VODAFONE

Vodafone Group is a global telecommunications company headquartered in London, United Kingdom It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers (behind China Mobile), with around 332 million proportionate subscribers as of 30 September 2010. It operates networks in over 30 countries and has partn networks in over 40 additional countries. It owns 45% of er Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones". Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately 92 billion as of November 2010, making it the third largest company on the London Stock Exchange. It has a secondary listing on NASDAQ.

Vodafone have come a long way since making the fi st ever mobile call on 1 January 1985. Today, more than 359 million customers around the world choose vodafone to look after their communications needs. In 25 years, a small mobile operator in Newbury has grown into a global business and the seventh most valuable brand in the world. Vodafone now operate in more than 30 countries and partner with networks in over 40 more.

In an increasingly connected world, its no longer just about being able to talk and text. Its network allows people to share images and videos as soon as theyre captured; to share thoughts and feelings as soon as theyre created. And because they now do more than just mobile in many markets, more customers look to Vodafone for great value in their fixed line. Vodafone understands that businesses need a communications partner with solutions that scale and adapt as their business needs change. They may need a few smart phones for voice and email on the move. Or they may require a fully integrated solution that enables sharing of documents, video conferencing and access to corporate applications from any location. Whatever the si e and whatever the need ,it is constantly looking for new, innovative ways to help business customers grasp every opportunity in a simple and straightforward way. True to the origins, Vodafone has always committed to deliver useful and inspiring innovation. In 1991 vodafone enabled the worlds first international mobile roaming call. In 2002, with Vodafone Live! It has set a new standard for mobile communications with internet access on the move. Fuelled by the desire for sustainable innovation, it recently introduced Vodafone Money Transfer which allows customers in emerging markets to send and receive money safely and easily using their mobile phone. Vodafone have also caused a stir in the industry with the Vodafone 150 the most affordable ultra low cost handset yet. Vodafone are driven to empower people. To find that spark that empowers you is why they are in business. Thats what vodafone mean when it says power to you.

SWOT ANALYSIS STRENGTHS

Diversified geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and to some extent the US Network infrastructure Leading presence in emerging markets. The brand name it has in the Indian market.

The kind of subscriber it has in the Indian market. It has the 2nd highest market share in India. It has a 2nd highest subscriber base in India. Its strong advertising strategies and impact on people. Its Indias 3rd biggest mobile carrier.

WEAKNESSES
Negative return on assets (ROA) underperform key competitors like AT&T, BT Group, Deutsche Telecom US business not nearly as strong as European/rest of the world operations 80% of its business is generate in Europe. Low R&D. High customer churn (33.33%). Rural India unable to relate to the brand. Poor network coverage.

OPPORTUNITIES
Focus on cost reductions improving returns Research and development of new mobile technologies Emerging markets and expansion abroad Innovation Product and services expansion Growing data business and 3G auctioning VAS as a means to increase ARPU (big boss, Zoo Z00) Growing Enterprise solution market (10.2% in 2009 anticipated). Large capital can be raised by listing Vodafone on Indian Stock Exchange(IPO). Tower sharing business with Indus Towers.

THREATS
Highly competitive market. Still lags behind major competitors in the US. Extremely high penetration rates in key European markets.

MICRO-ENVIRONMENT
COMPANY: This combines all the company internal groups like financial, research, management, development etc. Vodafone as a company has a very highly trained research team of technicians, financial advisors and manager which keep Vodafone strong from inside. SUPPLIERS: Huawei Technologies Co., Ltd. ('Huawei'), one of the world's leading networking and telecommunications equipment suppliers had signed a Global Framework Agreement with Vodafone, the world's largest mobile operator, for mobile network infrastructure. This agreement marks the 1st time a telecommunications equipment supplier from China has received Approved Supplier status from Vodafone Global Supply Chain. The agreement establishes the terms and conditions for the supply of Huawei's solutions to any one of the Vodafone operating companies worldwide. CUSTOMERS: In total, over 400,000 Vodafone Mobile Connect customers, including over 170,000 3G enabled customers. Strongest quarter of net additions since December 2000 with over 5.4 million organic net additions, bringing the total proportionate customer base to over 151.8 million.Highest quarter ever for new Vodafone live! customers of 3.9 million, bringing global Vodafone live! controlled customer base to 28.3 million, including 12.9 million in Japan.Vodafone UK added 641,000 net customers in the quarter, taking the total base to 15.2 million customers, an increase of over 9% since last year. COMPETITORS: Competitors of Vodafone are, Airtel Aircel BSNL Idea Uninor

