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A Marketing Research Report on
VODAFONEVODAFONE
NAMEShah Nikesh
CLASSS.Y. B.B.A
ROLL NO.
SEAT NO.____
ACADEMIC YEAR2008-09
COLLEGEShree H.N. Shukla College, Rajkot
SUBMITTED TOSAURASHTRA UNIVERSITY
GUIDED BYMrs. Dina Kanani
1
DeclarationI the undersigned NIKESH SHAH a student of S.Y.B.B.A.,
here by declare that the project work presented in this respect is my
own work and has been carried out under the supervision of Mrs.
Dina Madam of H.N. Shukla COLLEGE, RAJKOT. This work has
not been previously submitted to any other university for any other
examination.
Date: Student Sign:
Place:
2
Preface
In this era of globalization where every minute India is moving
a step ahead and expanding it horizontally, management in India is
heading towards a profession. The demand for management’s
professionals is increasing day by day. In such a competitive
surrounding it becomes a requirement to have an edge over others and
B.B.A is such a course, which helps and assists students in doing that.
The practical studies are treated as a different subject in B.B.A
which helps the students in practically applying their theoretical
knowledge. It helps us to face competition, builds up our confidence
and also add something to our personality. Over and above in this fast
moving economy, here practical studies play an important role in
molding our carriers.
3
Acknowledgement
I am much obliged to express my deep gratitude to all the
personalities who spared their valuable time and gave me helpful co-
operation and guidance for my Project Report.
I am heartily grateful to the management of Shree H.N. Shukla
particularly to the in charge Mrs. Dina Kanani for her helpful co-
operation, inspiration, interest and valuable guidance in preparing this
report.
It is a matter of a great pleasure and excitement for me. I
express my sincere thanks to both Gentleman and staff members for
devoting their valuable time and providing extreme co-operation and
guidance.
Last but not least, I would like to express my sincere thanks to
all respondents, friends and family members who have helped me in
preparing report through the preparation of this report.
Date: Student Sign:
Place:
4
Index
NO. PARTICULARS PAGE NO.
1 General Information 6
2 Company Profile 19
3 Marketing Department 25
4 Finance Department 45
5 Personnel Department 53
6 Future Plans 66
7 SWOT Analysis 68
8 Suggestion 74
9 Contribution 76
10 My Observations 78
11 Conclusions 80
12 Bibliography 83
5
GeneralGeneral
6
InformationInformationContents
NO. PARTICULARS Page No.
1 Introduction 8
2 Overview of company 10
3 History & Development of Company 11
4 Achievements 13
5 Location of Company 17
6 Types of Management Structure 18
7
Introduction
Vodafone is a leading global telecommunications and data
services provider operating with a high growth strategy in 17
countries. It is a dynamic and agile player with a strong track record
as:
The first to market with an international 3G video mobile network.
One of the most profitable 2G mobile voice and data network operators.
As a major owner and operator of the fibre optic broadband and fixed-
line networks in England, serving as a telecoms gateway to China.
It is a world no. 1 in telecommunication.
Vodafone started mobile business in 1983 in our home market
of England and now serves over 40 million customers. Our array of
telecommunications and data network offerings provides a depth of
technological knowledge and insight into emerging consumer trends.
This breadth of services in so many markets around the world also
allows our operations to exploit opportunities, synergies and our
critical mass in order to maintain our leadership position. Our
telecommunications and data infrastructure support offerings in the
areas of mobile telephony (voice and video based multimedia), fibre-
optic broadband networks, fixed-line services and radio broadcasting
8
VODAFONE is proud to be the first international provider of
3G video mobile services and an early adopter of the latest and most
promising mobile phone technology.
Another of our major telecommunications subsidiary is
VODAFONE Telecommunications International Limited which was
listed on the England and New York stock exchanges in October
2004. VODAFONE Telecom has a significant presence, and in many
cases is a market leader, in nine dynamic markets, operating or rolling
out mobile services in England and Macau, India, Israel, Thailand,
Ghana, Indonesia and Vietnam. The 3G network in England and a
fixed-line telecom running there on a fibre optic network is also part
of the VODAFONE Telecom business. VODAFONE Telecom is
built on a high-growth strategy focused on mobile
telecommunications services markets with economic prospects and
good demographics. A number of VODAFONE Telecom markets
such as India remain significantly under penetrated and offers
significant opportunities for future growth. In other markets such as
England and Israel, mobile phone penetration is higher but customers
are very eager to adopt new services and applications, offering growth
prospects in providing technologically-advanced value-added
services.
9
Overview
Name of the company : Vodafone ltd.
Size of the unit : Large Scale Unit
Form of organization : Multinational co.
Web site : www.vodafone.in
Year of establishment : 1984 in England
Stage of product : Maturity
Name of the service : Post paid cards
Prepaid cards
Short Message Service
Voice mail services
Vodafone power service
“Through continuous innovation, VODAFONE promises to
liberate, stimulate customers from the shackles of time and spaces”
10
History & Development of the company
Vodafone Limited is a leading international corporation
committed to innovation and technology with businesses spanning the
globe. Its diverse array of holdings range from some of the world's
biggest port operators and retailers to property development and
infrastructure to the most technologically-advanced and marketing-
savvy telecommunications operators. Vodafone reports turnover of
approximately UK 242 billion and UK 124 billion for the year ended
31 December 2006 and for the unaudited results for the six months
ended 30 June 2007 respectively With operations in 56 countries and
over 220,000 employees worldwide, Vodafone has five core
businesses - ports and related services; property and hotels; retail;
energy, infrastructure, investments and others; and
telecommunications.
Vodafone's achievements include being:
The world's leading port investor, developer and operator with 44 ports
across Europe, the Americas, Asia, the Middle East and Africa.
