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Final Project
INDUSTRY PROFILE
1.1 Introduction:
The Indian telecommunications industry is one of the fastest growing in the
world. Government policies and regulatory framework implemented by
Telecom Regulatory Authority (TRAI) have provided conducive environment
for service providers. This has made the sector more competitive, while
enhancing the accessibility of telecommunication services at affordable tariffs
to the consumers. In the last two decades, the Indian telecom sector and
mobile telephony in particular has caught the imagination of India by
revolutionizing the way we communicate, share information; and has helped
millions stay connected.
1.2 History of the
industry:
The major milestones in the development of telecom industry are as follows:
telegraph station
established
Chain beam
stations
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Inaugurated
by
King George V.
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1960
First subscriber
trunk
dialing route
commissioned
1975
commissioned
1979 First optical fibre system for local junction commissioned at Pune.
1983
Program
Control
exchange
for trunk
1984
C-DOT established
for
indigenous
development and
production
of digital exchanges.
Telecom Regulatory Authority of India (TRAI) has revealed that the country's mobile
subscriber base has increased from 893.84 million in December 2011 to 903.73
million in January 2012.
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Telecom users in rural areas have grown at a faster pace compared to their
urban counterparts in the last five years, a CAG report said.
India added around 20 million subscriptions of the estimated 140 million net
additions in mobile subscriptions across the world during the April-June quarter
in
2012, said a report by Ericsson.
The telecom sector is a very capital intensive sector and involves high value
investments. Correspondingly, the mobile phone industry is also experiencing a parallel
upward surge, and a parallel enhancement in technologies used. With the liberalization
of the Indian economy, the telecom sector has become very attractive for mergers and
acquisitions latest being SingTel increasing its stake in Bharti telecom.
1.4 Future Goals of the industry:
With an ambition to be diesel free by 2020, telecom companies are retrofitting their
towers every year. Many telecom tower companies currently use renewable energy
sources such as solar, biogas and wind besides hydroelectric power, for individual
towers. Bharti Airtel, one of the largest telecom service providers in India, has been
testing and implementing various energy saving options for the last two-three years.
Additionally, the e-bill initiative is estimated to save as many as 24,000 trees a year.
Besides, the metro cities and the urban markets are quite saturated in terms of teledensity and thus, leaving very little scope in terms of new customer acquisition. Lack of
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proper telecom infrastructure, power shortage and lack of trained manpower are
some of the challenges which telecom companies have to cope with.
1.5 Key players:
The telecom industry of India has registered manifold growth in the recent years.
Personalized telecom access is essential necessity of life for increasing number of
the people. The sector offers unlimited prospects when we consider future growth.
Both Public Players and Private Players are enhancing their technologies and taking
the telecom industry to a much higher growth state. The top players in the industry
are:
1. Vodafone
2. Bharti Airtel
3. BSNL
4. MTNL
5. Reliance
6. Aircel
7. Uninor
8. Idea Cellular
9. Tata
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2. COMPANY PROFILE
2.1 Introduction
Vodafone Group the world specialist in mobile phones is one of the rare groups that
have significant world coverage in the telecommunications field. It principally
specializes in the mobile telephony and telephonic transmission network sectors. It has
subsidiaries in numerous countries: In North and South America, Asia, Oceania and
Africa. It is the world's second-largest mobile telecommunications company
measured by both subscribers and 2011 revenues. It has over 439 million customers
calculated on a proportionate basis in 31 countries and the brand is present in a further
40 countries through partnership networks.
Vodafone India started its operations in India in 1994 and is under the Vodafone
Group. Vodafone India has become one of the leading companies in the telecom
sector in India due to its high standard of services that it provides to its customers. It is
based in Mumbai, Maharashtra and operates nationally. The company has its
operations in 26 telecom circles of the country, which covers around 86% of the
customer mobile base in India. The company offers both postpaid and prepaid GSM
cellular mobile coverage all across India and its hold is especially strong in the
metropolitan cities. Vodafone India launched 3G services in the country in the JanuaryMarch quarter of 2011.
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Post-paid Service where in the customer has to pay first and then utilize this
service for as much as he has paid.
Pre-paid Services Where in the customer uses the service first and then he
pays for it. This is more or less like the normal landline connection
Home Calling Cards: Vodafone Home Calling Card is a Pre-paid calling card
that allows one to make calls from landlines, PCOs &mobile phones from over
100 countries. And helps save up to 90% as compared to International Roaming
charges.
Handy phone: Handy phone is a landline thats loaded with all the features of
a cell phone - including low call rates.