EMPLOYEES: Their employees are key to their success so they have established strategic priorities to recognise and develop talent, and create an inclusive workforce. They expect employees to act with integrity in everything they do and live up to the standards of behaviour set out in their Business Principles. MACRO-ENVIRONMENT PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental, and Legal analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. POLITICAL FACTORS: Political factors play an important role in the development of the network operating industry. Political factors could include the provisions of certain laws, and pressures from certain pressure groups. The licensing of certain frequencies plays an important role in the development of the mobile operating network. A Company could only begin to use a frequency once they have been granted to them by the local authority. There are other Governmental and legal issues affecting basically how the company operates. For instance it can be regulation, infrastructure, and banning of phone use in certain circumstances. ECONOMICAL FACTORS: The economic environment is dependent and influenced by the countrys economic policies. These include the rates of economic growth, inflation; consumption patterns, income distribution and many other economic trends determine the nature of the products and services provided by Vodafone. High-income levels will result in an increase of usage of the Vodafone mobile services. There are other factors that influence the purchasing power of customers and the company, like cost of capital and cost of 3G licenses. SOCIAL FACTORS: Social factors look at the structure of the population and the impact of which it has on the demand for the product and the supply of labour. There are certain demographic and cultural aspects of the environment which influence customer needs and the market si e. Social trends and other mobile etiquettes are factors that any mobile customer would follow. This is

because among this crowd going with the mobile trend is more of a fashion statement. There are people for whom camera phones, high memory space, etc come under the latest trends. TECHNOLOGICAL FACTORS: The success of technological development plays the most important role in the success of telecommunication companies. In the network operating industry, technological development is based on the increase in efficiency and quality in the transfer of voice calls, and data between mobile phones. Vodafone's competitors are now offering the same GSM handsets as Vodafone. This shows that technology is feasible in the market of network operators. Also, Vodafones competitors like Airtel, Idea, etc are planning to come out with the 3G technology which further increase the competition to a great extent. ENVIRONMENTAL FACTORS: Environmental factors also play an important role in the development of network operating industry. The government is forcing Vodafone and other telecom operators to become more environmentally conscious. For instance, while putting up towers, they have to keep various factors in mind. The action of the companies is being monitored making sure they are environmentally friendly. Any negative externalities given out will have to be paid by a full social cost by Vodafone. LEGAL FACTORS: The market in which Vodafone is in has only one Legal force that is to provide safety in the use of its services through the handsets they sell and provide. This means that developmen t cost will need to be done to produce handsets that attract low radiation.

MARKET SHARE:
As per Cellular Operators Association of India(COAIs) March data, Vodafone added 36 lakh users and emerged as the number 1 player in mobile subscriber additions.

MARKET

G STRATEGIES OF VODAFONE

MARKETING MIX -7Ps FOR VODAFONE 1. PRODUCTS AND SERVICES

A product with many different features provides customers with opportunities tochat, 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. VOICE SERVICES  Pre Paid services  Post Paid services  World calling cards  Vodafone PCO  Vodafone Handyphone

Various Prepaid services offered are: 1. Talktime offers

It includes: y y Full Talktime Recharge(For those who look for value for money) Bonus Cards with talktime benefits(for those who change the talk plans frequently) y Chhota recharge(For low end user, mainly rural)

2. Validity Offers

Validity offers are: y Life long prepaid

3. Bonus Cards

They are: y y y y SMS pack(For those who love texting) Mobile internet pack(Connect to internet anywhere) Conversations @ 1p/second(For small talks) Call anyone anywhere @ 50p/minute(For people who call a lot to other circles) y y y Talk all night @ 10p/minute to Vodafone(For lovers) SMS @ 10p(For those who text often) Night Minutes(For those who talk freely at night)

4. Tariff offers

Tariff offers are: y Vodafone Campus pack(For Students)

y y

Vodafone Gappagoshti(For elder people who like to chat) Vodafone friends circle(For young people who love to be in touch with friends)

Various Postpaid services are: 1. Talkplans for everyone

2. Bill in your Inbox

3. My Vodafone

Vodafone Business Services Some services are specially designed for high end business customers which help them keep track of their businesses in a much better and easier way.

Some Business Services are: 1. Vodafone Mail(For businessmen who travel a lot)

2. Vodafone Mobile Connect 3G(Anytime Easy high-speed internet connectivity)

3. Essential Downloads(Basic Application Softwares for utilising all the services)

Vodafone world Calling Cards

World Calling Card from Vodafone is a Prepaid long distance calling card that can be used with Vodafone Prepaid and Postpaid mobile phones to make ISD & STD calls.

