A Marketing Research Report on

VODAFONE
NAME
Shah Nikesh
CLASS
S.Y. B.B.A
ROLL NO.
SEAT NO.
____
ACADEMIC YEAR
2008-09
COLLEGE
Shree H.N. Shukla College, Rajkot
SUBMITTED TO
SAURASHTRA UNIVERSITY
GUIDED BY
Mrs. Dina Kanani

Declaration
I the undersigned NIKESH SHAH a student of S.Y.B.B.A.,
here by declare that the project work presented in this respect is my
own work and has been carried out under the supervision of Mrs.
Dina Madam of H.N. Shukla COLLEGE, RAJKOT. This work has
not been previously submitted to any other university for any other
examination.

Date:

Student Sign:

Place:

Preface
In this era of globalization where every minute India is
moving a step ahead and expanding it horizontally, management in
India is heading towards a profession. The demand for
managements professionals is increasing day by day. In such a
competitive surrounding it becomes a requirement to have an edge
over others and B.B.A is such a course, which helps and assists
students in doing that.

The practical studies are treated as a different subject in

B.B.A which helps the students in practically applying their
theoretical knowledge. It helps us to face competition, builds up our
confidence and also add something to our personality. Over and
above in this fast moving economy, here practical studies play an
important role in molding our carriers.

Acknowledgement
I am much obliged to express my deep gratitude to all the
personalities who spared their valuable time and gave me helpful cooperation and guidance for my Project Report.
I am heartily grateful to the management of Shree H.N.
Shukla particularly to the in charge Mrs. Dina Kanani for her helpful
co-operation, inspiration, interest and valuable guidance in preparing
this report.
It is a matter of a great pleasure and excitement for me. I
express my sincere thanks to both Gentleman and staff members for
devoting their valuable time and providing extreme co-operation and
guidance.
Last but not least, I would like to express my sincere thanks to
all respondents, friends and family members who have helped me in
preparing report through the preparation of this report.

Date:

Student Sign:

Place:

Index
NO.
1
2
3
4
5
6
7
8
9
10
11
12

PARTICULARS
General Information
Company Profile
Marketing Department
Finance Department
Personnel Department
Future Plans
SWOT Analysis
Suggestion
Contribution
My Observations
Conclusions
Bibliography

PAGE NO.
6
19
25
45
53
66
68
74
76
78
80
83

General
Information
Contents
NO.
1

PARTICULARS
Introduction

Page No.
8

2
3
4
5
6

Overview of company
History & Development of Company
Achievements
Location of Company
Types of Management Structure

10
11
13
17
18

Introduction
Vodafone is a leading global telecommunications and data
services provider operating with a high growth strategy in 17
countries. It is a dynamic and agile player with a strong track record
as:

The first to market with an international 3G video mobile network.

One of the most profitable 2G mobile voice and data network

operators.
7

As a major owner and operator of the fibre optic broadband and fixedline networks in England, serving as a telecoms gateway to China.

It is a world no. 1 in telecommunication.

Vodafone started mobile business in 1983 in our home market
of England and now serves over 40 million customers. Our array of
telecommunications and data network offerings provides a depth of
technological knowledge and insight into emerging consumer trends.
This breadth of services in so many markets around the world also
allows our operations to exploit opportunities, synergies and our
critical mass in order to maintain our leadership position. Our
telecommunications and data infrastructure support offerings in the
areas of mobile telephony (voice and video based multimedia),
fibre-optic broadband networks, fixed-line services and radio
broadcasting
VODAFONE is proud to be the first international provider of
3G video mobile services and an early adopter of the latest and most
promising mobile phone technology.

Another of our major telecommunications subsidiary is

VODAFONE Telecommunications International Limited which was
listed on the England and New York stock exchanges in October
2004. VODAFONE Telecom has a significant presence, and in
many cases is a market leader, in nine dynamic markets, operating
or rolling out mobile services in England and Macau, India, Israel,
Thailand, Ghana, Indonesia and Vietnam. The 3G network in
8

England and a fixed-line telecom running there on a fibre optic

network is also part of the VODAFONE Telecom business.
VODAFONE Telecom is built on a high-growth strategy focused on
mobile telecommunications services markets with economic
prospects and good demographics. A number of VODAFONE
Telecom markets such as India remain significantly under penetrated
and offers significant opportunities for future growth. In other
markets such as England and Israel, mobile phone penetration is
higher but customers are very eager to adopt new services and
applications, offering growth prospects in providing technologicallyadvanced value-added services.

Overview
Name of the company

Vodafone ltd.

Size of the unit

Large Scale Unit

Form of organization

Multinational co.

Web site

www.vodafone.in

Year of establishment

1984 in England

Stage of product

Maturity

Name of the service

Post paid cards

Prepaid cards
Short Message Service
Voice mail services
Vodafone power service

Through continuous innovation, VODAFONE promises to

liberate, stimulate customers from the shackles of time and
spaces
10

History & Development of the company

Vodafone Limited is a leading international corporation
committed to innovation and technology with businesses spanning
the globe. Its diverse array of holdings range from some of the
world's biggest port operators and retailers to property development
and infrastructure to the most technologically-advanced and
marketing-savvy telecommunications operators. Vodafone reports
turnover of approximately UK 242 billion and UK 124 billion for
the year ended 31 December 2006 and for the unaudited results for
the six months ended 30 June 2007 respectively With operations in
56 countries and over 220,000 employees worldwide, Vodafone has
five core businesses - ports and related services; property and hotels;
retail;

energy,

infrastructure,

investments

and

others;

and

telecommunications.
Vodafone's achievements include being:

The world's leading port investor, developer and operator with 44

ports across Europe, the Americas, Asia, the Middle East and Africa.

A pioneer of mobile multimedia communications with the launch of

third-generation mobile phones and networks.

