SUMMER TRAINING PROJECT REPORT

ON

CUSTOMER SATISFACTION TOWARDS

VODAFONE WITH RELATION TO
LUCKNOW

Towards partial fulfilment of

Master of Business Administration (MBA)
School of Management, Babu Banarasi Das University, Lucknow
Submitted by
Mohd. KABEER
IIIrd Semester
Roll No: 1140672070

Session 2015-2016

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

Certificate from the Organization

Bona-fide Certificate of Dean -School of Management

2

DECLARATION
I do hereby declare that the research report titled CUSTOMER SATISFACTION TOWARDS
VODAFONE SERVICES IN LUCKNOW CITY submitted by me in partial fulfilment of
3

the requirement of Master of Business Administration, exclusively prepared and

conceptualized by me and is not submitted to any other Institution or University or published
anywhere before for the reward of any Degree/Diploma/Certificate. It is the Original work of
mine and has not been obtained from any other part.

MOHD. KABEER
MBA (3rd Sem.)

ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the people concerned and this
particular project is of no exception.
A project of the nature is surely a result of tremendous support, guidance, encouragement and
help.
Wish to place on record my sincere gratitude to my project guide Mr. SAURABH GUPTA,
Babu Banarasi Das University, Lucknow. I thank him for constructive help and
encouragement throughout the project. Without her support and guidance taking this would not
have been possible.
Also, wish to acknowledge enthusiastic encouragement and support extended to me by my
family members.
Im also thankful to my friends who provided me their constant support and assistance.

MOHD. KABEER
MBA (3rd Sem.)

EXECUTIVE SUMMARY
Life is a long journey, wherein each one of us crosses number of milestones. Every stoppage
teaches us a lot. I, being the student of management, learnt a plethora of things and was being
bombarded with lots of learning, events, projects, and seminar.
The two-year full time program of management course helped in lots of learning. Such has been
the presentations and projects which enhanced our learning by adding on to our world of
knowledge. And summer training is one of the part to enhance our business skills.
It was a life time experience for which I thank to all the staff members of VODAFONE, my
guide, faculty members, administration of the Babu Banarasi Das University, Lucknow.

Content sequence of the Summer Training Report

Certificate from the Organization

Bona-fide Certificate of Dean -School of Management
Declaration
Acknowledgement
Executive Summary
Chapters
Part I
1. Introduction
2. Company profile
a. About organization
b. Organization chart
c. Aims and objectives
d. Any specific information of the organization
Part II
3. Objectives of the study
4. Research Methodology
a. Method of data collection
b. Data Source
c. Sample design
d. Universe
e. Sample type
f. Sample size
g. Sample Unit
h. Hypothesis (if any)
i. Statistical tools to be used
5. Problems and Limitations
Part III
6. Data Analysis & Interpretations
7. Findings
8. Suggestions/Recommendations
9. Conclusion
10.Bibliography (any reading material referred to while preparing
the report)
11.Appendix (any supporting document taken for analysis say
questionnaire, advertisement material, organizations secondary
data)

TITLE PAGE
TOPIC

PAGE NO.

Certificate from the Organization

Bona-fide Certificate of Dean -Schoolof

Management
Declaration
Acknowledgement
Executive Summary

4
5
6

PART - I --- Introduction

Indian Telecom Industry
Market Size

Company Profile
Vodafone India
History
Subscriber Base
Services

11
13
19
29
39
42

Customer Satisfaction
Supply Chain at Vodafone

60

Market Mix of Vodafone

66

Porters Five Forces Model

68

Vodafone Marketing Campaigns

73

SWOT Analysis

79

PART II

Objective of the Study

83

Research Methodology

84

Limitations

86

Data Analysis

88

PART - III

Findings

113

Recommendations

115

Conclusions

116

Bibliography

117

Questionnaire

119

PART-I

10

INTRODUCTION: INDIAN TELECOM INDUSTRY

Telecom services have been recognised the world over as an important tool for socio-economic
development of a nation. It is one of the prime support services needed for rapid growth and
modernisation of various sectors of the economy. India is currently the worlds second-largest
telecommunications market and has registered exceptional growth in the past few years. The
reasons for growth of the telecom sector in India are reform measures by the Government of
India, active participation of the private sector, and wireless technology.
The National Telecom Policy 2012 (NTP-2012) was announced with the objective to maximise
public good by facilitating reliable, secure and affordable telecommunication as well as
broadband services in India. This along with the deregulation of foreign direct investment (FDI)
norms have made the telecommunications sector one of the fastest growing and a top five
employment opportunity generator in the country. The telecommunications sector attracted FDI
to the tune of US$ 14,163.01 million (902954275350.00 INR) in the period April 2000 March
2015.

11

Communications in India
Revenue (Total)

USD 33,350
million(2126344307500.00 INR)
Telephony

Telephone Subscribers (Total) (2014)

915.19 million (December 2014)

Fixed lines (December 2014)

28.89 million

Mobile phones (2014)

886.3 million

Monthly telephone additions (Net)

5.5 million

(December 2014)
Teledensity (2014)

74.02%

Rural Teledensity

42.67%
Internet access

Per cent household access (total), 2014

10.2% of households (137 million)

Per cent broadband household access

1.18% of households (14.31

million)

Broadband internet users

55.20 million (December 2013)

Internet Service Providers (2014)

155
Broadcasting

Television broadcast stations (2009)

1,400

Radio broadcast stations (1997)

800

MARKET SIZE
12

Telecommunications is one of the prime support services needed for rapid growth and
modernisation of various sectors of the economy. Driven by strong adoption of data consumption
on handheld devices, the total mobile services market revenue in India will reach US$ 29.8
billion in 2014 and is expected to touch US$ 37 billion (2359858150000 INR) in 2017,
registering a compound annual growth rate (CAGR) of 5.2 per cent, according to research firm
IDC.
According to a study by GSMA, it has been expected that smartphones will account for two out
of every three mobile connections globally by 2020 and India is all set to become the fourth
largest smartphone market.
India is projected to have 213 million mobile internet users by June 2015, a 23 per cent rise over
a six month period, according to Mobile Internet in India 2014 report.
The broadband services user-base in India is expected to grow to 250 million connections by
2017, according to the UK-based GSM Association (GSMA).
India saw the fastest growth in new mobile-phone connections with 18 million net additions in
the third quarter of 2014, followed by China with 12 million new additions, according to a report
by Swedish mobile network equipment maker Ericsson.
The Indian telecom sector is expected to create four million direct and indirect jobs over the next
5 years on the back of the governments efforts to increase penetration in rural areas along with
the growth in the smartphone numbers and internet usage, according to estimates by Randstad
India. The telecom sector has been growing aggressive at an average for 35 per cent a year for
close to two decades, said Mr K Uppaluri, CEO, Randstad India.

WIRELESS MARKET SHARE IN INDIA

13

COMPOSITION OF TELEPHONE SUBSCRIBERS IN INDIA

INVESTMENTS

14

With daily increasing subscriber base, there have been a lot of investments and developments in
the sector. The industry has attracted FDI worth US$ 16,994.68 million ( 1084005663800 INR)
during the period April 2000 to January 2015, according to the data released by Department of
Industrial Policy and Promotion (DIPP).
Some of the major developments in the recent past are:

Sterlite Technologies Ltd has announced an annual seed fund of US$ 100,000(63785000
INR) to strengthen Indias investments in broadband technology research, by investing in
Indian start-ups, working on innovative broadband deployment technologies.

Maxx Mobilink plans to start production of mobile handsets at its Haridwar plant,
beginning with assembling devices from April 2015. Maxx will invest over US$
965,615.810 (61591752.77 INR) initially in setting up the R&D laboratory.

Huawei Technologies has won two contracts worth a combined US$ 120
million(7654200000INR) from Bharti Airtel and Idea Cellular to upgrade their wire line
networks. Tata Communications has invested in acquiring capacity in Seabras-1, a
submarine cable being developed between the US and Brazil, seeking to increase services
in the Latin American region.

Bharti Airtel and IHS Holding have signed an agreement under which latter will acquire
about 1,100 telecom towers across Zambia and Rwanda.

Ericsson has won a seven-year deal worth more than US$ 1 billion ( 63785000000INR)
to manage the network of Reliance Communications across 11 service areas, making the
Swedish telecom gear maker the only service provider to manage the pan-India network
of a mobile phone operator.

GOVERNMENT INITIATIVES
15

The government has fast-tracked reforms in the telecom sector and plans to clear the proposal
allowing spectrum trading and sharing ahead of the year-end deadline as it wants to lift the
business sentiment for the forthcoming airwave auction. Some of the other major initiatives
taken by the government are as follows:

The Government of Uttar Pradesh (UP) has secured investment deals valued at Rs 5,000
crore (US$ 804.64 million) for setting up mobile manufacturing units in the state.

The Government of India plans to roll out free high-speed wi-fi in 2,500 cities and towns
across the country over the next three years and the programme, involving an investment
of up to Rs 7,000 crore (US$ 1.12 billion), will be implemented by state-owned Bharat
Sanchar Nigam Ltd (BSNL).

Citizens of India are expected to get a minimum of 2 megabits per second (MBPS) Wi-Fi
speed at every government owned service point such as railways stations, airports, bus
stops, hospitals and all government departments that deal with the public on a daily basis.

The Union Cabinet of India has approved the largest ever telecom spectrum auction that
is targeted to fetch at least Rs 64,840 crore (US$ 10.43 billion). The government will sell
380.75 megahertz (MHz) of second generation (2G) spectrum in three bandsthe
premium 900 MHz, 1800 MHz and 800 MHz.

