A Marketing Research Report on

VODAFONEVODAFONE

NAMEShah Nikesh

CLASSS.Y. B.B.A

ROLL NO.

SEAT NO.____

ACADEMIC YEAR2008-09

COLLEGEShree H.N. Shukla College, Rajkot

SUBMITTED TOSAURASHTRA UNIVERSITY

GUIDED BYMrs. Dina Kanani

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DeclarationI the undersigned NIKESH SHAH a student of S.Y.B.B.A.,

here by declare that the project work presented in this respect is my

own work and has been carried out under the supervision of Mrs.

Dina Madam of H.N. Shukla COLLEGE, RAJKOT. This work has

not been previously submitted to any other university for any other

examination.

Date: Student Sign:

Place:

2

Preface

In this era of globalization where every minute India is moving

a step ahead and expanding it horizontally, management in India is

heading towards a profession. The demand for management’s

professionals is increasing day by day. In such a competitive

surrounding it becomes a requirement to have an edge over others and

B.B.A is such a course, which helps and assists students in doing that.

The practical studies are treated as a different subject in B.B.A

which helps the students in practically applying their theoretical

knowledge. It helps us to face competition, builds up our confidence

and also add something to our personality. Over and above in this fast

moving economy, here practical studies play an important role in

molding our carriers.

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Acknowledgement

I am much obliged to express my deep gratitude to all the

personalities who spared their valuable time and gave me helpful co-

operation and guidance for my Project Report.

I am heartily grateful to the management of Shree H.N. Shukla

particularly to the in charge Mrs. Dina Kanani for her helpful co-

operation, inspiration, interest and valuable guidance in preparing this

report.

It is a matter of a great pleasure and excitement for me. I

express my sincere thanks to both Gentleman and staff members for

devoting their valuable time and providing extreme co-operation and

guidance.

Last but not least, I would like to express my sincere thanks to

all respondents, friends and family members who have helped me in

preparing report through the preparation of this report.

Date: Student Sign:

Place:

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Index

NO. PARTICULARS PAGE NO.

1 General Information 6

2 Company Profile 19

3 Marketing Department 25

4 Finance Department 45

5 Personnel Department 53

6 Future Plans 66

7 SWOT Analysis 68

8 Suggestion 74

9 Contribution 76

10 My Observations 78

11 Conclusions 80

12 Bibliography 83

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GeneralGeneral

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InformationInformationContents

NO. PARTICULARS Page No.

1 Introduction 8

2 Overview of company 10

3 History & Development of Company 11

4 Achievements 13

5 Location of Company 17

6 Types of Management Structure 18

7

Introduction

Vodafone is a leading global telecommunications and data

services provider operating with a high growth strategy in 17

countries. It is a dynamic and agile player with a strong track record

as:

The first to market with an international 3G video mobile network.

One of the most profitable 2G mobile voice and data network operators.

As a major owner and operator of the fibre optic broadband and fixed-

line networks in England, serving as a telecoms gateway to China.

It is a world no. 1 in telecommunication.

Vodafone started mobile business in 1983 in our home market

of England and now serves over 40 million customers. Our array of

telecommunications and data network offerings provides a depth of

technological knowledge and insight into emerging consumer trends.

This breadth of services in so many markets around the world also

allows our operations to exploit opportunities, synergies and our

critical mass in order to maintain our leadership position. Our

telecommunications and data infrastructure support offerings in the

areas of mobile telephony (voice and video based multimedia), fibre-

optic broadband networks, fixed-line services and radio broadcasting

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VODAFONE is proud to be the first international provider of

3G video mobile services and an early adopter of the latest and most

promising mobile phone technology.

Another of our major telecommunications subsidiary is

VODAFONE Telecommunications International Limited which was

listed on the England and New York stock exchanges in October

2004. VODAFONE Telecom has a significant presence, and in many

cases is a market leader, in nine dynamic markets, operating or rolling

out mobile services in England and Macau, India, Israel, Thailand,

Ghana, Indonesia and Vietnam. The 3G network in England and a

fixed-line telecom running there on a fibre optic network is also part

of the VODAFONE Telecom business. VODAFONE Telecom is

built on a high-growth strategy focused on mobile

telecommunications services markets with economic prospects and

good demographics. A number of VODAFONE Telecom markets

such as India remain significantly under penetrated and offers

significant opportunities for future growth. In other markets such as

England and Israel, mobile phone penetration is higher but customers

are very eager to adopt new services and applications, offering growth

prospects in providing technologically-advanced value-added

services.

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Overview

Name of the company : Vodafone ltd.

Size of the unit : Large Scale Unit

Form of organization : Multinational co.

Web site : www.vodafone.in

Year of establishment : 1984 in England

Stage of product : Maturity

Name of the service : Post paid cards

Prepaid cards

Short Message Service

Voice mail services

Vodafone power service

“Through continuous innovation, VODAFONE promises to

liberate, stimulate customers from the shackles of time and spaces”

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History & Development of the company

Vodafone Limited is a leading international corporation

committed to innovation and technology with businesses spanning the

globe. Its diverse array of holdings range from some of the world's

biggest port operators and retailers to property development and

infrastructure to the most technologically-advanced and marketing-

savvy telecommunications operators. Vodafone reports turnover of

approximately UK 242 billion and UK 124 billion for the year ended

31 December 2006 and for the unaudited results for the six months

ended 30 June 2007 respectively With operations in 56 countries and

over 220,000 employees worldwide, Vodafone has five core

businesses - ports and related services; property and hotels; retail;

energy, infrastructure, investments and others; and

telecommunications.

Vodafone's achievements include being:

The world's leading port investor, developer and operator with 44 ports

across Europe, the Americas, Asia, the Middle East and Africa.

A pioneer of mobile multimedia communications with the launch of

third-generation mobile phones and networks.

