A Marketing Research Report on

VODAFONE
NAME Shah Nikesh CLASS S.Y. B.B.A ROLL NO. SEAT NO. ____ ACADEMIC YEAR 2008-09 COLLEGE Shree H.N. Shukla College, Rajkot SUBMITTED TO SAURASHTRA UNIVERSITY GUIDED BY Mrs. Dina Kanani

Declaration
I the undersigned NIKESH SHAH a student of S.Y.B.B.A., here by declare that the project work presented in this respect is my own work and has been carried out under the supervision of Mrs. Dina Madam of H.N. Shukla COLLEGE, RAJKOT. This work has not been previously submitted to any other university for any other examination.

Date: Place:

Student Sign:

Preface
In this era of globalization where every minute India is moving a step ahead and expanding it horizontally, management in India is heading towards a profession. The demand for managements professionals is increasing day by day. In such a competitive surrounding it becomes a requirement to have an edge over others and B.B.A is such a course, which helps and assists students in doing that.

The practical studies are treated as a different subject in B.B.A which helps the students in practically applying their theoretical knowledge. It helps us to face competition, builds up our confidence and also add something to our personality. Over and above in this fast moving economy, here practical studies play an important role in molding our carriers.

Acknowledgement
I am much obliged to express my deep gratitude to all the personalities who spared their valuable time and gave me helpful cooperation and guidance for my Project Report. I am heartily grateful to the management of Shree H.N. Shukla particularly to the in charge Mrs. Dina Kanani for her helpful cooperation, inspiration, interest and valuable guidance in preparing this report. It is a matter of a great pleasure and excitement for me. I express my sincere thanks to both Gentleman and staff members for devoting their valuable time and providing extreme co-operation and guidance. Last but not least, I would like to express my sincere thanks to all respondents, friends and family members who have helped me in preparing report through the preparation of this report.

Date: Place:

Student Sign:

Index
NO. 1 2 3 4 5 6 7 8 9 10 11 12 PARTICULARS General Information Company Profile Marketing Department Finance Department Personnel Department Future Plans SWOT Analysis Suggestion Contribution My Observations Conclusions Bibliography PAGE NO. 6 19 25 45 53 66 68 74 76 78 80 83

General Information
Contents
NO. 1 2 3 4 5 PARTICULARS Introduction Overview of company History & Development of Company Achievements Location of Company
6

Page No. 8 10 11 13 17

Types of Management Structure

18

Introduction
Vodafone is a leading global telecommunications and data services provider operating with a high growth strategy in 17 countries. It is a dynamic and agile player with a strong track record as:

The first to market with an international 3G video mobile network. One of the most profitable 2G mobile voice and data network operators. As a major owner and operator of the fibre optic broadband and fixedline networks in England, serving as a telecoms gateway to China.
7

It is a world no. 1 in telecommunication. Vodafone started mobile business in 1983 in our home market of England and now serves over 40 million customers. Our array of telecommunications and data network offerings provides a depth of technological knowledge and insight into emerging consumer trends. This breadth of services in so many markets around the world also allows our operations to exploit opportunities, synergies and our critical mass in order to maintain our leadership position. Our telecommunications and data infrastructure support offerings in the areas of mobile telephony (voice and video based multimedia), fibreoptic broadband networks, fixed-line services and radio broadcasting VODAFONE is proud to be the first international provider of 3G video mobile services and an early adopter of the latest and most promising mobile phone technology.

Another of our major telecommunications subsidiary is VODAFONE Telecommunications International Limited which was listed on the England and New York stock exchanges in October 2004. VODAFONE Telecom has a significant presence, and in many cases is a market leader, in nine dynamic markets, operating or rolling out mobile services in England and Macau, India, Israel, Thailand, Ghana, Indonesia and Vietnam. The 3G network in England and a fixed-line telecom running there on a fibre optic network is also part of the VODAFONE Telecom business. VODAFONE Telecom is built on a high-growth strategy focused on
8

mobile telecommunications services markets with economic prospects and good demographics. A number of VODAFONE Telecom markets such as India remain significantly under penetrated and offers significant opportunities for future growth. In other markets such as England and Israel, mobile phone penetration is higher but customers are very eager to adopt new services and applications, offering growth prospects in providing technologicallyadvanced value-added services.

Overview
Name of the company Size of the unit Form of organization Web site Year of establishment Stage of product Name of the service : : : : : : : Vodafone ltd. Large Scale Unit Multinational co. www.vodafone.in 1984 in England Maturity Post paid cards Prepaid cards Short Message Service Voice mail services Vodafone power service

Through continuous innovation, VODAFONE promises to liberate, stimulate customers from the shackles of time and spaces

10

History & Development of the company

Vodafone Limited is a leading international corporation committed to innovation and technology with businesses spanning the globe. Its diverse array of holdings range from some of the world's biggest port operators and retailers to property development and infrastructure to the most technologically-advanced and marketing-savvy telecommunications operators. Vodafone reports turnover of approximately UK 242 billion and UK 124 billion for the year ended 31 December 2006 and for the unaudited results for the six months ended 30 June 2007 respectively With operations in 56 countries and over 220,000 employees worldwide, Vodafone has five core businesses - ports and related services; property and hotels; retail; energy, infrastructure, investments and others; and telecommunications. Vodafone's achievements include being:

The world's leading port investor, developer and operator with 44 ports across Europe, the Americas, Asia, the Middle East and Africa. A pioneer of mobile multimedia communications with the launch of third-generation mobile phones and networks. A visionary and international telecommunications operator through Vodafone Telecommunications International Limited which provides mobile phone networks and data services in nine dynamic markets in Asia, the Middle East and Africa.

