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A comparative study on various plans and offers provided by VODAFONE and AIRTEL and consumer response towards these plans. A case study of Allahabad city
MASTERS OF BUSINESS ADMINIATRATION
SUBMITTED TO: SUBMITTED BYMRS. Monika Mehrotra Kuldeep SinghFACULTY GUIDE
A comparative study on various plans and offers provided by VODAFONE and AIRTEL and consumer response towards these plans.
A case study of Allahabad city
MASTERS OF BUSINESS ADMINIATRATION
SUBMITTED TO: SUBMITTED BYMRS. Monika Mehrotra Kuldeep Singh
Enrol no. 8NBAH042
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A comparative study on various plans and offers provided by VODAFONE and AIRTEL and consumer response towards these plans.
MASTERS OF BUSINESS ADMINIATRATION
SUBMITTED TO: SUBMITTED BY: MRS. Monika Mehrotra Kuldeep Singh
ol no. 8NBAH042
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CERTIFICATE This is to certify that Mr.Kuldeep Singh assigned the research project on “A comparative study on various plans and offers provided by VODAFONE and AIRTEL and consumer response towards these plans A case study of Allahabad city”. He has submitted this project report in accordance with the guide lines. To the best of my knowledge this is his original work and not submitted else where for reward of any other degree or any diploma. DATE…… PROJECT GUIDE MRS. Monika Meharotra
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TABLE OF CONTENTS
S. NO TOPIC
1- ACKNOWLEDGEMENT 4
2- OBJECTIVE 5
3- STATEMENT OF PROBLEM 6
4- INTRODUCTION 7-10
5- INDUSTRY PROFILE 11-15
6- COMPANY PROFILE 16-34
7- LITERATURE REVIEW 35-37
8- RESEARCH METHODOLOGY 38-40
9- LIMITATION 41-41
10- CONCLUSION 42-42
11- BIBLIOGRAPHY 43-43
12- ANALYSIS AND INTERPRETATION 44-
13- FINDING 49-51
14- DISCUSSION OF THE FINDING 52-55
15- SUGGESTION 56-57
16- QUESTIONNAIRE 58-59
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ACKNOWLEDGEMENT An individual cannot do project of this scale. I take this opportunity to express
my acknowledgement and deep sense of gratitude to the individuals for
rendering valuable assistance and gratitude to me. Their inputs have played a
vital role in success of this project.
I express my sincere thanks to my project guide Mrs. Monika Meharotra her
generous support, constant direction and mentoring at all stages of training.
I take this opportunity to thank all dealers, customers who spared their precious
time to provide me with valuable inputs for project without which it would have
not been possible.
I firmly believe that there is always a scope of improvement. I welcome any
suggestions for further enriching the quality of this report.
Kuldeep Singh
Enroll no. 8NBAH042
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OBJECTIVES OF THE STUDY
A comparative study on various plans and offers provided by VODAFONE and AIRTEL and consumer response towards these plans A case study of Allahabad city
OBJECTIVE:
1. How people of different age group respond to ADVERTISEMENT. 2. Positioning strategies use by telecom companies and their impact on
customer. 3. To find out relative customer perception. 4. To find out which telecom company have good plans and what type of
plans subscriber like. 5. Role of tariff plans on the buying behavior of the customer.
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INTRODUCTION
Customer
A customer is an individual who purchase or has the capacity to purchase goods
and services offered for sale by marketing institutions in order to satisfy personal or
household needs, wants or desires.
According to a statement made by Mahatma Gandhi, ‘customer refers to the
following, “A consumer is the most important visitor on our premises. He is not
dependent on us. We are dependent on him. He is not an outsider to our business. He
is part of it. We are not doing him a favour by serving him. He is doing us a favour
by giving us an opportunity to do so”.
So customer is like the blood of our business and also a satisfied
customer is a word of mouth advertisement of a product / services.
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CUSTOMER SATISFACTION
Every human being is a consumer of different produces. If there is no
consumer, there is no business. Therefore, consumer satisfaction is
veryimportant to every business person.
According to Philip Kotler consumer satisfaction is defined on, “personal
feeling of pleasure resulting from comparing a product’s pursued performance
in relation to his /her expectations”.
Consumer attitude measurements are taken on either potential buries or
existing client’s buries in order to identify their characteristics. Why should the
competent market engineer conduct consumer research? Consumer’s surverys
can provide the researcher with a wealth of information, valuable of the
marketing function.
Detailed information regarding the customer in a market will provide the
basic platform for all marketing decisions. Marketing decision maker needs
descriptive information about the total potential unit and dollar sales in each segment.
Perhaps the most important one is that a seller need to be aware of the relevant
objective and need of consumer and how their objectives might best be served by the
products
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MARKET
The term market is derived from Latin Word ‘Mercatus’, which means ‘to trade’ that is purchasing and selling of goods. It also means merchandise truthic place of business. According to Pyle, “Market includes both place and region in which buyers and sellers or in free competition with one another”.
MARKETING
Marketing includes all the impacts involved in the exchange process of
transferring the possession and ownership of goods or services from the
producer to the ultimate consumer’s. MARKETING FORMULA a. The foremost step is business aims at profit.
b. For profit making he can sell the products.
c. For selling the product he should create customers.
d. For creating the customer’s, customer’s needs of preferences to be identified
and satisfied.
e. To satisfy the customer’s new product to be produced.
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Marketing is trying to learn,
�Who buy the products or services?
�How do they buy?
�When do they buy?
�Where do they buy?
�Why do they buy?
�How often they buy?
It is otherwise called understand and predict human actions in their
buying role. A marketer is act as consumers while them purchasing any goods
/services, and try to market that product to an ultimate consumer. So, marketing is
starts with consumer and ends with consumer.
So, today’s market is called on consumer market. It can be defined on, “All the
individuals and households who buy goods and services for personal
consumption”.So, the consumer satisfaction is get more importance in the
marketing functions.
