INTRODUCTION TO TELECOM INDUSTRY

"Telecommunications is the backbone of our future economy. International

competitiveness increasingly depends on the development of a telecommunications infrastructure that is compatible with international standards. "

The cellular industry all over the world has been witnessing very high growth rates in subscriber base in recent years. For developing countries in particular, cellular services are becoming a very significant proportion of the overall telecom infrastructure. The mechanics of competition within this market involve complex feedback effects between individual service providers and with their operating environment, and these forces play an important role in governing the growth of this industry. In a country like India which is not yet telephone-saturated and the ongoing changes in related areas are resulting in a rapidly changing profile of users, providers and their respective needs, continuous revision of the telecom policy is imperative. Given the emerging new technologies and the integrating economies there must be fairness among competitors. The tele-density in India is about four per hundred people in respect of the fixed telephones and a little less than one in respect of the mobile telephony. The low densities are not because there is no need for a telephone but because of its high cost that many cannot afford that one. The situation here is nothing but holding true of the law of demand. Isnt it?

The history of telephone services in India found its beginning when a 50-line manual telephone exchange was commissioned in Kolkata in the year 1882 in less than five years after Alexander Graham Bell invented the telephone. While India became independent in the year 1947, the country had about 82,000 telephone connections, which slowly rose upto 3 . 0 5 m i l l i o n b y t h e y e a r 1 9 8 4 . T h e t e l e c o m s e c t o r i n I n d i a w a s a g o v e r n m e n t monopoly until the year 1994 when liberalization was

gradually unrolled. For the first time, cellular services were launched in India in Kolkata in the year 1995

The cost for the companies can come down if the revenue share imposed on them as a condition of license is abolished or drastically reduced. Today every telephone company is bound to pay a share out of its revenue to the exchequer. These costs are, however, not to be scheduled to take a step further in the development of the telecom. In addition when we go through the telephone bill there is a 5 to 8% service charge. This amount also does not go for the telecom development. If these external cost are removed there can be seen as purt in demand of not less than 40% as expected. While taking the side of suppliers a lot of new companies are coming into the battle field resulting in reduction of prices and hence a little less burdensome on to the customer. The cost of interconnection with the incumbent is proving to be contributory to the high cost of services provided by the competitors. The delay in the interconnection disregards the quality of service and high cost will detract from affordability. This is an area in which no consumer body can knowledgeably contribute unless it has the assistant of experts or economists who alone can discover all the relevant fact of all the contesting companies. It indicates the pre-eminent domain of TRAI (Telecom Regulatory Authority of India).As the driven down of the prices for long distance including international services reduces the amount available for subsidizing the local service, the rental for local services are being increased. Considering that about 90% of the long distance Calls are made by less than 20% of customers, 80% of customers have to pay higher rental this depresses the demand for telephones and affordability. The telecommunication companies in India went through a huge make -over during the implementation of the open-market policy of India.

TELECOMMUNICATION SCENARIO IN INDIA

India is the world's fastest growing Wireless market, with 752 Million mobile phone subscribers as of February, 2011. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The Indian Mobile subscriber base has increased in size by a factor of more than one hundred sinc e 2001w h e n t h e n u m b e r o f s u b s c r i b e r s i n t h e c o u n t r y w a s a p p r o x i m a t e l y 5 m i l l i o n t o 7 5 2 Million by Feb 2011.As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013. The industry is expected to reach a size of 344,921 crore (US$74.85 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. In 2008-09 the overall telecom equipments revenue in India stood at 136,833 crore (US$ 29.69 billion) during the fiscal, as against 115,382crore (US$25.04 billion) a year before.

HISTORY OF TELECOM INDUSTRY IN INDIA

The history of telephone services in India found its beginning when a 50 -line manual telephone exchange was commissioned in Kolkata in the year 1882 in less than five years after Alexander Graham Bell invented the telephone. While India became independent in the year 1947, the country had about 82,000 telephone connections, which slowly rose upt o 3 . 0 5 m i l l i o n b y t h e y e a r 1 9 8 4 . T h e t e l e c o m s e c t o r i n I n d i a w a s a g o v e r n m e n t monopoly until the year 1994 when liberalization was gradually unrolled. For the first time, cellular services were launched in India in Kolkata in the year 1995.

THE IMPACT OF TELECOM INDUSTRY IN INDIA ON I N D I A N ECONOMY

The telecom industry in India has witnessed a phenomenal and manifold growth over ther e c e n t y e a r s . I n t h e c o u n t r y , p e r s o n a l i z e d t e l e c o m a c c e s s h a s b e c o m e an essential necessity of life for a growing number of people. The t e l e c o m s e c t o r i n I n d i a h o l d s un limited potential talking of future growth. In the nation, both Public as well as privatef i r m s a r e v i g o r o u s l y e n h a n c i n g t h e i r t e c h n o l o g i e s i n a v e n t u r e t o t a ke the telecomi n d u s t r y i n t h e c o u n t r y t o a m u c h h i g h e r d e v o p m e n t . I n a d d i t i o n t o t h i s , t h e manufacturers of mobile handsets are significantly contributing to the telecom industry in the country and the economy of India. Telecom industry plays a major role in contributing to the Indian economy. As a highly encouraging factor, the Indian government is also introducing some highly beneficial and effective telecom policies and regulative measur es from time to time for the growth of infrastructure connected to this industry. Owing to these measures, a large number of multinational telecommunication leaders are pouring into the nation and expressing their interest to invest in the telecom industry in India.

