Summer Training Report

SUMMER TRAINING REPORT

ON

ACTIVITIES FOR SALES & DISTRIBUTION AT RAIPUR OF

“VODAFONE ESSAR SPACETEL LTD.”

BYPRADEEP KUMAR PANDEY

2008- 2009

Submitted in partial fulfillment of the requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

DISHA SCHOOL OF MANAGEMENT, RAIPUR

CERTIFICATE OF THE COMPANY

TO BE GIVEN BY THE CONCERNED AUTHORITY IN THE ORGANIZATION WHERE

YOU HAVE DONE YOUR SUMMER TRAINING (ON COMPANY LETTER HEAD) AND

SIGNED BY THE COMPANY PROJECT GUIDE

Name of External Project Guide

CERTIFICATE OF THE INSTITUTE (DSM) ON DSM LETTERHEAD WITH CONTENTS AS UNDER

CERTIFICATE

This is to certify that Mr. PRADEEP KUMAR PANDEY of DSM has successfully completed

the summer training in partial fulfillment of requirement for the award of PGDM Degree

prescribed by the Institute.

This report is the record of authentic work carried out by the student during the academic

year 2008 -2009.

(Prof. Vibhuti Jha) (Prof. N. H. Deshpande)Internal Guide Vice-President (Faculty of Management)

DECLARATION (TO BE SIGNED BY THE STUDENT ON PLAIN A4 PAPER)

DECLARATION

I, Pradeep Kumar Pandey hereby declare that this report is the record of authentic work

carried out by me during the academic year 2008-2009 in

________________________________________________________________

Vodafone Essar Spacetel Ltd.Ashoka Millenium,Ground Flore,Raipur (C.G.)

( ) Signature of the student

(Pradeep Kumar Pandey)

ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for VODAFONE ESSAR

SPACETEL LTD. It has been an enriching experience for me to undergo my summer

training at VODAFONE, which would not have possible without the goodwill and support of

the people around. As a student of DISHA SCHOOL OF MANAGEMENT I would like to

express my sincere thanks to all those who helped me during my practical training program.

Words are insufficient to express my gratitude toward Mr. Amitabh Akhouri, the Zonal

Branch Manager (Deputy General Manager) of Vodafone, Raipur, who permitted me to get

training at Vodafone. I would like to give my heartily thanks to Mr. Amresh Pandey, Area

Sales Manager, who suggested me how to work for the project. I am very thankful to Mr.

Abir Pal, Senior Sales Executive who helped me at every step whenever needed.

At last but not least my grateful thanks is also extended to Prof. Nitin Deshpande (Vice

President Faculty of Management) and my thanks to all my faculty members for the proper

guidance and assistance extended by them. I am also grateful to my parents, friend to

encourage & giving me moral support.

However, I accept the sole responsibility for any possible error of omission and would be

extremely grateful to the readers of this project report if they bring such mistakes to my

notice.

Date: 30TH May, 2009 Pradeep Kumar PandeyPlace: RAIPUR (C.G.) PGDMDuration: 1ST April to 30th May, 2009 IVth Trimester

INDEX

INTRODUCTION

HISTORY OF THE INDUSTRY

COMPANY PROFILE

PRODUCTS & SERVICES

ORGANISATIONAL CHART

FUTURE PLANS

SALES MANAGEMENT & CHANNELS OF DISTRIBUTION

PROJECT WORK DETAILS

RESEARCH METHODOLOGY

DATA ANALYSIS & FINDINGS

CONCLUSION

RECOMMENDATIONS

APPENDICES

BIBLIOGRAPHY

ANNEXURE

No. of Figures 1

No. of Tables 4

No. of Graphs 4

I N T R O D U C T I O N

Introduction

"Telecommunications is the backbone of our future economy. International

competitiveness increasingly depends on the development of a telecommunications

infrastructure that is compatible with international standards. "

The cellular industry all over the world has been witnessing very high growth rates in

subscriber base in recent years. For developing countries in particular, cellular services are

becoming a very significant proportion of the overall telecom infrastructure. The mechanics

of competition within this market involve complex feedback effects between individual

service providers and with their operating environment, and these forces play an important

role in governing the growth of this industry.

In a country like India which is not yet telephone-saturated and the ongoing changes in

related areas are resulting in a rapidly changing profile of users, providers and their

respective needs, continuous revision of the telecom policy is imperative. Given the

emerging new technologies and the integrating economies there must be fairness among

competitors.

The tele-density in India is about four per hundred people in respect of the fixed telephones

and a little less than one in respect of the mobile telephony. The low densities are not

because there is no need for a telephone but because of its high cost that many cannot

afford that one. The situation here is nothing but holding true of the “law of demand”. Isn’t it?

The cost for the companies can come down if the revenue share imposed on them as a

condition of license is abolished or drastically reduced. Today every telephone company is

bound to pay a share out of its revenue to the exchequer. These costs are, however, not to

be scheduled to take a step further in the development of the telecom. In addition when we

go through the telephone bill there is a 5 to 8% service charge. This amount also does not

go for the telecom development. If these external cost are removed there can be seen a

spurt in demand of not less than 40% as expected.

While taking the side of suppliers a lot of new companies are coming into the battlefield

resulting in reduction of prices and hence a little less burdensome on to the customer. The

cost of interconnection with the incumbent is proving to be contributory to the high cost of

services provided by the competitors.

The delay in the interconnection disregards the quality of service and high cost will detract

from affordability. This is an area in which no consumer body can knowledgeably contribute

unless it has the assistant of experts or economists who alone can discover all the relevant

fact of all the contesting companies. It indicates the pre-eminent domain of TRAI (Telecom

Regulatory Authority of India).

As the driven down of the prices for long distance including international services reduces

the amount available for subsidizing the local service, the rental for local services are being

increased. Considering that about 90% of the long distance

Calls are made by less than 20% of customers, 80% of customers have to pay higher rental

this depresses the demand for telephones and affordability. The urban business subscribers

will be bearing the bond of the subsidies to be given to the rural private consumers.

