Professional Documents
Culture Documents
Page 0 of 79
Submitted By:
Department of Management
State University.
Page 1 of 79
STUDENT DECLARATION
This is to certify that I have completed the Summer Project titled To study the rural promotional
And penetration activities of Vodafone under its MGMD (Mera Gaon Mera Desh) project in
Vodafone Essar Digilink Limited (A Vodafone Essar Company). This is an original piece of
work & I have not submitted it earlier elsewhere.
Date:
Signature
Place:
Name
University Enrollment No :
Page 2 of 79
To the best of my knowledge and belief the data & information presented by him in the project
has not been submitted earlier.
Signature
Page 3 of 79
ACKNOWLEDGEMENT
I am extremely thankful to Mr. Mehndiratta; Zonal prepaid Head of Zone-1 Haryana who gave
me this opportunity to undertake this project. Without his directions and permissions I could not
have undertaken this project.
I would like to thank the Relationship Managers Mr. Chibbar and Mr. Sharma, for their time to
time guidance and support; it was of great help in knowing the whole process and background of
this project.
I would also like to thank all the M.Ds, A.Ds, P.S.Rs, D.S.Es and other staff I have worked with,
for their cooperation and support.
In the end I would like to thank my Project guide Ms. Bharti for giving remarkable
contributions and help in making this Project report and also for throwing a good insight at the
practical aspect.
Page 4 of 79
EXECUTIVE SUMMARY
This project is based on telecom sector as the telecom sector is growing at a very good pace. The
telecom company where I did my summer internship project is VODAFONE. The reason behind
selecting Vodafone is its various schemes in product & service category & also its future policies
where the company is coming out with lots of new & affordable schemes for its customers.
Vodafone is a UK based company & has presence all over the world. The company was started
in the mid 70s & since then it has never looked back. The products & services offered by
Vodafone are of a very high quality & also at affordable rates. They have various plans for
various customers depending on the status of the customers.
Vodafone has various product categories ranging from internet, mobile phones, headsets &
headphones & many more. In the service category it has telecom services and internet services
which include broadband internet & PC internet services. Vodafone also came out with cell
phones for the poor which were a part of their social responsibility toward the poor class people
of the society. The phones were available in the range of Rs. 750 - Rs.1500 which was one of the
successful strategies of Vodafone.
According to the June 2010 data VODAFONE Essars market share is 23.89% and is just after
Bharti with 29.92%.
This report is based on the collective work of two months on a project called MERA GAON
MERA DESH, where we did our research on the MFS (Mera Gaon Mera Desh focus sites) to
increase our subscription rate. During this period we visited these sites and villages which come
under these sites and got response from the retailers and shopkeepers there, regarding their
experience with Vodafone as a user and selling our products there and for promoting the
Vodafone.
Page 5 of 79
Among those whose response was taken includes Kiryana shops, medical stores, mobile repair
shops, std/pco , tailor/parlors , etc. Random stratified sampling method was considered to be best
suited to fulfill the project. A structured questionnaire was constructed in order to measure the
responses of respondents on suitable scale. The data of sites was given by Vodafone and the
primary data collection from retailers was done through personal visits.
Apart from this questionnaire our main task was to tell them the benefits of selling recharges and
solve their queries and to convert them in our UEOs (Unique E-top Outlets) and UAOs (Unique
Activation Outlets) by filling their ACT forms and providing them with Recharge coupons and
E-top sim. Also to give them posters and banners for promotion and advertisement in the form
of new outlet kit.
Page 6 of 79
List of Tables:
Page No.
14
29
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
79
80
81
Page No.
List of Charts:
Chart-2.01 History of telecom in India
Chart-2.02 GSM players in India
Chart-2.03 CDMA players in India
Chart-2.04 World Economic Pyramid
Chart-4.01 Type of outlets
Chart-4.02 Vodafone Users
Chart-4.03 Experience with Vodafone
Chart-4.04 Reason for experience
Chart-4.05 Customer care service
Chart-4.06 Roaming facilities
Chart-4.07 Vodafone thank you card
Chart-4.08 Telecom business selling recharges
Chart-4.09 Idea about telecom business
Chart-4.10 Interested in selling Vodafone
Chart-4.11 Want to sell Vodafone coupons
Chart-4.12 Want to sell new sim
Page 7 of 79
15
16
17
34
48
49
50
51
52
53
54
55
57
58
60
61
Table of Contents:
Chapter 1
Page no.
Introduction
1.1
1.2
1.3
Chapter 2
Company Profile
2.1
2.2
Chapter 3
Methodology
3.1
3.1.1
3.1.2
3.1.3
3.1.4
Research Design
Type of Research
Population/Universe
Sample Size
Sampling Technique
37
38
38
41
41
3.2
3.2.1
3.2.2
3.2.3
Data Collection
Primary and Secondary data
Instruments for Data Collection
Method for Data Collection
42
42
43
Chapter 4
Data Analysis
45
Chapter 5
62
Chapter 6
65
Chapter 7
Recommendations / Suggestions
67
Chapter 8
Conclusions
70
Bibliography
8
9
10
12
31
72
Annexure.