Future Of The Telecom Sector

In recent time telecommunication industry is on a roll. The introduction of new products and services are revolutionizing communication and enriching our daily life and demand is soaring, thanks in part to resurgence in the Asian economy, which is fuelling the growth of the entire industry. Boosted up by the opening up of new markets, both geographically as well as in terms of expansion of product and service offerings, the telecom industry is enjoying an unprecedented boom time. To put it in perspective, the telecom sector has grown, on average, twice the rate for the global economy between 1990 and 2007.

Network operators are just beginning to reap rewards for the huge investments made in 3G a few years ago. In addition to contributing to increased sales as result of data access from mobile devices, 3G has opened a large market in mobile content - downloading of ringtones, wallpapers and games. Infact the devices themselves with ever-shortening life cycles are getting so rapidly commoditized that it is the content and value-added services that present the more lucrative opportunities. Barriers to entry are broken almost every day by creative content providers in their quest for the next killer application to take the market by storm. Asia, with the rapid growth of economies such as China and India, is playing a pivotal role in shaping the fortunes and future of the telecom industry. Not only are other regions now looking to Asia to replicate controllable factors that drive this growth, but also home-grown technology companies from Asia are beginning to take their place on the global stage with a powerful combination of enticing content services, innovative pricing models and cutting edge technology

Key focus to make the future colorful: Faced with the soaring demand and opportunities in new regions, telecom firms are focusing their attention on two key factors in an effort to increase the3G subscriber base: Creating attractive pricing schemes for data access, and Making available "killer" applications that exploit the large band width available.

The future of the telecom industry is also changing because of the changing technology in the mobile market. In the mobile phone market, new models are being rolled out with features targeted at specific user groups. There are feature phones for business people, with fast email services and document editing capabilities. On the other end of the spectrum are multimedia phones, further subdivided into units with advanced imaging and/or audio capability. In the next few years, there is likely to be further specialization as network providers offer package bundles comprising of a phone, customized content, applications and a unique pricing plan targeted for that user group.

INTRODUCTION TO THE ORGANISATION

History of Vodafone Essar Digilink Ltd.

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 products are as i m p l y b r a n d e d V o d a f o n e . I t o f f e r s b o t h p r e p a i d a n d p o s t p a i d G S M c e l l u l a r p h o n e 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 license areas.

OWNERSHIP:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, a n d o t h e r I n d i a n nationals, 15%.On February 11, 2007, Vodafone agreed to acquirethe controlling interest of 67%

held b y L i K a S h i n g H o l d i n g s i n H u t c h E s s a r f o r U S $ 1 1 . 1 b i l l i o n , p i p p i n g R e l i a n c e Communications, Hinduja Group, and Essar Group, which is the owner of the remaining33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8, 2007.

PREVIOUS BRANDS:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating i t s services under a single identity. Th e C ompany entered into agreement w i t h N T T DoCoMo to launch i-mode mobile Internet service in India during 2007.T h e company used to be named Hutchison Essar, reflecting the name of its previouso w n e r , H u t c h i s o n . H o w e v e r , t h e b r a n d w a s m a r k e t e d a s H u t c h . A f t e r g e t t i n g t h e 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 high-profile transition being unveiled today. Alon g 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. While there is no revealing the prices of the low-cost Vodafone handsets, the industry is a buzz that prices might start at Rs 666, undercutting Reliance Communications' much -hyped 'Rang Barse' with cheap handsets beginning at Rs 777.M e a n w h i l e , V o d a f o n e E s s a r s o u r c e s s a i d t h e r e w o u l d b e n o d i s c o u n t s o r s u b s i d i z e d 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.

HISTORY
Vodafone Group (Vodafone) was formed in 1984 as Racal Strategic Radio, as a subsidiary of Racal Electronics. The group changed its name to Racal Telecommunications Group in 1985. In the same year, analogue mobile network was launched, with the first call being made from London to New bury. It was the first cellular network launched in the UK. The license prohibited the network from selling directly to the public, hence Vodac, its wholly owned subsidiary, was launched in 1984 to act as a service provider for the network. By the end of 1986,the group had 63,000 customers, and in 1987, Vodafone was acknowledged as the largest mobile communications group in the world. In 1988, the group changed its name to Racal Telecom and its20% ordinary share capital was floated on the London and New York Stock Exchanges. In 1991, the group fully demerged from Racal Electronics and became an independent company.

Past Performance of the company

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc. and became an independent

company in September 1991, at which time it changed its name to Vodafone Group Plc. Following its merger with Air Touch Communications, the company changed its name to Vodafone Air Touch Plc. on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc., on 28 July 2000.

