A

SUMMER TRAINING REPORT

On
MARKETING ACTIVITIES & STRATERGY
OF VODAFONE

For The partial fulfillment of The Degree

Master of Business Administration
Batch (2013-2015)

SUBMITTED BY :
GOURAV TRIVEDI
MBA SEM III (2014-2015)
ROLL NO. 13MMJXX612
UNDER THE GUIDANCE OF
MS. VISHAKHA SINGH
(Faculty)
SUMBITTED TO :

Faculty of Management
MAHARISHI ARVIND SCHOOL OF MANAGEMENT STUDIES,
JAIPUR
Affiliated to Rajasthan Technical University, Kota

DECLARATION
I Gourav Trivedi Student of MBA IInd year hereby declares that for the
purpose of Training Project Report I have conducted study on
Marketing Activities & Strategy of Vodafone for the partial
fulfillment of MBA degree. It is my original work.

Place:
Signature
Date:

PREFACE
A Professional Course like Business Management is to gain theoretical knowledge
and practical exposure knowledge to its application. A Survey report his offer to
student a change to work in the environment of the corporate world. Therefore we
have an opportunity to gain experience on practical aspects and theoretical
knowledge.

Survey Report is a necessary part of the fulfillment of the MBA Degree course. It
helps the student to gain knowledge about various aspects of interpreting practical
problem through application of concepts and techniques of management.

While unfolding this project report graducally & logically in simple language
emphasis made by conceptual understanding reasoning. A sincere effort has been
made to bring about the fact and it is hoped that this report meets the jury expectation
and the requirement.

ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude towards all

those who have, in various ways, helped me in the completion of this
project.

I also express my sincere thanks to my project guide, Ms.

Vishakha Singh, for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge him for
extending her valuable guidance, support for literature, critical review of
project and the report and the above all, the moral support he provided
me with throughout all state of report preparation.

Place- Jaipur

Gourav Trivedi
.

CONTENTS

Sr.no.

Topic

Pg. No.

INTRODUCTION OF INDUSTRY

6-10

COMPANY PROFILE

11-23

CONCEPTUAL FRAM WORK

24-27

SWOT ANALYSIS

28-31

RESEARCH METHODOLOGY

32-41

DATA ANALYSIS

42-54

FINDING

55-57

SUGGESTION

58-59

ANNEXURE

60-62

10

BIBLIOGRAPHY

63-64

Introduction:
The telecom network in India is the fifth largest network in the world meeting up with
global standards. Presently, the Indian telecom industry is currently slated to an
estimated contribution of nearly 1% to Indias GDP.
The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber
base, which has grown by 40% in 2005, is expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million
broadband connections and 18 million internet connections by 2007. The wireless
subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY20042005. In the last 3 years, two out of every three new telephone subscribers were
wireless subscribers. Consequently, wireless now accounts for 54.6% of the total
telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber
growth is expected to bypass 2.5 million new subscribers per month by 2007. The
wireless technologies currently in use are Global System for Mobile Communications
(GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and
5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,
covering 2000 towns across the country.

1.1) Evolution of the Industry - Important Milestones:

Year

Description

1851

First operational land lines were laid by the govt. near Calcutta(seat of
British Power)

1881

Telephone Service introduced in India

1883

Merger with the postal system

1923

Formation of Indian Radio Telegraph Company (IRT)

7

1932

Merger of ETC and IRT into the Indian Radio and Communication
Company(IRCC)

1947

Nationalization of all foreign telecommunication companies to form

the Posts, Telephone and Telegraph(PTT), a monopoly run by the
governments Ministry of Communication

1985

Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)

1986

Conversion of DOT into two wholly government-owned companies:

the Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited
(MTNL) for service in metropolitan areas.

1997

Telecom Regulatory Authority of India created

1999

Cellular Services are launched in India. New National Telecom Policy

is adopted.

2000

DoT becomes a corporation, BSNL

(Source: The Indian Telecom Industry by consulting club, IIM Calcutta)

1.2) Major Players:

There are three types of players in telecom services:
State owned companies (BSNL and MTNL)
Private Indian owned companies (Reliance Infocomm, Tata Teleservices)
Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel,
Idea Cellular, BPL Mobile, Spice Communications)
India's mobile telecom sector is one of the fastest growing sectors. Unlike in the
1990s when the mobile phone was an elitist product, mobile operators now tap a mass
market with mass marketing techniques. "Unified licensing" rules allow basic and
mobile operators into each others territory, and have ushered in perhaps the final
phase of industry consolidation.
8

It seems that only companies with deep pockets can effectively compete as primary
operators mobile markets. Economies of scale, scope, and end-to-end presence in
long-distance as well as local telecom, are desirable.
There are, besides, new challenges. Operators have to find new growth drivers for the
wire line business. There are problems of getting broadband to take off, of technology
choice, of when to introduce new technologies, and of developing a viable business
model in an era of convergence.