A visionary and international telecommunications operator through

Vodafone Telecommunications International Limited which provides
mobile phone networks and data services in nine dynamic markets in
Asia, the Middle East and Africa.

11

VODAFONE Whampoa Limited is among the largest

companies listed on the main board of the England Stock Exchange.
Flagship

companies

include

VODAFONE

Port

Holdings,

VODAFONE Whampoa Properties, A.S. Watson, Cheung Kong

Infrastructure and VODAFONE Telecom.
VODAFONE dates back to the 1800s and while its operations
now span the globe, it continues to remain based in England.
VODAFONE's executives and staff are a multicultural mix as
diverse as the reach of the corporation's operations.
VODAFONE has a strong commitment to the highest
standards of corporate governance, transparency and accountability principles which have been recognized by the receipt of numerous
awards and commendations.
Landmark buildings in the Group's portfolio include the 62storey Cheung Kong Center in the Central district of England, the
Oriental Plaza in Beijing, and The Center in Shanghai. Prestigious
residential properties in the United Kingdom include Royal Gate
Kensington, Belgravia Place and Albion Riverside. Other holdings
include a stake in the Pacific Century Place Marunouchi office and
hotel towers beside Tokyo Station and a beach and golf resort in the
Bahamas.
The Group, together with Cheung Kong (Holdings) Limited,
has set up a joint venture company, Harbour Plaza Hotel
Management (International) Limited, to operate and manage hotels
under the portfolio of the VODAFONE Property division.

12

Achievements & Accreditations

1. VODAFONE Essar Limited, VODAFONE Mobile Services
Limited, Fascel Limited, VODAFONE Telecom East Limited,
VODAFONE Essar South Limited, Aircel Digilink India Limited
and BPL Mobile Cellular Limited (jointly hereinafter to as
VODAFONE) shall use reasonable endeavors to check the accuracy
of the information published on its Site. VODAFONE and any other
VODAFONE product or service name referred to on the
VODAFONE website are trade marks of VODAFONE Essar
Limited.
2. Content (information, communications, images and sounds
contained on or available through VODAFONE) is provided by
VODAFONE, its affiliates, independent content providers and third
parties. The contents of VODAFONE are copyright VODAFONE
its affiliates, independent content providers or third parties. All
rights reserved. The contents of VODAFONE
reproduced,

modified,

transferred,

distributed,

cannot be
republished,

downloaded, posted or transmitted in any form or by any means

including but not limited to electronic, mechanical photocopying or
recording without the prior written permission of VODAFONE
Essar Limited. You agree that the material and content contained
within or provided by VODAFONE is for your own personal use
only and may not be used for commercial purposes or distributed
commercially.
3. VODAFONE will use its reasonable endeavors to maintain
VODAFONE in a fully operating condition. It is not responsible for
13

the results of any defects that exist in VODAFONE You should not
assume that VODAFONE or its content is error free or that it will be
suitable for the particular purposes that you have in mind when
using it. VODAFONE reserves the right to make subsequent
changes to it, and services may be modified, supplemented or
withdrawn.
4. It is a condition of us allowing you access to the information on
VODAFONE that you accept we will not be liable for any action
you take relying on the information on VODAFONE. VODAFONE
will not be liable if your use of materials or information from
VODAFONE results in the need for servicing, repair or correction of
equipment or data, you assume any costs relating to the above.
VODAFONE reserves the right to charge for access to certain
information on VODAFONE. VODAFONE will inform you where
a charge will be incurred by you for accessing certain services or
information on VODAFONE.
5. If youre PC does not support relevant technology including but
not limited to encryption you may not be able to use certain services
or access certain information on VODAFONE.
6. You may not mirror any material contained on VODAFONE on
any other server without the prior written consent of VODAFONE
Essar Limited. Any unauthorized use of the contents of
VODAFONE either under this clause or clause 4 above may be in
breach of copyright laws or trademark laws.

14

7. You acknowledge that VODAFONE has no control over and

excludes all liability for any material on the Internet which can be
accessed by using VODAFONE Neither can we be deemed to have
endorsed the content.

8. By submitting any material to us via the VODAFONE website,

via email or otherwise, you do so in the knowledge that
VODAFONE may copy, modify, distribute or create a derivative
work from that content in any form. You warrant that the material is
fit for publication and agree to indemnify us if any third party takes
action against us in relation to the material that you submit. You
warrant that you believe VODAFONE may publish the material you
submit and/or make use of it or any concepts described in it in our
products or services without liability and you agree not to take
action against us in relation to it.

9. In a few areas of VODAFONE we may ask you to provide

personal information that will enable us to use the information you
provide us with to keep you informed of our latest products and
services after your visit to VODAFONE The personal information
will be used in accordance with our online privacy policy.
10. You agree not to cause, nor knowingly allow others to cause,
any

nuisance,

annoyance,

or

inconvenience,

whether

to

VODAFONE or any of its customers or users of VODAFONE by

any means. You also agree not to use VODAFONE to transmit or
15

post any material which is defamatory, offensive or obscene or

menacing character or which may in our judgement cause nuisance,
annoyance, inconvenience to VODAFONE, or any other person or
which is illegal. You will not use VODAFONE such that you would
cause the whole or part of VODAFONE to be interrupted, damaged,
and rendered less efficient or impaired in any way.
11. The service is accessed via the World Wide Web which is
independent of VODAFONE and VODAFONE. Your use of the
World Wide Web is solely at your own risk and subject to all
applicable national and international laws and regulations.
VODAFONE have no responsibility for any information or service
obtained by you on the World Wide Web.
12. VODAFONE does not accept responsibility for any defects that
may exist or for any costs, loss of profits, loss of data or
consequential losses arising from your use of, or inability to use or
access or a failure, suspension or withdrawal of all or part of the
service at any time. VODAFONE excludes all liability whether in
contract, tort (including liability for negligence) or otherwise for the
accuracy, suitability, quality or completeness of any information and
the value and integrity of goods and services offered by third parties
over VODAFONE You acknowledge that we have no control over
and we exclude all liability for any material on the World Wide
Web, which can be accessed by using VODAFONE.

