Comparative study on Idea vs.

Vodafone
Project report

Vs.

Submitted By: Ankit gupta Varun varshney Pranjal aeron Deepak khandodiya

CONTENT
1. 2. 3. Acknowledgement Executive Summary Methodology (IDEA) a) b) c) d) 4. Product profile Services Marketing Strategy Advertising Strategy

Methodology (Vodafone) a) b) c) d) Product profile Services Marketing Strategy Advertising Strategy

5. 6. 7. 8.

Data Analysis Conclusion Annexure Bibliography

ACKNOWLEDGEMENT

The fact that we have been able to prepare this project report is due to help and support of many sources. We could not have achieved anything without those sources. First of all we would like to express our enormous gratitude to our project management teacher Mrs. Ramandeep Singh for her continuous encouragement and guidance throughout the project. Her way of thinking and converting ideas into something concrete helped us a lot. She was always there to encourage us, whenever we were down and looking for some support. She helped us to think in right direction and gave us his precious time in spite of having very busy schedule. We thank him for her timely guidance and the pains she took to make us complete this project report.

We are also thankful to our parents who were a constant source of inspiration to us.

Thank you

Executive Summary
A. Sector & Players The sector that we chose for the project is the telecommunication sector. We chose this particular sector because the India telecommunication sector has seen a tremendous growth rate over the past few years. The investors(both Indian as well as foreign) have gained confidence over the years in the Indian telecommunication market especially after the process of globalization. Another reason for choosing this sector was that it covers all the 3 aspects i.e. Distribution network, Service network and Sales functioning. The players (companies) chosen for study are Vodafone cellular ltd. and IDEA cellular ltd. Both the companies are leaders in the market and both are renowned for providing quality services in Indian subcontinent. We have done an in depth study of the distribution networks the service networks and the sales functions. B. Information sources Primary sources The primary source of information has been the dealers of both the companies. They have provided us all data of the product, services, and sales, after sales network in their capacity as channel partners of the concerned companies.

Secondary sources Various sources such as company URLs, Internet, magazines and relevant journals have been used. All information retrieved from such sources has been appropriately classified in the bibliography.

.C Data collection tools The tool we have used for data collection in this report is: a. questionnaires Samples of this can be found in the annexure D. Limitations Some information was not provided to us by the company citing it as confidential. Like how much profit margin they keep. Time constraint Most interviews with the company sources have been quite short, limiting the information we could gather due to the demands on their time.

Product Profile
One of India's leading GSM mobile service operators, IDEA Cellular is headquartered in Mumbai and has over 21 million subscribers. IDEA has licenses to operate in 13 circles comprising states of Mumbai, Delhi, UP, Uttaranchal, Haryana, Rajasthan, Madhya Pradesh, Chattisgarh, Gujarat, Maharashtra (excluding Mumbai), Goa, Andhra Pradesh, Bihar and Kerala. IDEA's footprint covers approximately 70 per cent of the national market for mobile telephony. Idea is targeting roll out in Mumbai and Bihar circles shortly for which spectrum is already allotted. IDEA has also received Letter of Intent for remaining 9 circles. IDEA offers GPRS on all its operating networks for both postpaid and prepaid services, and was the first company to demonstrate and commercially launch the next generation EDGE technology for its Delhi Circle. IDEA has also been a pioneer in technology usage by employing satellite connectivity to reach inaccessible rural areas in Madhya Pradesh. A leader in value-added services, innovation is central to IDEA's VAS products. IDEA was the first to offer 'Global SMS' in over 540 networks across all technology platforms, and the first to offer a voice portal with 'SAY IDEA'. IDEA has also recently launched services like Press * to copy a Dialer tone, IDEA TV first GSM Multi channel mobile television experience, IDEATIMES The first MMS magazine, Voice chat, Instant Messenger and more. IDEA has also launched its PCO service to reach a customer base. IDEAs tariff plans have been customer friendly, catering to unique needs of different consumer segments. 'WOMENS CARD' is meant to fulfill special needs of women on the move, and YOUTH CARD specifically caters to the emerging youth segment. IDEA is also the only Indian GSM operator to win the GSM Association Award in the Best Mobile Technology category for the 'Best Billing and Customer Care Solution', both in 2006 and 2007.

Services
IDEA Showcases EDGE Based Services in India Right on the back of its high-profile takeover of Escotel, IDEA Cellular Ltd. today became the first cellular operator in the country to pilot launch EDGE based services. With enhanced Data Download Rates of over 160 kbps offered by EDGE technology, subscribers of IDEA will now be able to enjoy movie previews, multimedia messages with video attachments, web-infotainment, high speed video downloads, java game downloads and other internet based multi-media experiences on their EDGE enabled mobile phones. Targeted primarily to the savvy consumer who is on the move, Idea Cellular's EDGE based services are expected to enable its subscribers to feel and enrich their experience in data services.

