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ABSTRACT

Nowadays there is lot of competition between different telecom operators


who in order to add more subscriber base to the existing figures. Retailers
are the one who play a vital role in delivering the service and product to the
end customer. Service level and the retailer’s scheme are the factors which
influence the satisfaction level of retailer. customer preference, Today the
customer are kings of the market because customer’s preference are built by
the products and services offered and they seek for more benefits for the
amount they spend. In this competitive market for a service provider to get
an edge over other operator, an operator must clearly understand the service
they are providing to the retailer, retailer behavior and their level of
satisfaction, customer preference and, which will help them to design
effective strategies to get more sales and increase subscriber base and shift
push sales to pull sales. Many marketers are smart enough to understand
Retailers needs, wants and customer preference and perform beyond their
expectation i.e. they delight them which provides them growth , profitability
and creativity with lot of inventions.
EXECUTIVE SUMMARY
The fast track growth of the Indian telecom industry has made it a key
contributor to India’s progress. Increase in competition in the telecom
service, service level is one of the major factor to be considered. The
Research conducted was descriptive in nature. The survey was conducted to
evaluate the performance of Distributor’s sales executives (Vodafone) in
certain aspects in retailer’s perspective and to identify the position of
Vodafone in the industry and to know the customer preference. The survey
was conducted in namakkal region i.e) two distributor anjenaya and ragav
area was covered. Questionnaire method was used along with some
interviews are also conducted with retailers and DSEs to obtain the required
information.
As competition in telecom sector is increasing day by day, all operators are
in a run to increase their subscriber base, at times tend to ignore the
satisfaction level of the Retailers. This study shows that who is holding no.1
position in designing the retailer’s scheme. The operators in order to lure
customer, comes out with attractive customer schemes. This study also
shows that which factor is most influenced by the customer. With the help of
this study, Vodafone came to know about their ranking position and also
they can design the customer scheme accordingly. The ranking of various
network based on coverage, retailer’s scheme and offers given to the
customer are also found.
So this study is an attempt to know the Retailers perception towards service
level offered by Vodafone and factors which influence the customer to buy
a particular network product.
Need for the study
The Indian telecom industry is growing at the fastest pace in the
world. Its very tough job to maintain or improve the current position
since the competition is high. Retailer is the one who is delivering our
product to the end customer so we have to serve them best. It becomes
important to distinguish from the competitors to survive the
competition. Hence the present study was carried out to know the
DSEs performance and service provided by Vodafone.

PRIMARY OBJECTIVE:
To evaluate the Distributor’s sales executive performance in terms of
frequency of visits per week, communicating the schemes and the quantity
of Stock Keeping Units (recharge coupon and SIM card).
SECONDARY OBJECTIVE:
– To identify the position of Vodafone in the industry according
to a various parameters like coverage, retailer schemes, offers
to customer.
– To know which factor influences the customers most to choose
an operator in terms of Coverage, Entry cost, Value Added
Service, Tariff and also to rank them accordingly.
– To know about the visibility (interior & exterior) and also to
compare with the competitors (Airtel& Aircel)

SCOPE OF THE STUDY


By knowing the retailer’s perception towards DSEs performance and service
provided by Vodafone may help the company to improve their services.
• By identifying the position/ rank of Vodafone will help the company
to improve them further.
By knowing influencing factor in terms of buying behavior of
customer which help in increasing the market share .

Research methodology

Primary Data
Primary data was collected from the retailers by questionnaire
method.
SAMPLING METHOD
Systematic sampling method
SAMPLE SIZE
250 retailers
AREA OF RESEARCH
Namakkal
Research
Descriptive Research
COMPETITION AND VODAFONE
The operator ended the year with revenues of £2,689 million. However,
business environment is becoming increasingly tough with competitive
pressure growing. Vodafone’s average revenue per user declined by as much
as 28% during the year. Driven by a strong growth in India, mobile operator
Vodafone Group Plc today reported 16.7 per cent increase in operating profit
at 11.8 billion pound in its worldwide operations for the year ended March
31, 2009. Vodafone Essar, the British group's Indian venture, reported a
33% growth in revenue on a pro forma basis, with growth in the fourth
quarter of 27.7% at constant exchange rates. Net customer additions in India
averaged 2.1 million per month, and the launch of services in seven new
circles, bringing the closing customer base to 68.8 million. According to the
data released by the group on Friday, the company’s Indian operators ended
the year with revenues of £2,689 million against £1,822 million during the
previous year. EBITDA grew by 5% on a pro forma basis. While the India
continues to add millions of subscribers every month, competitive pressure
too is growing and Vodafone felt it throughout the year. Lower effective
rates per minute and fall in usage per customer, increase in licensing costs
(as discounts received from the regulator in some service areas were
terminated) were among the factors that put pressure on growth, the
company said in a statement. Vodafone’s average revenue per user (ARPU)
declined by as much as 28% during the year. In the first quarter of the year,
ARPU was Rs. 350 while in the last quarter it was Rs. 274.On the positive
side, customer costs as a percentage of revenue decreased, benefiting from
economies of scale. Visitor revenue grew at a slower pace due to the impact
of economic pressures as people travel less. Lower effective rates per
minute, reflecting price reductions earlier in the year, coupled with the
continued market shift to lifetime validity prepaid offerings, led to a
reduction in customer churn. Also, infrastructure sharing has played a
significant role in helping Vodafone sustain growth, especially in the fourth
quarter. The operator benefited significantly from its network sharing
venture Indus Towers, which launched during the first half of the year.
“Growth in the fourth quarter in India remained stable in comparison to the
third quarter as the eight percentage point benefit of the new revenue stream
from the network sharing joint venture offset the slowing underlying growth
rate,” the company said. The company invested £1.4 billion in capital
expenditure in India to drive growth or around 17% of the total group
spending of £5.9 billion. Network expansion continued, with an average of
2,600 base stations constructed per month, primarily in the new circles. Site
sharing increased and Indus Towers steadily increased its operations
throughout the rest of the year, with 95,000 sites under its management at
the end of March 2009. "We have continued to drive penetration in India,
generating strong revenue growth from our brand and commercial offers and
a substantial investment in network coverage. Indus Towers, our
infrastructure joint venture with Bharti and Idea, began operating during the
financial year. We expect Indus Towers will enable Vodafone to increase its
capital efficiency in India and also to benefit from revenue generated from
selling capacity to other operators,” the company said in the statement
released on Friday. Vodafone is expecting India to continue to drive growth
this year as well. As such, it will continue to invest significantly in India.
Capital expenditure is expected to be similar to last year after adjusting for
foreign currency.
Brand and Distribution
Vodafone’s products and services are available directly, via Vodafone stores
and country specific Vodafone websites, and indirectly via third party
service providers, independent dealers, distributors and Retailers, to both
consumer and business customers in the majority of markets under the
Vodafone brand.

