A PROJECT REPORT ON COMPANY ANALYSIS OF VODAFONE Submitted in Partial Fulfillment for the Award of the Degree of Bachelor in Business Administration 2011-2013 Under the Guidance of: Submitted By: Mr. Gaurav Aggarwal Shrey Goel Faculty of Management BBA(GEN) SEC-B, 3rd sem, 2nd shift EnrollmentNo:09661101710 Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi DECLARATION
I hereby declare that the project report entitled topic,” Company Analysis of Vodafone” is based on my original study and has not been submitted earlier for any degree or diploma of any Institution/University. The work of the author’(s) wherever used, has been acknowledged at appropriate place. Date…………………. Candidate signature Place………………… Name………………………… Enroll. No………………… Counter Signed Name………………………. (Faculty Guide) CERTIFICATE This is to certify that the project titled “Company analysis of Vodafone. is an academic work done by “SHREY GOEL” submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor Of Business Administration from of, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him in the project has not been submitted earlier. Name of the Faculty Guide Mr. GauravAggarwal ACKNOWLEDGEMENT It is arduous to pen down the extent of my feelings, yet through this acknowledgement, I wish to convey my deepest regards and gratitude towards those who helped me to carry out and present this work.
No project sees the light of the day without the help of certain individuals. I would like to express my sincere gratitude to people who were instrumental in making this project possible. I am grateful to Mr. GauravAggarwal (Faculty of Management) for providing me an opportunity to work on this project and also for her valuable guidance and support. Lastly, I would express my grateful thanks to my friends who inspired me to put in my best efforts for the preparation of the Project Report. SHREY GOEL EXECUTIVE SUMMARY Vodafone is the world’s most leading international mobile communication company.
It has now operations in 25 countries across 5 continents and 40 partner networks with over 200 million customers world wide. Vodafone has partnered with the Essar groups as principal joint venture for Indian market. Vodafone Essar in India is a subsidiary of Vodafone group plc and commenced operations in 1994 when its predecessors Hutchison Telecom acquired the cellular license for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India’s mobile customer base, with over 34. 1 million customers.
In this project we will discus about Vodafone Company in details, its formulation, and history. We will come to know about the company’s vision and mission from here. We will try to discuss the steps taken by the company to reach such a height i. e. what made it so different from other cellular operators so that it reached at such a big height. Telecom industry is such a competitive market and for sustaining in the market one has to give some extra benefits to retain its customers and attract new customers, in other words I mean the company should provide some differentiation.
In this wide industry Vodafone has to suffer a huge problem from its competitors like Airtel, Reliance, Mtnl, AT&T, Verizon, etc. Here we will try to open the forum for discussion on the company’s internal strategies and the plans they have laid within the organization for its development. We will not only discuss internal management but also look at the external factors which the company has to face and how well they plan their strategies. Some of the external factors are political, economical, and social. We will also focus on competitors and their relative steps taken in the market.
We will also look at the strength, weakness, opportunity, and threats of Vodafone in details. To discuss on the above mentioned points we need some tools like PEST analysis, SWOT analysis, and many more. CONTENTS Sr. No. | Contents| Pg. No. | 1. | Declaration| | 2. | Certificate| | 3. | Acknowledgement| | 4. | Executive Summary| | TABLE OF CONTENTS Sr. No. | Contents| | 1. | Chapter-1(Introduction)| 1| 2. | Chapter-2(research methodology)| 6| (i)| Purpose of study report| 7| (ii)| Research objective of study| 8| (iii)| Research methodology| 9| (iv)| Data collection| 10| v)| limitations| 11| 3. | Chapter-3(Company profile)| 12| 4. | Chapter-4(Company analysis)| 46| (i) | Marketing analysis| 47| (ii)| Swot analysis| 54| (iii)| Pest analysis| 56| 5. | Chapter-5(findings & suggestions)| 58| 6. | Chapter-6(conclusion)| 61| 7. | Bibliography| 63| CHAPTER- 1 INTRODUCTION The Indian Telecommunications network with 110. 01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique Opportunities for U.
S. companies in the stagnant global scenario. Indian Telecom sector, like any other sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to advanced technologies like GSM, CDMA, and WLL to the much awaited great 3G (Third Generation) Technology in mobile phones. India is the world’s second largest mobile market behind China and it has seen extraordinary levels of growth in recent quarters.
The first three quarters of 2008 all saw net additions in excess of 25m, and Q4 08 went one better with a gain of 31. 58m, an all-time Indian and world record. The number of connections in India stood at 346. 77m at the end of 2008 with annual growth of 48. 5%, compared to 60. 8% in 2008. Market leader Bharti continued to pull its weight with a Q4 gain of 8. 17m, the second highest figure ever recorded in the Indian market. With 85. 65m customers and 24. 7% market share, Bharti is the powerhouse of Indian mobile. However, the strength in depth of the market is extraordinary.
The second and third-placed operators, Reliance (61. 35m customers end-2008) and Vodafone (60. 93m), both scored their best ever figures for net additions in Q4 with figures of 5. 30m for Reliance and 6. 31m for Vodafone. Moreover, the previous records for both companies were set just three months earlier. Aircel, the seventh largest operator with 16. 08m customers end-2008, achieved the same feat, recording its best ever figure in Q4 08 (+2. 20m) and its second best ever in Q3 08 (+1. 95m). Meanwhile, fifth-placed IDEA (34. 21m) also recorded an all-time high in Q4 08 with a gain of 3. 83m.
Although March figures are not yet complete, the January and February numbers suggest that Q1 09 is almost certain to break the record for quarterly growth. The January gain of 15. 37m smashed the previous record of 10. 76m (set in December 2008) while February was not far behind with 13. 77m. With a two-month gain of 29. 17m, and March GSM additions at over 11m, a figure in the region of 45m seems likely. January’s record was inspired chiefly by Reliance, which added 4. 95m customers thanks to its launch of GSM in several new markets, and it topped the market again in February with a gain of 3. 29m. Bharti posted a new record of 2. 3m, maintaining its extraordinary consistency, while Vodafone and Tata also recorded new highs of 2. 58m and 1. 08m reserved. Telecom Industry in India is the fastest growing markets and is second largest mobile market in the world just after China. India has added around 9. 5 million new mobile subscribers to the network each month for the year 2008. Upcoming services such as 3G and WiMax (Worldwide Interoperability for Microwave Access) will help for further growth rate. The service providers are offering services at cheap call rates, low-cost handsets and network expansion is fuelling the boom for the industry.
There exists enormous business potential for telecom companies on account of the country‘s low teledensity, which stand at 33. 23 for December 2008. Every day there is an addition in Value added Services (VAS), technology advancement and reduction in traffic charges. Increase in private and public players in the sector has enhanced the telecommunication technology to give the maximum benefits to their customers. Major Players In Telecommunication Industry: There are three types of players in telecom services: * State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices) * Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications) India’s mobile telecom sector is one of the fastest growing sectors. Unlike in the 1990s when the mobile phone was an elitist product, mobile operators now tap a mass market with mass marketing techniques. “Unified licensing” rules allow basic and mobile operators into each other’s territory, and have ushered in perhaps the final phase of industry consolidation.
