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EXECUTIVE SUMMARY

This project is based on telecom sector as the telecom sector is growing at a very good

pace. The telecom company where I did my summer internship project is

VODAFONE. The reason behind selecting Vodafone is its various schemes in product

& service category & also its future policies where the company is coming out with lots

of new & affordable schemes for its customers.

Vodafone is a UK based company & has presence all over the world. The company

was started in the mid 70‘s & since then it has never looked back. The products &

services offered by Vodafone are of a very high quality & also at affordable rates.

They have various plans for various customers depending on the status of the

customers.

Vodafone has various product categories ranging from internet, mobile phones,

headsets & headphones & many more. In the service category it has telecom services

and internet services which include broadband internet & PC internet services.

Vodafone also came out with cell phones for the poor which were a part of their social

responsibility toward the poor class people of the society. The phones were available in

the range of Rs. 750 - Rs.1500 which was one of the successful strategies of Vodafone.

According to the June 2010 data VODAFONE Essar‘s market share is 23.89% and is just after

Bharti with 29.92%.

This report is based on the collective work of two months on a project called MERA

GAON MERA DESH, where we did our research on the MFS (Mera Gaon Mera Desh

focus sites) to increase our subscription rate. During this period we visited these sites

and villages which come under these sites and got response from the retailers and

shopkeepers there, regarding their experience with Vodafone as a user and selling our

products there and for promoting the

Vodafone.

Among those whose response was taken includes Kiryana shops, medical stores, mobile

repair shops, std/pco , tailor/parlors , etc. Random stratified sampling method was

considered to be best suited to fulfill the project. A structured questionnaire was

constructed in order to measure the responses of respondents on suitable scale. The data

of sites was given by Vodafone and the primary data collection from retailers was done

through personal visits.

Apart from this questionnaire our main task was to tell them the benefits of selling

recharges and solve their queries and to convert them in our UEOs (Unique E-top

Outlets) and UAOs (Unique Activation Outlets) by filling their ACT forms and

providing them with Recharge coupons and

E-top sim. Also to give them posters and banners for promotion and advertisement

in the form of new outlet kit.

L i s t of T ab l e s :

Table-2.01 History of cellular telephony in India.

Page No.

14

Table-2.02 Vodafone‘s People Strategy. 29Table-4.01 Types of outlets visited. 48Table-4.02 No of Vodafone users 49Table-4.03 Experience with Vodafone 50Table-4.04 Reason for experience 51Table-4.05 Customer care service experience 52Table-4.06 Experience of roaming facilities 53Table-4.07 Knowledge about Vodafone Thank you card 54Table-4.08 Selling recharge coupons and E-top values 55Table-4.09 Companies people selling 56Table-4.10 Idea about Telecom Business 57Table-4.11 Interest in selling Vodafone 58Table-4.12 Reasons for not selling 59Table-4.13 Want to sell coupons and E-top values 60Table-4.14 Want to sell new sim 61Table-4.15 Reasons for not selling 62Table-A Biswamil Non- etop retailers 79Table-B Biswamil E-top retailers 80Table-C Gannaur E-top retailers 81

L i s t of C har ts : Page No.

Chart-2.01 History of telecom in India 15Chart-2.02 GSM players in India 16Chart-2.03 CDMA players in India 17Chart-2.04 World Economic Pyramid 34Chart-4.01 Type of outlets 48Chart-4.02 Vodafone Users 49Chart-4.03 Experience with Vodafone 50Chart-4.04 Reason for experience 51Chart-4.05 Customer care service 52Chart-4.06 Roaming facilities 53Chart-4.07 Vodafone thank you card 54Chart-4.08 Telecom business selling recharges 55Chart-4.09 Idea about telecom business 57Chart-4.10 Interested in selling Vodafone 58Chart-4.11 Want to sell Vodafone coupons 60Chart-4.12 Want to sell new sim 61

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T a b le of C o n t e n ts : Page no.

Chapter 1 - Introduction

1.1 - Purpose of the Project. 81.2 - Objective. 91.3 - Scope of the Research 10

Chapter 2 - Company Profile

2.1 - About the Company 122.2 - About the Topic 31

Chapter 3 - Methodology

3.1 - Research Design 373.1.1 - Type of Research 383.1.2 - Population/Universe 383.1.3 - Sample Size 413.1.4 - Sampling Technique 41

3.2 - Data Collection3.2.1 - Primary and Secondary data 423.2.2 - Instruments for Data Collection 423.2.3 - Method for Data Collection 43

Chapter 4 - Data Analysis 45

Chapter 5 - Findings and their Implications 62

Chapter 6 - Limitations of the Study 65

Chapter 7 - Recommendations / Suggestions 67

Chapter 8 - Conclusions 70

Bibliography 72

Annexure.1. Questionnaire. 742. New outlet data. 77

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INTRODUCTION

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CHAPTER – 1

INTRODUCTION

1.1 Purpose of the project.

The basic purpose of the project MGMD is to focus on the areas where the subscription

base or the customer base is low. All the customers and retailers were tracked on the basis

of CSI (Cell Site Intelligence).

Through this project company‘s motive is to increase the customer base in these areas over

their competitors by opening new outlets in these areas who can sell Vodafone recharges

and new connections.

Another purpose of this project is to open outlets everywhere so that customer will not

face problems in finding Vodafone recharge and he can get his mobile recharged in 5 min.

anywhere.

By visiting the MGMD villages personally, importance was given to get the retailer‘s

response as a user about Vodafone services and to make them start selling Vodafone

recharges there on commission basis, so that subscription rate will increase there and the

customers nearby will not face problems in getting recharges and new connections and

they will not be any need for them to go far places to get their phones recharged.

Also through this awareness about TYC( Thank you card) was done so that they will visit

Vodafone stores and mini stores and can get free gifts from there.

Pamphlet distribution at main locations in villages through van.

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1.2 Objective:

The objective of the project and research is to know about the view of retailers in

the villages as a user about the Vodafone and satisfy their queries and make them

understand the telecom business of selling the Recharge coupons, Values and New

connections for the Characteristics low income and rural consumers.

With the help of the questionnaire we were able to know their status and their

problems in selling our recharges. With the help of our understanding and company‘s

policies and information we solved their queries and convert many of them into our

outlets.

Position, promotion, price and placement of service product.

To increase our village wise DPL i.e., Dealer per lakh. This shows the presence of

Vodafone in the market and convenience for users.

Another objective of this project was to do activities to convert Competition

customer to Vodafone (BSNL/AIRTEL). For this purpose TYC promotion and

brand promotion, for its customer focused activities, was done.

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1.3 Scope of Research:

Since, the telephony has started in India, the telecom companies were concentrated to

provide the best of their services in the big cities of India and this was the reason they

were more on increasing their subscriber base in cities. But now due to increasing

competition, companies are searching for new ways to increase their business and market

share. For this Vodafone has come up with a plan to penetrate the rural area and villages,

where it can increase its subscriber base and can promote itself with various schemes

specially for the rural people.

Though this report is totally devoted to the work done for the Vodafone, but it can work for

other companies as well if they want to penetrate the rural villages and want to increase

their subscriber base there.

