vodafone project 2011
TRANSCRIPT
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Introduction:
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.
3.2) Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while
targeting non-customers; measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number of both
psychological and physical variables which correlate with satisfaction behaviors such as
return and recommend rate. The level of satisfaction can also vary depending on other
options the customer may have and other products against which the customer can
compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in the
effort of quantitative measurement, although a large quantity of research in this area has
recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined
ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in
2002 and known as the ten domains of satisfaction.
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These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency,
Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors,
Commitment to the Customer and Innovation. These factors are emphasized for continuous
improvement and organizational change measurement and are most often utilized to
develop the architecture for satisfaction measurement as an integrated model. Work done
by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using the gap between the
customer's expectation of performance and their perceived experience of performance.
This provides the measurer with a satisfaction "gap" which is objective and quantitative in
nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation"
theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two
different measures (perception and expectation of performance) into a single measurement
of performance according to expectation. According to Garbrand, customer satisfaction
equals perception of performance divided by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of statements using
a Likert Technique or scale. The customer is asked to evaluate each statement and in term
of their perception and expectation of performance of the organization being measured.
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Industry Profile:
1.1) Introduction:
The telecom network in India is the fifth largest network in the world meeting up
with global standards. Presently, the Indian telecom industry is currently slated to an
estimated contribution of nearly 1% to Indias GDP.
The Indian Telecommunications network with 110.01 million connections is the
fifth largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique opportunities for
U.S. companies in the stagnant global scenario. The total subscriber base, which has grown
by 40% in 2005, is expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million
broadband connections and 18 million internet connections by 2007. The wireless
subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005.
In the last 3 years, two out of every three new telephone subscribers were wireless
subscribers. Consequently, wireless now accounts for 54.6% of the total telephone
subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expectedto bypass 2.5 million new subscribers per month by 2007. The wireless technologies
currently in use are Global System for Mobile Communications (GSM) and Code Division
Multiple Access (CDMA). There are primarily 9 GSM and 5CDMA operators providing
mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the
country.
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1.2) Evolution of the Industry - Important Milestones:
Year Description1851 First operational land lines were laid by the govt. near Calcutta(seat of
British Power)
1881 Telephone Service introduced in India
1883 Merger with the postal system1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and CommunicationCompany(IRCC)
1947 Nationalization of all foreign telecommunication companies to form thePosts, Telephone and Telegraph(PTT), a monopoly run by thegovernments Ministry of Communication
1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its ownregulator (separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies: theVidesh Sanchar Nigam Limited (VSNL) for internationaltelecommunications and Mahanagar Telephone Nigam Limited (MTNL)for service in metropolitan areas.
1997 Telecom Regulatory Authority of India created
1999 Cellular Services are launched in India. New National Telecom Policy isadopted.
2000 DoT becomes a corporation, BSNL
(Source: The Indian Telecom Industry by consulting club, IIM Calcutta)
1.3) Major Players:
There are three types of players in telecom services:
State owned companies (BSNL and MTNL)
Private Indian owned companies (Reliance Infocomm, Tata Teleservices)
Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel, Idea
Cellular, BPL Mobile, Spice Communications)
India's mobile telecom sector is one of the fastest growing sectors. Unlike in the 1990s
when the mobile phone was an elitist product, mobile operators now tap a mass market
with mass marketing techniques. "Unified licensing" rules allow basic and mobile
operators into each others territory, and have ushered in perhaps the final phase of
industry consolidation.
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It seems that only companies with deep pockets can effectively compete as primary
operators mobile markets. Economies of scale, scope, and end-to-end presence in long-
distance as well as local telecom, are desirable.
There are, besides, new challenges. Operators have to find new growth drivers for
the wire line business. There are problems of getting broadband to take off, of technology
choice, of when to introduce new technologies, and of developing a viable business model
in an era of convergence
1.4) Growth of mobile technology:
India has the fastest growing mobile markets in the world. The mobile services
were commercially launched in August 1995 in India. In the initial 5-6 years the averagemonthly subscribers additions were around 0.05 to 0.1 million only and the total mobile
subscribers base in December 2002 stood at 10.5 millions. However, after the number of
proactive initiatives taken by regulator and licensor, the monthly subscriber additions
increased to around 2 million per month in the year 2003-04 and 2004-05.
Although mobile telephones followed the New Telecom Policy 1994, growth was
tardy in the early years because of the high price of hand sets as well as the high tariff
structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded
several pro consumer initiatives. Mobile subscriber additions started picking up. The
number of mobile phones added throughout the country in 2003 was 16 million, followed
by 22 millions in 2004, 32 million in 2005 and 65 million in 2006. The only countries with
more mobile phones than India with 156.31 million mobile phones are China 408 million
and USA 170 million.
