23% opted for coupons only as many of them wanted to check and
test the sales there first before starting work fully and some were not ready to take e-top
recharge as they find it complex, while 8% took E-top recharge only.

Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?
Table No. 4.14

Valid yes
No
Total

Frequency Percent
14
35
26
65
40
100.0

Cumulative
Percent
35
100.0

Do you want to sell new SIM (New Vodafone connections)?

YES
No

Chart No. 4.12


When we asked them, are they ready to sell new sim connections than majority i.e. 65% said
no as they gave certain reasons for this while only 35% said yes at once.

(ii) If No, then reason for not selling?


Table No. 4.15
Frequency
Valid New connection
sale less
I.D. issues
Financial issue
Others

16
15
10
7

If No, then reason for not selling?


25

20

15

10
Frequenc

I.D. issues

Financial issue

Others

New Connection
less Sale

Graph No. 4.03


When asked about the reasons for not selling the new connections Majority said that in villages
new connections sale is less, others also said that I.D. issue is there and its risky for them
though we gave them solution for this query, Others said they cannot start this as they do not
have finance available, while some said they cannot compete shops in markets nearby who are
offering sim at very low price.

FINDINGS
AND
THEIR IMPLICATIONS

CHAPTER 5
FINDINGS AND THEIR IMPLICATIONS
FINDINGS:
Vodafone has a good customer base in rural areas as well. As among the rural
villagers we have visited, almost 80% were using Vodafone and were aware about its
various
schemes like TYC, and other benefits.
The users were found to be very satisfied with the services they are getting and network
is very good in rural areas as well.
Among the shops we have visited almost 80% were not selling any recharge of any
company. Among others most were selling the paper coupons only.
Although most of the villager shopkeepers were not into this business of telecom were
almost 75% were having some knowledge about this business. They know about various
products of Vodafone and recharges available, E-top recharge, paper recharge, and the
commission they will get for selling (though not exactly the percentage) etc.
Most of the shopkeepers were not interested in selling Vodafone in their shops. They
gave several reasons for this and most frequently given reasons include Illiteracy, Age
factor, Less commission, Financial issues, Credit issues as villagers take things on
credit
and not pay several times.
Those interested most of them took both recharges paper and E-top. Some took only
paper recharge as they wanted to first test this business and wanted to see if they will
get
customers initially.

For selling SIMs (New connections) most of the shopkeepers said No. They were not
ready to sell new connections as they find it very complex and face certain problems.
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Most of the problems they are facing include New connection sale is less in villages and
I.D issues also made them to not to sell this.
Overall people were not very advanced and they were ready to cooperate and listen
about the company and things we were saying. Most who understood about this were
ready to
start 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
new ideas to get rid of them.
Vodafone can use the findings to get more penetration into the other rural areas and can
design 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.
They can also implicate this survey for getting the understanding of the rural market
they want
to concentrate on.
Companies who are interested in entering rural areas can use this project work to know
the problems of villagers, which can help them guide in initial steps of entry.

Page 65 of 79

LIMITATIONS
OF
THE STUDY

Page 66 of 79

CHAPTER 6
LIMITATIONS OF THE STUDY
The limitations of our projects include:
This project work is of two months and only few villages were visited, Sample size is
also 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 have
responded truly to all the questions.
Most visits were done in the afternoon time, when most of the villagers are in resting
mood and we found some of the shops closed. These may be potential shopkeepers who
may have responded well.
Though most attention is given to analysis but there may be some human error in
analyzing which can create error in generalizing.

Page 67 of 79

RECOMMENDATIONS/
SUGGESTIONS

Page 68 of 79

CHAPTER 7
RECOMMENDATIONS / SUGGESTIONS
This research throws light on various Issues and conditions of Vodafones Rural Market and
can also help Vodafone to improve on different fronts in order to have an edge over its
competitors. Based on the analysis and findings of my research I would like to give
following recommendations:
Most of the shops present in the villages are either Kiryana or paan-bidi type, so
company should come up with new plans to lure these retailers who are least ready for
this
business. Also for visiting the shops morning or evening time should be chosen as in
the afternoon we found most of the shops were closed in village.
Most of our respondents were using the Vodafone, so it shows Vodafones services are
good there. Company should use it as the base for increasing its customer base.
Though most of the respondents knew about Vodafones TYC, but a sufficient number
was unaware. So company should promote about TYC in the rural through Muniyadi, or
pamphlets and banners.
Though most our respondents were not selling recharges but they had a fair idea about
this business so this is of great use for Vodafone. The process becomes easy if they know
about it. So company should focus more on satisfying the shopkeepers about their other
issues and hurdles they are facing in opening recharge outlet.
Company should focus more on learning the shopkeepers so that they will be able to do
this business well. The company should make them understand the E-top recharge
process severally as its not easy for some to understand in one go, also their benefits in
Best Deal, etc.
Most of the responses said the commission is less and Credit issue is there in village,
for this Vodafone should come up with strategies to solve these frequent problems and
should make villagers understand this.