To penetrate the market of rural villages companies will have to set up their outlets to

sell them and for that they will have to know the lifestyle and issues among retailers in

rural about their understanding of this field.

So the scope of this research is for all telecom players. The questionnaire is designed to

know about the people of villages and their problems and issues in starting telecom

business which can be of help for other telecom companies as well.

In order to cater to rural consumers, it is important to understand and respect their

livelihood and for promoting yourself activities like pamphlet distribution, Muniyadi, TYC

distribution, personal Visits, direct and easy interaction , etc all are part of rural marketing

which have scope in other company‘s promotion as well.

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COMPANYPROFILE

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2.1 About the Company.

CHAPTER-2

COMPANY PROFILE

I nd i an T e l ec o m m un i c a t i on I nd u s t ry

The Indian telecommunications has been zooming up the growth curve at a feverish pace,

emerging as one of the key sectors responsible for India's resurgent economic growth.

India has surpassed US to become the second largest wireless network in the world with a

subscriber base of over 391.76 million, according to the Annual report of Telecom Regulatory

Authority of India (TRAI).

Table 2.01 History of Cellular Telephony in India

YEAR EVENT1992 Telecommunication sector in India liberalized to bridge the gap through

government spending & to provide additional resources for the nation‘s telecomtarget. Private sector allowed participating

1993 The telecom industry gets an annual foreign investment Rs 20.6 million

1994 License for providing cellular mobile services granted by the government of Indiafor the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile service to be duopoly (i.e. not more than two cellular mobile operators could be licensed in each telecom circle), under a fixed license fee regime for 10 years.

1995 19 more telecom circles get mobile licenses

1995(aug) Kolkata became the first metro to have a cellular network

1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs 17,756.4 million

1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million

1999 Tariff rebalancing exercise gets initiated

1999(Mar) National Telecom Policy is announced

2000(Jan) FDI inflow drops further down to Rs 918 million coming

2000(June) Amendment of TRAI Act

The booming domestic telecom market has been attracting accelerating amount of investment.

The cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 6.14

billion. In fact, the surge in mobile services market is likely to see huge amount of investment

implying a mobile in the hands of every second person in the country.

Among the recent nine bidders for 3g auctions, Vodafone accounts for the highest FDI at

70.9%, which includes Vodafone‘s investments and some of Essar‘s own foreign investments.

The second largest FDI is in Aircel with its foreign investor — Global Communication Services

Holding (GCSH) owning 64.9%. Deccan Digital, which owes 34.9%, is, in turn, also held 25%

by GCSH.

Graph No.2.01

Government has taken many proactive initiatives which have provided a framework for the

rapid growth of the telecom industry

Chart No.2.01

• Opening the industry for private sector participation.

• 100 per cent FDI is permitted in telecom equipment manufacturing through the

automatic route.

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

• Establishment of an independent regulator - the Telecom Regulatory Authority of

India (TRAI)-for the telecom sector.

• Introduction of a Unified access licensing regime for telecom services on a pan-

India basis.

• Implementation of New Telecom Policy (NTP'99).

• Introduction of Calling Party Pay (CPP) regime and lowering of access deficit

coupled with introduction of revenue share regime in ADC.

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

fourth quarter of 2008.

• Allowing service providers to share active infrastructure.

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In GSM services major players are:

Chart No. 2.02

In CDMA major players are:

Chart No. 2.03

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Key people

ABOUT VODAFONE

Chairman : Sir John Bond

CEO : Vittorio Colao

Deputy Chairman : John Buchanan

CFO : Andy Halford

D U R I N G 1 9 8 0 ’ s

Vodafone made the UK's first mobile call at a few minutes past midnight on 1st January 1985.

Within fifteen years, the network was the largest company in Europe and the largest of its kind

anywhere in the world. By the turn of the century, almost every second UK citizen had a

mobile

– and a third of them were connected to Vodafone.

The Vodafone story is one of investment, innovation and award-winning customer service.

Above all, it‘s one of growth and the ability to deliver the tremendous benefits of mobile

communications, not just in the UK but worldwide.

1982

• The Racal electronics group wins its bid for the private sector UK cellular license. It sets up

the Racal telecoms division and names the new network ‗Vodafone‘ to reflect the provision of

voice and data services over mobile phones. Based in Newbury, the company has less than 50

employees, all in one building.

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1985

• The Vodafone analogue network is the first cellular network to launch in the UK, and the first

call is made from St Katherine‘s dock in London to Newbury on 1 January 1985.

1987

• Vodafone is recognized as the largest mobile network in the world.

• Vodata is created as the ‗voice and data‘ business to develop and market Vodafone recall, the

voicemail service.

• Vodapage is launched, providing a paging network that covers 80% of the UK population.

1988

• Racal telecomm plc floats on the London and New York stock exchanges.

1989

• Paknet is formed as a joint venture between Racal telecom and cable & wireless

V O D A F O N E D U R I N G 1 9 9 0 ’ S :

1991

• Racal and Vodafone demerge. And the Vodafone group is listed as an independent company

on the London and New York stock exchanges.

• Vodafone and telecom Finland make the world‘s first international roaming call.

• Vodafone launches its digital (GSM) mobile phone service – the first in the UK.

1992

• Vodafone and telecom Finland sign the world's first international GSM roaming agreement.

1993

• Vodafone group international is formed to acquire licenses and supervise overseas interests.

• Vodafone opens its first high street store.

1994

• Vodata is the first network operator in the UK to launch data, fax and sms services over

the digital network.

• Vodafone joins the global star consortium to develop and launch a low earth orbiting satellite

mobile phone service.

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1996

• Vodafone is the first network operator in the UK to launch a pre-pay analogue package.

• Per second billing on the digital network is introduced, as well as options to buy ‗bundled‘

minutes and make off-peak local calls to landlines.

1997

• Chris gent succeeds Sir Gerald Whent as chief executive officer of Vodafone group plc.

1999

• Vodafone air touch plc is created as a result of a successful merger between Vodafone

group plc and air touch communications Inc.

• On 5 January Vodafone connects the five million customers in the UK.

V O D A F O N E D U R I N G 2 0 0 0 ’ S :

2000

• The acquisition of Mannesmann Ag almost doubles the size of the Vodafone group making

it the largest mobile telecommunications company and one of the top ten companies, by

market capitalization, in the world.

• Vizzavi is launched, a 50/50 joint venture between Vodafone air touch and vivendinet to

deliver a multi-access branded internet portal for Europe.

• Vodafone acquires the largest available 3g license in the UK. In parallel with the

development of 3g, Vodafone announces its intention to offer GPRS (general packet radio

service) to UK corporate customers.

• The global star satellite communications service is launched in the UK.

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2001

• Vodafone introduces instant messaging to its networks.

• Vodafone makes the world‘s first 3g roaming call between Spain and Japan.

2002

• Vodafone trials its global mobile payment system in the UK Italy and Germany.

• Vodafone launches the first commercial European GPRS roaming service.

• The Vodafone group foundation is launched. The group and its subsidiaries plan to contribute

£20 million to community programs, guided by the group social investment policy.