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Importance of customer satisfaction
The needs to satisfy customer for success in any commercial enterprise is very obvious. The income of all commercial enterprise is derived from the payments received for the products and services supplied to its customers. If there is no customer there is no income and there is no business. Then the core activity of any company is to attract and retain customers. It is therefore no surprise that Peter Drucker the renowned management Guru, has said “to satisfy the customers is the mission and purpose of every business”.
Satisfaction of customer is essential for retention of customer’s and for
continuous sales of the products and services of the company to customers. This
establishes the needs for and the importance of customer satisfaction. The
satisfaction of consumers is different from one to another. Became, each
consumer has the different behaviour in their life. So, the marketer satisfy the
consumer, he must very well know the behaviour of consumer.
1.4.Consumer behaviour:
The term consumer behaviour may be defined as the behaviour that
consumer displays in searching for purchasing, using, evaluating, producing, services
and ideas which they expect will satisfy their needs. In other words, “It is a study of
physiological, social, physical, behaviours of all potential customer as they become
aware of evaluation, purchase and consumption and tell other about products and
services”.
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INDUSTRY PROFILE- Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world with an addition of 9- 10 million monthly subscribers. The Department of Telecommunications has been able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. India has emerged as a major base for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. As a result common man today has access to this most needed facility. The reform measures coupled with the proactive policies of the Department of Telecommunications have resulted in an unprecedented growth of the telecom sector. According to TRAI, by the end of February, the total number of subscribers had reached 413 million. Of this, 91% were mobile phone subscribers. The rising number of subscribers has pushed the tele-density to 35.62% showing a stupendous annual growth of about 50%, one of the highest in any sector of the Indian Economy. Also industry estimates show that telecom industry in India will witness a compound annual growth rate (CAGR) of 26% to reach 3, 44,921 crore by 2012. It is set to generate employment opportunities for close to 10 million. India’s telecom sector has shown massive upsurge in the recent years in all respects of industrial growth. From the status of state monopoly with very limited growth, it has grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the people of India. This changing phase was possible with the economic development that followed the process of structuring the economy in the capitalistic pattern. Removal of restrictions on foreign capital investment and industrial de-licensing resulted in fast growth of this sector.
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At present the country’s telecom industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone companies were present, fixed landlines were popular in most parts of the country, with government of India setting up the Telecom Regulatory Authority of India, and measures to allow new players country, the featured products in the segment came in to prominence. Indian Telecom sector, like any other industrial 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 make use of advanced technologies like GSM, CDMA and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers. The huge potential offered by the untapped rural market will help push growth for telecom operators in the years to come. At present, rural India accounts for just 27% of the country’s cellular base, though it constitutes 70% of the population.
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Mobile Subscriber Base in India
Mobile Subscriber Growth Rate
GSM Subscriber in India
Mobile Subscriber Base in India
Mobile Subscriber Growth Rate
GSM Subscriber in India
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CDMA Subscriber Base in India
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COMPANIES PROFILE AIRTEL
AND VODAFONE
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BHARTI AIRTEL Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular
service provider in India, with more than 110 million subscribers as of 2009. With this, Bharti
is now the world's third-largest, single-country mobile operator and sixth-largest integrated
telecom operator. It also offers fixed line services and broadband services. It offers its
TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The
company also provides telephone services and Internet access over DSL in 14 circles. It also
acts as a carrier for national and international long distance communication services. The
company has a submarine cable landing station at Chennai, which connects the submarine
cable connecting Chennai and Singapore.
The businesses at Bharti Airtel have always been structured into three individual strategic
business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services.
The mobile business provides mobile & fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service,
Airtel Digital TV. Shahrukh Khan is the brand embassador of the mobile company and
Kareena Kapoor and Saif Ali Khan are the brand embassadors of the DTH company. The
company provides end-to-end data and enterprise services to the corporate customers through
its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles,
VSATs, ISP and international bandwidth access through the gateways and landing station.
Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base,
behind China Mobile and China Unicom. In India, the company has a 24.6% share of the
wireless services market, followed by 17.7% for Reliance Communications and 17.4% for
Vodafone Essar. In January 2010, company anonced that Manoj Kohili, joint managing
director and chief executive of Indian and South Asian operations, will become the chief
executive of the international business group from 1st of April 2010. He will be overseeing
Bharti's overseas business. Deputy Chief Executive Sanjay Kapoor will replace Mr. Kohli
and will be the CEO with effective from April 1 2010
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Brands
Airtel
Airtel is a brand of telecommunication services in India, Bangladesh and in Sri Lanka
owned and operated by Bharti Airtel. It is the largest cellular service provider in India in
terms of number of subscribers. Services are offered under the brand name Airtel: Mobile
Services (using GSM Technology), Broadband & Telephone Services (Fixed line,
Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise
Services (Telecommunications Consulting for corporates). It has presence in all 23 circles
of the country and covers 71% of the current population (as of Financial Year 2007).
Airtel has also launched 16Mb/s broadband plans in India, making it the first ISP to do so.
Airtel Sri Lanka
In December 2008, Bharti Airtel rolled out third generation services in Sri Lanka in
association with Singapore Telecommunications. SingTel is a major player in the 3G
space in Asia. It operates third generation networks in several markets across Asia.
Airtel's operation in Sri Lanka, known as Airtel Lanka, commenced operations on the
12th of January 2009.
Airtel in Bangladesh
In January 2010, it was announced that the Bangladesh Telecommuncations Regulatory
Commission (BTRC) of The People's Republic of Bangladesh had given Bharti Airtel the
go ahead to acquire a 70% stake in the Bangladesh business of Abu Dhabi based Warid
Telcom. The latter had till date invested a total of $600 million, with plans to bring their
Bangladesh investments to the $1 billion mark. Airtel's 70% stake in the company is said
to be at a cost of an initial $300 million.
