Vodafone project Report

A Project Report

On

ACTIVITIES FOR SALES AND DISTRIBUTION CHANNELS IN DELHI

Submitted for partial fulfillment of award ofBACHELOR OF BUSINESS ADMINISTRATION

Degree InCOMPUTER AIDED MANAGEMENT(2009-2012)

Submitted to: Submitted by:ANSHIKA RAJVANSHI KARAN MITROO(ASST. PROFESSOR) ( 03013401909 ) BBA (CAM) III YEAR

IDEAL INSTITUTE OF MANAGEMENT AND TECHNOLOGYKARKARDOOMA, DELHI.

(Approved By G.G.S. Indraprastha University, Delhi)

CERTIFICATE

This is to certify that Mr. KARAN MITROO of IDEAL INSTITUTE OF MANAGEMENT & TECHNOLOGY has successfully completed the summer training in partial fulfillment of requirement for the award of BACHOLARS OF BUSINESS ADMINISTRATION (COMPUTER AIDED MANAGEMENT) Degree prescribed by the Institute.

This report is the record of authentic work carried out by the student during the academic year 2009 -2012

(Prof. ANSHIKA RAJVANSHI)Internal Guide

DECLARATION (TO BE SIGNED BY THE STUDENT ON PLAIN A4 PAPER)

DECLARATION

I, KARAN MITROO hereby declare that this report is the record of authentic work carried out by me during the academic year 2009-2012 in Vodafone.

________________________________________________________________Vodafone Essar South Limited, B1/G2, 2nd Floor, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi 110 044Email: [email protected]: +91- 97190 97191

( ) Signature of the student

(Karan Mitroo)

ACKNOWLEDGEMENT

It is a great sense of satisfaction and a matter of privilege to me to work at VIDEOCON INDUSTRIES, GURGAON. I wish to express my heartiest thanks to VIDEOCON Organization Division for providing me the opportunity to undergo training in the esteemed organization. Under such a nice environment, systematic work approach and target oriented task management of this division provided me with the much-desired training experience needed for future management professional.It is my pleasure to thank MR. ARIJIT DAS GUPTA to whom I owe a lot for giving me an opportunity to do my training in this organization; I also owe a special thanks to MR. SACHIN ROY for allowing me to do project under their guidance.My heartfelt thanks to MR. PRADYUT MISHRA for accepting me as a project trainee in his group and helping me in this project with words of encouragement. I would also like to express my gratitude towards him for showing full confidence in my abilities.

INDEX

INTRODUCTION History of the Industry COMPANY PROFILE PRODUCTS & SERVICES ORGANISATIONAL CHART FUTURE PLANS SALES MANAGEMENT & CHANNELS OF DISTRIBUTION

PROJECT WORK DETAILS RESEARCH METHODOLOGY DATA ANALYSIS & FINDINGS CONCLUSION RECOMMENDATIONS APPENDICES BIBLIOGRAPHY ANNEXURE

No. of Figures 1

No. of Tables 4

No. of Graphs 4

I N T R O D U C T I O N

Introduction

"Telecommunications is the backbone of our future economy. International competitiveness increasingly depends on the development of a telecommunications infrastructure that is compatible with international standards. "

The cellular industry all over the world has been witnessing very high growth rates in subscriber base in recent years. For developing countries in particular, cellular services are becoming a very significant proportion of the overall telecom infrastructure. The mechanics of competition within this market involve complex feedback effects between individual service providers and with their operating environment, and these forces play an important role in governing the growth of this industry.

In a country like India which is not yet telephone-saturated and the ongoing changes in related areas are resulting in a rapidly changing profile of users, providers and their respective needs, continuous revision of the telecom policy is imperative. Given the emerging new technologies and the integrating economies there must be fairness among competitors.

The tele-density in India is about four per hundred people in respect of the fixed telephones and a little less than one in respect of the mobile telephony. The low densities are not because there is no need for a telephone but because of its high cost that many cannot afford that one. The situation here is nothing but holding true of the law of demand. Isnt it?

The cost for the companies can come down if the revenue share imposed on them as a condition of license is abolished or drastically reduced. Today every telephone company is bound to pay a share out of its revenue to the exchequer. These costs are, however, not to be scheduled to take a step further in the development of the telecom. In addition when we go through the telephone bill there is a 5 to 8% service charge. This amount also does not go for the telecom development. If these external cost are removed there can be seen a spurt in demand of not less than 40% as expected.

While taking the side of suppliers a lot of new companies are coming into the battlefield resulting in reduction of prices and hence a little less burdensome on to the customer. The cost of interconnection with the incumbent is proving to be contributory to the high cost of services provided by the competitors.

The delay in the interconnection disregards the quality of service and high cost will detract from affordability. This is an area in which no consumer body can knowledgeably contribute unless it has the assistant of experts or economists who alone can discover all the relevant fact of all the contesting companies. It indicates the pre-eminent domain of TRAI (Telecom Regulatory Authority of India).

As the driven down of the prices for long distance including international services reduces the amount available for subsidizing the local service, the rental for local services are being increased. Considering that about 90% of the long distance

Calls are made by less than 20% of customers, 80% of customers have to pay higher rental this depresses the demand for telephones and affordability. The urban business subscribers will be bearing the bond of the subsidies to be given to the rural private consumers.