• Vodafone launches Vodafone live! & mobile office, two new consumer and business

propositions.

Arun Sarin was selected to succeed Sir Christopher Gent as Chief Executive of Vodafone

group plc.

2003

• Vodafone live! attracts 1 million customers in its first six months.

• Orange, telefonica moviles, t-mobile, and Vodafone form a new association to

drive interoperable mobile payments.

2004

• Vodafone launches its first 3g service in Europe with the Vodafone mobile connect

3g/gprs data card.

Vodafone live! With 3g is launched in 13 markets.

2005

• Vodafone simply is launched, giving customers new, easy-to-use voice and text services.

• Vodafone introduces passport, a new voice roaming price plan.

2006

• The number of Vodafone live! Customers with 3g reach 10 million

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VODAFONE ESSAR

MD and CEO Vodafone Essar : Marten Pieters.

Mission & Vision

―To enrich our customer's lives through the unique power of mobile communication‖

Also its vision is to be the world‘s mobile communication leader – enriching customers‘

lives, helping individuals, businesses and communities more connected in a mobile world.

Passion for Customers

Our customers have chosen to trust us. In return, we must strive to anticipate and understand

their needs and delight them with our service. We value our customers above everything else

and aspire to make their lives richer, more fulfilled and more connected.

We must always listen and respond to each of our customers. We will strive to delight our

customers, anticipating their needs and delivering.

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16

telecom circles in India. Despite the official name being Vodafone Essar, its products are

simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage

throughout India and is especially strong in the major metros.

Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM

technology, offering voice and data services in 16 of the country's 23 license areas.

Ownership

Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%.

On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka

Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja

Group, and Essar Group, which is the owner of the remaining 33%. The whole company

was valued at USD 18.8 billion. The transaction closed on 8 May 2007.

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Previous Brands

Initially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE..... In

December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its

services under a single identity. The Company entered into agreement with NTT DoCoMo

to launch i-mode mobile Internet service in India during 2007.

The company used to be named Hutchison Essar, reflecting the name of its previous owner,

Hutchison. However, the brand was marketed as Hutch. After getting the necessary government

approvals with regards to the acquisition of a majority by the Vodafone Group, the company

was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on

20 September 2007.

Vodafone Essar spent somewhere in the region of Rs 250 crores on its high-profile transition.

Along with the transition, cheap cell phones have been launched in the Indian market under

the Vodafone brand.

Growth of Hutchison Essar

In 1992 Hutchison Whampoa and its Indian business partner established a company that in

1994 was awarded a licence to provide mobile telecommunications services in Mumbai

(formerly Bombay) and launched commercial service as Hutchison Max in November 1995.

Analjit Singh of Max still holds 12% in company.

By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had

acquired interests in six mobile telecommunications operators providing service in 13 of

India's

23 license areas and following the completion of the acquisition of BPL that number increased to

16. In 2006, it announced the acquisition of a company that held license applications for the

seven remaining license areas.

In a country growing as fast as India, a strategic and well managed business plan is critical

to success. Initially, the company grew its business in the largest wireless markets in India -

in

cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to

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establish a robust network, well known brand and large distribution network -all vital to long-

term success in India. Then it also targeted business users and high-end post-paid customers

which helped Hutchison Essar to consistently generate a higher Average Revenue per User

("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish

leading positions in India's largest markets providing the resources to expand its footprint

nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding

agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity

and loan interests in Hutchison Essar Limited for a total cash consideration (before costs,

expenses and interests) of approximately US$11.1 billion or HK$87 billion.

Hutch was often praised for its award winning advertisements which all follow a clean,

minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses

only white letters on red background. Another recent successful ad campaign in 2003 featured a

pug named ―Cheeka‖ following a boy around in unlikely places, with the tagline, Wh e r eve r

y ou go, our network follows. The simple yet powerful advertisement campaigns won it many

admirers.

1992: Hutchison Whampoa and Max Group established Hutchison Max

2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through

ESSAR acquisition

2001: Won auction for licenses to operate GSM services in Karnataka, Andhra

Pradesh and Chennai.

2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in

Rajasthan, Uttar Pradesh East and Haryana telecom circles and renamed it under

Hutch

brand.

2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar

Pradesh West' and 'West Bengal‘.

2005: Acquired BPL, another mobile service provider in India.

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2008: Vodafone acquired the Licenses in remaining 7 circles and has started its pending

operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya

Nagar, Bhopal as well as in Orissa, Assam, North East and Bihar

2008: Vodafone launched the Apple i-Phone 3G to be used on its 17 circle 2.75G network.

2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card Industry

Security Standard (PCI DSS) certification for its Mumbai operations and launches

unlimited SMS offer in Mumbai

2010: Vodafone has crossed the landmark of 100 million subscribers in India. With this

achievement, Vodafone Essar becomes world‘s 5th operator with 100 million customers in a

single country. Vodafone has also increased its market share to strengthen its position as

India‘s second largest operator in terms of revenue.

―This is a significant achievement for us and reflects the trust customers have bestowed on the

company,‖ said Marten Pieters, Managing Director and CEO, Vodafone Essar, ―In the past

three years, we have invested over Rs. 20,000 crores to expand our operations to service

customers in India. We will utilize our global and Indian experience to deliver the best products

and services to our customers.‖

Starting with about 28 million subscribers across 16 circles in May 2007, Vodafone Essar today

has 100 million customers and its footprint has extended to all the 23 circles in the country. This

journey is a testimony of Vodafone‘s success in a highly competitive and price sensitive market.

Around 60% of the Company‘s customer additions now come from upcountry areas. With a

distribution reach of about 1.2 million outlets, Vodafone is well-geared to serve customers in the

remotest corners of India.

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PRESENCE

Vodafone currently has equity interests in 31 countries across five continents and around

44 partner networks worldwide.

LOGO

A new visual identity—from the deep pink logo of Hutchison-Essar to Vodafone‘s trademark

deep red speech mark introduced in 1998.

Advertisement:

The inaugural TV commercial showed the trademark pug (minus the boy) moving out of a pink

kennel into a red one. An energetic version of Hutch‘s signature ‗You and I‘ tune played

towards the end, as the super concluded, ‗Change is good. Hutch is now Vodafone‘. There were

four

more commercials featuring Hutch‘s animated boy and girl, introducing the new brand‘s logo to

consumers.

Vodafone put in close to Rs 150 crores into the first phase of the rebranding exercise—with Rs

60 crore in mass media and another Rs 90 crores in retail activities.

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In the second phase, Vodafone ushered in its global strap line—―Make the most of now‖, which

replaced ―How are you?‖ in 2001. By then it was apparent, the boy-and-pug chapter would

soon be over. In 2008, Vodafone used the platform of cricket when it unveiled the ‗Happy to

Help‘ series during the first season of the Indian Premier League (IPL).

This season the Zoo zoos are all the rage. These characters have virtually hijacked the online

media as well as television—to convey a value added service (VAS) offering in each of the

new commercials.

In Indian scenario when other major telecom service providers are using celebrities

( Airtel-Shahrukh Khan, BSNL-Deepika Padukone, Aircel-Mahendra Singh Dhoni,

Idea- Abhishek Bachchan) as their brand ambassadors, Vodafone is standing out

proudly with Zoozoos and pug as successful ad campaign.