11

VODAFONE Whampoa Limited is among the largest companies listed on the main board of the England Stock Exchange. Flagship companies include VODAFONE Port Holdings, VODAFONE Whampoa Properties, A.S. Watson, Cheung Kong Infrastructure and VODAFONE Telecom. VODAFONE dates back to the 1800s and while its operations now span the globe, it continues to remain based in England. VODAFONE's executives and staff are a multicultural mix as diverse as the reach of the corporation's operations. VODAFONE has a strong commitment to the highest standards of corporate governance, transparency and accountability principles which have been recognized by the receipt of numerous awards and commendations. Landmark buildings in the Group's portfolio include the 62storey Cheung Kong Center in the Central district of England, the Oriental Plaza in Beijing, and The Center in Shanghai. Prestigious residential properties in the United Kingdom include Royal Gate Kensington, Belgravia Place and Albion Riverside. Other holdings include a stake in the Pacific Century Place Marunouchi office and hotel towers beside Tokyo Station and a beach and golf resort in the Bahamas. The Group, together with Cheung Kong (Holdings) Limited, has set up a joint venture company, Harbour Plaza Hotel Management (International) Limited, to operate and manage hotels under the portfolio of the VODAFONE Property division.
12

13

Achievements & Accreditations

1. VODAFONE Essar Limited, VODAFONE Mobile Services Limited, Fascel Limited, VODAFONE Telecom East Limited, VODAFONE Essar South Limited, Aircel Digilink India Limited and BPL Mobile Cellular Limited (jointly hereinafter to as VODAFONE) shall use reasonable endeavors to check the accuracy of the information published on its Site. VODAFONE and any other VODAFONE product or service name referred to on the VODAFONE website are trade marks of VODAFONE Essar Limited. 2. Content (information, communications, images and sounds contained on or available through VODAFONE) is provided by VODAFONE, its affiliates, independent content providers and third parties. The contents of VODAFONE are copyright VODAFONE its affiliates, independent content providers or third parties. All rights reserved. The contents of VODAFONE cannot be reproduced, modified, transferred, distributed, republished, downloaded, posted or transmitted in any form or by any means including but not limited to electronic, mechanical photocopying or recording without the prior written permission of VODAFONE Essar Limited. You agree that the material and content contained within or provided by VODAFONE is for your own personal use only and may not be used for commercial purposes or distributed commercially. 3. VODAFONE will use its reasonable endeavors to maintain VODAFONE in a fully operating condition. It is not responsible for the results of any defects that exist in VODAFONE You should not
14

assume that VODAFONE or its content is error free or that it will be suitable for the particular purposes that you have in mind when using it. VODAFONE reserves the right to make subsequent changes to it, and services may be modified, supplemented or withdrawn. 4. It is a condition of us allowing you access to the information on VODAFONE that you accept we will not be liable for any action you take relying on the information on VODAFONE. VODAFONE will not be liable if your use of materials or information from VODAFONE results in the need for servicing, repair or correction of equipment or data, you assume any costs relating to the above. VODAFONE reserves the right to charge for access to certain information on VODAFONE. VODAFONE will inform you where a charge will be incurred by you for accessing certain services or information on VODAFONE. 5. If youre PC does not support relevant technology including but not limited to encryption you may not be able to use certain services or access certain information on VODAFONE. 6. You may not mirror any material contained on VODAFONE on any other server without the prior written consent of VODAFONE Essar Limited. Any unauthorized use of the contents of VODAFONE either under this clause or clause 4 above may be in breach of copyright laws or trademark laws. 7. You acknowledge that VODAFONE has no control over and excludes all liability for any material on the Internet which can be
15

accessed by using VODAFONE Neither can we be deemed to have endorsed the content.

8. By submitting any material to us via the VODAFONE website, via email or otherwise, you do so in the knowledge that VODAFONE may copy, modify, distribute or create a derivative work from that content in any form. You warrant that the material is fit for publication and agree to indemnify us if any third party takes action against us in relation to the material that you submit. You warrant that you believe VODAFONE may publish the material you submit and/or make use of it or any concepts described in it in our products or services without liability and you agree not to take action against us in relation to it.

9. In a few areas of VODAFONE we may ask you to provide personal information that will enable us to use the information you provide us with to keep you informed of our latest products and services after your visit to VODAFONE The personal information will be used in accordance with our online privacy policy. 10. You agree not to cause, nor knowingly allow others to cause, any nuisance, annoyance, or inconvenience, whether to VODAFONE or any of its customers or users of VODAFONE by any means. You also agree not to use VODAFONE to transmit or post any material which is defamatory, offensive or obscene or menacing character or which may in our judgement cause nuisance, annoyance, inconvenience to VODAFONE, or any other person or which is
16

illegal. You will not use VODAFONE such that you would cause the whole or part of VODAFONE to be interrupted, damaged, and rendered less efficient or impaired in any way. 11. The service is accessed via the World Wide Web which is independent of VODAFONE and VODAFONE. Your use of the World Wide Web is solely at your own risk and subject to all applicable national and international laws and regulations. VODAFONE have no responsibility for any information or service obtained by you on the World Wide Web. 12. VODAFONE does not accept responsibility for any defects that may exist or for any costs, loss of profits, loss of data or consequential losses arising from your use of, or inability to use or access or a failure, suspension or withdrawal of all or part of the service at any time. VODAFONE excludes all liability whether in contract, tort (including liability for negligence) or otherwise for the accuracy, suitability, quality or completeness of any information and the value and integrity of goods and services offered by third parties over VODAFONE You acknowledge that we have no control over and we exclude all liability for any material on the World Wide Web, which can be accessed by using VODAFONE. 13. We may suspend or vary the whole or any part of the service offered on VODAFONE for any reason, at any time at our sole discretion. 14. VODAFONE reserve the right to vary the terms of this contract
17

from time to time, such variations becoming effective immediately upon posting of the varied Legal Statement on VODAFONE By continuing to use VODAFONE you will be deemed to accept such