It seems that only companies with deep pockets can effectively compete as primary operators mobile markets. Economies of scale, scope, and end-to-end presence in long-distance as well as local telecom, are desirable. There are, besides, new challenges. Operators have to find new growth drivers for the wire line business. There are problems of getting broadband to take off, of technology choice, of when to introduce new technologies, and of developing a viable business model in an era of convergence Growth of mobile technology:
India has the fastest growing mobile markets in the world. The mobile services were commercially launched in August 1995 in India. In the initial 5-6 years the average monthly subscribers additions were around 0. 05 to 0. 1 million only and the total mobile subscribers base in December 2002 stood at 10. 5 millions. However, after the number of proactive initiatives taken by regulator and licensor, the monthly subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05.
Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 millions in 2004, 32 million in 2005 and 65 million in 2006. The only countries with more mobile phones than India with 156. 1 million mobile phones are China – 408 million and USA – 170 million. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$ 5 only. In 2005 alone 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market. Cellular Service Providers: As on Apr 2007 India has 167 million mobile phone subscribers.
Out of this 125 million are GSM users and 41 million CDMA users. BSNL, BhartiAirtel, Hutch, Idea, Aircel, Spice and MTNL are the main GSM providers in India. Reliance Communications and Tata Indicom are the main CDMA providers in India. Vodafone Vodafone is another emerging GSM provider in India with coverage in Kerala, Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab with a total subscriber base of 27 million. Bharat Sanchar Nigam Limited (BSNL) BSNL is a state owned telecom company which has GSM presence in almost every cities and towns.
BSNL has 27 million subscribers with a market share of 16%. BhartiAirtel Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West Bengal. Airtel is the No. 1 cellular service provider in India using GSM technology. Airtel has 23% market share in India with a total subscriber base of 38 million. Reliance Communications Reliance has both CDMA and GSM networks and total subscriber base of 29 million or 17% market share.
It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata, North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in other states and cities Tata Indicom Tata Indicom is a main CDMA provider in India with 16 million subscribers all over India. Tata Indicom has presence in almost every state and cities in India. Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about ? 75 billion (August 2008).
Vodafone currently has operations in 25 countries and partner networks in a further 42 countries. The name Vodafone comes from Voice data fone, chosen by the company to “reflect the provision of voice and data services over mobile phones. ” As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5 continents. On this measure, it is the second largest mobile telecom group in the world behind China Mobile. In the United States, Vodafone owns 45% of Verizon Wireless. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 21 telecom circles in India.
Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 22 of the country’s 23 licence areas. Ownership: Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li KaShing Holdings in Hutch-Essar for US$11. billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18. 8 billion. The transaction closed on May 8, 2007. Vodafone is expanding day by day and we will discuss about it in detail in coming chapters. CHAPTER-2 RESEARCH METHODOLOGY PURPOSE OF STUDY REPORT The process of objective self-study is necessary for any institution wishing to remain vital and vigorous and is particularly crucial for institutions of higher learning.
Periodically reexamining the institution’s purpose, mission, goals, planning, and assessment helps to maintain quality educational programs and fosters innovative thinking. Only by carefully examining the past and honestly evaluating the present can an institution effectively plan for the future. Though the major purpose of this Study was to achieve reaffirmation of accreditation by showing compliance. This Self-Study Report will serve not only as an accounting of our compliance with the Criteria, but also as a springboard for continued examination of institutional effectiveness and as a guide for future planning and assessment efforts.
RESEARCH OBJECTIVE OF THE STUDY 1. To review the services offered by Vodafone company in India. 2. To know the present and future strategies of the Vodafone company RESEARCH METHODOLOGY OF THE STUDY The data the project report contains is all secondary data. The secondary data was collected from the internet, books, journals, magazines and newspapers. Secondary data are those data that have already been collected by someone else and have already passed through the statistical process. The secondary data is the type of data chosen by me.
DATA COLLECTION Secondary Data Collection: -It can be collected from internal as well as external sources 1) Internal Sources:Various internal sources like employee, books, sales activity, stock availability, product cost, etc. 2) External Sources:Libraries, trade publications, literatures, etc are some important sources of external data. In this our survey team have used primary data for the core purpose of the project and this primary data has been gathered by survey method. We have also used secondary data to know the background of the company
LIMITATIONS 1. Due to wide spread information of the data, the scope of project becomes very wide. 2. All the matter has been collected through secondary sources hence, the errors might have crept in. 3. Given the time constraints, all the information could not be gathered. 4. Data being very vast, appropriate information could not be gathered to the point specific requirement needs. CHAPTER-3 COMPANY PROFILE COMPANY PROFILE Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom.
It is the world’s largest mobile telecommunications company measured by revenues and the world’s second-largest measured by subscribers (behind China Mobile), with around 341 million proportionate subscribers as of November 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. The name Vodafone comes from voice data fone, chosen by the company to “reflect the provision of voice and data services over mobile phones”.
Vodafone has its primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately ? 93 billion as of 9 March 2011, making it the fourth-largest company on the London Stock Exchange. It has a secondary listing on NASDAQ. Vodafone the world’s leading variety services communication base company, they have coverage to all the basic services required in the world of telecommunication like voice calls, internet services, text messaging, MMS and video messaging plus all the other data services.
Company has the considerable existence in Europe, the Middle East, Africa, Asia Pacific and the United States of America throughout the company’s subordinate actions, combined, connected activities and financing. The name Vodafone arrives from the voice Datafone, selected by the company to reproduce the prerequisite of voice and data services over the cellular phones. The history of this company is an interesting one. This wireless giant was created in 1984 as a subsidiary of Racal Electronics Plc, In September of 1991 Vodafone Group Plc. emerged and became and independent company from Racal Electronics Plc.
On 28 July 2000 in a merged with Air Touch Communications, Inc. Key milestones in the development of the company’s progress have been the keys to its success. In 2001 they introduce instant messaging the networks. This became a faster and more efficient way to communicate. They launch their first 3G service in Europe with their mobile connect 3G/GPRS data card in 2004. And, in February of 2007 Vodafone, Microsoft and Yahoo! together to bring Instant messaging services to the mobile world which can be accessed from both the PC and mobile handsets. VODAFONE HISTORY:
In 1982 Racal Electronics plc’s subsidiary Racal Strategic Radio Ltd. won one of two UK cellular telephone network licenses. The network, known as Racal Vodafone was 80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5% respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal Electronics bought out the minority shareholders of Vodafone for GB? 110 million. In September 1988 the company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics floated 20% of the company.
The flotation valued Racal Telecom at GB? 1. 7 billion On 16 September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for ? 30. 6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for ? 77 million, a 181 store chain whose customers were overwhelmingly using Vodafone’s network. In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores.
In 1997 Vodafone introduced its Speech mark logo, as it is a quotation mark in a circle; the O’s in the Vodafone logotype are opening and closing quotation marks, suggesting conversation. On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone Airtouch plc. Trading of the new company commenced on 30 June 1999. To approve the merger, Vodafone sold its 17. 2% stake in E-Plus Mobilfunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network. Vodafone’s original logo used until the introduction of the speech mark logo in 1998.
On 21 September 1999 Vodafone agreed to merge its U. S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000. In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone’s interest in Mannesmann had been increased by the latter’s purchase of Orange, the UK mobile operator. Chris Gent would later say Mannesmann’s move into the UK broke a “gentleman’s agreement” not to compete in each other’s home territory. The hostile takeover provoked strong protest in Germany and a “titanic struggle” which saw Mannesmann resists Vodafone’s efforts.