Products and services in India:

Average cost of calls: 2 US cents per minute

Average revenue per customer: US$6.4 per month

853,039 points of sale, covering 65% of the population

With more than 3 million Vodafone-branded, affordable handsets sold in

2008/09, Vodafone ranks among the top five handset brands in India.

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Brand and customer communications

In the Brand Z most powerful brands ranking: Ranked 11th globally.

In telecom industry it proudly stands as world no. 2 after China

And no. 2 GSM service provider in India after Airtel.

Distribution

Direct distribution-Number of directly owned stores – 1150+

Vodafone directly owns and manages over 1,150 stores. These stores sell services to new

customers, renew or upgrade services for existing customers, and in many cases also

provide customer support.

A standard store format, which was tested in 2006, was rolled out in 11 markets during the 2008

financial year. All stores in India were rebranded as Vodafone and over 40 stores were

refurbished to the Group‘s standard format.

The Group also has over 6,500 Vodafone branded stores, which sell Vodafone products and

services exclusively, by way of franchise and exclusive dealer arrangements.

The internet is a key channel to promote and sell Vodafone‘s products and services and to

provide customers with an easy, user friendly and accessible way to manage their Vodafone

services and access support. Additionally, in most operating companies, sales forces are in

place to sell directly to business customers and some consumer segments.

Philosophy- OUR PEOPLE

Vodafone rely on its people – their enthusiasm, their talent, their commitment – to maintain

and build on the success of our business, even more so in today‘s competitive market. It

depends on people to deliver excellent service to its customers.

Vodafone believe that the better experience our people have at Vodafone, the better service

they will give our customers. Vodafone Group employs approximately 71,000 people around

the

world.

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Vodafone want to enhance its reputation as an employer that provides excellent development

opportunities, equipping employees with the skills and experience they need to help

Vodafone compete successfully.

It aim to ensure that all its working environments are inclusive, safe, promote wellbeing, treat people with respect, and engage employees, and offer attractive incentives and opportunities.

Vodaf one Pe opl e Str ate gy

The Vodafone People Strategy sets out a clear statement of its commitments to employees and expectations of them in six key areas.

Table No. 2.02

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VODAFONE’S MARKETING MIX

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

product - features and benefits of a good or service

place - where the good or service can be bought

price - the cost of a good or service

Promotion - how customers are made aware of a good or service.

Pr o d u c t

A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information - and soon view video clips and send video messages.

Vodafone live! Provides on-the-move information services.

Pl a c e

Vodafone UK operates over 300 of its own stores.

It also sells through independent retailers e.g. Car phone Warehouse.

Customers are able to see and handle products they are considering buying.

People are on hand to ensure customers' needs are matched with the right product and to explain the different options available.

Pri c e

Vodafone wants to make its services accessible to as many people as possible: from the young, through apprentices and high powered business executives, to the more mature users.

It offers various pricing structures to suit different customer groups.

Monthly price plans are available as well as prepay options. Phone users can top up their phone on line.

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

Pr omoti on

Vodafone works with icons such as David Beckham to communicate its brand values.

Above the line

Advertising on TV, on billboards, in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively. This is known as above the line promotion.

Below the line

Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy.

Vodafone's stores, its products and its staff all project the brand image.

Vodafone actively develops good public relations by sending press releases to national newspapers and magazines to explain new products and ideas.

Vodafone's marketing strategy

Vodafone's marketing aim in the UK is to retain market leadership.

Vodafone's strategy is product-led; the company is continually developing new products

and services which utilise the latest technological advances.

However, as consumers become increasingly sophisticated users of modern mobile

technology, they make new demands and seek added value through product improvements.

Consumers are becoming more demanding and suppliers have to listen. Vodafone must feed

this back into its product strategy.

In the UK, the mobile phone market has approached maturity in a very short space of time,

particularly with young people. To keep its leading edge, Vodafone is continually looking to

add value to the services it provides and to the packages it offers to customers.

Soon, within the UK, there will be few new customers available. So the challenge is to

provide added value services and competitive charges to existing customers who are becoming

more

sophisticated and demanding.

Page 31 of 79

Page 32 of 79

For example, young people think hard about which mobile phone to buy. In their search for the

widest range of appropriate services and the best value for money, young people in particular

examine catalogues, surf the Internet and study what their friends have bought. Trying to sell

to them is tough.

In order to retain market leadership, Vodafone has established a set of marketing

objectives. These are to:

Obtain new customers

Keep the customers it already has

Introduce new technologies and services (eg text messaging,

WAP) Continue to develop the Vodafone brand.

Vodafone is achieving these objectives by continually updating the range of phones and

services offered to keep ahead of its competitors. Vodafone also communicates regularly with

its customers to keep them well informed of the benefits of all Vodafone products.

Page 33 of 79

2.2 ABOUT “MERA GAON MERA DESH” PROJECT

The new mantra for the Telecom sector

“R OT I, KA PD A, MA KA A N AUR MOB IL E ”

Market /Products Present New

Present

New

Prepaid/Post-paid services Wi-max,3G

Rural Sector M2M services,WiBro

In order to diversify its current market portfolio, Vodafone is launching a global Machine to

Machine (M2M) service platform for helping companies to deploy and manage large, wireless

M2M projects for applications in customer service enhancement and central control and

automation of projects. In the Indian context, M2M is an untapped sector with enormous

potential for growth. WiBRO (Wireless Broadband) has the capacity to overcome data rate of

limitation of mobile phones by providing a staggering 30 to 50 MB/s speed. As in the case of

M2M platforms, WiBRO is a very promising market in India. Providing these two services in

India would open new avenues of growth for Vodafone and would help it diversify into

different market verticals.

With this diversification and for more market penetration in the rural areas Vodafone has

started a new project ―Mera Gaon Mera Desh‖. Since more and more companies are entering in

the telecom market of India so it‘s becoming difficult for the companies to just sit and eat the

fruits. It is very difficult already for the existing players as profit margins are reducing with

increase in number of players. The profits have reduced due to the slashing of call rates.

However, the profits realized are due to increasing usage rates .Stiff competition is giving rise

to fear among companies of losing the present customers so company has decided, with more

service to customers, to enter into the rural areas where the subscription rate is low and focus its

activities on servicing this sector and increasing subscriber rate.

Page 34 of 79

MARKET DEVELOPMENT

India is still an agrarian economy and over 60 percent of its population still dwells in rural areas.

According to recently conducted surveys, statistics showed that 45% of the overall telecomm

sector growth is to come from the rural sector. A major chunk of Vodafone‘s revenue is still

generated from tier 1 and tier 2 cities. This leads Vodafone to place further focus on rural

penetration so as to create economies of scale as well as the top line growth of revenues.

Development of infrastructure in rural areas is a bottleneck due to the cost factor associated with

it. Project MOST (Mobile Operators' Shared Towers) by COAI was initiated in order to reduce

these heavy costs by sharing infrastructure between the service providers, hence resulting in

better coverage and quality. Optimal rural penetration can be achieved by taking into account

the economic environment prevailing in the rural sector. This would encompass the socio

economic factors and would hence provide a more regional focus to the advertising and

promotional strategies in order to establish a good connect with the rural customers.