H I S T O R Y O F T H E I N D U S T R Y

History of the Industry

Cellular Telephony in India:

The technology that gives a person the power to communicate anytime, anywhere - has

spawned an entire industry in mobile telecommunication. Mobile telephones have become

an integral part of the growth, success and efficiency of any business / economy. The most

prevalent wireless standard in the world today, is GSM. The GSM Association (Global

System for Mobile Communications) was instituted in 1987 to promote and expedite the

adoption, development and deployment and evolution of the GSM standard for digital

wireless communications.

The GSM Association was formed as a result of a European Community agreement on the

need to adopt common standards suitable for cross border European mobile

communications. Starting off primarily as a European standard, the Groupe Special Mobile

as it was then called, soon came to represent the Global System for Mobile

Communications as it achieved the status of a world-wide standard. GSM is today, the

world's leading digital standard accounting for 68.5% of the global digital wireless market.

The Indian Government when considering the introduction of cellular services into the

country, made a landmark decision to introduce the GSM standard, leapfrogging

obsolescent technologies / standards. Although cellular licenses were made technology

neutral in September 1999, all the private operators are presently offering only GSM based

mobile services. The new licensees for the 4th cellular licenses that were awarded in July

2001 too, have opted for GSM technology to offer their mobile services.

Cellular Industry in India:

The Government of India recognizes that the provision of a world-class telecommunications

infrastructure and information is the key to rapid economic and social development of the

country. It is critical not only for the development of

the Information Technology industry, but also has widespread ramifications on the entire

economy of the country. It is also anticipated that going forward, a major part of the GDP of

the country would be contributed by this sector. Accordingly, it is of vital importance to the

country that there be a comprehensive and forward looking telecommunications policy which

creates an enabling framework for development of this industry.

Cellular Market Structure in India:

As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed

to operate in designated geographical operating areas. The service areas include four metro

areas and 18 circles categorized as A, B and C. (The categorization is based on the

revenue Proceedings of the 36th Hawaii International Conference on System Sciences).

The potential with category C circles in the lower end of the scale. For example the metros

account for 40% of the subscriber population, with Category-A, B and C accounting for 33%,

23% and 4% respectively. The CMSPs had to pay an entry fee and subsequently annual

license fee as a percentage of their revenue to the Department of Telecommunications.

The entry and license fees varied according to the service area, highest for metros and

lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations

and their licenses were revoked leading to a monopoly situation in certain areas. Apart from

these charges, each CMSP has to share the revenue with the long distance operators for

carrying inter-service area calls.

In profitable metros and circles, the competition is severe and the market is split between

the two operators. In a price-cap regulated market, the operators use appropriate pricing

strategy to win customers and win market share.

In highly price-elastic markets, such as in India, as the service provider reduces the price,

the subscriber base increases considerably, and so is the network traffic. The increased

network traffic decreases the performance and the quality of service, inviting customers to

switch. Being a new entrant in a metro area, the government operator reduced the airtime

charges to such an extent that the subscriber base increased suddenly leading to poor

network performance. The operator did not have enough network capacity to handle calls

leading to blocking of calls, with frustrated customers switching over immediately to

competitors.

The operators also have to resort to non-pricing competition strategies to win customers. In

India, CMSPs offer a variety of service plans as a means to attract new customers. Different

service plans include: pre-paid calling card schemes, discounted airtime rates for evening

and night time calls, discounted roaming charges, no or minimum activation fees, and

reduced mobile to mobile long distance call rates.

The service providers incur additional advertising and infrastructure cost for implementing

these plans. Short Message Service (SMS) and Wireless Application Protocol (WAP)

service are fast catching up. For example, in India, about 500,000 SMS messages are being

carried by a service provider in one metro area alone. When the sector moves over to an

oligopoly market, the operators have to provide improved quality of service and value added

services in order to survive and gain market share.

Larger operators who have experience and infrastructure may be able to provide a higher

quality of service and other value-added service at a lower price. They also have access to

larger project financing for enlarging their networks and services. For example, a single

large operator now has license to operate in 14 service areas in the country with the largest

footprint to cover most of the areas of the country. Mergers and acquisitions are

commonplace as the operators are consolidating their revenues to survive in the market

places.

Cellular subscribers and those with a propensity to go mobile in Delhi have never had it so

good. They now have four service providers to choose from, each offering an array of both

pre- and post-paid schemes. More importantly, average tariffs across plans have, by some

reckoning, dropped by at least 50 per cent in the last six months. The entry of Vodafone saw

a further drop in tariffs and the operators have come out with new schemes to retain their

subscribers and attract fresh ones.

What does this mean for subscribers and for the cellular industry in Delhi? All the four

operators — Essar Mobile Services Ltd., Bharti Cellular Ltd, MTNL and Idea Cellular

services. — are convinced that the market will only expand and the subscribers will benefit

even more. Their reasoning is that cellular penetration in Delhi, which traditionally occupies

the third position in other areas, is less than fifty per cent. Therefore, entry of new players

will only increase awareness about the facility, the companies say.

Moreover, the state-owned MTNL has also been playing with its cellular service for quite

some time. that, with the imminent launch of limited mobility using CDMA (code division

multiple access) technology by companies like Tata Tele Services will only add to the

subscriber base, probably result in further reduction of tariffs, and an even greater widening

of the cellular market, according to officials in four cellular companies now servicing Delhi.

However, the companies also sound a note of caution — any further drop in tariffs will be

harmful to the companies, points out one of the officials taking care of the — Sales &

Marketing division of the, Essar Mobile Services Ltd, average tariffs in Delhi across different

plans have fallen by 30 per cent since December with launching of the CDMA services.

Besides the fall in tariffs, what has really happened with the entry of CDMA is a heightened

awareness in the market. Mobile penetration in Delhi and its suburbs is estimated to be less

than twenty-five percent of the population and the cellular operators believe that this number

should definitely go up.

It is here that Vodafone decided to target the customers with what it believes are unique

products and features. Its emphasis has been on value proposition and brand building.