However, on 3 February 2000 the Mannesmann board agreed to an increased offer of ? 112bn, then the largest corporate merger ever. The EU approved the merger in April 2000. The conglomerate was subsequently broken up and all manufacturing related operations sold off. On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In April 2001 the first 3G voice call was made on Vodafone United Kingdom’s 3G network. In 2001 the Company took over Eircell, then part of eircom in Ireland, and rebranded it as Vodafone Ireland.
It then went on to acquire Japan’s third-largest mobile operator J-Phone, which had introduced camera phones first in Japan. On 17 December 2001 Vodafone introduced the concept of “Partner Networks” by signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone international services to the local market, without the need of investment by Vodafone. The concept would be used to extend the Vodafone brand and services into markets where it does not have stakes in local operators. Vodafone services would be marketed under the dual-brand scheme, where the Vodafone brand is added at the end of the local brand. (i. e. TDC Mobil-Vodafone etc. ) In February 2002 Finland was added into the mobile community, as Radiolinja is signed as a Partner Network. Radiolinja later changed its named to Elisa. Later that year the Company rebranded Japan’s J-sky mobile internet service as Vodafone live! and on 3 December 2002 the Vodafone brand was introduced in the Estonian market with signing of a Partner Network Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed its name to Elisa. On 7 January 2003 the Company signed a group-wide Partner agreement with mobilkom Austria. As a result, Austria, Croatia, and Slovenia were added to the community.
In April 2003 Og Vodafone was introduced in the Icelandic market and in May 2003 Vodafone Italy (Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21 July 2003 Lithuania was added to the community, with the signing of a Partner Network agreement with Bite. In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg’s LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to rename its mobile phone operations to Cytamobile-Vodafone. In April 2004 the Company purchased Singlepoint airtime provider from John Caudwell (Caudwell Group) and approx 1. 5million customers onto its base for ? 05million, adding sites in Stoke on Trent (England) to existing sites in Newbury (HQ), Birmingham, Warrington and Banbury. In November 2004 Vodafone introduced 3G services into Europe. In June 2005 the Company increased its participation in Romania’s Connex to 99% and also bought the Czech mobile operator Oskar. On 1 July 2005 Oskar of the Czech Republic was rebranded as Oskar-Vodafone. Later that year on 17 October 2005 Vodafone Portugal launched a revised logo, using new text designed by Dalton Maag, and a 3D version of the Speech mark logo, but still retaining a red background and white writing (or vice versa).
Also, various operating companies started to drop the use of the SIM card pattern in the company logo. (The rebranding of Oskar-Vodafone and Connex-Vodafone also does not use the SIM card pattern. ) A custom typeface by Dalton Maag (based on their font family InterFace) formed part of the new identity. On 28 October 2005 Connex in Romania was rebranded as Connex-Vodafone and on 31 October 2005 the Company reached an agreement to sell Vodafone Sweden to Telenor for approximately €1 billion. After the sale, Vodafone Sweden became a Partner Network.
In December 2005 Vodafone won an auction to buy Turkey’s second-largest mobile phone company, Telsim, for $4. 5 billion. In December 2005 Vodafone Spain became the second member of the group to adopt the revised logo: it was phased in over the following six months in other countries. In 2006 the Company rebranded its Stoke-on-Trent site as Stoke Premier Centre, a centre of expertise for the company dealing with Customer Care for its higher value customers, technical support, sales and credit control. All cancellations and upgrades started to be dealt with by this call centre.
On 5 January 2006 Vodafone announced the completion of the sale of Vodafone Sweden to Telenor. On February 2006 the Company closed its Birmingham Call Centre. In 1 February 2006 Oskar Vodafone became Vodafone Czech Republic, adopting the revised logo and on 22 February 2006 the Company announced that it was extending its footprint to Bulgaria with the signing of Partner Network Agreement with Mobiltel, which is part of mobilkom Austria group. On 12 March 2006 former chief, Sir Christopher Gent, who was appointed the honorary post Chairman for Life in 2003, quits following rumours of boardroom rifts.
In April 2006 the Company announced that it has signed an extension to its Partner Network Agreement with BITE Group, enabling its Latvian subsidiary “BITE Latvija” to become the latest member of Vodafone’s global partner community. Also in April 2006 Vodafone Sweden changed its name to Telenor Sverige AB and Connex-Vodafone became Vodafone Romania, also adopting the new logo. On 30 May 2006 Vodafone announced the biggest loss in British corporate history (? 14. 9 billion) and plans to cut 400 jobs; it reported one-off costs of ? 23. 5 billion due to the revaluation of its Mannesmann subsidiary.
On 24 July 2006 the respected head of Vodafone Europe, Bill Morrow, quit unexpectedly and on 25 August 2006 the Company announced the sale of its 25% stake in Belgium’s Proximus for €2 billion. After the deal, Proximus was still part of the community as a Partner Network. On 5 October 2006 Vodafone announced the first single brand partnership with Og Vodafone which would operate under the name Vodafone Iceland and on 19 December 2006 the Company announced the sale of its 25% stake in Switzerland’s Swisscom for CHF4. 25 billion (? 1. 8 billion). After the deal, Swisscom would still be part of the community as a Partner Network.
Finally in December 2006 the Company completed the acquisition of Aspective, an enterprise applications systems integrator in the UK, signaling Vodafone’s intent to grow a significant presence and revenues in the ICT marketplace. Early in January 2007 Telsim in Turkey adopted Vodafone dual branding as Telsim Vodafone and on 1 April 2007 Telsim Vodafone Turkey dropped its original brand and became Vodafone Turkey. On 1 May 2007 Vodafone added Jersey and Guernsey to the community, as Airtel was signed as Partner Network in both crown dependencies.
In June 2007 the Vodafone live! Mobile Internet portal in the UK was relaunched. Front page was now charged for and previously “bundled” data allowance was removed from existing contract terms. All users were given access to the “full” web rather than a Walled Garden and Vodafone became the first mobile network to focus an entire media campaign on its newly launched mobile Internet portal in the UK. On 1 August 2007 Vodafone Portugal launched Vodafone Messenger, a service with Windows Live Messenger and Yahoo! Messenger.
On 17 April 2008 Vodafone extended its footprint to Serbia as VIP mobile was added to the community as a Partner Network and on 20 May 2008 the Company added VIP Operator as a Partner Network thereby extending the global footprint to Macedonia. In May 2008 Kall of the Faroe Islands rebranded as Vodafone Faroe Islands. On 30 October 2008, the company announced a strategic, non-equity partnership with MTS group of Russia. The agreement adds Russia, Armenia, Turkmenistan, Ukraine, and Uzbekistan to the group footprint. VODAFONE GROUP Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985.
On 29 December 1986, Racal Electronics bought out the minority shareholders of Vodafone for GB? 110 million. In September 1988, the company was again renamed Racal Telecom, and on 26 October 1988, Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB? 1. 7 billion. On 16 September 1991, Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996, Vodafone acquired the two thirds of Talkland it did not already own for ? 30. 6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for ? 7 million, a 181 store chain whose customers were overwhelmingly using Vodafone’s network. In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores. In 1997, Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle; the O’s in the Vodafone logotype are opening and closing quotation marks, suggesting conversation. On 29 June 1999, Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone Airtouch plc. Trading of the new company commenced on 30 June 1999. 13] To approve the merger, Vodafone sold its 17. 2% stake in E-Plus Mobilfunk.  The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network. On 21 September 1999, Vodafone agreed to merge its U. S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000. In November 1999, Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone’s interest in Mannesmann had been increased by the latter’s purchase of Orange, the UK mobile operator.