1. Questionnaire.
2. New outlet data.
Page 8 of 79
74
77
INTRODUCTION
Page 9 of 79
CHAPTER 1
INTRODUCTION
1.1 Purpose of the project.
The basic purpose of the project MGMD is to focus on the areas where the subscription base
or the customer base is low. All the customers and retailers were tracked on the basis of CSI
(Cell Site Intelligence).
Through this project companys motive is to increase the customer base in these areas over
their competitors by opening new outlets in these areas who can sell Vodafone recharges and
new connections.
Another purpose of this project is to open outlets everywhere so that customer will not face
problems in finding Vodafone recharge and he can get his mobile recharged in 5 min.
anywhere.
By visiting the MGMD villages personally, importance was given to get the retailers
response as a user about Vodafone services and to make them start selling Vodafone
recharges there on commission basis, so that subscription rate will increase there and the
customers nearby will not face problems in getting recharges and new connections and they
will not be any need for them to go far places to get their phones recharged.
Also through this awareness about TYC( Thank you card) was done so that they will visit
Vodafone stores and mini stores and can get free gifts from there.
Pamphlet distribution at main locations in villages through van.
Page 10 of 79
1.2 Objective:
The objective of the project and research is to know about the view of retailers in the
villages as a user about the Vodafone and satisfy their queries and make them
understand the telecom business of selling the Recharge coupons, Values and New
connections for the Characteristics low income and rural consumers.
With the help of the questionnaire we were able to know their status and their
problems in selling our recharges. With the help of our understanding and companys
policies and information we solved their queries and convert many of them into our
outlets.
To increase our village wise DPL i.e., Dealer per lakh. This shows the presence of
Vodafone in the market and convenience for users.
Page 11 of 79
Though this report is totally devoted to the work done for the Vodafone, but it can work for
other companies as well if they want to penetrate the rural villages and want to increase their
subscriber base there.
To penetrate the market of rural villages companies will have to set up their outlets to sell
them and for that they will have to know the lifestyle and issues among retailers in rural
about their understanding of this field.
So the scope of this research is for all telecom players. The questionnaire is designed to
know about the people of villages and their problems and issues in starting telecom business
which can be of help for other telecom companies as well.
In order to cater to rural consumers, it is important to understand and respect their livelihood
and for promoting yourself activities like pamphlet distribution, Muniyadi, TYC
distribution, personal Visits, direct and easy interaction , etc all are part of rural marketing
which have scope in other companys promotion as well.
Page 12 of 79
COMPANY
PROFILE
Page 13 of 79
CHAPTER-2
COMPANY PROFILE
2.1 About the Company.
Indian Telecommunication Industry
The Indian telecommunications has been zooming up the growth curve at a feverish pace,
emerging as one of the key sectors responsible for India's resurgent economic growth.
India has surpassed US to become the second largest wireless network in the world with a
subscriber base of over 391.76 million, according to the Annual report of Telecom Regulatory
Authority of India (TRAI).
Table 2.01 History of Cellular Telephony in India
YEAR
1992
1993
1994
EVENT
Telecommunication sector in India liberalized to bridge the gap through
government spending & to provide additional resources for the nations telecom
target. Private sector allowed participating
The telecom industry gets an annual foreign investment Rs 20.6 million
1995
License for providing cellular mobile services granted by the government of India
for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile
service to be duopoly (i.e. not more than two cellular mobile operators could be
licensed in each telecom circle), under a fixed license fee regime for 10 years.
19 more telecom circles get mobile licenses
1995(aug)
1997
1998
1999
FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million
1999
1999(Mar)
2000(Jan)
Page 14 of 79
The booming domestic telecom market has been attracting accelerating amount of investment.
The cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 6.14
billion. In fact, the surge in mobile services market is likely to see huge amount of investment
implying a mobile in the hands of every second person in the country.
Among the recent nine bidders for 3g auctions, Vodafone accounts for the highest FDI at 70.9%,
which includes Vodafones investments and some of Essars own foreign investments. The
second largest FDI is in Aircel with its foreign investor Global Communication Services
Holding (GCSH) owning 64.9%. Deccan Digital, which owes 34.9%, is, in turn, also held 25%
by GCSH.
Graph No.2.01
Page 15 of 79
Government has taken many proactive initiatives which have provided a framework for the rapid
growth of the telecom industry
Chart No.2.01
100 per cent FDI is permitted in telecom equipment manufacturing through the
automatic route.
Introduction of a Unified access licensing regime for telecom services on a panIndia basis.
Introduction of Calling Party Pay (CPP) regime and lowering of access deficit
coupled with introduction of revenue share regime in ADC.
Page 16 of 79
Page 17 of 79
ABOUT VODAFONE
Key people
Chairman
CEO
: Vittorio Colao
Deputy Chairman
: John Buchanan
CFO
: Andy Halford
D U R IN G 1 9 8 0 s
Vodafone made the UK's first mobile call at a few minutes past midnight on 1st January 1985.
Within fifteen years, the network was the largest company in Europe and the largest of its kind
anywhere in the world. By the turn of the century, almost every second UK citizen had a mobile
and a third of them were connected to Vodafone.
The Vodafone story is one of investment, innovation and award-winning customer service.
Above all, its one of growth and the ability to deliver the tremendous benefits of mobile
communications, not just in the UK but worldwide.