DISTRIBUTION AND CHANNEL OF SALES AT VODAFONE


Vodafone distribution channel in India normally contributes roughly 85-90
% of total business volumes. The distribution Model comprises basically
comprises of three entities-
1. A distributor who is given a territory to service.
2. A Distributor DSE (“Distributor Sales Executive” on payroll of the
distributor) who is appointed by the distributor to service a particular area of
his overall territory.
3. A Retailer who is an entity who purchases stock from the distributors.
Through the DSE of his area) and sells it to the end consumer.

Purpose of the review


A review of various literature available would help in providing me with a
better understanding of the various telecom provider nuances and their
marketing strategy and other services
Title: “STUDY OF THE BEHAVIOUR OF THE TELECOM RETAILERS” Institute
of Management & Information Science, Bhubaneswar.

From this research article it is cleared that the retailers play a very vital role
in acquiring customers by influencing their decision making in favour of the
service provider which the retailers likes the most. It also shows that profit
margin is not the only reason for which a retailer sells a particular brand but
other aspects such as service quality, pricing of products and services, timely
settlement of claims are equally important. However from the survey it has
also clearly come out that no doubt being a new entrant it has quite well
garnered the faith and belief of retailers
The operators in order to convince customer, comes out with attractive
customer schemes but in spite of increase in their subscriber base and
revenue, sometimes neglects the Retailers satisfaction and profitability.
From this article it is cleared that how well retailer play an vital role in the
chain of sales. To conduct this study, the researcher have taken seven
essential parameters i.e) Sales Frequency, Sales Person, Pricing, Profit
Margin, Schemes, Claim Settlement and Service Quality.
TITLE: A Study of the Mobile Value Added Services (MVAS) Market in India

In the age of convergence, the prominent growth driver of MVAS would be


the consumers’ desire of getting more from their mobile phone. While
among the youth entertainment related services would be popular, the other
consumers would also look for utility based services like location
information, mobile commerce (M-Commerce) for mobile transactions and
Local content rich services. Mobile VAS industry in India is undergoing a
lot of structural changes and is poised to grow and contribute greater
revenues to the telecom industry in years to come.

Mobile VAS in rural market


The next wave of Telecom growth will come from the bottom of the
pyramid. For majority of the population in the rural segment, the mobile
phone is the first communication device. Rural should not always be
interpreted as poor and therefore some categories of MVAS might apply
directly to them. But whether the statement can be extended to MVAS
depends on some key factors. One is to clearly identify the need of the rural
segment, second is to communicate the services to them i.e. generate
awareness and thirdly, to provide an easy and cheap access mode to the rural
consumers. All these 3 are quite big challenges and therefore needs to be
addressed adequately for MVAS to take off in Rural India.

MVAS is going to address two main needs of rural consumers- connectivity


and entertainment mode. Connectivity will provide Information VAS on
Agriculture necessary for the farmer’s livelihood e.g. mandi rates, weather,
etc. Health, finance, job opportunities etc are potential areas. Mobile also has
the potential to evolve as a key entertainment mode considering lack of other
entertainment options in rural areas.

Consumer
According to Peter Drucker, the aim of business is to create and retain the
customer. Hence consumer occupies the central position in the marketing
environment. The marketer has to closely monitor and analyse changes in
consumer tastes and preferences and cater to (if not try and anticipate) their
buying habits.
1. What constitutes the consumer value system?
2. What benefits is the consumer looking for?
3. Who are the consumers?
4. What are their buying patterns?

Competitors
Competition shapes business. A study of the competitive scenario is
essential for the marketer, particularly threats from competition.
1. Who are the competitors?
2. What are their present strategies and business objectives?
3. Who are the most aggressive and powerful competitors?