Mobility is not only about carrying voice, as per the reports from the marketing department

and adds that the unified messaging system for the post-paid customers of (now Vodafone)

is one such unique product.

Accordingly, Vodafone signed in its subscribers in lakhs from the year onwards it has been

launched in Delhi. Industry analysts say that a majority of them will be pre-paid customers,

whose loyalty to a particular brand is always in doubt. However, pre-paid for the cellular is

nothing but the engine for growth and there is always a possibility that most of them will shift

to post-paid once they are convinced of the quality of service provided.

On the other hand the entry of a new operator lends more visibility to the service and there

is also increased trade activity — that is the number of dealers will increase and more

people will be on the road trying to sell the service and product. There is also greater

consumer awareness of what cellular service can deliver and expectations go up in terms of

pricing or service standards or network availability.

The Churn in the Cellular Industry:

As like the other products Cellular industry has not been left untouched from the Churn

(switching over). During the survey this fact comes to the fore. According to the cellular

operators, there is a normal seven to eight percent churn in the customers, especially in the

pre-paid category. Among the post-paid customers, the Churn is much lower about two-

three percent.

They say that one significant change that has happened in the last few months, more so

since lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges

are concerned — incoming calls has been set free while they are charging reasonably only

for the outgoing ones — has changed. A tariff re-balancing has definitely taken place.

This means that the cellular operators are encouraging their subscribers to not just receive

calls, but also make calls — increasing the usage of the service. With falling tariffs, cellular

operators are convinced that increasing usage is one way to ensure that average revenue

per user (ARPU) does not fall very low. The industry figure for ARPU is believed to be about

Rs.1,100 while it may vary from operator to operator. The operators are also concentrating

on introducing more value added services to the customers. Value-added services have not

really taken off. Only the SMS (short messaging service) has really caught on, but operators

like Bharti are bringing in services like music messaging and concierge facility for its

subscribers.

C O M P A N Y P R O F I L E

Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in

1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai.

The company now has operations across the country with over 71.54 million customers.

Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most

Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most

Creative and Most Effective Advertiser of the Year’.

Vodafone Group is the world’s leading international mobile communications corporation. It

currently has equity interests in 27 countries across 5 continents and 40 partner networks

with over 289 million proportionate customers worldwide. The Essar Group is Vodafone’s

principal partner in India.

The Essar Group is a diversified business corporation with a balanced portfolio of assets in

the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping

Ports & Logistics, and Projects. Essar employs more than 50,000 people across offices in

Asia, Africa, Europe and the America.

Company Profile of Vodafone

Today, in India, becomes Vodafone. Now, the pink color logo of will be replaced by

Vodafone Essar’s corporate red colored one.

After acquiring 67 per cent of stake (around Rs. 250 crores) in ison Essar from Hong Kong-

based is on Whampoa, Vodafone Essar is expecting to touch over 35 million customers

across 400,000 shops and thousands of own employees along with employees of its

business associates.

Asim Ghosh, MD, Vodafone Essar, said “We’ve had a good innings as in India and today

marks a new beginning for us, not as a departure from the fundamentals that created, but an

acceleration into the future with Vodafone’s global expertise.”

Vodafone CEO and Vice-Chairman Arun Sarin of the joint venture Vodafone Essar will

be landing in India for the meeting that would discuss branding exercise, expansion plans,

spectrum requirements for its expanding subscriber base and future plans.

Vodafone offers a host of premier value added services (VAS) including national and

international roaming in over 70 countries in over 160 networks, Wireless Application

Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket

updates, M-banking, general information, tarot line, etc. The company launched WAP in

Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in

December 2000. The company has been a prime mover in introducing these value-added

services in the Delhi circle.

The values are stated simply. To be fair and transparent in what they do and how they do it.

To provide the quality services with more customer friendly practices. To make one’s

communications experience simple, pleasurable and fun. Where he doesn't simply get

technology - but technology that is relevant. Where solutions are not just promised in the

future - but delivered in the present.

CORE VALUES

We shall uphold the dignity of the individual;

We shall honor all commitments;

We shall be committed to Quality, Innovation and Growth in every endeavor;

We shall be responsible corporate citizens.

Vodafone Logo:

P R O D U C T S &

S E R V I C E S

Products:

Call Charges of Vodafone compare to Airtel:

All National NetworksAll Airtel Networks

Rs / min Rs / min

All Incoming calls 1.00 1.75

Outgoing calls (Rs / min)

Local calls 1.00 1.4

STD calls 1.5 2.4

ISD calls

USA, Canada, Europe+UK (fixed), South East Asia,Australia and New Zealand

9.49 9.49

Gulf, Africa, UK Mobile, SAARC & Pacific Rim countries 12.28 12.28

Norfolk Island, Cook Island, Cuba, Diego Garcia, Guinea Bissau, Nauru, Sakhalin,Sao Tome & Principle, Solomon Island, Tokelau, Tuvalu, Vanuatu

42.29 42.29

SMS Rs / SMS Rs / SMS

Outgoing(Local / National) 1.50 on Vodafone networks3.45 on all other networks

3.45

Outgoing(International) 3.45 3.45

Incoming Free Free

Bonus Cards :

BONUS CARD MRP

(Rs)

BENEFIT TARIFF VALIDITY

(Days)

BONUS CARD 84 84 All local calls @ 60 ps/m 180

BONUS CARD 59 59 Local calls V2V 30ps, V2M 50ps,

V2LL 50ps, with talktime of Rs 20

60

BONUS CARD 22 22 All local calls @ 60 ps/m 30

SMS BONUS CARD 30 300 local/national SMS free 30

BONUS CARD 99 99 Unlimited local V2V calls free,

Other all local calls @50ps/m

30

BONUS CARD 29 29 400 V2V local minutes free 30

BONUS CARD 31 31 All STD calls @ Rs1/m 30

BONUS CARD 85 85

Local V2V @ 30ps/m,

Other local Mo./LL @ 50ps/m,

STD calls @ Rs1/m,

Local SMS @ 50ps/SMS,

National SMS @ Rs1/SMS

30

Note: Limited period offers on Bonus Cards 29, 59, 99.