1.3) Growth of mobile technology:

India has the fastest growing mobile markets in the world. The mobile services were
commercially launched in August 1995 in India. In the initial 5-6 years the average
monthly subscribers additions were around 0.05 to 0.1 million only and the total
mobile subscribers base in December 2002 stood at 10.5 millions. However, after the
number of proactive initiatives taken by regulator and licensor, the monthly subscriber
additions increased to around 2 million per month in the year 2003-04 and 2004-05.
Although mobile telephones followed the New Telecom Policy 1994, growth was
tardy in the early years because of the high price of hand sets as well as the high tariff
structure of mobile telephones. The New Telecom Policy in 1999, the industry
heralded several pro consumer initiatives. Mobile subscriber additions started picking
up. The number of mobile phones added throughout the country in 2003 was 16
million, followed by 22 millions in 2004, 32 million in 2005 and 65 million in 2006.
The only countries with more mobile phones than India with 156.31 million mobile
phones are China 408 million and USA 170 million.
India has opted for the use of both the GSM (global system for mobile
communications) and CDMA (code-division multiple access) technologies in the
mobile sector.

The mobile tariffs in India have also become lowest in the world. A new mobile
connection can be activated with a monthly commitment of US$ 5 only. In 2005 alone
32 million handsets were sold in India. The data reveals the real potential for growth
of the Indian mobile market.

1.4) Cellular Service Providers:

As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125
million are GSM users and 41 million CDMA users. BSNL, Bharti Airtel, Hutch,
Idea, Aircel, Spice and MTNL are the main GSM providers in India. Reliance
Communications and Tata Indicom are the main CDMA providers in India.
Bharti Airtel
Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra
Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu,
UP and West Bengal. Airtel is the No.1 cellular service provider in India using GSM
technology. Airtel has 23% market share in India with a total subscriber base of 38
million.
Reliance Communications
Reliance has both CDMA and GSM networks and total subscriber base of 29 million
or 17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh,
Kolkata, North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA
networks in other states and cities.
Bharat Sanchar Nigam Limited (BSNL)

10

BSNL is a state owned telecom company which has GSM presence in almost every
cities and towns. BSNL has 27 million subscribers with a market share of 16%.

Vodafone
Vodafone is another emerging GSM provider in India with coverage in Kerala,
Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab
with a total subscriber base of 27 million.
Tata Indicom
Tata Indicom is a main CDMA provider in India with 16 million subscribers all over
India. Tata Indicom has presence in almost every state and cities in India.

11

12

2.1) Introduction:
Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It
is the largest mobile telecommunications network company in the world by turnover
13

and has a market value of about 75 billion (August 2008). Vodafone currently has
operations in 25 countries and partner networks 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."
As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5
continents. On this measure, it is the second largest mobile telecom group in the world
behind China Mobile.
In the United States, Vodafone owns 45% of Verizon Wireless.

2.2) Mission:
Vodafone is primarily a user of technology rather than a developer of it, and this fact
is reflected in the emphasis of our work program on enabling new applications of
mobile communications, using new technology for new services, research for
improving operational efficiency and quality of our networks, and providing
technology vision and leadership that can contribute directly to business decisions.

2.3) Vision:
Our Vision is to be the worlds mobile communication leader enriching customers
lives, helping individuals, businesses and Communities be more connected in a
mobile world.

2.4) History:
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two
UK cellular telephone network licenses. The network, known as Racal Vodafone was
80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15%
and 5% respectively. Vodafone was launched on 1 January 1985. Racal Strategic
14

Radio was renamed Racal Telecommunications Group Limited in 1985. On 29

December 1986 Racal Electronics bought out the minority shareholders of Vodafone
for GB110 million.
In September 1988 the company was again renamed Racal Telecom and on 26
October 1988 Racal Electronics floated 20% of the company. The flotation valued
Racal Telecom at GB1.7 billion On 16 September 1991 Racal Telecom was
demerged from Racal Electronics as Vodafone Group.
In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for
30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased
Peoples Phone for 77 million, a 181 store chain whose customers were
overwhelmingly using Vodafone's network. In a similar move the company acquired
the 80% of Astec Communications that it did not own, a service provider with 21
stores.
In 1997 Vodafone introduced its Speech mark logo, as it is a quotation mark in a
circle; the O's in the Vodafone logotype are opening and closing quotation marks,
suggesting conversation.
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc.
and changed its name to Vodafone Airtouch plc. Trading of the new company
commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake
in E-Plus Mobilfunk. The acquisition gave Vodafone a 35% share of Mannesmann,
owner of the largest German mobile network.

Vodafones original logo used until the introduction of the speech mark logo in
1998.