Vodafone PCO

A Vodafone PCO can be Installed in house or shop with fixed cellular terminals to earn money. Its easy to install, maintain and use and provides uninterrupted service. Vodafone Handy Phones

The landline that s loaded with all the features of a cell phone - including low call rates Key features:
y y y

Calls to any 3 Vodafone numbers @ 20p / min Calls to all local mobile phones @ 40p / min Free local & STD calls every month

VALUE ADDED SERVICES  Tunes and downloads  Entertainment  Devotional  Sports  News and Updates  Call Management Services  Astrology  Finance  Travel  Mail, Messaging  Dial in Services  Bill Info

2.PRICE
Vodafone wants to make its services accessible to as many people as possible: from the young, high powered business executives, to the more mature users.
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It offers various pricing structures to suit different customer groups.  Monthly Price Plans  Pay As You Do Plans  Call Charges While Going Abroad  Pay Monthly Call Charges  Business Call Charges Monthly Price Plans Are Available As well as prepay options. Phone users can top up their phone on line.

A number of schemes are being introduced from time to time to match the customer needs, like unlimited free messages card, 1paisa per second call rates.

y y

The top ups are available from Rs. 10. Its pricing strategies varies accordingly by offering features like Filmy recharges and SMS value packs targeted at the youth segment to features like

bonus cards and longer validity schemes at a similar pricing but targeted at the lower income segment. Magic hand boxes: Magic Hand boxes are products by which Vodafone can attract customers from a variety of income groups and other demographiccharacteristics. In order to make it available to a very wide section of the audience Magic hand boxes are made available from prices as low as Rs.999 to Rs.9999. Vodafone PCO: Vodafone PCO can be bought at Rs3750, and a Starter Kit worth Rs750 can be got with it. Vodafone Handyphone: Vodafone handyphones are available at the rate of Rs.1999

3. PLACE

DIRECT DISTRIBUTION 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. The internet is a key channel to promote and sell Vodafon s products and services and to e provide customers with an easy, user friendly and accessible way to manage their Vodafone services and access support.

INDIRECT DISTRIBUTION The extent of indirect distribution varies between markets but may include using hird party t service providers, independent dealers, distributors and retailers. Intensive Distribution) (

4.PROMOTIONS

Unlike the other telecom majors which rely heavily on Film stars and cricketers to promote their brands, Vodafone has focused on advertising campaigns like the Pug and Zoo Zoos to have connect with the people. 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 veryeffectively. This is known as above the line promotion. BELOW THE LINE: Stores have special offers and point of sale posters to attract those inside the stores to buy.

ADVERTISING ON TV: Each ad was used for promoting a particular Value Added Service of Vodafone e.g. Easy recharge, callertunes, internet, roaming, bill payment, SMS packs, music, unwanted calls blocker, etc. The ads were a hit among the Indian people, especially the youth. This trend can be observed from the huge fan following on social networking sites, Facebook, Orkut and Twitter.

VODAFONE BILLBOARDS

MAGAZINE ADS

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D S D D FSD V SG G

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SOCIAL NETWORKING SITES Vodafone s zoozoo ads to promote the brand was a hit among the Indian people, especially the youth. This trend can be observed from the huge fan following on social networking sites, Facebook, Orkut and Twitter.

5.PEOPLE
Vodafone Essar India has an employee database of around 10,115 in the financial year 2010 which is considered as a dedicated and passionate workforce and one of the best customer service support teams. Fun is incorporated in the work life of employees of Vodafone. Empowerment and career development go simultaneously with all opportunities in Vodafone.

It provides a dynamic environment and challenging opportunities to itsemployees. Vodafone Essar Limited has received many awards over the years such as the Best Mobile Service in India, Most Effective and Most Creative Advertiser of the Year, and Most Respected Telecom Company. Moreover it aims to reach the maximum number of people.

6. PROCESSES

Vodafone Essar India provides a wide variety of services in mobile communication and other value added services by adopting an easy-to-use customer friendly approach. All information about its basic and other valued services and various promotional offers can be availed through a unique customer care number 111 which can be dialed from anywhere in Ind ia. 7. PHYSICAL EVIDENCE Physical Evidence is the element which allows the consumer again to make judgments on the organization. The most important physical evidence of for the Vodafone is its existing customer base The . Vodafone Essar subscriber bases in the cities of India are: City Kolkata Mumbai Delhi Chennai No. of customers 1,632,875 2989970 3002442 981996

Existence of the customer care centers across the country, Vodafone mini stores that are small in size but big in service, Vodafone stores; Vodafone outlets are all a part of the physical evidence that facilitate the customer judge the service.