A pioneer of mobile multimedia communications with the launch of
third-generation mobile phones and networks.
A visionary and international telecommunications operator through
Vodafone Telecommunications International Limited which provides
mobile phone networks and data services in nine dynamic markets in
Asia, the Middle East and Africa.
11
VODAFONE Whampoa Limited is among the largest
companies listed on the main board of the England Stock Exchange.
Flagship companies include VODAFONE Port Holdings,
VODAFONE Whampoa Properties, A.S. Watson, Cheung Kong
Infrastructure and VODAFONE Telecom.
VODAFONE dates back to the 1800s and while its operations
now span the globe, it continues to remain based in England.
VODAFONE's executives and staff are a multicultural mix as diverse
as the reach of the corporation's operations.
VODAFONE has a strong commitment to the highest standards
of corporate governance, transparency and accountability - principles
which have been recognized by the receipt of numerous awards and
commendations.
Landmark buildings in the Group's portfolio include the 62-
storey Cheung Kong Center in the Central district of England, the
Oriental Plaza in Beijing, and The Center in Shanghai. Prestigious
residential properties in the United Kingdom include Royal Gate
Kensington, Belgravia Place and Albion Riverside. Other holdings
include a stake in the Pacific Century Place Marunouchi office and
hotel towers beside Tokyo Station and a beach and golf resort in the
Bahamas.
The Group, together with Cheung Kong (Holdings) Limited,
has set up a joint venture company, Harbour Plaza Hotel Management
(International) Limited, to operate and manage hotels under the
portfolio of the VODAFONE Property division.
12
13
Achievements & Accreditations
1. VODAFONE Essar Limited, VODAFONE Mobile Services
Limited, Fascel Limited, VODAFONE Telecom East Limited,
VODAFONE Essar South Limited, Aircel Digilink India Limited and
BPL Mobile Cellular Limited (jointly hereinafter to as VODAFONE)
shall use reasonable endeavors to check the accuracy of the
information published on its Site. VODAFONE and any other
VODAFONE product or service name referred to on the
VODAFONE website are trade marks of VODAFONE Essar Limited.
2. Content (information, communications, images and sounds
contained on or available through VODAFONE) is provided by
VODAFONE, its affiliates, independent content providers and third
parties. The contents of VODAFONE are copyright © VODAFONE
its affiliates, independent content providers or third parties. All rights
reserved. The contents of VODAFONE cannot be reproduced,
modified, transferred, distributed, republished, downloaded, posted or
transmitted in any form or by any means including but not limited to
electronic, mechanical photocopying or recording without the prior
written permission of VODAFONE Essar Limited. You agree that the
material and content contained within or provided by VODAFONE is
for your own personal use only and may not be used for commercial
purposes or distributed commercially.
3. VODAFONE will use its reasonable endeavors to maintain
VODAFONE in a fully operating condition. It is not responsible for
the results of any defects that exist in VODAFONE You should not 14
assume that VODAFONE or its content is error free or that it will be
suitable for the particular purposes that you have in mind when using
it. VODAFONE reserves the right to make subsequent changes to it,
and services may be modified, supplemented or withdrawn.
4. It is a condition of us allowing you access to the information on
VODAFONE that you accept we will not be liable for any action you
take relying on the information on VODAFONE. VODAFONE will
not be liable if your use of materials or information from
VODAFONE results in the need for servicing, repair or correction of
equipment or data, you assume any costs relating to the above.
VODAFONE reserves the right to charge for access to certain
information on VODAFONE. VODAFONE will inform you where a
charge will be incurred by you for accessing certain services or
information on VODAFONE.
5. If you’re PC does not support relevant technology including but not
limited to encryption you may not be able to use certain services or
access certain information on VODAFONE.
6. You may not mirror any material contained on VODAFONE on
any other server without the prior written consent of VODAFONE
Essar Limited. Any unauthorized use of the contents of VODAFONE
either under this clause or clause 4 above may be in breach of
copyright laws or trademark laws.
7. You acknowledge that VODAFONE has no control over and
excludes all liability for any material on the Internet which can be
15
accessed by using VODAFONE Neither can we be deemed to have
endorsed the content.
8. By submitting any material to us via the VODAFONE website, via
email or otherwise, you do so in the knowledge that VODAFONE
may copy, modify, distribute or create a derivative work from that
content in any form. You warrant that the material is fit for
publication and agree to indemnify us if any third party takes action
against us in relation to the material that you submit. You warrant that
you believe VODAFONE may publish the material you submit and/or
make use of it or any concepts described in it in our products or
services without liability and you agree not to take action against us in
relation to it.
9. In a few areas of VODAFONE we may ask you to provide personal
information that will enable us to use the information you provide us
with to keep you informed of our latest products and services after
your visit to VODAFONE The personal information will be used in
accordance with our online privacy policy.
10. You agree not to cause, nor knowingly allow others to cause, any
nuisance, annoyance, or inconvenience, whether to VODAFONE or
any of its customers or users of VODAFONE by any means. You also
agree not to use VODAFONE to transmit or post any material which
is defamatory, offensive or obscene or menacing character or which
may in our judgement cause nuisance, annoyance, inconvenience to
VODAFONE, or any other person or which is illegal. You will not
16
use VODAFONE such that you would cause the whole or part of
VODAFONE to be interrupted, damaged, and rendered less efficient
or impaired in any way.
11. The service is accessed via the World Wide Web which is
independent of VODAFONE and VODAFONE. Your use of the
World Wide Web is solely at your own risk and subject to all
applicable national and international laws and regulations.
VODAFONE have no responsibility for any information or service
obtained by you on the World Wide Web.