15

On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those
of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April
2000.
In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was
rejected. Vodafone's interest in Mannesmann had been increased by the latter's
purchase of Orange, the UK mobile operator. Chris Gent would later say
Mannesmann's move into the UK broke a "gentleman's agreement" not to compete in
each other's home territory. The hostile takeover provoked strong protest in Germany
and a "titanic struggle" which saw Mannesmann resists Vodafone's efforts. However,
on 3 February 2000 the Mannesmann board agreed to an increased offer of 112bn,
then the largest corporate merger ever. The EU approved the merger in April 2000.
The conglomerate was subsequently broken up and all manufacturing related
operations sold off.
On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In
April 2001 the first 3G voice call was made on Vodafone United Kingdom's 3G
network. In 2001 the Company took over Eircell, then part of eircom in Ireland, and
rebranded it as Vodafone Ireland. It then went on to acquire Japan's third-largest
mobile operator J-Phone, which had introduced camera phones first in Japan.
On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by
signing TDC Mobil of Denmark. The new concept involved the introduction of
Vodafone international services to the local market, without the need of investment by
Vodafone. The concept would be used to extend the Vodafone brand and services into
markets where it does not have stakes in local operators. Vodafone services would be
marketed under the dual-brand scheme, where the Vodafone brand is added at the end
of the local brand. (i.e., TDC Mobil-Vodafone etc.)
In February 2002 Finland was added into the mobile community, as Radiolinja is
signed as a Partner Network. Radiolinja later changed its named to Elisa. Later that
year the Company rebranded Japan's J-sky mobile internet service as Vodafone live!
and on 3 December 2002 the Vodafone brand was introduced in the Estonian market

16

with signing of a Partner Network Agreement with Radiolinja (Eesti). Radiolinja

(Eesti) later changed its name to Elisa.
On 7 January 2003 the Company signed a group-wide Partner agreement with
mobilkom Austria. As a result, Austria, Croatia, and Slovenia were added to the
community. In April 2003 Og Vodafone was introduced in the Icelandic market and in
May 2003 Vodafone Italy (Omnitel Pronto-Italia) was rebranded Vodafone Italy. On
21 July 2003 Lithuania was added to the community, with the signing of a Partner
Network agreement with Bit.
In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg's
LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to
rename its mobile phone operations to Cytamobile-Vodafone. In April 2004 the
Company purchased Singlepoint airtime provider from John Caudwell (Caudwell
Group) and approx 1.5million customers onto its base for 405million, adding sites in
Stoke on Trent (England) to existing sites in Newbury (HQ), Birmingham, Warrington
and Banbury. In November 2004 Vodafone introduced 3G services into Europe.
In June 2005 the Company increased its participation in Romania's Connex to 99%
and also bought the Czech mobile operator Oskar. On 1 July 2005 Oskar of the Czech
Republic was rebranded as Oskar-Vodafone. Later that year on 17 October 2005
Vodafone Portugal launched a revised logo, using new text designed by Dalton Maag,
and a 3D version of the Speech mark logo, but still retaining a red background and
white writing (or vice versa). Also, various operating companies started to drop the
use of the SIM card pattern in the company logo. (The rebranding of Oskar-Vodafone
and Connex-Vodafone also does not use the SIM card pattern.) A custom typeface by
Dalton Maag (based on their font family InterFace) formed part of the new identity.
On 28 October 2005 Connex in Romania was rebranded as Connex-Vodafone and on
31 October 2005 the Company reached an agreement to sell Vodafone Sweden to
Telenor for approximately 1 billion. After the sale, Vodafone Sweden became a
Partner Network. In December 2005 Vodafone won an auction to buy Turkey's
second-largest mobile phone company, Telsim, for $4.5 billion. In December 2005

17

Vodafone Spain became the second member of the group to adopt the revised logo: it
was phased in over the following six months in other countries.
In 2006 the Company rebranded its Stoke-on-Trent site as Stoke Premier Centre, a
centre of expertise for the company dealing with Customer Care for its higher value
customers, technical support, sales and credit control. All cancellations and upgrades
started to be dealt with by this call centre. On 5 January 2006 Vodafone announced
the completion of the sale of Vodafone Sweden to Telenor. On February 2006 the
Company closed its Birmingham Call Centre. In 1 February 2006 Oskar Vodafone
became
Vodafone Czech Republic, adopting the revised logo and on 22 February 2006 the
Company announced that it was extending its footprint to Bulgaria with the signing of
Partner Network Agreement with Mobiltel, which is part of mobilkom Austria group.
On 12 March 2006 former chief, Sir Christopher Gent, who was appointed the
honorary post Chairman for Life in 2003, quits following rumours of boardroom rifts.
In April 2006 the Company announced that it has signed an extension to its Partner
Network Agreement with BITE Group, enabling its Latvian subsidiary "BITE
Latvija" to become the latest member of Vodafone's global partner community. Also
in April 2006 Vodafone Sweden changed its name to Telenor Sverige AB and ConnexVodafone became Vodafone Romania, also adopting the new logo. On 30 May 2006
Vodafone announced the biggest loss in British corporate history (14.9 billion) and
plans to cut 400 jobs; it reported one-off costs of 23.5 billion due to the revaluation
of its Mannesmann subsidiary. On 24 July 2006 the respected head of Vodafone
Europe, Bill Morrow, quit unexpectedly and on 25 August 2006 the Company
announced the sale of its 25% stake in Belgium's Proximus for 2 billion. After the
deal, Proximus was still part of the community as a Partner Network. On 5 October
2006 Vodafone announced the first single brand partnership with Og Vodafone which
would operate under the name Vodafone Iceland and on 19 December 2006 the
Company announced the sale of its 25% stake in Switzerland's Swisscom for
CHF4.25 billion (1.8 billion). After the deal, Swisscom would still be part of the
community as a Partner Network. Finally in December 2006 the Company completed
the acquisition of Aspective, an enterprise applications systems integrator in the UK,
18