18

Location of The Company

When a new business unit is to be established the main decision to be taken about location of the industry. Location of the unit is a vital factor to deciding the profitability of company. There are many factor which are to be kept in mind while selecting the location of the plant. It includes internal and external factors. Even if promoters have best ability to invest and have the effect management skills but if they dont take care of location, it will decline prosperity of the company.

19

Types of Management Structure

Board of Directors
Production Department Manu. Dept. Marketing Department Assembling Dept. Mkt. Executive Supervisor Worker Supervisor Employee Worker Finance Department Finance Manager H.R. Department H.R. Manager

20

Company
21

Profile

22

Contents
Sr. No. 1 2 3 4 Particulars World wide VODAFONE Presence of VODAFONE a Cellular VODAFONE The Brand In the Pipeline Page No. 21 22 23 24

23

World Wide VODAFONE

VODAFONE is a leading global telecommunications and data services provider operating with a high growth strategy in 17 countries. It is a dynamic and agile player with a strong track record as: VODAFONE started mobile business in 1983 in our home market of England and now serves over 40 million customers. Our array of telecommunications and data network offerings provides a depth of technological knowledge and insight into emerging consumer trends. This breadth of services in so many markets around the world also allows our operations to exploit opportunities, synergies and our critical mass in order to maintain our leadership position. Our telecommunications and data infrastructure support offerings in the areas of mobile telephony (voice and video based multimedia), fibre-optic broadband networks, fixed-line services and radio broadcasting

24

Presence of VODAFONE a Cellular

The biggest merger over took place in the history of wireless telecommunication services. The first time ever, the Essar group joined hands for working together. In the year 2006 VODAFONE Mumbai and Delhi VODAFONE Cellular is committed to achieving total coverage. Its advanced Cellular network build up helps VODAFONE offer seamless coverage in over 1 towns and unsurpassed highways coverage across all its circle of operation. These include 23 districts from Andhra Pradesh, 53 cities across Madhya Pradesh, entire Gujarat, 400 kms of highway across 85 towns and cities. It is the first cellular operator in India to offer uninterrupted highway coverage across all its circle of operations. Cellular operates in Andhra Pradesh,

Chhattisgarh, Goa, Gujarat, Madhya Pradesh and Maharashtra

25

VODAFONE The Brand!

Brand Name Brand Person Brand Delivery Brand Presence ::::VODAFONE Ltd. ARUN SARIN World class Cellular Telephony with value Added Services In the state of Gujarat, Madhya, Bihar, Pradesh, Maharashtra, Goa, M.P., U.P., Andhra Pradesh, Chhatisgarh, Delhi, H.P. etc. Brand Colour Significances * The White background : * Red Colour * Red Colour Text * The VODAFONE Brand Launch

:Youth & Energy :Energy Innovation Solidarity ::-

:-

22th August, 2007 A media spent of Rs. 40-42 crores in T.V advertisements, Print ads, Murals, brand launch parties, P.R.Campaigns, in all a high decibel and Discussed launch.

26

In the Pipeline
The current period is a very crucial one for all the cellular operators in India, due to a simple reason of a cold cellular war being on, internally within the competitors as well as externally to be fought with the WLL and the TRAI. This being the gestation period for the WLL cellular operator to be in the market has to launch, innovate and improve their schemes on a more customer friendly based, so that their clientele is intact. In such a situation price crunches on outgoings, free incoming calls, free airtime, and other innovated and users-friendly value added services are the only options. To be intact at what VODAFONE Cellular is today, also requires carrying out any of the above options and thus the one major plan in the pipeline, coming in within 7-8 months is to exceed customer usage of cellular phones than landline users which presently is 10 crores, compared to landline users of 4 corers. Secondly to develop and synergies on such value Added Techniques that are customer friendly and beneficial to the society. Thirdly in the coming months they are planning to reduce the cost of airtime, so that there is a benefit to the users. A few more cell site launches, appointments of customers convenience center, Retailers and distributors are in the pipeline, which would be beneficial to all concerned.
27

Marketing Department
28

Contents
Sr. No. 1 2 3 4 5 6 7 Particulars Page No. Importance of marketing Department 27 Organization Chart 29 Marketing Yesterday & Today 30 Advertising 31 4 Ps of marketing 37 Market Share 43 Competitors 44

29

Importance of Marketing Department

Marketing is the focus point of all business activities because the objectives of all business enterprise are to satisfy the needs and wants of the customers. Production and purchase has no meaning unless a firm is able to market the goods and services. Nothing happens unless somebody sells something. Marketing is the distinguishing feature of business. A business is essential part from all other human organization by the fact that it markets the product or services. Marketing is the basic operative function of all business firms. It serves on the basis of business planning and generates revenue for the firm. Efficient marketing management is essential for the survival and growth of every enterprise. Marketing is a system of integrated business activities designed to develop marketing plans and programs leading to the satisfaction of customer wants. Marketing department represents an important functional area of business management efforts for the flow of goods and services from the producer to the consumers. Marketing department of the VODAFONE Cellular Limited is a crucial part of its organization. The company can achieve its subsidiary objectives along with the primary objectives with the help of marketing department. It not only helps the company to achieve the goals that are directly related to marketing department but also
30

helps in achieving the goals that are related to other departments of the organization. With the help of the marketing department VODAFONE Cellular as a company has not be successful in gaining the sales volume but also earned goodwill for itself. As a result of the efforts made by the marketing department VODAFONE Cellular is enjoying a prestigious position in the telecom industry.

