Plan & Strategy to make

Vodafone #1

Marketing Management project by:

Neha Vaze: IGTCPG28MU048
Niket Patil: IGTCPG28MU049
Omkar Kulkarni: IGTCPG28MU054
Shalini Singh: IGTCPG28MU077
Varun Pitre: IGTCPG28MU098
 TABLE OF CONTENT
EXECUTIVE SUMMARY

1. SITUATION ANALYSIS
1.1 Market Analysis
1.2Target Market
1.3 Market Needs
1.4 Market Growth
1.5 SWOT Analysis
1.6 Competition
1.7 Product Offerings

2 Marketing Strategies
2.1 Vision Statement
2.2 Mission Statement
2.3 Marketing Objective
2.4 Financial Objective
2.5 Strategies
2.6 Marketing Mix
2.7 Market Survey

3.Financial Projection

4 Implementation Analysis
 EXECUTIVE SUMMARY

• Effective August 31, 2018, Vodafone India Ltd. merged leading

to the creation of Vodafone Idea Limited, a partnership
between two strong promoters Aditya Birla Group and
Vodafone Group.

• Vodafone is now India’s second largest telecommunications

company offering voice, data, enterprise services and several
other value added services (“VAS”), including short messaging
services, digital services, content, and enterprise solutions.
• Vodafone has also successfully closed, India’s largest rights
issue offering of Rs. 25,000 crores with strong demand from
existing and new shareholders.

• Vodafone continues to focus on diligent execution of its stated

strategy to optimize the opportunities ahead. With its strong
spectrum portfolio, nationwide network footprint, aggressive
broadband investments and complementary brands –
Vodafone and Idea, is well placed to benefit from these
trends.
 1.SITUATION ANALYSIS
1.1 Market Analysis
Taking a hit
Vodafone idea has lost
considerable revenue market share Adjusted gross revenue market share* (in %)
in the last one year,
primarily to Reliance Jio Infocomm.
Reliance Jio Vodafone

32.8 32.1
31.6 31.6 31.5
29.8
27.8
26.2

*including national
long-distance service receipts

Source: Telecom Regulatory Authority of India,

SBICAP Securities

Q2 FY19 Q3 Q4 Q1FY20
• In the June quarter, Vodafone Idea was the only company to
post a sequential decline in revenues, while
competitor Reliance Jio Infocomm Ltd reported notable
expansion.
• Vodafone Idea’s market share dropped from 32.1% in the
quarter ended March 2019 to 27.8% last quarter
• After Vodafone Idea rolled rout monthly minimum recharge
plans for subscribers to stay on its network, its shrinking
subscriber base has led to an improvement in average
revenue per user (ARPU)
• The subscriber base declined to 320.0 million from 334.1
million in fourth quarter of financial year 2019 primarily due
to customer churn following the introduction of 'service
validity vouchers' in the prior quarter
1.2Target Market

• Geographic
• Demographic
• Vodafone has targeted the generation Z of 15-25 ages,
generation X & baby boomers by using different campaigns
over the period of time. In 2018, it had launched ‘Vodafone
‘U’ – a first of its kind, lifestyle proposition designed especially
for Young Indians, targeted at the socially active, rapidly
growing and increasingly demanding Indian youth, Vodafone
‘U’ offered a wide array benefits, delivered digitally and
accessible via the mobile to stay always connected with
friends, fun and the internet.
• Behavioural Patterns
• Based on the talking patterns, internet usage, Vodafone has
introduced various plans over the period of time.
• Vodafone two new plans for subscribers who love to talk,
prices for these are quite reasonable. The first plan has been
priced at Rs 205 and it offers 2GB data. The second plan costs
Rs 225 and it offers a validity of 48 days. Both the plans are
well suited for those who want greater call benefits
1.3 Market Needs

• Better network connectivity

• Increasing need of data
• Convenient customer service
• Digital experience
1.4 Market Growth

• India is currently the world’s second-largest

telecommunications market with a subscriber base of about
1.20 billion
• Moreover in the next five years, rise in mobile-phone
penetration and decline in data costs will add 500 million new
internet users in India, creating opportunities for new
businesses.
• The number of internet subscribers in the country is expected
to double by 2021 to 829 million and overall IP traffic is
expected to grow 4-fold at a CAGR of 30 per cent by 2021
1.5 SWOT Analysis

Strengths Weaknesses
1. Strong customer 1. Limited presence
base and retail in rural areas
presence 2. Mobile wallet
2. Established brand 3. High Debt
name and World-
4. Limited success
wide presence
outside core
business

Opportunities Threats
1. Better Rural 1. High competition
Market Penetrability 2. The retrospective
2. Growing Mobile tax case
and Internet users 3.Government
3. Better Network Regulatory
Coverage Framework
1.6 Competition

Market share of telecom companies in India

Reliance Jio
12%

32% Vodafone-Idea

Airtel India
26%

BSNL & MTNL

30%

Source: Telecom Regulatory Authority of India

1.7 Product Offerings
Vodafone Plans
Prices No of Days Data Offering
₹ 199 28 42 GB
₹ 169 28 28 GB
₹ 399 84 84 GB
₹ 458 84 126 GB
₹ 509 90 135 GB
₹ 209 28 25 GB
₹ 511 84 168 GB
₹ 569 84 252 GB
₹ 1699 365 550 GB

Jio Plans
Prices No of Days Data Offering
₹ 149 28 42 GB
₹ 399 84 126 GB
₹ 449 90 136 GB
₹ 349 70 105 GB
₹ 1699 365 550 GB
 2. Marketing Strategies
2.1 Vision Statement
Create world class digital experiences to connect and inspire every Indian to build a better
tomorrow.