H I S T O R Y O F T H E I N D U S T R Y

History of the Industry

Cellular Telephony in India:The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications.

The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Groupe Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.

Cellular Industry in India:The Government of India recognizes that the provision of a world-class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.

Cellular Market Structure in India: As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed to operate in designated geographical operating areas. The service areas include four metro areas and 18 circles categorized as A, B and C. (The categorization is based on the revenue Proceedings of the 36th Hawaii International Conference on System Sciences).

The potential with category C circles in the lower end of the scale. For example the metros account for 40% of the subscriber population, with Category-A, B and C accounting for 33%, 23% and 4% respectively. The CMSPs had to pay an entry fee and subsequently annual license fee as a percentage of their revenue to the Department of Telecommunications. The entry and license fees varied according to the service area, highest for metros and lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and their licenses were revoked leading to a monopoly situation in certain areas. Apart from these charges, each CMSP has to share the revenue with the long distance operators for carrying inter-service area calls.

In profitable metros and circles, the competition is severe and the market is split between the two operators. In a price-cap regulated market, the operators use appropriate pricing strategy to win customers and win market share. In highly price-elastic markets, such as in India, as the service provider reduces the price, the subscriber base increases considerably, and so is the network traffic. The increased network traffic decreases the performance and the quality of service, inviting customers to switch. Being a new entrant in a metro area, the government operator reduced the airtime charges to such an extent that the subscriber base increased suddenly leading to poor network performance. The operator did not have enough network capacity to handle calls leading to blocking of calls, with frustrated customers switching over immediately to competitors.

The operators also have to resort to non-pricing competition strategies to win customers. In India, CMSPs offer a variety of service plans as a means to attract new customers. Different service plans include: pre-paid calling card schemes, discounted airtime rates for evening and night time calls, discounted roaming charges, no or minimum activation fees, and reduced mobile to mobile long distance call rates. The service providers incur additional advertising and infrastructure cost for implementing these plans. Short Message Service (SMS) and Wireless Application Protocol (WAP) service are fast catching up. For example, in India, about 500,000 SMS messages are being carried by a service provider in one metro area alone. When the sector moves over to an oligopoly market, the operators have to provide improved quality of service and value added services in order to survive and gain market share. Larger operators who have experience and infrastructure may be able to provide a higher quality of service and other value-added service at a lower price. They also have access to larger project financing for enlarging their networks and services. For example, a single large operator now has license to operate in 14 service areas in the country with the largest footprint to cover most of the areas of the country. Mergers and acquisitions are commonplace as the operators are consolidating their revenues to survive in the market places.

Cellular subscribers and those with a propensity to go mobile in Delhi have never had it so good. They now have four service providers to choose from, each offering an array of both pre- and post-paid schemes. More importantly, average tariffs across plans have, by some reckoning, dropped by at least 50 per cent in the last six months. The entry of Vodafone saw a further drop in tariffs and the operators have come out with new schemes to retain their subscribers and attract fresh ones.

What does this mean for subscribers and for the cellular industry in Delhi? All the four operators Essar Mobile Services Ltd., Bharti Cellular Ltd, MTNL and Idea Cellular services. are convinced that the market will only expand and the subscribers will benefit even more. Their reasoning is that cellular penetration in Delhi, which traditionally occupies the third position in other areas, is less than fifty per cent. Therefore, entry of new players will only increase awareness about the facility, the companies say. Moreover, the state-owned MTNL has also been playing with its cellular service for quite some time. that, with the imminent launch of limited mobility using CDMA (code division multiple access) technology by companies like Tata Tele Services will only add to the subscriber base, probably result in further reduction of tariffs, and an even greater widening of the cellular market, according to officials in four cellular companies now servicing Delhi.However, the companies also sound a note of caution any further drop in tariffs will be harmful to the companies, points out one of the officials taking care of the Sales & Marketing division of the, Essar Mobile Services Ltd, average tariffs in Delhi across different plans have fallen by 30 per cent since December with launching of the CDMA services.

Besides the fall in tariffs, what has really happened with the entry of CDMA is a heightened awareness in the market. Mobile penetration in Delhi and its suburbs is estimated to be less than twenty-five percent of the population and the cellular operators believe that this number should definitely go up.It is here that Vodafone decided to target the customers with what it believes are unique products and features. Its emphasis has been on value proposition and brand building. Mobility is not only about carrying voice, as per the reports from the marketing department and adds that the unified messaging system for the post-paid customers of (now Vodafone) is one such unique product.Accordingly, Vodafone signed in its subscribers in lakhs from the year onwards it has been launched in Delhi. Industry analysts say that a majority of them will be pre-paid customers, whose loyalty to a particular brand is always in doubt. However, pre-paid for the cellular is nothing but the engine for growth and there is always a possibility that most of them will shift to post-paid once they are convinced of the quality of service provided.On the other hand the entry of a new operator lends more visibility to the service and there is also increased trade activity that is the number of dealers will increase and more people will be on the road trying to sell the service and product. There is also greater consumer awareness of what cellular service can deliver and expectations go up in terms of pricing or service standards or network availability.