31

Organization Chart
CMO (Chief Marketing Officer) -Bombay

DGM (Marketing) (Director General Manager) - Ahmedabad

Assistant Manager - Prepaid

Assistant Manager - Postpaid

Assistant Manager (Value Added Service)

Assistant Manager Outdoor Marketing

32

Marketing Yesterday & Today

Business is changing at the speed of thought literally, as across the globe, somewhere or the other; someone comes up with something that revolutionizes the entire concept of business, as it is understood then. To keep pace with these developments, marketing has become more intricate and scientific than ever before. Today no firm can afford to rest on past laurels and be complacent about its market. Competition is more intense and cutthroat than ever before, and the firm has to meet all these challenges, most in the form of direct or indirect marketing strategies. Yesterday was different, in the sense that firms that enjoyed a good market reputation did not need to market themselves to their consumers again and again. But today, times have changed. Keep competition poses challenges that have to met and countered, and the customers are more demanding than they were around 20 years back. Past achievements are no longer a companys claim to supremacy. Earlier, marketing was confined to the narrow scope of selling. But now, marketing is concerned with all activities aimed at finding wants and filling them. The mantra followed the world over is customer is the king. It is the customer alone who keeps the business going and provides employment to people. If the current trends were anything to go by, the future would only add to the misery of unprofessional or pedantic forms. Only firms willing and able to change according to changing market conditions and consumer demands would thrive in the market.
33

ADVERTISING
The best advertising is done by satisfied customers -Philip Kotler Advertising can be defined as mass paid communication of goods, services or ideas by an identified sponsor. It is paid communication because the advertiser has to pay for the space or time in which his advertisement appears in the recognized media such as news paper, magazines, radio, T.V., Cinema film, posters, etc. Advertising can create market for a new product. It is very powerful tool for the creation and retention of consumer demand. VODAFONE Cellular Limited spends more than 30% of its profit in advertisement. It uses almost all media for its advertisement. VODAFONE Cellular Limited does its advertisement through Lowe Lintas which is an advertising agency. VODAFONEs advertisement is such that it informs guides; protect buyers and helps in increasing the standard of living. VODAFONE Cellular Limited use following Medias for advertisement Print Media: It gives advertisement in each and every newspaper, magazines, and periodicals. The company also distributes calendars, cards during Diwali, diary, pens, clocks, key chains etc. to Retailers, customers.
34

 Posters: It uses printed posters which stick on the wall. Banners: Company provides banners to each and every Retailer and also to the Distributors. Hoarding: The Company has done the use of hoarding at the major point of cities in different parts of the country. Glow Shine Board (GSB): It is an electric board which is given to each and every Retailer.

35

Market Segmentation
What is market segmentation? Market consists of buyers and buyers differ in one or more respect. Market segmentation is a method for achieving from limited marketing resources by recognizing differences in the response characteristics of various parts of the market. In simple words market segmentation is nothing but just diving market into several groups. There are mainly four types of market segmentation. (1) (2) (3) (4) Geographic Segmentation Demographic Segmentation Psychographic Segmentation Behavioral Segmentation

For Vodafone They produce only agriculture products like ox operated drill, Tractor Operated Drill so for the company main segmentation of their product is agriculture products users farmers etc.

36

Channel of Distribution
It is a process through which the goods or consumer from the producers. Distribution decision relates with moving. Product available at a right place, in right time for the right people. Distribution channels are system of economic institution through which a producer of goods delivers them into the hands of their uses. After the production the producer has to take decision how to do selling and distribution their products. So, how a product reaches to the consumer from the producer is called Channel of Distribution.

Manufacturing or Production Direct Consumer Dealer Court of (Gujarat) Consumer

37

Pricing Policy
Pricing policy means to determination our product, at how much cost it can be sold. The pricing policy of company influences its sales to a large scale. Price is one element of marketing mix that produces revenues the other element of marketing mix is product cost. A wrong pricing decisions avoid effects of all right decisions related to products. When a unit take pricing decision they have to consider such factor like taxes, expenses, Govt. policy, Profit etc. In Vodafone Pricing is deciding as under: Raw material cost + Wages of labour + Accessories + Other expenses + Taxes + Profit = Price of a product.

38

After Sales Services

After sales services is the best part of the Vodafone. Because they arrange a special department for that service. Means when any customers buy a card of Vodafone after some days the after sales service department is contact to the customer and asking them if there any problems related to their product or not. In short we can say once they sold their products to the customers they are keep in touch with their consumers.