1982
The Racal electronics group wins its bid for the private sector UK cellular license. It sets up the
Racal telecoms division and names the new network Vodafone to reflect the provision of voice
and data services over mobile phones. Based in Newbury, the company has less than 50
employees, all in one building.
Page 18 of 79
1985
The Vodafone analogue network is the first cellular network to launch in the UK, and the first
call is made from St Katherines dock in London to Newbury on 1 January 1985.
1987
Vodafone is recognized as the largest mobile network in the world.
Vodata is created as the voice and data business to develop and market Vodafone recall, the
voicemail service.
Vodapage is launched, providing a paging network that covers 80% of the UK population.
1988
Racal telecomm plc floats on the London and New York stock exchanges.
1989
Paknet is formed as a joint venture between Racal telecom and cable & wireless
V O D A F O N E D U R IN G 1 9 90 S :
1991
Racal and Vodafone demerge. And the Vodafone group is listed as an independent company on
the London and New York stock exchanges.
Vodafone and telecom Finland make the worlds first international roaming call.
Vodafone launches its digital (GSM) mobile phone service the first in the UK.
1992
Vodafone and telecom Finland sign the world's first international GSM roaming agreement.
1993
Vodafone group international is formed to acquire licenses and supervise overseas interests.
Vodafone opens its first high street store.
1994
Vodata is the first network operator in the UK to launch data, fax and sms services over the
digital network.
Vodafone joins the global star consortium to develop and launch a low earth orbiting satellite
mobile phone service.
Page 19 of 79
1996
Vodafone is the first network operator in the UK to launch a pre-pay analogue package.
Per second billing on the digital network is introduced, as well as options to buy bundled
minutes and make off-peak local calls to landlines.
1997
Chris gent succeeds Sir Gerald Whent as chief executive officer of Vodafone group plc.
1999
Vodafone air touch plc is created as a result of a successful merger between Vodafone group
plc and air touch communications Inc.
On 5 January Vodafone connects the five million customers in the UK.
V O D A F O N E D U R IN G 2 0 00 S :
2000
The acquisition of Mannesmann Ag almost doubles the size of the Vodafone group making it
the largest mobile telecommunications company and one of the top ten companies, by market
capitalization, in the world.
Vizzavi is launched, a 50/50 joint venture between Vodafone air touch and vivendinet to
deliver a multi-access branded internet portal for Europe.
Vodafone acquires the largest available 3g license in the UK. In parallel with the development
of 3g, Vodafone announces its intention to offer GPRS (general packet radio service) to UK
corporate customers.
The global star satellite communications service is launched in the UK.
Page 20 of 79
2001
Vodafone introduces instant messaging to its networks.
Vodafone makes the worlds first 3g roaming call between Spain and Japan.
2002
Vodafone trials its global mobile payment system in the UK Italy and Germany.
Vodafone launches the first commercial European GPRS roaming service.
The Vodafone group foundation is launched. The group and its subsidiaries plan to contribute
20 million to community programs, guided by the group social investment policy.
Vodafone launches Vodafone live! & mobile office, two new consumer and business
propositions.
Arun Sarin was selected to succeed Sir Christopher Gent as Chief Executive of Vodafone group
plc.
2003
Vodafone live! attracts 1 million customers in its first six months.
Orange, telefonica moviles, t-mobile, and Vodafone form a new association to drive
interoperable mobile payments.
2004
Vodafone launches its first 3g service in Europe with the Vodafone mobile connect 3g/gprs
data card.
Vodafone live! With 3g is launched in 13 markets.
2005
Vodafone simply is launched, giving customers new, easy-to-use voice and text services.
Vodafone introduces passport, a new voice roaming price plan.
2006
The number of Vodafone live! Customers with 3g reach 10 million
Page 21 of 79
VODAFONE ESSAR
MD and CEO Vodafone Essar
: Marten Pieters.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 license areas.
Ownership
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%.
On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka
Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja
Group, and Essar Group, which is the owner of the remaining 33%. The whole company was
valued at USD 18.8 billion. The transaction closed on 8 May 2007.
Page 22 of 79
Previous Brands
Initially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE..... In
December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its
services under a single identity. The Company entered into agreement with NTT DoCoMo to
launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous owner,
Hutchison. However, the brand was marketed as Hutch. After getting the necessary government
approvals with regards to the acquisition of a majority by the Vodafone Group, the company was
rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on
20 September 2007.
Vodafone Essar spent somewhere in the region of Rs 250 crores on its high-profile transition.
Along with the transition, cheap cell phones have been launched in the Indian market under the
Vodafone brand.
Growth of Hutchison Essar
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994
was awarded a licence to provide mobile telecommunications services in Mumbai (formerly
Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh
of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had
acquired interests in six mobile telecommunications operators providing service in 13 of India's
23 license areas and following the completion of the acquisition of BPL that number increased to
16. In 2006, it announced the acquisition of a company that held license applications for the
seven remaining license areas.
In a country growing as fast as India, a strategic and well managed business plan is critical to
success. Initially, the company grew its business in the largest wireless markets in India - in
cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to
Page 23 of 79
establish a robust network, well known brand and large distribution network -all vital to longterm success in India. Then it also targeted business users and high-end post-paid customers
which helped Hutchison Essar to consistently generate a higher Average Revenue per User
("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish
leading positions in India's largest markets providing the resources to expand its footprint
nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement
with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan
interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and
interests) of approximately US$11.1 billion or HK$87 billion.