Touchtel
Until September 18, 2004, Bharti provided fixed-line telephony and broadband services
under the Touchtel brand. Bharti now provides all telecom services including fixed-line
services under a common brand "Airtel".
BlackBerry
On 19 October 2004 Airtel announced the launch of a BlackBerry Wireless Solution in
India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and
Research In Motion (RIM).
Digital TV
On 9 October 2008, Airtel joined the DTH bandwagon in India with Airtel Digital TV, a
Direct-to-Home Television service.
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iPhone 3G
The Apple iPhone 3G was rolled out in India on 22 August 2008 via Airtel & Vodafone.
Airtel & Vodafone have launched the newly released iPhone 3GS (16GB & 32GB) in
August 2009 in India.
Merger talks In May 2008, it emerged that Bharti Airtel was exploring the possibility of buying the
MTN Group, a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East. The Financial Times reported that Bharti was
considering offering US$45 billion for a 100% stake in MTN, which would be the largest
overseas acquisition ever by an Indian firm. However, both sides emphasize the tentative
nature of the talks, while The Economist magazine noted, "If anything, Bharti would be
marrying up," as MTN has more subscribers, higher revenues and broader geographic
coverage. However, the talks fell apart as MTN group tried to reverse the negotiations by
making Bharti almost a subsidiary of the new company.
In May 2009, Bharti Airtel again confirmed that it is in Talks with MTN and companies
have now agreed discuss the potential transaction exclusively by July 31, 2009. Bharti
Airtel said in a statement “Bharti Airtel Ltd is pleased to announce that it has renewed its
effort for a significant partnership with MTN Group".
Talks eventually ended without agreement, some sources stating that due to the South
African government opposition.
Sponsorship Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of
the Champions League Twenty20 cricket tournament. The tournament itself is named
"Airtel Champions League Twenty20."
Airtel 3G Airtel plans to launch the nationwide 3G services in India in the second quarter of 2010.
Subscriber base
The Airtel subscriber base according to TRAI - Telecom Regulatory Authority of India as
of February 2009 was:
Chennai - 2,133,677
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Delhi - 4,671,177
Mumbai - 2,791,963
Kolkata - 2,456,896
Madhya Pradesh - 7,690,609
Gujarat - 3,981,660
Andhra Pradesh - 8,892,353
Karnataka - 9,820,812
Tamil Nadu - 6,003,040
Kerala - 2,169,633
Punjab - 3,754,405
Maharashtra - 6,248,906
Uttar Pradesh (West) - 2,256,862 & (East) - 5,722,386
Rajasthan - 6,704,274
West Bengal & Andaman and Nicobar Islands - 3,501,560
Himachal Pradesh - 951,121
Bihar - 7,152,245
Orissa - 2,811,453
Assam - 1,448,389 & Other North Eastern States - 890,054
Jammu and Kashmir - 1,590,935
The total is 101,114,971 or 24.2% of the total 375,742,592 GSM + CDMA mobile
connections in India till February 2009; and presently the Number 1 operator in India. In
2009 Airtel also launched in Sri Lanka.
On the 9th of May, 2009 Airtel signed a major deal with Manchester United Football
Club. As a result of the deal, Airtel gets the rights to broadcast the matches played by the
team to its customers.
Prepaid plans-
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Andhra Pradesh 66 67 Assam* 21 23 Bihar 73 74
Chennai 64 69 Delhi 94 99
Gujarat 58 64 Haryana 64 65
Himachal Pradesh 64 66 Jammu & Kashmir 78 79
Karnataka 64 66 Kerala 64 67 Kolkata 64 67 Mumbai 64 69
Madhya Pradesh 64 69 Maharashtra 64 69 North East* 21 23
Orissa 68 69 Punjab 94 97
Rajasthan 70 71 Tamilnadu 64 69
Uttar Pradesh East 64 69 Uttar Pradesh West 64 69
West Bengal 64 67
* Validity is 90 days
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Turbo- Roaming Plan 98(Airtel/UE/GSM/19)
• ONE TIME CHARGES
o
Pulse Rate 60 sec
Price of Pack (Rs.) 98
Free Airtime on Pack (Rs.) Nill
Incoming Calls (Rs.) Nill while on home network; roaming IC charges 60p/min
• CALL CHARGES
o
Airtel GSM/CDMA Landline
Local Rates
50p/min 60p/min 60p/min
STD Rates 50p/min 60p/min 60p/min
• ISD
o For revised ISD tariffs ,click here
• SMS
o
Local 1
National 1.50
International 5
• OTHER DETAILS
o This Plan offers, Raoming OG Rate @ 60p/min A2A and 80p/min A2M. Roaming IC @ 60p/min.The main account validity of this plan is one year. For New Customer the Price of this plan is Rs 96 o
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Call Charges - Local Airtel to Airtel Rs.0.01/sec
Airtel to Mobile Rs.0.012/sec Airtel to Landline Rs.0.012/sec
Call Charges - STD
Airtel to Airtel Rs.0.01/sec Airtel to Mobile Rs.0.012/sec
Airtel to Landline Rs.0.012/sec
SMS Local (Per SMS) Rs.0.5
National (Per SMS) Rs.0.6 International (Per SMS) Rs.5.00
Free Mins 10500 sec / Month to any Local NetworkFree SMS 150 Local / Month
ILD / Roaming charges will continue at current tariffs and 60 sec pulse
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VODAFONE ESSAR
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 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 16 of the country's 23 licence areas.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 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 16 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 Ka Shing Holdings in Hutch-Essar for US$11.1 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.
PREVIOUS BRANDS:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its services under a single identity. The Company entered into agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007.
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On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile transition being unveiled today. Along with the transition, cheap cell phones have been launched in the Indian market under the Vodafone brand. There are plans to launch co-branded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world into India."