Achievements in 2012:
Vodafone acquires a 70% stake in Ghana Telecom for $900 million (July) Vodafone launches the M-Paisa mobile money transfer service on Afghanistan's Roshan. Afghanistan is added to the Vodafone footprint.(February) Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited. (May) Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market, (February) Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. (February) Vodafone signs a series of ground-breaking agreements which will lead to the mobilizing of the internet. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile phones. With Google, Vodafone announces its intention to develop a location-based version of Google Maps. With eBay, Vodafone announces it is to offer the new eBay mobile service to customers, With My Space.com Vodafone announces an exclusive partnership to offer Vodafone customers a MySpace experience via their mobile phones.

Organizational Structure

Vodafone Worldwide

ABOUT TELEPHONE On landlines, intra-circle calls are considered local calls while inter-circle are considered long distance calls. Currently Government is working to integrate the whole country in one telecom circle. For long distance calls, the area code prefixed with a zero is dialed first which is then followed by the number (i.e. To call Delhi, 011 would be dialed first followed by the phone number). For international calls, "00" must be dialed first followed by the country code, area code and local phone number. The country code for India is 91.Telephone Subscribers (Wireless and Landline): 787.28 million (Oct 2010) Land Lines: 35.09 million (Oct 2010) Cell phones: 752.19 million (Oct 2010) Monthly Cell phone Addition: 22.62 million (Dec 2010)Tele density: 66.16% (Dec 2010) Projected Tele density: 1 billion, 84% of population by 2012

MOBILE TELEPHONES With a subscriber base of more than 680 million, the Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by the Information Ministry. In September 2004, the number of mobile phone connections crossed the number of fixed-line connections and presently dwarfs the wire line segment by a ratio of around 20:1 The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over 680 million subscribers as of Sep 2010 (a period of less than 9 years) . India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most and many foreign carriers generate returns.

Service Provided By Vodofone

Yahoo! Messenger for SMS

Cell Banking

Roaming

One number across the globe

National and International Roaming on Vodafone Prepaid

WAP

Group Messaging

Vodafone4help

Call Management:

Vodafone magic box

Missed call

Call barring

Call conferencing

Call forwarding

Vision
To be the world's mobile communications leader enriching customers' lives, helping individuals, businesses and communities to be more connected in a mobile world. Our customers use mobile communications to make their lives richer, more fulfilled, more connected. They will choose Vodafone because it is the best experience they can find. Through our leadership, our scale, our scope and our partnerships, Vodafone will bring online mobile services to the world. Vodafone will lead in making the mobile the primary means of personal communications for every individual around the world. Vodafone Customers Vodafone customers have chosen to trust the group. In return, Vodafone must strive to anticipate and understand their needs and delight them with the services provided. Vodafone value customers above everything else and aspire to make their lives richer, more fulfilled and more connected. Vodafone must always listen and respond to each of its customers.

FINDING
Majority of the respondents using Vodafone services. Majority of the respondents are aware about Vodafone Services available. The respondents are more aware through word of mouth. Most of the respondents are Vodafone customers and majority of them are new to Vodafone services. Majority of the respondents use prepaid services. Majority of the respondents use Vodafone services for reasons ranging from Economical to Easy to use purpose. Here major respondents are youngsters so they mainly prefer and go for call rates of Vodafone. Majority of the respondent connect with customer care for their queries and complaints regarding services. General plan is the most popular plan used by majority of respondents Majority of respondents feel that Vodafone is reliable and prices are competent and reasonable. Majority of the Vodafone customers would like to recommend Vodafone services to others.

RESEARCH METHOLODOGY

PROJECT TITLEA study of finance MARKET FESIBILITY OF CASH CREDIT IN STATE BANK OF PATIALA, JAIPUR.

DURATION OF PROJECT- 45 DAYS

OBJECTIVE OF THE PROJECT To ascertain the awareness of the cash credit as a product/ offering of SBP Bank. To identify the major market players of this offering and their respective share. To assess the importance of the loyalty of the customers vis--vis financers. To identify the share/ segment (whether it exists or not) for the said offering of the SBP Bank

RESEARCHResearch Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. When we talk of research methodology we not only talk of research methods but also consider the logic behind the methods we use in the context of the research study and why we are not using other methods so that research results are capable of being evaluated either by the researcher himself or by others.

Research Area:
Research area of my study is Hyundai motors India ltd. More specifically my research area is to do financial analysis of this company. It includes sales, production, cost, profit, liquidity and solvency analysis of this company. To study its Corporate Social Responsibility and its concern towards environment and safety also formed a part of my research area.

Objectives of the Study

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.

Benefits of the study:

There are many benefits related to take this study. Some of the benefits of takingthis 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.

Research design:

Research design indicates the methods and procedure of conducting research study. In this study the design used is:

Descriptive Research Design As Descriptive research is undertaken when the researcher want to know the characteristics of certain groups. Hence, this research design is appropriate for this project study.

Data Collection and Sampling:

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

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.

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: Libraries, trade publications, literatures, etc. are some important sources of external data. In this our survey team has used primary data for the core purpose of the project and this primary data has been gathered by survey method. We have also used secondary data to know the background of the company.

Data collection Tools

To conduct a survey, a selected a structured questionnaire has been used 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.

Sampling unit: Who is to be surveyed? For this, youngsters, businessmen, and housewives, employees are selected to conduct survey and to measure satisfaction level.