The Churn in the Cellular Industry:As like the other products Cellular industry has not been left untouched from the Churn (switching over). During the survey this fact comes to the fore. According to the cellular operators, there is a normal seven to eight percent churn in the customers, especially in the pre-paid category. Among the post-paid customers, the Churn is much lower about two-three percent.

They say that one significant change that has happened in the last few months, more so since lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges are concerned incoming calls has been set free while they are charging reasonably only for the outgoing ones has changed. A tariff re-balancing has definitely taken place.This means that the cellular operators are encouraging their subscribers to not just receive calls, but also make calls increasing the usage of the service. With falling tariffs, cellular operators are convinced that increasing usage is one way to ensure that average revenue per user (ARPU) does not fall very low. The industry figure for ARPU is believed to be about Rs.1,100 while it may vary from operator to operator. The operators are also concentrating on introducing more value added services to the customers. Value-added services have not really taken off. Only the SMS (short messaging service) has really caught on, but operators like Bharti are bringing in services like music messaging and concierge facility for its subscribers.

C O M P A N Y P R O F I L E

Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now has operations across the country with over 71.54 million customers.

Over the years, Vodafone Essar, under the Hutch brand, has been named the Most Respected Telecom Company, the Best Mobile Service in the country and the Most Creative and Most Effective Advertiser of the Year.

Vodafone Group is the worlds leading international mobile communications corporation. It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 289 million proportionate customers worldwide. The Essar Group is Vodafones principal partner in India.

The Essar Group is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Projects. Essar employs more than 50,000 people across offices in Asia, Africa, Europe and the America.

Company Profile of VodafoneToday, in India, becomes Vodafone. Now, the pink color logo of will be replaced by Vodafone Essars corporate red colored one.After acquiring 67 per cent of stake (around Rs. 250 crores) in ison Essar from Hong Kong-based is on Whampoa, Vodafone Essar is expecting to touch over 35 million customers across 400,000 shops and thousands of own employees along with employees of its business associates.Asim Ghosh, MD, Vodafone Essar, said Weve had a good innings as in India and today marks a new beginning for us, not as a departure from the fundamentals that created, but an acceleration into the future with Vodafones global expertise.Vodafone CEO and Vice-Chairman Arun Sarin of the joint venture Vodafone Essar will be landing in India for the meeting that would discuss branding exercise, expansion plans, spectrum requirements for its expanding subscriber base and future plans.Vodafone offers a host of premier value added services (VAS) including national and international roaming in over 70 countries in over 160 networks, Wireless Application Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket updates, M-banking, general information, tarot line, etc. The company launched WAP in Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in December 2000. The company has been a prime mover in introducing these value-added services in the Delhi circle.

The values are stated simply. To be fair and transparent in what they do and how they do it. To provide the quality services with more customer friendly practices. To make ones communications experience simple, pleasurable and fun. Where he doesn't simply get technology - but technology that is relevant. Where solutions are not just promised in the future - but delivered in the present.

CORE VALUES We shall uphold the dignity of the individual; We shall honor all commitments; We shall be committed to Quality, Innovation and Growth in every endeavor; We shall be responsible corporate citizens.

Vodafone Logo:

P R O D U C T S & S E R V I C E S

Products:Call Charges of Vodafone compare to Airtel:

All National NetworksAll Airtel Networks

Rs / min Rs / min

All Incoming calls 1.001.75

Outgoing calls (Rs / min)

Local calls1.001.4

STD calls1.52.4

ISD calls

USA, Canada, Europe+UK (fixed), South East Asia,Australia and New Zealand 9.499.49

Gulf, Africa, UK Mobile, SAARC & Pacific Rim countries12.2812.28

Norfolk Island, Cook Island, Cuba, Diego Garcia, Guinea Bissau, Nauru, Sakhalin,Sao Tome & Principle, Solomon Island, Tokelau, Tuvalu, Vanuatu42.2942.29

SMS Rs / SMSRs / SMS

Outgoing(Local / National) 1.50 on Vodafone networks3.45 on all other networks3.45

Outgoing(International) 3.453.45

IncomingFreeFree

Bonus Cards:

BONUS CARD MRP (Rs) BENEFIT TARIFF VALIDITY (Days)

BONUS CARD 84 84All local calls @ 60 ps/m 180

BONUS CARD 59 59Local calls V2V 30ps, V2M 50ps, V2LL 50ps, with talktime of Rs 20 60

BONUS CARD 22 22All local calls @ 60 ps/m 30

SMS BONUS CARD 30300 local/national SMS free

30

BONUS CARD 99 99Unlimited local V2V calls free,Other all local calls @50ps/m

30

BONUS CARD 29 29400 V2V local minutes free

30

BONUS CARD 31 31All STD calls @ Rs1/m

30

BONUS CARD 85 85Local V2V @ 30ps/m,Other local Mo./LL @ 50ps/m,STD calls @ Rs1/m,Local SMS @ 50ps/SMS,National SMS @ Rs1/SMS

30

Note: Limited period offers on Bonus Cards 29, 59, 99.

Easy e-topup of Vodafone:

MRP Rs VALIDITY PROCESSING . FEE TALKTIMESERVICES

from to (Days) Rsfrom to

1010 027.077.07Small Recharge

1121027.7917.07Small Recharge










11219800101.54179.51Small Recharge

20022100181.32200.36Talktime Recharge

22222200222222Full TT Recharge








Voda Magic Box: Note: There may be changes in price with time.