While there is no revealing the prices of the low-cost Vodafone handsets, the industry is abuzz that prices might start at Rs 666, undercutting Reliance Communications' much-hyped 'Rang Barse' with cheap handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset offers -- rather handset-bundled schemes for customers.
Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.
APPLE I PHONE 3G:
Vodafone has successfully launched the Apple iPhone 3G in India. It has been made available to its consumers from the 22nd of August. The phone's launch saw a big celebration at select Vodafone stores and Vodafone sponsored malls across the country.
GROWTH OF HUTCHISON ESSAR (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai
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(formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held licence applications for the seven remaining licence areas.
In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India - in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and 'West Bengal'
2005: Acquired BPL, another mobile service provider in India
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network.
Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline,
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Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers.
SUBSCRIBER BASE:
The Vodafone subscriber base according to COAI - Cellular Operator Association of India as of March 2008 was:
• Delhi - 3,216,769 • Mumbai - 3,451,567 • Chennai - 1,174,589 • Kolkata - 1,974,177
• Maharashtra & Goa - 2,610,389 • Gujarat - 6,010,594 • Andhra Pradesh - 2,601,458 • Karnataka - 2,850,346 • Tamil Nadu - 3,180,820 • Kerala - 2,001,133 • Orissa - 520772 • Punjab - 1,645,501 • Haryana - 1,282,208 • Uttar Pradesh (West) -2,858,429 • Uttar Pradesh (East) -3,508,355 • Rajasthan - 2,934,598 • West Bengal & Andaman and Nicobar - 2,825,310
The total is 44,126,243 or 22.93% of the total 192,355,939 GSM mobile connections in India till March 2008.
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VODAFONE 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 Macedonia Norway
Netherlands Serbia Slovenia
Northern Cyprus Sweden Switzerland
Portugal
Romania
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History:
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK cellular telephone network licences. 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 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. 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 speechmark 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 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.
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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 Bitė.
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 £405million, 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 Speechmark 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.
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Page 31 of 59
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 unexpectedl 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.
Page 32 of 59
PREPAID PLAN
Particulars
Initial one time charges MRP Net Talk value Validity Grace Period Monthly Rental (Rs)
Details of the recharge coupons
Denomination value (Rs) (inclusive of all taxes)
Net Talk value (Rs) Validity (days)
Pulse rate for local calls (sec)
Airtime charges per minute
Outgoing composite rate Local calls (Rs / min) Vodafone to Vodafone
To all mobiles in Uttar Pradesh / Uttarakhand**
To all landlines in UP East
To all landlines in UP West
STD calls (Rs / min)
To any GSM / WLL / Fixed
ISD calls (Rs / min)
US, Canada, South East Asia, Fixed landline to Australia, New Zealand & UK
SAARC, Africa, Mobile phones to Europe, Australia, New Zealand
PREPAID PLAN-
Prepaid
time charges Rs199 Rs.25 Rs 99
Net Talk value 10 0 0 Lifetime Lifetime Lifetime
NA NA NA
Monthly Rental (Rs) NA NA NA
Details of the recharge
Denomination value (Rs) (inclusive of all 199 25 99
Net Talk value (Rs) 10 0 0
Validity (days) Lifetime Lifetime Lifetime
Pulse rate for local calls 60 60 60
Airtime charges per
Outgoing composite rate
Local calls (Rs / min)
Vodafone to Vodafone 1 1 1
To all mobiles in Uttar Pradesh / Uttarakhand**
1 1 1
To all landlines in UP 1 1 1
To all landlines in UP 1.5 1.5 1.5
STD calls (Rs / min)
To any GSM / WLL /
1.5 1.5 1.5
ISD calls (Rs / min)
US, Canada, South East Asia, Fixed landline to Australia, New Zealand
6.4 6.4 6.4
SAARC, Africa, Mobile phones to Europe, Australia, New Zealand
10 10 10
Page 32 of 59
Rs 99 Rs 49
0
Lifetime Lifetime
NA
NA
49
0
Lifetime Lifetime
60
1
1
1
1
1.5
6.4
10
Page 33 of 59
Gulf, Middle East, UAE
Rest of Africa, Rest of Europe
Rest of World (excluding special countries & iridium/inmarsat calls)
Inmarsat/ Iridium Calls Incoming calls SMS Rates (Rs / SMS)
To any local number in UP East circle
To any national number outside UP East circle
International
All information service (like 56789, Yahoo, Indiatimes etc)
Whether carry forward of unused amount allowed
Other benefit
The ISD rates are applicable from 1st June 2009
* Premium countries: Sao Tome and Principe (Republic of), Diego Garcia, Cuba, Australian External Territories, Nauru (Republic of), Solomon Islands, Vanuatu (Republic of), Cook Islands, Tuvalu, Tokelau.
Gulf, Middle East, UAE 11 11 11
Rest of Africa, Rest of 15 15 15
Rest of World (excluding special
iridium/inmarsat calls)
45 45 45
Inmarsat/ Iridium Calls 550 550 550
Incoming calls Free Free Free
SMS Rates (Rs / SMS)
To any local number in UP East circle
99p 99p 99p
To any national number outside UP East circle
1.5 1.5 1.5
5 5 5
All information service (like 56789, Yahoo, Indiatimes etc)
3 3 3
Whether carry forward unused amount Yes Yes Yes
The ISD rates are applicable from 1st June 2009
* Premium countries: Sao Tome and Principe (Democratic Republic of), Guinea(Republic of), Diego Garcia, Cuba, Australian External Territories, Nauru (Republic of), Solomon Islands, Vanuatu (Republic of), Cook Islands, Tuvalu, Tokelau.