Hutch was often praised for its award winning advertisements which all follow a clean,
minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses
only white letters on red background. Another recent successful ad campaign in 2003 featured a
pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you
go, our network follows. The simple yet powerful advertisement campaigns won it many
admirers.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through
ESSAR acquisition
2001: Won auction for licenses to operate GSM services in Karnataka, Andhra Pradesh
and Chennai.
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajasthan,
Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch
brand.
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar
Pradesh West' and 'West Bengal.
2005: Acquired BPL, another mobile service provider in India.
Page 24 of 79
2008: Vodafone acquired the Licenses in remaining 7 circles and has started its pending
operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya Nagar,
Bhopal as well as in Orissa, Assam, North East and Bihar
2008: Vodafone launched the Apple i-Phone 3G to be used on its 17 circle 2.75G network.
2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card Industry
Security Standard (PCI DSS) certification for its Mumbai operations and launches unlimited
SMS offer in Mumbai
2010: Vodafone has crossed the landmark of 100 million subscribers in India. With this
achievement, Vodafone Essar becomes worlds 5th operator with 100 million customers in a
single country. Vodafone has also increased its market share to strengthen its position as Indias
second largest operator in terms of revenue.
This is a significant achievement for us and reflects the trust customers have bestowed on the
company, said Marten Pieters, Managing Director and CEO, Vodafone Essar, In the past three
years, we have invested over Rs. 20,000 crores to expand our operations to service customers in
India. We will utilize our global and Indian experience to deliver the best products and services
to our customers.
Starting with about 28 million subscribers across 16 circles in May 2007, Vodafone Essar today
has 100 million customers and its footprint has extended to all the 23 circles in the country. This
journey is a testimony of Vodafones success in a highly competitive and price sensitive market.
Around 60% of the Companys customer additions now come from upcountry areas. With a
distribution reach of about 1.2 million outlets, Vodafone is well-geared to serve customers in the
remotest corners of India.
Page 25 of 79
PRESENCE
Vodafone currently has equity interests in 31 countries across five continents and around 44
partner networks worldwide.
LOGO
A new visual identityfrom the deep pink logo of Hutchison-Essar to Vodafones trademark
deep red speech mark introduced in 1998.
Advertisement:
The inaugural TV commercial showed the trademark pug (minus the boy) moving out of a pink
kennel into a red one. An energetic version of Hutchs signature You and I tune played towards
the end, as the super concluded, Change is good. Hutch is now Vodafone. There were four
more commercials featuring Hutchs animated boy and girl, introducing the new brands logo to
consumers.
Vodafone put in close to Rs 150 crores into the first phase of the rebranding exercisewith Rs
60 crore in mass media and another Rs 90 crores in retail activities.
Page 26 of 79
In the second phase, Vodafone ushered in its global strap lineMake the most of now, which
replaced How are you? in 2001. By then it was apparent, the boy-and-pug chapter would soon
be over. In 2008, Vodafone used the platform of cricket when it unveiled the Happy to Help
series during the first season of the Indian Premier League (IPL).
This season the Zoo zoos are all the rage. These characters have virtually hijacked the online
media as well as televisionto convey a value added service (VAS) offering in each of the new
commercials.
In Indian scenario when other major telecom service providers are using celebrities
( Airtel-Shahrukh Khan, BSNL-Deepika Padukone, Aircel-Mahendra Singh Dhoni, IdeaAbhishek Bachchan) as their brand ambassadors, Vodafone is standing out proudly with
Zoozoos and pug as successful ad campaign.
Products and services in India:
Average cost of calls: 2 US cents per minute
Average revenue per customer: US$6.4 per month
853,039 points of sale, covering 65% of the population
With more than 3 million Vodafone-branded, affordable handsets sold in 2008/09,
Vodafone ranks among the top five handset brands in India.
Page 27 of 79
Distribution
Direct distribution-Number of directly owned stores 1150+
Vodafone directly owns and manages over 1,150 stores. These stores sell services to new
customers, renew or upgrade services for existing customers, and in many cases also provide
customer support.
A standard store format, which was tested in 2006, was rolled out in 11 markets during the 2008
financial year. All stores in India were rebranded as Vodafone and over 40 stores were
refurbished to the Groups standard format.
The Group also has over 6,500 Vodafone branded stores, which sell Vodafone products and
services exclusively, by way of franchise and exclusive dealer arrangements.
The internet is a key channel to promote and sell Vodafones products and services and to
provide customers with an easy, user friendly and accessible way to manage their Vodafone
services and access support. Additionally, in most operating companies, sales forces are in place
to sell directly to business customers and some consumer segments.
Philosophy- OUR PEOPLE
Vodafone rely on its people their enthusiasm, their talent, their commitment to maintain and
build on the success of our business, even more so in todays competitive market. It depends on
people to deliver excellent service to its customers.
Vodafone believe that the better experience our people have at Vodafone, the better service they
will give our customers. Vodafone Group employs approximately 71,000 people around the
world.
Page 28 of 79
Vodafone want to enhance its reputation as an employer that provides excellent development
opportunities, equipping employees with the skills and experience they need to help Vodafone
compete successfully.