16

13. We may suspend or vary the whole or any part of the

service offered on VODAFONE for any reason, at any time at our
sole discretion.
14. VODAFONE reserve the right to vary the terms of this contract
from time to time, such variations becoming effective immediately
upon posting of the varied Legal Statement on VODAFONE By
continuing to use VODAFONE you will be deemed to accept such

17

Location of The Company

When a new business unit is to be established the main
decision to be taken about location of the industry. Location of
the unit is a vital factor to deciding the profitability of company.
There are many factor which are to be kept in mind while
selecting the location of the plant. It includes internal and
external factors. Even if promoters have best ability to invest
and have the effect management skills but if they dont take
care of location, it will decline prosperity of the company.

18

Types of Management Structure

Board of Directors
Production
Department

Marketing
Department

Finance
Department
Finance Manager

Manu. Dept.

Assembling
Dept.
Mkt. Executive

Supervisor

Supervisor
Employee

Worker

Worker

19

H.R.
Department
H.R. Manager

20

Company
Profile

21

Contents
Sr.

Particulars

Page No.

No.
1
2
3
4

World wide VODAFONE

Presence of VODAFONE a Cellular
VODAFONE The Brand
In the Pipeline

22

21
22
23
24

World Wide VODAFONE

VODAFONE is a leading global telecommunications and data
services provider operating with a high growth strategy in 17
countries. It is a dynamic and agile player with a strong track record
as:
VODAFONE started mobile business in 1983 in our home
market of England and now serves over 40 million customers. Our
array of telecommunications and data network offerings provides a
depth of technological knowledge and insight into emerging
consumer trends. This breadth of services in so many markets
around the world also allows our operations to exploit opportunities,
synergies and our critical mass in order to maintain our leadership
position. Our telecommunications and data infrastructure support
offerings in the areas of mobile telephony (voice and video based
multimedia), fibre-optic broadband networks, fixed-line services and
radio broadcasting

23

Presence

of

VODAFONE

Cellular
The biggest merger over took place in the history of wireless
telecommunication services. The first time ever, the Essar group
joined hands for working together. In the year 2006
VODAFONE

Cellular

operates

in

Andhra

Pradesh,

Chhattisgarh, Goa, Gujarat, Madhya Pradesh and Maharashtra

Mumbai and Delhi
VODAFONE Cellular is committed to achieving total
coverage.

Its

advanced

Cellular

network

build

up

helps

VODAFONE offer seamless coverage in over 1 towns and

unsurpassed highways coverage across all its circle of operation.
These include 23 districts from Andhra Pradesh, 53 cities across
Madhya Pradesh, entire Gujarat, 400 kms of highway across 85
towns and cities. It is the first cellular operator in India to offer
uninterrupted highway coverage across all its circle of operations.

24

VODAFONE The Brand!

Brand Name

:-

VODAFONE Ltd.

Brand Person

:-

ARUN SARIN

Brand Delivery

:-

World class Cellular Telephony

with value Added Services

Brand Presence

:-

In the state of Gujarat, Madhya, Bihar,

Pradesh, Maharashtra, Goa, M.P., U.P.,
Andhra Pradesh, Chhatisgarh, Delhi, H.P.

etc.
Brand Colour Significances

:-

* The White background : -

Youth & Energy

* Red Colour

:-

* Red Colour Text

:-

Energy

Solidarity

* The VODAFONE

:-

Brand Launch

:-

Innovation

22th August, 2007

A media spent of Rs. 40-42 crores in T.V advertisements, Print
ads, Murals, brand launch parties, P.R.Campaigns, in all a high
decibel and Discussed launch.

25

In the Pipeline
The current period is a very crucial one for all the cellular
operators in India, due to a simple reason of a cold cellular war
being on, internally within the competitors as well as externally to
be fought with the WLL and the TRAI. This being the gestation
period for the WLL cellular operator to be in the market has to
launch, innovate and improve their schemes on a more customer
friendly based, so that their clientele is intact. In such a situation
price crunches on outgoings, free incoming calls, free airtime, and
other innovated and users-friendly value added services are the only
options.
To be intact at what VODAFONE Cellular is today, also
requires carrying out any of the above options and thus the one
major plan in the pipeline, coming in within 7-8 months is to exceed
customer usage of cellular phones than landline users which
presently is 10 crores, compared to landline users of 4 corers.
Secondly to develop and synergies on such value Added
Techniques that are customer friendly and beneficial to the society.
Thirdly in the coming months they are planning to reduce the
cost of airtime, so that there is a benefit to the users.
A few more cell site launches, appointments of customers
convenience center, Retailers and distributors are in the pipeline,
which would be beneficial to all concerned.
26

Marketing
Department
27

Contents
Sr. No.
1
2
3
4
5
6
7

Particulars
Page No.
Importance of marketing Department
27
Organization Chart
29
Marketing Yesterday & Today
30
Advertising
31
4 Ps of marketing
37
Market Share
43
Competitors
44

28

Importance of Marketing Department

Marketing is the focus point of all business activities because
the objectives of all business enterprise are to satisfy the needs and
wants of the customers. Production and purchase has no meaning
unless a firm is able to market the goods and services. Nothing
happens unless somebody sells something. Marketing is the
distinguishing feature of business. A business is essential part from
all other human organization by the fact that it markets the product
or services. Marketing is the basic operative function of all business
firms. It serves on the basis of business planning and generates
revenue for the firm. Efficient marketing management is essential
for the survival and growth of every enterprise.
Marketing is a system of integrated business activities
designed to develop marketing plans and programs leading to the
satisfaction of customer wants.
Marketing department represents an important functional area
of business management efforts for the flow of goods and services
from the producer to the consumers.
Marketing department of the VODAFONE Cellular Limited is
a crucial part of its organization. The company can achieve its
subsidiary objectives along with the primary objectives with the help
of marketing department. It not only helps the company to achieve
the goals that are directly related to marketing department but also
helps in achieving the goals that are related to other departments of
the organization.
29

With the help of the marketing department VODAFONE

Cellular as a company has not be successful in gaining the sales
volume but also earned goodwill for itself. As a result of the efforts
made by the marketing department VODAFONE Cellular is
enjoying a prestigious position in the telecom industry.

