An analysis of the distribution channel of vodafone

1. An analysis of the distribution channel of Vodafone

2. 01.PRODUCTS AND SERVICES EMERGING BUSINESSES In order to expand, any business needs a good
infrastructural as well as technological support, thus Vodafone highly focuses on providing such
solutions which helps companies in facing the upcoming challenges. The range of communication
offerings brings voice and data together and also the wireless and wireline services which definitely
plays a major role in being more responsive to the customers, suppliers as well as colleagues in the
office. Also, the solutions offered by Vodafone helps in reducing the cost and improve efficiency with its
mobile, fixed and machine-to-machine technology solutions. EMERGING BUSINESSES Wireline
solutions Enterprise mobility Machine to machine solutions Business value added services LARGE
CORPORATES Wireline solutions Enterprise mobility Machine to machine solutions Conferencing
and collaboration Business value added services GOVERNMENT Wireline solutions Enterprise
mobility Machine to machine solutions Conferencing and collaboration Business value added
services

3. Multi protocol label switching is a virtual private network of Vodafone which geographically
connects diverse locations. Leased circuits which is delivered on seamless optic fiber network helps in
keeping the offices connected with each other constantly. The best solution for the connectivity with
the remote area branches can be choose depending upon the connectivity needs and existing
infrastructure. The internet leased lines helps in connecting with the outside world and also provides
secure data connectivity to the organizations. Vodafones Office Wireline Voice Service transforms the
employee extensions to direct lines. Each E1 link carries 30 digital voice channels. This means that an
effective EPABX can be set up to enable simultaneous usage of 30 phone lines, used by multiple
extensions, so that businesses can grow without worrying about unnecessary telephone lines. To
support flexible workforce and maintain control over the costs enterprises needs to embrace mobile
technologies. Voice and data propositions are designed keeping in mind such needs. Vodafone offers
high speed internet which enables the employees in working efficiently even when they are away from
the office. E-mail & connectivity offered by Vodafone keeps the employees connected easily ad cost
effectively at any point of time. National and international roaming plans keeps the employees
connected without much worrying about the costs. Vodafone helps to mobilize key enterprise
applications such as ERP, CRM, and Sales Force Automation, Credit and Collections, Inventory
Management and other industry- specific business applications. Vodafone Secure Device Manager is a
web-based service that helps the businesses fully understand, manage and control the mobile devices.
leased circuitsdomestic mpls WIRLINE SOLUTIONS remote connect internet leased line office wireline
voice (e2-did) ENTERPRISE MOBILITY Mobility plans Mobile internet plans Email and connectivity
Roming solutions Application mobility Secure device manager

4. Vodafone location tracker helps in locating the assets of the organization. Vodafones Smart
Metering Solutions offers an efficient and cost-effective way to monitor any consumable, from domestic
gas usage to electricity for home usage or large scale grid management. Vodafones solutions in the
automotive and telematics industry helps in enhancing vehicle performance, thereby improving
customer satisfaction. Vodafone offers Remote Asset Management solutions, which enable remote
monitoring and maintenance of assets, machines and systems. Vodafones Machine to Machine
Service Platform is a managed connectivity platform which provides control, visibility and manageability
of your assets. Vodafone offers M2M Special SIMs for applications and devices, which operate under
higher temperature and pressure limits, such as embedded vehicle tracking and navigation devices.
Businesses around the world use toll free numbers to generate new leads, serve customers and receive
feedback. Vodafones Global Virtual Number (GVN) enables to run a multiple choice or voting-based
contest through an interactive SMS service. Network Monitoring Alerts from Vodafone help in making
real-time, data- driven decisions, Keep track of IT network with regular SMS updates. Vodafones Caller
Tunes allow to convey your corporate image, message or brand connect with clients and stakeholders.
Missed Call Information from Vodafone helps to know who has called at all times. Vodafone m-pesa
is a fast, secure and convenient Payment and Cash Management solution for business. MACHINE TO
MACHINE SOLUTIONS Vodafone loaction tracker Smart metering Automotive and telematics Remote
asset management Service platform Special SIMs Business value added services Toll free service Global
virtual number Networking monitering alerts Callertunes Miss call information m-pesa