12. VODAFONE does not accept responsibility for any defects that
may exist or for any costs, loss of profits, loss of data or
consequential losses arising from your use of, or inability to use or
access or a failure, suspension or withdrawal of all or part of the
service at any time. VODAFONE excludes all liability whether in
contract, tort (including liability for negligence) or otherwise for the
accuracy, suitability, quality or completeness of any information and
the value and integrity of goods and services offered by third parties
over VODAFONE You acknowledge that we have no control over
and we exclude all liability for any material on the World Wide Web,
which can be accessed by using VODAFONE.
13. We may suspend or vary the whole or any part of the
service offered on VODAFONE for any reason, at any time at our
sole discretion.
14. VODAFONE reserve the right to vary the terms of this contract
17
from time to time, such variations becoming effective immediately
upon posting of the varied Legal Statement on VODAFONE By
continuing to use VODAFONE you will be deemed to accept such
18
Location of The Company
When a new business unit is to be established the main
decision to be taken about location of the industry. Location of
the unit is a vital factor to deciding the profitability of company.
There are many factor which are to be kept in mind while
selecting the location of the plant. It includes internal and
external factors. Even if promoters have best ability to invest
and have the effect management skills but if they don’t take
care of location, it will decline prosperity of the company.
19
Types of Management Structure
Board of Directors
Production Marketing Finance H.R.Department Department Department Department
Finance Manager H.R. ManagerManu. Dept. Assembling
Dept.Mkt. Executive
Supervisor Supervisor Employee
Worker Worker
20
Company Company 21
ProfileProfile
22
Contents
Sr.
No.
Particulars Page No.
1 World wide VODAFONE 21
2 Presence of VODAFONE a Cellular 22
3 VODAFONE – The Brand 23
4 In the Pipeline 24
23
World Wide VODAFONE
VODAFONE is a leading global telecommunications and data
services provider operating with a high growth strategy in 17
countries. It is a dynamic and agile player with a strong track record
as:
VODAFONE started mobile business in 1983 in our home
market of England and now serves over 40 million customers. Our
array of telecommunications and data network offerings provides a
depth of technological knowledge and insight into emerging
consumer trends. This breadth of services in so many markets around
the world also allows our operations to exploit opportunities,
synergies and our critical mass in order to maintain our leadership
position. Our telecommunications and data infrastructure support
offerings in the areas of mobile telephony (voice and video based
multimedia), fibre-optic broadband networks, fixed-line services and
radio broadcasting
24
Presence of VODAFONE a
Cellular
The biggest merger over took place in the history of wireless
telecommunication services. The first time ever, the Essar group
joined hands for working together. In the year 2006
VODAFONE Cellular operates in Andhra Pradesh,
Chhattisgarh, Goa, Gujarat, Madhya Pradesh and Maharashtra
Mumbai and Delhi
VODAFONE Cellular is committed to achieving total
coverage. Its advanced Cellular network build up helps VODAFONE
offer seamless coverage in over 1 towns and unsurpassed highways
coverage across all its circle of operation. These include 23 districts
from Andhra Pradesh, 53 cities across Madhya Pradesh, entire
Gujarat, 400 kms of highway across 85 towns and cities. It is the first
cellular operator in India to offer uninterrupted highway coverage
across all its circle of operations.
25
VODAFONE – The Brand!
Brand Name : - VODAFONE Ltd.
Brand Person : - ARUN SARIN
Brand Delivery : - World class Cellular Telephony
with value Added Services
Brand Presence : - In the state of Gujarat, Madhya, Bihar,
Pradesh, Maharashtra, Goa, M.P., U.P.,
Andhra Pradesh, Chhatisgarh, Delhi, H.P. etc.
Brand Colour Significances : -
* The White background : - Youth & Energy
* Red Colour : - Energy
* Red Colour Text : - Solidarity
* The VODAFONE : - Innovation
Brand Launch : -
22th August, 2007
A media spent of Rs. 40-42 crores in T.V advertisements, Print ads,
Murals, brand launch parties, P.R.Campaigns, in all a high decibel
and Discussed launch.
26
In the Pipeline
The current period is a very crucial one for all the cellular
operators in India, due to a simple reason of a cold cellular war being
on, internally within the competitors as well as externally to be fought
with the WLL and the TRAI. This being the gestation period for the
WLL cellular operator to be in the market has to launch, innovate and
improve their schemes on a more customer friendly based, so that
their clientele is intact. In such a situation price crunches on
outgoings, free incoming calls, free airtime, and other innovated and
users-friendly value added services are the only options.
To be intact at what VODAFONE Cellular is today, also
requires carrying out any of the above options and thus the one major
plan in the pipeline, coming in within 7-8 months is to exceed
customer usage of cellular phones than landline users which presently
is 10 crores, compared to landline users of 4 corers.
Secondly to develop and synergies on such value Added
Techniques that are customer friendly and beneficial to the society.
Thirdly in the coming months they are planning to reduce the
cost of airtime, so that there is a benefit to the users.
A few more cell site launches, appointments of customers’
convenience center, Retailers and distributors are in the pipeline,
which would be beneficial to all concerned.
27
MarketingMarketing DepartmentDepartment
28
Contents
Sr. No. Particulars Page No.
1 Importance of marketing Department 27
2 Organization Chart 29
3 Marketing – Yesterday & Today 30
4 Advertising 31
5 4 P’s of marketing 37
6 Market Share 43
7 Competitors 44
29
Importance of Marketing
DepartmentMarketing is the focus point of all business activities because
the objectives of all business enterprise are to satisfy the needs and
wants of the customers. Production and purchase has no meaning
unless a firm is able to market the goods and services. Nothing
happens unless somebody sells something. Marketing is the
distinguishing feature of business. A business is essential part from all
other human organization by the fact that it markets the product or
services. Marketing is the basic operative function of all business
firms. It serves on the basis of business planning and generates
revenue for the firm. Efficient marketing management is essential for
the survival and growth of every enterprise.