30

Organization Chart
CMO
(Chief Marketing Officer) -Bombay

DGM (Marketing)
(Director General Manager) - Ahmedabad

Assistant
Manager
- Prepaid

Assistant
Manager
- Postpaid

Assistant
Manager (Value
Added Service)

31

Assistant
Manager
Outdoor
Marketing

Marketing Yesterday & Today

Business is changing at the speed of thought literally, as
across the globe, somewhere or the other; someone comes up with
something that revolutionizes the entire concept of business, as it is
understood then. To keep pace with these developments, marketing
has become more intricate and scientific than ever before. Today no
firm can afford to rest on past laurels and be complacent about its
market. Competition is more intense and cutthroat than ever before,
and the firm has to meet all these challenges, most in the form of
direct or indirect marketing strategies.
Yesterday was different, in the sense that firms that enjoyed a
good market reputation did not need to market themselves to their
consumers again and again. But today, times have changed. Keep
competition poses challenges that have to met and countered, and
the customers are more demanding than they were around 20 years
back. Past achievements are no longer a companys claim to
supremacy.
Earlier, marketing was confined to the narrow scope of
selling. But now, marketing is concerned with all activities aimed at
finding wants and filling them. The mantra followed the world over
is customer is the king. It is the customer alone who keeps the
business going and provides employment to people. If the current
trends were anything to go by, the future would only add to the
misery of unprofessional or pedantic forms. Only firms willing and

32

able to change according to changing market conditions and

consumer demands would thrive in the market.

33

ADVERTISING
The best advertising is done by satisfied customers
-Philip Kotler
Advertising can be defined as mass paid communication of
goods, services or ideas by an identified sponsor. It is paid
communication because the advertiser has to pay for the space or
time in which his advertisement appears in the recognized media
such as news paper, magazines, radio, T.V., Cinema film, posters,
etc. Advertising can create market for a new product. It is very
powerful tool for the creation and retention of consumer demand.
VODAFONE Cellular Limited spends more than 30% of its
profit in advertisement. It uses almost all media for its
advertisement.

VODAFONE

Cellular

Limited

does

its

advertisement through Lowe Lintas which is an advertising

agency. VODAFONEs advertisement is such that it informs guides;
protect buyers and helps in increasing the standard of living.
VODAFONE Cellular Limited use following Medias for
advertisement
Print Media: It gives advertisement in each and every newspaper,
magazines, and periodicals. The company also distributes calendars,
cards during Diwali, diary, pens, clocks, key chains etc. to Retailers,
customers.
34

 Posters: It uses printed posters which stick on the wall.

Banners: Company provides banners to each and every Retailer and
also to the Distributors.
Hoarding: The Company has done the use of hoarding at the major point
of cities in different parts of the country.
Glow Shine Board (GSB): It is an electric board which is given to each and every
Retailer.

35

Market Segmentation

What is market segmentation?

Market consists of buyers and buyers differ in one or

more respect. Market segmentation is a method for achieving

from limited marketing resources by recognizing differences in
the response characteristics of various parts of the market. In
simple words market segmentation is nothing but just diving
market into several groups.
There are mainly four types of market segmentation.
(1)

Geographic Segmentation

(2)

Demographic Segmentation

(3)

Psychographic Segmentation

(4)

Behavioral Segmentation

For Vodafone They produce only agriculture products

like ox operated drill, Tractor Operated Drill so for the
company main segmentation of their product is agriculture
products users farmers etc.

36

Channel of Distribution
It is a process through which the goods or consumer
from the producers. Distribution decision relates with moving.
Product available at a right place, in right time for the right
people.
Distribution channels are system of economic institution
through which a producer of goods delivers them into the
hands of their uses. After the production the producer has to
take decision how to do selling and distribution their products.
So, how a product reaches to the consumer from the producer
is called Channel of Distribution.

Manufacturing or Production
Direct Consumer

Dealer Court of (Gujarat)

Consumer

37

Pricing Policy
Pricing policy means to determination our product, at
how much cost it can be sold. The pricing policy of company
influences its sales to a large scale. Price is one element of
marketing mix that produces revenues the other element of
marketing mix is product cost. A wrong pricing decisions avoid
effects of all right decisions related to products.
When a unit take pricing decision they have to consider
such factor like taxes, expenses, Govt. policy, Profit etc. In
Vodafone Pricing is deciding as under:
Raw material cost + Wages of labour + Accessories +
Other expenses + Taxes + Profit = Price of a product.

38

After Sales Services

After sales services is the best part of the Vodafone. Because
they arrange a special department for that service. Means when any
customers buy a card of Vodafone after some days the after sales
service department is contact to the customer and asking them if
there any problems related to their product or not.
In short we can say once they sold their products to the
customers they are keep in touch with their consumers.