India has opted for the use of both the GSM (global system for mobile
communications) and CDMA (code-division multiple access) technologies in the mobile
sector.
The mobile tariffs in India have also become lowest in the world. A new mobile
connection can be activated with a monthly commitment of US$ 5 only. In 2005 alone 32
million handsets were sold in India. The data reveals the real potential for growth of the
Indian mobile market.
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1.5) Cellular Service Providers:
As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125million are GSM users and 41 million CDMA users. BSNL, BhartiAirtel, Hutch, Idea,
Aircel, Spice and MTNL are the main GSM providers in India. Reliance Communications
and Tata Indicom are the main CDMA providers in India.
Vodafone
Vodafone is another emerging GSM provider in India with coverage in Kerala,
Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab with a
total subscriber base of 27 million.
Bharat Sanchar Nigam Limited (BSNL)
BSNL is a state owned telecom company which has GSM presence in almost every
cities and towns. BSNL has 27 million subscribers with a market share of 16%.
BhartiAirtel
Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra
Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala,
Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West
Bengal. Airtel is the No.1 cellular service provider in India using GSM technology. Airtel
has 23% market share in India with a total subscriber base of 38 million.
Reliance Communications
Reliance has both CDMA and GSM networks and total subscriber base of 29
million or 17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh,
Kolkata, North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA
networks in other states and cities
Tata Indicom
Tata Indicom is a main CDMA provider in India with 16 million subscribers all
over India. Tata Indicom has presence in almost every state and cities in India.
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COMPANY PROFILE:
2.1) Introduction:
Vodafone is a mobile network operator headquartered in Berkshire, England, UK.
It is the largest mobile telecommunications network company in the world by turnover and
has a market value of about 75 billion (August 2008). Vodafone currently has operations
in 25 countries and partner networks in a further 42 countries.
The name Vodafone comes from Voice data fone, chosen by the company to
"reflect the provision of voice and data services over mobile phones."
As of 2006 Vodafone had an estimated 260 million customers in 25 markets across
5 continents. On this measure, it is the second largest mobile telecom group in the world
behind China Mobile.
In the United States, Vodafone owns 45% of Verizon Wireless.
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2.2)Mission:
Vodafone is primarily a user of technology rather than a developer of it, and this
fact is reflected in the emphasis of our work program on enabling new applications of
mobile communications, using new technology for new services, research for improving
operational efficiency and quality of our networks, and providing technology vision and
leadership that can contribute directly to business decisions.
2.3) Vision:
Our Vision is to be the worlds mobile communication leader enriching
customers lives, helping individuals, businesses and Communities be more connected in a
mobile world.
2.4) History:
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of
two UK cellular telephone network licenses. The network, known as Racal Vodafone was
80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and
5% respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was
renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal
Electronics bought out the minority shareholders of Vodafone for GB110 million.
In September 1988 the company was again renamed Racal Telecom and on 26
October 1988 Racal Electronics floated 20% of the company. The flotation valued Racal
Telecom at GB1.7 billion On 16 September 1991 Racal Telecom was demerged from
Racal Electronics as Vodafone Group.
In July 1996 Vodafone acquired the two thirds of Talkland it did not already own
for 30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased
Peoples Phone for 77 million, a 181 store chain whose customers were overwhelmingly
using Vodafone's network. In a similar move the company acquired the 80% of Astec
Communications that it did not own, a service provider with 21 stores.
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i t it Speech mark l as it is a quotation mark in a
circl ; t O's in t Vodafone logot e are opening and closing quotation marks,
suggesting conversation.
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications,
Inc. and changed its name to Vodafone Airtouch plc. Trading of the new company
commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-
Plus Mobilfunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of
the largest German mobile network.
Vodafones originallogo used untilthe introduction ofthe speech marklogo in 1998.
On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with
those of Bell Atlantic Corp to form Veri on Wireless. The merger was completed on 4
April 2000.
In November 1999 Vodafone made an unsolicited bid forMannesmann, which was
rejected. Vodafone's interestin Mannesmann had been increased by the latter's purchase of
Orange, the UK mobile operator. Chris Gent would later say Mannesmann's move into the
UK broke a "gentleman's agreement" not to compete in each other's home territory. The
hostile takeover provoked strong protest in Germany and a "titanic struggle" which saw
Mannesmann resists Vodafone's efforts. However, on 3 February 2000 the Mannesmann
board agreed to an increased offer of 112bn, then the largest corporate merger ever. The
EU approved the mergerin April 2000. The conglomerate was subsequently broken up and
all manufacturing related operations sold off.
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On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In
April 2001 the first 3G voice call was made on Vodafone United Kingdom's 3G network.
In 2001 the Company took over Eircell, then part of eircom in Ireland, and rebranded it as
Vodafone Ireland. It then went on to acquire Japan's third-largest mobile operator J-Phone,
which had introduced camera phones first in Japan.