Chris Gent would later say Mannesmann’s move into the UK broke a “gentleman’s agreement” not to compete in each other’s home territory. The hostile takeover provoked strong protest in Germany, and a “titanic struggle” which saw Mannesmann resist Vodafone’s efforts. However, on 3 February 2000, the Mannesmann board agreed to an increased offer of ? 112bn, then the largest corporate merger ever. The EU approved the merger in April 2000. The conglomerate was subsequently broken up and all manufacturing related operations sold off.
On 28 July 2000, the Company reverted to its former name, Vodafone Group plc. In April 2001, the first 3G voice call was made on Vodafone United Kingdom’s 3G network. Vodafone in Iasi, Romania A map showing Vodafone Global Enterprise’ footprint. Vodafone Operating Countries Vodafone’s partners and affiliates In 2001, the Company took over Eircell, then part of eircom in Ireland, and rebranded it as Vodafone Ireland. It then went on to acquire Japan’s third-largest mobile operator J-Phone, which had introduced camera phones first in Japan.
On 17 December 2001, Vodafone introduced the concept of “Partner Networks”, by signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone international services to the local market, without the need of investment by Vodafone. The concept would be used to extend the Vodafone brand and services into markets where it does not have stakes in local operators. Vodafone services would be marketed under the dual-brand scheme, where the Vodafone brand is added at the end of the local brand. (i. e. , TDC Mobil-Vodafone etc. ) Vodafone Global Enterprise
Global Enterprise is a business set up by Vodafone with the sole purpose of handling Vodafone’s multinational clients. It is the high end business to business (B2B) section of Vodafone Group, and acts like an operating country (such as for example Vodafone UK). Devices and services available in any operating country, are available to Global Enterprise customers in the same country, and so Vodafone Global Enterprise are able to offer a wide range of products. Vodafone Global Enterprise have a presence in over 65 countries, and this number is expected to grow in future, as with the recent aqcuisition of Ghana Telecom.
Since its foundation in 2007, Global Enterprise has aimed to be a world leader in managed mobility services. Vodafone Global Enterprise are headquartered in Newbury, but have operatives around the world; while many of Vodafone’s marketing employees are relocated to London, Global Enterprise’ team will remain in Newbury. Nick Jeffery leads Vodafone Global Enterprise. He led the creation of Vodafone Global Enterprise in 2007, and continues to define the strategy and operational execution for Vodafone’s relationship with multi-national corporate customers.
Global Enterprise have a dedicated group of account managers, at both global and national levels, who look after customers needs, and are supported by pre-sales and technical consultancy teams. Products and Services include: Enterprise Central, Telecomms Management, Global Device Portfolio and Managed Mobility Services. In 2009, Vodafone Global Enterprise was the winner of Best Mobile Enterprise Service at the GSMA Global Mobile Awards 2009. Europe Networks in Europe| Majority-owned| | Minority-owned| | No Ownership|
Albania| | France| | Austria| Belgium| Czech Republic| | Poland| | Bulgaria| Channel Islands| Germany| | | | Croatia| Cyprus| Greece| | | | Denmark| Estonia| Hungary| | | | Finland| Faroe Islands| Ireland| | | | Iceland| Latvia| Italy| | | | Lithuania| Luxembourg| Malta| | | | Rep. of Macedonia| Norway| CORE COMPETENCY OF VODAFONE Vodafone’s primary aim is to be the world’s mobile communication leader enriching customers’ lives through the unique power of mobile communications and also to maintain the top position in the mobile telecommunications group.
With immense competition Vodafone has so far dominated the market by being the world’s leader in mobile telecommunications. Vodafone, being a global leader in mobile communications is a customer oriented company. By analysing Vodafone’s overall structure it can be understood that the reliable innovative services and the customer-centric “passion for customers” are the core products and are very important for the company. Vodafone’s capabilities in management and research and development should also be considered their core competencies because these abilities give them a source of competitive advantage over its rivals.
Acquiring and merging with companies has allowed Vodafone to grow their customer base internationally. By investing in research and development, next generation platforms for mobile telephony for both voice and data allow Vodafone to maintain a competitive advantage. Vodafone has a sustainable competitive advantage Only using valuable, rare, costly-to-imitate, and non-substitutable capabilities create sustainable competitive advantage. Vodafone had valuable, rare, costly to imitate capabilities, but these capabilities were substitutable, thus, they had a temporary competitive advantage.
However, if Vodafone finds a way to successfully differentiate itself to become non-substitutable, it will have a sustained competitive advantage. This temporary competitive advantage has performance implications of average returns to above-average returns. (a) Valuable – Yes Because Vodafone sticks to what it knows best, mobile telephony, and has not ventured into fixed line. Telephony or providing content, they created value for their customers by being the best and most focused. (b) Rare – Yes Vodafone’s ability to develop innovative technology and successfully merge are rare capabilities. (c) Costly to Imitate – Yes
The organizational culture of Vodafone must be strong to successfully complete mergers and acquisitions, while simultaneously developing innovative technology. These capabilities have developed over time and the expertise gained will be very difficult for other firms to develop. (d) Non-substitutable – No Vodafone’s mobile telephony is substitutable, as evidenced by the high turnover throughout the industry. While most organizations have gone the way of outsourcing their peripheral activities while managing their core competencies in-house, a recent happening in the Wireless industry seemed to have changed this rule.
March 18, 2009 witnessed an announcement from Vodafone that they have decided to outsource the administration of their large wireless network in the UK to none other than Ericsson. Vodafone’s brand image is very evident and has a strong market value, analysis. As Vodafone has a very strong market value in the UK, the report also mentions about how Vodafone prepares itself for the future. Vodafone being such a powerful brand in the Mobile industry, it is hence very important to discuss, in terms of the strategic planning, management as it will decide the future position of the company.
PARTNER MARKETS OF VODAFONE: Vodafone Group has entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Market Agreements, Vodafone and its partner operators co-operate in the marketing of global products and services with varying levels of brand association. This strategy enables Vodafone to implement services in new territories and to create additional value to their partners’ customers and to Vodafone’s travelling customers without the need for equity investment in these countries. KEY PLAYERS IN INDIAN TELECOM INDUSTRY
Major Players There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices) Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications) BSNL Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc.
Within a span of five years it has become one of the largest public sector units in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer’s confidence. Today, it has about 47. 3 million line basic telephone capacity, 4 million WLL capacity, 20. 1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5. Lakhs villages. BHARTI Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services.
Its subsidiaries operate telecom services across India. Bharti‘s operations are broadly handled by two companies: The Mobility group: That handles the mobile services in 16 circles out of a total 23 circles across the country. The Infotel group: That handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. Bharti Tele-Ventures’ strategic objective is ? o capitalize on the growth opportunities the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services. RELIANCE INFOCOMM Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate . It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services.
Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Infocomm’s initiatives was launched on December 28, 2002. This marked the beginning of Reliance’s vision of ushering in a digital revolution in India by becoming a major catalyst in improving Quality of life and changing the face of India.
Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India’s farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was permitted to provide only ? limited mobilityservices through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country‘s largest mobile operator.
It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market. INTERNATIONAL COMPETITORS OF VODAFONE * Deutsche Telekom * Orange * Telefonica O2 Europe * Verizon Wireless * AAPL ACQUISITION OF HUTCH BY VODAFONE 15 March 2007, Vodafone announced acquisition from Hutchison Telecommunications International Limited (“HTIL”) of companies with interests in Hutchison Essar Limited (“Hutch Essar”). Vodafone paid US$10. 9 billion (? 5. billion) in cash to HTIL, reflecting retention and closing adjustments agreed between Vodafone and HTIL. UK telecom Vodafone has acquired the 67 per cent stake of Hutchison Telecom International in Indian mobile company Hutchison Essar. The company was valued at $18. 8 billion. So Vodafone paid $11. 1 billion to HTIL for the 67 per cent stake. Vodafone assumed net debt of approximately $2. 0 billion. As of now, it looks like Essar will remain the minority partner with 33 per cent. Vodafone, however, said that it would make an offer to buy Essar‘s stake at the equivalent price per share it has agreed with HTIL.
VISION OF VODAFONE Our Vision is to be the world’s mobile communication leader – enriching customers’ lives, helping individuals, businesses and communities be more connected in a mobile world. MISSION OF VODAFONE Vodafone is primarily a user of technology rather than a developer of it, and this fact is reflected in the emphasis of our work programme on enabling new applications of mobile communications, using new technology for new services, research for improving operational efficiency and quality of our networks, and providing technology vision and leadership that can contribute directly to business decisions.
VODAFONE CUSTOMERS Essel Group. Wipro. ICICI group. Siemens. Future group. Mother Dairy. Govt. of Gujarat. Ernst & Young. GE Akzo Nobel Whirlpool Bajaj Auto. Deloitte. Coca Cola. Godrej group. Kotak Group PRODUCTS OFFERED BY VODAFONE Gateway Data cards Blackberry Voice World calling card Magic box handsets Prepaid / Postpaid Vodafone At Home Vodafone Office Vodafone Passport MOBILE MONEY TRANSFER SERVICE BY VODAFONE In March 2007, Safaricom, which is part owned by Vodafone and the leading mobile communication provider in Kenya, launched a mobile payment solution developed by Vodafone. 28] M-PESA is aimed at mobile customers who do not have a bank account, typically because they do not have access to a bank or their income is insufficient to justify a bank account. The M-PESA system allows customers to deposit and withdraw cash via local agents, and transfer money to other mobile phone users via SMS. By February 2008, the M-PESA money transfer system in Kenya had gained 1. 6 million customers and Vodafone announced that it was to extend the service to Afghanistan.  The service here was launched on the Roshan network under the brand M-Paisa with a different focus to the Kenyan service.
M-Paisa was targeted as a vehicle for microfinance institutions’ (MFI) loan disbursements and repayments, alongside business to business applications such as salary disbursement. The Afghanistan launch was followed in April 2008 by the announcement of further a further launch of M-PESA in Tanzania. As an operator of money transmission services, Vodafone became subject to anti-money laundering regulation and in July 2008, it was revealed that it had deployed a sanctions and PEP (Politically Exposed Persons) screening solution from Datanomic for weekly screening of 2. million customers in Tanzania.  The screening service was to be rolled out to Afghanistan, Kenya, India and Datanomic disclosed that the solution might be used to screen all of Vodafone’s 300 million customers globally. Chief Executives Name| Between| Sir Gerald Whent| October 1988 – December 1996| Sir Christopher Gent| January 1997 – July 2003| ArunSarin| July 2003 – July 2008| Vittorio Colao| July 2008 – present| In a period just short of twenty years from its initial public offering, the Company had just three Chief Executives.
The fourth CEO, Vittorio Colao, stepped up from Deputy Chief Executive in July 2008. Each of his predecessors made a personal contribution to the development of the Company. Sir Gerald Whent, at that time an Executive with Racal Electronics plc, was responsible for the bid for a UK Cellular Network licence. The Mobile Telecoms division was de-merged, and was floated on the London Stock Exchange in October 1988 and Sir Gerald became Chief Executive of Racal Telecom plc. Over the next few years the company grew to become the UK’s Market Leader, changing its name to Vodafone Group plc in the process.
Sir Christopher Gent took over as Chief Executive in January 1997, after Sir Gerald’s retirement. Sir Christopher is responsible for transforming Vodafone from a small UK operator, into the global behemoth that it is today, through the merger with the American AirTouch, and the takeover of Germany’s Mannesmann. ArunSarin was the driving force behind the Company’s move into Emerging Markets such as Asia and Africa, through the purchases such as that of Turkish operator Telsim, and a majority stake in Hutchison Essar in India.
Faced with increased competition, and penetration rates above 100% in the more mature European markets, it was necessary to diversify from being a mobile-only business, into a company which provided all telecommunications services. This has seen Vodafone launch DSL and other fixed-line services in markets such as Germany and the UK. Financial results Vodafone reportes its results in accordance with International Financial Reporting Standards (IFRS). Vodafone has some large minority stakes, which are not included in its consolidated turnover.
In order to provide additional information on the overall scale and growth trends of its business, it publishes “proportionate turnover” figures, and these are included in the tables below. For example, if a business in which it owns a 45% stake has turnover of ? 10 billion, that equals ? 4. 5 billion of proportionate turnover for Vodafone. Proportionate turnover is not an official accounting measure, and Vodafone’s proportionate turnover should be compared with other companies’ statutory turnover. Vodafone also produces proportionate customer number figures on a similar basis, eg. f an operator in which it has a 30% stake has 10 million customers that equals 3 million proportionate Vodafone customers. This is a common practice in the mobile telecommunications industry. Year ended 31 March| Turnover ? m| Profit before tax ? m| Profit for the year ? m| Basic eps (pence)| Proportionate customers (m)| 2008| 35,478| 9,001| 6,756| 12. 56| 260| 2007| 31,104| (2,383)| (5,297)| (8. 94)| 206. 4| 2006*| 29,350| (14,835)| (21,821)| (35. 1)| 170. 6| 2005| 34,073| 7,951| 6,518| 9. 68| 154. 8| 2004| 36,492| 9,013| 6,112| 8. 70| 133. 4| *Losses for year to 31 March 2006 reflect write downs of assets, principally in relation to the Mannesmann acquisition. Proportionate turnover includes ? 7,100 million from discontinued operations. The group’s recent first quarter trading update (24 July, 2009) saw management reiterating its profit guidance for the full year.
Whilst revenues across Europe had been relatively weak, mirroring general economic conditions, there had been a positive showing from South Africa, with the company’s Indian purchase of Hutchison Essar continuing to generate returns. Meanwhile, its joint venture with Verizon in the US had strengthened further, with Vodafone’s overall customer base now standing at 315 million – 8 million having been added during the first quarter. In addition, management noted that its cost reduction programme, targeted to save ? bn in operating costs by the end of the 2011 financial year, would reach 65pc of its target by the end of the current financial year. Products Products promoted by the Group include Vodafone live! , Vodafone Mobile Connect USB Modem, Vodafone Connect to Friends, Vodafone Passport, Vodafone Freedom Packs, Vodafone at Home, Vodafone 710 and Amobee Media Systems. Between June and August 2009, Vodafone have abolished roaming charges within 35 different countries, allowing their customers to take their standard UK price plan abroad.