Marketing is a system of integrated business activities designed
to develop marketing plans and programs leading to the satisfaction of
customer wants.
Marketing department represents an important functional area
of business management efforts for the flow of goods and services
from the producer to the consumers.
Marketing department of the VODAFONE Cellular Limited is
a crucial part of its organization. The company can achieve its
subsidiary objectives along with the primary objectives with the help
of marketing department. It not only helps the company to achieve the
goals that are directly related to marketing department but also helps
30
in achieving the goals that are related to other departments of the
organization.
With the help of the marketing department VODAFONE
Cellular as a company has not be successful in gaining the sales
volume but also earned goodwill for itself. As a result of the efforts
made by the marketing department VODAFONE Cellular is enjoying
a prestigious position in the telecom industry.
31
Organization Chart
CMO (Chief Marketing Officer) -Bombay
DGM (Marketing)(Director General Manager) - Ahmedabad
AssistantManagerOutdoorMarketing
32
AssistantManager - Prepaid
AssistantManager - Postpaid
Assistant Manager (Value Added Service)
Marketing Yesterday & Today
Business is changing at the speed of thought – literally, as
across the globe, somewhere or the other; someone comes up with
something that revolutionizes the entire concept of business, as it is
understood then. To keep pace with these developments, marketing
has become more intricate and scientific than ever before. Today no
firm can afford to rest on past laurels and be complacent about its
market. Competition is more intense and cutthroat than ever before,
and the firm has to meet all these challenges, most in the form of
direct or indirect marketing strategies.
Yesterday was different, in the sense that firms that enjoyed a
good market reputation did not need to market themselves to their
consumers again and again. But today, times have changed. Keep
competition poses challenges that have to met and countered, and the
customers are more demanding than they were around 20 years back.
Past achievements are no longer a company’s claim to supremacy.
Earlier, marketing was confined to the narrow scope of selling.
But now, marketing is concerned with all activities aimed at finding
wants and filling them. The mantra followed the world over is
“customer is the king”. It is the customer alone who keeps the
business going and provides employment to people. If the current
trends were anything to go by, the future would only add to the
misery of unprofessional or pedantic forms. Only firms willing and
able to change according to changing market conditions and
consumer demands would thrive in the market.
33
ADVERTISING
“The best advertising is done by satisfied customers”
-Philip Kotler
Advertising can be defined as mass paid communication of
goods, services or ideas by an identified sponsor. It is paid
communication because the advertiser has to pay for the space or time
in which his advertisement appears in the recognized media such as
news paper, magazines, radio, T.V., Cinema film, posters, etc.
Advertising can create market for a new product. It is very powerful
tool for the creation and retention of consumer demand.
VODAFONE Cellular Limited spends more than 30% of its
profit in advertisement. It uses almost all media for its advertisement.
VODAFONE Cellular Limited does its advertisement through ‘Lowe
Lintas’ which is an advertising agency. VODAFONE’s advertisement
is such that it informs guides; protect buyers and helps in increasing
the standard of living.
VODAFONE Cellular Limited use following Medias for
advertisement
Print Media: -
It gives advertisement in each and every newspaper,
magazines, and periodicals. The company also distributes calendars,
cards during Diwali, diary, pens, clocks, key chains etc. to Retailers,
customers.
34
Posters: -
It uses printed posters which stick on the wall.
Banners: -
Company provides banners to each and every Retailer and also
to the Distributors.
Hoarding: -
The Company has done the use of hoarding at the major point
of cities in different parts of the country.
Glow Shine Board (GSB): -
It is an electric board which is given to each and every Retailer.
35
Market Segmentation
What is market segmentation?
Market consists of buyers and buyers differ in one or
more respect. Market segmentation is a method for achieving
from limited marketing resources by recognizing differences in
the response characteristics of various parts of the market. In
simple words market segmentation is nothing but just diving
market into several groups.
There are mainly four types of market segmentation.
(1) Geographic Segmentation
(2) Demographic Segmentation
(3) Psychographic Segmentation
(4) Behavioral Segmentation
For “Vodafone” They produce only agriculture products
like ox operated drill, Tractor Operated Drill so for the company
main segmentation of their product is agriculture products users
farmers etc.
36
Channel of Distribution
It is a process through which the goods or consumer from
the producers. Distribution decision relates with moving.
Product available at a right place, in right time for the right
people.
Distribution channels are system of economic institution
through which a producer of goods delivers them into the hands
of their uses. After the production the producer has to take
decision how to do selling and distribution their products. So,
how a product reaches to the consumer from the producer is
called “Channel of Distribution”.
Manufacturing or Production
Direct Consumer Dealer Court of (Gujarat)
Consumer
37
Pricing Policy
Pricing policy means to determination our product, at how
much cost it can be sold. The pricing policy of company
influences it’s sales to a large scale. Price is one element of
marketing mix that produces revenues the other element of
marketing mix is product cost. A wrong pricing decisions avoid
effects of all right decisions related to products.
When a unit take pricing decision they have to consider
such factor like taxes, expenses, Govt. policy, Profit etc. In
“Vodafone” Pricing is deciding as under:
Raw material cost + Wages of labour + Accessories +
Other expenses + Taxes + Profit = Price of a product.
38
After Sales Services
After sales services is the best part of the Vodafone. Because
they arrange a special department for that service. Means when any
customers buy a card of Vodafone after some days the after sales
service department is contact to the customer and asking them if there
any problems related to their product or not.
In short we can say once they sold their products to the
customers they are keep in touch with their consumers.
39
FOUR P’S OF MARKETING MIXMarketing Mix of a Company includes 7 P’s of marketing. But
generally they can be precisely describe under four major heads viz.