A visionary and international telecommunications operator through

Vodafone Telecommunications International Limited which provides

mobile phone networks and data services in nine dynamic markets in

Asia, the Middle East and Africa.

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VODAFONE Whampoa Limited is among the largest

companies listed on the main board of the England Stock Exchange.

Flagship companies include VODAFONE Port Holdings,

VODAFONE Whampoa Properties, A.S. Watson, Cheung Kong

Infrastructure and VODAFONE Telecom.

VODAFONE dates back to the 1800s and while its operations

now span the globe, it continues to remain based in England.

VODAFONE's executives and staff are a multicultural mix as diverse

as the reach of the corporation's operations.

VODAFONE has a strong commitment to the highest standards

of corporate governance, transparency and accountability - principles

which have been recognized by the receipt of numerous awards and

commendations.

Landmark buildings in the Group's portfolio include the 62-

storey Cheung Kong Center in the Central district of England, the

Oriental Plaza in Beijing, and The Center in Shanghai. Prestigious

residential properties in the United Kingdom include Royal Gate

Kensington, Belgravia Place and Albion Riverside. Other holdings

include a stake in the Pacific Century Place Marunouchi office and

hotel towers beside Tokyo Station and a beach and golf resort in the

Bahamas.

The Group, together with Cheung Kong (Holdings) Limited,

has set up a joint venture company, Harbour Plaza Hotel Management

(International) Limited, to operate and manage hotels under the

portfolio of the VODAFONE Property division.

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13

Achievements & Accreditations

1. VODAFONE Essar Limited, VODAFONE Mobile Services

Limited, Fascel Limited, VODAFONE Telecom East Limited,

VODAFONE Essar South Limited, Aircel Digilink India Limited and

BPL Mobile Cellular Limited (jointly hereinafter to as VODAFONE)

shall use reasonable endeavors to check the accuracy of the

information published on its Site. VODAFONE and any other

VODAFONE product or service name referred to on the

VODAFONE website are trade marks of VODAFONE Essar Limited.

2. Content (information, communications, images and sounds

contained on or available through VODAFONE) is provided by

VODAFONE, its affiliates, independent content providers and third

parties. The contents of VODAFONE are copyright © VODAFONE

its affiliates, independent content providers or third parties. All rights

reserved. The contents of VODAFONE cannot be reproduced,

modified, transferred, distributed, republished, downloaded, posted or

transmitted in any form or by any means including but not limited to

electronic, mechanical photocopying or recording without the prior

written permission of VODAFONE Essar Limited. You agree that the

material and content contained within or provided by VODAFONE is

for your own personal use only and may not be used for commercial

purposes or distributed commercially.

3. VODAFONE will use its reasonable endeavors to maintain

VODAFONE in a fully operating condition. It is not responsible for

the results of any defects that exist in VODAFONE You should not 14

assume that VODAFONE or its content is error free or that it will be

suitable for the particular purposes that you have in mind when using

it. VODAFONE reserves the right to make subsequent changes to it,

and services may be modified, supplemented or withdrawn.

4. It is a condition of us allowing you access to the information on

VODAFONE that you accept we will not be liable for any action you

take relying on the information on VODAFONE. VODAFONE will

not be liable if your use of materials or information from

VODAFONE results in the need for servicing, repair or correction of

equipment or data, you assume any costs relating to the above.

VODAFONE reserves the right to charge for access to certain

information on VODAFONE. VODAFONE will inform you where a

charge will be incurred by you for accessing certain services or

information on VODAFONE.

5. If you’re PC does not support relevant technology including but not

limited to encryption you may not be able to use certain services or

access certain information on VODAFONE.

6. You may not mirror any material contained on VODAFONE on

any other server without the prior written consent of VODAFONE

Essar Limited. Any unauthorized use of the contents of VODAFONE

either under this clause or clause 4 above may be in breach of

copyright laws or trademark laws.

7. You acknowledge that VODAFONE has no control over and

excludes all liability for any material on the Internet which can be

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accessed by using VODAFONE Neither can we be deemed to have

endorsed the content.

8. By submitting any material to us via the VODAFONE website, via

email or otherwise, you do so in the knowledge that VODAFONE

may copy, modify, distribute or create a derivative work from that

content in any form. You warrant that the material is fit for

publication and agree to indemnify us if any third party takes action

against us in relation to the material that you submit. You warrant that

you believe VODAFONE may publish the material you submit and/or

make use of it or any concepts described in it in our products or

services without liability and you agree not to take action against us in

relation to it.

9. In a few areas of VODAFONE we may ask you to provide personal

information that will enable us to use the information you provide us

with to keep you informed of our latest products and services after

your visit to VODAFONE The personal information will be used in

accordance with our online privacy policy.

10. You agree not to cause, nor knowingly allow others to cause, any

nuisance, annoyance, or inconvenience, whether to VODAFONE or

any of its customers or users of VODAFONE by any means. You also

agree not to use VODAFONE to transmit or post any material which

is defamatory, offensive or obscene or menacing character or which

may in our judgement cause nuisance, annoyance, inconvenience to

VODAFONE, or any other person or which is illegal. You will not

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use VODAFONE such that you would cause the whole or part of

VODAFONE to be interrupted, damaged, and rendered less efficient

or impaired in any way.

11. The service is accessed via the World Wide Web which is

independent of VODAFONE and VODAFONE. Your use of the

World Wide Web is solely at your own risk and subject to all

applicable national and international laws and regulations.

VODAFONE have no responsibility for any information or service

obtained by you on the World Wide Web.