Easy e-topup of Vodafone :

MRP Rs VALIDITY PROCESSING . FEE TALKTIME SERVICES

from to (Days) Rs from to

10 10 0 2 7.07 7.07 Small Recharge

11 21 0 2 7.79 17.07 Small Recharge

25 25 0 2 20.67 20.67 Small Recharge

26 28 0 2 21.57 23.39 Small Recharge

32 49 0 2 27.01 42.42 Small Recharge

50 50 0 2 43.33 43.33 Small Recharge

51 58 0 2 44.24 50.58 Small Recharge

60 83 0 2 52.4 73.25 Small Recharge

86 98 0 2 75.97 86.85 Small Recharge

100 110 0 2 88.66 97.73 Small Recharge

111 111 0 2 98.63 98.63 Small Recharge

112 198 0 0 101.54 179.51 Small Recharge

200 221 0 0 181.32 200.36 Talktime Recharge

222 222 0 0 222 222 Full TT Recharge








Voda Magic Box:

Note: There may be changes in price with time.

SERVICES:

Staying connected becomes a lot easier with Vodafone. We have a wide range of

services you can access right from your Vodafone phone. From cell banking to

flight updates to call management services, get all that you want, instantly.

Dial 600 to activate

To activate these values added services on your Vodafone phone simply dial 600

SSSSSand access our Interactive Voice Response system.

SMS

Message your family and friends through Vodafone SMS Services. It's convenient and

affordable. Communicate with cell phone users in over 100 countries and anywhere in India

–by sending and receiving text messages.

Pay just Rs. 1.50 per message for sending SMS anywhere across the country.

SMS Chat

Now, you can chat on your Vodafone phone with as many people as you want.

Its fun and as simple as sending an SMS. Your identity will remain anonymous as

your phone number is never displayed during the chat. You can have your own

profile and chat name.

You can also create your own chat rooms or chat in the different rooms that

already exist including: Teens, 20s, 30s, Office, Bollywood, Delhi.

All you have to do is type in your messages and send them to 2428. You will be

charged Rs. 2 per outgoing message. Incoming messages are free.

Vodafone Online

Get all the useful information you need directly on your Vodafone phone - with Vodafone

Online. Including cricket, finance, entertainment, weather, astrology and more.

Simply go to the Vodafone Online menu on your Vodafone phone. If you do not see the

Vodafone Online menu on your phone, send HELP to 123. We will send you the list of

keywords.

Scroll to the topic on which you need information.

Select the information and key input as requested on the screen.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

MTNL Directoy

With this facility you can get to know the address and telephone no. of MTNL users.you will

be charged Rs.2 per outgoing message.

STD / ISD Codes

You don't need to look up your diary or a phone directory to find out STD and ISD codes.

You can find it directly through your Vodafone phone.

Ringtones & Logos

Now you can change the ringtone on your Vodafone phone according to your

moods. You can download logos as well. With the Vodafone and Yahoo! tieup you

have hundreds of tunes and logos to choose from.

For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of

SMS sent). For every logo/picture message downloaded, you will charged Rs.

3.00 (including the cost of SMS sent).

Flash & Blink

Vodafone now offers you two exciting ways to send messages. You can make

your message flash directly on your recipient’s screen instead of the inbox. You

can also highlight the important parts of your message through blinks. So your

text messages become not only more visible, but more effective too.


Dial-in Services

Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to

check cricket scores, horoscope, up-to-the minute news and other relevant information on

services that touch your everyday life.

All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).

Here's a shortlist of services you can access –

Service Number

NDTV Online 123

Info Line 301

Dial-n-Deliver 306

Cricket Online 123

Tarot Line 314

Cell Rashi 315

Dial-a-Pizza 303

Dial-a-Cab 335

Voice Response Service 123

There are occasions when you may not want to take a call or your Vodafone

phone maybe busy or simply unreachable. By paying a nominal monthly access

fee, you can now retrieve your messages at your convenience. Even if you are

roaming, you can retrieve your messages from your voice mailbox through a

fixed line, anywhere on earth.

Your Vodafone voicemail can

Hold up over 17 messages at a time.

Receive a message that lasts up to 90 seconds.

Store a message for as long as you want.

You can also record your voice signature and welcome message.

Calling Line Identification

You can check your caller's telephone name and number on your phone screen whenever

you receive a call. This gives you the flexibility to either accept or reject an incoming call.

This service is also helpful in identifying your missed calls.

You can access this service by just paying Rs. 49 per month, if you are a postpaid

customer. This service is absolutely free if you are a Vodafone Prepaid customer.

Itemized Billing

As a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end of

each month. This is a detailed billing statement which helps you keep track of all your calls.

Your itemized bill includes:

Origin of the call

Destination of the call

Duration of the call

Toll charges

Airtime and total charge

Get your itemized bill.

Via post: Pay a monthly rental of 49 only.

Via e-mail: Pay just Rs. 19 per itemized bill.

Fax & Data Services

This service enables you to constantly keep in touch with your office, colleagues

and information sources. You can send or receive faxes and transmit data using

your Vodafone phone anytime, anywhere. Whether you are operating from

home,

Hotels and airport lobbies.

At speeds of up to 9600 bps within the network or while roaming. You can even

access the Internet.

All you need is a handset compatible data card (PC Card) or a GSM Software, and

a data chord cable with a PC to set up a mobile office.

You can also opt for either Vodafone Fax or Vodafone Data services

independently.

Your Vodafone fax number can help you differentiate between incoming voice

calls and fax transmissions. You can also send and receive faxes anywhere on

earth with your Vodafone phone

By opting for the Vodafone Data Services you can access e-mail, databases and

the Internet. All on your single incoming data number.

Charges to activate the Vodafone Fax and Data service, you just need to pay a

one-time activation fee of Rs. 500. To access the Fax service, the fee is Rs. 250.

The usage charges are nominal at Re 1 per minute.