Product mix, price mix, promotion mix, and place mix. Product mix
answers the question as to what, when, how, how much etc. to
produce. Price mix answers the question as to the produce good
should be sold at what price. Promotion mix suggests the promotional
activities that have to be undertaken. While place mix describe
distribution modes and channels
1. Product Mix: -
The product is the most tangible and important single
component of the marketing programme. Product said to be the heart
of the marketing mix. The whole marketing programme is based on
the product.
It is said that nothing happens in our economy unless there is a
sale or purchase of product. Product is the sole of all over marketing
activities without a producer; marketing can’t be imaged through
which the transaction takes place.
40
It gives life to all marketing programme. So main responsibility
of management should be to know its product well in the book of
Philip Kotler there is a sentence “The first commandment in
marketing knows their consumer the second is to know their product.”
It is not necessary that product must be physical it may be
service product and other but main theme is that it is capable of
delivering satisfaction of wants or need.
In VODAFONE Cellular Limited, there is only one product i.e.
sim card through which company provides services.
What is Sim Card?
The mobile phone is widely used in the markets now a day. It is
just like a necessarily of a businessman or any kind of professional
person. A sim card is one type of card which is fixed on the backside
of a mobile phone. Any sim card service providing company in India
is not manufacturing sim card but they import the sim cards from
different countries. The VODAFONE Cellular Limited Company
imports the mobile sim card from Switzerland.
2. Price Mix: -
Pricing the product is one of the important elements in
marketing mix. It is the most critical decision in marketing
management, so it is said that “Success or failure of business depends
upon its product price policy”. Price is the exchange value of the
41
goods or services in terms of money. The exchange value of product
is called price. The decision regarding pricing must be taken after
considering every aspect of business and while fixing the prices, not
on profit but also various factors i.e. social responsibility also to be
considered.
VODAFONE Cellular Limited determines the price in such a
manner as to offer a reasonable amount of profit to the manufacturer,
a reasonable remuneration to the middlemen and the maximum
satisfaction to the consumers. It has found that a price kept by
VODAFONE Cellular Limited is much lower and quite reasonable in
comparison to its competitors.
A company can pursue any of the six major objectives by its
pricing which are as follows:
1. To survive in the market.
2. Maximize current profit
3. Maximum current revenue
4. Maximum sales growth.
5. Maximum market skimming
6. Product quality leadership.
VODAFONE has adopted many methods for pricing which are
as follows: -
Penetration Pricing: -
42
This method is generally adopted at the time when the
company has just entered into the market or newly started company
uses this method. In this method the product price is lower then the
substitutes in the market through which customers are attracted.
Psychological Pricing: -
Sellers should consider the psychology of prices in addition to
their economics. Many sellers believe that the prices should end in
odd numbers for such company prices dominate in the newspaper all
in odd numbers i.e. product price is Rs. 299 in stead of Rs. 300.
Skimming Pricing: -
This method by which company can attract the customer
mostly this pricing methods is always used in the time of festival such
as Diwali offer, Navratri offer etc. VODAFONE takes benefit of all
festival because they placed skimming price for short period on
Navratri and Janmastami.
3. Promotion Mix: -
Promotion plays an important role in stimulation of demand
and sales of the product. Promotion is basically communication
process by which producer of the product or service draw attention of
the consumer for prospective consumer towards their products.
Sales Promotion: -
43
Sales promotion is a key ingredient in marketing campaigns.
Where advertising offer a reason to buy, sales promotion offers on
incentive to buy. Sales promotion includes tool for consumer
promotion (coupons, etc.) Trade promotion (price-off etc.) etc Sales
promotion tools are used by most organization, including
manufacturing, distributors, Retailers trade associations and non
profit organization.
4. Place Mix: -
Place mix is also known as Distribution Mix. This stands for
the various activities the company undertakes to make the producer
easily available to the customer. In today’s economy the producer
customer are separated by vast distances. Place mix is nothing but
marketing activities in which movements or flows of goods or
services are there from primary producer to ultimate consumer. It
includes Distribution Channel: -
Distribution Channel: -
Channels of distribution generally depend upon the nature of
product, volume of sales and trade practices adopted. The set of
marketing institutions participating in the marketing activities which
involves the movement of all goods and services from the primary
producer to the ultimate user or consumer is called the distribution
channel. In modern era, with the increase in size and production of the
unit, it is very difficult to sell the products directly to the consumer so
44
they have to adopt, distribution channel with middlemen like
wholesalers, distributors, Retailers, etc.
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DISTRIBUTION CHANNEL
Distributor
Dealer
Salesmen
Retailer
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Company
Customer
MARKET SHARE IN GUJARAT
Company Coverage (%)
VODAFONE 30
IDEA 15
AIRTEL 20
RELIANCE 10
BSNL 15
TATA INDICOM 10
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COMPETITORS“Poor firms ignore their competitors; average firms copy their
competitors; winning firms lead their competitors.”
Today in this competitive world VODAFONE has got many
competitors which are as follows: -
AIRTEL
IDEA
BSNL
RELIANCE
TATA INDICOM
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FinanceFinance
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DepartmentDepartmentINTRODUCTION
Something must be direct the how of economic activity and
facilities its smooth operation. Finance is the agent that produces this
result. Nature of financial management refers to its functions, scope
and objectives.
Financial management is that managerial activity which is
concerned with the planning and controlling of the firm’s financial
resources. In modern times finance is the life-blood of the business.
No matter, whether the business is big or small financial is the equally
important. The financial resources must proper planned and control in
order to achieve the best out of available. So, financial resources
should be very properly.
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ORGANIZATION CHART
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Vodafone
CHIEF EXECUTIVE OFFICERS
FINANCE MANAGER
ACCOUNTANT
ASSISTANT ACCOUNTANT
FINANCIAL PLANNING
Generally, financial planning means deciding in advance, the
financial activities are to be carried on to achieve the objective of the
firm. In broader séance, in the words of Walker and Boughn as;
“financial planning includes the determination of firm’s financial
objectives, formulating and promulgating financial polices and
developing and procedures.”