It aim to ensure that all its working environments are inclusive, safe, promote wellbeing, treat
people with respect, and engage employees, and offer attractive incentives and opportunities.
Vodafone People Strategy
The Vodafone People Strategy sets out a clear statement of its commitments to employees and
expectations of them in six key areas.
Page 29 of 79
Page 30 of 79
Vodafone UK gives NECTAR reward points for every 1 spent on calls, text messages,
picture messages and ring tones.
Promotion
Vodafone works with icons such as David Beckham to communicate its brand values.
Above the line
Advertising on TV, on billboards, in magazines and in other media outlets reaches large
audiences and spreads the brand image and the message very effectively. This is known
as above the line promotion.
Below the line
Stores have special offers, promotions and point of sale posters to attract those inside the
stores to buy.
Vodafone's stores, its products and its staff all project the brand image.
Vodafone actively develops good public relations by sending press releases to national
newspapers and magazines to explain new products and ideas.
For example, young people think hard about which mobile phone to buy. In their search for the
widest range of appropriate services and the best value for money, young people in particular
examine catalogues, surf the Internet and study what their friends have bought. Trying to sell to
them is tough.
In order to retain market leadership, Vodafone has established a set of marketing objectives.
These are to:
Obtain new customers
Keep the customers it already has
Introduce new technologies and services (eg text messaging, WAP)
Continue to develop the Vodafone brand.
Vodafone is achieving these objectives by continually updating the range of phones and services
offered to keep ahead of its competitors. Vodafone also communicates regularly with its
customers to keep them well informed of the benefits of all Vodafone products.
Page 32 of 79
Present
New
Present
Prepaid/Post-paid services
Wi-max,3G
New
Rural Sector
M2M services,WiBro
In order to diversify its current market portfolio, Vodafone is launching a global Machine to
Machine (M2M) service platform for helping companies to deploy and manage large, wireless
M2M projects for applications in customer service enhancement and central control and
automation of projects. In the Indian context, M2M is an untapped sector with enormous
potential for growth. WiBRO (Wireless Broadband) has the capacity to overcome data rate of
limitation of mobile phones by providing a staggering 30 to 50 MB/s speed. As in the case of
M2M platforms, WiBRO is a very promising market in India. Providing these two services in
India would open new avenues of growth for Vodafone and would help it diversify into different
market verticals.
With this diversification and for more market penetration in the rural areas Vodafone has started
a new project Mera Gaon Mera Desh. Since more and more companies are entering in the
telecom market of India so its becoming difficult for the companies to just sit and eat the fruits.
It is very difficult already for the existing players as profit margins are reducing with increase in
number of players. The profits have reduced due to the slashing of call rates. However, the
profits realized are due to increasing usage rates .Stiff competition is giving rise to fear among
companies of losing the present customers so company has decided, with more service to
customers, to enter into the rural areas where the subscription rate is low and focus its activities
on servicing this sector and increasing subscriber rate.
Page 33 of 79
MARKET DEVELOPMENT
India is still an agrarian economy and over 60 percent of its population still dwells in rural areas.
According to recently conducted surveys, statistics showed that 45% of the overall telecomm
sector growth is to come from the rural sector. A major chunk of Vodafones revenue is still
generated from tier 1 and tier 2 cities. This leads Vodafone to place further focus on rural
penetration so as to create economies of scale as well as the top line growth of revenues.
Development of infrastructure in rural areas is a bottleneck due to the cost factor associated with
it. Project MOST (Mobile Operators' Shared Towers) by COAI was initiated in order to reduce
these heavy costs by sharing infrastructure between the service providers, hence resulting in
better coverage and quality. Optimal rural penetration can be achieved by taking into account the
economic environment prevailing in the rural sector. This would encompass the socio economic
factors and would hence provide a more regional focus to the advertising and promotional
strategies in order to establish a good connect with the rural customers.
The Census of India defines rural explicitly. Areas with clear surveyed boundaries not having a
municipality, corporation or board, with density of population not more than 400 per km sq. and
with at least 75% of the male working population engaged in agriculture and allied activities
qualify as rural.
Keeping this in mind, looking at strategic first mover advantages, company has
started the project MGMD. The company has identified areas where subscriber base rate is very
low. So to increase that rate in these areas company has come up with some plans. These sites
are identified by the technical department by measuring the traffic on BTS (Trans receiver
stations), which gives figures about usage in the area. So the low user sites or MFS
(MGMD focus sites) were given to me where I had to go with the staff and do the promotion and
other activities.
Page 34 of 79
Page 35 of 79
Badli
KIRANA: To Convert all kirana Store of MFS sites into E-top Up outlet.
Products:
Vodafone has launched a new SKU 50 which would have a retailer landing of Rs 24 and
MRP of Rs.40.
Vodafone have launched a special promotional offer for the entire customer base of the
FOCUS Sites wherein they would get Talk time or other benefits through 121best offer.
Page 36 of 79
Support Required:
Vodafone Garden Umbrella For promotion.
Special POP (Posters, Banners etc) for Villages.
STVs (Special tariff Vouchers) & NEW SKU (Stock Keeping Units) for Villages.
Special Talk Time Schemes for BSNL customers.