12. VODAFONE does not accept responsibility for any defects that

may exist or for any costs, loss of profits, loss of data or

consequential losses arising from your use of, or inability to use or

access or a failure, suspension or withdrawal of all or part of the

service at any time. VODAFONE excludes all liability whether in

contract, tort (including liability for negligence) or otherwise for the

accuracy, suitability, quality or completeness of any information and

the value and integrity of goods and services offered by third parties

over VODAFONE You acknowledge that we have no control over

and we exclude all liability for any material on the World Wide Web,

which can be accessed by using VODAFONE.

13. We may suspend or vary the whole or any part of the

service offered on VODAFONE for any reason, at any time at our

sole discretion.

14. VODAFONE reserve the right to vary the terms of this contract

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from time to time, such variations becoming effective immediately

upon posting of the varied Legal Statement on VODAFONE By

continuing to use VODAFONE you will be deemed to accept such

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Location of The Company

When a new business unit is to be established the main

decision to be taken about location of the industry. Location of

the unit is a vital factor to deciding the profitability of company.

There are many factor which are to be kept in mind while

selecting the location of the plant. It includes internal and

external factors. Even if promoters have best ability to invest

and have the effect management skills but if they don’t take

care of location, it will decline prosperity of the company.

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Types of Management Structure

Board of Directors

Production Marketing Finance H.R.Department Department Department Department

Finance Manager H.R. ManagerManu. Dept. Assembling

Dept.Mkt. Executive

Supervisor Supervisor Employee

Worker Worker

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Company Company 21

ProfileProfile

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Contents

Sr.

No.

Particulars Page No.

1 World wide VODAFONE 21

2 Presence of VODAFONE a Cellular 22

3 VODAFONE – The Brand 23

4 In the Pipeline 24

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World Wide VODAFONE

VODAFONE is a leading global telecommunications and data

services provider operating with a high growth strategy in 17

countries. It is a dynamic and agile player with a strong track record

as:

VODAFONE started mobile business in 1983 in our home

market of England and now serves over 40 million customers. Our

array of telecommunications and data network offerings provides a

depth of technological knowledge and insight into emerging

consumer trends. This breadth of services in so many markets around

the world also allows our operations to exploit opportunities,

synergies and our critical mass in order to maintain our leadership

position. Our telecommunications and data infrastructure support

offerings in the areas of mobile telephony (voice and video based

multimedia), fibre-optic broadband networks, fixed-line services and

radio broadcasting

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Presence of VODAFONE a

Cellular

The biggest merger over took place in the history of wireless

telecommunication services. The first time ever, the Essar group

joined hands for working together. In the year 2006

VODAFONE Cellular operates in Andhra Pradesh,

Chhattisgarh, Goa, Gujarat, Madhya Pradesh and Maharashtra

Mumbai and Delhi

VODAFONE Cellular is committed to achieving total

coverage. Its advanced Cellular network build up helps VODAFONE

offer seamless coverage in over 1 towns and unsurpassed highways

coverage across all its circle of operation. These include 23 districts

from Andhra Pradesh, 53 cities across Madhya Pradesh, entire

Gujarat, 400 kms of highway across 85 towns and cities. It is the first

cellular operator in India to offer uninterrupted highway coverage

across all its circle of operations.

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VODAFONE – The Brand!

Brand Name : - VODAFONE Ltd.

Brand Person : - ARUN SARIN

Brand Delivery : - World class Cellular Telephony

with value Added Services

Brand Presence : - In the state of Gujarat, Madhya, Bihar,

Pradesh, Maharashtra, Goa, M.P., U.P.,

Andhra Pradesh, Chhatisgarh, Delhi, H.P. etc.

Brand Colour Significances : -

* The White background : - Youth & Energy

* Red Colour : - Energy

* Red Colour Text : - Solidarity

* The VODAFONE : - Innovation

Brand Launch : -

22th August, 2007

A media spent of Rs. 40-42 crores in T.V advertisements, Print ads,

Murals, brand launch parties, P.R.Campaigns, in all a high decibel

and Discussed launch.

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In the Pipeline

The current period is a very crucial one for all the cellular

operators in India, due to a simple reason of a cold cellular war being

on, internally within the competitors as well as externally to be fought

with the WLL and the TRAI. This being the gestation period for the

WLL cellular operator to be in the market has to launch, innovate and

improve their schemes on a more customer friendly based, so that

their clientele is intact. In such a situation price crunches on

outgoings, free incoming calls, free airtime, and other innovated and

users-friendly value added services are the only options.

To be intact at what VODAFONE Cellular is today, also

requires carrying out any of the above options and thus the one major

plan in the pipeline, coming in within 7-8 months is to exceed

customer usage of cellular phones than landline users which presently

is 10 crores, compared to landline users of 4 corers.

Secondly to develop and synergies on such value Added

Techniques that are customer friendly and beneficial to the society.

Thirdly in the coming months they are planning to reduce the

cost of airtime, so that there is a benefit to the users.

A few more cell site launches, appointments of customers’

convenience center, Retailers and distributors are in the pipeline,

which would be beneficial to all concerned.

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MarketingMarketing DepartmentDepartment

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Contents

Sr. No. Particulars Page No.

1 Importance of marketing Department 27

2 Organization Chart 29

3 Marketing – Yesterday & Today 30

4 Advertising 31

5 4 P’s of marketing 37

6 Market Share 43

7 Competitors 44

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Importance of Marketing

DepartmentMarketing is the focus point of all business activities because

the objectives of all business enterprise are to satisfy the needs and

wants of the customers. Production and purchase has no meaning

unless a firm is able to market the goods and services. Nothing

happens unless somebody sells something. Marketing is the

distinguishing feature of business. A business is essential part from all

other human organization by the fact that it markets the product or

services. Marketing is the basic operative function of all business

firms. It serves on the basis of business planning and generates

revenue for the firm. Efficient marketing management is essential for

the survival and growth of every enterprise.

