Vodafone-Idea:

Vodafone Idea Limited, also known as Vi, is an Indian telecommunications company with offices in
Mumbai and Gandhinagar. It is a pan-India integrated GSM operator that provides services in 2G, 4G,
4G+, VoLTE, and VoWiFi. VI has 271.90 million subscribers as of July 31, 2021, making it India's third
biggest mobile telecommunications network and the world's tenth largest mobile telecommunications
network. On August 31, 2018, Vodafone India and Idea Cellular combined to become Vodafone Idea
Limited, a new company. Vodafone presently owns 45.1 percent of the merged company, while Aditya
Birla Group owns 26 percent.
Vi also offers services such as mobile payments, enterprise products, and entertainment, which are
available through both digital and on-ground contact points at locations around the country. VI has a
340,000-site internet network and 1.7 million retail establishments in its distribution network.
 199 for customer service
 Ravinder Takkar, CEO (19 August 2019–)
 Kumar Mangalam Birla is the company's founder.
 Founded on August 31, 2018, with 13,520 workers (2021)
 Vodafone Group and Aditya Birla Group are the parent companies.
 Website: https://www.vodafoneidea.com/
 YOU Broadband India Limited is a subsidiary of YOU Broadband.

Mission
“Be the most loved brand by continuously raising the bar in delivering simple, delightful experience
and meaningful innovations, through new age technologies”

Vision
“Create world class digital experiences to connect and inspire every Indian to build a better
tomorrow”

SWOT Analysis
Threats
● Reliance Jio with better technology money and muscle power is already a
Disruptive force.
● Competition from Airtel, Reliance Jio, etc. is the main threat to Vodafone. Low
Tariffs of the competitors like Reliance Jio has made Vodafone take a big hit in
Terms of revenue as well as mobile subscribers
Strengths:
●Vodafone Idea is the leading mobile operator across rural areas of India with approximately
40% market share
●Established brand name
.●Highly capable telecom player bringing expertise from across the world to India.
●Strong network capabilities across the length and breadth of the country.
●Highly dominant with strong network capabilities in rural markets ahead of many other
players.
●Strong 4G presence in India
●Strong customer base and retail presence.

Weakness:
●Not been able to exploit the mobile wallet market even after m pesa is in place.
●Channel sales managers don't visit retailers often.
●Tendency to become a market follower rather than an aggressor or leader.
●Difficult in identifying new market trends targeting millennial lack of clarity of vision
(where is the company moving, what new offerings to highly connected millennial which is
enticing etc.).
●Unlike its competitors, Vodafone has failed to make its product and service portfolio a
success. Apart from the core mobile services business, Airtel has DTH and Broadband
service which are a success and aids in the company growth. But the same is not the case
with Vodafone, the company relies heavily on its core business only for growth and revenue
generation.

Opportunities:
●m pesa the mobile wallet could be a game changer, was launched before airtel mobile wallet
but lost steam midway.
●Try and bring market offensive strategies to target millennial like the new airtel postpaid
promise or Jio dhan Dhana dhan offers.
●Position the brand more towards the youth.
●One major issue that mobile users face is a call drop or bad/spotty network coverage and it's
one issue that none of the telecom providers have been able to solve. And this becomes a
good opportunity for the company to outdo its competitors and provide customers with a
better and seamless network.
●The relief package by the centre now allows a moratorium on the payments of dues for the
next four years. The government has further redefined AGR and will now not include non-
telecom revenues in it.
Threats:
●Reliance Jio with better technology money and muscle power is already a Disruptive force.
●Competition from Airtel, Reliance Jio, etc. is the main threat to Vodafone
Threats
● Reliance Jio with better technology money and muscle power is already a
disruptive force.
● Competition from Airtel, Reliance Jio, etc. is the main threat to Vodafone. Low
Tariffs of the competitors like Reliance Jio has made Vodafone take a big hit in
terms of revenue as well as mobile subscribers Financial Analysis
 Income Statement Analysis
• Operating income during the year fell 6.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 87.0% YoY during the fiscal.
Operating profit margins witnessed a growth and down at 7.3% in FY21 as
against 52.6% in FY20.
• Depreciation charges decreased by 2.9% and finance costs increased by 17.2%
YoY, respectively.
• Other income declined by 69.8% YoY.
• Net profit for the year declined by 40.1% YoY.
• Net profit margins during the year grew from 160.2% in FY20 to 105.0% in
FY21.
Balance Sheet Analysis
• The company's current liabilities during FY21 down at Rs 664 billion as compared to
Rs 958 billion in FY20, thereby witnessing an decrease of -30.7%.
• Long-term debt stood at Rs 1,574 billion as compared to Rs 963 billion during FY20,
a growth of 63.5%.
• Current assets fell 16% and stood at Rs 141 billion, while fixed assets fell 10% and
stood at Rs 1,894 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2,035 billion as against Rs
2,269 billion during FY20, thereby witnessing a fall of 10%.
Cash Flow Statement Analysis
• VODAFONE IDEA's cash flow from operating activities (CFO) during FY21
stood at Rs 156 billion, an improvement of 113.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 11 billion
on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -167 billion
on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -166 million
from the Rs -4 billion net cash flows seen during FY20.
 Current Valuations
 • Earnings per share (EPS) of the company stands at Rs -15.5, an improvement
from the EPS of Rs -25.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.1, stands at -1.1
times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.6
times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -1.4 times its end-of-
year operating cash flow earnings.

 Current Valuations
• Earnings per share (EPS) of the company stands at Rs -15.5, an improvement
from the EPS of Rs -25.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.1, stands at -1.1
times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.6
times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -1.4 times its end-of-
year operating cash flow earnings.