39

FOUR PS OF MARKETING MIX

Marketing Mix of a Company includes 7 Ps of marketing. But generally they can be precisely describe under four major heads viz. Product mix, price mix, promotion mix, and place mix. Product mix answers the question as to what, when, how, how much etc. to produce. Price mix answers the question as to the produce good should be sold at what price. Promotion mix suggests the promotional activities that have to be undertaken. While place mix describe distribution modes and channels

1. Product Mix: The product is the most tangible and important single component of the marketing programme. Product said to be the heart of the marketing mix. The whole marketing programme is based on the product. It is said that nothing happens in our economy unless there is a sale or purchase of product. Product is the sole of all over marketing activities without a producer; marketing cant be imaged through which the transaction takes place. It gives life to all marketing programme. So main responsibility of management should be to know its product well in the book of Philip Kotler there is a sentence The first
40

commandment in marketing knows their consumer the second is to know their product.

It is not necessary that product must be physical it may be service product and other but main theme is that it is capable of delivering satisfaction of wants or need. In VODAFONE Cellular Limited, there is only one product i.e. sim card through which company provides services. What is Sim Card? The mobile phone is widely used in the markets now a day. It is just like a necessarily of a businessman or any kind of professional person. A sim card is one type of card which is fixed on the backside of a mobile phone. Any sim card service providing company in India is not manufacturing sim card but they import the sim cards from different countries. The VODAFONE Cellular Limited Company imports the mobile sim card from Switzerland. 2. Price Mix: Pricing the product is one of the important elements in marketing mix. It is the most critical decision in marketing management, so it is said that Success or failure of business depends upon its product price policy. Price is the exchange value of the goods or services in terms of money. The exchange value of product is called price. The decision regarding pricing must be taken after considering every aspect of business and while fixing the
41

prices, not on profit but also various factors i.e. social responsibility also to be considered.

VODAFONE Cellular Limited determines the price in such a manner as to offer a reasonable amount of profit to the manufacturer, a reasonable remuneration to the middlemen and the maximum satisfaction to the consumers. It has found that a price kept by VODAFONE Cellular Limited is much lower and quite reasonable in comparison to its competitors. A company can pursue any of the six major objectives by its pricing which are as follows: 1. To survive in the market. 2. Maximize current profit 3. Maximum current revenue 4. Maximum sales growth. 5. Maximum market skimming 6. Product quality leadership. VODAFONE has adopted many methods for pricing which are as follows: Penetration Pricing: This method is generally adopted at the time when the company has just entered into the market or newly started company

42

uses this method. In this method the product price is lower then the substitutes in the market through which customers are attracted.

Psychological Pricing: Sellers should consider the psychology of prices in addition to their economics. Many sellers believe that the prices should end in odd numbers for such company prices dominate in the newspaper all in odd numbers i.e. product price is Rs. 299 in stead of Rs. 300. Skimming Pricing: This method by which company can attract the customer mostly this pricing methods is always used in the time of festival such as Diwali offer, Navratri offer etc. VODAFONE takes benefit of all festival because they placed skimming price for short period on Navratri and Janmastami. 3. Promotion Mix: Promotion plays an important role in stimulation of demand and sales of the product. Promotion is basically communication process by which producer of the product or service draw attention of the consumer for prospective consumer towards their products. Sales Promotion: Sales promotion is a key ingredient in marketing campaigns. Where advertising offer a reason to buy, sales promotion offers on incentive to buy. Sales promotion includes tool for consumer
43

promotion (coupons, etc.) Trade promotion (price-off etc.) etc Sales promotion tools are used by most organization, including manufacturing, distributors, Retailers trade associations and non profit organization.

4. Place Mix: Place mix is also known as Distribution Mix. This stands for the various activities the company undertakes to make the producer easily available to the customer. In todays economy the producer customer are separated by vast distances. Place mix is nothing but marketing activities in which movements or flows of goods or services are there from primary producer to ultimate consumer. It includes Distribution Channel: Distribution Channel: Channels of distribution generally depend upon the nature of product, volume of sales and trade practices adopted. The set of marketing institutions participating in the marketing activities which involves the movement of all goods and services from the primary producer to the ultimate user or consumer is called the distribution channel. In modern era, with the increase in size and production of the unit, it is very difficult to sell the products directly to the consumer so they have to adopt, distribution channel with middlemen like wholesalers, distributors, Retailers, etc.

44

DISTRIBUTION CHANNEL
Company

Distributor

Dealer

Salesmen

Retailer

Customer

45

MARKET SHARE IN GUJARAT

Company VODAFONE IDEA AIRTEL RELIANCE BSNL TATA INDICOM Coverage (%) 30 15 20 10 15 10

46

COMPETITORS
Poor firms ignore their competitors; average firms copy their competitors; winning firms lead their competitors. Today in this competitive world VODAFONE has got many competitors which are as follows: AIRTEL IDEA BSNL RELIANCE TATA INDICOM

47

Finance
48

Department
and objectives.

INTRODUCTION

Something must be direct the how of economic activity and facilities its smooth operation. Finance is the agent that produces this result. Nature of financial management refers to its functions, scope

Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. In modern times finance is the life-blood of the business. No matter, whether the business is big or small financial is the equally important. The financial resources must proper planned and control in order to achieve the best out of available. So, financial resources should be very properly.