Page 33 of 59
11
15
45
550
Free Free
99p
1.5
5
3
Yes Yes
(Democratic Republic of), Guinea-Bissau (Republic of), Diego Garcia, Cuba, Australian External Territories, Nauru (Republic of),
Page 34 of 59
All Incoming calls
Outgoing calls
Local calls
STD calls
ISD calls
USA & Canada ;Landline numbers in Australia & New Zealand, UK, Germany &France; South East Asia SAARC; China; Russia; Egypt, South Africa, Kenya & Nigeria; Japan; South Korea; Mobile numbers in Australia, UK, Germany & France;
Middle East including UAE & Saudi Arabia
Afghanistan; Mobile numbers in New Zealand, Italy, Netherlands, Switzerland; Rest Of Europe; Rest Of Africa;
Bulgaria ; Pacific Rim Countries; North Korea
Premium Destinations
Satellite Calls
SMS
Outgoing(Local / National)
Outgoing(International)
Incoming
All National Networks Except Airtel
Rs / min
1.00
1.00
1.5
in Australia & New Zealand, UK, 6.40
South Africa, Kenya & Nigeria; Japan; South Korea; Mobile numbers in Australia, UK, Germany & France;
10.00
including UAE & Saudi Arabia 11.00
Afghanistan; Mobile numbers in New Zealand, Italy, Netherlands, Switzerland; Rest Of Europe; Rest Of Africa;
15.00
Bulgaria ; Pacific Rim Countries; North Korea 45.00
100
550
Rs / SMS
1.50 on Vodafone networks 3.45 on all other networks
3.45
Free
Page 34 of 59
All Airtel Networks
Rs / min
1.75
1.4
2.4
6.40
10.00
11.00
15.00
45.00
100
550
Rs / SMS
3.45
3.45
Free
Page 35 of 59
Page 35 of 59
LITERATURE REVIEW
Customer Satisfaction
The Value of Customer Satisfaction
By “Andrew Mennie” , General Manager eGain Communications EMEA
A brief literature would be of immense help to the researcher in gaining insight into selected problem. The researcher would gain good background knowledge of the problem by reviewing certain studies. A reference to these entire studies will be related in the contest of the shaping the present study.
Samuval, in his study found that most of the respondents consider, size, quality, price, instrument servicing are an important factors for selecting the handset of majority of the respondents are satisfied over the payment system, quality of services, coverage area, and attending the complaints.
Jha (2008), in his study analyzed that it is the youth which is the real growth
driver of the telecom industry in India. Considering this fact, the paper is an
attempt to give a snapshot of how frequently young people use their mobile
phones for several embodied functions of the cell phones. Data was collected
from a sample of 208 mobile phone owners, aged between 20 and 29. The study
sheds light on how gender, monthly voucher amount and years of owning
mobile phones influence the usage pattern of this device. Findings of the study
would be helpful for the telecom service providers and handset manufacturers to
formulate a marketing strategy for different market segments.
Kalavani (2006) in their study analyzed that majority of the respondents
have given favourable opinion towards the services but some problems
exist that deserve the attention of the service providers. They need to
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Page 36 of 59
bridge the gap between the services promised and services offered. The
overall customers’ attitude towards cell phone services is that they are
satisfied with the existing services but still they want more services to be
provided.
Kumar (2008), in their study titled “Customer Satisfaction and
Discontentment vis-a-vis BSNL Landline Service: A Study” analyzed that
at present, services marketing plays a major role in the national economy. In the
service sector, telecom industry is the most active and attractive. Though the
telecom industry is growing rapidly, India's telecom density is less than the
world's average telecom density as most of India's market is yet to be covered.
Seth et al (2008), in their study titled “Managing the Customer Perceived
Service Quality for Cellular Mobile Telephone: an Empirical Investigation”
analyzed that there is relative importance of service quality attributes and
showed that responsiveness is the most importance dimension followed by
reliability, customer perceived network quality, assurance, convenience,
empathy and tangibles. This would enable the service providers to focus
their resources in the areas of importance. The research resulted in the
development of a reliable and valid instrument for assessing customer
perceived service quality for cellular mobile services.
Kalpana and Chinnadurai (2006) in their study titled “Promotional Strategies of
Cellular Services: A Customer Perspective” analyzed that the increasing
competition and changing taste and preferences of the customer’s all over
the world are forcing companies to change their targeting strategies. The
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Page 37 of 59
study revealed the customer attitude and their satisfaction towards the
cellular services in Coimbatore city. It was found that advertisement play a
dominant role in influencing the customers but most of the customers are
of opinion that promotional strategies of cellular companies are more sale
oriented rather than customer oriented.
Page 38 of 59
Page 38 of 59
RESEARCH METHODOLOGY
METHODOLOGY
MARKETING RESEARCH
Definition of marketing research is approved by the board of the American
Marketing Association (AMA) is:
“Marketing research is the functions which links the customer and public
To marketer through information used to identity and define marketing
Opportunities and problems; generate define and evaluate, marketing
Actions, monitor marketing performance, and improve understanding of
Marketing as a process”.
Simply, marketing research is the systematic design, collection, analysis and
Reporting of the data findings relevant to a specific marketing situation
facing the company. Careful planning through all stages of the research is a
necessity.
A research may undertake any of three types of research investigations
depending upon the problem. These three types of research included.
• Basic research
• Applied research
• Designated fact gathering
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Page 39 of 59
COLLECTION OF INFORMATION
Data collection phase is generally the most expensive and the most phase to
error. Carry out the field work, collect data using the instruments, adjust the
Problem of not at homes, replaced, refusal to co-operate, biased or dishonest
answers.
ANALYSIS AND INTERPRETATIONS
The next to last step is to extract pertinent findings from the collected data.
The researcher edits, code, tabulate the collected data.
PRESENTATION OF FINDINGS
As the last step in marketing research the researchers present the findings.
The researchers have to arrange the researched result according to an
approved reporting format, get the report typed and bound, present the
copies of the report to the concerned authorities.