39

FOUR PS OF MARKETING MIX

Marketing Mix of a Company includes 7 Ps of marketing.
But generally they can be precisely describe under four major heads
viz. Product mix, price mix, promotion mix, and place mix. Product
mix answers the question as to what, when, how, how much etc. to
produce. Price mix answers the question as to the produce good
should be sold at what price. Promotion mix suggests the
promotional activities that have to be undertaken. While place mix
describe distribution modes and channels

1. Product Mix: The product is the most tangible and important single
component of the marketing programme. Product said to be the heart
of the marketing mix. The whole marketing programme is based on
the product.
It is said that nothing happens in our economy unless there is
a sale or purchase of product. Product is the sole of all over
marketing activities without a producer; marketing cant be imaged
through which the transaction takes place.
It gives life to all marketing programme. So main
responsibility of management should be to know its product well in
the book of Philip Kotler there is a sentence The first
40

commandment in marketing knows their consumer the second is to

know their product.

It is not necessary that product must be physical it may be

service product and other but main theme is that it is capable of
delivering satisfaction of wants or need.
In VODAFONE Cellular Limited, there is only one product
i.e. sim card through which company provides services.

What is Sim Card?

The mobile phone is widely used in the markets now a day. It
is just like a necessarily of a businessman or any kind of
professional person. A sim card is one type of card which is fixed on
the backside of a mobile phone. Any sim card service providing
company in India is not manufacturing sim card but they import the
sim cards from different countries. The VODAFONE Cellular
Limited Company imports the mobile sim card from Switzerland.

2. Price Mix: Pricing the product is one of the important elements in

marketing mix. It is the most critical decision in marketing
management, so it is said that Success or failure of business
depends upon its product price policy. Price is the exchange value
of the goods or services in terms of money. The exchange value of
product is called price. The decision regarding pricing must be taken
after considering every aspect of business and while fixing the
41

prices, not on profit but also various factors i.e. social responsibility
also to be considered.

VODAFONE Cellular Limited determines the price in such a

manner as to offer a reasonable amount of profit to the
manufacturer, a reasonable remuneration to the middlemen and the
maximum satisfaction to the consumers. It has found that a price
kept by VODAFONE Cellular Limited is much lower and quite
reasonable in comparison to its competitors.
A company can pursue any of the six major objectives by its
pricing which are as follows:
1. To survive in the market.
2. Maximize current profit
3. Maximum current revenue
4. Maximum sales growth.
5. Maximum market skimming
6. Product quality leadership.
VODAFONE has adopted many methods for pricing which
are as follows: Penetration Pricing: This method is generally adopted at the time when the
company has just entered into the market or newly started company

42

uses this method. In this method the product price is lower then the
substitutes in the market through which customers are attracted.

Psychological Pricing: Sellers should consider the psychology of prices in addition to

their economics. Many sellers believe that the prices should end in
odd numbers for such company prices dominate in the newspaper all
in odd numbers i.e. product price is Rs. 299 in stead of Rs. 300.
Skimming Pricing: This method by which company can attract the customer
mostly this pricing methods is always used in the time of festival
such as Diwali offer, Navratri offer etc. VODAFONE takes benefit
of all festival because they placed skimming price for short period
on Navratri and Janmastami.
3. Promotion Mix: Promotion plays an important role in stimulation of demand
and sales of the product. Promotion is basically communication
process by which producer of the product or service draw attention
of the consumer for prospective consumer towards their products.
Sales Promotion: Sales promotion is a key ingredient in marketing campaigns.
Where advertising offer a reason to buy, sales promotion offers on
43

incentive to buy. Sales promotion includes tool for consumer

promotion (coupons, etc.) Trade promotion (price-off etc.) etc Sales
promotion tools are used by most organization, including
manufacturing, distributors, Retailers trade associations and non
profit organization.

4. Place Mix: Place mix is also known as Distribution Mix. This stands for
the various activities the company undertakes to make the producer
easily available to the customer. In todays economy the producer
customer are separated by vast distances. Place mix is nothing but
marketing activities in which movements or flows of goods or
services are there from primary producer to ultimate consumer. It
includes Distribution Channel: Distribution Channel: Channels of distribution generally depend upon the nature of
product, volume of sales and trade practices adopted. The set of
marketing institutions participating in the marketing activities which
involves the movement of all goods and services from the primary
producer to the ultimate user or consumer is called the distribution
channel. In modern era, with the increase in size and production of
the unit, it is very difficult to sell the products directly to the
consumer so they have to adopt, distribution channel with
middlemen like wholesalers, distributors, Retailers, etc.

44

DISTRIBUTION CHANNEL
Company

Distributor

Dealer

Salesmen

Retailer

Customer

45

MARKET SHARE IN GUJARAT

Company
VODAFONE
IDEA
AIRTEL
RELIANCE
BSNL
TATA INDICOM

Coverage (%)
30
15
20
10
15
10

46

COMPETITORS
Poor firms ignore their competitors; average firms copy their
competitors; winning firms lead their competitors.
Today in this competitive world VODAFONE has got many
competitors which are as follows: -

AIRTEL

IDEA

BSNL

RELIANCE

TATA INDICOM

47

Finance
48

Department
INTRODUCTION

Something must be direct the how of economic activity and

facilities its smooth operation. Finance is the agent that produces
this result. Nature of financial management refers to its functions,
scope and objectives.
Financial management is that managerial activity which is
concerned with the planning and controlling of the firms financial
resources. In modern times finance is the life-blood of the business.
No matter, whether the business is big or small financial is the
equally important. The financial resources must proper planned and
control in order to achieve the best out of available. So, financial
resources should be very properly.