Marketing is a system of integrated business activities designed

to develop marketing plans and programs leading to the satisfaction of

customer wants.

Marketing department represents an important functional area

of business management efforts for the flow of goods and services

from the producer to the consumers.

Marketing department of the VODAFONE Cellular Limited is

a crucial part of its organization. The company can achieve its

subsidiary objectives along with the primary objectives with the help

of marketing department. It not only helps the company to achieve the

goals that are directly related to marketing department but also helps

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in achieving the goals that are related to other departments of the

organization.

With the help of the marketing department VODAFONE

Cellular as a company has not be successful in gaining the sales

volume but also earned goodwill for itself. As a result of the efforts

made by the marketing department VODAFONE Cellular is enjoying

a prestigious position in the telecom industry.

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Organization Chart

CMO (Chief Marketing Officer) -Bombay

DGM (Marketing)(Director General Manager) - Ahmedabad

AssistantManagerOutdoorMarketing

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AssistantManager - Prepaid

AssistantManager - Postpaid

Assistant Manager (Value Added Service)

Marketing Yesterday & Today

Business is changing at the speed of thought – literally, as

across the globe, somewhere or the other; someone comes up with

something that revolutionizes the entire concept of business, as it is

understood then. To keep pace with these developments, marketing

has become more intricate and scientific than ever before. Today no

firm can afford to rest on past laurels and be complacent about its

market. Competition is more intense and cutthroat than ever before,

and the firm has to meet all these challenges, most in the form of

direct or indirect marketing strategies.

Yesterday was different, in the sense that firms that enjoyed a

good market reputation did not need to market themselves to their

consumers again and again. But today, times have changed. Keep

competition poses challenges that have to met and countered, and the

customers are more demanding than they were around 20 years back.

Past achievements are no longer a company’s claim to supremacy.

Earlier, marketing was confined to the narrow scope of selling.

But now, marketing is concerned with all activities aimed at finding

wants and filling them. The mantra followed the world over is

“customer is the king”. It is the customer alone who keeps the

business going and provides employment to people. If the current

trends were anything to go by, the future would only add to the

misery of unprofessional or pedantic forms. Only firms willing and

able to change according to changing market conditions and

consumer demands would thrive in the market.

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ADVERTISING

“The best advertising is done by satisfied customers”

-Philip Kotler

Advertising can be defined as mass paid communication of

goods, services or ideas by an identified sponsor. It is paid

communication because the advertiser has to pay for the space or time

in which his advertisement appears in the recognized media such as

news paper, magazines, radio, T.V., Cinema film, posters, etc.

Advertising can create market for a new product. It is very powerful

tool for the creation and retention of consumer demand.

VODAFONE Cellular Limited spends more than 30% of its

profit in advertisement. It uses almost all media for its advertisement.

VODAFONE Cellular Limited does its advertisement through ‘Lowe

Lintas’ which is an advertising agency. VODAFONE’s advertisement

is such that it informs guides; protect buyers and helps in increasing

the standard of living.

VODAFONE Cellular Limited use following Medias for

advertisement

Print Media: -

It gives advertisement in each and every newspaper,

magazines, and periodicals. The company also distributes calendars,

cards during Diwali, diary, pens, clocks, key chains etc. to Retailers,

customers.

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Posters: -

It uses printed posters which stick on the wall.

Banners: -

Company provides banners to each and every Retailer and also

to the Distributors.

Hoarding: -

The Company has done the use of hoarding at the major point

of cities in different parts of the country.

Glow Shine Board (GSB): -

It is an electric board which is given to each and every Retailer.

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Market Segmentation

What is market segmentation?

Market consists of buyers and buyers differ in one or

more respect. Market segmentation is a method for achieving

from limited marketing resources by recognizing differences in

the response characteristics of various parts of the market. In

simple words market segmentation is nothing but just diving

market into several groups.

There are mainly four types of market segmentation.

(1) Geographic Segmentation

(2) Demographic Segmentation

(3) Psychographic Segmentation

(4) Behavioral Segmentation

For “Vodafone” They produce only agriculture products

like ox operated drill, Tractor Operated Drill so for the company

main segmentation of their product is agriculture products users

farmers etc.

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Channel of Distribution

It is a process through which the goods or consumer from

the producers. Distribution decision relates with moving.

Product available at a right place, in right time for the right

people.

Distribution channels are system of economic institution

through which a producer of goods delivers them into the hands

of their uses. After the production the producer has to take

decision how to do selling and distribution their products. So,

how a product reaches to the consumer from the producer is

called “Channel of Distribution”.

Manufacturing or Production

Direct Consumer Dealer Court of (Gujarat)

Consumer

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Pricing Policy

Pricing policy means to determination our product, at how

much cost it can be sold. The pricing policy of company

influences it’s sales to a large scale. Price is one element of

marketing mix that produces revenues the other element of

marketing mix is product cost. A wrong pricing decisions avoid

effects of all right decisions related to products.

When a unit take pricing decision they have to consider

such factor like taxes, expenses, Govt. policy, Profit etc. In

“Vodafone” Pricing is deciding as under:

Raw material cost + Wages of labour + Accessories +

Other expenses + Taxes + Profit = Price of a product.

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After Sales Services

After sales services is the best part of the Vodafone. Because

they arrange a special department for that service. Means when any

customers buy a card of Vodafone after some days the after sales

service department is contact to the customer and asking them if there

any problems related to their product or not.

In short we can say once they sold their products to the

customers they are keep in touch with their consumers.

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FOUR P’S OF MARKETING MIXMarketing Mix of a Company includes 7 P’s of marketing. But

generally they can be precisely describe under four major heads viz.