2.2 Mission Statement

• Customers
Be the most loved brand by continuously raising the bar in delivering simple, delightful
experience and meaningful innovations, through new age technologies.
• Team
Be an inspirational, agile and exciting organisation that challenges the status quo, and
champions a diverse team that has a winning attitude and thrives on delivering customer
excellence.
• Shareholders
Be the most valued company through smart leadership committed to delivering
sustainable growth, while adhering to the highest standards of governance and compliance.
• Community
Be the most respected company by leveraging technology and purposeful innovation to
catalyse social prosperity, digital literacy and inclusivity.
2.3 Marketing Objective
• High TOMA (Top of mind awareness),
increasing ARPU (average revenue per user),
and customer pulls in the market.
2.4 Financial Objective
• Increase revenue quarterly
• Reduce variable costs to increase profit
margins
• Reduce profit margins to increase subscriber
base
2.5 Strategies
• Increase the data offering or decrease the price
• Nominal pricing and more distribution of sachet
packets
• Video on demand services in prepaid services
• More network towers to improve connectivity
• Ad campaign or brand ambassador
• Giving premium benefits to our exisiting
customer and taking feedback and surveys.
• To promote a strong brand image.
2.6 Marketing Mix

• Products
i. The products include the following:
ii. Vodafone branded phones
iii. Smartphones
iv. Voice and messaging services
v. Handsets
vi. Internet services
vii. Value added services
• Place
With strong network, and strong range
Vodafone is able to have strong distribution
network across the country.

• Promotion
The promotional strategy in the marketing mix
of Vodafone is to aggressively promote the
products of the brand through TV, print, online,
billboards
• Price
Vodafone prices its products in line with the
competitors in order to beat the competition.
Vodafone tries to deliver better services using its
core competencies at the same price as that of the
competitors. Its prices are according to quality of
the services.

• People
Vodafone has always ensured that its customers are
of the highest priority. It serves more than 400
million subscribers worldwide across 150 countries.
• Process
Vodafone lays a strong emphasis on processes as a
part of its service marketing mix.
Customer service is of high value for the processes
to be good, which is always looked after at
Vodafone

• Physical Evidence
As far as the physical evidence of Vodafone is
concerned, it is their Sim cards which are issued to
every customer. Apart from that recharge vouchers,
stores, and service outlets etc.
2.6 Marketing Survey
 3.Financial Projection

Quarter Income Total Expenses profits

Nov-Jan 13960 12772 1188
Feb-Apr 15705 13420.5 2284.5
May-July 17450 9742.5 7707.5
Aug-Oct 18322.5 14525.5 3797
 The Total Cost would amount to-
Particulars Cost (Rupees in Crores)
Zoo Zoo Advertisements 6
Mascot Advertisements 4
Brand Ambassador 90
Newspaper/ Social Media/ Banners/ 100
Hoardings/ TV Ads
Ads in malls and multiplex 50
Sponsorship to a IPL team 50
Total 300

Estimated Income Statement of 1st quarter after the implementation of above strategies

Particulars Rupees in Crores

Income from Subscriptions 13960 (Rs.349*400m Subscribers)

Expenses/ Cost Reduction-

Price Reduction (2000)
Amazon Subscriptions (3600)
Construction of Network Towers (1500)
Ad Campaigns (75)
Premium Benefits (1137.5)
Cost of Pugs and Dogs (Including the (17)
salary of Dog-Keeper)
Other expenses 4443
Estimated Profits 1188
• Estimated Income Statement of 2nd quarter after the implementation of above
strategies
Particulars Rupees in Crores
15705 (Rs.349*450m
Income from Subscriptions
Subscribers)

Expenses/ Cost Reduction-

Price Reduction (2250)
Amazon Subscriptions (4000)
Construction of Network
(1500)
Towers
Ad Campaigns (75)
Premium Benefits (1137.5)
Cost of Pugs and Dogs
(Including the salary of Dog- (15)
Keeper)
Other expenses 4443
Estimated Profits 2284.5
• Estimated Income Statement of 3rd quarter after the implementation of above
strategies-

Particulars Rupees in Crores

Income from Subscriptions 17450 (Rs.349*500m Subscribers)

Expenses/ Cost Reduction-

Price Reduction (2500)
Amazon Subscriptions (4515)
Construction of Network Towers (1500)
Ad Campaigns (75)
Premium Benefits (1137.5)
Cost of Pugs and Dogs (Including
(15)
the salary of Dog-Keeper)
Other expenses 3264.5
Estimated Profits 7707.5
• Estimated Income Statement of 4th quarter after the implementation of
above strategies-

Particulars Rupees in Crores

Income from Subscriptions 18322.5 (Rs.349*525m Subscribers)

Expenses/ Cost Reduction-

Price Reduction (2625)
Amazon Subscriptions (4740)
Construction of Network Towers (1500)
Ad Campaigns (75)
Premium Benefits (1137.5)
Cost of Pugs and Dogs (Including
(15)
the salary of Dog-Keeper)
Other expenses 4443
Estimated Profits 3797
 4. Implementation Analysis
• Construct the towers in a short span
• Advertise their new offerings before festivals and
the sports events
• The advertisement in the form of banners and
hoardings
• Launching a promo event with our brand
ambassador
• Creating new zoo zoo ads
• Vodafone should sponsor one of the Indian
Premier League Team
Thank You