Call Management Services

There may be occasions when you need to conference with up to six people at a

time or talk to just two. Or you are speaking to someone and want to forward an

incoming call to another phone. With your Vodafone phone, you can do this and

more. Vodafone helps you manage your calls effortlessly so that you stay in

control of your conversations, always.

Voice Response

Get your Vodafone phone to respond directly to your commands. Custom

designed to recognize Indian voices and accents, the Voice Response service

makes your life more convenient. You can get the latest updates on news,

stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1

minute pulse).

Voice Messaging

Voice Messaging has become even more affordable. You can now send voice messages to

cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min*

(as against Rs.4.95 per min earlier).

Voice messages within India across select networks will cost you Rs. .95 per min only.

Also, recipients of the cellular Voice Messaging service have the option of replying back to

http://www.hutch.co.in/delhihome/productsandservices/voiceMessaging.asp

the messages, which get returned back as return Voice Mail messages, facilitating two-way

(though not simultaneous) voice communication.

Yahoo! Messenger for SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive

Vodafone-Yahoo! tie-up, you can easily get connected through your Vodafone phone. This

unique messenger comes with a lot of exciting features. You can connect with all Yahoo!

Messenger users, send, receive and reply to instant messages, view and manage your

friend list and also manage authorization requests. All this and more just by using SMS. You

will be charged Rs. 2 per outgoing message. Incoming messages are free.

Cell Banking

Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account

and transact directly on your Vodafone phone by sending text messages.

The first of its kind in India, this service enables you to conduct your banking without having

to visit the bank or making a call.

You can do Cell Banking from over 90 countries worldwide.


Roaming

Now you can always stay connected, no matter where you are. With the

Vodafone Roaming facility, you can use your Vodafone phone in over 100

countries worldwide and over 1000 cities, towns and highways across India.

Vodafone Roaming makes life easy and convenient for you.

One number across the globe

Your Vodafone phone number and PIN number remains the same whether you

are in Delhi, Chandigarh, London, Paris or anywhere else in the world.

National and International Roaming on Vodafone Prepaid

Roaming on Vodafone Prepaid gives you the most extensive coverage in over

1000 cities, towns and highways across India, and in over 100 countries around

the world. Enjoy Roaming on your Vodafone Prepaid card and stay in touch

wherever you go.

Yahoo! Mail for SMS

You can now directly access your email account on Yahoo! Mail on your

Vodafone phone. What’s more, you do not need a WAP enabled handset for this

service as it is based on SMS. So gain freedom from your PC and access your

Yahoo! mails anytime, anywhere on your Vodafone phone.


WAP

With WAP, you can have the Internet directly in your pocket. So if you are

looking for quick and easy delivery of information and services, your Vodafone

phone can show it all. Use it to check out news, finance, shopping,

entertainment, travel, entertainment and city service information etc.

To access this service all you need is a WAP enabled handset and WAP services

activated on your Vodafone phone. This service comes to you at a nominal

charge of Re. 1 per minute (1 min pulse).

Group Messaging

http://www.hutch.co.in/delhihome/roaming/hutchprepayroaming.asp

Party invitations, movie outings, festive greetings... whatever be the occasion, you can send

your message to all your friends at one go!

With Group Messaging from Vodafone, you can thus save yourself the bother of

painstakingly sending your message to one person at a time whether you are on Vodafone

Prepaid or Postpaid.

Vodafone4help

Vodafone4help now lets you take advantage of a lot more services than before. You can

connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are

stranded in the middle of the road, or if you you need immediate medical attention or if you

are looking for a police station close by, Vodafone4help gives you instant access to your

nearest source of help, anywhere in Delhi or the NCR.

All the help services are [email protected]/min. While for police and fire help only local airtime

charge is applicable.

mailto:[email protected]/min

F U T U R E P

L A N S

O R G A N I S A T I O

N A L C H A R T

Organisational Chart:

PREPAID POSTPAID

C O O[ M r . A n i l B a j p a y e e ]

S & M H E A D[ M r . M i t a s h C h a t e r j e e ]

Z B M[ M r . A m i t a b h

A k h o u r i ]

S A L E S H E A D[ M r . S a n d e e p B h a t t a c h a r y a ]

A S M ( P r e & P o s t )[ M r . A m r e s h

P a n d e y ]

S R . E X E C U T I V E[ M r . Y o g e s h

A r o r a ]

E X E C U T I V E[ M r . D i l i p

S o n i ]

S R . E X E C U T I V E

[ M r . A b i r P a l ]

E X E C U T I V E[ M r . V i m l e s h

S i n g h ]

PSR 3 PSR 1 PSR 2

DISTRIBUTOR 3[Vikas Ent.]

DISTRIBUTOR

1[Chirag Agency]

DISTRIBUTOR

2[Om

Electricals]

S A L E S M A N A G E M E N T &C H A N N E L S OF D I S T R I B U T I O N

SELLING:

Selling means only to convert the goods and services into money. It includes the

discovery of buyer, to inform him about the goods and services available with the producer,

to inspire him to purchase the goods and services and to deliver these goods and

services to the consumers. Thus selling includes only physical distribution of goods and

services from the producers to consumers.

Features of Selling:

Selling is a classical word.

It includes only the physical distribution of goods and services.

Selling is limited only to the physical distribution.

Selling is product-oriented.

The aim of sale is to earn the maximum profit.

It stresses upon maximisation of profits through maximisation of sales.

Sellilg is a routine activity with short term objective.

SALES MANAGEMENT:

Meaning Sales Management means the planning, organisation assigning, routing, direction,

supervision, remuneration, motivation and controle of all the selling activities of a business

and industrial enterprise. It includes marketing research, sales research, sales forecasting,

formation of sales organisation, appointment of selling force, determination of remuneration

for selling force, advertisement, sales promotion and personal selling etc.

Though the success of a business and industrial enterprise depends to a large

extent upon the quality, uses and characteristics of its products, but if the sales

management of the enterprise is weak and defective, the enterprise may have to force the

failure, even if its products meet all the expectations of consumers. Therefore, it becomes

very necessary for every business and industrial enterprise to have a sound and efficient

sales management.