On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by
signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone
international services to the local market, without the need of investment by Vodafone.
The concept would be used to extend the Vodafone brand and services into markets where
it does not have stakes in local operators. Vodafone services would be marketed under the
dual-brand scheme, where the Vodafone brand is added at the end of the local brand. (i.e.,
TDC Mobil-Vodafone etc.)
In February 2002 Finland was added into the mobile community, as Radiolinja is
signed as a Partner Network. Radiolinja later changed its named to Elisa. Later that year
the Company rebranded Japan's J-sky mobile internet service as Vodafone live! and on 3
December 2002 the Vodafone brand was introduced in the Estonian market with signing of
a Partner Network Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed its
name to Elisa.
On 7 January 2003 the Company signed a group-wide Partner agreement with
mobilkom Austria. As a result, Austria, Croatia, and Slovenia were added to the
community. In April 2003 Og Vodafone was introduced in the Icelandic market and in
May 2003 Vodafone Italy (Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21
July 2003 Lithuania was added to the community, with the signing of a Partner Network
agreement with Bit.
In February 2004 Vodafone signed a Partner Network Agreement with
Luxembourg's LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta
agreed to rename its mobile phone operations to Cytamobile-Vodafone. In April 2004 the
Company purchased Singlepoint airtime provider from John Caudwell (Caudwell Group)
and approx 1.5million customers onto its base for 405million, adding sites in Stoke on
Trent (England) to existing sites in Newbury (HQ), Birmingham, Warrington and Banbury.
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In November 2004 Vodafone introduced 3G services into Europe.
In June 2005 the Company increased its participation in Romania's Connex to 99%
and also bought the Czech mobile operator Oskar. On 1 July 2005 Oskar of the Czech
Republic was rebranded as Oskar-Vodafone. Later that year on 17 October 2005 Vodafone
Portugal launched a revised logo, using new text designed by Dalton Maag, and a 3D
version of the Speech mark logo, but still retaining a red background and white writing (or
vice versa). Also, various operating companies started to drop the use of the SIM card
pattern in the company logo. (The rebranding of Oskar-Vodafone and Connex-Vodafone
also does not use the SIM card pattern.) A custom typeface by Dalton Maag (based on their
font family InterFace) formed part of the new identity.
On 28 October 2005 Connex in Romania was rebranded as Connex-Vodafone and
on 31 October 2005 the Company reached an agreement to sell Vodafone Sweden to
Telenor for approximately 1 billion. After the sale, Vodafone Sweden became a Partner
Network. In December 2005 Vodafone won an auction to buy Turkey's second-largest
mobile phone company, Telsim, for $4.5 billion. In December 2005 Vodafone Spain
became the second member of the group to adopt the revised logo: it was phased in over
the following six months in other countries
In 2006 the Company rebranded its Stoke-on-Trent site as Stoke Premier Centre, acentre of expertise for the company dealing with Customer Care for its higher value
customers, technical support, sales and credit control. All cancellations and upgrades
started to be dealt with by this call centre. On 5 January 2006 Vodafone announced the
completion of the sale of Vodafone Sweden to Telenor. On February 2006 the Company
closed its Birmingham Call Centre. In 1 February 2006 Oskar Vodafone became
Vodafone Czech Republic, adopting the revised logo and on 22 February 2006 the
Company announced that it was extending its footprint to Bulgaria with the signing of
Partner Network Agreement with Mobiltel, which is part of mobilkom Austria group.
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On 12 March 2006 former chief, Sir Christopher Gent, who was appointed the
honorary post Chairman for Life in 2003, quits following rumours of boardroom rifts. In
April 2006 the Company announced that it has signed an extension to its Partner Network
Agreement with BITE Group, enabling its Latvian subsidiary "BITE Latvija" to become
the latest member of Vodafone's global partner community. Also in April 2006 Vodafone
Sweden changed its name to Telenor Sverige AB and Connex-Vodafone became Vodafone
Romania, also adopting the new logo. On 30 May 2006 Vodafone announced the biggest
loss in British corporate history (14.9 billion) and plans to cut 400 jobs; it reported one-
off costs of 23.5 billion due to the revaluation of its Mannesmann subsidiary. On 24 July
2006 the respected head of Vodafone Europe, Bill Morrow, quit unexpectedly and on 25
August 2006 the Company announced the sale of its 25% stake in Belgium's Proximus for
2 billion. After the deal, Proximus was still part of the community as a Partner Network.
On 5 October 2006 Vodafone announced the first single brand partnership with Og
Vodafone which would operate under the name Vodafone Iceland and on 19 December
2006 the Company announced the sale of its 25% stake in Switzerland's Swisscom for
CHF4.25 billion (1.8 billion).