Page 37 of 79
METHODOLOGY
Page 38 of 79
CHARTER-3
METHODOLOGY
Research Methodology is a highly intellectual Human activity used in the investigation of nature
and matter and deals specifically with the manner in which the data is collected, analyzed and
interpreted.
Its basically the methods you intend to adopt to gather information in pursuit of answers to the
research questions.
3.1 Research Design.
Descriptive Research- Descriptive research can be used to identify and classify the elements or
characteristics of the subject, e.g. number of days lost because of industrial action. Quantitative
Techniques are often used to collect, analyze and summarize data.
Analytical Research- Analytical research often extends the Descriptive approach to suggest or
explain why or how something is happening, e.g. underlying causes of industrial action. An
important feature of this type of research is in locating and identifying the different factors (or
variables) involved.
Page 39 of 79
Page 40 of 79
Telecom
STD / ISD
Chemist
Petrol pumps
Photo Shops
General, Kirana
Gift shops
Cyber Cafs
Unconventional Outlets
Estate Agents
Opticians
Milk Booths
Cinema halls
Hospitals
Garages
Security Guards
Page 41 of 79
11. Kailana.
2. Rajlu Garhi.
12. Kasanda.
3. Begha.
4. Shamri Buran.
14. Sanpera.
5. Sardhana.
6. Dobheta.
16. Datauli.
7. Ghasoli.
17. Panchijatan.
8. Bhanwar.
18. Tajpur.
9. Kami.
19. Rajpur.
10. Khubru.
M.F.S of M D- Biswamil.
AD- Barota.
1. Jagdishpur.
2. Halalpur.
3. Nahri.
4. Jhundpur.
5. Abbaspur.
6. Malha Majra.
AD- Kharkhoda.
1. Rohat.
6. Kundal
2. Anandpur Jharot.
7. Khanda
3. Thanakalan.
8. Ladravan.
4. Rohna.
9. Pahaladpur.
5. Gopalpur.
Page 42 of 79
Page 43 of 79
Secondary Data: It is the data which is collected already in the past; it can be collected with
the help of secondary source like internet, books, journals, articles etc. The data regarding
MGMD focus sites, their population, already running ueo, etc was provided to me from
company. Also during drafting of report all information was gathered from articles about
company in magazines and from websites. As Vodafone is world renowned company so it was
not tough to gather information about this company.
Page 44 of 79
Page 45 of 79
DATA ANALYSIS
Page 46 of 79
CHAPTER 4
DATA ANALYSIS
We prepared a questionnaire to get the response of the retailers is the rural area sites. Here I am
going to analyze this questionnaire with the help of Pie- charts. These pie-charts give the idea for
various areas we have chosen as responses and their weightage can be seen easily.
Here I am going to analyse each question one by one. And with the help of the understanding,
which I got through personal visits, I am able to analyze these and can give probable thoughts of
the villagers in statistical data form.
These pie charts are of very useful as we can draw information from them which can be proved
to be very valuable now or in future. Any company, who wants to enter in a rural area, wants
proper information available about that area in advance to form the strategies and this analysis is
of great help for them.
Page 47 of 79
Valid
a) Kiryana store.
b) Mobile / repair shop.
c) STD/PCO shop.
d) Chemist/Clinic.
e) Tailor / Barber.
f) Photo shop.
g) Pan- Bidi shop.
h) Other.
TOTAL
Frequency
Percent
Cumulative
Percent
75
10
20
5
5
3
15
17
50
6.7
13.3
3.3
3.3
2
10
11.3
50
56.7
70
73.3
76.7
78.7
88.7
100
150
100
Page 48 of 79
Percent
Cumulative
Percent
No
30
20
20
Yes
120
80
100
150
100
Valid
TOTAL
Page 49 of 79
Valid
Very
Satisfied
Satisfied
No opinion
Unsatisfied
Total
Frequency
Percent
Cumulative
Percent
105
70.0
70.0
30
20.0
90.0
4.7
94.7
8
150
5.3
100.0
100.0
Valid yes
Frequency
135
No
15
10.0
150
100.0
Total
100.0
Yes
No
Valid yes
No
Total
Frequency
105
45
150
Percent
70.0
30.0
100.0
Valid
Cumulative
Percent
Percent
70.0
70.0
30.0
100.0
100.0
Yes 70%
NO 30%
Page 52 of 79
Valid yes
No
Total
Frequency
120
Percent
80.0
30
150
20.0
100.0
Cumulative
Percent
80.0
100.0
Yes 80%
NO 20%
Page 53 of 79
Valid yes
No
Total
Frequency
114
Percent
76.0
Cumulative
Percent
76.0
36
24.0
100.0
150
100.0
Yes
NO
Page 54 of 79
Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?
Table No. 4.08
Valid
Frequency
Percent
* Only coupons
17
11.3
Cumulative
percent
11.3
3.3
14.6
*Both
5.4
20
*None
120
80
100
Total
150
100
None 80%
Only coupons 11.3%
Both 5.3%
Only E-top value 3.3%
Vodafone
Airtel
Idea
Tata
15
15
10
10
Other
15
15
10
Freq
0
TATA
IDEA
AIRTEL
VODAFONE
OTHERS
When we asked them about all companies of which they were selling the recharges than majority
were selling Vodafone and Airtel recharge coupons and others include Idea, Tata, BSNL, and
Reliance.
Page 56 of 79
Q.7 If you are not selling any, then do you have any idea about telecom business?