5. LARGE CORPORATES For a business to grow and respond to the threats and opportunities, Vodafones
flexible infrastructure helps to innovate and implement new communication technologies by reducing
the cost and complexity of managing global communications. The mobile, fixed and machine- to-
machine technology helps in creating new products, revenue streams and routes to market. Various
powerful tools and flexible approach makes the people happier, more engaged and more productive at
the same time. Apart from Wireline solutions, Enterprise mobility, Machine to machine solutions and
Business value added services Vodafone provides conferencing and collaboration facilities for the large
corporates Vodafones Audio Conferencing Service provides a reliable, cost-effective solution for
connecting workforce across geographies and time-zones. Vodafones next-generation Managed Video
Conferencing Service provides enterprise an edge by enabling effective collaboration among your
employees, business partners, suppliers, distributors, customers and other teams. GOVERNMENT
Governments priority is to mobilize its governance towards its citizens. Mgovernance solutions offered
by Vodafone enables in realizing the Digital India ambition of creating sustainable societies. Service-
oriented approach and capabilities in the Machine to Machine and Fixed Line solutions along with global
expertise in the field mobility makes Vodafone the partner of choice for digital India. Vodafone provides
powerful and innovative solutions and a flexible approach that will make citizens engaged, informed and
more empowered. Wireline solutions, Enterprise mobility, Machine to machine solutions, Business value
added services and conferencing and collaboration facilities are provided by provided by Vodafone to
the government. Audio conferencing Managed video conferencing Conferencing & collaborating

6. 02. INDUSTRY ECO SYSTEM Telecom industry has been highly affected because of the digital age. The
evading of analog phone systems to the current battle over net neutrality, the telecom industry is
suffering big time. 1. According to the census bureau there are fewer telecom companies as well as
employees in the industry in the year 2014 as compared to 2008. Some of the hallmarks of the telecom
industry are mergers, acquisitions and bankruptcies. The survey conducted by census bureau shows 6 %
fewer companies operating in this sector in 2014 than in 2008 and also the number of people working in
this industry dropped down by 14 %. Source: Census bureau data (2014) Source: Census bureau data
(2014) The possible reasons for the above change could be: 1. There was a downsizing trend among the
companies which remained operating in the industry apart from the reduction in the companies as a
whole. 2. More than average number of employees were working in the companies which either failed
or merged 3. Outsourcing of the jobs was done by many companies. 47000 48000 49000 50000 51000
52000 53000 2008 2014 NUMBER OF COMPANIES NUMBER OF COMPANIES 1 1.05 1.1 1.15 1.2 1.25 1.3
2008 2014 NUMBER OF EMPLOYEES (in millions) NUMBER OF EMPLOYEES (inmillions)

7. 2. In this period of 5-6 years, the total receipts of the industry which includes value of sales,
shipments, receipts, revenue etc. increased almost by 15% Source: Census bureau data (2014) Though
the industry as a whole bought in more money, a very small amount of money was paid to the
workforce for their efforts. The annual cumulative payroll shrank by 2%. Source: Census bureau data
(2014) Due to the increased efficiencies industrys profit margin increased tremendously. So, rather than
spending on the payroll, the profit was used by the companies on the following areas: 1. Industry
research especially by the private players in order to give a tough competition to the competitors. 2.
Development of infrastructure 3G/4G services and fiber-to-home/office networks. 3. Dividends to the
shareholders From the above statistics it can be concluded that may be the number of companies in this
sector might keep on declining but still mobile and the wireless sector can turn out to be an exception to
this and may continue to expand to keep up with the growing consumer demand for mobile data in the
coming years. 440 460 480 500 520 540 560 580 2008 2014 Telecom industry total reciepts Telecom
industry total reciepts 73 73.5 74 74.5 75 75.5 76 2008 2014 Annual payroll Annual payroll