SEGMENTING, TARGETING AND POSITIONING: SEGMENTATION: The following segmentation variables are used by Vodafone in order to segment the market : GEOGRAPHIC : Here, the segmentation is done on the basis of regions in which they operate like rural and semi-urban markets and metros. Rural and semi-urban markets are fast emerging as profitable market segment. So Vodafone is trying to enhance its operations effectively further in these segment. DEMOGRAPHIC: Income : Vodafone further segments its market according to various income levels and have various plans for every strata of society. Age: Vodafone have specific plans for youth. Nature of the Customer: Depending on the fact that whether the customer is institutional or sole, the services and plans provided by Vodafone varies and thus, it forms an important bases forsegmentation. PSYCHOGRAPHIC: Lifestyle and Personality: Vodafone segments its users on the type of service they use based on their lifestylesuch as different plans for students, professionals etc .

BEHAVIOURAL: Benefits Sought: Vodafone segments its customers on the basis of the benefits sought by them such as such as: Local call ,STD call or ISD call makers ; Users of value added services Usage Rate : Vodafone also classify its users as one with heavy usage rate, medium usagerate and light usage rate and have different targeting schemes for each of them. Type of the service: The Type of the service provided by Vodafone to its custome also plays a crucial role in rs deciding the segmentation strategy implemented by Vodafone. TARGETING: Vodafone targets the market through many different tariffs, services and propositions for every segment according to specific customer preferences and needs. The various examples for this include: y y y y World calling cards for the family of those professionals who use to work abroad. Rs.10 recharge(Chotta Recharge) for small users. Cheap SMS facility for youths. Facilities for circle users etc.

POSITIONING: Vodafone's brand positioning is: 'Vodafone helps people enjoy richer communication, anywhere, anytime. Always reliable, always easy, always great value ...passionately delivered'. Before Vodafone took over Hutch, the positioning strategy followed by Hutch w as Wherever you go our network follows, the position was beautifully created by showing a small boy as a customer and a Pug following the boy as network.

Post Hutch Positioning

In 2007, when Vodafone took over hutch, the company again used the PUG to tell the customers that they really respect the customers and feel Happy to Help.

In 2009, instead of the Pug, the new characters named Zoo Zoo were created.

In the latest Positioning strategy, Vodafone launched the Power to you campaign.

VODAFONE CRM: Vodafone s CRM Vision and Mission

Vi i : To enrich the customer's lives through the unique power of mobile communication : Passion Passion for Customers Passion for People Passion for Results Passion for the World

Mi i

Recogni ing that different solutions address different levels of organi ational complexity, Vodafone uses Oracle Siebel CRM and Microsoft Dynamics CRM to offer the right solution to meet the needs of every client, driving measurable improvements in business processes, enabling closer relationships with customers and supporting the achievement of new levels of profitability Tool used by the org Oracle: Named CRM - Oracle CRM is integrated with Vodafones billing system and switch [platform where the services are delivered to the customer being realtime]. CRM thus handles queries from the customer, complaints, requests which are been generated by the customers. EPOS: Electronic point of sales: Gateway about point of sales software. Manage sales portfolio. BSCS: Billing System and Customer Support: the billing system of Vodafone which is been rendered is been integrated with EPOS so that the field agent does have a clear view of the product portfolio and billing system of the client at the same time. Microsoft Dynamics CRM: Vodafone needed to develop a reliable, easy-to-use sales channel to streamline orders sent to its sales staff from a large network of independent agents. Being a mission-critical part of the business, it needed to be implemented as quickly as possible. The company deployed Microsoft Dynamics CRM to process the daily flow of orders, check status, and gauge service levels and key performance indicators (KPIs). The system now processes more than 5,000 orders a month in a secure environment.

PRODUCT LIFE CYCLE:

1.INTRODUCTION: During Introduction Stage Vodafone, y y y Offered a basic product/ service. Build selective distribution. Build product awareness among early adopters and dealers.

2.GROWTH: During growth stage y y y y Rapid increase in sales. New competition enters as opportunity presents itself. Introduce new product features. Expand distribution(Bulid Intensive distribution).

3.MATURITY: During Maturiy stage, y y Increase in number of value added services. Build still more intensive distribution channel.

REFERENCES:
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http://www.vodafone.com/content/index.html http://www.vodafone.co.uk/corporate/products-and-services/index.htm http://www.neytri.com/tag/vodafone/ http://www.scribd.com/doc/35872725/Segmentation-of-Vodafone http://www.scribd.com/doc/49648491/vodafone-services-project http://www.slideshare.net/pranita.jain24/vodafone-marketing-mix http://www.scribd.com/doc/29060379/Final-Report-on-Vodafone-Essar-Limited