To speed up the national optical fibre network (NOFN) project, the Department of
Telecommunications (DoT) has advised officials to use public buildings such as post
offices, railway stations and schools.

The Government of Kerala has decided to allow mobile telecom service providers to set
up towers on government land and buildings. This is the first time that a State
Government has opened its own land, buildings and offices to mobile companies.
16

ROAD AHEAD
India will emerge as a leading player in the virtual world by having 700 million internet users of
the 4.7 billion global users by 2025, as per a Microsoft report.
With the governments favourable regulation policies and 4G services hitting the market, rapid
growth is expected in the Indian telecommunication sector in the next few years. Also, with
developments in this sector, services such as security and surveillance, remote monitoring of
ATM machines, home automation, traffic management, retail, logistics and grid energy could
eventually facilitate optimisation of resources.
Exchange Rate Used: INR 1 = US$ 0.02 as on JULY 24, 2015

17

COMPANY
PROFILE

18

VODAFONE INDIA

Vodafone India Ltd. is the second largest mobile network

operator in India by subscriber base, after Airtel. It is
headquartered

in

Mumbai,

Maharashtra. It

has

approximately 173 million customers as of September 2014.

It

offers

both prepaid and

postpaid GSM

cellular

phone coverage throughout India with better presence in the

metros.
Vodafone India provides 3G services on basis of 900 MHz and 1800 MHz digital GSM
technology. Vodafone India launched 3G services in the country in the JanuaryMarch quarter of
2011 and plans to spend up to $500 million (31892500000 INR) within two years on its 3G
networks. Vodafone added maximum subscribers in July 2014, with 13.6 lakh new users joining
its network to take its base to 17.12 crore. Vodafone is the second largest player in telecom
operator in India after Airtel, with a market share of 22.95%.

19

VISION & MISSION

Vodafone Group Vision

Our Vision is to be the communication leader in an increasingly connected world.

Vodafone India Mission

Vodafone will enhance value for its stakeholders and contribute to society by providing
our customers with innovative, affordable and customer friendly communications
services.

Through excellence in our service we aspire to be the most respected and successful
telecommunications company in India.

We see our customers, employees, shareholders and the community we operate in as our
most important shareholders.

We Enhance Value through

Delivering affordable, reliable and customized communication services which are simple
to use, enjoyable, seamless and secure.

Our Customers Respect us because

We understand their needs

We create innovative services

We consistently deliver on what we promise

We provide a secure and reliable network

We offer affordable products and services

We define Success as

Delighted customers who recommend us to others

20

AWARDS AND RECOGNITION

The Brand Trust Report, 2011 published by Trust Research Advisory has ranked Vodafone as the
16th most trusted brand in India.

Voice and Data Telecom Leadership Awards, 2013 (March 2014)

Vodafone India (Customer Service Team) receives Aegis Graham Bell Award
2014 for Innovation in Mobile Education through Gamefication (award received for
Zentian Game used for training employees on mobile internet).

Aegis Graham Bell Awards for Service Innovation

Marten Pieters receives a special recognition award of Excellence atET Telecom Awards
2014 for his outstanding contribution to the Telecom Industry. Award presented by Shri
Ravi Shankar Prasad, Union Minister of IT and Telecom.

Marten Pieters recognised as INFOCOM 2014 CEO of the Year by ABP Group in the
category of Telecom/Communications. This award is for his exceptional vision,
creativity, business acumen and extraordinary contributions to the development of the
Indian ICT industry.

Kumar Das, General Counsel, Vodafone India awarded as one of the six In-House
Counsel of Distinction in the Emerging Markets Awards by The Asian Lawyer, sister
publication of American Lawyer.

Vodafone India receives Top MNC for Leaders in India 2014 award study conducted
by AON Hewitt in partnership with Economic Times.

TV Ramachandran receives Honorary Fellowship of the IET, London.

21

Vodafone is Indias Most Admired Marketer recognised by Economic Times Brand

Equity Agency Reckoner Study 2014.

Global ET Telecom Awards 2013 Excellence in Marketing

Among the top 100 online influencers in India - MSL Group research

Gold in the Communication and Utilities Category at the DMA, Echo India Awards

Won Silver at Asian Marketing Effectiveness Awards

Ashok Ramchandran conferred with Seasoned HR Professional Award by National

HRD Network at the NHRDN National Conference, Mumbai (Nov 21, 2014) ( This
prestigious Award is conferred once in two years in recognition of significant
contributions to Professional Management & Human Resources Management in
particular. )

Vodafone India received Award for Excellence in Talent Management(exemplary work

ethic & HR practices) at Economic Times HR Excellence Summit.

Best company to work in study conducted by The Economic Times and Great Place to
Work Institute

Ranked 2nd in Best Company in Telecommunications Industry -

Ranked 4th in Best Company in Large Organisations (more than 10,000 employees)

Ranked 24th among the Top 100 Companies in India

Winner of Golden Peacock Occupational Health & Safety Award

Retailer of the Year at the Asia Retail Congress

Service Retail Speciality Store in the Visual Merchandising and Retail Design category
at the Retail Design Awards
22

Vodafone m-pesa receives Aegis Graham Bell Award 2014 forInnovation in Mobile
Money (for Government subsidiary disbursement solutions).

Data Security Council of India (DSCI) Privacy Certification first Telecom Company in
India to receive this recognition

Second annual Secure World Award 2014 at the Annual SLT in London

DSCI / NASSCOM Privacy Leader of the Year 2013 award to Corporate Information
Security Team

iCMG Best Enterprise & IT Architecture in Telecom, Media & Entertainment for
Unify : One Company One Process

IDG Indias CIO magazines annual CIO100 award at its 8th edition

Best Security Innovation in Cloud at the Cloud Advantage awards

23

MANAGEMENT
Vodafone MD & CEO and strategic leadership team

Sunil Sood
Managing Director & CEO
Vodafone India Ltd

Naveen Chopra
Chief Operating Officer
Vodafone India Ltd

Thomas Reisten
Chief Financial Officer
Vodafone India Ltd

24

Vivek Mathur
Chief Commercial Officer
Vodafone India Ltd

Vishant Vora
Director Technology
Vodafone India Ltd

P Balaji
Director Regulatory & External Affairs
Vodafone India Ltd

25

Ashok
Ramchandran
Director Human Resources
Vodafone India Ltd

Kumar Das
General Counsel
Vodafone India Ltd

MANAGEMENT STRUACTURE
26

27

VODAFONE WORLD

Vodafone Group plc. (public limited company) is a global telecommunications company

headquartered in London, United Kingdom. It is the world's largest mobile telecommunications
company measured by revenues and the world's second-largest measured by subscribers
(behind China Mobile), with around 341 million proportionate subscribers as of November 2010.
It operates networks in over 30 countries and has partner networks in over 40 additional
countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in
the United States measured by subscribers.
The name Vodafone comes from voice datafone, chosen by the company to "reflect the provision
of voice and data services over mobile phones".
Vodafone has its primary listing on the London Stock Exchange and is a constituent of the FTSE
100 Index. It had a market capitalization of approximately 93 billion (9248885595.75 INR) as
of 9 March 2011, making it the fourth largest company on the London Stock Exchange. It has a
secondary listing on NASDAQ.

28

HISTORY
In 1980, Sir Ernest Harrison OBE, chairman of Racal Electronics plc's, the UK's largest maker of
military radio technology, agreed a deal with Lord Weinstock of General Electric Company
plc to allow Racal to access some of GEC's tactical battlefield radio technology. Briefing the
head of Racal's military radio division Gerry Whent to drive the company into commercial
mobile radio, Whent visited GE's factory in Virginia, USA in 1980.
In 1982, Racal's newly formed Racal Strategic Radio Ltd subsidiary won one of two UK cellular
telephone network licenses, with the other going to British Telecom The network, known as
Racal Vodafone, was 80% owned by Racal, with Millicom holding 15% and Hambros
Technology Trust 5%. 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
(10939542102.50 INR).
Under stock market pressure to realize full value for shareholders (the mobile unit was being
valued at the same amount as the whole Racal group), 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 (169071072.40 INR). 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 (3043279303.20 INR). On 19 November 1996, in a defensive move, Vodafone
purchased Peoples Phone for 77 million (7657925044.00 INR), 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.

In 1997, Vodafone introduced its Speechmark logo, composed of a quotation mark in a circle,
with the O's in the Vodafone logotype representing opening and closing quotation marks and
suggesting conversation.

29

On 29 June 1999, Vodafone completed its purchase of AirTouch Communications, Inc. and
changed its name to Vodafone Airtouch plc. The merged company commenced trading on 30
June 1999. In order to gain anti-trust approval for 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.

On 21 September 1999, Vodafone agreed to merge its U.S. wireless assets with those of Bell
Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000.

In November 1999, Vodafone made an unsolicited bid for Mannesmann, which was rejected.
Vodafone's interest in Mannesmann had been increased by the latter 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 resist
Vodafone's efforts. However, on 3 February 2000, the Mannesmann board agreed to an increased
offer of 112billion (11138800064 INR), then the largest corporate merger ever. The EU
approved the merger in April 2000. The conglomerate was subsequently broken up and all
manufacturing related operations sold off.
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.

30

A map showing Vodafone Global Enterprise' footprint.

In 2001, the Company acquired Eircell, the largest wireless communications company in the
31

Republic of Ireland, from eircom. Eircell was subsequently rebranded as Vodafone Ireland.
Vodafone 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 May 2011, Vodafone Group Plc bought the rest of the
shares of Vodafone Essar from Essar Group Ltd with value of $5 billion (318925000000 INR)
and became a solely owned of Vodafone Essar.