Financial planning is necessary to achieve both long term and
short term objectives. A sound financial planning includes how much
need of funds for both the terms. Then from where they are to be
received and utilized.
“Vodafone” would evaluated different proposal placed before
them and selects the best out of them. It estimates how much capital is
going to be required for various proposals and how much is the return
on the capital employed. The financial manager lays down the
estimate on the capital of cash per week, per month and per year.
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CAPITALIZATION
At the time of incorporation of any business, it is the first
problem before the promoters to decide how much capitalization
should be made in a business. The amount of capital of any time
should not exceed nor less than the amount required. So, it is
necessary to have proper capitalization for the success of the
enterprise. But Gerstenberg defines it as;
“The total accounting value of all capital regularly employed in
business, it includes owner’s capital, borrowed capital and any other
sources.”
Thus term includes;
1. The value of ordinary and preference shares
2. The value of all surplus earned and capital
3. The value of bonds and security still not redeemed
4. The value of long term loans
However the modern view includes short term funds or
liabilities under the firm. It should be properly capitalized.
“Vodafone” issue shares. So, all these terms do apply.
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CAPITAL STRUCTURE
Capital structure is the permanent financing of the firm
represented by long term debt, preferred stock and net worth.
Capital structure refers to its capitalization. Company procures
funds by issuing various types of security i.e. ordinary shares,
preference shares, bonds and debentures. Before issuing securities the
unit should decides what kind of securities should be issued? A
balanced capital structure means and ideal combination of ownership
capital and borrowed capital.
“Vodafone” issues shares and it has reserves or surplus. The
firm has taken loans from financial institutes. So capital structure of
the firm consists ownership capital as well as borrowed capital.
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FINANCIAL LEVERAGE
Financial leverage is also known as trading on equity. In other
words, the effect on earning by the use of fixed cost securities is
called financial leverage. It is the ratio of return on share holders
equity and the net rate of return on total capitalization.
The degree of financial leverage can be calculated at any level
of operating profits as follows.
Financial Leverage = Operating Profits or E.B.I.T. E.B.I.T. – Interest or P.B.T.
Financial leverage is followed by this firm as shares and
debentures are issued.
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FINANCIAL POSITION
PERTICULERS Rs.Capital 3,460,811,000Reserves 1,481,000Loan borrowing 0000000000
TOTAL 3,462,292,000
Investment in fixed assets Rs. 5,54,754,000
Investment in current assets Rs. 1,69,423,000
Total investment Rs. 7,24,177,000
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PersonnelPersonnel Department Department
INTRODUCTION
For survival growth of organization it requires better
combination of Men, Money, Machine and Material. From these
elements Men is most difficult and challenging element. In general
sense, management of human resources in an organization is called
personnel department.
In present Personnel department is essential due to complexity
of HRM in an organization. Personnel can be defined in the words of
Pigors and Hynes as
“Personnel management is method of developing potentialities
of employees so that they get maximum satisfaction out of their work
and give their best efforts to organization.”
In the case of “Saurashtra Rachanatmak Samiti” it has
personnel; manager to manage the HRM of their sector. Thus, it has a
well established personnel department for managing their workers and
employees.
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ORGANIZATION CHART
59
Vodafone
BRANCH MANAGER
PERSONNEL MANAGER
STAFF MEMBER
AGENTTRAINAGENT
NEW COMER
MEN POWER PLANNING
Men power planning is primary and essential function of HRM.
It is initial stage to get right type and right number of personnel in an
organization. As human resources is most valuable among all capitals.
It should be planned carefully and systematically.
In the words of Coleman Bruce “Men power is the process of
determining men power requirements in order carry the integrated
plans of the organization.”
In regard to personnel department of “Vodafone” is very
conscious because it is through out depended on HRM. It takes into
account the facts and of present work forces on the basis of such
available information of HRM.
1. TOTAL EMPOLYEES: 165 (near about)
2. SALARISE PERSON: 25 (near about)
3. 3 SALARISED AGENT: 140
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4. FOREMEN: 12 (near about)
Men power planning thus enables the organization to make
additions or deductions in about employees. For that it makes both
short term and long term men power.
RECRUITMENT, SELECTION AND PLACEMENT
1) RECRUTMENT:
The following factors affecting recruitment;
a) Size of organization.
b) The employment condition in the community where the organization
is located.
c) Working condition wage and salary and other benefits.
In “Vodafone” they have usual three methods of recruitment;
1. Direct method
2. Indirect method
3. Third party
If they want highly learned employees than they, apply indirect
method. And if they want semi skilled labour than they, ask to their
worker to ask their relative to apply for job.
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2) SELECTION:
Second stage after having adequate number of application for
particular job is selection.
In short, it refers to choice best condition out of available. In
fact selection process begins with initial screening then follows
different types of test and interviews.
The personnel department of “Vodafone” follows a perfect
selection procedure.
After receiving application, first of all takes preliminary
interview and employment test. Personal interview and check
reference of applicants. More ever they give importance more to
mentally fitness of person. Lastly they would prepare list of final
applicants who have crossed above hurdles and suitable for jobs.
Finally they have been given appointment letter.
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As far as unskilled labors are concerned they take advice from
present workers who can suggest the names of their friends and
relatives for selection in job.
3) PLACEMENT:
Once a candidate select for a job he should be placed on
suitable job. “Placement can be described as the determination for the
job to which an acceptable is to be assigned and his assignment to his
job. Sometimes employees are put on probation period.
In “Vodafone” sometimes selected sub ordinates employees are
placed job for two or three months depended on nature of the job
while there would be no testing in case of experienced and salaries.