Sample Size: Sample size means limited numbers of respondents covered under the research study from a population and they have taken a survey of 100 respondents to know the satisfaction level of customer.

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

D A T A A N A L Y S I S A N D I N TE R P R E T A T I ON
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.

5 Forces Vodafone:
Rivalry: The threat of rivalry in this business is impacted by the low number of big firms in the market. There are a few numbers of large firms worldwide that competes for the market share; this lowers the threat of rivalry. The firms that are in the business however are very competitive and because of a relative slow market growth in this industry the firms fight over the market shares that are out there and that increase the threat. There is also a low level of switching costs to the consumer and a low level of product differentiation and this further brings the threat level of rivalry up. So in the mobile network industry the threat of rivalry is fairly high.

Substitutes: The threat of substitutes for voice and data communication over the traditional network is moderate. People calling over long distances could instead of picking up a phone go to a computer and call through that. The low costs of computer calling could potentially take over most long distance calling. The more local calls and business calls would be more secure for the mobile market, although cell phones with the ability to use the internet to make calls are being made available and will soon take a considerable market share of calls made. The threat of substitutes can be reasonable high in this industry.

Buyers: The threat of buyers in this industry can be considered fairly low. The individual buyer has no impact on the price of the products offered.

Suppliers:

Suppliers power in some aspects of this industry is high. In the cell phone part of the business the suppliers of the phones can have a big impact on the price of products and the condition of the deal they make with the provider. One clear example of this is when apple launched their new I-phone. They made an exclusive contract with AT&T so they had the exclusive right to be the service provider to their phone in America. So the suppliers power in this industry is high.

New Entry: The threat of entry is highly influenced by the economy of scale of the existing companies. The large well established companies that have a strong foothold in the market and a known brand name would make entry for a new company costly. Although there are some new arrivals the larger firms control the market and will put pressure on any new entries. The threat of new entries is fairly low for the bigger companies. some functions on the phone like IP communication would be useless. Since this is one of the biggest selling points for the product you basically lock the customer in to your carrier. To be able to make money of you customers you set a fixed monthly payment for the plan and no extra charges for calling people over the wireless networks, but standard charges for regular charges made from the phones . Strategic Option 2: It is hard to try to develop a strategic option to revolutionize the telecom industry for a company that has already been involved in shaping the industry for many years. Option 2 will differ from Option 1 in multiple areas. For option 2 we propose that Vodafone enters the American market place as soon as possible as Vodafone the company instead of through subsidiaries. Vodafone has always focused their marketing efforts mainly through sponsorships of large sports teams such as Manchester United Football Club and McLaren Mercedes Benz Formula 1 team along with hundreds of others. We believe that Vodafone can copy many of the elements that European customers have been satisfied with directly over to the American market which is currently lagging behind by almost five years compared to Asia and almost two years compared to Europe. Providing 3G service in the United States is needed and we believe that Vodafone could successfully gain market share in the United States. Vodafone has very high brand equity worldwide and we believe that it is time to establish a grip on the US market.

Fact and findings

Customer Satisfaction

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 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. However, the importance of customer For satisfaction diminishes phone plan when a firm has such

increased bargaining

power.

example, cell

providers,

as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine

print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Measuring customer satisfaction Organizations need to retain existing customers while targeting non-customers.[2] 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 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 factors the customer, such as other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry (Leonard L)[3] between 1985 and 1988 delivered SERVQUAL which 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 researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation. 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 in terms of their perception and expectation of performance of the service being measured. Arguably, consumers are less complex than some of these surveys tend to portend. They are basically in two simple states; satisfied or not satisfied. On or off, just like a switch. A business can measure its customer satisfaction index by relating the aggregates of satisfied customers versus dissatisfied customers.

Methodologies American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, research has shown that ACSI data predicts stock market performance, both for market indices and for individually traded companies. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results applies the ACSI to websites and other online initiatives. ASCI scores have also been calculated by independent researchers, for example, for the mobile phones sector, higher education, and electronic mail. Understand Customer Expectations These organizations demonstrate a commitment to understanding t h e c u s t o m e r ' s perspective. Most of the benchmarking partners send surveys to customers who have complained recently to see how satisfied they were with how the complaint was handled. Some call the customers to determine satisfaction. One organization surveys every fourth customer with a complaint. Another described complaints as "free information" about their customers needs and expectations. These organizations supplement surveys of people who complain with routine and often extensive data collection tools in order to understand their customers. Customers are surveyed to determine their level of satisfaction with existing services. Surveys are sent with questions, often in a Likert Scale format where the customer can select the degree of satisfaction on a scale, e.g., from one to five. These surveys assess customer satisfaction with existing services, delivery of services, helpfulness of employees, and overall performance of the organization. Some companies add a few short questions to the end of customer calls or correspondence. Companies

also survey their front-line employees for their attitudes as well as for their ideas for improveds e r v i c e , a s k i n g t h e i r e m p l o y e e s t o t a k e t h e c u s t o m e r ' s p e r s p e c t i v e . A f t e r t h e n e a r b y community complained about noise levels, the Red River Army Depot changed the times they detonated ammunition and put "listeners" (members of the community) at check - points throughout the surrounding area to monitor noise levels. The partners focus on clear customer target groups. One company that serves a wid e variety of customers decided to focus on its high -volume business c u s t o m e r s . T h r e e months after a high-volume business customer has complained, the company follows

upto f i n d o u t w h e t h e r t h e y a r e s t i l l u s i n g t h e i r s e r v i c e s a n d , i f n o t , t h e r e a s o n s f o r dissatisfaction.