49

ORGANIZATION CHART
Vodafone CHIEF EXECUTIVE OFFICERS

FINANCE MANAGER

ACCOUNTANT

ASSISTANT ACCOUNTANT

50

FINANCIAL PLANNING
Generally, financial planning means deciding in advance, the financial activities are to be carried on to achieve the objective of the firm. In broader sance, in the words of Walker and Boughn as; financial planning includes the determination of firms financial objectives, formulating and promulgating financial polices and developing and procedures. Financial planning is necessary to achieve both long term and short term objectives. A sound financial planning includes how much need of funds for both the terms. Then from where they are to be received and utilized. Vodafone would evaluated different proposal placed before them and selects the best out of them. It estimates how much capital is going to be required for various proposals and how much is the return on the capital employed. The financial manager lays down the estimate on the capital of cash per week, per month and per year.

51

CAPITALIZATION
At the time of incorporation of any business, it is the first problem before the promoters to decide how much capitalization should be made in a business. The amount of capital of any time should not exceed nor less than the amount required. So, it is necessary to have proper capitalization for the success of the enterprise. But Gerstenberg defines it as; The total accounting value of all capital regularly employed in business, it includes owners capital, borrowed capital and any other sources. Thus term includes;
1. The value of ordinary and preference shares

2. The value of all surplus earned and capital 3. The value of bonds and security still not redeemed 4. The value of long term loans However the modern view includes short term funds or liabilities under the firm. It should be properly capitalized. Vodafone issue shares. So, all these terms do apply.
52

CAPITAL STRUCTURE
Capital structure is the permanent financing of the firm represented by long term debt, preferred stock and net worth. Capital structure refers to its capitalization. Company procures funds by issuing various types of security i.e. ordinary shares, preference shares, bonds and debentures. Before issuing securities the unit should decides what kind of securities should be issued? A balanced capital structure means and ideal combination of ownership capital and borrowed capital. Vodafone issues shares and it has reserves or surplus. The firm has taken loans from financial institutes. So capital structure of the firm consists ownership capital as well as borrowed capital.

53

FINANCIAL LEVERAGE
Financial leverage is also known as trading on equity. In other words, the effect on earning by the use of fixed cost securities is called financial leverage. It is the ratio of return on share holders equity and the net rate of return on total capitalization. The degree of financial leverage can be calculated at any level of operating profits as follows. Financial Leverage = Operating Profits or E.B.I.T. E.B.I.T. Interest or P.B.T. Financial leverage is followed by this firm as shares and debentures are issued.

54

FINANCIAL POSITION
PERTICULERS
Capital Reserves Loan borrowing TOTAL

Rs.
3,460,811,000 1,481,000 0000000000 3,462,292,000

Investment in fixed assets Investment in current assets Total investment

Rs. 5,54,754,000 Rs. 1,69,423,000 Rs. 7,24,177,000

55

56

Personnel Department
INTRODUCTION
For survival growth of organization it requires better combination of Men, Money, Machine and Material. From these elements Men is most difficult and challenging element. In general sense, management of human resources in an organization is called personnel department. In present Personnel department is essential due to complexity of HRM in an organization. Personnel can be defined in the words of Pigors and Hynes as Personnel management is method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to organization. In the case of Saurashtra Rachanatmak Samiti it has personnel; manager to manage the HRM of their sector. Thus, it has a well established personnel department for managing their workers and employees.
57

ORGANIZATION CHART
Vodafone

BRANCH MANAGER

PERSONNEL MANAGER

STAFF MEMBER

TRAIN AGENT

AGENT

NEW COMER

58

MEN POWER PLANNING

Men power planning is primary and essential function of HRM. It is initial stage to get right type and right number of personnel in an organization. As human resources is most valuable among all capitals. It should be planned carefully and systematically. In the words of Coleman Bruce Men power is the process of determining men power requirements in order carry the integrated plans of the organization. In regard to personnel department of Vodafone is very conscious because it is through out depended on HRM. It takes into account the facts and of present work forces on the basis of such available information of HRM. 1. TOTAL EMPOLYEES: 2. SALARISE PERSON: 3. 3 SALARISED AGENT:
59

165 (near about) 25 (near about) 140

4. FOREMEN:

12 (near about)

Men power planning thus enables the organization to make additions or deductions in about employees. For that it makes both short term and long term men power.

RECRUITMENT, SELECTION AND PLACEMENT

1) RECRUTMENT: The following factors affecting recruitment; a) Size of organization. b) The employment condition in the community where the organization is located. c) Working condition wage and salary and other benefits. In Vodafone they have usual three methods of recruitment; 1. Direct method 2. Indirect method 3. Third party If they want highly learned employees than they, apply indirect method. And if they want semi skilled labour than they, ask to their worker to ask their relative to apply for job.

60

2) SELECTION:

Second stage after having adequate number of application for particular job is selection. In short, it refers to choice best condition out of available. In fact selection process begins with initial screening then follows different types of test and interviews. The personnel department of Vodafone follows a perfect selection procedure. After receiving application, first of all takes preliminary interview and employment test. Personal interview and check reference of applicants. More ever they give importance more to mentally fitness of person. Lastly they would prepare list of final applicants who have crossed above hurdles and suitable for jobs. Finally they have been given appointment letter.
61

As far as unskilled labors are concerned they take advice from present workers who can suggest the names of their friends and relatives for selection in job.

3) PLACEMENT:

Once a candidate select for a job he should be placed on suitable job. Placement can be described as the determination for the job to which an acceptable is to be assigned and his assignment to his job. Sometimes employees are put on probation period. In Vodafone sometimes selected sub ordinates employees are placed job for two or three months depended on nature of the job while there would be no testing in case of experienced and salaries.