RESEARCH METHODOLOGY/ DESIGN
The methodology adopted for eliciting the data required for the study was
survey method. It is the overall pattern or framework of the project that will
dictate as to what information is to be collected, from which sources and by
what procedures.
RESEARCH METHOD
Research methodology must be classified on the basis of the major purpose
of the investigation. In this problem, description studies have been under-
taken, as the objective of the project is to conduct the market share study to
determine the share of the market received by both the company and it’s
competitors.
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Page 40 of 59
DATA COLLECTION
The information needed to further proceed in the project had been collected
through primary data and secondary data
PRIMARY DATA
Primary data consists of information collected for the specific purpose at
hand for the purpose of collecting primary data, survey research was used
and all the retail outlets sellers using different brands and their competitors
were contacted. Survey research is the approach best suited gathering
description.
SECONDARY DATA
The secondary data consists of information that already exist somewhere,
Having been collected for another purpose. Any researcher begins the
research work by first going through the secondary data. Secondary data
includes the information available with the company. It may be the findings
of research previously done in the field. Secondary data can also be collected
from magazines, newspapers, other surveys conducted by known research
agencies etc.
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Page 41 of 59
Limitations of the Study
Carrying the survey was a general learning experience for us but we also faced
some problems, which are listed here:
� The market of Telecommunication is too vast and it is not possible to
cover each and every dealer, manufacturer and seller in the available
short span of time.
� Generally the respondents were busy in their work and were not
interested in responding rightly.
� Respondents were reluctant to discover complete and correct information
about themselves and their organization.
� Most respondents were not maintaining proper knowledge of various
services provided by their company, so they were unable to provide exact
information.
� Most of the respondents don’t want to disclose the information about the
various other companies’ which they have experienced before.
� Some of the respondents were using the service first time of their
company and they were not able to properly differentiate among their
product.
� Due to human behavior information may be biased. Mainly in Tata case.
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Page 42 of 59
CONCLUSION
� After doing that all study we can conclude that yes the Gap exist there in
telecommunication industry. Consumers have a lot of expectations from their service
provider that are not performed or deliver by their companies. As we know that
consumer expect from Vodafone to improve its customer care service that can be
found busy most of the times.
� Now users of Airtel have rated it as a best company for value of money but still they
are not satisfied with some of company’s strategies. So this is the Gap between Airtel
users and company performance.
� Then we have example of Vodafone. Users of Vodafone are not satisfied with
company customer care service as it is a difficult process because one has to wait a lot
or call again and again to talk with a customer care representative.
� Airtel performance is good but Gap exists not just with Airtel , but with all the
companies in the industry. Various VAS (Value Added Services) provided by
company does not seems to be satisfying their users. Customers are not satisfied with
SMS pack that is perceived costlier as compare to others companies SMS packs by
Airtel users.
� Airtel is to be found the best service provider of network service and customer care
service as well. This is one company in the industry that can be found delivering as
per their customer expectations. That’s why customers have rated it not as satisfactory
but excellent. But one has to pay more for superior service and Airtel is one example
of such service. Users of Airtel paying more for value added services. And they
expect from company to offer some of the VAS at some of the competitive prices.
Price is the only Gap exists in Airtel between company and users.
Page 43 of 59
Page 43 of 59
REFRENCES BIBLIOGRAPHY
Books: • Indian Telecom Industry by Mr. NasreenTaher Marketing Research – G. C. Beri
• Research Methodology – C.R Kothari
• Principles of Marketing – Philip Kotler
Magazines: • Business India
Web Resources:
• www.trai.gov.in
• http://www.vodafone.co.in/t-aboutus-ttsl-organization.aspx
• http://www.airtel.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp
• www.wikipedia.org
• www.scibad.com
• www.sheartearmpaper.com
Page 44 of 59
ANALYSIS AND INTERPRETATION
Q1:- Overall, how satisfied are you, with network service of your
company?
Brands Very high
satisfaction
level
High
satisfaction
level
Vodafone 5 7
Airtel 12 8
Interpretation: - Above table data analysis shows that the satisfaction rate of network service is leaded by Airtel. And Vodafone and others network service satisfaction rate is also good but in the rural area customer face the problem.
0
5
10
15
ANALYSIS AND INTERPRETATION-
Overall, how satisfied are you, with network service of your
High
satisfaction
level
Medium
satisfaction
level
Low
satisfaction
level
7 6 8
8 6 4
Above table data analysis shows that the satisfaction rate of network service is leaded by Airtel. And Vodafone and others network service satisfaction rate is also good but in the rural area customer face the problem.
Vodafone
Airtel
Page 44 of 59
Overall, how satisfied are you, with network service of your
satisfaction
Very low
satisfaction
level
4
0
Above table data analysis shows that the satisfaction rate of network service is leaded by Airtel. And Vodafone and others network service satisfaction rate is also good but in the rural area customer face the problem.
Vodafone
Page 45 of 59
Q2:- In thinking about your most recent experience with that company,
how much satisfied are you with the customer care service?
Brands Very high
satisfaction
level
High
satisfaction
level
Tata
Indicom
4 4
Reliance 8 12
Interpretation:- From the above data interpretation we can conclude that Airtel is the best service provider of customer care service. But the Vodafone is not up to the mark. Some of the users said that they have not talk to their customer care service provider even for a
0
2
4
6
8
10
12
In thinking about your most recent experience with that company,
you with the customer care service?
High
satisfaction
level
Medium
satisfaction
level
Low
satisfaction
level
4 11 7
12 6 4
From the above data interpretation we can conclude that Airtel is the best service provider of customer care service. But the Vodafone is not up to the mark. Some of the users said that they have not talk to their customer care service provider even for a single time.