49

ORGANIZATION CHART
Vodafone
CHIEF EXECUTIVE OFFICERS

FINANCE MANAGER

ACCOUNTANT

ASSISTANT ACCOUNTANT

50

FINANCIAL PLANNING
Generally, financial planning means deciding in advance, the
financial activities are to be carried on to achieve the objective of the
firm. In broader sance, in the words of Walker and Boughn as;
financial planning includes the determination of firms financial
objectives, formulating and promulgating financial polices and
developing and procedures.
Financial planning is necessary to achieve both long term and
short term objectives. A sound financial planning includes how
much need of funds for both the terms. Then from where they are to
be received and utilized.
Vodafone would evaluated different proposal placed before
them and selects the best out of them. It estimates how much capital
is going to be required for various proposals and how much is the
return on the capital employed. The financial manager lays down the
estimate on the capital of cash per week, per month and per year.

51

CAPITALIZATION
At the time of incorporation of any business, it is the first
problem before the promoters to decide how much capitalization
should be made in a business. The amount of capital of any time
should not exceed nor less than the amount required. So, it is
necessary to have proper capitalization for the success of the
enterprise. But Gerstenberg defines it as;
The total accounting value of all capital regularly employed
in business, it includes owners capital, borrowed capital and any
other sources.
Thus term includes;
1. The value of ordinary and preference shares
2. The value of all surplus earned and capital
3. The value of bonds and security still not redeemed
4. The value of long term loans
However the modern view includes short term funds or
liabilities under the firm. It should be properly capitalized.
Vodafone issue shares. So, all these terms do apply.
52

CAPITAL STRUCTURE
Capital structure is the permanent financing of the firm
represented by long term debt, preferred stock and net worth.
Capital structure refers to its capitalization. Company
procures funds by issuing various types of security i.e. ordinary
shares, preference shares, bonds and debentures. Before issuing
securities the unit should decides what kind of securities should be
issued? A balanced capital structure means and ideal combination of
ownership capital and borrowed capital.
Vodafone issues shares and it has reserves or surplus. The
firm has taken loans from financial institutes. So capital structure of
the firm consists ownership capital as well as borrowed capital.

53

FINANCIAL LEVERAGE
Financial leverage is also known as trading on equity. In other
words, the effect on earning by the use of fixed cost securities is
called financial leverage. It is the ratio of return on share holders
equity and the net rate of return on total capitalization.
The degree of financial leverage can be calculated at any level
of operating profits as follows.
Financial Leverage = Operating Profits or E.B.I.T.
E.B.I.T. Interest or P.B.T.
Financial leverage is followed by this firm as shares and
debentures are issued.

54

FINANCIAL POSITION
PERTICULERS
Capital
Reserves
Loan borrowing

Rs.
3,460,811,000
1,481,000
0000000000
3,462,292,000

TOTAL

Investment in fixed assets

Investment in current assets
Total investment

Rs. 5,54,754,000
Rs. 1,69,423,000
Rs. 7,24,177,000

55

56

Personnel
Department
INTRODUCTION
For survival growth of organization it requires better
combination of Men, Money, Machine and Material. From these
elements Men is most difficult and challenging element. In general
sense, management of human resources in an organization is called
personnel department.
In present Personnel department is essential due to complexity
of HRM in an organization. Personnel can be defined in the words
of Pigors and Hynes as
Personnel

management

is

method

of

developing

potentialities of employees so that they get maximum satisfaction

out of their work and give their best efforts to organization.
In the case of Saurashtra Rachanatmak Samiti it has
personnel; manager to manage the HRM of their sector. Thus, it has
a well established personnel department for managing their workers
and employees.
57

ORGANIZATION CHART
Vodafone
BRANCH MANAGER

PERSONNEL MANAGER

STAFF MEMBER

TRAIN
AGENT

AGENT

58

NEW COMER

MEN POWER PLANNING

Men power planning is primary and essential function of
HRM. It is initial stage to get right type and right number of
personnel in an organization. As human resources is most valuable
among

all

capitals.

It

should

be

planned

carefully

and

systematically.
In the words of Coleman Bruce Men power is the process of
determining men power requirements in order carry the integrated
plans of the organization.
In regard to personnel department of Vodafone is very
conscious because it is through out depended on HRM. It takes into
account the facts and of present work forces on the basis of such
available information of HRM.
1.

TOTAL EMPOLYEES:

165 (near about)

2.

SALARISE PERSON:

25 (near about)

59

3.

3 SALARISED AGENT:

140

4.

FOREMEN:

12 (near about)

Men power planning thus enables the organization to make

additions or deductions in about employees. For that it makes both
short term and long term men power.

RECRUITMENT, SELECTION AND

PLACEMENT
1) RECRUTMENT:
The following factors affecting recruitment;
a) Size of organization.
b) The employment condition in the community where the
organization is located.
c) Working condition wage and salary and other benefits.
In Vodafone they have usual three methods of recruitment;
1. Direct method
2. Indirect method
3. Third party
If they want highly learned employees than they, apply
indirect method. And if they want semi skilled labour than they, ask
to their worker to ask their relative to apply for job.
60

2) SELECTION:

Second stage after having adequate number of application for

particular job is selection.
In short, it refers to choice best condition out of available. In
fact selection process begins with initial screening then follows
different types of test and interviews.
The personnel department of Vodafone follows a perfect
selection procedure.
After receiving application, first of all takes preliminary
interview and employment test. Personal interview and check
reference of applicants. More ever they give importance more to
mentally fitness of person. Lastly they would prepare list of final

61

applicants who have crossed above hurdles and suitable for jobs.
Finally they have been given appointment letter.
As far as unskilled labors are concerned they take advice from
present workers who can suggest the names of their friends and
relatives for selection in job.

3) PLACEMENT:

Once a candidate select for a job he should be placed on

suitable job. Placement can be described as the determination for
the job to which an acceptable is to be assigned and his assignment
to his job. Sometimes employees are put on probation period.
In Vodafone sometimes selected sub ordinates employees
are placed job for two or three months depended on nature of the job
while there would be no testing in case of experienced and salaries.