8. 03. Types of market structure Indian Telecommunication industry, with around 464.82 million
telephone associations (Dec 2009), is the third biggest telecom arrange on the planet and the second
biggest as far as number of remote associations. For as long as decade or thereabouts, telecom
exercises have picked up force in India. The Indian Telecommunication Market has been commanded by
few noteworthy players, and henceforth it is an impeccable instance of Oligopoly. Oligopoly alludes to a
business sector structure where an industry is ruled by a little number of huge dealers. Since there are
couple of members in this kind of business sector, each oligopolistic is mindful of the activities of the
others. The choices of one firm impact, and are impacted by, the choices of different firms. Group
company wise % of market share Dec 2014 total sub figures Table Representing the Data for
companies as on Aug 2014 Sl no. Name of company Total sub figures % of market share 1 Airtel
107996533 32.19% 2 Vodafone 80874466 24.11% 3 BSNL 52056417 15.52% 4 Idea 50058471 14.92% 5
Aircel 24415514 7.28% 6 Reliance 13281225 3.96% 7 MTNL 4352781 1.30% Collusion There is a body
working for the privileges of the cell suppliers, The Cellular Operators Association of India (COAI) which
was constituted in 1995 presently, non-benefit, non- administrative society devoted to the progression
of correspondence. COAI's principle targets are to secure the regular & aggregate hobbies of its
individuals.

9. Price Leader There is a merciless rivalry in the Indian Cellular business sector and there is no extent of
having a solitary Price Leader in the business, presently them go after the costs and the client base.
Abnormal Profits There is no confirmation of strange benefits in the Indian Cellular Market, at this very
moment are not contending among themselves for the higher piece of the overall industry and the
benefits. The Indian cell business sector is likewise controlled by the Telecom Regulatory power of India
(TRAI). So there is less risk for the contenders to increase strange benefits. Barriers to Entry Termination
Fees: If someone owns an interconnected cellular network, the incremental marginal costs will be
directly proportional to the amount of traffic leaving the network and he will gain addition revenue for
every inbound call from another network completed on the network. These fees are normally set by the
regulator and are an incredibly important barrier to entry. Churn: The following most vital figure
particularly a soaked business sector is the rate of beat, clearly the bring down the rate the more it is
going to take another contestant to get to balance and consequently the higher the starting working
misfortunes and financing necessities Customer Acquisition Costs: The new contestant needs not just
the funding to get range, assemble the system and account start-up misfortunes, however it needs
enough cash to sufficiently secure clients to get to harmony. The higher the Customer Acquisition Costs
the higher the boundaries to passage. Investor Patience: Particularly for a cited organization, the most
troublesome obstruction to section to overcome is speculator tolerance. On the off chance that
anything turns out badly and payback takes longer than anticipated they could wind up with a semi-
injured auxiliary without the speculation needed to get to "ideal" piece of the overall industry.
Interdependence Albeit there is a relentless rivalry in the Cellular business sector, there are an altered
number of firms in the cell market, so the cell suppliers are prone to perceive their reliance. The
homogeneity and the likeness of expenses make them associated.

10. 04. Levels of channel for Vodafone Indirect channel Tier 1 Indirect channel Urban This chart shows
indirect channel distribution of Vodafone for urban area, Distributor and distributor sales executive are
playing key role in this channel they helps to reach the Vodafone retailer and then to the end user.

11. Indirect channel (Tier 2) rural 2 Tiered model helps in increase the presence and relevance of
service and sales of the company. Associate distributors are appointed for fulfilling the needs of the
customers and they will be designated with certain areas. Associate distributors are also responsible
for providing service.

12. Exclusive retail Vodafone store in Urban areas provide better quality of service and a good
collection of smart phones which can be used with Vodafone service with a personalised package
Vodafone mini stores is more convenient its opened with a collaboration with individuals provide service
in semi urban areas Vodafone mini store- rural area provides more depth service to their customers.
Direct channel Direct sales agents sells their services by feet on street and cold calling By tele-calling
outbound tele-calling setup, with feet on street fulfilment model Analytics based data provided-pre to
post migration are used in telecalling Geographic identification for opening new Vodafone outlets

13. Coordinate mapping of all retailers in particular area. The data which all are collected will stored
in a excel sheet. Upload all the details in a mapping tool . Through that all the visible gaps are
analysed. Then new retailers are appointed in selected gaps Then the stores of Vodafone will cover
all the areas which enable better service to the end users.