SERVICES:

Staying connected becomes a lot easier with Vodafone. We have a wide range of services you can access right from your Vodafone phone. From cell banking to flight updates to call management services, get all that you want, instantly.

Dial 600 to activateTo activate these values added services on your Vodafone phone simply dial 600 SSSSSand access our Interactive Voice Response system.

SMSMessage your family and friends through Vodafone SMS Services. It's convenient and affordable. Communicate with cell phone users in over 100 countries and anywhere in India by sending and receiving text messages.Pay just Rs. 1.50 per message for sending SMS anywhere across the country.

SMS ChatNow, you can chat on your Vodafone phone with as many people as you want. Its fun and as simple as sending an SMS. Your identity will remain anonymous as your phone number is never displayed during the chat. You can have your own profile and chat name.You can also create your own chat rooms or chat in the different rooms that already exist including: Teens, 20s, 30s, Office, Bollywood, Delhi.

All you have to do is type in your messages and send them to 2428. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Vodafone Online

Get all the useful information you need directly on your Vodafone phone - with Vodafone Online. Including cricket, finance, entertainment, weather, astrology and more.

Simply go to the Vodafone Online menu on your Vodafone phone.If you do not see the Vodafone Online menu on your phone, send HELP to 123. We will send you the list of keywords.

Scroll to the topic on which you need information.

Select the information and key input as requested on the screen.You will be charged Rs. 2 per outgoing message. Incoming messages are free.

MTNL Directoy

With this facility you can get to know the address and telephone no. of MTNL users.you will be charged Rs.2 per outgoing message.

STD / ISD Codes

You don't need to look up your diary or a phone directory to find out STD and ISD codes. You can find it directly through your Vodafone phone.

Ringtones & Logos

Now you can change the ringtone on your Vodafone phone according to your moods. You can download logos as well. With the Vodafone and Yahoo! tieup you have hundreds of tunes and logos to choose from.

For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS sent). For every logo/picture message downloaded, you will charged Rs. 3.00 (including the cost of SMS sent).

Flash & Blink

Vodafone now offers you two exciting ways to send messages. You can make your message flash directly on your recipients screen instead of the inbox. You can also highlight the important parts of your message through blinks. So your text messages become not only more visible, but more effective too. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Dial-in Services

Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to check cricket scores, horoscope, up-to-the minute news and other relevant information on services that touch your everyday life.

All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).Here's a shortlist of services you can access ServiceNumber

NDTV Online123

Info Line301

Dial-n-Deliver306

Cricket Online123

Tarot Line314

Cell Rashi315

Dial-a-Pizza303

Dial-a-Cab335

Voice Response Service123

There are occasions when you may not want to take a call or your Vodafone phone maybe busy or simply unreachable. By paying a nominal monthly access fee, you can now retrieve your messages at your convenience. Even if you are roaming, you can retrieve your messages from your voice mailbox through a fixed line, anywhere on earth.

Your Vodafone voicemail can Hold up over 17 messages at a time. Receive a message that lasts up to 90 seconds. Store a message for as long as you want. You can also record your voice signature and welcome message.

Calling Line IdentificationYou can check your caller's telephone name and number on your phone screen whenever you receive a call. This gives you the flexibility to either accept or reject an incoming call. This service is also helpful in identifying your missed calls.

You can access this service by just paying Rs. 49 per month, if you are a postpaid customer. This service is absolutely free if you are a Vodafone Prepaid customer.

Itemized BillingAs a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end of each month. This is a detailed billing statement which helps you keep track of all your calls. Your itemized bill includes: Origin of the call Destination of the call Duration of the call Toll charges Airtime and total charge

Get your itemized bill. Via post: Pay a monthly rental of 49 only. Via e-mail: Pay just Rs. 19 per itemized bill.

Fax & Data Services

This service enables you to constantly keep in touch with your office, colleagues and information sources. You can send or receive faxes and transmit data using your Vodafone phone anytime, anywhere. Whether you are operating from home, Hotels and airport lobbies.At speeds of up to 9600 bps within the network or while roaming. You can even access the Internet.

All you need is a handset compatible data card (PC Card) or a GSM Software, and a data chord cable with a PC to set up a mobile office.You can also opt for either Vodafone Fax or Vodafone Data services independently.

Your Vodafone fax number can help you differentiate between incoming voice calls and fax transmissions. You can also send and receive faxes anywhere on earth with your Vodafone phoneBy opting for the Vodafone Data Services you can access e-mail, databases and the Internet. All on your single incoming data number.Charges to activate the Vodafone Fax and Data service, you just need to pay a one-time activation fee of Rs. 500. To access the Fax service, the fee is Rs. 250. The usage charges are nominal at Re 1 per minute.

Call Management Services

There may be occasions when you need to conference with up to six people at a time or talk to just two. Or you are speaking to someone and want to forward an incoming call to another phone. With your Vodafone phone, you can do this and more. Vodafone helps you manage your calls effortlessly so that you stay in control of your conversations, always.