2. Value Added
services
Entertainment
Devotional
Sports
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Astrology
Finance
Travel
Dial in Services
Bill Info
3. Vodafone Live
4. Corporate Services
Data Access
Business Application
Vodafone Office
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The distribution Model comprises basically comprises of three entities1. A distributor who is given a territory to service.
2. A Distributor FOS (Feet on Street 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
FOS of his area and sells it to the end consumer.
Other channels like Company owned Retail such as Vodafone mini-stores are also
used as Distribution channel and are generally seen to be contributing to around 1015
% of a telecom company's subscriber base as well as revenues.
2.4 Promotion Strategy:
Marketing or Promotion strategy is a key part of overall corporate strategy, which is
concerned with developing plans for finding out what customers want and then
efficiently meeting their requirements. Vodafones strategy is customer focused and
product led; the company is continually developing new products and services which
utilize the latest technological advances. To keep its leading edge, Vodafone is
continually looking to add value to the services it
provides and to
campaign
for
its
various
plans.
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added services (VAS) offered by Vodafone. This strategy has captured the imagination
of millions. It has created a new wave in the advertising industry. Such a promotion
strategy has helped the company to raise not only its profits through sales but has also
tremendously increased its brand value. Their add campaign has gained much
popularity all over the world. With the popularity of ZooZoos, Vodafone has succeeded
in its effort of viral or buzz marketing.
2.5 Customer base
Following is the Vodafone India subscriber base statistics as on January, 2013.
Telecom Cicle
No. of Subscribers
Gujarat
15,801,116
Uttar Pradesh(East)
14,526,236
Maharashtra
12,977,123
W est Bengal
11,165,667
Tamil Nadu
9,777,927
Rajasthan
8,565,366
8,999,073
Andhra Pradesh
6,080,916
Delhi
8,449,120
G oa
7,134,576
Karnataka
6,452,620
Kerala
6,067,506
Bihar
6,381,278
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Kolkata
4,084,284
Punjab
4,309,853
Haryana
4,437,015
Madhya Pradesh
4,101,877
Chennai
2,091,411
Orissa
2,789,575
Assam
2,188,073
North East
928,563
666,009
Himachal Pradesh
475,329
Mumbai
6,160,353
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f. TATA- 8.77%
g. Aircel-6.93%
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Strengths:
1. One of the most popular and trusted cellular service provider in India
2. One of the largest Telecom operators in the world.
3. Only Indian operator that has an international submarine cable.
4. High brand visibility.
5. Strong advertising with ZooZoo concept.
6. Tie-up with international sports like Formula One.
Weaknesses:
1. Price competition from BSNL and MTNL
2. Untapped Rural Market
Opportunities:
1. Fast expanding cellular market
2. Latest and low cost technology
3. Untapped rural market
Threats
1. New entrant's low price offering
2. Saturation point in Basic telephony service
3. Mobile Number Portability
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increase its market share as well as brand loyalty. This study helps to find out the
factors affecting purchasing behavior of telecom products and to know customers
opinion regarding the services offered by Vodafone services.
The following are the areas of interest:
1. Are the Vodafone users satisfied with services, new schemes and
offers?
2. Do the customers find current call rates suitable?
3. Are the customers satisfied with the network coverage?
4. Do the customers think that services of customer care are
proper?
5. Which services need to be improved?
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4. LITERATURE SURVEY
The summary of available literature on customer satisfaction is as follows:
4.1 Concept:
Customer satisfaction is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is defined as
"the number of customers, or percentage of
total customers, whose reported experience
with a firm, its products, or its services
(ratings)
exceeds
specified
satisfaction
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brand has loyal customers, it gains positive word-of-mouth marketing, which is both
free and highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction. To
be able do this, firms need reliable and representative measures of satisfaction.
In the words of David J. Reibstein ,"In researching satisfaction, firms generally ask
customers whether their product or service has met or exceeded expectations. Thus,
expectations are a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed and will likely rate
their experience as less than satisfying."
4.2 Measurement:
Organizations need to retain 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.
According to Neil T. Bendle, Customer satisfaction is measured at the individual level,
but it is almost always reported at an aggregate level. It can be, and often is, measured
along various dimensions. A hotel, for example, might ask customers to rate their
experience with its front desk and check-in service, with the room, with the amenities in
the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel
might ask about overall satisfaction 'with your stay.
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
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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.
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.
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. Their satisfaction is generally measured on a five-point scale.
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To study problems faced by customers of GSM and CDMA technology for cellular
services users.
To find out the problems and other issues regarding mobile services.