Objectives of Sales Management

Some of the important objectives of the sales management may be as under:-

To conduct Marketing Research;

To discover new markets and new consumers for the product;

To attract the attention of consumers through advertisements and sales promotion;

To select a suitable channel of distribution;

To arrange for the supply of product into the market according to demand;

To arrange controle the costs of distribution;

To encourage dealers, distributors and salesmen.

Functions of Sales Management

Function of sales management may broadly divided into three parts as follows:

(1) Administrative Functions: Administrative Functions of sales management include

the functions relating to policy formulation. These functions may be-

To develop sales organisation structure;

To determine sales policies of the enterprise;

To determine and specify the rights and duties of all the officers and employees of

sales organisation;

To establish effective co-ordination in the activities of various departments of sales

organisation.

(2) Operative Functions: Operative Functions of sales management include the

functions to run a sales organisation smoothly. These functions may be-

To appoint salesmen;

To arrange for the training of these salesmen;

To determine and arrange for the remuneration of these salesmen;

To allocate sales territories to these salesmen;

To determine sales target for different sales territories;

To controle the activities of salesmen;

To prepare, implement and monitor the programmes of advertisement and sales

promotion;

To encourage and motivate these salesmen to sell more and more products.

(3) Staff Functions: Staff Functions of sales management of an enterprise include the

functions performed as sales specialist.These functions may be:

To conduct marketing research;

To advise for the development of product;

To make sales forecasts and to prepare sales plans in the light of these

forecasts;

To make sales correspondence;

To analyse the sales;

To advise marketing manager in respect of advertising and sales promotion

programmes; and

To conduct research related to the rerformance of selling force of the

enterprise.

CHANNELS OF DISTRIBUTION

Main problems of a manufacturer can broadly be divided into two parts-production

and Distribution. Every manufacturer attempts at producing the goods and services of best

possible quality at minimum possible cost. This is only a half-success of a manufacturer.

The succss is completed when he makes these goods and services available at proper time

and at right places. The term ‘Channels of Distribution’ has been defined by many eminent

authors. Some of the important definitions are as follows:

William J Stanton, “A channel of distribution (sometimes called a trade channel) for

a product is the route taken by the goods as they move from the producer to the ultimate

consumers or industrial user.”

Cundiff, Still &Govani, “Marketing channels are the distribution networks through which

producers`products flow to the market.”

Philip Kotler, “Every jproducer seeks to link together the set of marketing intermediaries

that best fulfil the firm’s objectives. This set of marketing intermediaries is called the

marketing channel (also trade channel or channel of distribution).”

On the basis of analytical study of above definitions, it can be concluded that a

channel of ditribution is a chain through which a producer transfers the ownership of

his goods and services ot his consumers. Channels of distribution are also known as

middlemen, agents of distribution, and distribution chains. A channel of distribution is a

bridge to cover the gap between a manufacturer and consumers.

Types of Channels of Distribution

There are different types of channels of distribution and a manufacturer may select any

on of this channel. These channels may broadly by divided into two parts-

(I) Channels of Distrbution related to industrial products.

(II) Channel of Distribution related to consumers products. The details in this regard are as

follows:

[I] Channels of Distribution Related to Industrial products:

A manufacturer of industrial goods may use any on of the following channels of . . .

…distribution for the distribution of his products;

1. The goods may directly be distributed by a manufacturer to his buyers.

Producer Industrial users.

2. A manufacturer may take the help of agents to distribute his goods to the buyers.

Producer Agents Industrial users.

3. A producer of industrial goods may take the help of wholesalers for the

distribution of his goods.

Producer Wholesalers Industrial Users.

4. Industrial goods may be distributed to their users through two middlemen also .

These middlemen may be wholesalers or distributprs and selling agents.

Producer Wholesalers or Distributors Agents Industrial Users.

[II] Channels of Distribution Related to Consumers Goods:

A producer of consumer goods may use any of the following channels of distribution:

1. A producer of consumer goods may distribute his peoducts direct by to his

consumers.

Producer Consumers.

2. A producer may take the help of middlemen for the distribution of his products .

Middlemen may be retailers or agents.

Producer Retailers Or Agents Consumers.

3. A menufacturer may choose to distribute his goods with the help of two middlemen.

These two middlemen may by wholesalers and Retailers.

Producer Wholesalers Retalers Consumers.

4. A manufacturer may distribute his goods to his consumers with the help of three

middlemen. These middlemen may be agents, wholesalers, and retailers.

Producer Agents Wholesalers Retallers Consumers.

5. A producer of consumer of consumer goods may also decide to distribute his goods

to his consumers through four middlemen. These middlemen may be distributors,

Agents, Wholesalers and retailers. This is the longest channel of distribution.

Producer DistibutorsAgents Wholesalers Retallers Consumers.

Functions of Channels of Distribution

Some of the important functions of Channels of Distribution are as follows:

1. Helpful in Price Determination: Channels of Distribution are very helpful in

determining the price of products because they are in direct touch with customers.

They can estimate paying capacity of consumers for a product.

2. To Manage Finance: All the manufacturers have limited financial resources.

Middlemen help manufacturers in making adequate financial resources available.

They purchase the goods produced by manufacturers and make the payment for that.

3. To make the Process of Distribution Easy: it is not possible for a producer,

particularly a producer of consumer goods to be in direct touch with all the consumers

so channels of distribution help the producers in this regard.

4. Promotional Activities: Channels of distribution also help in promoting the sales

of goods and services. Wholesalers advertise for the goods dealt with by them

and retailers help in increasing the sales by adopting the measures of sales

promotion. Retailers display the goods in their showrooms so that more and more

consumers may be attracted.

5. Helpful in Communication: Channels of distribution help producers in

communicating the changes in products to the consumers and in communicating

the changes in habits, tastes, likings and preferences of consumer to the

manufacturers. Thus channels of distribution play an important role in

communicating the needs of consumers to the manufacturers and policies of

manufacturers to the consumers. It increases the sales of manufacturers.