signaling Vodafone's intent to grow a significant presence and revenues in the ICT
marketplace.
Early in January 2007 Telsim in Turkey adopted Vodafone dual branding as Telsim
Vodafone and on 1 April 2007 Telsim Vodafone Turkey dropped its original brand and
became Vodafone Turkey. On 1 May 2007 Vodafone added Jersey and Guernsey to
the community, as Airtel was signed as Partner Network in both crown dependencies.
In June 2007 the Vodafone live! Mobile Internet portal in the UK was relaunched.
Front page was now charged for and previously "bundled" data allowance was
removed from existing contract terms. All users were given access to the "full" web
rather than a Walled Garden and Vodafone became the first mobile network to focus
an entire media campaign on its newly launched mobile Internet portal in the UK. On
1 August 2007 Vodafone Portugal launched Vodafone Messenger, a service with
Windows Live Messenger and Yahoo! Messenger.
On 17 April 2008 Vodafone extended its footprint to Serbia as VIP mobile was added
to the community as a Partner Network and on 20 May 2008 the Company added VIP
Operator as a Partner Network thereby extending the global footprint to Macedonia.
In May 2008 Kall of the Faroe Islands rebranded as Vodafone Faroe Islands.
On 30 October 2008, the company announced a strategic, non-equity partnership with
MTS group of Russia. The agreement adds Russia, Armenia, Turkmenistan, Ukraine,
and Uzbekistan to the group footprint.

2.5) VODAFONE ESSAR

19

2.5.1) Introduction:
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers
21 telecom circles in India. Despite the official name being Vodafone Essar, its
20

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 22 of the country's 23 licence areas.

2.5.2) Ownership:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%.
On February 11, 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 May 8, 2007.

21

2.6) Previous brands:

In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide,
consolidating its services under a single identity. The Company entered into
22

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.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand
transition exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this highprofile transition being unveiled today. Along with the transition, cheap cell phones
have been launched in the Indian market under the Vodafone brand. There are plans to
launch co-branded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to
leverage Vodafone Group's global scale in bringing millions of low-cost handsets
from across-the-world into India."
While there is no revealing the prices of the low-cost Vodafone handsets, the industry
is abuzz that prices might start at Rs 666, undercutting Reliance Communications'
much-hyped 'Rang Barse' with cheap handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized
handset offers -- rather handset-bundled schemes for customers.
Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the
country, is expected to provide several Vodafone handsets in India. Earlier this year,
Vodafone penned a global low-cost handset procurement deal with ZTE

23

Customer Satisfaction
24

3.1) Introduction:
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a
Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element
of business strategy.
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.

3.2) Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while
targeting non-customers; measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services to the
marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number of
both psychological and physical variables which correlate with satisfaction behaviors
such as return and recommend rate. The level of satisfaction can also vary depending
on other options the customer may have and other products against which the
customer can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in the
effort of quantitative measurement, although a large quantity of research in this area
has recently been developed. Work done by Berry, Brodeur between 1990 and 1998
defined ten 'Quality Values' which influence satisfaction behavior, further expanded
by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of
satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access,
25

Environment,

Inter-departmental

Teamwork,

Front

line

Service

Behaviors,

Commitment to the Customer and Innovation. These factors are emphasized for
continuous improvement and organizational change measurement and are most often
utilized to develop the architecture for satisfaction measurement as an integrated
model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by
using the gap between the customer's expectation of performance and their perceived
experience of performance. This provides the measurer with a satisfaction "gap"
which is objective and quantitative in nature. Work done by Cronin and Taylor
propose the "confirmation/disconfirmation" theory of combining the "gap" described
by Parasuraman, Zeithaml and Berry as two different measures (perception and
expectation of performance) into a single measurement of performance according to
expectation. According to Garbrand, customer satisfaction equals perception of
performance divided by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement
and in term of their perception and expectation of performance of the organization
being measured.