Vodafone Airtel
Page 45 of 59
In thinking about your most recent experience with that company,
satisfaction
Very low
satisfaction
level
4
0
From the above data interpretation we can conclude that Airtel is the best service provider of customer care service. But the Vodafone is not up to the mark. Some of the users said that they have not talk to their customer care
Page 46 of 59
Q3:- Overall, how satisfied are you with tariff plan offered by the
company?
Brands Very high
satisfaction
level
High
satisfaction
level
Vodafone 5 5
Airtel 11 8
Interpretation: - Above data and chart analysis depicts that Airtel has the highest rating of Value for money and excellent and good service provider but Vodafone is not up to the mark.
0
2
4
6
8
10
12
Overall, how satisfied are you with tariff plan offered by the
High
satisfaction
level
Medium
satisfaction
level
Low
satisfaction
level
5 6 9
8 6 4
Above data and chart analysis depicts that Airtel has the highest rating of Value for money and excellent and good service provider but Vodafone is not up to the mark.
Vodafone
Airtel
Page 46 of 59
Overall, how satisfied are you with tariff plan offered by the
satisfaction
Very low
satisfaction
level
5
1
Above data and chart analysis depicts that Airtel has the highest rating of Value for money and excellent and good service provider
Page 47 of 59
Q4- Rank the following VAS which attracted you the most to buy or retain
the mobile service:
a) SMS pack
b) Concession Call Rates
c) Internet Service
d) Full Talk Time
Brand Sms Pack Concession call rates
Vodafone 8 6
Airtel 6 10
Interpretation:- From the graphs it depict that call rates and full talktime of Airtel attract most of the customers whereas sms pack full talktime and internet services attract most of the Vodafone customer.
0
2
4
6
8
10
Rank the following VAS which attracted you the most to buy or retain
1 2 3 4 5 Excellent --1 2 3 4 5
b) Concession Call Rates 1 2 3 4 5
1 3 3 4 5
1 2 3 4 5
Concession call rates Internet service Full talktime
7 9
6 8
From the graphs it depict that call rates and full talktime of attract most of the customers whereas sms pack full talktime and internet
services attract most of the Vodafone customer.
vodafone Airtel
Page 47 of 59
Rank the following VAS which attracted you the most to buy or retain
1 2 3 4 5 -- Poor
Full talktime
From the graphs it depict that call rates and full talktime of attract most of the customers whereas sms pack full talktime and internet
Page 48 of 59
Page 48 of 59
3
3
1
1
3
3
32
4
3
3
1 1
OVERALL GRADING OF
VODAFONE AS PER LIKERT
SCALE
ISD RATES
STD RATES
LOCAL RATES
MSG SERVICE
NETWORK
BILLING
VOICE CLARITY
QUICK SMS FOR BAL
INTERNET
CALL PERFORMANCE
& RELIABILITY
VAS
TALK TIME &
VALIDITY
BRAND IMAGE &
ADS
Page 49 of 59
Page 49 of 59
23
3
4
15
5
2
2
3
5
1
3
(9) OVERALL GRADING OF
AIRTEL AS PER LIKERT SCLAEISD RATES
STD RATES
LOCAL RATES
MSG SERVICE
NETWORK
BILLING
VOICE CLARITY
QUICK SMS FOR
BAL
INTERNET
CALL
PERFORMANCE &
RELIABILITYVAS
TALK TIME &
VALIDITY
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Page 50 of 59
Analysis on the basis of these factors
S.No. Factors Very High
Satisfaction
Level
High
Satisfactio
n Level
Medium
Satisfaction
Level
Low
Satisfacti
on Level
Very Low
Satisfactio
n Level
A Services 5 4 3 2 1
1 Price ( price of the card which Has validity period of 30 days)
5 4 3 2 1
2 Tariff ( Which provides free calls and reduces the call rate )
5 4 3 2 1
3 Network Connectivity ( Conjunction free network)
5 4 3 2 1
4 Coverage (Quality of Network coverage in rural and urban areas)
5 4 3 2 1
5 Value Added Service (which provides the function like GPRS, MMS, Caller Tune)
5 4 3 2 1
6 Roaming facility (provides the good connectivity in other states)
5 4 3 2 1
S.No. Factors Very High
Satisfaction
Level
High
Satisfactio
n Level
Medium
Satisfaction
Level
Low
Satisfacti
on Level
Very Low
Satisfactio
n Level
B CONVENIENCE
5 4 3 2 1
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Page 51 of 59
1 Availability of Company Outlets for payments of Bills ( E.g.- Reliance Web world)
5 4 3 2 1
2 Availability of
Recharge Coupons 5 4 3 2 1
C Customer Care Services
5 4 3 2 1
1 Grievance Handling ( Handling product related queries)
5 4 3 2 1
2 Inter-personal skills of the Executive (Humble and Soft Spoken)
5 4 3 2 1
Important: - To know the view of customer about its satisfaction level for Vodafone
and Airtel. Please tick the attributes according to your knowledge and belief. Different
attributes regarding their preference number are:-
Attributes Number
Very high satisfaction level 5
High satisfaction level 4
Medium satisfaction level 3 Low satisfaction level 2 Very low satisfaction level 1
Page 52 of 59
Page 52 of 59
FINDINGS, SUGGESTIONS AND CONCLUSION
INTRODUCTION:
This chapter is allocated to express the findings and conclusions in this study. Statistical tools are applied to analyze the data. It includes the result of each and every tables, charts and tests.
FINDINGS FROM PERCENTAGE ANALYSIS:
→�On the basis of consumer preference, majority of the peoples
are preferred AIRTEL.
→�On the bases of age group, most of the respondents (60%), are
using AIRTEL, who are in the category of up to 20 years.
→�On the basis of educational qualification, most of the graduates are using
cell phones.
→�Majority of the peoples buy the cell phones by influencing their family
member
→�3.8% of respondents are only influenced by advertisements.
→�Majority of the peoples are using cell phones for personal
usage.
→�Majority of the peoples are using prepaid scheme.