HISTORY OF VODAFONE ESSAR

Hutchison Essar (1992-2007)
In 1992, Hutchison Whampoa and its
Indian business partner Max Group,
established a company that in 1994 was
awarded a licence to provide mobile
telecommunications services in Bombay
(nowMumbai) and launched commercial
services as Hutchison Max in November
1995. In Delhi, Uttar Pradesh (East),
Rajasthan and Haryana, Essar Group was the major partner. But later Hutch took the majority
stake.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had
acquired interests in six mobile telecommunications operators providing service in 13 of India's
23 licence areas and following the completion of the acquisition of BPL Mobile that number
32

increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel A

subsidiary of Essar Group) that held licence applications for the seven remaining licence areas.
Initially, the company grew its business in the largest wireless markets in India in cities like
Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a
robust network, well known brand and large distribution network all vital to long-term success
in India. Then it also targeted business users and high-end post-paid customers which helped
Hutchison Essar to consistently generate a higher Average Revenue Per User (ARPU) than its
competitors. By adopting this focused growth plan, it was able to establish leading positions in
India's largest markets providing the resources to expand its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement
with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan
interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and
interests) of approximately $11.1 billion (708235500000 INR).

33

TIMELINE
1992: Hutchison Whampoa and Max Group establish Hutchison Max
2000: Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujarat markets
through Essar acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and
Chennai

A 'You and I' print advertisement of Hutch featuring Cheeka (dog)

2003: Acquired AirCel Digilink (ADIL ESSAR Subsidiary) which operated in Rajasthan,
Uttar Pradesh East and Haryana telecom circles and rebranded it 'Hutch'
2004: Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh (West)
and West Bengal.
2005: Acquired BPL Mobile operations in 3 circles. This left BPL with operations only in
Mumbai, where it still operates under the brand 'Loop Mobile'.
2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The company is
renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.
2008: Vodafone acquires the licences in remaining 7 circles and starts its pending operations
in Madhya Pradesh circle, as well as in Orissa, Assam, North East and Bihar.

34

2011: Vodafone Group buys out its partner Essar from its Indian mobile phone
business. It paid $5.46 billion (348129327000 INR) to take Essar out of its 33% stake in the

Indian subsidiary. It left Vodafone owning 74% of the Indian business.

2014: On 11 April Vodafone acquires 100 percent stake in Vodafone India.
2014: On 6 August Vodafone India launches Vodafone RED 4.New Post-paid plans across India
2015: On 17 January Vodafone launches its iPhone plans across India.

35

VODAFONE ACQUIRES ESSAR'S STAKE

On March 31, 2011, Vodafone Group Plc (public limited company) announced that it would buy
an additional 33% stake in its Indian joint venture for $5 billion (318799750000 INR) after
partner Essar Group exercised an option to sell the holding in the mobile-phone operator. The
deal will raise Vodafones stake to 75%. Essar will exit the company after it implemented aput
option over 22% of the venture. Vodafone exercised its call option to buy an 11% stake.
In 2007, Vodafone granted options to Essar that would enable the conglomerate to sell its entire
stake for $5billion (318799750000 INR), or to dispose of part of the 33 per cent shareholding at
an independently appraised fair market value. In January 2011, Vodafone objected to Essars
plans to place part of its 33% stake in India Securities, a small public company. Vodafone feared
the move would give an inflated market value to Vodafone Essar. It had approached the market
regulator SEBI and also filed a petition in the Madras High Court.
The final shareholding pattern post this deal was not provided by the company as it was not clear
whether Vodafone's stake would exceed the 74 per cent FDI limit. Indian laws don't allow
foreign companies to own more than 74% in a local mobile-phone operator. Vodafone has
assured it will comply with local rules. Vodafone will have to sell that 1% to some Indian entity,
or theyll have to consider an initial public offering. Vodafone also said that final settlement is
anticipated to be completed by November 2011. The completion of the deal would be subject to
meeting certain conditions which include Reserve Bank of India's permission as well as
valuation of the deal.

36

CEO SPEAKS
Steps taken today, should inspire tomorrow
At Vodafone India, we understand that what is good for society is also good for business. Thanks
to the nature of our business, we are intrinsically sustainable our technology improves the daily
life of people everywhere. But thats not enough. In true sense, a responsible business is one that
is good for people, good for the environment and good for our shareholders. And we aspire to be
no less.
Our first sustainability report, released last year, was very crucial for us. It made us realise where
we stood in our journey to contribute to and practice internal and external sustainability. Today,
we have taken a few more steps in that direction. I am happy to present our second sustainability
report Footprints, and to share the progress that we have made so far with all our stakeholders.
We have been chosen as one of the best companies to work for in India, and our initiatives in the
field of rural innovation, CSR and like-wise have made us the most admired telecom operator in
India.
During last year, we made significant progress in our energy saving initiatives and laid key
emphasis to foster a culture of health, safety and wellbeing, within the organisation and in our
supply chain. In fact, sustainability was made a part of our business policy, in our India specific
mission statement, released at our Management Conference in April 2014.
As a result driven company, I am keen to set targets in areas wherever possible be it the use of
energy, paper, water, and so on and measure our improvement vs. them. We would like to be seen
as leaders in the telecom industry, in terms of transparent and ethical practices and as a company
that contributes to the society it functions in.
Our reporting still remains work in progress, as there is so much to do and to learn.
37

Being a responsible business is not only about what we do for our employees, our customers and
for the society, but also about what we do in partnership with them. Let me close by simply
saying thank you to all who have contributed to those efforts so far.

38

SUBSCRIBER BASE

39

COMPETITORS

Vodafone

competes

with

14

other

mobile

operators

throughout

India.

They

are Aircel, Airtel, CheersMobile, BSNL, Idea, LoopMobile, MTNL, MTS, Reliance, S Tel,
TataDoCoMo, Tata Indicom, Uninor, Videocon and Virgin Mobile.
In Uttar Pradesh (East) circle, Vodafone has tough competition with Airtel. Other
competitors in Uttar Pradesh (East) circle are BSNL, Idea, Reliance Communication, Aircel,
Uninor, Tata Teleservices etc.

40

3G SUBSCRIBER BASE

Operator

3G Subscribers (in million)

FY13

FY14

FY15 (estimated)

Bharti Airtel

6.4

14.3

30.0

Idea Cellular

5.1

11.1

15.2

Vodafone India

3.3

6.9

22.0

7.2

13.0

22.0

Aircel

1.0

1.8

2.9

Tata Teleservices

2.0

3.6

5.4

BSNL/MTNL

3.0

5.4

7.6

28.0

56.1

96.3

Reliance
Communications

Total 3G
subscribers

41

VODAFONE SERVICES
MOBILE SERVICES
3G
On 19 May 2010, the 3G spectrum auction in India ended. Vodafone paid Rs.11617.86 million
(the second highest amount in the auctions) for spectrum in 9 circles. The circles it will provide
3G in are Delhi, Gujarat, Haryana, Kolkata, Maharashtra & Goa, Mumbai, Tamil Nadu, Uttar
Pradesh (East) and West Bengal.
On 16 March 2011, Vodafone launched 3G services in Uttar Pradesh (East) in the city
of Lucknow. It was the fifth private operator (seventh overall) to launch 3G services in the
country, following Tata Docomo, Reliance Communications, Airtel, and Aircel.
On 23 June 2011 Vodafone launched 3G service in Kerala by joining with Idea in an Intra Circle
Roaming agreement. Initially Vodafone 3G services will be available in the following cities in
Kerala Ernakulam, Aluva, Palakkad, Thrissur, Calicut, Koyilandy, Alappuzha, Cherthala,
Malappuram and Manjeri. On 28 June 2012, Vodafone launched a new international roaming
package under which the users shall have not to pay multiple rentals in the countries they are
visiting.

iPhone
Vodafone Launched iPhone plans on 17 January 2015 with Vodafone 6K and 10K plans for
iPhone 4s,5s,5c,6

42

M-Pesa
M-Pesa, branded as M-Paisa (the paisa being the largely unused subunit of the Indian rupee), was
launched in India as a close partnership with HDFC bank in November 2011. Development for
the bank began as early as 2008. The service continues to operate in a limited geographical area
in India. Vodafone India had partnered with both HDFC and ICICI, ICICI launched M-Pesa on
April 18, 2013. Vodafone plans to rollout this service throughout India. The user needs to register
for this service by paying 100 Rupees and there are charges levied per M-Pesa transaction.

43

VODAFONE MAIL & MESSAGING

BlackBerry from Vodafone

Get your hands on the BlackBerry smartphone the
worlds most desired integrated communication device
with the Vodafone advantage. Subscribe to the
BlackBerry Enterprise solution and move your work
out of your office. Use the BlackBerry Internet Service
and stay in touch with colleagues, family and friends
from anywhere, anytime.
Yahoo! Mail & Messenger on mobile
Never lose touch with your Yahoo! buddies even while youre on the move.
MSN @ Vodafone
Stay connected with MSN 24/7, only with MSN Messenger on your Vodafone mobile phone.
Rediff & Indiatimes
Check your Rediff & Indiatimes mail on your
Vodafone mobile phone.
SMS
Send short and sweet SMS text messages from
your Vodafone mobile phone to your friends. Find
out more about SMS texting.

SMS Chat
44

Chat non-stop with your friends on your Vodafone mobile phone.

Vernacular SMS
Reach out to your friends and loved ones with an SMS in your language.
Group messaging on mobile
Want to send festival greetings to all your friends at one go?

Movies
Catch the latest blockbuster in town with friends. Get latest movie reviews, movie tickets and
showtimes on your Vodafone mobile phone.