Product mix, price mix, promotion mix, and place mix. Product mix

answers the question as to what, when, how, how much etc. to

produce. Price mix answers the question as to the produce good

should be sold at what price. Promotion mix suggests the promotional

activities that have to be undertaken. While place mix describe

distribution modes and channels

1. Product Mix: -

The product is the most tangible and important single

component of the marketing programme. Product said to be the heart

of the marketing mix. The whole marketing programme is based on

the product.

It is said that nothing happens in our economy unless there is a

sale or purchase of product. Product is the sole of all over marketing

activities without a producer; marketing can’t be imaged through

which the transaction takes place.

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It gives life to all marketing programme. So main responsibility

of management should be to know its product well in the book of

Philip Kotler there is a sentence “The first commandment in

marketing knows their consumer the second is to know their product.”

It is not necessary that product must be physical it may be

service product and other but main theme is that it is capable of

delivering satisfaction of wants or need.

In VODAFONE Cellular Limited, there is only one product i.e.

sim card through which company provides services.

What is Sim Card?

The mobile phone is widely used in the markets now a day. It is

just like a necessarily of a businessman or any kind of professional

person. A sim card is one type of card which is fixed on the backside

of a mobile phone. Any sim card service providing company in India

is not manufacturing sim card but they import the sim cards from

different countries. The VODAFONE Cellular Limited Company

imports the mobile sim card from Switzerland.

2. Price Mix: -

Pricing the product is one of the important elements in

marketing mix. It is the most critical decision in marketing

management, so it is said that “Success or failure of business depends

upon its product price policy”. Price is the exchange value of the

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goods or services in terms of money. The exchange value of product

is called price. The decision regarding pricing must be taken after

considering every aspect of business and while fixing the prices, not

on profit but also various factors i.e. social responsibility also to be

considered.

VODAFONE Cellular Limited determines the price in such a

manner as to offer a reasonable amount of profit to the manufacturer,

a reasonable remuneration to the middlemen and the maximum

satisfaction to the consumers. It has found that a price kept by

VODAFONE Cellular Limited is much lower and quite reasonable in

comparison to its competitors.

A company can pursue any of the six major objectives by its

pricing which are as follows:

1. To survive in the market.

2. Maximize current profit

3. Maximum current revenue

4. Maximum sales growth.

5. Maximum market skimming

6. Product quality leadership.

VODAFONE has adopted many methods for pricing which are

as follows: -

Penetration Pricing: -

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This method is generally adopted at the time when the

company has just entered into the market or newly started company

uses this method. In this method the product price is lower then the

substitutes in the market through which customers are attracted.

Psychological Pricing: -

Sellers should consider the psychology of prices in addition to

their economics. Many sellers believe that the prices should end in

odd numbers for such company prices dominate in the newspaper all

in odd numbers i.e. product price is Rs. 299 in stead of Rs. 300.

Skimming Pricing: -

This method by which company can attract the customer

mostly this pricing methods is always used in the time of festival such

as Diwali offer, Navratri offer etc. VODAFONE takes benefit of all

festival because they placed skimming price for short period on

Navratri and Janmastami.

3. Promotion Mix: -

Promotion plays an important role in stimulation of demand

and sales of the product. Promotion is basically communication

process by which producer of the product or service draw attention of

the consumer for prospective consumer towards their products.

Sales Promotion: -

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Sales promotion is a key ingredient in marketing campaigns.

Where advertising offer a reason to buy, sales promotion offers on

incentive to buy. Sales promotion includes tool for consumer

promotion (coupons, etc.) Trade promotion (price-off etc.) etc Sales

promotion tools are used by most organization, including

manufacturing, distributors, Retailers trade associations and non

profit organization.

4. Place Mix: -

Place mix is also known as Distribution Mix. This stands for

the various activities the company undertakes to make the producer

easily available to the customer. In today’s economy the producer

customer are separated by vast distances. Place mix is nothing but

marketing activities in which movements or flows of goods or

services are there from primary producer to ultimate consumer. It

includes Distribution Channel: -

Distribution Channel: -

Channels of distribution generally depend upon the nature of

product, volume of sales and trade practices adopted. The set of

marketing institutions participating in the marketing activities which

involves the movement of all goods and services from the primary

producer to the ultimate user or consumer is called the distribution

channel. In modern era, with the increase in size and production of the

unit, it is very difficult to sell the products directly to the consumer so

44

they have to adopt, distribution channel with middlemen like

wholesalers, distributors, Retailers, etc.

45

DISTRIBUTION CHANNEL

Distributor

Dealer

Salesmen

Retailer

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Company

Customer

MARKET SHARE IN GUJARAT

Company Coverage (%)

VODAFONE 30

IDEA 15

AIRTEL 20

RELIANCE 10

BSNL 15

TATA INDICOM 10

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COMPETITORS“Poor firms ignore their competitors; average firms copy their

competitors; winning firms lead their competitors.”

Today in this competitive world VODAFONE has got many

competitors which are as follows: -

AIRTEL

IDEA

BSNL

RELIANCE

TATA INDICOM

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FinanceFinance

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DepartmentDepartmentINTRODUCTION

Something must be direct the how of economic activity and

facilities its smooth operation. Finance is the agent that produces this

result. Nature of financial management refers to its functions, scope

and objectives.

Financial management is that managerial activity which is

concerned with the planning and controlling of the firm’s financial

resources. In modern times finance is the life-blood of the business.

No matter, whether the business is big or small financial is the equally

important. The financial resources must proper planned and control in

order to achieve the best out of available. So, financial resources

should be very properly.

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ORGANIZATION CHART

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Vodafone

CHIEF EXECUTIVE OFFICERS

FINANCE MANAGER

ACCOUNTANT

ASSISTANT ACCOUNTANT

FINANCIAL PLANNING

Generally, financial planning means deciding in advance, the

financial activities are to be carried on to achieve the objective of the

firm. In broader séance, in the words of Walker and Boughn as;

“financial planning includes the determination of firm’s financial

objectives, formulating and promulgating financial polices and

developing and procedures.”