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TRAINING AND DEVELOPMENT PROGRAMME
Training can be described as learning sequence of programmed
behaviors. It increases knowledge and skill for doing a particular job.
While development covers not only improve the job performance but
also bring growth of personality maturity and self actualization.
1) ON THE JOB:
In this method employees are coached and instructed by senior
workers. Here, they have given basic training for fifteen days with
basic salary and adopt this method of training mostly for operational
level.
2) OF THE JOB:
In this method training is a part from job place. In recent years
it becomes more popular so, trainees get training in a classroom of
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company by special instructor. It includes seminars, conferences, case
studies etc. “Vodafone” using this method only for top level and
middle level.
WAGES AND SALARY ADMINISTRATION
As every factor employed in a enterprise gets rewards for his
combination among this factor human resources get contribution in
form of monitory terms. So, proper administration of their wages and
salaries become a necessity.
The priority objective of wage and salary administration is to
establish salary structure. Second one is to maintain acquisition of
labour cost structure. Sound wage policy should contain both the
objective. It is affected by factors like demand and supply of labors,
labour rate in market etc.
Here, in “Vodafone” follows time wage system which is most
common and oldest system? Under this system workers are paid
according to work done by in certain period. On an average
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organization Pays 40000-45000 to Sales manager and ass. Manager is
paid near about 60000-100000 and agent are paid off commission
cum incentive.
“Vodafone” pays total salary at the end of month and any
worker can withdraw half of salary.
PERSONNEL RECORDS
A record is a piece of writing with provides ready information
and preserves evidence for future use. Therefore personnel record
means maintenance of information regarding personal. Personnel
record helps personnel manager in decision making. He can decide
the demand and supply of personnel in an organization.
In “Vodafone” personnel maintain files of each and every
employee for their presence, leave, bonus, promotion, performance,
salary etc. is mention. The data regarding each employee is fed in to
computer and store for future reference.
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TIME KEEPING SYSTEM
Every company has to keep watch on employee’s weather they
come in time or not. This directly affects to the productivity of each
employee and so production.
So, it becomes necessary to get enough work from workers in
proportion of their wages and salaries. In “Vodafone” office time is
as under.
SHIFT WORKING TIME HOURS RECESS
1 9 a.m. TO 1p.m. 4 Half An Hour
2 2 p.m. TO 6 p.m. 4 Half An Hour
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EMPLOYEE BENEFITS AND SERVICES
Employee’s benefits and services provided by any company is
very useful not only from the view point of employees, but also from
company. The requirement of providing such kind of facilities and
services arises from social responsibilities. This is an important tool
for any company to motivate its employees;
1. BETTER WORKING CONDITION :
The management of this organization has given careful
attention towards proper working condition for its employee. It
includes ventilation, drinking water, light, air etc. a special care is
taken for better working condition as possible as best.
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2. BONUS AND FESTIVAL:
Bonus is given to each employee during Diwali. More over all
are to be given sweets on festival like Dashera, Diwali as a gift.
3. PROVIDENT FUND SCHEME:
As per government rules, provident scheme compulsory for
organization, for that 8% of basic pay of employees and same amount
by company paid to employee’s account. After retirement the amount
accumulated to provident fund account is given to him as per rules.
4. OTHER FACILITIES:
“Saurashtra Rachanatmak Samiti” has given residential
facilities to the employees. In addition to it, benefits like medical
allowance, leaves and facilities like canteen, safety equipment, are
provided to them by “Vodafone”.
The management of “VODAFONE” is very conscious for
welfare of its employees. They think that more ever they spent on
employee is one kind of investment. It will be benefited through
HRM. The reason why they spent is benefited by increased
productivity, quality and loyalty of workers.
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Future Future PlanPlan
Future Plans
VODAFONE Cellular Limited has only one future plan and
that is to excel in its field and conquer the market. Today there are
more then 3 crores cellular phone users and the people who use the
land line are around 7 crores. There is a huge gap to be bridged and
the only and future term plan of VODAFONE Cellular Limited is to
exceed the land line users.
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Secondly their long term plan is to be consistent in the policy
adopted by them for the purpose of outright excellence in their field.
The policy of quality coverage, subsistent rates and a genuine
customer convenience and care are high in standards presently and
VODAFONE Family feels that if these are the factors that are
maintained at a consistent level then the company will be able to meet
all its future plans and goals.
Thus VODAFONE Cellular Limited has no plans in particular
except to lead the market in the crucial times of Cellular wars, and out
rightly exceed the usage of land lines by wireless cellular telephones
and maintain their standard of quality coverage.
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SWOT SWOT
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AnalysisAnalysis
SWOT ANALYSIS STRENGTHS: -
1. DISTRIBUTION NETWORK: -
VODAFONE Cellular has a wide spread network and to
completely cover such network, it has a predetermined channel which
covers every nook and corner of the city so that all masses are
covered. With distribution network and an equal capacity to canalize
makes VODAFONE Cellular strong in its own.
2. LIVE WIRE PROFESSIONALS: -
For every job specification in VODAFONE Cellular Limited
there is employed a live wire professional who is best suited to his
position and responsibility when it comes to skill, talent, qualification
and perfection. Having people with such zeal and enthusiasm,
professionalism comes as strength.
3. PROACTIVE CUSTOMER CARE: -
Not only VODAFONE Cellular Limited is strong from within
but when its comes to external forces it proves its worth. Fabulous
customer commonsense centers are established to take care of any
issue that may come as a problem to the mass proactive customer care
is one of the assets of the company while telecustomer care comes as
an icing to the cake.
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4. TELECOM FOOTPRINTS: -
VODAFONE Cellular though establish recently has set its foot
in major cellular markets, be its markets of masses or geographical
markets. The important states of India all have VODAFONE Cellular
footprints with them. This is strength indeed.