62

TRAINING AND DEVELOPMENT PROGRAMME

Training can be described as learning sequence of programmed behaviors. It increases knowledge and skill for doing a particular job. While development covers not only improve the job performance but also bring growth of personality maturity and self actualization. 1) ON THE JOB: In this method employees are coached and instructed by senior workers. Here, they have given basic training for fifteen days with basic salary and adopt this method of training mostly for operational level. 2) OF THE JOB:

63

In this method training is a part from job place. In recent years it becomes more popular so, trainees get training in a classroom of company by special instructor. It includes seminars, conferences, case studies etc. Vodafone using this method only for top level and middle level.

WAGES AND SALARY ADMINISTRATION

As every factor employed in a enterprise gets rewards for his combination among this factor human resources get contribution in form of monitory terms. So, proper administration of their wages and salaries become a necessity. The priority objective of wage and salary administration is to establish salary structure. Second one is to maintain acquisition of labour cost structure. Sound wage policy should contain both the objective. It is affected by factors like demand and supply of labors, labour rate in market etc.

64

Here, in Vodafone follows time wage system which is most common and oldest system? Under this system workers are paid according to work done by in certain period. On an average organization Pays 40000-45000 to Sales manager and ass. Manager is paid near about 60000-100000 and agent are paid off commission cum incentive. Vodafone pays total salary at the end of month and any worker can withdraw half of salary.

PERSONNEL RECORDS
A record is a piece of writing with provides ready information and preserves evidence for future use. Therefore personnel record means maintenance of information regarding personal. Personnel record helps personnel manager in decision making. He can decide the demand and supply of personnel in an organization. In Vodafone personnel maintain files of each and every employee for their presence, leave, bonus, promotion, performance, salary etc. is mention. The data regarding each employee is fed in to computer and store for future reference.

65

TIME KEEPING SYSTEM

Every company has to keep watch on employees weather they come in time or not. This directly affects to the productivity of each employee and so production. So, it becomes necessary to get enough work from workers in proportion of their wages and salaries. In Vodafone office time is as under. SHIFT 1 2 WORKING TIME 9 a.m. TO 1p.m. 2 p.m. TO 6 p.m.
66

HOURS 4 4

RECESS Half An Hour Half An Hour

EMPLOYEE BENEFITS AND SERVICES

Employees benefits and services provided by any company is very useful not only from the view point of employees, but also from company. The requirement of providing such kind of facilities and services arises from social responsibilities. This is an important tool for any company to motivate its employees; 1. BETTER WORKING CONDITION : The management of this organization has given careful attention towards proper working condition for its employee. It

67

includes ventilation, drinking water, light, air etc. a special care is taken for better working condition as possible as best. 2. BONUS AND FESTIVAL: Bonus is given to each employee during Diwali. More over all are to be given sweets on festival like Dashera, Diwali as a gift. 3. PROVIDENT FUND SCHEME: As per government rules, provident scheme compulsory for organization, for that 8% of basic pay of employees and same amount by company paid to employees account. After retirement the amount accumulated to provident fund account is given to him as per rules.

4. R FACILITIES:

OTHE

Saurashtra Rachanatmak Samiti has given residential facilities to the employees. In addition to it, benefits like medical allowance, leaves and facilities like canteen, safety equipment, are provided to them by Vodafone. The management of VODAFONE is very conscious for welfare of its employees. They think that more ever they spent on employee is one kind of investment. It will be benefited through
68

HRM. The reason why they spent is benefited by increased productivity, quality and loyalty of workers.

69

Future Plan
Future Plans
VODAFONE Cellular Limited has only one future plan and that is to excel in its field and conquer the market. Today there are more then 3 crores cellular phone users and the people who use the land line are around 7 crores. There is a huge gap to be bridged and the only and future term plan of VODAFONE Cellular Limited is to exceed the land line users.

70

Secondly their long term plan is to be consistent in the policy adopted by them for the purpose of outright excellence in their field. The policy of quality coverage, subsistent rates and a genuine customer convenience and care are high in standards presently and VODAFONE Family feels that if these are the factors that are maintained at a consistent level then the company will be able to meet all its future plans and goals. Thus VODAFONE Cellular Limited has no plans in particular except to lead the market in the crucial times of Cellular wars, and out rightly exceed the usage of land lines by wireless cellular telephones and maintain their standard of quality coverage.

71

SWOT
72

Analysis
STRENGTHS: -

SWOT ANALYSIS

1. DISTRIBUTION NETWORK: VODAFONE Cellular has a wide spread network and to completely cover such network, it has a predetermined channel which covers every nook and corner of the city so that all masses are covered. With distribution network and an equal capacity to canalize makes VODAFONE Cellular strong in its own. 2. LIVE WIRE PROFESSIONALS: For every job specification in VODAFONE Cellular Limited there is employed a live wire professional who is best suited to his position and responsibility when it comes to skill, talent, qualification and perfection. Having people with such zeal and enthusiasm, professionalism comes as strength. 3. PROACTIVE CUSTOMER CARE: Not only VODAFONE Cellular Limited is strong from within but when its comes to external forces it proves its worth. Fabulous customer commonsense centers are established to take care of any issue that may come as a problem to the mass proactive customer care is one of the assets of the company while telecustomer care comes as an icing to the cake.