After the deal, Swisscom would still be part of the community as a Partner
Network. Finally in December 2006 the Company completed the acquisition of Aspective,
an enterprise applications systems integrator in the UK, signaling Vodafone's intent to
grow a significant presence and revenues in the ICT marketplace.
Early in January 2007 Telsim in Turkey adopted Vodafone dual branding as Telsim
Vodafone and on 1 April 2007 Telsim Vodafone Turkey dropped its original brand and
became Vodafone Turkey. On 1 May 2007 Vodafone added Jersey and Guernsey to the
community, as Airtel was signed as Partner Network in both crown dependencies. In June
2007 the Vodafone live! Mobile Internet portal in the UK was relaunched. Front page was
now charged for and previously "bundled" data allowance was removed from existing
contract terms. All users were given access to the "full" web rather than a Walled Garden
and Vodafone became the first mobile network to focus an entire media campaign on its
newly launched mobile Internet portal in the UK. On 1 August 2007 Vodafone Portugal
launched Vodafone Messenger, a service with Windows Live Messenger and Yahoo!
Messenger.
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On 17 April 2008 Vodafone extended its footprint to Serbia as VIP mobile was
added to the community as a Partner Network and on 20 May 2008 the Company added
VIP Operator as a Partner Network thereby extending the global footprint to Macedonia. In
May 2008 Kall of the Faroe Islands rebranded as Vodafone Faroe Islands.
On 30 October 2008, the company announced a strategic, non-equity partnership
with MTS group of Russia. The agreement adds Russia, Armenia, Turkmenistan, Ukraine,
and Uzbekistan to the group footprint.
2.5) VODAFONE ESSAR
2.5.1) Introduction:
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that
covers 21 telecom circles in India. Despite the official name being Vodafone Essar, its
products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular
phone coverage throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 22 of the country's 23 licence areas.
2.5.2) Ownership:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67%
held by Li KaShing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. The transaction closed on May
8, 2007.
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2.6) Previous brands:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide,
consolidating its services under a single identity. The Company entered into agreement
with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its
previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the
necessary government approvals with regards to the acquisition of a majority by the
Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand
was officially changed to Vodafone on 20 September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brandtransition exercises in recent times.
Along with the transition, cheap cell phones have been launched in the Indian
market under the Vodafone brand. There are plans to launch co-branded handsets sourced
from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to
leverage Vodafone Group's global scale in bringing millions of low-cost handsets from
across-the-world into India."
.
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SWOTAnal sis:
SWOT ly i is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project orin a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieving that objective.
The technique is credited to Albert Humphrey, who led a research project at Stanford
University in the 1960s and 1970s using data from Fortune 500 companies.
I e al
Strengths Weak e e
Leadership Position
Global Brand Strength
High Geographical reach
Market driver
Centralized Control Low
Flexibility
High Consumer churn rates
Ex e al
pp
i
ie ! Th ea
!
Expanding marketing boundaries
Growth through 3G
Strategic Alliances
Increased Competition
Market saturation in Europe
Emergencies of Low cost Brands
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SWOTanalysis of Vodafone
3.1) Strengths:
The main strength of Vodafone within the telecommunications market lies in its
brand image and recognition. Vodafone, having established a global presence and having
invested highly in marketing a differentiated image by promoting a Vodafone life style,
currently enjoys a differentiating advantage that, if exploited properly, can offer a lead in
competition. The presence of Vodafone in numerous countries within Europe as well as in
all part of the world enhances this image. It allows customers to travel and enjoy easily the
services of their home country operator. In the few countries that Vodafone is not
physically present (e.g. Norway) it has well established strategic alliances which allow for
a better service of mobile clients.
3.2) Weaknesses:
The expansion of Vodafone has been completed at the expense of direct control of
its operations. The company grew through a process of acquisitions of national
telecommunications companies (e.g. the acquisition of the third biggest Czech mobile
phone operator, Cesky mobile) rather than organic growth. This increased its subscribers
base quickly, offering direct market knowledge and immediate additions of customer bases
at the expense of direct effective control of the subsidiaries. At the same time though, it
implicitly imposed a centralized operational structure for the group, nominating the UK
headquarters as the leading business unit running a much centralised marketing and
handset procurement at group level. This has resulted in the neglect of local markets and
local differences, allowing market share to be gained by smaller local competitors. Due to
the highly saturated Western European market this has resulted in an increase in the price
elasticity of demand, with consumers becoming continuously price oriented. This has
resulted in high customer churn rates reaching the level of 32.8% in the UK compared to
O2s 24%.
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3.3) Opportunities:
The telecommunications market, even though highly saturated in some regions
offers great potential due to the ageing population and the sophistication of the consumers.