Financial planning is necessary to achieve both long term and

short term objectives. A sound financial planning includes how much

need of funds for both the terms. Then from where they are to be

received and utilized.

“Vodafone” would evaluated different proposal placed before

them and selects the best out of them. It estimates how much capital is

going to be required for various proposals and how much is the return

on the capital employed. The financial manager lays down the

estimate on the capital of cash per week, per month and per year.

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CAPITALIZATION

At the time of incorporation of any business, it is the first

problem before the promoters to decide how much capitalization

should be made in a business. The amount of capital of any time

should not exceed nor less than the amount required. So, it is

necessary to have proper capitalization for the success of the

enterprise. But Gerstenberg defines it as;

“The total accounting value of all capital regularly employed in

business, it includes owner’s capital, borrowed capital and any other

sources.”

Thus term includes;

1. The value of ordinary and preference shares

2. The value of all surplus earned and capital

3. The value of bonds and security still not redeemed

4. The value of long term loans

However the modern view includes short term funds or

liabilities under the firm. It should be properly capitalized.

“Vodafone” issue shares. So, all these terms do apply.

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CAPITAL STRUCTURE

Capital structure is the permanent financing of the firm

represented by long term debt, preferred stock and net worth.

Capital structure refers to its capitalization. Company procures

funds by issuing various types of security i.e. ordinary shares,

preference shares, bonds and debentures. Before issuing securities the

unit should decides what kind of securities should be issued? A

balanced capital structure means and ideal combination of ownership

capital and borrowed capital.

“Vodafone” issues shares and it has reserves or surplus. The

firm has taken loans from financial institutes. So capital structure of

the firm consists ownership capital as well as borrowed capital.

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FINANCIAL LEVERAGE

Financial leverage is also known as trading on equity. In other

words, the effect on earning by the use of fixed cost securities is

called financial leverage. It is the ratio of return on share holders

equity and the net rate of return on total capitalization.

The degree of financial leverage can be calculated at any level

of operating profits as follows.

Financial Leverage = Operating Profits or E.B.I.T. E.B.I.T. – Interest or P.B.T.

Financial leverage is followed by this firm as shares and

debentures are issued.

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FINANCIAL POSITION

PERTICULERS Rs.Capital 3,460,811,000Reserves 1,481,000Loan borrowing 0000000000

TOTAL 3,462,292,000

Investment in fixed assets Rs. 5,54,754,000

Investment in current assets Rs. 1,69,423,000

Total investment Rs. 7,24,177,000

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57

PersonnelPersonnel Department Department

INTRODUCTION

For survival growth of organization it requires better

combination of Men, Money, Machine and Material. From these

elements Men is most difficult and challenging element. In general

sense, management of human resources in an organization is called

personnel department.

In present Personnel department is essential due to complexity

of HRM in an organization. Personnel can be defined in the words of

Pigors and Hynes as

“Personnel management is method of developing potentialities

of employees so that they get maximum satisfaction out of their work

and give their best efforts to organization.”

In the case of “Saurashtra Rachanatmak Samiti” it has

personnel; manager to manage the HRM of their sector. Thus, it has a

well established personnel department for managing their workers and

employees.

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ORGANIZATION CHART

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Vodafone

BRANCH MANAGER

PERSONNEL MANAGER

STAFF MEMBER

AGENTTRAINAGENT

NEW COMER

MEN POWER PLANNING

Men power planning is primary and essential function of HRM.

It is initial stage to get right type and right number of personnel in an

organization. As human resources is most valuable among all capitals.

It should be planned carefully and systematically.

In the words of Coleman Bruce “Men power is the process of

determining men power requirements in order carry the integrated

plans of the organization.”

In regard to personnel department of “Vodafone” is very

conscious because it is through out depended on HRM. It takes into

account the facts and of present work forces on the basis of such

available information of HRM.

1. TOTAL EMPOLYEES: 165 (near about)

2. SALARISE PERSON: 25 (near about)

3. 3 SALARISED AGENT: 140

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4. FOREMEN: 12 (near about)

Men power planning thus enables the organization to make

additions or deductions in about employees. For that it makes both

short term and long term men power.

RECRUITMENT, SELECTION AND PLACEMENT

1) RECRUTMENT:

The following factors affecting recruitment;

a) Size of organization.

b) The employment condition in the community where the organization

is located.

c) Working condition wage and salary and other benefits.

In “Vodafone” they have usual three methods of recruitment;

1. Direct method

2. Indirect method

3. Third party

If they want highly learned employees than they, apply indirect

method. And if they want semi skilled labour than they, ask to their

worker to ask their relative to apply for job.

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2) SELECTION:

Second stage after having adequate number of application for

particular job is selection.

In short, it refers to choice best condition out of available. In

fact selection process begins with initial screening then follows

different types of test and interviews.

The personnel department of “Vodafone” follows a perfect

selection procedure.

After receiving application, first of all takes preliminary

interview and employment test. Personal interview and check

reference of applicants. More ever they give importance more to

mentally fitness of person. Lastly they would prepare list of final

applicants who have crossed above hurdles and suitable for jobs.

Finally they have been given appointment letter.

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As far as unskilled labors are concerned they take advice from

present workers who can suggest the names of their friends and

relatives for selection in job.

3) PLACEMENT:

Once a candidate select for a job he should be placed on

suitable job. “Placement can be described as the determination for the

job to which an acceptable is to be assigned and his assignment to his

job. Sometimes employees are put on probation period.

In “Vodafone” sometimes selected sub ordinates employees are

placed job for two or three months depended on nature of the job

while there would be no testing in case of experienced and salaries.