Voice Response

Get your Vodafone phone to respond directly to your commands. Custom designed to recognize Indian voices and accents, the Voice Response service makes your life more convenient. You can get the latest updates on news, stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1 minute pulse).Voice Messaging

Voice Messaging has become even more affordable. You can now send voice messages to cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min* (as against Rs.4.95 per min earlier). Voice messages within India across select networks will cost you Rs. .95 per min only. Also, recipients of the cellular Voice Messaging service have the option of replying back to the messages, which get returned back as return Voice Mail messages, facilitating two-way (though not simultaneous) voice communication.

Yahoo! Messenger for SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive Vodafone-Yahoo! tie-up, you can easily get connected through your Vodafone phone. This unique messenger comes with a lot of exciting features. You can connect with all Yahoo! Messenger users, send, receive and reply to instant messages, view and manage your friend list and also manage authorization requests. All this and more just by using SMS. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Cell Banking

Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account and transact directly on your Vodafone phone by sending text messages. The first of its kind in India, this service enables you to conduct your banking without having to visit the bank or making a call. You can do Cell Banking from over 90 countries worldwide. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

RoamingNow you can always stay connected, no matter where you are. With the Vodafone Roaming facility, you can use your Vodafone phone in over 100 countries worldwide and over 1000 cities, towns and highways across India. Vodafone Roaming makes life easy and convenient for you.

One number across the globeYour Vodafone phone number and PIN number remains the same whether you are in Delhi, Chandigarh, London, Paris or anywhere else in the world.

National and International Roaming on Vodafone PrepaidRoaming on Vodafone Prepaid gives you the most extensive coverage in over 1000 cities, towns and highways across India, and in over 100 countries around the world. Enjoy Roaming on your Vodafone Prepaid card and stay in touch wherever you go.Yahoo! Mail for SMSYou can now directly access your email account on Yahoo! Mail on your Vodafone phone. Whats more, you do not need a WAP enabled handset for this service as it is based on SMS. So gain freedom from your PC and access your Yahoo! mails anytime, anywhere on your Vodafone phone. You will be charged Rs. 2 per outgoing message. Incoming messages are free.WAPWith WAP, you can have the Internet directly in your pocket. So if you are looking for quick and easy delivery of information and services, your Vodafone phone can show it all. Use it to check out news, finance, shopping, entertainment, travel, entertainment and city service information etc. To access this service all you need is a WAP enabled handset and WAP services activated on your Vodafone phone. This service comes to you at a nominal charge of Re. 1 per minute (1 min pulse).Group MessagingParty invitations, movie outings, festive greetings... whatever be the occasion, you can send your message to all your friends at one go!

With Group Messaging from Vodafone, you can thus save yourself the bother of painstakingly sending your message to one person at a time whether you are on Vodafone Prepaid or Postpaid.Vodafone4helpVodafone4help now lets you take advantage of a lot more services than before. You can connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are stranded in the middle of the road, or if you you need immediate medical attention or if you are looking for a police station close by, Vodafone4help gives you instant access to your nearest source of help, anywhere in Delhi or the NCR.All the help services are [email protected]/min. While for police and fire help only local airtime charge is applicable.

F U T U R E P L A N S

O R G A N I S A T I O N A L C H A R T

Organisational Chart:

S A L E S M A N A G E M E N T &C H A N N E L S OF D I S T R I B U T I O N

Selling:

Selling means only to convert the goods and services into money. It includes the discovery of buyer, to inform him about the goods and services available with the producer, to inspire him to purchase the goods and services and to deliver these goods and services to the consumers. Thus selling includes only physical distribution of goods and services from the producers to consumers.

Features of Selling: Selling is a classical word. It includes only the physical distribution of goods and services. Selling is limited only to the physical distribution. Selling is product-oriented. The aim of sale is to earn the maximum profit. It stresses upon maximisation of profits through maximisation of sales. Sellilg is a routine activity with short term objective.

SALES MANAGEMENT:

Meaning Sales Management means the planning, organisation assigning, routing, direction, supervision, remuneration, motivation and controle of all the selling activities of a business and industrial enterprise. It includes marketing research, sales research, sales forecasting, formation of sales organisation, appointment of selling force, determination of remuneration for selling force, advertisement, sales promotion and personal selling etc. Though the success of a business and industrial enterprise depends to a large extent upon the quality, uses and characteristics of its products, but if the sales management of the enterprise is weak and defective, the enterprise may have to force the failure, even if its products meet all the expectations of consumers. Therefore, it becomes very necessary for every business and industrial enterprise to have a sound and efficient sales management.

Objectives of Sales ManagementSome of the important objectives of the sales management may be as under:- To conduct Marketing Research; To discover new markets and new consumers for the product; To attract the attention of consumers through advertisements and sales promotion; To select a suitable channel of distribution; To arrange for the supply of product into the market according to demand; To arrange controle the costs of distribution; To encourage dealers, distributors and salesmen.

Functions of Sales Management Function of sales management may broadly divided into three parts as follows:(1) Administrative Functions: Administrative Functions of sales management include the functions relating to policy formulation. These functions may be- To develop sales organisation structure; To determine sales policies of the enterprise; To determine and specify the rights and duties of all the officers and employees of sales organisation; To establish effective co-ordination in the activities of various departments of sales organisation.