3.3) Vodafone had highest customer satisfaction index in 2007

Lisbon, 25 August 2008 - Vodafone obtained the highest customer satisfaction index
in the telecommunications sector in 2007, according to annual results published by
Anacom. Vodafone achieved a satisfaction index of 74.4 (on a scale of 0 to 100), the
highest score of all the companies in the Portuguese telecommunications market and
considerably above the sector average of 67.6.
In the report published by Anacom, Vodafone is ranked in first place in all the
indicators included in the survey: Satisfaction with the operator, Image that customers
have of the operator, Customer Expectations, Perceived Quality of the operator's
network and services, Perceived Value for Money, Complaints received and their
handling, and Loyalty of customers to their operator.
26

In the Perceived Quality indicator, Vodafone obtained a score of 8.3 points for overall
quality, way ahead of the scores of the other two operators (both obtained 7.7 points).
Vodafone comes top in all the indicators for perceived quality of network and
services: technical quality of the network (8.2 points); customer service and advice
capability (7.6 points); quality (8.2 points), diversity (8.0 points) and reliability (7.9
points) of products and services offered; clarity and transparency of information
supplied (7.8 points); network coverage (7.9 points) and clarity and transparency of
price plans (7.9 points).
Similarly, in the indicators measuring the Image of mobile operators, Vodafone comes
top in the five categories analyzed (on a scale of 1 to 10): 'It is a reliable company in
terms of what it says and what it does' (8.1 points); 'It is stable and well established in
the market' (8.8 points); 'It contributes positively to society' (7.5 points); 'It cares
about its customers' (7.6 points); and 'It is innovative and forward looking' (8.5
points).
The methodology used in the ECSI Portugal 2007 survey (ECSI European Customer
Satisfaction Index) is similar to that used by the European Commission to survey
customer satisfaction in 25 Member States, enabling comparisons to be made between
the results obtained in each country.
The ECSI Portugal 2007 Communications survey was carried out by the Higher
Institute of Statistics and Information Management at Lisbon's New University in
partnership with the Portuguese Quality Institute and the Portuguese Quality
Association, with sponsorship from Anacom.

27

28

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieving that objective. The technique is credited to Albert Humphrey, who led a
research project at Stanford University in the 1960s and 1970s using data from
Fortune 500 companies.

Strengths
Leadership Position
Global Brand Strength

Internal

High Geographical reach

Weaknesses
Centralized Control Low
Flexibility
High Consumer churn rates

Opportunities

Threats

Expanding marketing boundaries Increased Competition

External

Growth through 3G

Market saturation in Europe

Strategic Alliances

Emergencies of Low cost

Brands

SWOT analysis of Vodafone

29

4.1) Strengths:
The main strength of Vodafone within the telecommunications market lies in
its brand image and recognition. Vodafone, having established a global presence and
having invested highly in marketing a differentiated image by promoting a Vodafone
life style, currently enjoys a differentiating advantage that, if exploited properly, can
offer a lead in competition. The presence of Vodafone in numerous countries within
Europe as well as in all part of the world enhances this image. It allows customers to
travel and enjoy easily the services of their home country operator. In the few
countries that Vodafone is not physically present (e.g. Norway) it has well established
strategic alliances which allow for a better service of mobile clients.

4.2) Weaknesses:
The expansion of Vodafone has been completed at the expense of direct
control of its operations. The company grew through a process of acquisitions of
national telecommunications companies (e.g. the acquisition of the third biggest
Czech mobile phone operator, Cesky mobile) rather than organic growth. This
increased its subscribers base quickly, offering direct market knowledge and
immediate additions of customer bases at the expense of direct effective control of the
subsidiaries. At the same time though, it implicitly imposed a centralized operational
structure for the group, nominating the UK headquarters as the leading business unit
running a much centralised marketing and handset procurement at group level. This
has resulted in the neglect of local markets and local differences, allowing market
share to be gained by smaller local competitors. Due to the highly saturated Western
European market this has resulted in an increase in the price elasticity of demand,
with consumers becoming continuously price oriented. This has resulted in high
customer churn rates reaching the level of 32.8% in the UK compared to O2s 24%.

4.3) Opportunities:

30

The telecommunications market, even though highly saturated in some regions

offers great potential due to the ageing population and the sophistication of the
consumers. It offers great opportunities through a careful market segmentation and
exploitation of particular profitable segments. Different strategies should be pursued
simple phones and simplified pricing plans to the ageing population and more
updated, sophisticated solutions for younger generations. The expanding Boundaries
of the market could provide further opportunities by allowing Vodafone to enter more
aggressively into fixedline service and to better enjoy the benefits of its high
investment in 3G technology. Moreover the company has undertaken its first steps in
establishing strategic alliances to develop customized solutions for endusers:
Vodafone recently announced two new partnerships, one with supermarket group
ASDA to launch an ASDA branded mobile service in the UK, and another with
electrical retailer DSG International to provide mobile solutions to small businesses.
This could further be enhanced to avoid being a lateentrant in this new method of
distribution which offers access to a wide potential customer base.

4.4) Threats:
The European part of Vodafones market is characterized by existing high
levels of competition. Major brands such as O2 and TMobile are exploiting the price
sensitivity of customers and in this way they are building a stronger image and
presence in the market. Indirect competition is also increasing further, through the
presence of Skype and other related (not only voice) Internetbased services. This
combined with the upcoming European legislative measures is expected to limit
further the tariffs for the network providers imposing further need for price cuts which
could harm the bottom line profitability of the company.