14. 05. STRATEGIC PARTNERS/ALLIANCES/INTEGRATION INTRODUCTION Vodafone has been a smart

player right from its days of incorporation, when it comes to strategic partnerships and alliances. If
keenly observed, it could be observed that, beyond the United Kingdom, any country/continent that
Vodafone has ventured into and has been able to become a major player in the market, it first started
off with a strategic partnership with one of the major players in the respective markets (not necessarily
the best player), and slowly went on to rule the markets. At later stages, many a times, Vodafone also
happened to buyout these partners, thus becoming the lone brand, upon tasting success, with little risk.
The best examples to talk of could be countries like India and African countries. In India, after having
bought a 5% stake in Airtel, Vodafone went on to partner with Essar group to come into operation and
later after 2011, bought majority of the stakes from its partner, now making Vodafone India an
individual player with Vodafone Global as its parent company. Similar is the story with Safaricom, the
once major telecom player in African countries, now more famously known as Vodacom. GLOBAL
PARTNERSHIPS/ALLIANCES 1. MTS: As of October, 2008, MTS, biggest cell telephone administrator in
Russia and the CIS, along with Vodafone declared a key non-value organization to furnish clients with
excellent interchanges administrations and to work together mutually on future innovative
improvements. Under the understanding, MTS will have the capacity to draw on Vodafone's aptitude in
building and growing third era (3G) systems and versatile broadband items, working with driving
worldwide gear suppliers and conveying creative CRM practices to improve quality and further enhance
the proficiency of its operations. Likewise, MTS will have a select access to a scope of items,
administrations and gadgets from Vodafone for its businesses of operation in Russia, Ukraine,
Uzbekistan, Turkmenistan and Armenia.

15. The partnership with MTS will give Vodafone important knowledge into the chances of the
imperative information transfers markets of Russia and the CIS, which are among the quickest
developing on the planet. Vodafone's items will be made accessible to MTS' 87 million endorsers,
including more than 60 million clients in Russia, the numbers as of October, 2008. The alliance also
ensures that Vodafone's items and administrations will be promoted in Russia and the CIS under a co-
marked methodology. Vodafone will likewise open an agent office in Moscow to co-work all the more
nearly with MTS on future offerings and client administrations. 2. Conexus: The year 2011 saw the
collaboration of Vodafone and Conexus mobile, thus enabling Vodafone to expand significantly expand
in Asia. This strategic partnership had led to enhancement of roaming experience for a combined global
mobile customer base of over 600 million. This alliance with time has enabled Vodafone to further ties
and partnerships with: FarEasTone (Taiwan) Hutchison Telecom (Hong Kong) NTT DOCOMO (Japan)
SMART (the Philippines) StarHub (Singapore) TrueMove (Thailand) Leaving out India, this
partnership enabled Vodafone to spread across all Asia leaving out India, where it is already well
established as Vodafone India, and China. 3. Bmobile: In 2014, an alliance with Bmobile got Vodafones
operations into Papua New Guinea and the Solomon Islands. With this partnership, Bmobile will profit
by access to Vodafone best practice and items and administrations which will empower it to upgrade its
suggestion to clients in Papua New Guinea and the Solomon Islands. Vodafone's multinational endeavor
clients will profit by the expansion of Papua New Guinea and the Solomon Islands to their current
contracts for worldwide oversaw administrations, while keeping on being overhauled by means of a
solitary purpose of contact. 4. SFR: Vodafone and SFR have been strategic partners for over a decade
and in 2014, went on to extend their partnership for 5 more years to come. SFR being the second
16. largest telecom player in France, gives all scope to Vodafone to root into one of the largest markets
in Europe. STRATEGIC PARTNERSHIPS/ALLIANCES IN INDIA In India, after successfully establishing itself
as a telecom giant, becoming the second best player in terms of market share after Airtrel, Vodafones
partnerships have been more centric towards improvising the services they provide. 1. ICICI Bank: In
2012, Vodafone went on to have a strategic alliance with ICICI Bank in India, to launch Mpesa, a unique
mobile money transfer and payment service. The service enabled all Vodafone subscribers in India to
following facilities: Cash deposit and withdrawal from designated outlets Money transfer to any
mobile phone in India Range of mobile payment services including purchase of mobile recharge,
recharge of DTH services and utility bill payments Money transfer to any bank account in India
Payments at select shops. 2. Star India: Vodafone partnered with television giant Star India in 2014 to
launch Vodafone Sports, first-of-its-kind service that brings action from across sports to feature phones
and smartphones. For Vodafone, the activity is a stage towards understanding its system to drive
information utilization and infiltration on portable. As per the organization, it has about 100 million
information clients out of which right around 45 million utilization information on the portable
consistently. Through Vodafone Sports, the telecom administrator means to drive information utilization
among these clients and rope in different clients through pertinent and excellent games content. 3.
PAYBACK: In 2013, an alliance with Indias largest multi brand loyalty program made Vodafone the first
in telecom industry to be doing so. With this alliance, Vodafone enabled the option of redeeming points
on PAYBACK, for every rupee they spend on availing Vodafone services, thus making them a promise of
additional monetary returns upon what they spend over Vodafone.