(2) Operative Functions: Operative Functions of sales management include the functions to run a sales organisation smoothly. These functions may be- To appoint salesmen; To arrange for the training of these salesmen; To determine and arrange for the remuneration of these salesmen; To allocate sales territories to these salesmen; To determine sales target for different sales territories; To controle the activities of salesmen; To prepare, implement and monitor the programmes of advertisement and sales promotion; To encourage and motivate these salesmen to sell more and more products.

(3) Staff Functions: Staff Functions of sales management of an enterprise include the functions performed as sales specialist.These functions may be: To conduct marketing research; To advise for the development of product; To make sales forecasts and to prepare sales plans in the light of these forecasts; To make sales correspondence; To analyse the sales; To advise marketing manager in respect of advertising and sales promotion programmes; and To conduct research related to the rerformance of selling force of the enterprise.

CHANNELS OF DISTRIBUTION

Main problems of a manufacturer can broadly be divided into two parts-production and Distribution. Every manufacturer attempts at producing the goods and services of best possible quality at minimum possible cost. This is only a half-success of a manufacturer. The succss is completed when he makes these goods and services available at proper time and at right places. The term Channels of Distribution has been defined by many eminent authors. Some of the important definitions are as follows: William J Stanton, A channel of distribution (sometimes called a trade channel) for a product is the route taken by the goods as they move from the producer to the ultimate consumers or industrial user.

Cundiff, Still &Govani, Marketing channels are the distribution networks through which producers`products flow to the market.

Philip Kotler, Every jproducer seeks to link together the set of marketing intermediaries that best fulfil the firms objectives. This set of marketing intermediaries is called the marketing channel (also trade channel or channel of distribution).

On the basis of analytical study of above definitions, it can be concluded that a channel of ditribution is a chain through which a producer transfers the ownership of his goods and services ot his consumers. Channels of distribution are also known as middlemen, agents of distribution, and distribution chains. A channel of distribution is a bridge to cover the gap between a manufacturer and consumers.

Types of Channels of Distribution

There are different types of channels of distribution and a manufacturer may select any on of this channel. These channels may broadly by divided into two parts-(I) Channels of Distrbution related to industrial products.(II) Channel of Distribution related to consumers products. The details in this regard are as follows:

[I] Channels of Distribution Related to Industrial products:A manufacturer of industrial goods may use any on of the following channels of . . . distribution for the distribution of his products;1. The goods may directly be distributed by a manufacturer to his buyers. Producer Industrial users.

2. A manufacturer may take the help of agents to distribute his goods to the buyers. Producer Agents Industrial users.

3. A producer of industrial goods may take the help of wholesalers for the distribution of his goods. Producer Wholesalers Industrial Users.

4. Industrial goods may be distributed to their users through two middlemen also . These middlemen may be wholesalers or distributprs and selling agents. Producer Wholesalers or Distributors Agents Industrial Users.

[II] Channels of Distribution Related to Consumers Goods: A producer of consumer goods may use any of the following channels of distribution:1. A producer of consumer goods may distribute his peoducts direct by to his consumers. Producer Consumers.

2. A producer may take the help of middlemen for the distribution of his products . Middlemen may be retailers or agents. Producer Retailers Or Agents Consumers.

3. A menufacturer may choose to distribute his goods with the help of two middlemen. These two middlemen may by wholesalers and Retailers. Producer Wholesalers Retalers Consumers.4. A manufacturer may distribute his goods to his consumers with the help of three middlemen. These middlemen may be agents, wholesalers, and retailers. Producer Agents Wholesalers Retallers Consumers.

5. A producer of consumer of consumer goods may also decide to distribute his goods to his consumers through four middlemen. These middlemen may be distributors, Agents, Wholesalers and retailers. This is the longest channel of distribution.

Producer DistibutorsAgents Wholesalers Retallers Consumers.

Functions of Channels of DistributionSome of the important functions of Channels of Distribution are as follows:1. Helpful in Price Determination: Channels of Distribution are very helpful in determining the price of products because they are in direct touch with customers. They can estimate paying capacity of consumers for a product.2. To Manage Finance: All the manufacturers have limited financial resources. Middlemen help manufacturers in making adequate financial resources available. They purchase the goods produced by manufacturers and make the payment for that.3. To make the Process of Distribution Easy: it is not possible for a producer, particularly a producer of consumer goods to be in direct touch with all the consumers so channels of distribution help the producers in this regard.4. Promotional Activities: Channels of distribution also help in promoting the sales of goods and services. Wholesalers advertise for the goods dealt with by them and retailers help in increasing the sales by adopting the measures of sales promotion. Retailers display the goods in their showrooms so that more and more consumers may be attracted.5. Helpful in Communication: Channels of distribution help producers in communicating the changes in products to the consumers and in communicating the changes in habits, tastes, likings and preferences of consumer to the manufacturers. Thus channels of distribution play an important role in communicating the needs of consumers to the manufacturers and policies of manufacturers to the consumers. It increases the sales of manufacturers.6. Matching of Demand and Supply: Most important function of middlemen is to collect goods and services from many producers so that consumers may select from among a large number of alternatives.7. Other Function: Other functions of channels of distribution may be-(i) To stablise the prices;(ii) To help in forecasting the demand for a product;(iii) To help in marketing research; and(iv) To help in production activities etc.