Table No. 4.10
Valid yes
No
Total
Frequency
114
Cumulative
Percent
Percent
76.0
76.0
36
24.0
150
100.0
100.0
YES
No
Page 57 of 79
Valid yes
No
Total
Frequency Percent
25
16.7
125
83.3
150
100.0
Cumulative
Percent
16.7
100.0
No
Page 58 of 79
Valid
Illiterate
Age Factor
Less Commission
Several shops nearby
Financial issue
Credit issue in village
Frequency
20
25
40
30
25
35
Other
25
50
40
30
Frequenc
y
20
10
others
Page 59 of 79
Q.9 If Yes, then do you want to sell Vodafone Recharge coupons and E-top value?
Table No. 4.13
Frequency
Valid
Only
coupons
Only E-top
Both
Total
Percent
Cumulative
Percent
12
23.0
23.0
8
32
52
15.4
61.6
100.0
38.4.0
100.0
Page 60 of 79
Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?
Table No. 4.14
Valid yes
No
Total
Frequency Percent
14
35
26
65
40
100.0
Cumulative
Percent
35
100.0
YES
No
Page 61 of 79
16
15
10
7
25
20
15
Frequenc
y
10
0
New Connection
less Sale
I.D. issues
Financial issue
Others
Page 62 of 79
FINDINGS
AND
THEIR IMPLICATIONS
Page 63 of 79
CHAPTER 5
FINDINGS AND THEIR IMPLICATIONS
FINDINGS:
Vodafone has a good customer base in rural areas as well. As among the rural villagers
we have visited, almost 80% were using Vodafone and were aware about its various
schemes like TYC, and other benefits.
The users were found to be very satisfied with the services they are getting and network
is very good in rural areas as well.
Among the shops we have visited almost 80% were not selling any recharge of any
company. Among others most were selling the paper coupons only.
Although most of the villager shopkeepers were not into this business of telecom were
almost 75% were having some knowledge about this business. They know about various
products of Vodafone and recharges available, E-top recharge, paper recharge, and the
commission they will get for selling (though not exactly the percentage) etc.
Most of the shopkeepers were not interested in selling Vodafone in their shops. They
gave several reasons for this and most frequently given reasons include Illiteracy, Age
factor, Less commission, Financial issues, Credit issues as villagers take things on credit
and not pay several times.
Those interested most of them took both recharges paper and E-top. Some took only
paper recharge as they wanted to first test this business and wanted to see if they will get
customers initially.
For selling SIMs (New connections) most of the shopkeepers said No. They were not
ready to sell new connections as they find it very complex and face certain problems.
Page 64 of 79
Most of the problems they are facing include New connection sale is less in villages and
I.D issues also made them to not to sell this.
Overall people were not very advanced and they were ready to cooperate and listen about
the company and things we were saying. Most who understood about this were ready to
start this business.
IMPLICATIONS:
As Vodafone has good customer base there in rural areas as well so it can focus on it.
Vodafone can get idea about the problems of villagers from this project and can find new
ideas to get rid of them.
Vodafone can use the findings to get more penetration into the other rural areas and can
design its strategies according to the findings and issues pertaining in villages.
This project work is for Vodafone but other companies also can get benefit from it. They
can also implicate this survey for getting the understanding of the rural market they want
to concentrate on.
Companies who are interested in entering rural areas can use this project work to know
the problems of villagers, which can help them guide in initial steps of entry.
Page 65 of 79
LIMITATIONS
OF
THE STUDY
Page 66 of 79
CHAPTER 6
LIMITATIONS OF THE STUDY
This project work is of two months and only few villages were visited, Sample size is
also small i.e. of 150 only so errors may crop in while generalizing the results.
The respondents may be in a hurry and to get rid-off quickly they might not have
responded truly to all the questions.
Most visits were done in the afternoon time, when most of the villagers are in resting
mood and we found some of the shops closed. These may be potential shopkeepers who
may have responded well.
Though most attention is given to analysis but there may be some human error in
analyzing which can create error in generalizing.
Page 67 of 79
RECOMMENDATIONS/
SUGGESTIONS
Page 68 of 79
CHAPTER 7
RECOMMENDATIONS / SUGGESTIONS
This research throws light on various Issues and conditions of Vodafones Rural Market and
can also help Vodafone to improve on different fronts in order to have an edge over its
competitors. Based on the analysis and findings of my research I would like to give following
recommendations:
Most of the shops present in the villages are either Kiryana or paan-bidi type, so company
should come up with new plans to lure these retailers who are least ready for this
business. Also for visiting the shops morning or evening time should be chosen as in the
afternoon we found most of the shops were closed in village.
Most of our respondents were using the Vodafone, so it shows Vodafones services are
good there. Company should use it as the base for increasing its customer base.
Though most of the respondents knew about Vodafones TYC, but a sufficient number
was unaware. So company should promote about TYC in the rural through Muniyadi, or
pamphlets and banners.
Though most our respondents were not selling recharges but they had a fair idea about
this business so this is of great use for Vodafone. The process becomes easy if they know
about it. So company should focus more on satisfying the shopkeepers about their other
issues and hurdles they are facing in opening recharge outlet.