2. Manage Customer Expectations

These organizations do not wait for complaints to come in the door. They try to anticipate the needs and problems of customers and to set realistic expectations through customer education and communication st rategies. Research shows that 40 percent of complaints come from customers having inadequate information about a product or a service.(5)Using customer feedback to understand customer

expectations and needs, organizations educate their customers and/or the public on what they can expect from their products and services and what obligations and responsibilities their customers have. For example, one enforcement/ regulatory partner has extensive education on the requirements and reasons for utilizing their services.

Know How to Say No

Both companies and government agencies, especially regulatory agencies, need to draw l i m i t s . W h e n i t i s n o t p o s s i b l e t o g i v e t h e c u s t o m e r w h a t t h e y w o u l d l i k e , i t i s s t i l l possible for a customer to feel that he or she has been heard and has been treated fairly. A number of techniques convey concern--calling customers and telling them the company u n d e r s t a n d s ; g i v i n g t h e c u s t o m e r t h e b e s t

explanation

they

can;

and

being

open

andh o n e s t w i t h c u s t o m e r s c o n c e r n i n g l a w s a n d p o l i c i e s o f t h e o r g a n i z a t i o n . B e i n g professional and considerate of customers enhances their view of the organizationeven when the customer may be disappointed with the outcome. A recent taxpayer letter to the Internal Revenue Service shows that the techniques cited above really work: "For the first time in a long time, a communication from IRS is c l e a r , c o n c i s e , informative and user friendly. . . The attached --while I'd preferred not to have made the mistake--points out exactly what happened and what needed to be done. "In a small percentage of cases, it will be necessary to close a complaint when it is felt that the company or agency has done everything that can be done.

Supply chain Vodafone sits at a pivotal position in the supply chain, linking the end customer with a complex pyramid of supply. We source equipment for our networks and the handsets we sell from thirdparty manufacturers which themselves source components and assembled products from other suppliers. We strive to work with suppliers that maintain high labor and environmental standards. Our Code of Ethical Purchasing (CEP) sets out Vodafones expectations of suppliers. Our strategy is to monitor, assess and work with our Tier 1 suppliers those that provide us with products and services directly to help them improve their sustainability management and performance. We believe that ensuring our Tier 1 suppliers take responsibility for working with their own Tier 1 suppliers and have the capability to do so is the best way to achieve sustained improvement throughout the supply chain. Ensuring we have robust processes in place to manage sustainability risks in the supply chain is becoming more important to Vodafone as we extend our range of Vodafone-only branded products and increasingly outsource the deployment of our networks. Vodafone-only branded handsets and data cards require us to deal directly with contract manufacturers in Asia, rather than through established consumer brands. While this enables us to control more closely the design, specification and cost of devices, it also increases the risk and potential impact on our reputation if issues occur as Vodafone is the only brand label on the product. Our site assessment process helps us manage this risk.

Customers We put customers at the heart of our business. We want them to value their experience with Vodafone, using innovative products and services across wide-ranging, high speed, reliable networks. Vodafone is investing in mobile applications that will promote economic development, improve quality of life for customers, and help business customers and consumers cut their carbon footprint.

Access to communications Extending access to communications will help to maximize our contribution to a sustainable society, and it is also good business. We are working hard to extend the benefits of mobile to more people in emerging markets by expanding the reach of our networks and introducing more affordable products. Vodafone also offers applications designed to meet specific needs such as mobile money transfer services for people without bank accounts and mobile solutions to improve the efficiency of healthcare. We also aim to make mobile communications more accessible for disabled and elderly customers increasingly important with an ageing population in many of our markets. Our local markets offer a range of products, services and tariffs to increase accessibility for customers who are blind or visually impaired, deaf or hard of hearing, or elderly.

Earning customer trust Maintaining our customers trust by acting responsibly is essential to achieving these long-term sustainability goals, strengthening our brand and ensuring our continued commercial success. Trust in Vodafone depends on three main factors: the reliability of our network, products and services; clear and fair pricing; and our approach to protecting customers privacy and safety. Our aim is to ensure customers are satisfied with our service and in control of how they use it.

Customers and the environment

Our products and services can enable our customers to have more sustainable lifestyles in a lowcarbon society (see enabling a low-carbon economy). However, we recognize there

are environmental impacts associated with our products design, manufacture and distribution, and their operation and disposal. As well as working to reduce impacts from our operations and supply chain, we also aim to help our customers reduce impacts during use and disposal of our products.

Our approach

Vodafone does not consider sustainability as a philanthropic gesture or add-on. It is part of our core business (see our strategy). Our sustainability management mirrors the way we manage our business, with a global team of sustainability managers working across the business with a presence in each local market. A key challenge for a large multinational company is to embed sustainability at every level in every local market. Achieving this means communicating with employees and creating an organizational culture where the instinctive course of action is the responsible course of action, based on our Business Principles.