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TRAINING AND DEVELOPMENT PROGRAMME

Training can be described as learning sequence of programmed

behaviors. It increases knowledge and skill for doing a particular job.

While development covers not only improve the job performance but

also bring growth of personality maturity and self actualization.

1) ON THE JOB:

In this method employees are coached and instructed by senior

workers. Here, they have given basic training for fifteen days with

basic salary and adopt this method of training mostly for operational

level.

2) OF THE JOB:

In this method training is a part from job place. In recent years

it becomes more popular so, trainees get training in a classroom of

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company by special instructor. It includes seminars, conferences, case

studies etc. “Vodafone” using this method only for top level and

middle level.

WAGES AND SALARY ADMINISTRATION

As every factor employed in a enterprise gets rewards for his

combination among this factor human resources get contribution in

form of monitory terms. So, proper administration of their wages and

salaries become a necessity.

The priority objective of wage and salary administration is to

establish salary structure. Second one is to maintain acquisition of

labour cost structure. Sound wage policy should contain both the

objective. It is affected by factors like demand and supply of labors,

labour rate in market etc.

Here, in “Vodafone” follows time wage system which is most

common and oldest system? Under this system workers are paid

according to work done by in certain period. On an average

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organization Pays 40000-45000 to Sales manager and ass. Manager is

paid near about 60000-100000 and agent are paid off commission

cum incentive.

“Vodafone” pays total salary at the end of month and any

worker can withdraw half of salary.

PERSONNEL RECORDS

A record is a piece of writing with provides ready information

and preserves evidence for future use. Therefore personnel record

means maintenance of information regarding personal. Personnel

record helps personnel manager in decision making. He can decide

the demand and supply of personnel in an organization.

In “Vodafone” personnel maintain files of each and every

employee for their presence, leave, bonus, promotion, performance,

salary etc. is mention. The data regarding each employee is fed in to

computer and store for future reference.

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TIME KEEPING SYSTEM

Every company has to keep watch on employee’s weather they

come in time or not. This directly affects to the productivity of each

employee and so production.

So, it becomes necessary to get enough work from workers in

proportion of their wages and salaries. In “Vodafone” office time is

as under.

SHIFT WORKING TIME HOURS RECESS

1 9 a.m. TO 1p.m. 4 Half An Hour

2 2 p.m. TO 6 p.m. 4 Half An Hour

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EMPLOYEE BENEFITS AND SERVICES

Employee’s benefits and services provided by any company is

very useful not only from the view point of employees, but also from

company. The requirement of providing such kind of facilities and

services arises from social responsibilities. This is an important tool

for any company to motivate its employees;

1. BETTER WORKING CONDITION :

The management of this organization has given careful

attention towards proper working condition for its employee. It

includes ventilation, drinking water, light, air etc. a special care is

taken for better working condition as possible as best.

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2. BONUS AND FESTIVAL:

Bonus is given to each employee during Diwali. More over all

are to be given sweets on festival like Dashera, Diwali as a gift.

3. PROVIDENT FUND SCHEME:

As per government rules, provident scheme compulsory for

organization, for that 8% of basic pay of employees and same amount

by company paid to employee’s account. After retirement the amount

accumulated to provident fund account is given to him as per rules.

4. OTHER FACILITIES:

“Saurashtra Rachanatmak Samiti” has given residential

facilities to the employees. In addition to it, benefits like medical

allowance, leaves and facilities like canteen, safety equipment, are

provided to them by “Vodafone”.

The management of “VODAFONE” is very conscious for

welfare of its employees. They think that more ever they spent on

employee is one kind of investment. It will be benefited through

HRM. The reason why they spent is benefited by increased

productivity, quality and loyalty of workers.

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70

Future Future PlanPlan

Future Plans

VODAFONE Cellular Limited has only one future plan and

that is to excel in its field and conquer the market. Today there are

more then 3 crores cellular phone users and the people who use the

land line are around 7 crores. There is a huge gap to be bridged and

the only and future term plan of VODAFONE Cellular Limited is to

exceed the land line users.

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Secondly their long term plan is to be consistent in the policy

adopted by them for the purpose of outright excellence in their field.

The policy of quality coverage, subsistent rates and a genuine

customer convenience and care are high in standards presently and

VODAFONE Family feels that if these are the factors that are

maintained at a consistent level then the company will be able to meet

all its future plans and goals.

Thus VODAFONE Cellular Limited has no plans in particular

except to lead the market in the crucial times of Cellular wars, and out

rightly exceed the usage of land lines by wireless cellular telephones

and maintain their standard of quality coverage.

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SWOT SWOT

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AnalysisAnalysis

SWOT ANALYSIS STRENGTHS: -

1. DISTRIBUTION NETWORK: -

VODAFONE Cellular has a wide spread network and to

completely cover such network, it has a predetermined channel which

covers every nook and corner of the city so that all masses are

covered. With distribution network and an equal capacity to canalize

makes VODAFONE Cellular strong in its own.

2. LIVE WIRE PROFESSIONALS: -

For every job specification in VODAFONE Cellular Limited

there is employed a live wire professional who is best suited to his

position and responsibility when it comes to skill, talent, qualification

and perfection. Having people with such zeal and enthusiasm,

professionalism comes as strength.

3. PROACTIVE CUSTOMER CARE: -

Not only VODAFONE Cellular Limited is strong from within

but when its comes to external forces it proves its worth. Fabulous

customer commonsense centers are established to take care of any

issue that may come as a problem to the mass proactive customer care

is one of the assets of the company while telecustomer care comes as

an icing to the cake.

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4. TELECOM FOOTPRINTS: -

VODAFONE Cellular though establish recently has set its foot

in major cellular markets, be its markets of masses or geographical

markets. The important states of India all have VODAFONE Cellular

footprints with them. This is strength indeed.