Corporate sponsorship A Vodafone-sponsored McLaren-Mercedes driven by Lewis Hamilton Vodafone sponsors the following teams and events: * Kshitij, Annual Techno-management festival of IIT Kharagpur, Strategic Partner 2008 * Albania national football team, 2008 sponsor * Brisbane Lions Football Club, Australian rules football team, major sponsor from 2007 * Indian Premier League (Cricket), Associate sponsor * Bucharest Ring – Vodafone Bucharest Challenge 07, primary sponsor * ClareGaelic Athletic Association Deutsche Tourenwagen Masters (DTM – German Touring Car Masters) series (2002–2007) (formerly D2). * Vodafone Oaks and Vodafone Derbyhorse races * Gaelic Athletic Association – Vodafone is one of the main sponsors of Ireland’s GAA Football Championship for the 2009 Summer. * Vodafone McLaren Mercedes Formula One team, title sponsor * New Zealand Warriors – An NRL Rugby League team * UEFA Champions League from the 2006/7 season * Port Adelaide Football Club Australian rules football team, joint major sponsor since 1997 * North Melbourne Football Club Australian rules ootball team, joint major sponsor since 2008 * Romania National Football Team, major sponsor from 2006 * St Kilda Football Club Australian rules football team, joint major sponsor from 2007 * Vodafone Arena (Rosenholm) multisport arena in Karlskrona, Sweden (since 2005) * Wellington Lions – New Zealand rugby union team * West Coast Eagles, Australian rules football team, elite sponsor since March 2006 * Triple 8 Race Engineering, V8 Supercars team, primary sponsor (since 2007) * Olympiakos, Greek football team * Newbury R. F. C. Newbury Rugby Club * Newbury Comedy Festival * Newbury Buses * Home-Start International worldwide family support charity * Al Ahly, Egyptian Club football team * UCD Ents, the Entertainments Division of UCD Students’ Union – primary sponsor (since 2007) * Penske Racing – Primary sponsorship of the #12 NASCAR Nationwide Series, Grand-Am Rolex Sports Car Series, and Indy Racing LeagueIndyCar Series cars entries. A Associate sponsorship of the #3 and #6 Dallara-Honda IndyCar Series. All are through the Cellco Partners venture with Verizon.
This sponsorship was moved from the NASCAR Sprint Cup Series because their purchase of Alltel broke NASCAR’s grandfather clause prohibiting wireless telephone companies from advertising in the NASCAR Sprint Cup Series, and was split among all other racing efforts. Each of the 30 ads will promote a different value-added service on offer by Vodafone, from maps to stock alerts. . RECHARGE CARDS | Recharge cards | | MRP (Rs) | | Access Fee (Rs) | | Talktime| | Validity (days) | | Equivalent mins. | | 10 | | 2. 00 | | 7. 07 | | 0 | | 6. 37 | | 15* | | 13. 45 | | 0. 00 | | 0 | | 0. 00 | | 20 | | 2. 0 | | 16. 13 | | 0 | | 14. 53 | | 21* | | 18. 62 | | 0. 00 | | 0 | | 0. 00 | | 25| | 22. 6| | 0| | 0| | 0| | 30 | | 2. 00 | | 25. 20 | | 0 | | 22. 70 | | 31* | | 28. 06 | | 0. 00 | | 0 | | 0. 00 | | 33* | | 29. 44 | | 0. 00 | | 0 | | 0. 00 | | 39* | | 34. 85 | | 0. 00 | | 0 | | 0. 00 | | 46* | | 41. 21 | | 0. 00 | | 0 | | 0. 00 | | 47* | | 42. 20 | | 0. 00 | | 0 | | 0. 00 | | 48| | 40. 51| | 3. 01| | Lifetime| | 2. 71| | 49* | | 44. 37 | | 0. 00 | | 0 | | 0. 00 | | 55 | | 2. 00 | | 47. 86 | | 0 | | 43. 12 | | 110 | | 2. 00 | | 97. 73 | | 0 | | 88. 05 | | 149* | | 134. 99 | | 0. 00 | | 0 | | 0. 0 | | 199 | | 2. 00 | | 178. 41 | | 0 | | 160. 73 | | 298* | | 270. 07 | | 0. 00 | | 0 | | 0. 00 | | 549* | | 497. 33 | | 0. 00 | | 0 | | 0. 00 | | 599 | | 0. 00 | | 543. 05 | | 365 days | | 489. 23 | | 2500* | | 2266. 22 | | 0. 00 | | 0 | | 0. 00 | | 2599* | | 2355. 96 | | 0. 00 | | 0 | | 0. 00 | | | | | Average rate calculation| Type of call rate (Rs / min)| | % of distribution of MOU| | Rate (Rs / min)| | Effective rate| Local Mobile-to-Mobile| | 59%| | 1. 00| | 0. 59| Local – Fixed| | 20%| | 1. 00| | 0. 20| STD – Mobile-to-Mobile| | 14%| | 1. 5| | 0. 21| STD – Fixed| | 7%| | 1. 5| | 0. 11|
Average rate| | | | 1. 11| | 0. 11| | | * Bonus cards| 15 : 60 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of recharge| 21 : All local vodafone to vodafone calls @ 20p/min for one selected vodafone number for 30 days| 25 : 125 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of recharge| 31 : All STD calls at Re 1/min for 30 days | 33 : 200 local V2V mins, to be used btw 11 pm & 8 am. Mins to be used within 30 days of recharge| 39 : All local calls at 60p/Min for 30 days| 46 : 300 local V2V mins, to be used btw 11 pm & 8 am.
Mins to be used within 30 days ofrecharge| 49 : Local SMS @ 2 p for 30 days| 47 : US/Canada [email protected] 99/min,Gulf [email protected] 99/min&UK,Europe/Australia/Newzealand [email protected] 99/min & SEA @3. 20/min – to be used in 2 days| 149 : US/Canada calls @ Rs. 5. 25/min+All STD Calls @ Re1/min – to be used in 60 days| 298 : Gulf Calls @ Rs. 6. 99/min – to be used in 60 days| 549 : USA/Canada calls @Rs3. 99/min,UK Fixed & SEA call @Rs4. 20/min,[email protected] 50/min,China @Rs2. 50/min – to be used in 90 days| 2500 : US/Canada calls @ Rs. 1. 99/min,South East Asia @ Rs4. 0/min + All STD calls @ Re 1/min – to be used in 270 days| 2599 : Call UAE @ Rs 6/min and Rest of Gulf @ Rs8/min with 6sec pulse + All STD calls @ Re 1/min – to be used in 270 days| | | | Vodafone Trims Down Base Tariff On Local & STD Calls Vodafone, India’s second largest telecom operator, has reduced base tariff on its local and STD call charges in Bihar and Jharkhand. The new base tariff for local call is 50 paisa per minute, whereas for STD it is Rs. 1 per minute. The new base tariffs will be applicable to all new as well as existing Vodafone subscribers irrespective of their current plan.
The subsisting users don’t have to buy any additional voucher or bonus card. Vodafone has also launched two new STD bonus cards for its prepaid subscribers in Bihar and Jharkhand. These two bonus cards – Regional STD Bonus Card and All India STD Bonus Card allow STD calls at 50 paisa per minute in a predefined region. Both bonus cards are valid for a period of 30 days. The Regional STD Bonus Card costs Rs 24 and it enables the Vodafone customer to make STD calls at 50 paisa per minute to the bordering states of Uttar Pradesh, Orissa, West Bengal, Assam and the North East.