17. 4. Baesystems: In 2014, Vodafone tied up with Baesystems, a cyber and security systems player. This
alliance which was signed for a five year time period, was to be able to provide mobile security solutions
to its subscribers in India and abroad. 07. MARKET COVERAGE Vodafone is licensed to operate in
designated geographical operating areas. The service area includes: Four metro areas 18 circles
categorized as A, B and C The metros account for 40% of the subscriber population, with Category A, B
and C accounting for 33%, 23% and 4% respectively. This means that the potential with category C
circles in the lower end of the scale. GLOBAL PRESENCE OF VODAFONE Vodafone Operating Countries
Vodafone's partners and affiliates

18. DIRECT CHANNELS INDIRECT CHANNELS TIER 1 (URBAN) TIER II (RURAL) DIRECTSALESAGENT
FEET ON STREET COLD CALLING TELECALLING OUTBOUND TELE CALLING ANALYTICS BASED DATA
PROVIDED PRE TO POST MIGRATION SUPERCALLCENTRE CALL TRANSFER FROM INBOUND CALL CENTRE
IMMEDIATE TRANSFER TO A DSA TELE-CALLING SETUP VODAFONE DISTRIBUTOR RETAILER MAIN TOWN
Direct distribution to village clusters within 20 km Cluster of villages services by associate distributor
Cluster of villages services by associate distributor

19. 08. COMMISSION, INCENTIVE AND PRICING POLICIES Pay for performance continues to be an
important principle for Vodafone when setting remuneration policy. A high proportion of total reward is
awarded through short-term and long- term performance related remuneration. At target around 70%
of the package is delivered in the form of variable pay, which rises to around 85% if maximum payout is
achieved. It ensures that incentive plans only deliver significant rewards if and when they are justified by
performance. For the Remuneration Committee this means two things: 1. Ensuring the targets they set
for incentive plans are suitably challenging 2. The Committee review all incentive plans before any
payments are made to executives and has full discretion to adjust payments downwards if it believes
circumstances warrant it. Pay Link to Performance Vodafone offers performance-related pay schemes
that focus not only on individual performance, but also on team and company measures. All of these
measures are transparent and monitored on a regular basis so that they know exactly how the
performance and the company's performance influence the level of reward people receive. REWARDS
AND RECOGNITION Vodafone offers competitive and fair rates of pay and benefits to attract and retain
the best people. Their global short- and long-term incentive plans reward employees based on their
performance, potential and contribution to the success of the business. An ownership mentality is also a
cornerstone of their reward programme and senior executives are expected to build up and maintain a
significant holding in Vodafone shares. In addition, employees are entitled to a great range of benefits :
Free participation to a health / life insurance scheme for employees and their family. Mobile phone
with preferential rates. Discounts on Vodafone products and services, special rates on a wide range of
retail shops & restaurants. (Employee Shopping Club) Discounts on various other insurance plans. (i.e.
car, housing, health) Food allowance & vouchers. Free use of companys own gym facilities.