62

TRAINING AND DEVELOPMENT

PROGRAMME
Training can be described as learning sequence of
programmed behaviors. It increases knowledge and skill for doing a
particular job. While development covers not only improve the job
performance but also bring growth of personality maturity and self
actualization.
1) ON THE JOB:
In this method employees are coached and instructed by
senior workers. Here, they have given basic training for fifteen days
with basic salary and adopt this method of training mostly for
operational level.
63

2) OF THE JOB:
In this method training is a part from job place. In recent years
it becomes more popular so, trainees get training in a classroom of
company by special instructor. It includes seminars, conferences,
case studies etc. Vodafone using this method only for top level
and middle level.

WAGES AND SALARY

ADMINISTRATION
As every factor employed in a enterprise gets rewards for his
combination among this factor human resources get contribution in
form of monitory terms. So, proper administration of their wages
and salaries become a necessity.
The priority objective of wage and salary administration is to
establish salary structure. Second one is to maintain acquisition of
labour cost structure. Sound wage policy should contain both the
objective. It is affected by factors like demand and supply of labors,
labour rate in market etc.
64

Here, in Vodafone follows time wage system which is most

common and oldest system? Under this system workers are paid
according to work done by in certain period. On an average
organization Pays 40000-45000 to Sales manager and ass. Manager
is paid near about 60000-100000 and agent are paid off commission
cum incentive.
Vodafone pays total salary at the end of month and any
worker can withdraw half of salary.

PERSONNEL RECORDS
A record is a piece of writing with provides ready information
and preserves evidence for future use. Therefore personnel record
means maintenance of information regarding personal. Personnel
record helps personnel manager in decision making. He can decide
the demand and supply of personnel in an organization.
In Vodafone personnel maintain files of each and every
employee for their presence, leave, bonus, promotion, performance,
salary etc. is mention. The data regarding each employee is fed in to
computer and store for future reference.
65

TIME KEEPING SYSTEM

Every company has to keep watch on employees weather
they come in time or not. This directly affects to the productivity of
each employee and so production.
So, it becomes necessary to get enough work from workers in
proportion of their wages and salaries. In Vodafone office time is
as under.
SHIFT

WORKING TIME
66

HOURS

RECESS

1
2

9 a.m. TO 1p.m.
2 p.m. TO 6 p.m.

4
4

Half An Hour
Half An Hour

EMPLOYEE BENEFITS AND SERVICES

Employees benefits and services provided by any company is
very useful not only from the view point of employees, but also
from company. The requirement of providing such kind of facilities
and services arises from social responsibilities. This is an important
tool for any company to motivate its employees;
1. BETTER WORKING CONDITION :
The management of this organization has given careful
attention towards proper working condition for its employee. It
67

includes ventilation, drinking water, light, air etc. a special care is

taken for better working condition as possible as best.
2. BONUS AND FESTIVAL:
Bonus is given to each employee during Diwali. More over all
are to be given sweets on festival like Dashera, Diwali as a gift.
3. PROVIDENT FUND SCHEME:
As per government rules, provident scheme compulsory for
organization, for that 8% of basic pay of employees and same
amount by company paid to employees account. After retirement
the amount accumulated to provident fund account is given to him
as per rules.

4. OTHER FACILITIES:

Saurashtra Rachanatmak Samiti has given residential

facilities to the employees. In addition to it, benefits like medical
allowance, leaves and facilities like canteen, safety equipment, are
provided to them by Vodafone.
The management of VODAFONE is very conscious for
welfare of its employees. They think that more ever they spent on
employee is one kind of investment. It will be benefited through
68

HRM. The reason why they spent is benefited by increased

productivity, quality and loyalty of workers.

69

Future
Plan
Future Plans
VODAFONE Cellular Limited has only one future plan and
that is to excel in its field and conquer the market. Today there are
more then 3 crores cellular phone users and the people who use the
land line are around 7 crores. There is a huge gap to be bridged and

70

the only and future term plan of VODAFONE Cellular Limited is to

exceed the land line users.
Secondly their long term plan is to be consistent in the policy
adopted by them for the purpose of outright excellence in their field.
The policy of quality coverage, subsistent rates and a genuine
customer convenience and care are high in standards presently and
VODAFONE Family feels that if these are the factors that are
maintained at a consistent level then the company will be able to
meet all its future plans and goals.
Thus VODAFONE Cellular Limited has no plans in particular
except to lead the market in the crucial times of Cellular wars, and
out rightly exceed the usage of land lines by wireless cellular
telephones and maintain their standard of quality coverage.

71

SWOT
72

Analysis

SWOT ANALYSIS

1.

STRENGTHS: DISTRIBUTION NETWORK: VODAFONE Cellular has a wide spread network and to
completely cover such network, it has a predetermined channel
which covers every nook and corner of the city so that all masses are
covered. With distribution network and an equal capacity to canalize
makes VODAFONE Cellular strong in its own.

2.

LIVE WIRE PROFESSIONALS: For every job specification in VODAFONE Cellular Limited
there is employed a live wire professional who is best suited to his
position and responsibility when it comes to skill, talent,
qualification and perfection. Having people with such zeal and
enthusiasm, professionalism comes as strength.

3.

PROACTIVE CUSTOMER CARE: Not only VODAFONE Cellular Limited is strong from within
but when its comes to external forces it proves its worth. Fabulous
customer commonsense centers are established to take care of any
issue that may come as a problem to the mass proactive customer
care is one of the assets of the company while telecustomer care
comes as an icing to the cake.

73

4.

TELECOM FOOTPRINTS: VODAFONE Cellular though establish recently has set its
foot in major cellular markets, be its markets of masses or
geographical markets. The important states of India all have
VODAFONE Cellular footprints with them. This is strength indeed.