It offers great opportunities through a careful market segmentation and exploitation of
particular profitable segments. Different strategies should be pursued simple phones and
simplified pricing plans to the ageing population and more updated, sophisticated solutions
for younger generations. The expanding Boundaries of the market could provide further
opportunities by allowing Vodafone to enter more aggressively into fixedline service and
to better enjoy the benefits of its high investment in 3G technology. Moreover the
company has undertaken its first steps in establishing strategic alliances to develop
customized solutions for endusers: Vodafone recently announced two new partnerships,
one with supermarket group ASDA to launch an ASDA branded mobile service in the UK,and another with electrical retailer DSG International to provide mobile solutions to small
businesses. This could further be enhanced to avoid being a lateentrant in this new method
of distribution which offers access to a wide potential customer base.
3.4) Threats:
The European part of Vodafones market is characterized by existing high levels of
competition. Major brands such as O2 and TMobile are exploiting the price sensitivity of
customers and in this way they are building a stronger image and presence in the market.
Indirect competition is also increasing further, through the presence of Skype and other
related (not only voice) Internet based services. This combined with the upcoming
European legislative measures is expected to limit further the tariffs for the network
providers imposing further need for price cuts which could harm the bottom line
profitability of the company.
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RESEARCHMETHODOLOGY:
Introduction:
Marketing research means the systematic gathering, recording, analyzing of data
about problems relating to the marketing of goods and services
Marketing research has proved an essential tool to make all the need of marketing
management. Marketing research therefore is the scientific process of gathering and
analyzing of marketing information to meet the needs of marketing management. But
gathering of observation is must be systematic. The systematic conduct of research
requires: Orderliness, in which the measurements are accurate.
Impartiality in analysis and interpretation.
All of research can be categorized into basic and applied.
1. BASIC RESEARCH: - Basic Research is that intended to expand the body of
knowledge for the use of others.
2. APPLIED RESEARCH: - Applied Research is one, which is carried out to find
the solution for a particular problem or for guiding a specific decision. It is usually
private in nature.
My research on Vodafone is carried on for guiding specific decisions and its results
are useful only to Vodafone for taking particular decision regarding product quality, staff
and security. Hence the nature of my research study is APPLIED RESEARCH .
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4.1) Objectives of Study:
Following are the main objective to study about the customer satisfaction on
Vodafone.
To study telecommunication industry.
To study the company profile of Vodafone.
To study customer satisfaction of Vodafone.
To study various Marketing activities provided by Vodafone.
To study the various services provided by Vodafone.
To know the expectation of Vodafone Customers.
4.2) Benefits of study:
There are many benefits related to take this study. Some of the benefits of taking
this study are as follows:
By analyzing this information, the company would be able to better design schemes
& services & target right prospects needs & wants.
More people will get aware about Vodafone that will increase profit level of
Vodafone.
This study helps to identify the behavior of consumerwhen there are no offers &
schemes from Vodafone.
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4 " 3#
Pro$ %
ss of &'
rketin(
Research:
The marketing research is done in systematic process. The Researcher has pursued
the below process of marketing for my study at Vodafone:
4.4.1)Problem Identi i tion:
The first and the mostimportant step of marketing research is properly defining the
problem. In order to identify the research problem two categories of problem should be
carefully noticed.
Here the researchers problems are:-
A number of customers are not satisfied with services, new schemes and offers.
A number of customers are not satisfied with the network coverage.
A number of customers are not satisfied with the current call rates of Vodafone.
A number of customers are not satisfied with the Free SMS schemes.
A number of customers are not satisfied with the service of customer care of
Vodafone.
Problem Identification
Research Design
Data Collection
Data Analysis & Interpretation
Research Report & Presentation
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4.4.2)Research design:
Research design indicates the methods and procedure of conducting research study. In
this study the design used is Descriptive Research Design. As Descriptive research is
undertaken when the researcher want to know the characteristics of certain groups. Hence,
this research design is appropriate for this project study.
4.4.3)Data Collection and Sampling:
A) Sources of Data Collection:-
Basically there are two types of data i.e. secondary and primary:
I) Primar Data Collection:-
Primary data collection contains the following four types of methods: -
1 Observation Method:
It contains Causal observation, Systematic observation, direct observation and
contrived observation.
2 Surve Method:
It contains Personal Interview, Telephone Interview and Mail Interview.
3 Experimental Method.
4 Panel Method.
Secondar Data Collection: - It can be collected from internal as well as
external sources
1) Internal Source: Various internal sources like employee, books, sales activity, stock
availability, product cost, etc.
2) External Sources: Libraries, trade publications, literatures, etc are some important
sources of external data. In this our survey team have used primary data for the core
purpose of the project and this primary data has been gathered by survey method. We have
also used secondary data to know the background of the company.