 Share Price Performance

• Over the last one year, VODAFONE IDEA share price has moved up from Rs
8.9 to Rs 10.1, registering a gain of Rs 1.2 or around 14.0%.
• Meanwhile, the S&P BSE TECK Index is trading at Rs 15,392.2 (down 1.3%).
Over the last one year it has moved up from 9,949.7 to 15,392.2, a gain of
5,442 points (up 54.7%).
• Overall, the S&P BSE SENSEX is up 50.0% over the year.

Marketing Analysis

“The brand has historically positioned itself by emphasizing the consumer experience. From
its first tagline, ‘An Idea Can Change Your Life,’ to its most recent, ‘Stay Connected,’ it has
positioned itself as a brand that connects people. All of this is still reflected in the company’s
newfound identity as V!”
S.T.P Marketing Strategy of Vodafone Idea
 • VI segments its offerings in mobile network services, enterprise services, and
broadband services using a combination of segmentation strategies. It makes use of
segmentation based on geography, demographics, and psychographics.
• VI’s various offerings are aimed at different segments of society. As a result, it
employs a selective and differentiated targeting strategy.
• VI’s ad campaign has been successful in raising brand awareness among
communication service providers all over the world. It employs value-driven
positioning strategies.
Vodafone Idea Marketing Mix
1. Vodafone Idea Product:
Idea Cellular, now VI is one of India’s leading telecom service providers. Its primary product
offerings are voice service, mobile Internet, and value-added services.
Prepaid and post-paid voice services are further subdivided.
Post-paid plans begin at a very low cost. V! Cellular is supplemented with various value
packs that aid in customer acquisition. Along with post-paid plans, ultimate plans, per-minute
plans, per-second plans, and combo plans are integrated. Plans such as start-up kits are very
appealing in the prepaid segment, which aids in bringing in new customers.
 
2. Vodafone Idea Price:
V! Cellular primarily focuses on competitor strategy in India’s competitive telecom sector.
Price is the whip hand used to survive in the cutthroat competition of India’s
telecommunications sector. Post-paid plans for voice services start at Rs.199.
The Idea, now V! Provides its customers with appealing ISD packages for post-paid services,
with pricing comparable to other service providers. Full talk time vouchers for prepaid
services start at Rs.100. Combo vouchers are priced differently than single vouchers. As a
result, they can take advantage of their customers’ willingness to pay.
V! Can maximize its profits in this way. The prices for value-added services are outrageously
high so that only those seeking luxury services are willing to pay a premium.
 
3. Vodafone Idea Place:
V! Has a tremendous amount of reach. People use V!’S services in almost every part of the
country. It is critical to be able to provide immediate customer service in the modern era. V!
Is able to accomplish this by always being available to customers through customer support. 
V! Cellule’s online portal allows customers to report issues. This portal also allows customers
to search for various packages, pay bills, and easily recharge their phones. The company’s
stores can be found in all major cities and all Indian states.
 
4. Vodafone Idea Promotion:
V! Devotes a sizable portion of its profits to advertising and promotion. The tagline
“Together for Tomorrow” is used by V! To promote its brand. The majority of V!’S
promotional projects involve television commercials. 
They have also sponsored various sports initiatives, such as cricket and football matches, to
help promote their brand over the years. For advertising, V! Employs a variety of mediums
such as television, online, print, billboards, and so on.
Since V! Is a service marketing brand it has an additional 3 P’s i.e. People, Process &
Physical Evidence. So let’s look at the additional 3 P’s of V!’S marketing mix below.
HR Analysis
Recruitment & Selection
VI’s recruitment and selection process is aligned with their business strategy, as they are in
the business of providing services and their market position is a leader with differentiations,
therefore when they recruit individuals on different seats, they have set of core competencies
that are required for each position and they check these while hiring someone.
Their selection process makes sure that the right person with right set of capacities and
attitude is selected. They have devised a set of such soft skills that are evaluated on each of
the hiring and these skills vary from position to position. For managerial level position they
make sure they hire someone with good analytical skill along with flare of leadership in them.
So in VI the entire selection process is linked with the corporate objectives.
Compensation & Benefits
Vodafone’s entire compensation and benefits are also linked with business strategy, their
remuneration systems and annual appraisal systems are derived from corporate strategy.
Training & Development
Training and Development is an important component of their human resource strategy. They
keep on adding value in their human resources by training them on hard skill and soft skill
whatever is required by the nature and role of the job. The processes start from identifying
the training needs of each of the department.

Learning
Human resource department of the organization put special emphasis on developing the
learning culture within the organization. Employees are encouraged to share their experiences
and learning with each other so that team members can have a learning culture in the
organization.
Career Building
Since attracting and retaining the quality employee is challenge for the organizations working
in today’s competitive market, therefore VI have the policy of having a clear and well defined
career path for each of their employee. This clarity of career path makes it clear for employee
 that where they should see themselves after spending different number of years in the
company. 
Empowerment
VI is working in competitive environment and to stay ahead of competition it is very
important for organizations to have the fast and correct decision making. Therefore the
human resource department put the special emphasis on empowering the employee for timely
decision making.
Performance Management & Employee Relations
Below we shall see that performance management is done in Vodafone, these lines will
presented the different methodologies and practices that are being adapted in the performance
management section of strategic HRM of company.
Retention
As it is very important for organizations working in competitive business environment,
Vodafone’s human resource practices also work in the same way, they try to retain their
quality employees to go to the competition. 

Domestic Market Size

Operators Subscribers in Millions Market Share (Sep'20)

JIO 404.12 35.3%

Airtel 326.61 28.5%

Vodafone-Idea 295.49 25.8%

BSNL 118.89 10.4%

Total 1145.11 100.0%