The Census of India defines rural explicitly. Areas with clear surveyed boundaries not having a

municipality, corporation or board, with density of population not more than 400 per km sq. and

with at least 75% of the male working population engaged in agriculture and allied activities

qualify as rural.

Keeping this in mind, looking at strategic first mover advantages, company has

started the project MGMD. The company has identified areas where subscriber base rate is

very low. So to increase that rate in these areas company has come up with some plans. These

sites are identified by the technical department by measuring the traffic on BTS (Trans receiver

stations), which gives figures about usage in the area. So the low user sites or MFS

(MGMD focus sites) were given to me where I had to go with the staff and do the promotion and

other activities.

THE BOTTOM OF THE PYRAMID APPROACH

The bottom of the pyramid concept was given by Management Guru C. K. Prahalad;

According to this concept 4 Billion people living under $2 per day comes under this category.

Benefits of Bottom of Pyramid-

There is money at the bottom of pyramid: it is a viable market.

Access to this market requires unconventional approaches and these will be fruitful

in long run.

The bottom of the pyramid consumer is very much open towards advanced

technologies. To cater this category of the pyramid companies are coming with their new ideas

Viz.,

E-Choupal of ITC and Project Shakti of HUL are some of the famous projects by FMCG

companies in rural areas. This MGMD project of Vodafone is some of the like project in

the Telecom Sector.

Chart No. 2.04

Page 35 of 79

MGMD Focus Sites Classification:

Rural/Urban Classification.

Distance from AD (Associate Distributor) town Pass (0 – 3 km), Beech (3-7

km), and Door (7+km).

Traffic on the sites Low, Medium, and

High. Subscriber base of the site.

The main features of this project are:

All the customers and retailers would be tracked on the basis of

CSI (Cell Sites intelligence).

For any retailer who has done 300+ tertiary (E-top recharge) would be classified as

UEO. UEO (Unique E-top Outlet) – Village wise DPL( Dealer Per Lakh) planning.

Dosti : Tie up of small Retailer with MERC( Mobile E-top Recharge) retailer.

Badli : Activity to convert Competition customer to Vodafone (

BSNL/AIRTEL). KIRANA: To Convert all kirana Store of MFS sites into E-top Up

outlet.

Products:

Vodafone has launched a new SKU 50 which would have a retailer landing of Rs 24 and

MRP of Rs.40.

Vodafone have launched a special promotional offer for the entire customer base of the

FOCUS Site‘s wherein they would get Talk time or other benefits through 121best offer.

The Activities for this project include:

TYC Camps in MFS villages.

Van Activity in MFS villages.

Paper Insert. (Mentioning Retailer Shop).

Cable ADD. ( Mentioning Retailer Shop)

Muniyadi in Villages with NETWORK Promotion.

Pamphlets Distribution through CHOWKIDAR.

Page 36 of 79

Support Required:

Vodafone Garden Umbrella For promotion.

Special POP (Posters, Banners etc) for Villages.

STVs (Special tariff Vouchers) & NEW SKU (Stock Keeping Units) for

Villages. Special Talk Time Schemes for BSNL customers.

Page 37 of 79

METHODOLOGY

Page 38 of 79

CHARTER-3

METHODOLOGY

Research Methodology is a highly intellectual Human activity used in the investigation of

nature and matter and deals specifically with the manner in which the data is collected, analyzed

and interpreted.

It‘s basically the methods you intend to adopt to gather information in pursuit of answers to

the research questions.

3.1 Research Design.

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

studies exist. The aim is to look for patterns, hypotheses or ideas that can be tested and will

form the basis for further research. Typical research techniques would include case studies,

observation and reviews of previous related studies and data.

Descriptive Research- Descriptive research can be used to identify and classify the elements

or characteristics of the subject, e.g. number of days lost because of industrial action. Quantitative

Techniques are often used to collect, analyze and summarize data.

Analytical Research- Analytical research often extends the Descriptive approach to suggest

or explain why or how something is happening, e.g. underlying causes of industrial action. An

important feature of this type of research is in locating and identifying the different factors (or

variables) involved.

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

future possibilities, based on close analysis of available evidence of cause and effect. e.g.,

Predicting

When and where future industrial action might take place.

Page 39 of 79

Our Research Design:

Descriptive Research design has been followed for this marketing research. As in descriptive

research proper classification or identification of the elements and characteristics of the

subject is done.

Here as we have to identify the basic reasons for the situations studied, we opt for

descriptive research.

3.1.1 Type of Research

Here our research is more of quantitative type but in some issues pertaining in the village

we took the qualitative angle as well in this research. So our research is a combination of

both.

The emphasis of Quantitative research is collecting and analyzing numerical data. It is

highly detailed and structured and results can be easily collated and presented statistically.

On the other hand the Qualitative research is more subjective in nature and involves

examining and reflecting on the less tangible aspects of the research like feelings, perception

etc.

Also the research is an APPLIED Research as the objective is to apply the findings to

the situation here.

3.1.2 Population/Universe:

In research terminology Universe or population means an entire set, objects or events of

concern to a research study, from which a sample is drawn. Or in other words, population is the

theoretically aggregation of the elements in study.

Here in this project data of the MGMD sites is provided by the company and we identified

some conventional and unconventional outlets present in the areas of our sites.

We covered these outlets and get our questionnaires filled and did our promotional activities

there. Our universe was mainly in the rural areas of Haryana as the MFS (MGMD Focus

Sites

were situated in rural areas only).

Page 40 of 79

The universe includes:

Conventional Outlets

• Telecom

• STD / ISD

• Chemist

• Petrol pumps

• Photo Shops

• Pan Bidi Shop

• General, Kirana

• Gift shops

• Music Shops & DVD Library

• Cyber Cafés

Unconventional Outlets

• Estate Agents

• Opticians

• Milk Booths

• Ice Cream Shops

• Hardware & Auto Spares Shop

• Beauty Parlours & Tailor Shop

• Book shops & Wine shops

• College, Office canteens & Eatery

• Cinema halls

• Hospitals

• Garages

• Security Guards

• Public Toilet (Tourist Areas).

Page 41 of 79

The MGMD focus sites given to me were:

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

1. Purkhas. 11. Kailana.

2. Rajlu Garhi. 12. Kasanda.

3. Begha. 13. Barahi Industrial Area.

4. Shamri Buran. 14. Sanpera.

5. Sardhana. 15. Bajana Khera.

6. Dobheta. 16. Datauli.

7. Ghasoli. 17. Panchijatan.

8. Bhanwar. 18. Tajpur.

9. Kami. 19. Rajpur.

10. Khubru.

M.F.S of M D- Biswamil.

AD- Barota.

1. Jagdishpur.

2. Halalpur.

3. Nahri.

4. Jhundpur.

5. Abbaspur.

6. Malha Majra.

AD- Kharkhoda.