Some words from Mr. vikram mehmi CEO Idea Cellular India Ltd. "IDEA has always endeavored to provide next generation technology, ahead of its time to its subscribers. While other players are still thinking about it, we have taken another step towards bringing the future to our customers and make their GSM experience richer and more value-added. We are looking to deliver the world's best to our customers and we chose Nokia, a leader in GSM / GPRS / EDGE mobile communications technologies, to launch our EDGE services. EDGE will help IDEA remain ahead of competition and consolidate its position to emerge as one of the top players in the cellular industry.

EDGE based services provided by idea includes:

:: Internet Surfing: speeds of internet surfing with EDGE enable handset will be better than speeds available from existing fixed line dial-up modem. Typical speeds achieved 80 to 160 kbps

:: Mobile Web Browsing: high-speed wireless internet surfing using an EDGE enabled handset. :: Video streaming i.e. viewing a live video content in your handset and downloading Bollywood/Hollywood trailers, fashion shows etc. :: Multimedia Messaging (MMS) & Downloads: sending messages with pictures, video clips, sound and text. Downloading Bollywood, fashion show Following the first ever, live demonstration of EDGE in the country, Mr. Ashish Chowdhary, Country Head, Nokia Networks (India & South Asia) said "With Nokia's EDGE technology, Idea will be able to offer its customers high-speed data services and rich multi-media content which is at least three times faster than existing GSM / GPRS capabilities. Nokia is the only end-to-end solutions provider delivering such a comprehensive range of value-added EDGE technologies.

IDEA : The Big fish

Idea will likely change the course of Indian telecom industry; the fifth largest telecom operator has announced snapping up B K Modi's 40.8 percent stake in Spice Communications for an amount of Rs 2,700 crores. The deal values Spice Communications at around Rs 6,800 crores.

Value Added Services

THE IDEA Value Added Services, a vibrant bouquet of "little conveniences" "small pleasures" "bits of happiness" "dollops of infotainment" and all those "itsy bitsy" wants that together make up THE BIG SMILING PICTURE. SMS based services to Voice based ones, the Idea range cuts across all modes of communication to ensure the BEST VALUE for your money. So be it downloading the latest ring tones or sharing the freshest of blonde jokes, be it checking the status of your cousin's train arrival time or arranging a pick up for your boss's delayed flight, Idea hands you the power to do it all. Idea's Value Added Services are as innovative and exciting as your desires.

MARKETING STRATEGY
To occupy the Indian market Idea Cellular
plans to focus on its customer service and customer experience aspects. The company has applied for licenses to operate in the telecom circles of Tamil Nadu, Karnataka and Punjab and is awaiting clearances. Mobile penetration in the telecom circle of above said states is about 80 per cent the highest in India and would merit a different marketing strategy compared with other telecom circles. So, the company plans to leverage its `top quality' network infrastructure thereby assuring better customer experience. Churn level (movement of customers from one mobile service provider to another) is low at about 5 per cent nationally. Customers are moving mainly because of network related problems such as instability, call drops and congestion. The best way for Idea Cellular to enter the new market would be by promoting its stable and efficient networks. In the coming years, the company plans to invest about 50 per cent of its funds in upgrading infrastructure in its existing circles of operation besides setting up fully integrated systems in new circles. In the last 9 months, it has invested about Rs 2,000 crore on infrastructure. The company would target the value added services market in every State because it has a huge potential to grow. Right now company is testing on Television on Mobile technology. However the recent TRAI decision to cut roaming charges would affect the company. There will be annual loss of about Rs 100 crore. But it won't affect the company much because the number of roamers across India is very less. Idea Cellular Ltd will offer its customers full talk values. Therefore, company has truly has embraced pre-paid with aggressive offerings, competitive rates and effective marketing strategies.

ADVERTISING STRATEGY
IDEA Cellular will embark on an aggressive advertising strategy to create awareness for its brand. We plan to spend approximately 7 per cent of our net revenues on advertising. This figure is about Rs 63 crore. The company has recently launched a TV commercial for Idea and is currently working on a couple of more ad films. Ideas brand ambassador Abhishek Bacchan is creating an emotional awareness across the country. Idea through its advertising is planning trying to touch every market segment across the nation. Meanwhile, not divulging the company's future marketing initiatives Idea cellular ltd. would revolve around the company's positioning of `liberation through an idea'. Idea Cellular will also be rolling out its cellular services in Delhi as the fourth operator in a month's time. The service would be of much better quality than that which is being offered in the Delhi market currently. In addition, the company will offer several value-added services such as vernacular SMS (in 9 languages), games on the mobile, a large covered area for pre-paid roaming, and so on.