Music
This one is for all us music lovers. Get the latest music videos, right from movies to rock, mobile
karaoke and much more, all on Vodafone live!

Humour
Get rib-tickling jokes on your mobile and SMS joke messages to your friends to brighten up their
day.

Dating
"Do you know whatd look good on you? Me."
Forget those lame pick-up lines. SMS Chat to 52428. Register your nickname and enter the chat
room of your choice and make new friends.

Chat Service
Find a friend with Chat Service on your Vodafone mobile phone.

45

EDGE on Vodafone
Experience the next level of technology on your Vodafone mobile phone with Vodafone EDGE
services. Get ready for rich videos, clear and crisp audio and faster downloads.

Vodafone Contests
Play mega-size mobile contests or easy SMS-based fun mobile contests and win loads of prizes!
Only on Contest Zone.

Television
Staying home on a lazy day? Get the latest TV listings on your Vodafone mobile phone. Or
watch your favourite programs right on your phone.

Callertunes
Put a smile on your callers face even before you take the call. With Vodafone Callertunes
service, you can play your favourite song for all your callers instead of the normal tring tring.
Choose your mobile Callertune from a wide variety of genres. Set Cricket Callertunes to play
live cricket scores. If youre busy with something, let the world know by setting a Busy
Callertune. You can also copy a friends Callertune by pressing * while the song is playing.
Vodafone Music Station
Now your Vodafone mobile phone can replace your favourite FM Radio Station with Vodafone
Music Station - your personal mobile music world!

Ringtones
Make your phone sing your favourite tunes for you every time it rings with Vodafone Ringtones
for your mobile phone. Take your pick from monophonic Ringtones, mobile polyphonic
Ringtones, latest Bollywood MP3 Ringtones, funny Ringtones, Hindi music Ringtones, true
tones Ringtones, real tones Ringtones, devotional Ringtones and lots more.
46

Music Card
A new way to dedicate a song to your friends.

Full Song Download

Your Vodafone mobile phone can also be used for cool music downloads. Just download full
songs - from the latest chartbusters to your favourite golden oldies.

SMS Tones
Ring in every message you get with a message alert tune of your choice. Background Music
Make your conversations more interesting. Let music play in the background that suits the mood,
the occasion or simply the person you are.

Videotones
Dont just hear your favourite song every time your phone rings; watch it too.

Daily forecast on your Vodafone mobile phone

Demanding, chilled out, auspicious or fun-filled? Your Vodafone mobile phone knows how your
day is going to be.

Live astrology on your Vodafone mobile phone

Get in touch with the astrologer of the new age. Call him for an instant appointment through your
Vodafone mobile phone.

Live astrology
Hear it first hand from an astrologer.

47

Tarot card on your Vodafone mobile phone

Queen of Cups or Knights of Pentacles? Whos influencing your life and how? Get on to your
Vodafone mobile phone to find out.
Vaastu & feng shui tips on your Vodafone mobile phone
Wondering which way the door should face? Log on to m-Guru on Vodafone live! for vaastu and
feng shui tips.
Rahukal & shubhkal
Find out if this very moment is auspicious or not, with your Vodafone mobile phone. Just SMS.
Panchang
Match your best times ahead of time according to ancient Vedic astrology with your Vodafone
mobile phone.
Chogadia
Be successful in everything you do. And ensure you do it at the right time, with your phone.
Ask me
Got a question? Ask us

Sports
Get the latest sports scores, match schedules, sports updates, player profiles, videos, pictures,
Ringtones and much more - all on your
Vodafone GPRS mobile phone.
Heres what youll get:
Cricket Alerts on your Vodafone mobile
phone
News from the cricket arena Live cricket updates on your Vodafone mobile phone
48

Trivia
Little known facts about people and places that makes cricket your sport of choice
Games
Strike a six in your personal cricket stadium. Download cricket games and play a gentlemans
game or two
Ask the Expert
Browse through fascinating Q&A sessions on the message board or tack up a few queries and
comments yourself. Go on, prove youre an expert yourself to the world.
Football
Get all the football news on your Vodafone mobile phone from both, on and off the football
field. Stay informed about the most popular sport in the world.
Pull down your old posters and download some football pin up stars for your phone instead.
Bible in mobile
Read the Bible on your Vodafone mobile phone whenever you like. Just send an SMS and get to
read inspiring verses right on your phone screen Find out more about Bible in your Vodafone
mobile phone.
Gurbaani
Turn your mobile phone into a virtual Gurdwara. Just dial 390 and listen to the Gurbani live
anytime, anywhere.
Pope
Get the daily quotes from His Holiness Pope Benedict XVIs on your mobile phone.

49

Bhaktisagar
Chasing materialistic dreams in this fast-paced world? Snatch a moment of peace dial 389 for
Bhaktisagar on your Vodafone mobile phone.
Osho
Know more about Oshos life and teachings on your Vodafone mobile phone.
Airlines
Travelling by air? Get all your flight information on flight scheduling on your Vodafone mobile
phone.
Stock, forex & bullion
Keep a tab on the ups and downs of the markets with stock quotes, market news on your
Vodafone mobile phone.
Vodafone mobile banking
Need to visit your bank? Switch on your Vodafone mobile phone.
News
How did Sachin do in his latest match? Is the market bullish? Whats the weather update for your
city? Stay up-to-date with your Vodafone mobile phone.
Finance
Keep up with the fast changing world of finance with business and finance news while youre on
the move. Find out more
Vodafone FLASH!
Have non-stop fun with news, live cricket score, Bollywood quizzes, trivia and lots more. All
live on your Vodafone mobile phone.

50

Vodafone Alerts
Get live breaking news, business news, stocks, astro alerts, sports news, tech news & lots more
on your Vodafone mobile phone.
M-pesa
M-Pesa, branded as M-Paisa (the paisa being the largely unused subunit of the Indian rupee), was
launched in India as a close partnership with HDFC bank in November 2011. Development for
the bank began as early as 2008. The service continues to operate in a limited geographical area
in India. Vodafone India had partnered with both HDFC and ICICI, ICICI launched M-Pesa on
April 18, 2013. Vodafone plans to rollout this service throughout India. The user needs to register
for this service by paying 200 Rupees and there are charges levied per M-Pesa transaction
WHAT IS 3G
3G stands for third generation wireless technology. It enhances your online experience with high
speed mobile broadband, video calling, video streaming, and much more on your mobile phone.
With a 3G enabled handset and access to the Vodafone 3G network you can make video calls,
watch live TV, and enjoy high speed internet.
ANGEL STORES
Vodafone Angel Store, is a first of its kind retail concept store, that is completely managed and
run by women employees, including security, pantry staff, customer service resources and
management level personnel. As of 3 September 2013, there are 16 Vodafone Angel Stores
across 14 states of India. Stores are currently operating in Agra, Ahmedabad, Bhubaneshwar,
Chennai, Delhi, Goa, Haryana, Hyderabad, Jaipur, Kerala, Kolkata, Lucknow, Mumbai, Mysore,
Pune, Shillong, Vadodara and Rajkot.

51

According to Marten Pieters, Managing Director and CEO, Vodafone India, "The Angel Stores
are a part of Vodafones commitment to provide our women employees with one of the most
secure and productive work environment. Additionally, our women customers feel more
welcomed while visiting the store." Vodafone's own research and customer feedback revealed
that the Angel Stores help improve the quality of customer service as women generally show
greater patience and empathy than men, and are able to act and help in speedy resolution.
Vodafone also found that higher productivity and performance parameters recorded in Angel
Stores, across locations

52

VODAFONE INDIAS UNIQUE DISTRIBUTION CAPABILITIES

Zonal structure

Associate distributor model

Exclusive rural retail-mini stores

Management information tools at the individual POS level

Cellsite-based analysis and geo mapping

Best practice sharing between circles

VODAFONE ZONAL OPERATION STRUCTURE

53

VODAFONE CHANNEL STRUCTURE

Multi product channel strategy for uniform customer experience Channel structures
INDIRECT CHANNEL

2 tiered distribution model

For mass market reach

Focused on prepaid

DIRECT CHANNELS

Selling directly to the end customer

Focused on postpaid

EXCLUSIVE RETAIL

Exclusive

Sales and service

Primary focus on postpaid, terminals & data

MODERN TRADE

Large format outlets / chain stores

Future growth driver for Data & 3G

B2B BUSINESS

Enterprise
o VGE
o National A/C
o SME
54

Includes fixed line and data

55

CUSTOMER
SATISFACTION

56

CUSTOMER SATISFACTION

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 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.

However, the importance of

customer satisfaction diminishes when a firm has increased bargaining power. For example, cell
phone plan providers, such as Vodafone, participate in an industry that is an oligopoly, where
only a few suppliers of a certain product or service exist. As such, many cell phone plan
contracts have a lot of fine print with provisions that they would never get away if there were,
say, a hundred cell phone plan providers, because customer satisfaction would be way too low,
and customers would easily have the option of leaving for a better contract offer. There is a
substantial body of empirical literature that establishes the benefits of customer satisfaction for
firms.
57

UNDERSTAND CUSTOMER EXPECTATIONS

These organizations demonstrate a commitment to understanding the customer's perspective.
Most of the benchmarking partners send surveys to customers who have complained recently to
see how satisfied they were with how the complaint was handled. Some call the customers to
determine satisfaction. One organization surveys every fourth customer with a complaint.
Another described complaints as "free information" about their customers needs and
expectations. These organizations supplement surveys of people who complain with routine and
often extensive data collection tools in order to understand their customers. Customers are
surveyed to determine their level of satisfaction with existing services. Surveys are sent with
questions, often in a Likert Scale format where the customer can select the degree of satisfaction
on a scale, e.g., from one to five. These surveys assess customer satisfaction with existing
services, delivery of services, helpfulness of employees, and overall performance of the
organization. Some companies add a few short questions to the end of customer calls or
correspondence. Companies also survey their front-line employees for their attitudes as well as
for their ideas for improved service, asking their employees to take the customer's perspective.
After the nearby community complained about noise levels, the Red River Army Depot changed
the times they detonated ammunition and put "listeners" (members of the community) at
check- points throughout the surrounding area to monitor noise levels. The partners focus on
clear customer target groups. One company that serves a wide variety of customers decided to
focus on its high-volume business customers. Three months after a high-volume business
customer has complained, the company follows upto find out whether they are still using their
services and, if not, the reasons for dissatisfaction.