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6. RESEARCH METHODOLOGY
A systematic and organized methodology was used for the research study. A survey
design was used to obtain the required information. Respondents were selected in
such a way that data from every age group, gender etc. could be analyzed. The
questionnaire was intricately designed to tap the demographic variables including age,
education, gender etc of the respondents. The questionnaire also helped to gather
information about demographics, attitudinal knowledge level, satisfaction level and
behavioral information from the respondents.
Following are
Methodology:
the
important
elements
of
Research
Research design:
The study conducted is exploratory cum descriptive. Structural questionnaire was
prepared to conduct the research. It contained questions regarding age, occupation,
contact information etc. It also included multiple choice questions regarding Vodafone
services. The questionnaire used to collect information is given in the Annexure.
Scope of the study
The scope of the study is confined to Pune.
Population:
The population for this study comprised of existing customers of Vodafone.
Sample size:
A sample size of 100 was chosen for this study.
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Sampling Techniques:
Sampling technique used in this research is non-probability sampling. In non probability
sampling, members are selected from the population in some non random manner. Out
of the entire population of entire Pune area 100 customers were chosen as per
convenience and judgment sampling.
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7. ANALYSIS
7.1 Age analysis:
Purpose: The main purpose of this analysis is to know how many respondents belong
to a particular age of group. Following is the analysis of data collected:
S.no.
Age
No. of respondents
Percentage
Below 18
2%
18-25
54
54%
26-50
38
38%
51 or above
6%
2
%
6
%
Below 18
38%
18-25
54
%
26-50
51 or above
Interpretation: Major respondents are youngsters i.e. 54% of the respondents belong
to age group of 18-25, 38% respondents belong to age group of 26-50, 6% of
respondents belong to 51 or above age group while only 2% of the respondents
belong to age group of below 18 years.
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Sources
No. of respondents
Percentage
Advertisements
36
36%
Hoardings
29
29%
Newspapers
20
20%
Mouth Publicity
15
15%
15%
36
%
20%
Advertiseme
nts
Hoardings
Newspapers
Mouth Publicity
29
%
Interpretation: 36% of the respondents got the information about Vodafone through
Advertisements, 29% got it through Hoardings while 20% and 15% of the respondents
got information from Newspapers and Mouth Publicity respectively.
No. of respondents
Percentage
14
14%
2-6 months
22
22%
6-12 months
25
25%
39
39%
14
%
Less than 1
39%
month
22%
2-6 months
6-12 months
More than 1 year
25
%
Interpretation: Major Respondents using Vodafone are old customers. 39% of the
respondents are using Vodafone services from more than 1 year while the lowest
is
S.No.
Services
No. of respondents
Percentage
Pre-Paid
74
74%
Post-paid
26
26%
26%
Pre-Paid
Post-paid
74
%
Interpretation 74% of the respondents use pre-paid services while only 26% of the
respondents use post-paid services.
S.No.
Services
Call
21
21%
SMS
37
37%
Network
28
28%
14
14%
14%
21%
Call Rates
SMS
services
28%
Network
Value Added services
37
%
Interpretation: Here major respondents are youngsters so they mainly use SMS
services of Vodafone. 37% of the respondents use Vodafone for SMS services while
only 14% of the respondents use Vodafone for Value Added Services.
Time Period
No. of respondents
Percentage
Daily
7%
Once a week
16
16%
Once a month
31
31%
Occasionally
46
46%
7
%
16
%
46%
Daily
Once a
week Once
a month
Occasionall
31%
Opinion
No. of respondents
Percentage
Yes
37
37%
No
63
63%
37
%
Yes
No
63%
Interpretation: Out of 100 People 37% are of opinion that postpaid services
are effective and 63% feel that the postpaid services of Vodafone are not effective.
Mode of Payment
No. of Respondents
Percentage
Cash
11
42%
Credit card
35%
Debit Card
23%
23%
42%
Cash
Credit card
Debit Card
35%
Interpretation: Out of 26 post paid users, 42% users pay the bills by cash, 35% pay
by credit card and 23% by debit cards.
Reasons
No. of respondents
Percentage
17
17%
Information
new 19
19%
regarding
Schemes
3
Complaining
34
34%
Other queries
30
30%
17
%
30%
19%
Information
regarding new
schemes
Complaining
Other queries
34%
Interpretation: 34% of respondents call at customer care for complaining purpose while
30%, 19% and 17% of respondents call customer care for other queries,
information regarding new schemes and value added services respectively.
Service
Excellent
Very Good
Fairly Good
Average
Poor
Network
36
33
20
Network
Quality
3
%
8
%
36
%
20%
Excellent
Very
Good
Fairly
Good
Average
Poor
33
%
Interpretation: Here major respondents are satisfied with the network coverage. 36% of
the respondents rate the Vodafones network excellent, 33% rate it very good,
20% rate it fairly good while 8% and 3% rate it average and poor.