MARKET MIX OF VODAFONE

PRODUCT Features like chat, games, ringtones video Clips, caller tunes etc. On-the-move information service. Black list callers. Social Products.

PLACE Vodafone covers almost 75% of its operational area. It also sells through independent retailers. Customers are able to see and handle products they consider to buy. People are on hand to ensure customers needs are matched with the right product to explain the different options available.

PRICE Vodafone wants to make its service accessible to all. Offers various pricing structure to different customer groups. Monthly price plans are available. Rewards on the usage.

PROMOTION Above the line: Advertising on TV, magazines, via internet and on bill boards. Below the line: Special offer promotions. Vodafones stores, its products and all its staff project the brand image. Public relations by its press releases.

PORTERS FIVE FORCES MODEL

Bargaining Power of Buyers

The buyers in the mobile telephony industry are strong. These powerful buyers can reduce the cost leaders prices, but not past the level of their closest competitor. This ensures Vodafone will continue to profit at above average returns compared to its closest competitor.

Bargaining Power of Suppliers

Suppliers of the mobile telephony industry are strong. Vodafone, by being a cost leader, operates with margins greater than its competitors, which, in turn, allows them to absorb price increases from its suppliers easier than its competitors. By being a large, focused player of the mobile

telephony industry, Vodafone could hold suppliers costs down, and it could make a profit even if its competitors are making only average returns.

Potential Entrants

While the threat of new entrants is weak, Vodafone must continue toreduce costs below that of its competitors. By maintaining high levels of efficiency, Vodafone can help make the entrance into the Mobile telephone industry unattractive to its potential competitors.

Product Substitutes

Vodafone faces a low threat of product substitutes. The focused cost leadership strategy that Vodafone operates under makes it difficult for a comparable substitute to be produced at a lower rate by their excellent use of economies of scale, their buying power, and their absorption of temporary price increases that come from suppliers that dont need to be passed on to the consumer.

Industry Rivalry

Vodafone faces a very high industry rivalry from its competitors because as the different mobile operators slashes its rate per call or provides any new services then they also have to provide to its customers (a) Valuable Yes Because Vodafone sticks to what it knows best, mobile telephony, and has not ventured into fixed line. Telephony or providing content, they created value for their customers by being the best and most focused. (b) Rare Yes Vodafone's ability to develop innovative technology and successfully merge are rare capabilities.

(c) Costly to Imitate Yes The organizational culture of Vodafone must be strong to successfully complete mergers and acquisitions, while simultaneously developing innovative technology. These capabilities have developed over time and the expertise gained will be very difficult for other firms to develop. (d) Non-substitutable No Vodafone's mobile telephony is substitutable, as evidenced by the high turnover throughout the industry. While most organizations have gone the way of outsourcing their peripheral activities while managing their core competencies in-house, a recent happening in the Wireless industry seemed to have changed this rule. March 18, 2009 witnessed an announcement from Vodafone that they have decided to outsource the administration of their large wireless network in the UK to none other than Ericsson. Vodafones brand image is very evident and has a strong market value, analysis.

STP ANALYSIS

Segmentation Vodafones services are spread wide across India. Therefore, the segmentation can be done based on the geographical conditions. Also, segmentation by Vodafone is done based on the service usage by the customer. For instance, usage in terms of Post-paid or Pre-paid and further, services can be defined as the customers who would prefer caller tunes, or know about the financial, or interested in astrology. To an extent, the nature of customer also a segmentation strategy as a customer can be defined as a sole customer who purchases the connection on his

name and uses it himself, and the other can be defined as Institutional where a company or any corporate purchases the connection and gives it to their employees whereby the bills expense would be borne by the company . Targeting

Vodafone is adopting a multi-segment approach. They are offering a series of differentiated products to their respective markets. For instance, they have come out with Home calling cards for the family to those professionals who use to work abroad. They are targeting middleclass customers which can be clearly justified by their products they are offering like Rs. 10 chota recharge, inexpensive SMS facility for the youth.

Positioning Initially, Hutch positioned them as Where you go the network follows you. Hutch is a brand that always tried to connect with customers in a simple, honest and real manner, while Vodafone is amore of a young and a fun brand. The positioning strategies have been highly successful for Vodafone as they made a wise decision of restraining the PUG dog which was a very powerful visual imagery. Also, actor Irfan Khan has been restrained for the brand promotions. Vodafone have always talked about the exclusivity of the network, and the services they are offering to the customers very effectively.

Past Years Analysis of Vodafone On customer Satisfaction

VODAFONE HAD HIGHEST CUSTOMER SATISFACTION INDEXIN

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 haveof theo p e r a t o r , C u s t o m e r E x p e c t a t i o n s , P e r c e i v e d Q u a l i t y o f the operator's network andservices, P erceived Value for Mone y, C ompl a i n t s r e c e i v e d a n d t h e i r h a n d l i n g , a n d Loyalty of customers to their operator. 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 productsa n d s e r v i c e s o f f e r e d ; c l a r i t y a n d t r a n s p a r e n c y o f i n f o r m a t i o n s u p p l i e d ( 7 . 8 p o i n t s ) ; 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 come stop 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 200 7 survey (ECSI European Customer S a t i s f a c t i o n I n d e x ) i s s i m i l a r t o t h a t u s e d b y t h e E u r o p e a n C o m m i s s i o n t o s u r v e y 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

witht h e P o r t u g u e s e Q u a l i t y I n s t i t u t e a n d t h e P o r t u g u e s e Q u a l i t y A s s o c i a t i o n , w i t h sponsorship from Anacom.