58

MANAGE CUSTOMER EXPECTATIONS

These organizations do not wait for complaints to come in the door. They try to anticipate the
needs and problems of customers and to set realistic expectations through customer education
and communication strategies. Research shows that 40 percent of complaints come from
customers having inadequate information about a product or a service.(5)Using customer
feedback to understand customer expectations and needs, organizations educate their customers
and/or the public on what they can expect from their products and services and what obligations
and responsibilities their customers have. For example, one enforcement/ regulatory partner has
extensive education on the requirements and reasons for utilizing their services.

KNOW HOW TO SAY NO

Both companies and government agencies, especially regulatory agencies, need to draw limits.
When it is not possible to give the customer what they would like, it is still possible for a
customer to feel that he or she has been heard and has been treated fairly.
A number of techniques convey concern--calling customers and telling them the company
understands; giving the customer the best explanation they can; and being open and honest with
customers concerning laws and policies of the organization. Being professional and considerate
of customers enhances their view of the organizationeven when the customer may be
disappointed with the outcome.
"For the first time in a long time, a communication from IRS is clear, concise, and informative
and user friendly. . . The attached--while I'd preferred not to have made the mistake--points out
exactly what happened and what needed to be done. "In a small percentage of cases, it will be

59

necessary to close a complaint when it is felt that the company or agency has done everything
that can be done.

60

SUPPLY CHAIN AT VODAFONE

Vodafone sits at a pivotal position in the supply chain, linking the end customer with a complex
pyramid of supply. We source equipment for our networks and the handsets we sell from thirdparty manufacturers which themselves source components and assembled products from
other suppliers. We strive to work with suppliers that maintain high labor and environmental
standards. Our Code of Ethical Purchasing (CEP) sets out Vodafones expectations of suppliers.
Our strategy is to monitor, assess and work with our Tier 1 suppliers those that provide us with
products and services directly to help them improve their sustainability management and
performance. We believe that ensuring our Tier 1 suppliers take responsibility for working with
their own Tier 1 suppliers and have the capability to do so is the best way to achieve
sustained improvement throughout the supply chain. Ensuring we have robust processes in
place to manage sustainability risks in the supply chain is becoming more important to Vodafone
as we extend our range of Vodafone-only branded products and increasingly outsource the
deployment of our networks. Vodafone-only branded handsets and data cards require us to deal
directly with contract manufacturers in Asia, rather than through established consumer brands.
While this enables us to control more closely the design, specification and cost of devices, it also
increases the risk and potential impact on our reputation if issues occur as Vodafone is the only
brand label on the product. Our site assessment process helps us manage this risk.
Customers
We put customers at the heart of our business. We want them to value their experience with
Vodafone, using innovative products and services across wide-ranging, high speed, reliable
networks.

61

Vodafone is investing in mobile applications that will promote economic development, improve
quality of life for customers, and help business customers and consumers cut their carbon
footprint.

ACCESS TO COMMUNICATIONS
Extending access to communications will help to maximize our contribution to a sustainable
society, and it is also good business. We are working hard to extend the benefits of mobile
to more people in emerging markets by expanding the reach of our networks and introducing
more affordable products. Vodafone also offers applications designed to meet specific needs such
as mobile money transfer services for people without bank accounts and mobile solutions to
improve the efficiency of healthcare. We also aim to make mobile communications
more accessible for disabled and elderly customers increasingly important with an ageing
population in many of our markets. Our local markets offer a range of products, services and
62

tariffs to increase accessibility for customers who are blind or visually impaired, deaf or hard of
hearing, or elderly.

EARNING CUSTOMER TRUST

Maintaining our customers trust by acting responsibly is essential to achieving these long-term
sustainability goals, strengthening our brand and ensuring our continued commercial success.
Trust in Vodafone depends on three main factors: the reliability of our network, products and
services; clear and fair pricing; and our approach to protecting customers privacy and safety.
Our aim is to ensure customers are satisfied with our service and in control of how they use it.

63

CUSTOMERS AND THE ENVIRONMENT

Our products and services can enable our customers to have more sustainable lifestyles in a lowcarbon society (see enabling a low-carbon economy). However, we recognize there
are environmental impacts associated with our products design, manufacture and distribution,
and their operation and disposal. As well as working to reduce impacts from our operations and
supply chain, we also aim to help our customers reduce impacts during use and disposal of our
products.

OUR APPROACH
Vodafone does not consider sustainability as a philanthropic gesture or add-on. It is part of our
core business (see our strategy). Our sustainability management mirrors the way we manage our
business, with a global team of sustainability managers working across the business with a
presence in each local market. A key challenge for a large multinational company is to embed
sustainability at every level in every local market. Achieving this means communicating with
employees and creating an organizational culture where the instinctive course of action is the
responsible course of action, based on our Business Principles.

64

Vodafone had highest customer satisfaction index in 2011

Lisbon, 25 August 2013 - Vodafone obtained the highest customer satisfaction index in the
telecommunications sector in 2013, according to annual results published by Anacom. Vodafone
achieved a satisfaction index of 74.4 (on a scale of 0 to 100), the highest score of all the
companies in the Portuguese telecommunications market and considerably above the sector
average of 67.6.
In the report published by Anacom, Vodafone is ranked in first place in all the indicators included
in the survey: Satisfaction with the operator, Image that customers have of the operator,
Customer Expectations, Perceived Quality of the operator's network and services, Perceived
Value for Money, Complaints received and their handling, and Loyalty of customers to their
operator.
In the Perceived Quality indicator, Vodafone obtained a score of 8.3 points for overall quality,
way ahead of the scores of the other two operators (both obtained 7.7 points). Vodafone comes
top in all the indicators for perceived quality of network and services: technical quality of the
network (8.2 points); customer service and advice capability (7.6 points); quality (8.2 points),
diversity (8.0 points) and reliability (7.9 points) of products and services offered; clarity and
transparency of information supplied (7.8 points); network coverage (7.9 points) and clarity and
transparency of price plans (7.9 points).
Similarly, in the indicators measuring the Image of mobile operators, Vodafone comes top in the
five categories analyzed (on a scale of 1 to 10): 'It is a reliable company in terms of what it says
and what it does' (8.1 points); 'It is stable and well established in the market' (8.8 points); 'It
contributes positively to society' (7.5 points); 'It cares about its customers' (7.6 points); and 'It is
innovative and forward looking' (8.5 points).
65

The methodology used in the ECSI Portugal 2009 survey (ECSI European Customer
Satisfaction Index) is similar to that used by the European Commission to survey customer
satisfaction in 25 Member States, enabling comparisons to be made between the results obtained
in each country.
The ECSI Portugal 2011 Communications survey was carried out by the Higher Institute of
Statistics and Information Management at Lisbon's New University in partnership with the
Portuguese Quality Institute and the Portuguese Quality Association, with sponsorship from
Anacom

Overall satisfied customer index with services by network provider(INDIA)

2011

2012

2013

2014

Airtel

63%

74%

70%

75%

Idea

61%

71%

69%

67%

BSNL

42%

62%

68%

60%

Aircel

66%

61%

66%

64%

Vodafone

69%

77%

68%

73%

66

MARKET MIX OF VODAFONE

PRODUCT
Features like chat, games, ringtones video Clips, caller tunes etc.
On-the-move information service. Black list callers. Social Products.
PLACE
Vodafone covers almost 75% of its operational area.
It also sells through independent retailers.
Customers are able to see and handle products they consider to buy.
People are on hand to ensure customers needs are matched with the right product
to explain the different options available.
PRICE
Vodafone wants to make its service accessible to all.
Offers various pricing structure to different customer groups.
67

 Monthly price plans are available.

Rewards on the usage.

PROMOTION
Above the line: Advertising on TV, magazines, via internet and on bill boards.
Below the line: Special offer promotions. Vodafones stores, its products and its entire
staff project the brand image. Public relations by its press releases.

68

PORTERS FIVE FORCES MODEL

Bargaining Power of Buyers

The buyers in the mobile telephony industry are strong. These powerful buyers can reduce the
cost leaders prices, but not past the level of their closest competitor. This ensures Vodafone will
continue to profit at above average returns compared to its closest competitor.
Bargaining Power of Suppliers
Suppliers of the mobile telephony industry are strong. Vodafone, by being a cost leader, operates
with margins greater than its competitors, which, in turn, allows them to absorb price increases
from its suppliers easier than its competitors. By being a large, focused player of the mobile
telephony industry, Vodafone could hold suppliers costs down, and it could make a profit even if
its competitors are making only average returns.