A different approach to target and growth can be easily seen by in recent commercials by idea. Idea along with Abhishek bachhan is able to create the magic across the country. Soon new commercials will be on screen which on one hand would attract the new customers through different tariff plans and on other side would touch the hearts of Indian people.

PRODUCT PROFILE
Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about 75 billion (June 2008). Vodafone currently has equity interests in 25 countries and Partner Networks (networks in which it has no equity stake) in a further 42 countries. The name Vodafone comes from Voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones." At 31 March 2008 Vodafone had more than 260 million customers in 25 markets across 5 continents. The eight markets where it has more than ten million proportionate customers are the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States. In the U.S., these customers come via its minority stake in Verizon Wireless, and in the other seven markets Vodafone has majority-controlled subsidiaries. On 30 May 2006, the company announced a loss before tax of 14.9 billion for 2005, the biggest loss in British corporate history The company was pushed into loss by impairment charges of 23.5 billion, which related to the acquisition of Mannesmann several years earlier, and losses of 4.6 billion in relation to its discontinued business in Japan. At an operating level it remained highly profitable, with an operating profit on continuing operations of 9.4 billion before impairment costs. Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 44.1 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'.

SERVICES
Vodafone worlds largest telecommunications service provider is planning something new in India. Vodafone is moving into the era of total communications. Mobile is always at the heart of what we do, but now we are moving into integrated mobile and PC communication services. Services and devices that are easy to use, that connect you to your friends, family, work, information and entertainment, wherever you are and whatever youre doing at the best available price.

Vodafone Passport
Vodafone Passport is price structure for calls made on Vodafone and partner networks. You take your home tariff abroad and know exactly what the charges will be when you use roaming services. Facts:

Vodafone Passport is available in 13 countries More than 12.7 million Vodafone customers have signed up

On Vodafone Passport, you can make calls using your domestic tariff, in some cases including free minute bundles, and receive calls at no charge for a one-off connection fee per call.

Vodafone email
There is increasing demand for handheld solutions that allow real-time access to email, calendar, contact and other applications. Vodafone Business Email, Windows Mobile Email and Blackberry from Vodafone provide business customers, ranging from small start-up companies to multinational corporate, with wireless access to their enterprise and internet based email. Facts:

1 million Vodafone email customers Vodafone Business Email and Blackberry from Vodafone are available in 36 countries

Vodafone email gives you full messaging functionality. You can use it to send, store and manage emails, just like you would on your PC. You can even view and edit attachments in popular document formats such as Microsoft Word, PowerPoint and Excel

Vodafone live!
Vodafone live is an on-handset communications and multimedia portal, which gives you access to services like games, ringtones, news, sports and information. Facts:

Vodafone live! is available in 28 countries 15.9 million active Vodafone live! devices

Vodafone live! is available over our 3G network, enabling far higher quality content and communication services, like news broadcasts, sports highlights, music videos and movie trailers. Content partners include Time Warner, News Corp, NBC, Universal and Sony.

Vodafone Mobile Connect

Vodafone Mobile Connect data cards provide the best and fastest data connections available on vodafone network, enabling simple and secure access to email, corporate applications, company intranets and the internet for customers on the move. Facts:

1.5 million Registered Vodafone Mobile Connect data cards. Vodafone Mobile Connect 3G/GPRS data card is available in 33 countries Vodafone Mobile Connect with 3G broadband (HSDPA) data card is available in 26 countries

Vodafone have entered into exclusive partnerships with Acer, Dell, HP and Lenovo. These companies offer a range of 3G broadband connectivity notebooks with built-in Vodafone SIM supporting HSDPA technology. Vodafone have also launched the Mobile Connect USB Modem, a compact and easy to use plug-and-play device.

Vodafone Office
Vodafone Office is the umbrella name for a series of products and services designed to meet all our business customers communications needs. With Vodafone Wireless Office companies can reduce their number of fixed desk phones, transferring voice minutes from the fixed to the mobile network. The solution includes a closed user group tariff, allowing employees to call each other for a flat monthly fee. Facts:

More than 2 million Vodafone Wireless office customers Vodafone Wireless Office is available in 14 countries

Vodafone Wireless Office is based on Mobile Virtual Private Network (MVPN) technology. An MVPN is a platform that allows you to connect all your company mobiles and selected landlines together. You have a single phone to use in and out of the office.