VODAFONE CONTINUES TO HAVE THE MOST SATISFI E D CUSTOMERS IN THE COMMUNICATIONS SECTOR

National Customer Satisfaction Index published by Anacom Lisbon, 16 August 2010 Vodafone Portugal has once again obtained the highest customer satisfaction rating in the telecommunications sector, according to a survey published by the regulatory authorit y, Anacom. Vodafone achieved a satisfaction rating of 7.93 (on a scale from 1 to 10), the highest in the whole of the communications sector.C arr ied out annually, the EC S I P ortugal R eport published b y Ana com presents the National Customer Satisfaction Index in the telecommunications sector, covering mobile, fixed phone, Internet and pay -tv operators. As in the previous two yea rs, Vodafone was rank ed in first place in all the indicators reported in this surve y: the Ima ge that customers have of the operator, Customer Expectations, the Perceived Quality of the

o p e r a t o r ' s netw o r k a n d s e r v i c e s , P e r c e i v e d V a l u e f o r M o n e y , S a t i s f a c t i o n with the Operator,Complaints Received and how they are handled, and Customer Loyalt y to their o p e r a t o r . In t h i s y e a r s s u r v e y , V o d a f o n e s a w i t s a l r e a d y h i g h c u s t o m e r s atisfaction ratingsimprove further on last year, with considerable rises i

n the results achieved in allindicators. Vodafone customers to be those most satisfied with their operator. In the

continue mobile

communications subsector, the Report states that "Overall, Vodafone has the highest ratings", and specifically that "Vodafone has the highest ratings in the seven variables overall surve yed. TMN in has the lowest the

performance

estimatedratings. According to the report, "Vodafone remains in top pos ition in thesatisfaction index and in the lo yalt y index , Vodafone is once again in top position, well ahead of Opt imus and

TMN".The ECSI Portugal National Customer Satisfaction Index stems fr om Portugalsmembership of the ECSI (European Customer Satisfaction Index) project, initiated in1999 by the European Commission and

EOQ (European Organiz ation for Quality). The ai m of the project is to anal yz e customer satisfaction using the same methodology in all

Member S tates so as to provide a comparative anal ysis for the various business sectors in each countr y. The EC S I P ortugal surve y was c arried out by the Higher I n s t i t u te of Statistics

andInformation Management at the New University of Li sbon in partners hip with thePortuguese Association for Quality and the Portuguese

Quality Institute, with sponsorship. Vodafone Announces Accessibility App Winners

Relatively few mobile application developers focus on the potential that smartphone apps have to help people with disabilities play a more active and independent role in societ y. Ye t, over one billion people live with some form of disabilit y. Hence, Vod afo ne partnered with AGE P latform Europe and the European Disability Forum(EDF) to develop the Smart Accessibility awards. The winners of the inaugural awards have just been announced. The winning smartphone apps whose developers will share the 200,000 prize fund are: BIG launcher; Help Talk; Wheel map; and Zoom Plus Magnifier. They are all Android apps and three of

them are in the Android Market but Go MO News couldnt find Help Talk. Commenting on the awards, Vittorio Colao, Vodafones CEO, said, Vodafone is committed to doing all we can to empower consumers of all ages and abilities: we want to extend the smartphone revolution to as many communities as possible. Anne-Sophie Parent, AGEs Secretary -General, added, In a societ y driven by new technologies , it is essential to make sure new

applications are accessible to all, in order to avoid increasing the digital divide and the social exclusion of the most Vulnerable groups of the population. Help Talk from 1000 Empresas (which won the award in the well being category) is designed for people who are unable to communicate by speech, whether permanently or temporaril y, such as those recovering from strokes. The application presents a set of commands represented by icons which when tapped speak the basic ne ed or desire such as Im thirst y or I fe e l pain and goes on to allow the user to provide further detail in the same wa y. Even though Go Mo News found out who created Help Talk (1000 Empresas) thanks to the Guardian

here. However, you are still going to have a lot of trouble finding it. Help, talk and speak are extremely common search words. Theres some sort of bitter irony here Wheel map (Sozialhelden) won the mobility category and enables people with impaired mobility who face obstacles as the y go about their ever yda y life. It utiliz es crowd sourcing. Zoom Plus Magnifier (232 Studios) won the independent living category and this app permits people with visual disabilities including color

blindness and long or short-sightedness. BIG Launcher (BIG Launcher Team) won the social participation categor y. it is an app which lets you customize the Android home screen.

SWOT Analysis of Vodafone

Vodafone Group (Vodafone) is one of the worlds leading providers of mobile telecom services. The group provides mobile voice and data

communication services to consumers and enterprise customers. The group has global operations spanning Europe, the Middle East, Africa, Asia Pacific, and the US. Its prominent market position will provide a competitive advantage to the group over other pla yers and helps it in enhancing the operating performance. However, intense competition in the telecommunications industry will adversely affect the groups

market share and revenue growth in the coming years.