5. PROMOTERS – SYNERGY BETWEEN CORPORATES: -
First time in the corporate history ever, has the two big heads
joined hands for a merger with the telecom giant VODAFONE corp.,
U.S.A. This is strength itself.
PARENT VODAFONE i.e. VODAFONE is among the top ten
brand of the globe, which process as strength to organization.
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WEAKNESSES: -
1. FUNDAMENTAL CASHES: -
As said earlier, corporate giants across the globe Tata, Birla,
AT&T have joined hands to form VODAFONE Cellular Limited.
They all being supreme in their field, have their own perceptions,
these perception ideas and means are found to clash when they meet.
Thus this may be proved as a hindrance to the company and comes
out as a weakness.
2. DELAY IN DECISION MAKING: -
As the three partners are huge corporate, the flow of decisions,
actions and understanding are channelized through a long route. This
may cause delay in any decision to be taken and which might not be
good for the company.
3. TELECOM FOOTPRINTS: -
VODAFONE Cellular is only present in 7 states out of highly
numbered 26 states which show that geographically VODAFONE
Cellular is not able to cover entire state. This leaves behind weak
telecom footprints of the company.
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OPPORTUNITIES: -
1. Lowest telecom Density in the world.
2. Lowest call charges in the world as well as in India.
3. Opportunity to outsmart the landlines connections,
through the usage of Mobile telephony.
4. Growth possible through Acquisition.
5. VODAFONE Cellular is established only in 16 states.
It has still got a scope to establish itself in the
remaining state and hold it foot.
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THREATS: -
1. VOLATILE REGULATORY MARKET: -
Day in day out there is various rules and regulations that are
coming in the market and which on highly volatile in nature. Price
fluctuation, are one of them competitors come in and go out in a jiffy,
and in such a situation to hold an upright place is difficult in its even
words and thus proves a threat to excrescence of companies. The
same has been observed by VODAFONE Cellular.
2. PREDATORY PRICING FROM WILL OPERATORS: -
With ongoing Cellular wars and advent of WLL, Cellular
operators are now into an artificial cover of threat. The threat of
pricing policies, threat of customers care etc. is going high as WLL
have been setting its foot with predatory pricing policies to
unchannelize Cellular operators.
3. EXPANSION INVESTMENT THRET: -
In order to survive in the market, VODAFONE Cellular has to
update its technologies, and this all expansion requires huge cost pull
expenditure and this increase costs in leaps and bounds.
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SuggestionSuggestion79
SUGGESTION
The highly professionalized management and totally modern
marketing approach are the basic key factors behind the success of
VODAFONE Cellular Limited. The management of VODAFONE
Cellular Limited is very perfect and nice. As per company’s perfect
management there is no need to give any suggestion to the company
but I observed that each and every person in this company is hard
working which one of the positive points of this company is.
According to my observation, company spends lots of amount
on advertisement.
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ContributionContribution
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CONTRIBUTION
“VODAFONE Cellular Limited” at each and every step of its
development has tried to fulfill its social responsibility along with its
objectives of profit. It has been following the policy and principle
which ensure economic development.
During the time of earthquake in Gujarat VODAFONE Cellular
Limited has constructed up many mobile PCO’s.
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84
My ObservationMy Observation
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My Observations
VODAFONE Cellular Limited made me observe many things
while on my survey of 100 Retailers in different areas. There were
various reactions and gestures which, I observed through people. Few
are some of them: -
AMBIENCE & ATMOSPHERE: -
Retailers, I visited were friendly and helpful. As it progressed
with my survey they were highly co-operative and anxious to help me
out with my findings.
PRICING STRUCTURE: -
Retailers insisted on a consistent stable and substantiate pricing
policy as they were really frustrated with the constantly changing
price in the mobile world.
PERSONAL APPROACH: -
Retailers always want the executives coming to their places and
making them understand about the new scheme and plans, which are
going to enter market.
SALESMEN SERVICE: -
Retailers are quite satisfied with the salesmen service.
Whenever the retailers are in need of SP, RV, etc. when they make a
single call to salesmen then order will be made available by salesmen
with in an hour.
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ConclusionConclusionCONCLUSION
VODAFONE Cellular Limited is one of the leading service
providers present today in the state of Gujarat. It has been indeed a
pleasure working for VODAFONE Cellular Limited, though as a part
of my training. I have conducted my project on Retailer’s Network
Management of VODAFONE Cellular Limited. As student trainees, I
have learnt immensely.
VODAFONE family is very co-operative, friendly as well as
professional and practical in their approach. They have been guiding
me whenever I viewed an obstacle. They have been of great help
when it came to providing information to me about themselves and
their organization.
I wont be exaggerating, if I say that this project has helped me
develop me as a person because while conducting my survey I have
met 100 people whose nature was different from one another and each
meeting in itself have been a memorable experience.
I would also like to say that this project has made me known
the realities that exit in the market today. I have also known the
technicalities involves while finding the right sample for my survey.
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This project I have learnt a lot about Survey etc. which has me
approach the real world in quite an extent. Also this project has
helped me have a more deepened knowledge about the cellular phone
market, on going cellular wars etc.
VODAFONE Cellular Limited is a company who has grown by
leaps and bounds in these two years and has emerged itself into a new
beginning. Under the report, I have researched about Retailers of
VODAFONE Cellular Limited the findings of my survey say that
VODAFONE today is the leader in the market and is still growing.
VODAFONE Cellular has got a very bright future as the
demand for cellular services are increasing day in and day out. Thus I
conclude my report wishing company all the very best for their future
and I would like to thank all people concerned who helped me make
this project come true.
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BibliographyBibliography91
BIBLIOGRAPHY
1. Marketing Management:
- By Philip Kotler
2. Web site:
- www.vodafone.in - www.vodafone.com
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