1. Rohat. 6. Kundal

2. Anandpur Jharot. 7. Khanda

3. Thanakalan. 8. Ladravan.

4. Rohna. 9. Pahaladpur.

5. Gopalpur.

Page 42 of 79

3.1.3 Sample Size:

A sample is a sub-set of individuals selected for study from among people or objects within a

defined population. The sample size of our research was all the shops in the MGMD sites areas.

Since our main aim was to open our outlets in the village and to do all promotional activities,

so we decided to cover all the available shops there. This comes out to be 150. This becomes

our sample size.

3.1.4 Sampling Technique:

Sampling is the process of selecting a number of individuals for the study. Sampling enables

the researcher to study a relatively small number of units in place of target population, and to

obtain data that are representative of the whole target population.

Sample Unit: All the retail shops in the MGMD sites were taken as sample units.

Sample Procedure: Since the sites were provided to us so we visited shops there and tried

to cover as many shops as possible. And the selection was Random.

Page 43 of 79

3.2 Data Collection:

The data collection is an important part of research. Without data any research is impossible.

The data is of two types‘ Primary data and Secondary data.

3.2.1 Primary and Secondary Data:

Primary Data: It is the data which is never gathered before. The data was collected by

interactions with the respondents. Primary Data collection is an important part of research;

here data collection was done through Questionnaire and interviews.

Secondary Data: It is the data which is collected already in the past; it can be collected

with the help of secondary source like internet, books, journals, articles etc. The data regarding

MGMD focus sites, their population, already running ueo, etc was provided to me from

company. Also during drafting of report all information was gathered from articles about

company in magazines and from websites. As Vodafone is world renowned company so it was

not tough to gather information about this company.

3.2.2 Instruments for Data Collection.

One of the most common and famous instrument for data collection is Questionnaire. The

questionnaire was designed so that we can know about their knowledge of telecom particularly

about Vodafone and about starting as our outlet. We also collected information regarding the

hurdles and issues they are facing in starting this business and what they think about Vodafone

as a user.

Also with questionnaire another instrument used for this research was interview as-

The low level of respondents, therefore face to face interviews were found suitable to

get reliable information.

The interview schedule was used because the researcher wanted to collect data

with probing questions.

Keeping the objective in mind the questions were designed. We use the interview tool to

get their data and response.

Page 44 of 79

3.2.3 Method for Data Collection:

The method used for data collection was face to face interaction and interviews. During this

project period I visited the rural areas personally and get the data from them through

personal interaction.

It was a great experience to talk directly with the villagers about their business and scope for

Vodafone‘s promotion and business there.

Page 45 of 79

DATA ANALYSIS

Page 46 of 79

Page 47 of 79

CHAPTER – 4

DATA ANALYSIS

We prepared a questionnaire to get the response of the retailers is the rural area sites. Here I am

going to analyze this questionnaire with the help of Pie- charts. These pie-charts give the idea

for various areas we have chosen as responses and their weightage can be seen easily.

Here I am going to analyse each question one by one. And with the help of the understanding,

which I got through personal visits, I am able to analyze these and can give probable thoughts

of the villagers in statistical data form.

These pie charts are of very useful as we can draw information from them which can be proved

to be very valuable now or in future. Any company, who wants to enter in a rural area, wants

proper information available about that area in advance to form the strategies and this analysis

is of great help for them.

Page 48 of 79

Q.1 The type of outlet visited:

Table No. 4.01

Frequency Percent CumulativePercent

Valida) Kiryana store.b) Mobile / repair shop. c) STD/PCO shop.d) Chemist/Clinic. e) Tailor / Barber. f) Photo shop.g) Pan- Bidi shop. h) Other.

TOTAL

7510205531517

150

506.713.33.33.321011.3

100

5056.77073.376.778.788.7100

Chart No. 4.01

This pie-chart reveals that most of the shops visited in the villages were Kiryana store and there

were other non-conventional shops as well like parlors, tailor shops in others constituting 11.3%.

Most of the shops which were converted into Vodafone outlet were the Kiryana shops, pan-bidi

shops, Mobile repair shops, chemist etc.

Page 49 of 79

Q.2 Are you currently a Vodafone user?

Table No. 4.02

Frequency Percent CumulativePercent

Valid No

Yes

TOTAL

30

120

150

20

80

100

20

100

Are you currently a Vodafone user?

NO

YES

Chart No. 4.02

When we asked them what connection they are using then we found that most of our respondent

shopkeepers were using Vodafone services and replied positively for this question which is 80%

of total respondents, it shows that Vodafone‘s subscriber base is increasing in rural areas and

people are adopting its services.

Frequency PercentCumulative

PercentValid Very

Satisfied

Satisfied

No opinion

UnsatisfiedTotal

105

30

7

8150

70.0

20.0

4.7

5.3100.0

70.0

90.0

94.7

100.0

Page 50 of 79

Q.3 what is your experience with Vodafone?Table No.4.03

What is your experience with Vodafone?

Very SatisfiedSatisfiedNo OpinionUnsatisfied

Chart No. 4.03

For their satisfaction level about the services of Vodafone most replied positively as 70% were in

the category of very satisfied, 20% were satisfied with 4.7% didn‘t answer this question and

5.3% were not satisfied with the services. But majority that is 90% were satisfied.

Page 51 of 79

Frequency PercentCumulative

PercentValid yes

No

Total

135

15

150

90.0

10.0

100.0

90.0

100.0

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

(A) Is Network very good?

Table No. 4.04

Yes

No

Chart No. 4.04

When asked about the Network of Vodafone there in their village, 90% said that network is

very good and they do not face any problem in network but 10% said that they face problems

while talking and there is problem of network as in some places in the village roaming starts on

their phone and phone gets cut (Eg.Vpo-tanda).

Page 52 of 79

(B) Is Customer Care Service Very good?

Table No. 4.05

Frequency PercentValid

PercentCumulative

PercentValid yes

No Total

10545

150

70.030.0

100.0

70.030.0

100.0

70.0100.0

Yes 70%

NO 30%

Chart No. 4.05

When asked about their experience with customer care service that majority i.e., 70% said that

they are satisfied with the customer care service and all their queries herd and resolved but

30% were little complaining and said the services are not good and their problems are not

resolved properly and balance gets deducted for services they had not activated.

Page 53 of 79

(C) Are Roaming Facilities Good?

Table No. 4.06

Frequency PercentCumulative

PercentValid yes

NoTotal

120

30150

80.0

20.0100.0

80.0

100.0

Yes 80%

NO 20%

Chart No. 4.06

For a question regarding roaming services most of the people i.e. 80% said that Vodafone‘s

network in all India is very good and where ever they go the network is always very good and

they do not feel any problem in outside Haryana while 20% were complaining and said that

in areas outside Haryana Vodafone is not that strong and also the charges should be low.

Q.5 Do you know about Vodafone’s Thank you card?

Table No. 4.07

Frequency PercentCumulative

PercentValid yes

NoTotal

114

36

150

76.0

24.0

100.0

76.0

100.0

Do you know about Vodafone‘s Thank you card?

YesNO

Chart No. 4.07

When asked about whether they know about Vodafone‘s Thank You Card coupon which they

can get from Vodafone store most people replied positively i.e. 76% said yes they know and get

it every month while 24% said they do not know about this. It shows that Vodafone‘s promotion

is good in rural areas where majority of people are aware about its TYC and as 24% are still

unaware so it has to promote its campaigns more.

Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?

Table No. 4.08

Frequency Percent Cumulativepercent

Valid * Only coupons

*Only E-top value

*Both

*None

Total

17

5

8

120

150

11.3

3.3

5.4

80

100

11.3

14.6

20

100

None 80%

Only coupons 11.3%

Both 5.3%

Only E-top value 3.3%

Chart No. 4.08

When asked about whether they know anything about telecom business and are they selling any

type of recharge than most of the shopkeepers said that they are not into any such recharge

selling (80%), while some were into coupons selling and e-top value selling. This made easier

to open our work there , as some recharge was already available and those people had some

knowledge of this business.

(ii) If selling then of which companies?

Table No. 4.09

FrequencyValid Vodafone

Airtel Idea Tata

Other

15151010

15

Which company’s recharge available?

15

10

Freq

5

0

TATA IDEA AIRTEL VODAFONE OTHERS

Graph No. 4.01

When we asked them about all companies of which they were selling the recharges than

majority were selling Vodafone and Airtel recharge coupons and others include Idea, Tata,

BSNL, and Reliance.

Q.7 If you are not selling any, then do you have any idea about telecom business?

Table No. 4.10

Frequency PercentCumulative

PercentValid yes

NoTotal

114

36

150

76.0

24.0

100.0

76.0

100.0

YES

No

Chart No. 4.09

Those who were not into this business, we asked them about their knowledge of telecom

business that in reply most of the respondent shopkeepers 76% replied that they had no

idea about this only 24% said they are having some idea of this business and they know

about recharge selling and commission which they will get on this.

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

Table No. 4.11

Frequency PercentCumulative

PercentValid yes

No Total

25125150

16.783.3

100.0

16.7100.0

Are you interested in selling vodafone?

YES

No

Chart No. 4.10

When we asked people if they are interested in selling Vodafone than most of the shopkeepers

(83.3%) denied and said that they cannot do this while only 16.7% said yes and got ready to

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

(ii) If no, then any particular reason for not selling?Table No. 4.12

FrequencyValid Illiterate

Age FactorLess Commission Several shops nearby Financial issueCredit issue in village

Other

202540302535

25

If no, then any particular reason for not selling?

50

40

30

Frequenc

20

10

0

Illiterate Age factor less commission several shops near Financial credit issue others

Graph No. 4.02

When asked about their reasons for not starting this business than majority said the

commission is less, others said the villages take things on credit and do not pay for them

frequently so credit issue is also a big problem among villagers. Other reasons include Age

factor as most of the shopkeepers were of older age, several shops were there nearby, financial

issues etc.

Frequency PercentCumulative

PercentValid Only

coupons Only E-top BothTotal

12

83252

23.0

15.461.6

100.0

23.0

38.4.0100.0

Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?

Table No. 4.13

Chart No. 4.11

Those people who got convinced and satisfied with our presentation and promotion were

readily agreed for opening our outlet there and filled the ACT form new E-top connection and

took coupons (61.6%), while 23% opted for coupons only as many of them wanted to check and

test the sales there first before starting work fully and some were not ready to take e-top

recharge as they find it complex, while 8% took E-top recharge only.

Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?

Table No. 4.14

Frequency PercentCumulative

PercentValid yes

No Total

142640

3565

100.0

35100.0

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

YES

No

Chart No. 4.12

When we asked them, are they ready to sell new sim connections than majority i.e. 65% said

no as they gave certain reasons for this while only 35% said yes at once.

FrequencyValid New connection

sale lessI.D. issues Financial issue Others

16

15107

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

Table No. 4.15

If No, then reason for not selling?

25

20

15

Frequenc

10

5

0

New Connection less Sale

I.D. issues Financial issue Others

Graph No. 4.03

When asked about the reasons for not selling the new connections Majority said that in villages

new connections sale is less, others also said that I.D. issue is there and its risky for them

though we gave them solution for this query, Others said they cannot start this as they do not

have finance available, while some said they cannot compete shops in markets nearby who are

offering sim at very low price.

FINDINGSAND

THEIR IMPLICATIONS

CHAPTER – 5

FINDINGS AND THEIR IMPLICATIONS

FINDINGS:

Vodafone has a good customer base in rural areas as well. As among the rural

villagers we have visited, almost 80% were using Vodafone and were aware about its

various

schemes like TYC, and other benefits.

The users were found to be very satisfied with the services they are getting and network

is very good in rural areas as well.

Among the shops we have visited almost 80% were not selling any recharge of any

company. Among others most were selling the paper coupons only.

Although most of the villager shopkeepers were not into this business of telecom were

almost 75% were having some knowledge about this business. They know about various

products of Vodafone and recharges available, E-top recharge, paper recharge, and the

commission they will get for selling (though not exactly the percentage) etc.

Most of the shopkeepers were not interested in selling Vodafone in their shops. They

gave several reasons for this and most frequently given reasons include Illiteracy, Age

factor, Less commission, Financial issues, Credit issues as villagers take things on

credit

and not pay several times.

Those interested most of them took both recharges paper and E-top. Some took only

paper recharge as they wanted to first test this business and wanted to see if they will

get

customers initially.

For selling SIMs (New connections) most of the shopkeepers said No. They were not

ready to sell new connections as they find it very complex and face certain problems.

Page 64 of 79

Most of the problems they are facing include New connection sale is less in villages and

I.D issues also made them to not to sell this.

Overall people were not very advanced and they were ready to cooperate and listen

about the company and things we were saying. Most who understood about this were

ready to

start this business.

IMPLICATIONS:

As Vodafone has good customer base there in rural areas as well so it can focus on it.

Vodafone can get idea about the problems of villagers from this project and can find

new ideas to get rid of them.

Vodafone can use the findings to get more penetration into the other rural areas and can

design its strategies according to the findings and issues pertaining in villages.

This project work is for Vodafone but other companies also can get benefit from it.

They can also implicate this survey for getting the understanding of the rural market

they want

to concentrate on.

Companies who are interested in entering rural areas can use this project work to know

the problems of villagers, which can help them guide in initial steps of entry.

Page 65 of 79

LIMITATIONSOF

THE STUDY

Page 66 of 79

CHAPTER – 6

LIMITATIONS OF THE STUDY

The limitations of our projects include:

This project work is of two months and only few villages were visited, Sample size is

also small i.e. of 150 only so errors may crop in while generalizing the results.

The respondents may be in a hurry and to get rid-off quickly they might not have

responded truly to all the questions.

Most visits were done in the afternoon time, when most of the villagers are in resting

mood and we found some of the shops closed. These may be potential shopkeepers who

may have responded well.

Though most attention is given to analysis but there may be some human error in

analyzing which can create error in generalizing.