69

Potential Entrants
While the threat of new entrants is weak, Vodafone must continue toreduce costs below that of its
competitors. By maintaining high levels of efficiency, Vodafone can help make the entrance into
the Mobile telephone industry unattractive to its potential competitors.
Product Substitutes
Vodafone faces a low threat of product substitutes. The focused cost leadership strategy that
Vodafone operates under makes it difficult for a comparable substitute to be produced at a lower
rate by their excellent use of economies of scale, their buying power, and their absorption of
temporary price increases that come from suppliers that dont need to be passed on to the
consumer.
Industry Rivalry
Vodafone faces a very high industry rivalry from its competitors because as the different mobile
operators slashes its rate per call or provides any new services then they also have to provide to
its customers
(a) Valuable Yes Because Vodafone sticks to what it knows best, mobile telephony, and has not
ventured into fixed line. Telephony or providing content, they created value for their customers
by being the best and most focused.
(b) Rare Yes Vodafone's ability to develop innovative technology and successfully merge are
rare capabilities.
(c) Costly to Imitate Yes The organizational culture of Vodafone must be strong to successfully
complete mergers and acquisitions, while simultaneously developing innovative technology.
These capabilities have developed over time and the expertise gained will be very difficult for
other firms to develop.
70

(d) Non-substitutable No Vodafone's mobile telephony is substitutable, as evidenced by the

high turnover throughout the industry. While most organizations have gone the way of
outsourcing their peripheral activities while managing their core competencies in-house, a recent
happening in the Wireless industry seemed to have changed this rule. March 18, 2009 witnessed
an announcement from Vodafone that they have decided to outsource the administration of their
large wireless network in the UK to none other than Ericsson. Vodafones brand image is very
evident and has a strong market value, analysis.

71

STP ANALYSIS

Segmentation
Vodafones services are spread wide across India. Therefore, the segmentation can be done based
on the geographical conditions. Also, segmentation by Vodafone is done based on the service
usage by the customer. For instance, usage in terms of Post-paid or Pre-paid and further, services
can be defined as the customers who would prefer caller tunes, or know about the financial, or
interested in astrology. To an extent, the nature of customer also a segmentation strategy as a
customer can be defined as a sole customer who purchases the connection on his name and uses
72

it himself, and the other can be defined as Institutional where a company or any corporate
purchases the connection and gives it to their employees whereby the bills expense would be
borne by the company.

Targeting
Vodafone is adopting a multi-segment approach. They are offering a series of differentiated
products to their respective markets. For instance, they have come out with Home calling cards
for the family to those professionals who use to work abroad. They are targeting middleclass
customers which can be clearly justified by their products they are offering like Rs. 10 chota
recharge, inexpensive SMS facility for the youth.

Positioning
Initially, Hutch positioned them as Where you go the network follows you. Hutch is a brand
that always tried to connect with customers in a simple, honest and real manner, while Vodafone
is amore of a young and a fun brand. The positioning strategies have been highly successful for
Vodafone as they made a wise decision of restraining the PUG dog which was a very powerful
visual imagery. Also, actor Irfan Khan has been restrained for the brand promotions. Vodafone
have always talked about the exclusivity of the network, and the services they are offering to the
customers very effectively. Vodafone ZooZoo now a days have been quite attracting and famous
amongst customers.

73

VODAFONE MARKETING CAMPAIGNS

VODAFONE ZOOZOOS
IPL Season 2 saw the birth of the Zoozoo for Vodafone: eggshell like characters created to tell a
new value-added service story each time. In 2008, Vodafone had unveiled the Happy to Help
series during the first season of the Indian Premier League (IPL). With the launch of the second
season, Vodafone had given birth to the Zoozoo: a special character created specifically to
convey a value added service (VAS) offering in each of the newly released commercials.
There were some 25 such commercials planned under this campaign. The aim was to release
approximately one ad a day, to sustain interest till the end of the IPL.
Media spends and visibility for brands peak during the IPL, so Vodafone obviously wanted a
piece of the pie. Further, the brand was in need of an idea that would work doubly hard, as it was
planning to spend some four months worth of marketing monies in one month.
Vodafone briefed its agency, Ogilvy India, to create uncommon characters a common thread to
link the ads in the campaign together. Ogilvy experimented with several characters and finally
took its love for the term egghead one step too far, creating characters that don the colour white
with black dots for eyes and a mouth, have heads resembling eggs, and disproportionately thin
bodies.
The Zoozoo idea was conceived by Rajiv Rao. He was also the mind behind the story lines and
the name. The ads were shot by Prakash Varma and produced by Nirvana Films within a record
time of 10 days. The pre-production work happened within a month and cost around 3 crore
rupees. The idea was to tell the VAS stories in a world akin to, yet different, from humans. The
creatures were then given a characterisation: they are to lead simple lives, speak a language of
74

their own (something that sounds like gibberish), move in a certain way, and even emote like
human beings, with big frowns or big grins to do the trick. The execution was almost like
emoticons.
Super Zoozoo which was introduced as a symbol of Vodafones 3G launch in India. It was
brought to life using a Kinect device and making it dance to Reggae.
After a brief break, the Zoozoos were back on Indian television with a new set of ads during the
IPL 2013. Only this time, they were accompanied by a new set of characters called the Zumi
Zumis. Vodafones Zoozoo ads were a hit among the Indian audience. This can be gauged from
the huge fan following on social networking sites such as Facebook and Twitter. There are more
than 200 pages on Zoozoos having over 250000 fans, growing daily. The ads were also viewed
by millions of people on YouTube. Its history what the Zoozoos have done for the brand. Most
importantly, it made the brand a little more playful, a little less serious, a little less emotional and
a little more fun.

BLACKBERRY BOYS
In September 2010, Vodafone India, in an endeavour to take the benefits of Blackberry services
mainstream and reach out to its young and upwardly mobile audience, had successfully launched
a campaign featuring the 'Blackberry Boys'.
Conceptualised by Ogilvy India, the television commercial showed five men in suits, singing
about how, being business people, they are distinct and superior from the rest and make smart
use of their BlackBerry phones. Their song takes a twist when casually dressed youngsters join
in and sing about the cool stuff that they do with their BlackBerry phones. The jingle was widely

75

appreciated and the advertisement did a good job in bringing down the notion that BlackBerry
phones are meant only for the executive world.
The BlackBerry boys returned in 2012 with their second commercial which talked about how
they are no longer the 'BlackBerry Boys' because the youth uses BBM service for various
purposes, right from sharing pictures to music and many more, which takes them beyond the
world of chatting. The advertisement was shot in a manner that gave the impression of a 'boyband' music video and was backed by the song, 'They are the BlackBerry Boys'.
Network ads with the Pug
"You & I" was an advertising campaign of Vodafone India which aimed at establishing the
superior network provided by the company. The ads featured a child actor Jayaram along with a
pug named Cheeka. The dog follows the boy in unlikely locations, prompting the tagline,
"Wherever you go, our network follows." The duo first appeared on TV, billboards, newspapers
and bus shelters in 2003 and became instant celebrities all over India. The campaign was created
by Mahesh V. and Rajeev Rao, Senior Creative Directors at Ogilvy & Mather, Mumbai.
The television ad was the first to be shot, a 60-second sequence in lush green Goa. The role of
the boy was played by Jayaram, an eight-year-old who had already starred in four other
ads. Cheeka was suggested for the role by an assistant at Nirvana Films, the makers of the
advertisement. The campaign became a hit, and was soon followed by a print version for
newspapers. The campaign was well received all over India.

VODAFONE DELIGHTS
Vodafone launched Vodafone Delights in October 2011 that offered customers benefits on travel,
lifestyle, dining and entertainment with other commercial establishments. These benefits could
76

be availed by the customers by sending a SMS or dialing a USSD code. The Vodafone Delights
commercials depicted a budding friendship between two schoolgirls who would go out of their
way to treat the other. The jingle Little things you do for me appreciated by every viewer and
struck a chord a chord especially with the youngsters.
Vodafone was back with their Vodafone Delights campaign in 2012 to promote new special
offers including happy hours, gifts for consumers on their birthdays and on every visit to the
8,000 Vodafone Stores across the country. Vodafone also introduced discounted tariffs on calls
and messaging between 2 pm and 4 pm every day.
The new advertisements showed a growing friendship between a young boy and an old man. The
old man rewards the boy with gifts emerging from magic tricks each time the boy visits the old
man's house. Ogilvy & Mather, which has been producing ad campaigns for the company for the
past 10 years, was given the mandate to develop a campaign that had the emotional resonance of
the earlier campaign. This six-week long campaign was backed by full-scale media exposure on
television, radio, print, outdoor, on ground, digital and online.

MADE FOR YOU OFFERS

The Vodafone 'Made For You' campaign was launched in November 2012. It was a set of three
commercials that were practically identical except for the situations that had been portrayed. The
first television spot was set in a tailor's shop, the second at the barbershop and the third in a
fitness centre. Together they created a montage of shots of people talking to the camera and
providing detailed specifications about their needs in every situation.
The advertisement highlighted 121, an IVR (Interactive Voice Response) based product
offering that empowered customers to choose their best offers across products such as local,
77

STD, SMS, VAS, data and thereby placed the power in the hands of the customers to decide what
offer suited their unique requirements. The campaign was created to attract the SEC B and C
segment of customers that are price conscious and have a better affinity to IVR-based services.

VODAFONE INTERNET CAMPAIGN IPL 6

After a brief break, the Zoozoos were back on Indian television with a new set of ads during the
IPL 2013. Only this time, they were accompanied by a new set of characters. These characters
resembled the Zoozoos in almost all aspects except their size and their distinctive helmets.
Termed as the Mini Zoozoos by many, these characters did not have any official name.
Created by Ogilvy India, the mini Zoozoos were actually metaphors for mobile internet. To put
forward Vodafones internet propositions in a creative manner, the agency created an army of
mini Zoozoos. Nine 'missions' in the Zoozoo world were accomplished during the course of this
campaign. These missions were used as metaphors for actual offerings in the internet genre, for
example music, email, job search, cricket scores, photo-related uses and finding a partner.
The advertisements were made using animation (the little Zoozoos in the films) as well as actual
physical sets and people in Zoozoo costumes (the big Zoozoos in the films).
Vodafone capped off the campaign in style with a music video which is also known as the Zumi
film. The Zumi film showed the mini Zoozoos celebrating their accomplished missions. The
video depicts the mini Zoozoos dancing to a peppy dance number 'We are Zumi Zumi' and
performing dance steps like Abba's Walk Like an Egyptian and Michael Jackson's signature
moon walk. The film also conveyed the product benefits of Vodafone internet (ability to share
photos, play songs and see videos) through subtitles.