20. PRICING POLICIES Vodafones products and services are competitively priced and easily accessible to
as many people as possible. In order to beat the competition, the company has ensured that it provides
high quality services such as providing high speed data and good network range as compared to what
the competition is offering Mini as well as jumbo prepaid and postpaid plans are available. As of late,
Vodafone has multiplied its 2G and 3G web rates. This however will be taken after soon by its opponents
and in addition it has get to be difficult to contain information rates off late. Another important pricing
strategy is that the company offers reward points for specified sum of money spent on purchasing
airtime vouchers or data bundles. With a pan India presence, Vodafone is surely one of the leaders in
the telecom sector. 11. MERCHANDISING BY VODAFONE Vodafone could possibly be called the most
applauded telecom operator when it comes to its ad campaigns. Be it Cheeka (the pug) which they
adopted from Hutch after taking over, or the Zoozoos which they promoted in the country from the
second season of IPL, the characters are well remembered till date, and the love people have for them is
never diminishing. This has helped Vodafone push merchandise imprinted with these characters to a
good level into the market, giving them an edge over the other players in terms of increasing the
presence of brand to greater extent through merchandising. These characters have also enabled visual
merchandising to a great extent at the point of sale. Every Vodafone store sells varied products like
coffee mugs, t-shirts, key chains, etc. with the images of these characters imprinted on them. With
people buying these products, out of love for the characters or to show the association ship with the
brand benefit the company in a way which could be termed as promotion on the move. Vodafones
speech mark, the logo is also quite prominent and famous with the public. And it could be termed as the
most recognised logo when compared to those of other telecom players in India. With all the significant
recognition it has got, Vodafone enjoys a good level of visual presence, be it through its stores, its
associated dealer shops (called mini-stores), or through any other commonly adopted measures to
promote visual merchandising at the point of sale, like banners and posters at recharge stores,
hoardings at major areas, etc. They also have an e-merchandise store where all the Vodafone
merchandise are made available. The online store sells everything from bags, watches, office equipment
etc. to even golf clubs and other sports material! With respect to merchandising, there arent any special
requirements that Vodafone as a company has as it is already doing everything and to a good level.
Vodafone has tabbed upon

21. every possible aspect of visual merchandising, and with the online store making products available at
a marketplace most sought after in the present day, and the place where sales is fast growing, with
increasing transactions happening online, Vodafone is at a very good position in this regard.

22. 12 CHANNEL PROMOTIONS OF VODAFONE ATL AND BTL: ATL is a kind of promoting through media,
for example, TV, silver screen, radio, print, and Out-of-home to advance brands or pass on a particular
offer. This kind of correspondence is routine in its inclination and is viewed as indifferent to clients. It
contrasts from BTL promoting, which utilizes capricious brand-building and limited time techniques, for
example, post office based mail, deals advancements, flyers, purpose of-offer, telemarketing and
printed media (for instance pamphlets) and normally includes no movement representation. It is
substantially more viable than when the objective gathering is expansive and hard to characterize
Vodafone is very popular with its ATL promotion campaigns, be it the huge red hoardings, or even the
ZooZoo campaign that took telecom advertising to a whole new level. Vodafone has always succeeded
in striking an amazing chord with its audiences with each and every campaign it has done. Vodafone
does ATL advertising very effectively, be it sponsoring a foot ball team, running an excellent ad
campaign or even hosting on hot air balloons at the international Garba Festival

23. Outdoor hoardings have always been a key ATL promotion Vodafone has done. The canopies are
ready to hit the annual October fest in Bangalore. BTL SALES PROMOTION: is moderately prompt. It is
effective and savvy for focusing on a constrained and particular gathering. It utilizes less routine routines
than the typical ATL channels of publicizing, ordinarily concentrating on direct method for
correspondence, most normally standard mail and email, regularly utilizing profoundly focused on
arrangements of names to expand reaction rates. Pamphlets, Vodafone postpaid sales promotions,
personalized emails to certain clients etc.

24. 13 EVALUATION OF CHANNEL EFFECTIVENESS: Channel effectiveness is a combination of finding the

best route to the customer which is also the most cost efficient. Effectiveness: Providing the obliged
administration most cost adequately. a. Delivery : A short term, goal oriented measure of on time
delivery of services to Vodafone customers b. Stimulation of interest: What are the interests made by
the channel part to build client base or expand the use of the item. Equity: Extent to which advertising
channel serves issue ridden markets and market segments The reach the Vodafone has is vast when
compared to other telecom providers globally. The reach the Vodafone has is vast when compared to
other telecom providers globally. Efficiency: Output / Input Performance measures Vodafone follows
Effectiveness Equity Efficiency

25. Productivity: The efficiency with which the output is generated from the resources and inputs.
Operational efficiency: a. Labor efficiency: Productive call % b. Efficiency of salesman: Number of outlets
secured A telecom provider like Vodafone runs its services in almost every nook and corner of a territory
and this is one of the reason consumers select a particular provider so that they stay connected. .
Indirect channelDirect channel Channel segmentation Corporate Profitability East EastWest West A B C
A B C A B C A B C Territory segmentation Product segmentation