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B)Data collection Tools:
To conduct a survey, a selected a structured questionnaire has been used as an
instruction for gathering valuable information from the customers. Questionnaire, which is
used for the survey, is consisting of questions and checklist questions to check the
customer feedback.
Sampling unit:Who is to be surveyed?
For this, youngsters, businessmen, and housewives, employees are selected to
conduct survey and to measure satisfaction level.
Sample Size:
Sample size means limited numbers of respondents covered under the research study froma population and they have taken a survey of 100 respondents to know the satisfaction
level of customer.
I) Sampling Area:
The researchers area for survey was:
Suma stores ,devarajus layout, Davanagere
Telematics,kaipet, Davanagere
BAMR ,Davanagere
II) Sampling Unit:
Here the researcher has randomly selected the respondents of the Davanagerecity.
Data Anal sis and Interpretation
After all the above steps are completed now the important step is data analyzing
and interpretation. For this there are various analytical and statistical tools. Some of these
tools are Percentage, Average, Dispersion, Co-relation, Co-efficient, etc.
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Data Analysis and Interpretation:
Table no 1:-Table showing to know about which telecommunication(operators)
service they use with graph.
services Vodafone Airtel BSNL Idea Reliance TataIndicom
Tatadocomo
MTS Aircel
No. of
respondents
90 10 8 21 26 9 12 8 9
INFERENCE
According to survey Major respondents using mobile are enjoying Vodafone services.
13% of the respondents use Reliance, 11% respondents use Idea while
6%,5%,5%,5%,4%,4%respondents use Tata docomo ,Tata Indicom, Aircel,Airtel, BSNL,
MTS respectively.
47%
5%4%
11%
13%
5%
6%
4%5%
DIFFERENT SERVICE PROVIDERS BREAK UP
Vodafone
Airtel
BSNL
Idea
Reliance
Tata Indicom
Tata docomo
MTS
Aircel
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Table no 2:-Table showing know about the awareness of Vodafone among all the
respondents with graph.
Suggestions Yes No
No. of respondents 90 10
INFERENCE
Major number of customer using enjoying Vodafone services. Here 100% of respondents
are aware about Vodafone Services.
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T ble no 3:-Table showing to know from which source the respondents came to know
about Vodafone with graph.
Sources No. of respondents
Advertisements 18
Hoardings 14
Newspapers 20
Word of mouth38
INFE ENCE
Major number of customer using Vodafone services through Word of mouth.42% of the
respondents are aware about Vodafone through Word of mouth, 22% are aware because of
Newspapers while 20% and 16% ofthe respondents are aware because of Advertisements
and Hoarding respectively.
20%
16%
22%
42%
Source ofAwareness
Adve) 0 1
se2
e3 0
s
H 4 5 ) dings
6ewsp
7pe
8s
W9 8
d of Mouth
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T ble no 4:-Table showingto know aboutthe usage time of Vodafone customers i.e. since
how long they are using Vodafone serviceswith graph.
Time period No. of respondents
Less than 1 month 30
2-6 months 15
6-12 months 25
More than 1 year 20
INFE ENCE
Major Respondents using Vodafone are new customers. 33% of the respondents use
Vodafone services from Less than 1 month , 28%respondents using Vodafone services 6-
12 months, 22% respondents using Vodafone services More than 1 year , 17%respondents
using Vodafone services 2-6 months
33%
17%
@ 8%
A A%
Usage ti e
Less than 1 month
2-6months
6-12 months
More than 1 year
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Table no 5:-Table showingto know which services do the Vodafone customer use, Pre-
Paid or Post-Paidwith graph.
Services No. of
respondents
Pre-Paid 89
Post-paid 1
INFERENCE
According to my survey more number of custumer using prepaid services 99% of
the respondents use pre-paid services while only 1% of the respondents use post-paid
services.Less number of customer using post-paid
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T ble no 6:-Table showingto know Reasons for opting prepaid with graph.
Reason No. of respondents
Economical 15
Easy to use 25
Both 34
Online 15
INFERENCE
Reason for using prepaid is Economical and easy to use
38% of the respondents use Vodafone services from Both , 28%respondents using
Vodafone services Easy to use, 17% respondents using Vodafone services Economical ,
17%respondents using Vodafone services Online
Table no 7:-Table showingReasons for Postpaid with graph
17%
2B
%
38%
17%
Reasonsfor going prepaid
Economical
EasC to use
Both
Online
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Reason No. of respondents
High usage 1
Services
Lower call rates
All of above
INFERENCE
Reason for Less number of customers using post-paid is High usage
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Table no 8:-Table showingto know which services are more helpful to the respondent
while using Vodafone with graph.
Services No. of respondents
CallRates 33
SMS Rates 22
Network 13
Value Added Services 9
GPRS and 3G 13
INFERENCE
Here majorRespondents are youngsters so they mainly useCallRates of Vodafone.