5. PROMOTERS – SYNERGY BETWEEN CORPORATES: -

First time in the corporate history ever, has the two big heads

joined hands for a merger with the telecom giant VODAFONE corp.,

U.S.A. This is strength itself.

PARENT VODAFONE i.e. VODAFONE is among the top ten

brand of the globe, which process as strength to organization.

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WEAKNESSES: -

1. FUNDAMENTAL CASHES: -

As said earlier, corporate giants across the globe Tata, Birla,

AT&T have joined hands to form VODAFONE Cellular Limited.

They all being supreme in their field, have their own perceptions,

these perception ideas and means are found to clash when they meet.

Thus this may be proved as a hindrance to the company and comes

out as a weakness.

2. DELAY IN DECISION MAKING: -

As the three partners are huge corporate, the flow of decisions,

actions and understanding are channelized through a long route. This

may cause delay in any decision to be taken and which might not be

good for the company.

3. TELECOM FOOTPRINTS: -

VODAFONE Cellular is only present in 7 states out of highly

numbered 26 states which show that geographically VODAFONE

Cellular is not able to cover entire state. This leaves behind weak

telecom footprints of the company.

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OPPORTUNITIES: -

1. Lowest telecom Density in the world.

2. Lowest call charges in the world as well as in India.

3. Opportunity to outsmart the landlines connections,

through the usage of Mobile telephony.

4. Growth possible through Acquisition.

5. VODAFONE Cellular is established only in 16 states.

It has still got a scope to establish itself in the

remaining state and hold it foot.

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THREATS: -

1. VOLATILE REGULATORY MARKET: -

Day in day out there is various rules and regulations that are

coming in the market and which on highly volatile in nature. Price

fluctuation, are one of them competitors come in and go out in a jiffy,

and in such a situation to hold an upright place is difficult in its even

words and thus proves a threat to excrescence of companies. The

same has been observed by VODAFONE Cellular.

2. PREDATORY PRICING FROM WILL OPERATORS: -

With ongoing Cellular wars and advent of WLL, Cellular

operators are now into an artificial cover of threat. The threat of

pricing policies, threat of customers care etc. is going high as WLL

have been setting its foot with predatory pricing policies to

unchannelize Cellular operators.

3. EXPANSION INVESTMENT THRET: -

In order to survive in the market, VODAFONE Cellular has to

update its technologies, and this all expansion requires huge cost pull

expenditure and this increase costs in leaps and bounds.

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SuggestionSuggestion79

SUGGESTION

The highly professionalized management and totally modern

marketing approach are the basic key factors behind the success of

VODAFONE Cellular Limited. The management of VODAFONE

Cellular Limited is very perfect and nice. As per company’s perfect

management there is no need to give any suggestion to the company

but I observed that each and every person in this company is hard

working which one of the positive points of this company is.

According to my observation, company spends lots of amount

on advertisement.

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81

ContributionContribution

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CONTRIBUTION

“VODAFONE Cellular Limited” at each and every step of its

development has tried to fulfill its social responsibility along with its

objectives of profit. It has been following the policy and principle

which ensure economic development.

During the time of earthquake in Gujarat VODAFONE Cellular

Limited has constructed up many mobile PCO’s.

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84

My ObservationMy Observation

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My Observations

VODAFONE Cellular Limited made me observe many things

while on my survey of 100 Retailers in different areas. There were

various reactions and gestures which, I observed through people. Few

are some of them: -

AMBIENCE & ATMOSPHERE: -

Retailers, I visited were friendly and helpful. As it progressed

with my survey they were highly co-operative and anxious to help me

out with my findings.

PRICING STRUCTURE: -

Retailers insisted on a consistent stable and substantiate pricing

policy as they were really frustrated with the constantly changing

price in the mobile world.

PERSONAL APPROACH: -

Retailers always want the executives coming to their places and

making them understand about the new scheme and plans, which are

going to enter market.

SALESMEN SERVICE: -

Retailers are quite satisfied with the salesmen service.

Whenever the retailers are in need of SP, RV, etc. when they make a

single call to salesmen then order will be made available by salesmen

with in an hour.

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87

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ConclusionConclusionCONCLUSION

VODAFONE Cellular Limited is one of the leading service

providers present today in the state of Gujarat. It has been indeed a

pleasure working for VODAFONE Cellular Limited, though as a part

of my training. I have conducted my project on Retailer’s Network

Management of VODAFONE Cellular Limited. As student trainees, I

have learnt immensely.

VODAFONE family is very co-operative, friendly as well as

professional and practical in their approach. They have been guiding

me whenever I viewed an obstacle. They have been of great help

when it came to providing information to me about themselves and

their organization.

I wont be exaggerating, if I say that this project has helped me

develop me as a person because while conducting my survey I have

met 100 people whose nature was different from one another and each

meeting in itself have been a memorable experience.

I would also like to say that this project has made me known

the realities that exit in the market today. I have also known the

technicalities involves while finding the right sample for my survey.

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This project I have learnt a lot about Survey etc. which has me

approach the real world in quite an extent. Also this project has

helped me have a more deepened knowledge about the cellular phone

market, on going cellular wars etc.

VODAFONE Cellular Limited is a company who has grown by

leaps and bounds in these two years and has emerged itself into a new

beginning. Under the report, I have researched about Retailers of

VODAFONE Cellular Limited the findings of my survey say that

VODAFONE today is the leader in the market and is still growing.

VODAFONE Cellular has got a very bright future as the

demand for cellular services are increasing day in and day out. Thus I

conclude my report wishing company all the very best for their future

and I would like to thank all people concerned who helped me make

this project come true.

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BibliographyBibliography91

BIBLIOGRAPHY

1. Marketing Management:

- By Philip Kotler

2. Web site:

- www.vodafone.in - www.vodafone.com

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