P R O J E C T W O R K D E T A I L S

Purpose & Scope of the Work

Survey 1: To find out present condition of Vodafones products, services and their demand in the market.Survey 2: To check the availability of Vodafone products in the retail outlets. Purpose: To know the Vodafones present performance in the market. Vodafones relative status in the market with respect to other telecom service companies. To know the availability of Vodafone products in the market as well as most running and demanded products of Vodafone. To know the improvements and retailers demand andqueries about Vodafone. To set a new plan to increase the sales and distribution of Vodafone products and services through keen market survey.

Scope: It helps to provide a clear picture of Vodafone at market. It gives the idea how the competitors are performing and how we should make strategy against it. It gives the rate of supply of voda products in the market and its expected rate of change in coming days. Most demanded tariff plans and products are key part of Vodafone, so survey helps to make more attention towards selling of these products and services. Survey helps to solve the problems of retailers, to make the effective supply chain from distributor to end users.

Survey 3:a) To find out comperative selling of Airtel and Idea with respect to Vodafone (in monthly basis).b) Network survey of area covered by Single BTS (Preferably in 3 KM radius). Purpose: To estimate the monthly selling of competitors product against the Voda products in the market. To find out the new location and new market to install effective selling of Vodafone. It also helps to find out signal quality of area covered by Single BTS (Inside & Outside of the outlets). To fulfill the demand of retailers & to check sufficient advertisements of vodafone at Retail Outlets (to increase the awareness of voda products & services).

Scope: To know the retailers selling strength and to encourage them for increasing the sales of vodafone by solving their queries. To sell the products & services in new location by making awareness of new plans and schemes of voda products to the retailers. To make aware to the customers via retailers about the new expansion of vodafone coverage and its growth in new areas. Installed BTS and services within the area give the reference to the company for future expansion so that new BTS installation would fulfill the increasing requirement in new location. To check out the network of vodafone and its productive improvements to solve the problem of coverage in a particular area covered by Single BTS.

4. Some Promotional Activities of Vodafone:

Fig. 1 a.) Van Activityb.) Canopy Activity Van activity was performed all over the DELHI City at different outlets of Vodafone by our team, where we made awareness of voda products and services among the customers and retailers. In canopy activity we promoted sales of Vodafone products and make aware to the customers about new offers and schemes and we got opportunities to direct interection with them.

R E S E A R C H M E T H O D O L O G Y

RESEARCH METHODOLOGY:-

RESEARCH PROBLEM To find out present condition of Vodafones products, services and their demand in the market. To check the availability of Vodafone products in the retail outlets. To find out comperative selling of Airtel and Idea with respect to Vodafone (in monthly basis). Network survey of area covered by Single BTS (Preferably in 3 KM radius).

Information requirement

Before going for the survey I had to know about all the products and services of Vodafone.

I had to know about all the distributors and retail outlets of DELHI city.

I need to know about all the Single BTS area.

SOURCES OF DATA Primary sources The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher. Secondary sources The secondary sources were used only for collecting information regarding the sample; they were however not used for analysis.RESEARCH DESIGN A Research design specifies the methods and procedures for conducting a particular study. It is a map (or) blue print to which the research is to be conducted. Descriptive research design has been considered as a suitable methodology for present study and for data analysis.

SAMPLING DESIGN The sampling design used was Convenience sampling, which is a non-probability sampling method. The convenience factors were the availability and approachability of the respondents.

POPULATION All types of outlets that stock and sell Vodafone products and services in the markets.

PLACES OF STUDY The study was conducted in the retail outlets in DELHI in the following area: Lakhe Nagar New Rajendra Nagar. Katora Talab. Shailendra Nagar. Byron Bazar. Budhapara. Golbazar Santoshi Nagar. Purani Basti. Sanjay Nagar. Sundar Nagar. Shankar Nagar New Shanti Nagar Pandri Mova Lodhi para Fafadih Devendra Nagar Station Road Sakara Sarora Mandir Hasaud Sai Nagar M.G.Road Tatibandh Telibandha

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the presence of Voda products.

Tools Utilized

Percentage Analysis

Graph Chart

SAMPLING

1. Sampling Technique: Non probability sampling (A non probability sampling technique is that in which each element in the Population does not have an equal chance of getting selected.)

2. Sample size : 26 areas and 200 retail outlets

3. Method: Direct interview through questionnaire.

4. Data analysis method: Graphical method.

6. Area of survey : DELHI District.

7. Timing of survey : 10:30 am to 7:00 pm.

Note: All the data of sales are mentioned on the basis of survey work done in April-May, 2009.

D A T A A N A L Y S I S & F I N D I N G S

Data Analysis: 1. Sales of Vodafone Products:

VODA PRODUCTSSALES IN PERCENTAGE

SIM Cards

25%

E-top up50%

Paper Vouchers20%

Hand Sets5%

Table No. 1

Graph No. 1 1. Sales of Vodafone Products in compare to other telecom companies:

TELECOM COMPANIESSALES IN PERCENTAGE

Airtel45%

Idea30%

Vodafone25%

Table No. 2

Graph No. 2

2. Network Quality of Vodafone BTS:

NETWORK QUALITY IN SINGLE BTS TOWN AREASALES IN PERCENTAGE

Very Good90%

Good8%

Poor2%

Table No. 3

fGraph No. 3

4. Satisfaction Level of Retailers from Distributors Service:

RETAILERS SATISFACTION ` LEVELNO. OF RETAILERS(In Percentage)

Highly Satisfied85%

Satisfied13%

Least-satisfied2%

Table No. 4

j Graph No. 4

Findings:(i) Selling of E-top up is more than other products and selling of handsets are very less.(ii) Airtel has covered maximum part of the market, so it can be said as the biggest ,competitor of Vodafone.(iii) Network quality of single BTS is very good in maximum places but it is not so good in out of its 3 KM radius.(iv) Most of the retailers are satisfied with services of Vodafone and its distributors but in some outlets it is not like that.