37% of the respondents use Vodafone forCallRates while only 24% of the respondents
use Vodafone for SMS Rates
37%
24%
15%
10%
14%
Wh Vodafone ?
Call Rates
SMS Rates
Detw
Erk
Value Added Services
GPRS and 3G
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Table no 9:-Table showing to know how many times and how often the respondents call at
customer care of Vodafone with graph.
Suggestions Yes No
No. of respondents 78 12
INFERENCE
Major number of customer call to Vodafone customer care87% of the respondent calls at
customer care while 13% respondents do not call at customer care.
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If yes, how often you call at customer care
Time Period No. of respondents
Daily
Once a week
Once a month 2
Occasionally 76
INFERENCEMajor respondents here call customer care occasionally. 97% respondents call customer
care Occasionally while 3% and respondents call once a month 0% of respondentsand not
call tocustomer care Daily and Once in week
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Table no 10:-Table showing to know the reason of the respondents regarding calling atcustomer care with graph.
Reasons No. of respondents
Value Added Services14
Information regarding new schemes 17
Other queries 27
Complaining 20
INFERENCE
Major number of customer call customer for other queries 34% of respondents call
at customer care for other queries purpose while 26%, 22% and 18% of respondents call
customer care for complaining , information regarding new schemes and value added
services respectively.
18%
F F%
34%
G 6%
No.ofrespondents
Value Added Services
Hnformation regarding
newschemes
Other queries
Complaining
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Table no 11:-Table showing to know aboutthe which plans are using more with graph.
plans No. of respondents
Lifetimeplan 11
General plan 79
INFERENCE
According to survey major number customer using general plan 88% of
respondents using General plan and another 12% respondents using life time plan
respectively.
12%
88%
No.ofrespondents
Lifetimeplan
General plan
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Table no 12:-Table showing to know about opinion aboutthe price aspects with graph
Price aspects No. of respondents %
Cheaper 23 26%
Value for money 22 24%
Reliable 45 50%
Too heavy charges 0 0%
INFERENCE
50% of respondents opinion aboutthe price aspects is Reliable while 24%, 26% and 0% of
respondents opinion aboutthe price aspects is Cheaper, Value for money, Too heavy
charges respectively.
Table no 13:-Table showing Rate the following services on the basis of your satisfaction
with graphs.
0
10
20
30
40
50
CheaperValue for
moneyReliable I
oo
heavy
charges
2322
45
No.ofrespondents
No. of respondents
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Services E cellent Very Good Fairly good Average Poor
Network 65 21 3 1
SMS rates 34 47 9
New schemes and offers 26 44 15 5
CustomerCare 7 12 22 49
Recharge outlets 8 67 15
CallRates 10 52 23 5 1
Value Added Services 15 43 22 9 1
Service level satisfaction
Network:
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
Average
Fairly good
Very Good
Excellent
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Purpose:
The purpose of this analysis is to know the perspective of the customers of Vodafone
regarding network service
INFERENCE
Here major respondents are satisfy with the network coverage. 72% of the
respondents are rate the Vodafones network excellent, 24% rate it very good, 3% rate it
farely good while 1% and 0% rate it average and poor.
SMS Rates:
72%
24%
3% 1% 0%
Network
Excellent Very Good Fairly Good Average Poor
Service E cellent Very Good Fairly Good Average Poor
Network 63 21 3 1 0
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Purpose:
The purpose of this analysis is to know the perspective of the customers of vodafone
regarding Rates of SMS.
INFERENCE
Here major respondents are not much satisfied with the SMS rates of Vodafone as
major respondents are youngsters. 38% of respondents rate it excellent, 52% rate it very
good, 10% rate it fairly good, 0% rate it average, 0% rate it poor.
New Schemes and Offers:
Service Excellent Ver Good Fairl Good Average Poor
SMS Rates 34 47 9 0 0
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Purpose:
The main purpose ofthis analysis is to the respondents perspective related to the
new schemes and offers provided by Vodafone.
INFERENCE
Here major respondents are satisfied with new schemes and offers of Vodafone.
49% respondents rate new schemes and offers as very good, 29% respondents rate it as
Excellent, 17 % rate it as fairly good while 5% and 0% rate it as Average and Poor
respectively.
Customer Care:
29%
49%
17%
5%
0%
New schemes andoffers
Excellent Very Good Fairly Good Average Poor
Service E cellent Very Good Fairly Good Average Poor
New schemes
and offers
26 44 15 5 0
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Purpose:
The main purpose ofthis analysis is to know aboutthe satisfaction of customer care
service provided by Vodafone to their customers.
INFERENCE
Customer care service of Vodafone is are not much satisfied with CustomerCare of
vodafone. 54% respondents rate it as Average, 25% rate it as fairly good, 13% rate it as
Very good, and 8% and 0% rate it as excellent poor and poor respectively.