Weaknesses & Strengths

Legal proceedings, Prominent market position, Extensive global reach and Diversified revenue base significant brand image .

Threats & Opportunities

Intense competition Growth of mobile advertising Regulatory environment Increasing 3G penetration Matured markets Focus on M2M solutions Mobile money transfer services Market Growth of Indian telecom market

Questionnaire

AGE GROUP

Ques: 1. Number of Vodafone users according to age group. 1) BELOW 18 2)18-27 3)27-40 4)40 AND ABOVE

INCOME (MONTHLY)

Ques: 2 Number of Vodafone users according to monthly income. 1) 4,000 OR LESS 2) 4,000-10,000 3) 10,000-20,000 4) 20,000 & ABOVE

EDUCATION Ques: 3 Number of Vodafone users according to Education. 1) BELOW 10th 2)10th TO 12th 3) PURSUING GRADUATION/ GRADUATE

OCCUPATION

Ques:4 Number of Vodafone users according to Occupation. 1) SHOPKEEPER/BUSINESSMAN 2) STUDENT 3) EMPLOYEE 4) FARMING 5) OTHERS

Ques: 5 Since when are you using Vodafone connection? 1) LESS THAN 6 MONTHS 2) 6-12 MONTHS 3) MORE THAN A YEAR

Ques:6 What is your monthly Expenditure on Mobile phone? 1) BELOW 50 2) 50-150 3)151-351 4)351-500 5) 500 AND ABOVE

Ques 7: From where do u get to know about the new Value added Services? 1) HOARDINGS 2) POSTER 3) RADIO 4) SMS / IVR CALLS 5) RETAILER 6) OTHERS

Ques:8 WHICH OF THE FOLLOWING VAS DO YOU USE? 1) SMS 2) CALLER TUNES 3) GPRS 4) OTHERS, please specify

Ques:9 HOW MANY AVERAGE MESSAGES DO YOU SEND ON WEEKLY BASIS 1) LESS THAN 10 2)10 TO 25 3)25 TO 100 4) MORE THAN 100 5) NO SMS

Ques:10 ARE YOU SATISFIED WITH THE PRICE CHARGED FOR THE MESSAGES? 1) Yes 2) No, Specify reason

Ques :11 What kind of Caller Tune do u prefer? 1) Bollywood 2) English 3) Haryanvi 4) Religious 5) Others, please specify.

Ques:12 VAS users according to Occupation? 1) Businessman 2) Employee 3) Student 4) Farming 5) Others , please specify

Qu es: 13 Are you satisfied with the customer services of Vodafone? 1) Yes 2) No, Please specify

Ques 13 Are you Aware about Vodafone? 1) Yes 2) No

Awareness about Vodafone

Yes(100%)

Ques 14 How do you find the Vodafone Network?

1) Excellent 2) Good 3) Average 4) Poor

Vodafone network

Excellent(10%) Good(50%) Average(35%) Poor(5%)

Ques 15 Is the advertising of Vodafone Attractive? 1) Yes 2) No s

Attractiveness of Vodafone Ads

YES(85%) NO(15%)

Conclusion:

It was a learning experience studying the customer satisfaction towards Vodafone services in Jaipur city. Although it was not easy task collecting information from the customers but it was also a challenging and interesting one where I had real experience of customer inputs regarding a product. From the above analysis, I would like to conclude that major respondents are satisfied with Vodafone services like call rates, SMS rates and new schemes& offer many of the respondents are satisfied with the services of Vodafone and thus they would like to recommend Vodafone to others. Most of the respondents are also satisfied with the network provided by Vodafone. Vodafone can improve its customer base by innovating variety of services to its customer. Vodafone Super Weeks is one such example where they are targeting youth for the online services through mobile phones. Its a strategy which can get them to the market leader position in the coming year. To conclude, Vodafone is growing because of satisfied customers with its services and new and innovative plans for all categories of customers

Suggestions

Suggestions on the basis of study and observation made during the project. They might be helpful for Vodafone to serve its customers in an improved way and also increase its customer base in Jaipur city:

Vodafone should decrease call rates for local users. It can be done on the basis of type of usage.

Vodafone should introduce more schemes and offers for all categories.

Vodafone should introduced new SMS schemes in their youth plans to meet the challenges of its rivals.

Vodafone should provide more schemes and offers to its old customers in order to retain them for the loyalty shown by them. Vodafone should decrease call rates of STD and ISD to increase its subscriber base.

BIBLIOGRAPHY P h i l i p
th

K o t l e r ,

1 3

e d i t i o n ,

p u b l i s h e d

b y

o r l i n g Kindersely (India) pvt. Ltd., licensees of Pearson Education in South Asia, year of publication is 2009.

WEBSITE: http://wwwpp.vodafone.com/content/index/press/local_press_releases/portugal/portugal_press_relea se/vodafone_continues.html http://www.vodafone.in/pages/index.aspx http://www.customerexpressions.com/cex/cexweb.nsf/%28GetPages%29/fb0e21c03e1a1 fbb85257011006e6396