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As for selling new connections people were not ready, as they feel there is problem
regarding the I.D issue and finance for sim, whose sale is less so people feel their
money will be blocked if they buy sim. For this company can make new plan and can
provide new sim to them on credit basis whose payment can be made after sale, more
awareness and activities can be organized in village to sell more sim. If more
connections will sell
then only it can enhance its revenues rapidly.
As far as commission is concerned on sale, people less understood the Vodafone
currency system. They found it complex to understand and were more on selling the
paper
recharge as its easy. So company should consider this issue and should come up with
new alternative to give benefits to rural village retailers.

Page 70 of 79

CONCLUSION

Page 71 of 79

CHAPTER 8
CONCLUSIONS
Vodafone has a firm commitment to growth and aims to differentiate itself in India's highly
competitive communications environment by ensuring customer delight through personalized
customer 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 the Asia Marketing Effectiveness (AME) awards ceremony, the GSMA Global Mobile Awards
to its strong value proposition as Best mobile enterprise service.
The Company is taking every bit of effort to penetrate into the rural area and above analysis
shows 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
on rural market. Lowering the initial costs of entry is expected to keep company in profit
since reduced profit margins stand to be compensated by a larger consumer base.
If the company will carry on the good work of penetration into the rural
areas and enhance it by considering the suggestions made above in the report than it can pace up
the success of Mera Gaon Mera Desh project. Through its efforts of Promotion and penetration
activities it can surely become the first preference of every Indian may it be in any corner of
India and can become No.1 Telecom Company of India in near future.
This penetration will help in better connectivity and reduce the distances.

Page 72 of 79

BIBLIOGRAPHY

Page 73 of 79

BIBLIOGRAPHY
BOOKS
Cooper Donald R. & Schindler Pamela S., 9

th

edition, 2006, Tata McGraw-Hill

Publication 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 hall
Inc, Published by Ashoke K. ghosh, Connaught circus, New Delhi.
Ch-15 Advertising, promotion & public relations

ARTICLE
A Research article by CSK consulting Pvt. Ltd., Rural Marketing practices for Telecom
Services, 2008, Nokia Siemens networks.

WEBSITES
Cellular Operators Association of India, History of Cellular telephony
http://www.coai.com/history.php, 20 July 2010.
Instablogs, 10 Aug. 2010, Varinder Kaur
http://varinderkaur.instablogs.com/entry/vodafone -zoozoo-a-successful -marketingstrategy/, Vodafone Zoo Zoos A Successful Marketing Strategy.
Prahalad C. K., Bottom of the pyramid article
http://www.12manage.com/methods_prahalad_bottom_of_the_pyramid.html
Telecom 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 74 of 79

ANNEXURE

Page 75 of 79

ANNEXURE
1. QUESTIONNAIRE:
QUESTIONNAIRE
Vodafone Essar Company

Dear Respondent,
I am a student of Maharaja Agrasen Institute of Technology, I am doing this Project for
Vodafone, for the purpose of promotion and opening new outlets in Sites called MERA GAON
MERA DESH FOCUS SITES, and so for that purpose I have designed following
questionnaire. Needless to say, that your information will be kept confidential and wont be
disclosed to anyone.
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 76 of 79

Q.4 what is the reason for your experience?

Good

Bad

a) Network
b) Customer care service
c) Roaming facilities
d) Vodafone customer plans
e) Any other
-------------------------------------------------------------------------------Q.5 Do you know about Vodafones Thank you card?
a) Yes

b) No

Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?
a) Only coupons
b) Only E-top Value.
c) Both.
d) None.
(ii) If selling then of which companies?

Yes

No

a)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 77 of 79

Q.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 coupons
b) 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
------------------------------------------------------------------------------------

Page 78 of 79

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