The All India STD Bonus Card is available for Rs 49 and allows user to call anywhere in India at 50 paisa per minute TARRIF OFFERS 1. Friends and Family Keep in touch with your Family & Friends at just 20p / min . You can include up to 10 Vodafone AP numbers in your list of family & friends. 2. STD goes Local Recharge with Rs 54 and make STD calls to any phone in India @ Re 1 / min. This offer is valid for a period of 30 days. 3. Call @ 60p Make calls to any local phone in Andhra Pradesh at just 60p / min, by recharging with Rs 39. 4. South STD @ 50p/min
Recharge with 38 & make all STD Calls to Kerala, TN & Karnataka @ 50p/min for 30 Days. 5. STD @ 50p/min to metros Recharge with 26 & make all STD Calls to Delhi, Mumbai, Kolkata& Chennai @ 50p/min for 30 Days 6. Talk @ 20 p/min with Vodafone Friends Circle Now talk @ 20 p/min with Vodafone Friends circle. You can add a maximum of 10 numbers to your friends circle. To know more, smsFRIENDS to 144 (toll free) Charges: Rental – Re 1/ day or Recharge with Bonus Card 21 Number change – Rs 5 per no Note: Applicable only on local Vodafone to Vodafone calls. BONUS CARDS 1. All local calls @ 60p/mins for a year
Buy a Bonus Card worth Rs 59 and make all local calls @ 60p / min 2. SMS promo packs Rs 30 SMS Promo Pack Get 100 local SMS for 1 month at Rs 30. To activate, SMS ACT SMS30 to 111 (toll free) Note: ? | The promo pack is valid 30 days from the date of subscription| ? | You can subscribe to this SMS Promo Pack only once. | Chota SMS Promo Pack Pay a monthly rental of Rs 10 and get 25 free local SMS. Validity is 1 month from date of activation. To activate, SMS CSMS to 111 (toll free) SMS Card @ Rs 49 Recharge with an SMS Card worth Rs 49 and get local SMS @ 2p for 30 days. 3. Apne minutes
You can now enjoy free local calls to local Vodafone mobile phones from 11 pm to 8 am. All you need to do is just recharge with Rs 15 or 25 or Rs 33 or Rs 46. ? Buy a recharge voucher worth Rs. 15 and get 60 free local Vodafone to Vodafone minutes, to be used in 30 days ? Buy a recharge voucher worth Rs. 25 and get 125 free local Vodafone to Vodafone minutes, to be used in 30 days ? Buy a recharge voucher worth Rs. 33 and get 200 free local Vodafone to Vodafone minutes, to be used in 30 days ? Buy a recharge voucher worth Rs. 46 and get 300 free local Vodafone to Vodafone minutes, to be used in 30 days . SMS @ 10p Now get all local SMS @ 10p / SMS Recharge with Rs 34 Bonus Card to get 340 local SMS valid for 30 days. CHAPTER-4 COMPANY ANALYSIS VODAFONE MARKETING MIX INDRODUCTION: Vodafone is the world’s largest mobile telecommunicationscommunity, employing over 65,000 staff and with over 130 millioncustomers. The business operates in 26 countries worldwide. Vodafone is a public limited company with listings on the Londonand New York stock exchanges. Global recognition of the Vodafone brand is growing as the company rolls out its identity into new markets.
However, it retainslocal names and imagery in markets where this is essential tomaintaining the trust of customers. To help promote its image worldwide, Vodafone uses leading sportsstars from high profile global sports, including David Beckham andMichael Schumacher. This Case Study concentrates on how suchpromotion can help to keep a leading brand at the forefront ofpublic awareness. ESSENTIALS OF MARKETING: The world is a global market with few barriers, so Vodafone has to be highly visible as ‘the brand to buy’. Effective marketing is the key to this high visibility.
Marketing involves anticipating customers’ needs and finding the right product or service to meet those needs, thereby encouraging high sales levels. Vodafone goes further by looking to impress on its customers not merely what its products are i. e. features, but also what they can increasingly do i. e, benefits. This involves effective communication. There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are exposed to a barrage of different images and messages by mobile phone companies, as the competition gets tougher.
Vodafone appeals to new customers and aims to keep its existing ones by emphasising the uniqueness of the brand. Vodafone’s aim is to grow its revenue and improve its profit margin by adding value to its products and services i. e. earning more from each product sold. The ‘Vodafone live! ’ service enables customers to use picture messaging and to download polyphonic ring tones, colour games, images and information, through an icon-driven menu. This service will soon be further enhanced by picture messaging libraries, video clips and video telephony (seeing the person you’re calling) and improving download speeds.
Another service is the Vodafone Mobile Connect Card, which enables customers to access their normal business applications on a laptop when out of the office. Such services add value to the product, and high profile effective promotion will help sell these services to existing and new customers. VODAFONE’S MARKETING MIX: A longer term marketing strategy is underpinned by careful planningand a successful marketing mix. The marketing mix is a combination ofmany features that can be represented by the four Ps. * product – features and benefits of a good or service place – where the good or service can be bought * price – the cost of a good or service * promotion – how customers are made aware of a good or service. Product: * A product with many different features provides customers with opportunities to chat, play games, send and receive pictures, change ring tones, receive information about travel and sporting events, obtain billing information and soon view video clips and send video messages. Place: * Vodafone UK operates over 300 of its own stores. * It also sells through independent retailers e. . Carphone Warehouse. * Customers are able to see and handle products they are considering buying. * People are on hand to ensure customers’ needs are matched with the right product and to explain the different options available. Price: * Vodafone wants to make its services accessible to as many people as possible: from the young, through apprentices and high powered business executives, to the more mature users. * It offers various pricing structures to suit different customer groups. * Monthly price plans are available as well as prepay options.
Phone users can top up their phone on line. * Vodafone UK gives NECTAR reward points for every ? 1 spent on calls, text messages, picture messages and ring tones. Promotion: Vodafone works with icons such as David Beckham to communicate its brand values. Advertising on TV, on billboards, in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively. This is known as above the line promotion. * Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy. Vodafone’s stores, its products and its staff all project the brand image. * Vodafone actively develops good public relations by sending pressreleases to national newspapers and magazines to explain new products and ideas. Vodafone’s ZooZoos, stars of IPL ad breaks Vodafone has given birth to ZooZoo a special character created specifically to convey value added service (VAS). Meet the Zoo zoos, the stick-like figures with egg-like heads that appear in TV ads for Vodafone and have become all the rage in India.
So much so that the Vodafone plans to air 25 to 30 different commercials featuring the Zoo zoos during the Indian Premier League’s (IPL) Twenty20 cricket series seems like a strategic masterstroke, although it is likely to come as a surprise to viewers that the ads aren’t animated—there are really people inside those Zoo zoo costumes. But this much is known: Zoo zoo is definitely anthropomorphic, and was created by the creative team at Ogilvy and Mather (O&M) India. The ads, 13 of which have been aired until now, have become popular with viewers.