Marketing strategy
Vodafone marketing aim to retain market leadership Vodafone's strategy is product-led; the company is continually developing new products and services which utilize 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 is trying to feed this back into its product strategy. In India, 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. As everyday there are new customers, So the challenge is to provide added value services and competitive charges to existing customers who are becoming more sophisticated and demanding. 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 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.

VODAFONE BRINGS IPHONE TO INDIA

Its time for unlocked iPhone sellers in India to close shop as cell operator Vodafone is officially bringing the much awaited iPhone to the country in September this year. The price of iPhone in India will be around 28k. Steve Jobs hinted last month that iPhone launch in India would happen sometime in 2008 and that Apple may not restrict the iPhone distribution deal to just one operator like they do in the US where AT&T is the exclusive distributor. According to BS, Apple could make iPhone accessible though other telecom carriers in India like Reliance or Airtel. Earlier reports suggested that iPhone in India could debut at Reliance Retail - that obviously didnt happen but the Vodafone - Apple deal suddenly makes lot of sense.

ADVERTISING STRATEGY
Hutch to Vodafone
To announce the name change, the company has earmarked an advertising budget of Rs 320 crore. When Maxtouch became Orange, the company painted Indian towns orange with its outdoor media campaigns. Later, the company switched over to pink colour for its Hutch brand. Now, its red all the way, Along with the name change, Vodafone has also revamped its communication strategy with a new logo and new pug named Spikey, which has replaced Chika. On the agencys creative strategy, Vodafone integrated advertising campaign will include print ads, television commercials, outdoor and radio advertising. The tagline for the ad campaign will remain the same Wherever you go, our network will follow, The brand has already changed its name twice from Maxtouch to Orange and Hutch. As long as the quality of its service remains good, the name change will not have any impact,

The Vodafone pug

Vodafone rolled out four Commercials featuring Hutchs animated boy and girl, introducing the new brands logo to consumers. Four other ads with the pug did the rounds of telly screens. The pug was shown in a red basket, popping up from a red cart, drying himself on a red mat, and hiding in a red blanket. Each of these made use of the Hutch is now Vodafone tagline.

The print ads, in all major languages in several leading dailies, were kept unbelievably simple: a still shot of the pug inside a red kennel. The same creative was used in outdoor hoardings as well, in all the 16 circles in which Vodafone now operates. If we look at other competitors like airtel or reliance then the difference in marketing can easily be seen. On one hand Vodafone uses its registered trademark the pug spikey and other animated commercials for advertising whereas other brands mostly prefer cricket and bollywood stars to advertise for their services. The approach to touch the Indian customers is quite different whereas still hutch is not able to create an emotional awareness among rural Indians.

CONCLUSION
From the data analyzed it can be concluded that in terms of customer satisfaction Vodafone is marginally ahead of idea however in terms of changing the connection there are lesser no of people who changed the Vodafone connection than that of idea one. But when we take a look at Marketing and Advertising strategy of both the companies idea and Vodafone both are doing well in their own different ways. In terms of marketing strategy idea is doing very well in rural areas nowadays. However, Vodafone is doing quite well in urban areas. The above report contains all the statistics which shows the results of Vodafone & idea cellular. In terms of overall growth and future growth prospective both the companies are doing well. However both the players with their unique strategies are growing everyday. In near future due to TRAI regulations and increase in the frequency distribution & spatial area the competitions I going to be tough for both the players.

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Graph showing Customer Satisfaction & 'Connection' changing Customers

60

50

40

30

Customer Satisfaction
Changing connection

20

10

0 Vodafone Idea

Billing Features

Idea Vodafone
0 10 20 30 40 50 60 70

Customer Service Network Coverage

QUESTIONNARE
Name or initials: Gender/Age: Education: Nationality: Q 1: Which mobile service you use? Idea Vodafone Q 2: Are you satisfied with your service provider? Yes No Q 3: Did you ever change your service provider? Yes No Q 4: How much are you satisfied with the following? Please tick one box across the row for each factor?
Very Satisfied Fairly Satisfied Not very Satisfied Not at all Satisfied Not Applicable

Network coverage Customer service Price of additional Billing features Price you pay on Same network Price you pay on Other network

BIBLIOGRAPHY
The entire project is the result of our sincere effort. We have taken the help of library, referring to different books and how can we forget the net. 1. a) Books Referred :Marketing Management by Philip Kolter

b) Sales Management by Richard R.Still, Edward W.Cundiff, Norman A.P. Govoni 2. a) b) c) d) Websites :www. Google.com www. Vodafone.Com www.Ideacellular.Com en.wikipedia.org