6. Matching of Demand and Supply: Most important function of middlemen is to

collect goods and services from many producers so that consumers may select

from among a large number of alternatives.

7. Other Function: Other functions of channels of distribution may be-

(i) To stablise the prices;

(ii) To help in forecasting the demand for a product;

(iii) To help in marketing research; and

(iv) To help in production activities etc.

P R O J E C T W O R K D E T A I L S

Purpose & Scope of the Work

Survey 1: To find out present condition of Vodafone’s products, services and

their demand in the market.

Survey 2: To check the availability of Vodafone products in the retail outlets.

Purpose:

To know the Vodafone’s present performance in the market.

Vodafone’s relative status in the market with respect to other telecom service

companies.

To know the availability of Vodafone products in the market as well as most running

and demanded products of Vodafone.

To know the improvements and retailers demand andqueries about Vodafone.

To set a new plan to increase the sales and distribution of Vodafone products and

services through keen market survey.

Scope:

It helps to provide a clear picture of Vodafone at market.

It gives the idea how the competitors are performing and how we should make

strategy against it.

It gives the rate of supply of voda products in the market and its expected rate of

change in coming days.

Most demanded tariff plans and products are key part of Vodafone, so survey helps

to make more attention towards selling of these products and services.

Survey helps to solve the problems of retailers, to make the effective supply chain

from distributor to end users.

Survey 3:

a) To find out comperative selling of Airtel and Idea with respect to Vodafone (in

monthly basis).

b) Network survey of area covered by Single BTS (Preferably in 3 KM radius).

Purpose:

To estimate the monthly selling of competitors’ product against the Voda products in

the market.

To find out the new location and new market to install effective selling of Vodafone.

It also helps to find out signal quality of area covered by Single BTS (Inside & Outside

of the outlets).

To fulfill the demand of retailers & to check sufficient advertisements of vodafone at

Retail Outlets (to increase the awareness of voda products & services).

Scope:

To know the retailers selling strength and to encourage them for increasing the sales

of vodafone by solving their queries.

To sell the products & services in new location by making awareness of new plans

and schemes of voda products to the retailers.

To make aware to the customers via retailers about the new expansion of vodafone

coverage and its growth in new areas.

Installed BTS and services within the area give the reference to the company for

future expansion so that new BTS installation would fulfill the increasing requirement

in new location.

To check out the network of vodafone and its productive improvements to solve the

problem of coverage in a particular area covered by Single BTS.

4. Some Promotional Activities of Vodafone:

Fig. 1

a.) Van Activity

b.) Canopy Activity

Van activity was performed all over the Raipur City at different outlets of Vodafone by

our team, where we made awareness of voda products and services among the

customers and retailers.

In canopy activity we promoted sales of Vodafone products and make aware to the

customers about new offers and schemes and we got opportunities to direct

interection with them.

R E S E A R C H M E T

H O D O L O G Y

RESEARCH METHODOLOGY:-

RESEARCH PROBLEM

To find out present condition of Vodafone’s products, services and their demand in the

market.

To check the availability of Vodafone products in the retail outlets.

To find out comperative selling of Airtel and Idea with respect to Vodafone (in monthly

basis).

Network survey of area covered by Single BTS (Preferably in 3 KM radius).

Information requirement

Before going for the survey I had to know about all the products and services of

Vodafone.

I had to know about all the distributors and retail outlets of Raipur city.

I need to know about all the Single BTS area.

SOURCES OF DATA

Primary sources

The primary data was collected through questionnaires. They were filled using the

scheduled method of data collection by the researcher.

Secondary sources

The secondary sources were used only for collecting information regarding the sample; they

were however not used for analysis.

RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular study.

It is a map (or) blue print to which the research is to be conducted. Descriptive research

design has been considered as a suitable methodology for present study and for data

analysis.

SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-probability sampling

method. The convenience factors were the availability and approachability of the

respondents.

POPULATION

All types of outlets that stock and sell Vodafone products and services in the markets.

PLACES OF STUDY

The study was conducted in the retail outlets in Raipur in the following area:

Lakhe Nagar

New Rajendra Nagar.

Katora Talab.

Shailendra Nagar.

Byron Bazar.

Budhapara.

Golbazar

Santoshi Nagar.

Purani Basti.

Sanjay Nagar.

Sundar Nagar.

Shankar Nagar

New Shanti Nagar

Pandri

Mova

Lodhi para

Fafadih

Devendra Nagar

Station Road

Sakara

Sarora

Mandir Hasaud

Sai Nagar

M.G.Road

Tatibandh

Telibandha

ANALYSIS TECHNIQUES

Quantitative analysis is performed using the data collected at each outlet to estimate the

presence of Voda products.

Tools Utilized

Percentage Analysis

Graph Chart

SAMPLING

1. Sampling Technique : Non probability sampling (A non probability sampling technique is that in which each element in the Population does not have an equal chance of getting selected.)

2. Sample size : 26 areas and 200 retail outlets

3. Method : Direct interview through questionnaire.

4. Data analysis method : Graphical method.

6. Area of survey : Raipur District.

7. Timing of survey : 10:30 am to 7:00 pm.

Note: All the data of sales are mentioned on the basis of survey work done in April-May, 2009.