31

32

5.1) Introduction:
Marketing research means the systematic gathering, recording, analyzing of
data about problems relating to the marketing of goods and services
Marketing research has proved an essential tool to make all the need of
marketing management. Marketing research therefore is the scientific process of
gathering and analyzing of marketing information to meet the needs of marketing
management. But gathering of observation is must be systematic. The systematic
conduct of research requires:
Orderliness, in which the measurements are accurate.
Impartiality in analysis and interpretation.

All of research can be categorized into basic and applied.

1. BASIC RESEARCH: - Basic Research is that intended to expand the body of
knowledge for the use of others.
2. APPLIED RESEARCH: - Applied Research is one, which is carried out to
find the solution for a particular problem or for guiding a specific decision. It
is usually private in nature.
My research on Vodafone is carried on for guiding specific decisions and its
results are useful only to Vodafone for taking particular decision regarding product
quality, staff and security. Hence the nature of my research study is APPLIED
RESEARCH .

5.2) Objective of Study:

33

Following are the main objective to study about the customer satisfaction on
Vodafone.
To study telecommunication industry.
To study the company profile of Vodafone.
To study customer satisfaction of Vodafone.
To study various Marketing activities provided by Vodafone.
To study the various services provided by Vodafone.
To know the expectation of Vodafone Customers.

5.3) Benefits of study:

There are many benefits related to take this study. Some of the benefits of
taking this study are as follows:
By analyzing this information, the company would be able to better design
schemes & services & target right prospects needs & wants.
More people will get aware about Vodafone that will increase profit level of
Vodafone.
This study helps to identify the behavior of consumer when there are no offers
& schemes from Vodafone.

5.4) Process of Marketing Research:

The marketing research is done in systematic process. The Researcher has
pursued the below process of marketing for my study at Vodafone:
34

Problem Identification

Research Design

Data Collection

Data Analysis & Interpretation

Research Report & Presentation

5.4.1) Problem Identification:

The first and the most important step of marketing research is properly
defining the problem. In order to identify the research problem two categories of
problem should be carefully noticed.

Here the researchers problems are:-

35

 A number of customers are not satisfied with services, new schemes and
offers.
A number of customers are not satisfied with the network coverage.
A number of customers are not satisfied with the current call rates of
Vodafone.
A number of customers are not satisfied with the Free SMS schemes.
A number of customers are not satisfied with the service of customer care of
Vodafone.

36

5.4.2) RESEARCH DESIGN:

Research design indicates the methods and procedure of conducting research
study. Research design can be done in following three types:1 Exploratory Research:Exploratory research focuses on the discovery of new ideas and is generally
based on secondary data.
2 Descriptive Research:Descriptive research is undertaken when the researcher want to know the
characteristics of certain groups.
3 Causal or Experimental Researches:An experimental research is undertaken to identify causes and effect
relationship between two variables.
The Research Design is: Descriptive Research Design

37

5.4.3) Data Collection and Sampling:

A) Sources of Data Collection:Basically there are two types of data i.e. secondary and primary:
I)

Primary Data Collection:-

Primary data collection contains the following four types of methods: 1 Observation Method:
It contains Causal observation, Systematic observation, direct observation and
contrived observation.
2 Survey Method:
It contains Personal Interview, Telephone Interview and Mail Interview.
3 Experimental Method.
4 Panel Method.

II)

Secondary Data Collection: It can be collected from internal as well as external sources

1 Internal Source:
Various internal sources like employee, books, sales activity, stock
availability, product cost, etc.

2 External Sources:
38

Libraries, trade publications, literatures, etc are some important sources of

external data.
The Researcher has used primary data for the core purpose of the project and
this primary data has been gathered by survey method. The researcher has also used
secondary data

B) Data collection Tools:

To conduct a survey, the Researcher has selected a structured questionnaire as an
instruction for gathering valuable information from the customers. Questionnaire,
which is used for the survey, is consisting of questions and checklist questions to
check the customer feedback.

C) Sampling Plan:
The researcher has design a sampling plan that is consist of five decisions.
I)

Sampling unit:

Who is to be surveyed?
The Researcher has selected youngsters, businessmen, and housewives,
employees to conduct survey and to measure satisfaction level.

II)

Sampling types:

There are two types of sampling i.e. Probability Sampling and Non probability
Sampling.
i)

Probability Sampling : -

Probability sampling means each unit of the universe has equal chance of getting
selected. The most frequently used probability sampling methods are as below:
39

a) Simple Random Sampling.

b) Stratified Random Sampling.
c) Multi-stage Random Sampling.
d) Cluster Sampling.
e) Multi phase Sampling.
f) Replicated Sampling.

ii)

Non Probability Sampling:Non Probability sampling contains following methods:-

a) Judgment Sampling.
b) Convenience Sampling.
c) Panel Sampling.
d) Quota Sampling
For this purpose the researcher has used non probability convenience
sampling.