78

Apart from TV (including the IPL playoffs) the tune was being promoted extensively on radio
and digital platforms as well.

79

SWOT ANALYSIS OF VODAFONE

Vodafone Group (Vodafone) is one of the worlds leading providers of mobile telecom services.
The group provides mobile voice and data communication services to consumers and enterprise
customers. The group has global operations spanning Europe, the Middle East, Africa, Asia
Pacific, and the US. Its prominent market position will provide a competitive advantage to the
group over other players and helps it in enhancing the operating performance. However, intense
competition in the telecommunications industry will adversely affect the groups market share
and revenue growth in the coming years.
Weaknesses

Legal proceedings this is one of the weaknesses of Vodafone as in past it had a bad
controversies which made lot of buzz in the market and was also fined for the wrong
activities being carried out by the Vodafone.

Prominent market position- Vodafone is still not at no 1 position in the indian market
despite of efforts made by the company to overcome its competitors, it has the position
which can be easily taken away if the proper working is not done at the right time.

Technology adaptation Vodafone is not as fast as its rival competitors in the adaptation
of the technologies which keep Vodafone one step behind its competitor in the market.

Strengths
80

Extensive global reach- Vodafone has its footprints in large global area which is a
positive factor for it as it could provide proper services to its customers outside their
home country .

Diversified revenue base significant brand image- Vodafone is the worldwide known
brand which is the strength as it doesnt have to establish a name where ever it goes ,it
can easily generate revenue from its brand image, which helps Vodafone to enter into a
new market.

Network infrastructure- Vodafone has one of the most sophisticated network

infrastructures which make Vodafone one of the most trusted brand in the
telecommunication sector.

Threats

Intense competition as there is lot of competition in the market which is not good for
the organization as it has to do something new and different in the market to sustain and
hold the position in the market, which is difficult for the organization.

Regulatory environment as there is the regulatory TRI (telecom regulatory authority )

always checking and rectifying the rate and plans of the telecom sector to make the
market more stabilized and uniform .

Increasing 3G penetration Matured markets-as the 3g is being penetrated by each and

every competitors in the market who are already making the market more crowded and
diversified for working , these competitors are providing the services on much cheaper
rate which is not good for the Vodafone.

Opportunities

Growth of mobile advertising as the trend of advertisement is taking the mobile as a

major source reaching the people it has given an opportunity to the Vodafone to take
proper advantage of this offer and make more growth in the market.

Mobile money transfer services as the mobile money transfer is becoming more and
more common amongst the people which can be benefiting the Vodafone my providing
81

the services on larger platform with the secure connection of making the mobile money
transfer need of the people.

Market Growth of Indian telecom market- as the market of Indian telecom is growing
at a proper fast rate which is beneficial for the Vodafone to work accordingly and make
the use of this opportunity to establish itself better in the Indian market.

SWOT ANALYSIS OF VODAFONE

82

PART-II

83

OBJECTIVES OF THE STUDY

Main objective of the study is to know about the Customer Satisfaction towards Vodafone
Services in Lucknow City.
Other objectives of the study are as follows:

To understand the customer perception about Vodafone services.

To study about consumers expectation from the Vodafone.
To study the satisfaction level of users of Vodafone.
To give few suggestion to increase more users of Vodafone.
To know about market standing of Vodafone.

84

RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is simply the framework or plan for a study that is used as guide in collecting
and analyzing the data. It is blue print that is followed in completing a study. According to
Kerlinger, Research design is the plan structure, and strategy of investigation conceived so
as to obtain answers to research question and to control variance.
The marketing research designs are classified on the basis of fundamental objective of the
research. They may be exploratory or conclusive.
Here in project Market Share of Vodafone, the nature of research is exploratory, Descriptive, and
Analytical.. This research is to cover the nature of users of VODAFONE. And the thinking and
perception of consumers about Vodafone and the way of getting profit & convenience by using
Vodafone is their vehicles basically those who are living in Lucknow.

DATA COLLECTION METHOD

PRIMARY DATA
As the research is exploratory describe and Analytical in nature concerning users related to the
Vodafone. Primary data collected by the Questionnaire and direct interaction with different
people.
SECONDARY DATA- To obtain Secondary data I have used following resources

NEWSPAPERS

WEBSITES

85

SAMPLING
Nature of SamplingIn this project sample survey was conducted where the data was collected from some
VODAFONE users in Lucknow. The respondents selected were the users of VODAFONE
specially young people and businessmen.
Sampling UnitThe sampling unit for the consumers is taken through questionnaires and direct interviews in
Lucknow which may be user of VODAFONE.
Sampling SizeWhen survey is undertaken it is not possible to cover the entire population. The sample size
decision is related directly to research cost.
The Sampling size was undertaken for investors through questionnaires for our research purpose
is 200.
Sampling MethodSince the chance of any particular unit in the population being selected is unknown so we have
used Non-Probability sampling. We have further used purposive sampling.
Universe- Universe of this study is Lucknow.

86

LIMITATION OF STUDY
Certain limitations do creep in a research study due to constraints of the time, money and human
efforts, the present study is also not free from certain limitation, which were unavoidable.
Although all effort were taken to make the result of the work as accurate as possible as survey
but the survey have following constraints.
Here the researchers problems are: A number of customers are not satisfied with services, new schemes and offers.
People are mostly not satisfied with the network coverage.
Large number of customers are not satisfied with the current call rates of Vodafone.
People are not satisfied with the Free SMS schemes as it seems too tricky and confusing
to operate.
Existing customer of Vodafone are not satisfied with the service of customer care of
Vodafone.
In this busy schedule of peoples it is difficult to borrow their time to fill up the
questionnaire and their response

87

DATA ANALYSIS

88

DATA ANALYSIS
AGE GROUP
Ques: 1. Number of Vodafone users according to age group.
1) BELOW 18

5%

2)18-27

62%

3)27-40

23%

4)40 AND ABOVE

10%

Interpretation: Most of the respondents are young and belong to 18-27 Years age group.this is
to know the age group of the subscriber of Vodafone and helps in knowing the customers of
Vodafone.

89

INCOME (MONTHLY)
Ques: 2 Number of Vodafone users according to monthly income.
1) 4,000 OR LESS

22%

2) 4,000-10,000

25%

3) 10,000-20,000

9%

4) 20,000 & ABOVE

3%

5) Not applicable

41%

Interpretation: Most of the respondents are didnt disclose their income group. And know the
different income level of the people and the customers of the Vodafone for better enquiry.

90

Ques: 3) Which of the following services do you use of Vodafone?

1) Pre-paid

84%

2) Post-paid

16%

Interpretation: 84% of the respondents use pre-paid services while only 16% of the respondents
use post-paid services. The purpose behind this question is to know which services do the
Vodafone customer use, Pre-Paid or Post-Paid.

91

Ques: 4 Since when are you using Vodafone connection?

1) LESS THAN 6 MONTHS

1%

2) 6-12 MONTHS

22%

3) MORE THAN A YEAR

77%

Interpretation: Most of the respondents using Vodafone connection since more than a year, this
question is used to get the proper idea about the subscriber relation with the Vodafone.

Ques. 5: What is your monthly Expenditure on Mobile phone (in Rupees)?

1) BELOW 50

4%
92

2) 50-150

38%

3)151-350

34%

4)351-500

15%

5) 500 AND ABOVE

9%

Interpretation: Most of the respondents expense around 151-350 on mobile per month. This is
used to get the knowledge about the monthly expenditure by different income group of people
for acquiring the average monthly expenditure.

Ques:6 WHICH OF THE FOLLOWING VAS DO YOU USE?

1) SMS

45%

2) CALLER TUNES

40%

3) GPRS

6%
93

4) OTHERS

9%

Interpretation: SMS is most preferred Value Added Service amongst the respondents. This is
there to get an idea about the most favourable value added services enjoyed by the Vodafone
users.

Ques:7 HOW MANY AVERAGE MESSAGES DO YOU SEND ON WEEKLY BASIS

1) LESS THAN 10

7%

2)10 TO 25

15%

3)25 TO 100

14%

4) MORE THAN 100

9%
94

5) NO SMS

55%

Interpretation: Maximum subscribers dont use SMS service. Yet, some followers use good
number of SMS per month. This is used to identify the usage of the the SMS services by the
Vodafone users.

Que. 8: Are you satisfied with the customer services of Vodafone?

1)

Yes

82%

2)

No, Please specify

18%

95

Interpretation: Maximum Customers are satisfied with Vodafone Service. This helps in getting
the proper knowledge about the satisfied customers of the Vodafone and getting the perception
about the Vodafone among their customers.

Que 9: How do you find the Vodafone Network?

1)
2)
3)
4)

Excellent
Good
Average
Poor

15%
52%
27%
6%

96

Interpretation: Most of the respondents grade Vodafone network as good whether only few has
some complaint about the network. This helps in getting the view of the customers about the
network of the Vodafone.