Company should focus more on learning the shopkeepers so that they will be able to do
this business well. The company should make them understand the E-top recharge
process severally as its not easy for some to understand in one go, also their benefits in
Best Deal, etc.
Most of the responses said the commission is less and Credit issue is there in village, for
this Vodafone should come up with strategies to solve these frequent problems and
should make villagers understand this.
Page 69 of 79
As for selling new connections people were not ready, as they feel there is problem
regarding the I.D issue and finance for sim, whose sale is less so people feel their money
will be blocked if they buy sim. For this company can make new plan and can provide
new sim to them on credit basis whose payment can be made after sale, more awareness
and activities can be organized in village to sell more sim. If more connections will sell
then only it can enhance its revenues rapidly.
As far as commission is concerned on sale, people less understood the Vodafone currency
system. They found it complex to understand and were more on selling the paper
recharge as its easy. So company should consider this issue and should come up with
new alternative to give benefits to rural village retailers.
Page 70 of 79
CONCLUSION
Page 71 of 79
CHAPTER 8
CONCLUSIONS
Vodafone has a firm commitment to growth and aims to differentiate itself in India's highly
competitive communications environment by ensuring customer delight through personalized
customer service, Excellent Network and other benefits. Vodafone has a solid reputation in India,
exemplified by a multitude of awards such as: three accolades Two Gold and One Silver, at the
Asia Marketing Effectiveness (AME) awards ceremony, the GSMA Global Mobile Awards to its
strong value proposition as Best mobile enterprise service.
The Company is taking every bit of effort to penetrate into the rural area and above analysis
shows how it is trying its level best to achieve this. All the efforts are directed towards this.
Through consistent presence and support for rural ecology company can strengthen its hold on
rural market. Lowering the initial costs of entry is expected to keep company in profit since
reduced profit margins stand to be compensated by a larger consumer base.
If the company will carry on the good work of penetration into the rural
areas and enhance it by considering the suggestions made above in the report than it can pace up
the success of Mera Gaon Mera Desh project. Through its efforts of Promotion and penetration
activities it can surely become the first preference of every Indian may it be in any corner of
India and can become No.1 Telecom Company of India in near future.
This penetration will help in better connectivity and reduce the distances.
Page 72 of 79
BIBLIOGRAPHY
Page 73 of 79
BIBLIOGRAPHY
BOOKS
Cooper Donald R. & Schindler Pamela S., 9th edition, 2006, Tata McGraw-Hill
Publication Company Ltd., New Delhi. Ch-6 Research Design(pg.136),
Ch-14 Questionnaire & Instruments (pg.356), Ch-15 Sampling (pg.400)
Kotler Philip and Keller Kevin, Principles of Marketing, 11th edition, 2006, Prentice hall
Inc, Published by Ashoke K. ghosh, Connaught circus, New Delhi.
Ch-15 Advertising, promotion & public relations
ARTICLE
A Research article by CSK consulting Pvt. Ltd., Rural Marketing practices for Telecom
Services, 2008, Nokia Siemens networks.
WEBSITES
Cellular Operators Association of India, History of Cellular telephony
http://www.coai.com/history.php, 20 July 2010.
Instablogs, 10 Aug. 2010, Varinder Kaur
http://varinderkaur.instablogs.com/entry/vodafone-zoozoo-a-successful-marketingstrategy/, Vodafone Zoo Zoos A Successful Marketing Strategy.
Prahalad C. K., Bottom of the pyramid article
http://www.12manage.com/methods_prahalad_bottom_of_the_pyramid.html
Telecom Regulatory Authority of India,
http://www.trai.gov.in/annualreport/TRAIAR2008_09E_Add.pdf, 25 JULY 2010.
Vodafone History, http://en.wikipedia.org/wiki/Vodafone_Essar. 2Aug 2010.
http://www.vodafone.com/start/media_relations/news/group_press_releases/2010/prelim_
2010.html
Page 74 of 79
ANNEXURE
Page 75 of 79
ANNEXURE
1. QUESTIONNAIRE:
QUESTIONNAIRE
Vodafone Essar Company
Dear Respondent,
I am a student of Maharaja Agrasen Institute of Technology, I am doing this Project for
Vodafone, for the purpose of promotion and opening new outlets in Sites called MERA GAON
MERA DESH FOCUS SITES, and so for that purpose I have designed following questionnaire.
Needless to say, that your information will be kept confidential and wont be disclosed to
anyone.
e) Tailor / Barber.
f) Photo shop.
c) STD/PCO shop.
g) Pan-Bidi shop.
d) Chemist/Clinic.
h) Other.
b) No.
Page 76 of 79
Bad
a) Network
b) Customer care service
c) Roaming facilities
d) Vodafone customer plans
e) Any other
-------------------------------------------------------------------------------Q.5 Do you know about Vodafones Thank you card?
a) Yes
b) No
Q.6 (i) Are you into telecom business and selling Recharge coupons and E-top value?
a) Only coupons
b) Only E-top Value.
c) Both.
d) None.
No
a)Vodafone.
b) Airtel.
c) Idea.
d) Tata.
e) Others.
Q.7 if you are not selling any, then do you have any idea about telecom business?
a) Yes
b) No
Page 77 of 79
b) No
Q.10 (i) Do you want to sell new SIM (New Vodafone connections)?
a) Yes
b) No
Page 78 of 79