III)

Sample Size:
Sample size means limited numbers of respondents covered under the research

study from a population and the researcher has taken a survey of 100 respondents to
know the satisfaction level of customer.

IV)

Sampling Area:

40

The researchers area for survey was:

The S.P.B. College of Business Administration, Udhna.
Vodafone Store, Ghod Dod Road.
Outside Big Bazaar, Piplod.
V)

Sampling Unit:
Here the researcher has randomly selected the respondents of the Surat city.

Data Analysis and Interpretation

After all the above steps are completed now the important step is data
analyzing and interpretation. For this there are various analytical and statistical tools.
Some of these tools are Percentage, Average, Dispersion, Co-relation, Co-efficient,
etc.

41

42

Q1) Do you have a mobile phone?

Purpose:
The main purpose of this question is to know how many respondents use
mobile phone.

Suggestions

Yes

No

No. of respondents

93

Interpretation:
93% of the respondents are have a mobile phone while 7% of the respondents
do not have a mobile phone.

43

Q2) Are you aware about telecommunications services?

Purpose:
The main purpose behind this question is to know about the awareness of
respondents regarding different telecommunications services and also to know about
which telecommunication(operators) service they use.

Suggestions

Yes

No

No. of respondents

95

Interpretation:
95% of the respondents are aware about
telecommunications services while 5% are
not aware.

44

Which operators service do you use?

Operators service name

No. of respondents

Vodafone

87

Airtel

29

Idea

17

Reliance

21

BSNL

Tata Indicom

Interpretation:
Major respondents using mobile are enjoying Vodafone services. 16% of the
respondents use Airtel, 6% respondents use Idea while 12%, 4% and 2% respondents
use Reliance, BSNL and Tata Indicom respectively.

45

Q3) Are you aware about Vodafone?

Purpose:
The purpose behind this question is to know about the awareness of Vodafone
among all the respondents.

Suggestions

Yes

No

No. of respondents

87

Interpretation:
Here 100% of respondents are aware about Vodafone Services.

46

Q4) From which source you came to know about Vodafone?

Purpose:
The purpose behind this question is to know from which source the respondents
came to know about Vodafone.

Sources

No. of respondents

Advertisements

63

Hoardings

52

Newspapers

35

Mouth Publicity

26

Interpretation:
36% of the respondents are aware about Vodafone through Advertisements,
29% are aware because of Hoardings while 20% and 15% of the respondents are
aware because of Newspapers and Mouth Publicity respectively.

47

Q5) Since how long you are using Vodafone Services?

Purpose:
The purpose behind this question is to know about the usage time of Vodafone
customers i.e. since how long they are using Vodafone services.

Time period

No. of respondents

Less than 1 month

12

2-6 months

19

6-12 months

22

More than 1 year

34

Interpretation:
Major Respondents using Vodafone are old customers. 39% of the respondents
use Vodafone services from past more than 1 year while the lowest is 14%
respondents using Vodafone services less than 1 month.

48

Q6) Which of the following services do you use of Vodafone?

Purpose:
The purpose behind this question is to know which services do the Vodafone
customer use, Pre-Paid or Post-Paid.

Services

No. of respondents

Pre-Paid

73

Post-paid

14

Interpretation:
84% of the respondents use pre-paid services while only 16% of the
respondents use post-paid services.

49

Q7) Which services are more helpful to you while using Vodafone
Services?
Purpose:
The purpose behind this question is to know which services are more helpful to
the respondent while using Vodafone.

Services

No. of respondents

Call Rates

27

SMS Rates

48

Network

36

Value Added Services

19

Interpretation:
Here major Respondents are youngsters so they mainly use SMS services of
Vodafone. 37% of the respondents use Vodafone for SMS services while only 14% of
the respondents use Vodafone for Value Added Services.

50

Q8) Do you call at customer care?

Purpose:
The purpose of this question is to know how many times and how often the
respondents call at customer care of Vodafone.

Suggestions

Yes

No

No. of respondents

76

11

Interpretation:
87% of the respondent calls at customer care while 13% respondents do not call
at customer care.

51

If yes, how often you call at customer care?

Time Period

No. of respondents

Daily

Once a week

12

Once a month

24

Occasionally

35

Interpretation
Major respondents here call customer care occasionally. 31% respondents
respondents call customer care once a month while 16% and 7% of respondents call
once a week and daily respectively.

52

Q9) For what reason you call at customer care?

Purpose:
The main purpose of this question is to know the reason of the respondents
regarding calling at customer care.

Reasons
Value Added Services
Information regarding new schemes
Complaining
Other queries

No. of respondents
21
23
42
36

Interpretation:
34% of respondents call at customer care for complaining purpose while 30%,
19% and 17% of respondents call customer care for other queries, information
regarding new schemes and value added services respectively.

53

Q10) Rate the following on the basis of your satisfaction.