About Distribution pattern of Voda products:

One distributor has near about 250 300 outlets for distribution. And 1 DSE/FOS has near about 30-35 outlets. Role and responsibilities of the distribution: Every retailer should have 7 days stock of Paper Vouchers; Every retailer should have 3 days stock of E-top up; Every retailer should have 1 month stock of Handsets; Every retailer should have minimum 50 SIM.

C O N C L U S I O N

Conclusion:

From the survey conducted the following conclusions can be drawn: Vodafone has a good market response. All retailers and customers are happy with the services given by vodafone. Canopy activities and van activities are really helpful to promote the sales. Time to time surveys are very much helpful to get the comlaints and suggestions of the customers and retailers. Vodafone tariff plans and schemes are cheaper than other telecom services so customers are happy with that.

R E C O M M E N D A T I O N S

Recommendations:

1. Sim card activation must be on time, it should not be delayed.2. SIM Card price should be same as much as possible in different retail outlets.3. Most demanded products should be continue in the market (e.g. 99 Bonus card).4. There should be slight reduction in STD call rates. (recentaly BSNL announces reduced rates on STD calls )5. Expansion of Network/coverage must be fast in the village places.6. Advertisement of advance services of vodafone must be there along with the normal tariff plans.(eg.- Internet service, cell banking etc).

A p p e n d i c e s

Abbreviations:There are some abbreviations which are used in telecom sectors, they are:

ACTActivationCIFCustomer Information FormFCCFirst Chargable CallFOSField Officer SalesISOIndependent Sales OfficerTHQTehsil Head QuaterDHQDistrict Head QuarterBTSBase Transmission System

D e t a i l s o f D i s t r i b u t o r s . & R e t a i l e r s

There are 3 distributors in DELHI City, they are: 1. Chirag Agency;2. Om Electricals;3. Vikas Enterprises.

And they distribute total 891 outlets all over the DELHI and its near area. List of the outlets are given below with the name of their distributor, FOS name and address:

Questionnaires

RETAIL SURVEY FORMAT

Name of the Town/Village________________________________

Population________________________________

District/Highway Name________________________________

Name of the Retail Shop________________________________

Name of the Retailer________________________________

Retailer Address________________________________

Demo/Lapoo SIM No.Vodafone _______________________ Airtel _______________________ Idea _______________________

Name of the Distributor forVodafone _______________________ Airtel _______________________ Idea _______________________

Total No. of ActivationVodafone _______________________ Airtel _______________________ Idea _______________________

Activation for Telecom IndustryTotal _______________________

Sells HandsetYes/No How many/month ________

Turn Over (SIM+RCV)Vodafone _______________________ Airtel _______________________ Idea _______________________

Turn Over (SIM+RCV)Total _______________________

Trainee Name____________________Date of Visit_____________________

Questionnaire format for Retailers

Purpose- To know the satisfaction level of Retailers from Vodafone and its distributors services.

Retail Outlet NameName of FOS & Distributor Regular Visit of FOS (Yes/No)Satisfied with voda services(Yes/No)Complaints/Suggestions (If any)

GIS POP & NETWORK QUALITY FORM

Name of District__________________________

Name of Single BTS__________________________

Name of Nearest Vodafone Distributor Town _______________________ Distance in KM______________Name of Nearest THQ_______________________ Distance in KM______________

Name of Nearest DHQ_______________________ Distance in KM______________

NAME OF THE . RETAILER AREA NAME NETWORK QUALITY INDOORNETWORK QUALITY OUTDOOR

Name of the Villages/Town being covered from the BTS (Preferably in 3 KM radius):

_______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________

These questionnaires had been made to complete the following action plans: To check the Network Quality in all the markets of the town. To check the Indoor & Outdoor Coverage in all the important places of the town & all telecom retail outlets & to fill the Network Quality Form. To visit all the telecom outlets & to fill the Retail Mapping in attached the attached questionnaire. To visit the villages/towns within 3 KM radius of the single BTS to check the Network Quality. To note the distance of the town from the nearest Voafone Distributor Town / THQ & DHQ in Network Quality Form.

B I B L I O G R A P H Y

BIBLIOGRAPHY

WEBSITE:www.voafoneessarspacetelltd.com

SEARCH ENGINES:www.google.com

BOOK REFERENCE:Research Methodology: By C.R.Kothari. (Second Edition) Marketing Management: Philip Kotler (Eleventh Edition) Marketing Management: By Dr. S.K. Gupta (Sixth Edition)

Our Promotional ActivitiesVodafone: Canopy ActivityVan Activity

Vodafone project Report

Documents

Transcript of Vodafone project Report