D A T A A N A L Y

S I S

&

F I N D I N

G S

Data Analysis:

1. Sales of Vodafone Products:

VODA PRODUCTS SALES IN PERCENTAGE

SIM Cards 25%

E-top up 50%

Paper Vouchers 20%

Hand Sets 5%

Table No. 1

SIM Cards E-top up Paper Vouchers

Hand Sets05

101520253035404550

25

50

20

5

Analysis of Sales of Vodafone Products

Sale

s in

Per

cent

age

Graph No. 1

1. Sales of Vodafone Products in compare to other telecom companies:

TELECOM COMPANIES SALES IN PERCENTAGE

Airtel 45%

Idea 30%

Vodafone 25%

Table No. 2

Airtel Idea Vodafone05

1015202530354045

45

3025

Sales of Vodafone Products in compare to other telecom companies

SALE

S IN

PER

CE

NTA

GE

Graph No. 2

2. Network Quality of Vodafone BTS:

NETWORK QUALITY IN SINGLE BTS TOWN AREA

SALES IN PERCENTAGE

Very Good 90%

Good 8%

Poor 2%

Table No. 3

Network Quality in Single BTS Town Areas

Very Good Good

Poor

fGraph No. 3

4. Satisfaction Level of Retailers from Distributor’s Service:

RETAILER’S SATISFACTION ` LEVEL

NO. OF RETAILERS(In Percentage)

Highly Satisfied 85%

Satisfied 13%

Least-satisfied 2%

Table No. 4

Satisfaction Level of Retailers from Distrib-utor’s Service

Highly Satisfied

Satisfied

Least-satisfied

j Graph No. 4

Findings:

(i) Selling of E-top up is more than other products and selling of handsets are very less.

(ii) Airtel has covered maximum part of the market, so it can be said as the

biggest ,competitor of Vodafone.

(iii) Network quality of single BTS is very good in maximum places but it is not so good in

out of its 3 KM radius.

(iv)Most of the retailers are satisfied with services of Vodafone and its distributors but in

some outlets it is not like that.

About Distribution pattern of Voda products:

One distributor has near about 250 – 300 outlets for distribution.

And 1 DSE/FOS has near about 30-35 outlets.

Role and responsibilities of the distribution:

Every retailer should have 7 days stock of Paper Vouchers;

Every retailer should have 3 days stock of E-top up;

Every retailer should have 1 month stock of Handsets;

Every retailer should have minimum 50 SIM.

COMPANY BACK OFFICE

DISTRIBUTOR

FOS/DSE

RETAILERS

C O N C L U S I O N

Conclusion:

From the survey conducted the following conclusions can be drawn:

Vodafone has a good market response.

All retailers and customers are happy with the services given by vodafone.

Canopy activities and van activities are really helpful to promote the sales.

Time to time surveys are very much helpful to get the comlaints and suggestions

of the customers and retailers.

Vodafone tariff plans and schemes are cheaper than other telecom services so

customers are happy with that.

R E C O M M E N D A T I O N S

Recommendations:

1. Sim card activation must be on time, it should not be delayed.

2. SIM Card price should be same as much as possible in different retail outlets.

3. Most demanded products should be continue in the market (e.g. 99 Bonus card).

4. There should be slight reduction in STD call rates. (recentaly BSNL announces

reduced rates on STD calls )

5. Expansion of Network/coverage must be fast in the village places.

6. Advertisement of advance services of vodafone must be there along with the normal

tariff plans.(eg.- Internet service, cell banking etc).

A P P E N D I C E S

Abbreviations:There are some abbreviations which are used in telecom sectors, they are:

ACT ActivationCIF Customer Information FormFCC First Chargable CallFOS Field Officer SalesISO Independent Sales OfficerTHQ Tehsil Head QuaterDHQ District Head QuarterBTS Base Transmission System

D E T A I L S O F D I S T R I B U T O R S . & R E T A I L E R S

There are 3 distributors in Raipur City, they are:

1. Chirag Agency;

2. Om Electricals;

3. Vikas Enterprises.

And they distribute total 891 outlets all over the Raipur and its near area. List of the

outlets are given below with the name of their distributor, FOS name and address:

Questionnaires

RETAIL SURVEY FORMAT

Name of the Town/Village ________________________________

Population ________________________________

District/Highway Name ________________________________

Name of the Retail Shop ________________________________

Name of the Retailer ________________________________

Retailer Address ________________________________

Demo/Lapoo SIM No. Vodafone _______________________ Airtel _______________________

Idea _______________________

Name of the Distributor for Vodafone _______________________ Airtel _______________________

Idea _______________________

Total No. of Activation Vodafone _______________________ Airtel _______________________

Idea _______________________

Activation for Telecom Industry Total _______________________

Sells Handset Yes/No How many/month ________

Turn Over (SIM+RCV) Vodafone _______________________ Airtel _______________________

Idea _______________________

Turn Over (SIM+RCV) Total _______________________

Trainee Name____________________ Date of Visit_____________________

Questionnaire format for Retailers

Purpose- To know the satisfaction level of Retailers from Vodafone and its distributor’s services.

Retail Outlet Name

Name of FOS & Distributor

Regular Visit of FOS (Yes/No)

Satisfied with voda services(Yes/No)

Complaints/Suggestions (If any)

GIS POP & NETWORK QUALITY FORM

Name of District __________________________

Name of Single BTS __________________________

Name of Nearest Vodafone Distributor Town _______________________ Distance in KM______________

Name of Nearest THQ _______________________ Distance in KM______________

Name of Nearest DHQ _______________________ Distance in KM______________

NAME OF THE . RETAILER

AREA NAME NETWORK QUALITY INDOOR

NETWORK QUALITY OUTDOOR

Name of the Villages/Town being covered from the BTS (Preferably in 3 KM radius):

_______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________

These questionnaires had been made to complete the following action plans:

To check the Network Quality in all the markets of the town.

To check the Indoor & Outdoor Coverage in all the important places of the town & all

telecom retail outlets & to fill the Network Quality Form.

To visit all the telecom outlets & to fill the Retail Mapping in attached the attached

questionnaire.

To visit the villages/towns within 3 KM radius of the single BTS to check the Network

Quality.

To note the distance of the town from the nearest Voafone Distributor Town / THQ &

DHQ in Network Quality Form.

B I B L I O G R A P H Y

BIBLIOGRAPHY

WEBSITE:www.voafoneessarspacetelltd.com

SEARCH ENGINES:www.google.com

BOOK REFERENCE:

Research Methodology: By C.R.Kothari.

(Second Edition)

Marketing Management: Philip Kotler

(Eleventh Edition)

Marketing Management: By Dr. S.K. Gupta

(Sixth Edition)

http://www.google.com/

http://www.voafoneessarspacetelltd.com/

Documents

Summer Training Report