Page 67 of 79

RECOMMENDATIONS/SUGGESTIONS

Page 68 of 79

CHAPTER – 7

RECOMMENDATIONS / SUGGESTIONS

This research throws light on various Issues and conditions of Vodafone‘s Rural Market and

can also help Vodafone to improve on different fronts in order to have an edge over its

competitors. Based on the analysis and findings of my research I would like to give

following recommendations:

Most of the shops present in the villages are either Kiryana or paan-bidi type, so company

should come up with new plans to lure these retailers who are least ready for this

business. Also for visiting the shops morning or evening time should be chosen as in

the afternoon we found most of the shops were closed in village.

Most of our respondents were using the Vodafone, so it shows Vodafone‘s services are

good there. Company should use it as the base for increasing its customer base.

Though most of the respondents knew about Vodafone‘s TYC, but a sufficient number

was unaware. So company should promote about TYC in the rural through Muniyadi, or

pamphlets and banners.

Though most our respondents were not selling recharges but they had a fair idea about

this business so this is of great use for Vodafone. The process becomes easy if they know

about it. So company should focus more on satisfying the shopkeepers about their other

issues and hurdles they are facing in opening recharge outlet.

Company should focus more on learning the shopkeepers so that they will be able to do

this business well. The company should make them understand the E-top recharge

process severally as it‘s not easy for some to understand in one go, also their benefits in

Best Deal, etc.

Most of the responses said the commission is less and Credit issue is there in village,

for this Vodafone should come up with strategies to solve these frequent problems and

should make villagers understand this.

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As for selling new connections people were not ready, as they feel there is problem

regarding the I.D issue and finance for sim, whose sale is less so people feel their

money will be blocked if they buy sim. For this company can make new plan and can

provide new sim to them on credit basis whose payment can be made after sale, more

awareness and activities can be organized in village to sell more sim. If more

connections will sell

then only it can enhance its revenues rapidly.

As far as commission is concerned on sale, people less understood the Vodafone

currency system. They found it complex to understand and were more on selling the

paper

recharge as it‘s easy. So company should consider this issue and should come up with

new alternative to give benefits to rural village retailers.

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CONCLUSION

Page 71 of 79

CHAPTER – 8

CONCLUSIONS

Vodafone has a firm commitment to growth and aims to differentiate itself in India's highly

competitive communications environment by ensuring customer delight through personalized

customer service, Excellent Network and other benefits. Vodafone has a solid reputation in

India, exemplified by a multitude of awards such as: three accolades – Two Gold and One Silver,

at the Asia Marketing Effectiveness (AME) awards ceremony, the GSMA Global Mobile

Awards to its strong value proposition as ―Best mobile enterprise service‖.

The Company is taking every bit of effort to penetrate into the rural area and above analysis

shows how it is trying its level best to achieve this. All the efforts are directed towards this.

Through consistent presence and support for rural ecology company can strengthen its hold

on rural market. Lowering the initial costs of entry is expected to keep company in profit

since reduced profit margins stand to be compensated by a larger consumer base.

If the company will carry on the good work of penetration into the rural

areas and enhance it by considering the suggestions made above in the report than it can pace up

the success of Mera Gaon Mera Desh project. Through its efforts of Promotion and penetration

activities it can surely become the first preference of every Indian may it be in any corner of

India and can become No.1 Telecom Company of India in near future.

This penetration will help in better connectivity and reduce the distances.

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BIBLIOGRAPHY

Page 73 of 79

BIBLIOGRAPHY

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

th edition, 2006, Tata McGraw-Hill

Publication Company Ltd., New Delhi. Ch-6 Research Design(pg.136),

Ch-14 Questionnaire & Instruments (pg.356), Ch-15 Sampling (pg.400)

Kotler Philip and Keller Kevin, Principles of Marketing, 11th edition, 2006, Prentice hall

Inc, Published by Ashoke K. ghosh, Connaught circus, New Delhi.

Ch-15 Advertising, promotion & public relations

ARTICLE

A Research article by CSK consulting Pvt. Ltd., ―Rural Marketing practices for Telecom

Services‖, 2008, Nokia Siemens networks.

WEBSITES

Cellular Operators Association of India, History of Cellular telephony

h tt p :/ / www . c o ai . c o m / h i s t o r y .ph p, 20 July 2010.

Instablogs, 10 Aug. 2010, Varinder Kaur

h tt p :/ / v a r i nd e rk a ur. i n s ta b l o g s . c o m / e n t r y / vod a fon e - z oo z o o - a - s u cce ss fu l -

ma rk eti n g - strategy/, Vodafone Zoo Zoos – ―A Successful Marketing Strategy‖.

Prahalad C. K., ―Bottom of the pyramid‖ article

h tt p :/ / www .12 ma n a g e . c o m / met hod s _pr a h ala d_bo t t o m _of_ t h e _p y r ami d.h tm l

Telecom Regulatory Authority of India,

h tt p :/ / www . t r ai . g o v . i n / a nnu al r e por t / T R A I A R2008_09 E _ A dd.pd f, 25 JULY 2010.

Vodafone History, h tt p : / / e n. w i k i p e d ia .or g / w i k i / V od a fon e _ E ss a r. 2Aug 2010.

h tt p :/ / www . v od a fon e . c o m / s ta r t / me d ia _r e l ati on s / n e ws / g roup_pr e ss _r elea s e s / 2010 / p r elim _

2010.html

Page 74 of 79

ANNEXURE

Page 75 of 79

1. QUESTIONNAIRE:

ANNEXURE

QU E S T I ON N A IRE

Voda fone E ssa r Com pa ny

Dear Respondent,

I am a student of Maharaja Agrasen Institute of Technology, I am doing this Project for

Vodafone, for the purpose of promotion and opening new outlets in Sites called MERA GAON

MERA DESH FOCUS SITES, and so for that purpose I have designed following

questionnaire. Needless to say, that your information will be kept confidential and won‘t be

disclosed to anyone.

Q.1 The type of outlet visited:

a) Kiryana store. e) Tailor / Barber.

b) Mobile / repair shop. f) Photo shop.

c) STD/PCO shop. g) Pan-Bidi shop.

d) Chemist/Clinic. h) Other.

Q.2 Are you currently a Vodafone user?

a) Yes b) No.

Q.3 what is your experience with Vodafone?

a) Very satisfied.

b) Satisfied.

c) No opinion.

d) Unsatisfied.

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Q.4 what is the reason for your experience?

a) Network

b) Customer care service

c) Roaming facilities

d) Vodafone customer plans

e) Any other

Good Bad

--------------------------------------------------------------------------------

Q.5 Do you know about Vodafone‘s Thank you card?

a) Yes b) No

Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?

a) Only coupons

b) Only E-top Value.

c) Both.

d) None.

(ii) If selling then of which companies?

a)Vodafone.

b) Airtel.

c) Idea.

d) Tata.

e) Others.

Yes No

Q.7 if you are not selling any, then do you have any idea about telecom business?

a) Yes b) No

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

a) Yes b) No

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

a) Illiterate.

b) Age factor.

c) Less Commission.

d) Several shops are nearby.

e) Financial issue.

f) Credit issues with villagers.

g) Any other

-----------------------------------------------------------------------------------

Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?

a) Only recharge coupons

b) Only E-top Value.

c) Both.

Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?

a) Yes b) No

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

a) New connections sale is less here.

b) I.D. issues.

c) Financial issues.

d) Any other

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