Que10: Do you think that Vodafone is best amongst all its competitors?
1) Yes85%
2) No

15%

97

Interpretation: According to survey Vodafone is best amongst all its competitors this is used to
give the knowledge about the perception of the customers towards the Vodafone and help in
building strong image in the mind of the customers.

Que 11: Will you ever change your current Vodafone service provider to switch into other
service provider using Mobile Number Portability facility?
1) Yes
2) No

23%
77%

98

Interpretation: Most of the respondents will not change Vodafone as service provider. This
question is used to know the customers loyalty and the customer base of the Vodafone

99

Que 12: According to you which company is tough competitor for Vodafone?
1)
2)
3)
4)
5)
6)
7)

Airtel
Idea
BSNL
Reliance
Aircel
Uninor
Tata Docomo

29%
11%
16%
12%
17%
9%
6%

Interpretation: Most of the respondents think that Airtel is toughest competitor for the Vodafone
in future. This question is used to know the market stand of the Vodafone and its competitors in
the market.

100

Ques: 13: Do you call at customer care?

1) Yes

87%

2) No

13%

Interpretation: 87% of the respondent calls at customer care while 13% respondents do not call
at customer care.The purpose of this question is to know how many times and how often the
respondents call at customer care of Vodafone.

Ques:13: If yes, how often you call at customer care?

101

1) Daily

7%

2) Once a week

16%

3) Once a month

31%

4) Occasionally

46%

Interpretation:Major respondents here call customer care occasionally. 31% respondents

respondents call customer care once a month while 16% and 7% of respondents call once a week
and daily respectively.

102

Ques: 14: For what reason you call at customer care?

1) Value added services

17%

2)Information regarding new schemes

3)Other queries
4)Complaining

19%

30%
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.
Ques: 15: Rate the following on the basis of your satisfaction.

103

Services

Excellent

Very Good

Fairly Good

Average

Poor

Network

31

29

17

SMS Rates

19

35

24

schemes 3

14

27

33

10

32

29

15

Recharge Outlets 12

28

31

14

Call Rates

20

43

19

Added 9

24

29

19

New

and offers

Customer Care

Value

Services

104

Network:

Service

Excellent

Very Good

Fairly Good

Average

Poor

Network

31

29

17

105

Interpretation:
Here major respondents are satisfy with the network coverage. 36% of the respondents
are rate the Vodafones network excellent, 33% rate it very good, 20% rate it farely good while
8% and 3% rate it average and poor.

SMS Rates:

Service

Excellent

Very Good

Fairly Good

Average

Poor

SMS Rates

19

35

24

106

Interpretation:
Here major respondents are not much 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. The purpose of this analysis is to know the
perspective of the customers of vodafone regarding Rates of SMS.

New Schemes and Offers:

Service

Excellent

New
schemes 3
and offers

Very Good

Fairly Good

Average

Poor

14

27

33

10

107

Interpretation:
Here major respondents are not much satisfied with new schemes and offers of Vodafone.
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. The main
purpose of this analysis is to the respondents perspective related to the new schemes and offers
provided by Vodafone

Customer Care:

Service

Excellent

Very Good

Fairly Good

Average

Poor

Customer Care

32

29

15

108

Interpretation:
Customer care service of Vodafone is better compared to some of the other services. 37%
respondents rate it as very good, 33% rate it as fairly good, 17% rate it as average, and 6% and
7% rate it as poor and excellent respectively. The main purpose of this analysis is to know about
the satisfaction of customer care service provided by Vodafone to their customers.

Recharge Outlets:

Service

Excellent

Very Good

Fairly Good

Average

Poor

Recharge Outlets

12

28

31

14

109

Interpretation:
Recharge outlets of Vodafone are majorly rated on fairly good and very good basis. 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. The purpose behind this analysis is to know
about the satisfaction of the Vodafone customers regarding recharge outlets
Call Rates:

Service

Excellent

Very Good

Fairly Good

Average

Poor

Call Rates

20

43

19

110

Interpretation:
Major percentage of respondents are not happy with the call rates of Vodafone. 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. The purpose
behind this analysis is to know about the perception of vodafone customers regarding different
call rates.

Value Added Services:

Service
Value

Excellent
Added 9

Very Good

Fairly Good

Average

Poor

24

29

19

Services

111

Interpretation:
Value added services of Vodafone are quite feasible as compared to some of the other
services. 33% respondents rate it as fairly good, 28% rate it as very good, 22% rate it as average
while 10% and 7% rate it as excellent and poor respectively. The purpose behind this analysis is
to know about the perception of vodafone customers regarding Value Added Services.

112

PART-III

113

FINDINGS

Maximum Customers are satisfied with Vodafone Service.

Most of the respondents using Vodafone connection since more than a year.

Most of the respondents expense around 151-350 on mobile per month.

According to survey Vodafone is best amongst all its competitors.

Most of the respondents think that Airtel is toughest competitor for the Vodafone in
future.

Most of the respondents will not change Vodafone as service provider.

Most of the respondents grade Vodafone network as good whether only few has some
complaint about the network.

SMS is most preferred Value Added Service amongst the respondents.

Maximum subscribers dont use SMS service. Yet, some followers use good number of
SMS per month. (As per the new guidelines SMS services are restricted to 200 SMS/day
by the user which is now is not cost effective due to its high charges and has a restrictions
over it for a day).

39% of the respondents use Vodafone services from past more than 1 year while the
lowest is 14% respondents using Vodafone services less than 1 month.

84% of the respondents use pre-paid services while only 16% of the respondents use
post-paid services.

37% of the respondents use Vodafone for SMS services while only 14% of the
respondents use Vodafone for Value Added Services.
114

87% of the respondent calls at customer care while 13% respondents do not call at
customer care.

31% respondents call customer care once a month while 16% and 7% of respondents call
once a week and daily respectively.

As from the above study we can easily find out that the most of the customers of
Vodafone are satisfied with the services provided by the Vodafone .

Customers expect more balanced plans and offers from the Vodafone for easy
subscription and reduce the call rate of their plans.

Customers have a positive and strong image of Vodafone in telecommunication sector.

115

RECOMMENDATIONS

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 Lucknow city:

Vodafone should introduce more schemes and offers in faster intervals.

Vodafone should introduced new SMS schemes in their youth plans to meet the
challenges of its rivals.

Vodafone should decrease call rates of STD and ISD to increase its subscriber base.

Some customers are not aware of Vodafone Tariff plans and new schemes which is very
useful for him.

Another problem for the customer is some people are think Vodafone plans are very
expensive, it is because of his unawareness. Thus it is very necessary to concentrate on
advertising of product.

Customers are dissatisfied with retailers due to non information about the recharge plans
and quality of information provided by the retailers is not satisfied for the customer.

116

CONCLUSION

It was a learning experience studying the customer satisfaction towards Vodafone services in
Lucknow 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

117

BIBLIOGRAPHY

Books were considered

Research Methodology by C. R. Kotharis

Marketing management by Mr. Philip Kotler.

Marketing Strategy and Management by Mr. Michael J. Baker.

Business magazine& news paper

The Times of India

The Economic Times

4Ps, Pitch, Business & Economy

Websites

https://en.wikipedia.org/wiki/Vodafone_India

http://www.business-standard.com/article/companies/subscribers-for-3g-set-to-double113072900666_1.html

http://gadgets.ndtv.com/telecom/news/vodafone-india-reveals-14747-million-subscribers25-million-use-3g-services-327810

https://www.vodafone.in/3gworld/pages/3g_overview.aspx

http://microsite.vodafone.in/sustainability/pdfs/sustainability_report2013.pdf

http://www.ibef.org/industry/telecommunications.aspx
118

ANNEXURE

119

QUESTIONNAIRE
Ques: 1. What is the age group you belong to ?
BELOW 18
18-27
27-40
40 AND ABOVE

Ques: 2 Under which of the income group you belong to ?

Rs. 4,000 OR LESS
Rs. 4,000-10,000
Rs. 10,000-20,000
Rs. 20,000 & ABOVE
Not applicable

Ques: 3 Which of the following services do you use of Vodafone?

pre-paid
post paid

Ques: 4 How long are you using Vodafone connection?

LESS THAN 6 MONTHS
6-12 MONTHS
MORE THAN A YEAR

Ques. 5: What is your monthly Expenditure on Mobile phones (in Rupees)?

120

BELOW 50
50-150
151-350
351-500
500 AND ABOVE

Ques: 6 Which of the following vas do you use?

SMS
CALLER TUNES
GPRS
OTHERS

Ques: 7 How many average messages do you send on weekly basis?

LESS THAN 10
10 TO 25
25 TO 100
MORE THAN 100
NO SMS

Que. 8: Are you satisfied with the customer services of Vodafone?

Yes
No, Please specify
Que 9: How do you find the Vodafone Network?
Excellent
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Good
Average
Poor
Que10: Do you think that Vodafone is best amongst all its competitors?
Yes
No
Que 11: Will you ever change your current Vodafone service provider to switch into other
service provider using Mobile Number Portability facility?
Yes
No
Que 12: According to you which company is tough competitor for Vodafone?
Airtel
Idea
BSNL
Reliance
Aircel
Uninor
Tata Docomo
Ques: 13: Dou you call at customer care?
Yes
No
If yes, how often you call at customer care?
Daily
Once a week
Once a month
Occasionally
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Ques: 14: For what reason you call at customer care?

Value added services
Information regarding new schemes
Other queries
Complaining

Ques: 15: Rate the following services on the basis of your satisfaction.

Services

Excell

Very

Fairly

Avera

Poo

ent

Good

good

ge

Network
SMS rates

123

New schemes and

offers
Customer Care
Recharge outlets
Call Rates
Value

Added

Services

THANK YOU

124