Services

Excellent Very Good

Fairly Good Average

Poor

Network

31

29

17

SMS Rates

19

35

24

schemes 3

14

27

33

10

New

and offers
Customer Care

32

29

15

Recharge

12

28

31

14

20

43

19

Added 9

24

29

19

Outlets
Call Rates
Value
Services

54

55

Findings
93% of the respondents are have a mobile phone while 7% of the respondents
do not have a mobile phone.
100% of the respondents are aware about telecommunications services.
16% of the respondents use Airtel, 6% respondents use Idea while 12%, 4%
and 2% respondents use Reliance, BSNL and Tata Indicom respectively.
100% of respondents are aware about Vodafone Services.
36% of the respondents are aware about Vodafone through Advertisements,
29% are aware because of Hoardings while 20% and 15% of the respondents
are aware because of Newspapers and Mouth Publicity respectively.
39% of the respondents use Vodafone services from past more than 1 year
while the lowest is 14% respondents using Vodafone services less than 1
month.
84% of the respondents use pre-paid services while only 16% of the
respondents use post-paid services.
37% of the respondents use Vodafone for SMS services while only 14% of the
respondents use Vodafone for Value Added Services.
87% of the respondent calls at customer care while 13% respondents do not
call at customer care.
31% respondents respondents call customer care once a month while 16% and
7% of respondents call once a week and daily respectively.
34% of respondents call at customer care for complaining purpose while 30%,
19% and 17% of respondents call customer care for other queries, information
regarding new schemes and value added services respectively
5 respondents among the total no. of respondents dont use Vodafone services
because of high prices. 3 respondents dont use Vodafone services because of
poor services while 2 respondents each dont use vodafone services because of
lack of awareness and poor network.
90% of the Vodafone customers would like to recommend Vodafone services
to others while 10% of the Vodafone Customers wont recommend to others.

Conclusion
Follwing are the conclusion that the researcher found after the survey.

56

From the above analysis the researcher concludes that major respondents are
dissatisfied with some of the major services like call rates, SMS rates and new

schemes & offers.

Major respondents from all respondents use services of Vodafone.
Major customers of Vodafone are old customers so many of the respondents are
satisfied with the services of Vodafone and thus they would like to recommend

Vodafone to others.
Major respondents using Vodafone use pre-paid services compared to post-paid

services.
Major respondents are youngsters so they need more SMS facilities and low call
rates, but Vodafone dissatisfies these age group (18-25) as their call rates and
SMS rates are much high.

57

58

Suggestions
Following are some of the suggestions given by the researcher so that Vodafone can
serve people and its customers in an improved way:
Vodafone should decrease call rates for local users.
Vodafone should provide more offers to Post-Paid customers so that the
number of Post-Paid customers increase.
Vodafone should bring introduce some new SMS schemes for the youngsters.
Vodafone should introduce more schemes and offers.
Vodafone should provide more schemes and offers to its old customers.
Vodafone should decrease call rates of STD and ISD.

59

Q1) Do you have a mobile phone?

o Yes
o No
Q2) Are you aware about telecommunications service?
60

o Yes
o No
If yes, then which operators Service do you use?
o Vodafone
(Multi-choice)
o Airtel
o Idea
o Reliance
o BSNL
o Tata Indicom ( If not Vodafone then go to Q12 )
Q3) Are you aware about Vodafone?
o Yes
o No
(If No, then go to Q11 )
Q4) From which source you came to know about Vodafone?
o Advertisement
o Hoardings
o Newspapers
o Mouth Publicity
Q5) Since how long you are using Vodafone services?

(Multi-choice)

o Less than 1 month

o 2-6 months
o 6-12 months
o More than 1 year
Q6) Which of the following services do you use of Vodafone?
o Pre-paid
o Post-paid
Q7) Which services are more helpful to you while using Vodafone services?
o Call rates
o SMS service
o Network
o Value Added Services
Q8) Dou you call at customer care?

(Multi-choice)

o Yes
o No
If yes, how often you call at customer care?
o Daily
o Once a week
o Once a month
o Occasionally
Q9) For what reason you call at customer care?
o Value added services
o Information regarding new schemes

(Multi-choice)
61

o Other queries
o Complaining

Q14) Give your suggestions to help in serve you better.

_____________________________________________________________________
_____________________________________________________________________

Name: ________________
Age: ___ years
Sex: Male/Female
Contact no.: ___________
Signature: __________

62

63

Books:
Marketing Management Philip Kotler, Kevin Lane Keller.

Websites:
http://www.vodafone.com/start/media_relations/news/local_press_releases

/portugal/portugal_press_release/vodafone_had_highest.html
http://en.wikipedia.org/wiki/Customer_satisfaction
http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)
http://en.wikipedia.org/wiki/Vodafone
http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf
www.anacom.pt/render.jsp?contentId=606658
www.iimcal.ac.in/community/consclub/reports/telecom.pdf
www.scribd.com

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