Recharge Outlets:
8%
13%
25%54%
0%
Customer Care
Excellent Very Good Fairly Good Average Poor
Service E cellent Very Good Fairly Good Average Poor
CustomerCare 7 12 22 49 0
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Purpose:
The purpose behind this analysis is to know aboutthe satisfaction ofthe Vodafone
customers regarding recharge outlets.
INFERENCE
Recharge outlets of Vodafone are majorly rated on very good and fairly good
basis. 72% ofthe respondents rate it asvery good, 17% rate it as fairly good, 9% rate it as
Excellent, 0% rate it Average and 0% respondents rate it as poor.
Call Rates:
9%
74%
17%
0% 0%
Recharge utlets
Excellent Very Good Fairly Good Average Poor
Service E cellent Very Good Fairly Good Average Poor
Recharge
Outlets
8 67 15 0 0
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Purpose:
The purpose behind this analysis is to know about the perception of vodafone
customers regarding different call rates.
INFERENCEMajor percentage of respondents are happy with the call rates of Vodafone. 59% of
respondents rate call rates of vodafone as Very good, 25% rate it as Farily good, 11% rate
it as Excellent while 6% and 1% respondent rate it as Average and poor respectively.
Value Added Services:
11%
57%
25%
6%
1%
CallRates
Excellent Very Good Fairly Good Average Poor
Service E cellent Very Good Fairly Good Average Poor
CallRates 10 52 23 5 1
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Purpose:
The purpose behind this analysis is to know about the perception of vodafone
customers regarding Value Added Services.
INFERENCE
Value added services of Vodafone are quite feasible as compared to some of the
other services. 43% respondents rate it as Very good, 24% rate it as Fairly good, 17% rate
it as Excellent while 10% and 1% rate it as Average and poor respectively.
Table no 14:-Table showing to know why other respondents do not use Vodafone serviceswith graph.
17%
48%
P 4%
10%
1%
Value AddedSer ices
Excellent Very Good Fairly Good Average Poor
Service E cellent Very Good Fairly Good Average Poor
Value Added
Services
15 43 22 9 1
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Table no 15:-Table showing to know the recommendations of the respondents towards
Vodafone, whetherthey would like to recommend the Vodafone services to others or not
with graph.
recommend Yes No
No. of
respondents
85 5
INFERENCE
Major number of customer recommend vodafone
services. 94% ofthe Vodafone customers would like to recommend Vodafone services to
others while 6% ofthe Vodafone Customers wont recommend to others.
94%
6%
No.ofrespondents
Yes No
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Findin s&Su estion:
Findings
Majority of the respondents using Vodafone services.
Majority of the respondents are aware about Vodafone Services available.
The respondents are more aware through word of mouth.
Most of the respondents are Vodafonecustomers and majority of them are new to
Vodafone services.
Majority of the respondents use prepaid services.
Majorityof the respondents use Vodafone services for reasons ranging from
Economicalto Easy to use purpose.
Here major respondents are youngsters so they mainly prefer and go for call rates
of Vodafone.
Majorityof the respondent connect with customercare for their queries and
complaints regarding services.
General plan is the most popular plan used by majorityof respondents
Majorityof respondents feel that Vodafone is reliableand prices are competent and
reasonable.
Majorityof the Vodafone customers would like to recommend Vodafone services to
others.
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Suggestions
Suggestions on the basis of study and observation made during the project. They might be
helpful for Vodafone to serve its customers in an improved way and also increase its
customer base in Davangere city:
Vodafone should decrease call rates for local users.It can be done on the basis of
type of usage.
Vodafone should introduce more schemes and offers for all categories.
Vodafone should introdused new SMS schems in their youth plans to meet the
challenges of its rivals.
Vodafone should provide more schemes and offers to its old customers in order to
retain them for the loyalty shown by them.
Vodafone should decrease call rates of STD and ISD to increase its subscriber base.
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Conclusion:
It was a learning experience studying the customer satisfaction towards
Vodafone services in Davangere city. Although it was not easy task collecting
information from the customers but it was also a challenging and interesting
one where I had real experience of customer inputs regarding a product.
From the above analysis, I would like to conclude that major respondents are
satisfied with Vodafone services like call rates, SMS rates and new schemes
& offer many of the respondents are satisfied with the services of Vodafone
and thus they would like to recommend Vodafone to others. Most of the
respondents are also satisfied with the network provided by Vodafone
Vodafone can improve its customer base by innovating variety of services to
its customer. Vodafone Super Weeks is one such example where they are
targeting youth for the online services through mobile phones. Its a strategy
which can get them to the market leader position in the coming year.
To conclude, Vodafone is growing because of satisfied customers with its
services and new and innovative plans for all categories of customers.