Opinion
Excellent
Very Good
Fairly Good
Average
Poor
SMS Rates
22
40
28
SMS
Rates
3
%
7
%
22
%
28%
Excellent
Very
Good
Fairly
Good
Average
Poor
40
%
Interpretation: Here major respondents are quite satisfied with the SMS rates of
Vodafone as major respondents are youngsters. 7% of respondents rate it excellent,
22% rate it very good, 40% rate it fairly good, 28% rate it average, 3% rate it poor.
Excellent
New schemes 3
Very Good
Fairly Good
Average
Poor
16
31
38
12
and offers
16%
Excellent
Very
Good
Fairly
38%
31
%
Good
Average
Poor
Interpretation:
Here major
respondents find
new schemes
and
offers
of
Vodafone average. 38% respondents rate new schemes and offers as average, 31%
respondents rate it as fairly good, 16% rate it as very good while 12% and 3% rate it as
poor and excellent respectively.
Opinion
Excellent
Very Good
Fairly Good
Average
Poor
Customer
37
33
17
Care
Customer
Care
6%
7%
17%
Excellent
Very
37
%
Good
Fairly
Good
Average
Poor
33%
Excellent
Very Good
Fairly Good
Average
Poor
Recharge
14
32
36
16
Outlets
Recharge
Outlets
2
%
16%
14%
Excellent
Very
Good
32
%
36%
Fairly
Good
Average
Poor
Interpretation: Recharge outlets of Vodafone are majorly rated as fairly good and very
good. 36% of the respondents rate it as fairly good, 32% rate it as very good, 16% rate
it as average, 14% rate it excellent and 2% respondents rate it as poor.
Excellent
Very Good
Fairly Good
Average
Poor
Call Rates
23
49
22
Call
Rates
4%
2%
22%
23
%
Excellent
Very
Good
Fairly
Good
Average
Poor
49
%
Interpretation: Major percentage of respondents find Call rates offerd by Vodafone fairly
good. 49% of respondents rate call rates of vodafone as fairly good, 23% rate it as
very good, 22% rate it as average while 4% and 2% respondent rate it as poor and
excellent respectively.
Opinion
Value
Excellent
Added 10
Very Good
Fairly Good
Average
Poor
28
33
22
Services
Value Added
Service
7%
10%
Excellent
22%
28
%
Very
Good
Fairly
Good
Average
Poor
33
%
Opinion
No. of Respondents
Percentage
Satisfatory
72
72%
Not Satisfactory
28
28%
Overall
Satisfaction
28%
Satisfatory
Not Satisfactory
72
%
Reasons
No. of respondents
Percentage
Lack of awareness
16%
High Prices
13
46%
Poor Services
23%
Poor Network
15%
15%
16%
Lack of awareness
High Prices
Poor
23%
services
Poor
Network
46
%
S.No.
Opinion
No. of Respondents
Percentage
85
85%
15
15%
15%
Yes, I will
recomme
nd
No, I wont
recomme
nd
85
%
8. CONCLUSIONS
8.1 Findings:
Following are the important findings of this research:
Survey reveals that most of the customers are ready to change their service
provider given a better deal in terms of tariff plan and the value added services.
8.2 Suggestions:
Following are some of the suggestions given by the researcher so that Vodafone
can serve people and its customers in an improved way:
Vodafone should decrease call rates for local users (like Tata indicom and Uninor).
Company should take customers feedback by sending a feedback form along with
the bill.
It should try to target proper segment of population with the proper plans.
8.3 Conclusions:
From the above analysis it can be concluded that major respondents are satisfied with
many services offered by Vodafone. Vodafone has made a great impact in India in a
short span of time. It has become a very popular brand. It has impressed lot of Indian
mobile users. But there is a scope of improvements in the following areas:
Vodafone is doing well in prepaid section and is growing in this section. But it
can increase its profitability by increasing the postpaid users.
By making improvements, Vodafone can increase its market share and acquire the
topmost position in the Indian telecommunication industry.
9. BIBLIOGRAPHY
Websites:
www.vodafone.in
En.wikipedia.org/wiki/vodafone-india
www.globus.com
www.stapac.com
Books referred
Journals
ANNEXURE
QUESTIONNAIRE
Name:
Age:
years
Sex: Male/Female
Contact no.:
Excellent
Network
SMS rates
New
schemes
and
offers
Customer Care
Recharge outlets
Call Rates
Value Added Services
Average
Poor