So much so that one of them, an ad for beauty tips over the phone, was viewed 13,000 times last week on YouTube. The Zoo zoos have also taken Facebook by storm. They have nearly 35,000 friends. “With approximately 300 seconds of media being spent each day (on IPL), we had to figure out a way to communicate as many services as possible in a way that would not cheese off the customer,” said HaritNagpal, director (marketing and new business) at Vodafone Essar Ltd. VODAFONE STRATEGY: Market Penetration Vodafone’s market infiltration strategy is to • Improve through geographic development Achievement in terms of new customers. • Retaining the existing customers. • Increase the usage through modernism in expertise. Market Development In retail market industry Etisalat is consider as a best sample specially in the market of telecommunication who keep in mind spread out strategies, and makes its market on regular bases and by improving its value in new market by producing new channel. Diversification Strategy Under the Supervision of ArunSarin (CEO), Vodafone again successfully gain its position to oppose worldwide forces in future.
In term of market sector who sells products and services, and geographically the strategies of diversification feature can be characterized in the form of text book. In past it was only a telecom company while in the future it will be the company which can provide internet, mobile, broadband and financial services facilities. More over In OECD which is the developed market Vodafone have increase rising of market collection due to its presence in BRIC and it is continuing to take hold in the next eleven countries. Monitoring and Control
In order to build the system going and working the company, the marketing strategies needs to be controlled properly, for this purpose company should follow some strategic tools which can control and supervise. In order to check, one of the important methods is obtain percent of the respected objective or goal. For knowing schedule of the company a mathematical form is to be allocated to the plan. Organizational Structure Swot Analysis Of Vodafone Strength: The main strength of Vodafone within the telecommunications market lies in its brand image and recognition.
Vodafone, having established a global presence and having invested highly in marketing a differentiated image by promoting a Vodafone life style, currently enjoys a differentiating advantage that, if exploited properly, can offer a lead in competition. The presence of Vodafone in numerous countries within Europe as well as in all part of the world enhances this image. It allows customers to travel and enjoy easily the services of their home country operator. It has established strategic alliance to provide better service to client. Weaknesses: The expansion of Vodafone has been completed at the expense of direct control of its operations.
The company grew through a process of acquisitions of national telecommunications companies (e. g. the acquisition of the third biggest Czech mobile phone operator, Cesky mobile) rather than organic growth. This increased its subscribers’ base quickly, offering direct market knowledge and immediate additions of customer bases at the expense of direct effective control of the subsidiaries. At the same time though, it implicitly imposed a centralized operational structure for the group, nominating the UK headquarters as the leading business unit running a much centralised marketing and handset procurement at group level.
This has resulted in the neglect of local markets and local differences, allowing market share to be gained by smallerlocal competitors. Due to the highly saturated Western European market this has resulted in an increase in the price elasticity of demand, with consumers becoming continuously price oriented. This has resulted in high customer churn rates reaching the level of 32. 8% in the UK compared to O2’s 24%. Opportunities: The telecommunications market, even though highly saturated in some regions offers great potential due to the ageing population and the sophistication of the consumers.
It offers great opportunities through a careful market segmentation and exploitation of particular profitable segments. Different strategies should be pursued – simple phones and simplified pricing plans to the ageing population and more updated, sophisticated solutions for younger generations. The expanding Boundaries of the market could provide further opportunities by allowing Vodafone to enter more aggressively into fixed? line service and to better enjoy the benefits of its high investment in 3G technology.
Moreover the company has undertaken its first steps in establishing strategic alliances to develop customized solutions for end? users. Threats: The European part of Vodafone’s market is characterized by existing high levels of competition. Major brands such as O2 and T? Mobile are exploiting the price sensitivity of customers and in this way they are building a stronger image and presence in the market. Indirect competition is also increasing further, through the presence of Skype and other related (not only voice) Internet? based services.
This combined with the upcoming European legislative measures is expected to limit further the tariffs for the network providers imposing further need for price cuts which could harm the bottom line profitability of the company PEST ANAIYSIS A scan of the external macro-environment in which the VODAFONE operates can be expressed in terms of the following factors: Political Economic Social Technological POLITICAL Needs to create self regulating controls in relation to content Public concern ECONOMIC Levels of Growth Company‘s activities Ethical Values i. Spam Text Messages ii. Partnership with Government ii. Code of Practice SOCIAL Adult content Mobile phone theft Malicious calls Text bullying Blue jacking TECHNOLOGICAL Telecommunication Text messages Blue tooth Technology First Generation Technology Second Generation Technology Advent of 3G mobile phone Technology CHAPTER-5 FINDINGS & SUGGESTIONS FINDINGS * Majority of the respondents using Vodafone services. * Majority of the respondents are aware about Vodafone Services available. * The respondents are more aware through word of mouth. * Most of the respondents are Vodafonecustomers and majority of them are new to Vodafone services. Majority of the respondents use prepaid services. * Majorityof the respondents use Vodafone services for reasons ranging from Economicalto Easy to use purpose. * Here major respondents are youngsters so they mainly prefer and go for call rates of Vodafone. * Majorityof the respondent connect with customercare for their queries and complaints regarding services. * General plan is the most popular plan used by majorityof respondents * Majorityof respondents feel that Vodafone is reliableand prices are competent and reasonable.
Majorityof the Vodafone customers would like to recommend Vodafone services to others Suggestions Suggestions on the basis of study and observation made during the project. They might be helpful for Vodafone to serve its customers in an improved way and also increase its customer base in: * Vodafone should decrease call rates for local users. It can be done on the basis of type of usage. * Vodafone should introduce more schemes and offers for all categories. * Vodafone should introdused new SMS schems in their youth plans to meet the challenges of its rivals. Vodafone should provide more schemes and offers to its old customers in order to retain them for the loyalty shown by them. * Vodafone should decrease call rates of STD and ISD to increase its subscriber base. CHAPTER-6 CONCLUSIONS CONCLUSION After doing the whole project we can say that Vodafone has a very huge market share not only in India but also in the whole world. It has a very huge advantage on cost leadership. In this huge competitive world of telecom industry its very difficult to sustain but in the past years we are seeing that Vodafone is generating a huge amount of profit.
It has planed all its strategies’ so well that it can compete well with its competitors. If they continue to prosper in the same rate their goal of being a leader in telecom industry will be fulfilled. BIBLIOGRAPHY BOOKS: 1. Kotler,Philip,13thedition,Marketing management,Pearson Education. 2. Saxena, Rajan, Marketing management,3rd edition,Mcgraw Hill Publication. 3. Russel,Winer,Marketing Management,3rd edition,Pearson Education. 4. Kumar,Arun and Meenakshi,N. , Marketing Management,Vikas Publishing. 5. Ramaswamy and Namkumar,S. , Marketing Management,McMillan Publication. 6.
Kunar, Arun and Meenakshi,N,(2009),Marketing Management,Vikas Publication. WEBSITES: 1. http://en. wikipedia. org/wiki/Vodafone 2. http://www. vodafone. in/pages/index. aspx 3. http://www. vodafone. com/content/annualreport/annual_report10/business/customers. html 4. https://shop. vodafone. in/shop/directRecharge. jsp? refID=googlesem 5. http://www. vodafone. co. nz/coverage/# MAGAZINES & NEWSPAPERS: 1. The Financial Express,- financial results 2. Business Today- growth of mobile technology ,key players, Vodafone strategy, partner markets. 3. Economics Times-chief executive, organizational structure.