73

4. TELECOM FOOTPRINTS: VODAFONE Cellular though establish recently has set its foot in major cellular markets, be its markets of masses or geographical markets. The important states of India all have VODAFONE Cellular footprints with them. This is strength indeed. 5. PROMOTERS CORPORATES: SYNERGY BETWEEN

First time in the corporate history ever, has the two big heads joined hands for a merger with the telecom giant VODAFONE corp., U.S.A. This is strength itself. PARENT VODAFONE i.e. VODAFONE is among the top ten brand of the globe, which process as strength to organization.

74

WEAKNESSES: 1. FUNDAMENTAL CASHES: As said earlier, corporate giants across the globe Tata, Birla, AT&T have joined hands to form VODAFONE Cellular Limited. They all being supreme in their field, have their own perceptions, these perception ideas and means are found to clash when they meet. Thus this may be proved as a hindrance to the company and comes out as a weakness. 2. DELAY IN DECISION MAKING: As the three partners are huge corporate, the flow of decisions, actions and understanding are channelized through a long route. This may cause delay in any decision to be taken and which might not be good for the company. 3. TELECOM FOOTPRINTS: VODAFONE Cellular is only present in 7 states out of highly numbered 26 states which show that geographically VODAFONE Cellular is not able to cover entire state. This leaves behind weak telecom footprints of the company.

75

OPPORTUNITIES: 1. 2. 3. Lowest telecom Density in the world. Lowest call charges in the world as well as in India. Opportunity to outsmart the landlines connections, through the usage of Mobile telephony. 4. 5. Growth possible through Acquisition. VODAFONE Cellular is established only in 16 states. It has still got a scope to establish itself in the remaining state and hold it foot.

76

THREATS: 1. VOLATILE REGULATORY MARKET: Day in day out there is various rules and regulations that are coming in the market and which on highly volatile in nature. Price fluctuation, are one of them competitors come in and go out in a jiffy, and in such a situation to hold an upright place is difficult in its even words and thus proves a threat to excrescence of companies. The same has been observed by VODAFONE Cellular. 2. PREDATORY OPERATORS: PRICING FROM WILL

With ongoing Cellular wars and advent of WLL, Cellular operators are now into an artificial cover of threat. The threat of pricing policies, threat of customers care etc. is going high as WLL have been setting its foot with predatory pricing policies to unchannelize Cellular operators. 3. EXPANSION INVESTMENT THRET: In order to survive in the market, VODAFONE Cellular has to update its technologies, and this all expansion requires huge cost pull expenditure and this increase costs in leaps and bounds.

77

Suggestion
78

SUGGESTION
The highly professionalized management and totally modern marketing approach are the basic key factors behind the success of VODAFONE Cellular Limited. The management of VODAFONE Cellular Limited is very perfect and nice. As per companys perfect management there is no need to give any suggestion to the company but I observed that each and every person in this company is hard working which one of the positive points of this company is. According to my observation, company spends lots of amount on advertisement.

79

80

Contribution

81

CONTRIBUTION
VODAFONE Cellular Limited at each and every step of its development has tried to fulfill its social responsibility along with its objectives of profit. It has been following the policy and principle which ensure economic development. During the time of earthquake in Gujarat VODAFONE Cellular Limited has constructed up many mobile PCOs.

82

83

My Observation

84

My Observations
VODAFONE Cellular Limited made me observe many things while on my survey of 100 Retailers in different areas. There were various reactions and gestures which, I observed through people. Few are some of them: AMBIENCE & ATMOSPHERE: Retailers, I visited were friendly and helpful. As it progressed with my survey they were highly co-operative and anxious to help me out with my findings. PRICING STRUCTURE: Retailers insisted on a consistent stable and substantiate pricing policy as they were really frustrated with the constantly changing price in the mobile world. PERSONAL APPROACH: Retailers always want the executives coming to their places and making them understand about the new scheme and plans, which are going to enter market. SALESMEN SERVICE: Retailers are quite satisfied with the salesmen service. Whenever the retailers are in need of SP, RV, etc. when they make a single call to salesmen then order will be made available by salesmen with in an hour.

85

86

Conclusion
CONCLUSION
VODAFONE Cellular Limited is one of the leading service providers present today in the state of Gujarat. It has been indeed a pleasure working for VODAFONE Cellular Limited, though as a part of my training. I have conducted my project on Retailers Network Management of VODAFONE Cellular Limited. As student trainees, I have learnt immensely. VODAFONE family is very co-operative, friendly as well as professional and practical in their approach. They have been guiding me whenever I viewed an obstacle. They have been of great help when it came to providing information to me about themselves and their organization. I wont be exaggerating, if I say that this project has helped me develop me as a person because while conducting my survey I have met 100 people whose nature was different from one another and each meeting in itself have been a memorable experience. I would also like to say that this project has made me known the realities that exit in the market today. I have also known the technicalities involves while finding the right sample for my survey.

87

This project I have learnt a lot about Survey etc. which has me approach the real world in quite an extent. Also this project has helped me have a more deepened knowledge about the cellular phone market, on going cellular wars etc.

VODAFONE Cellular Limited is a company who has grown by leaps and bounds in these two years and has emerged itself into a new beginning. Under the report, I have researched about Retailers of VODAFONE Cellular Limited the findings of my survey say that VODAFONE today is the leader in the market and is still growing. VODAFONE Cellular has got a very bright future as the demand for cellular services are increasing day in and day out. Thus I conclude my report wishing company all the very best for their future and I would like to thank all people concerned who helped me make this project come true.

88

Bibliography
89

BIBLIOGRAPHY
1. Marketing Management: -

By Philip Kotler

2. Web site:

www.vodafone.in www.vodafone.com

90