5.

PROMOTERS SYNERGY BETWEEN CORPORATES: First time in the corporate history ever, has the two big heads
joined hands for a merger with the telecom giant VODAFONE
corp., U.S.A. This is strength itself.
PARENT VODAFONE i.e. VODAFONE is among the top
ten brand of the globe, which process as strength to organization.

74

WEAKNESSES: 1.

FUNDAMENTAL CASHES: As said earlier, corporate giants across the globe Tata, Birla,
AT&T have joined hands to form VODAFONE Cellular Limited.
They all being supreme in their field, have their own perceptions,
these perception ideas and means are found to clash when they meet.
Thus this may be proved as a hindrance to the company and comes
out as a weakness.

2.

DELAY IN DECISION MAKING: As the three partners are huge corporate, the flow of
decisions, actions and understanding are channelized through a long
route. This may cause delay in any decision to be taken and which
might not be good for the company.

3.

TELECOM FOOTPRINTS: VODAFONE Cellular is only present in 7 states out of highly

numbered 26 states which show that geographically VODAFONE
Cellular is not able to cover entire state. This leaves behind weak
telecom footprints of the company.

75

OPPORTUNITIES: 1.

Lowest telecom Density in the world.

2.

Lowest call charges in the world as well as in India.

3.

Opportunity to outsmart the landlines connections, through the

usage of Mobile telephony.

4.
5.

Growth possible through Acquisition.

VODAFONE Cellular is established only in 16 states. It has
still got a scope to establish itself in the remaining state and
hold it foot.

76

THREATS: 1.

VOLATILE REGULATORY MARKET: Day in day out there is various rules and regulations that are

coming in the market and which on highly volatile in nature. Price

fluctuation, are one of them competitors come in and go out in a
jiffy, and in such a situation to hold an upright place is difficult in its
even words and thus proves a threat to excrescence of companies.
The same has been observed by VODAFONE Cellular.
2.

PREDATORY PRICING FROM WILL OPERATORS: With ongoing Cellular wars and advent of WLL, Cellular

operators are now into an artificial cover of threat. The threat of

pricing policies, threat of customers care etc. is going high as WLL
have been setting its foot with predatory pricing policies to
unchannelize Cellular operators.
3.

EXPANSION INVESTMENT THRET: In order to survive in the market, VODAFONE Cellular has to

update its technologies, and this all expansion requires huge cost
pull expenditure and this increase costs in leaps and bounds.

77

Suggestion
78

SUGGESTION
The highly professionalized management and totally modern
marketing approach are the basic key factors behind the success of
VODAFONE Cellular Limited. The management of VODAFONE
Cellular Limited is very perfect and nice. As per companys perfect
management there is no need to give any suggestion to the company
but I observed that each and every person in this company is hard
working which one of the positive points of this company is.
According to my observation, company spends lots of amount
on advertisement.

79

80

Contribution

81

CONTRIBUTION
VODAFONE Cellular Limited at each and every step of its
development has tried to fulfill its social responsibility along with its
objectives of profit. It has been following the policy and principle
which ensure economic development.
During the time of earthquake in Gujarat VODAFONE
Cellular Limited has constructed up many mobile PCOs.

82

83

My Observation

84

My Observations
VODAFONE Cellular Limited made me observe many things
while on my survey of 100 Retailers in different areas. There were
various reactions and gestures which, I observed through people.
Few are some of them: AMBIENCE & ATMOSPHERE: Retailers, I visited were friendly and helpful. As it progressed
with my survey they were highly co-operative and anxious to help
me out with my findings.
PRICING STRUCTURE: Retailers insisted on a consistent stable and substantiate
pricing policy as they were really frustrated with the constantly
changing price in the mobile world.
PERSONAL APPROACH: Retailers always want the executives coming to their places
and making them understand about the new scheme and plans,
which are going to enter market.
SALESMEN SERVICE: Retailers are quite satisfied with the salesmen service.
Whenever the retailers are in need of SP, RV, etc. when they make a
single call to salesmen then order will be made available by
salesmen with in an hour.

85

86

Conclusion
CONCLUSION

VODAFONE Cellular Limited is one of the leading service

providers present today in the state of Gujarat. It has been indeed a
pleasure working for VODAFONE Cellular Limited, though as a
part of my training. I have conducted my project on Retailers
Network Management of VODAFONE Cellular Limited. As student
trainees, I have learnt immensely.
VODAFONE family is very co-operative, friendly as well as
professional and practical in their approach. They have been guiding
me whenever I viewed an obstacle. They have been of great help
when it came to providing information to me about themselves and
their organization.
I wont be exaggerating, if I say that this project has helped me
develop me as a person because while conducting my survey I have
met 100 people whose nature was different from one another and
each meeting in itself have been a memorable experience.
I would also like to say that this project has made me known
the realities that exit in the market today. I have also known the
technicalities involves while finding the right sample for my survey.

87

This project I have learnt a lot about Survey etc. which has me
approach the real world in quite an extent. Also this project has
helped me have a more deepened knowledge about the cellular
phone market, on going cellular wars etc.

VODAFONE Cellular Limited is a company who has grown

by leaps and bounds in these two years and has emerged itself into a
new beginning. Under the report, I have researched about Retailers
of VODAFONE Cellular Limited the findings of my survey say that
VODAFONE today is the leader in the market and is still growing.
VODAFONE Cellular has got a very bright future as the
demand for cellular services are increasing day in and day out. Thus
I conclude my report wishing company all the very best for their
future and I would like to thank all people concerned who helped me
make this project come true.

88

Bibliography
89

BIBLIOGRAPHY
1. Marketing Management:
- By Philip Kotler
2. Web site:
-

www.vodafone.in
www.vodafone.com

90