→�Majority of the peoples are using cell phones for both incoming
and outgoing.
→�Less than 20% of the peoples are only less aware about
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Page 53 of 59
services provided by the services provider.
→�Majority of the respondents are highly satisfied about the price of
AIRTEL.
→�On the bases of after sales service, the majority of the
respondents are highly satisfied in AIRTEL.
→�No peoples are highly satisfied about the after sales Service in
VODAFONE.
→�Minority (5%) people are only dissatisfied about the after sales services of
AIRTEL.
→�On the basis of schemes at the time of the service, 55% of peoples are
highly satisfied in AIRTEL.
→�On the basis of periodical offers, majority of the peoples highly
satisfied in AIRTEL.
→�On the basis of outgoing call charges, majority of people are highly
satisfied in AIRTEL.
→�No people are highly satisfied about the outgoing call charges of
VODAFONE.
→� On the basis of consumer’s attitude, majority of the people are states that
cell phones are necessity to all.
→�8% of the respondents are only states that cell phones are
luxury
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Page 54 of 59
DISCUSSIONS OF THE FINDINGS
Some discussions on the key antecedents and consequences are
presented below:
•
•
•
To reach out to new consumers in rural and remote areas, the sharing of
infrastructure must be encouraged by the government. It would, indeed,
be wasteful for every operator to duplicate costly infrastructure.
Infrastructure sharing on fair, transparent and commercial terms will
ensure that consumers in rural areas get choice of service, quality as well
as affordability. While the nation achieves aggressive rollout and
improved tele-density, the operators get an attractive commercial
proposition and an opportunity to expand the coverage and reach of their
services.
In essence only 34.5 million mobile customers are active in the mobile
industry. The challenges for the industry to make the balance 10 million
customers also actively use their mobile, connection, which is not easy,
considering that several of these customers have shifted to another
mobile connection during the grace period, due to better scenes/tariffs.
However, thorough concerted efforts, at least a third of the 10 million
customers can be brought back to the active and paying customers list. In
the post-paid category, “Zero” usage billing customers (only rental paid)
exist to the extent of 5% of the total base, thus adding limited revenue to
operators.
The new mobile companies, especially the GSM operators, have learnt
a bitter lesson from this experience and tightened the controls from
January 2004. Tighter control over documentation, customer profile
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Page 55 of 59
•
•
verification, payment capacity and transferring most of the customers to
the pre-paid segment have reduced the possibility of “junk” customers
coming in to the network.
All the activities are focused on tariff charges, launch of value added
services to enhance usage and revenue, increase or decrease of various
charges/tariff, instead of working towards market expansion. The next
revolution in the mobile industry can happen only when the telecom
companies work towards market expansion rather than price/tariff
changes. However, in the pursuit to beat each other, the focus of each
operator is only on price/tariff changes instead of working collectively to
acquire more new customers, who are confused due to the constant changes and delay in entry. Opportunistic behaviour is measured by attributes like distortion of
information and violation of rules and regulations influence users’ trust. It
plays most significant role because of intense competition. Coherence is
required in formulating their strategic intentions so as to minimize their
perceived opportunistic behaviour, and to get a share of the mind of the
customers.
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Page 56 of 59
SUGGESTIONS:
To ensure that every youth has a mobile, service providers have to offer
services like SMS/MMS at low cost/free and ensure that the total mobile
bill for the youth does not cross Rs.300-400 per month, which is the
maximum this segment of customers can afford from their pocket money;
To ensure that every household has a mobile connection, it is essential
that the utility of mobile phones is increased through better STD and ISD
rates vis-à-vis landline, friends and family offers, special rates to landlines
etc., with easy/low deposit schemes to acquire these facilities.
To ensure that the penetration targeted in towns and villages is achieved,
service providers have to invest in network expansion and reach out on
priority; to exploit the untapped potential in these markets.
The construct of trust is important for cellular users of telecom industry.
As such, it has implications for value added services, market
segmentation, and customer retention strategies. Theoretically,
conceptualising and modelling trust in telecom sector help to expand
scholars’ knowledge of interactive consumer behaviour in this emerging
discipline.
This study also shows that technology orientation is a significant factor of
mobile users’ trust. Therefore, telecom service provider needs to ensure
that it provides the best network quality and value added services
Airtel, Vodafone should try to expand their customer’s network.
Vodafone should try to attract the young peoples. (upto 20 years)
Airtel should try to attract old peoples also.
All the service providers are made good advertisements for their service.
Because, advertisements are take little part for influencing the consumers.
All the service providers are try to increase post paid users.
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Page 57 of 59
75% of the peoples are unaware about the various services rendered by their
service provider. So the service providers try to make awareness of their
customers services to their customers.
Airtel, Vodafone should attract the customers by reducing their price.
Vodafone are highly dissatisfied about the performance of the service provider.
So they should try to add some advanced features towards their services.
Vodafone should decreased their dissatisfied customers by providing
good after sales services.
Vodafone should give periodical offers to their customers.
Vodafone should decrease their outgoing call charges
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QUESTIONNAIRE Dear Sir/Madam
I am the student of MBA-4rd Semester at INC, Allahabad doing a project “A comparative study on various plans and offers provided by VODAFONE and AIRTEL and consumer response towards these plans” Please co-operate to fill this questionnaire. 1. Name _________________________________________
2. Sex: (a) Male (b) Female
3. Age: (a) 15-25 (b) 25-35
(c) 35-45 (d) Above 45
4. Education: (a) Matriculate (b) Intermediate
(C) Graduation (d) Postgraduate
5. Who is your current service provider? a) Airtel b) Vodafone c) Any other 6) For how long you are using this mobile connection?
a) less than 6 months. b) 6 to 12 months. c) Above 12 months.
7. What were the reasons for choosing this mobile connection?
a) Recommended by friends or relatives. b) Recommended by retailers. c) Brand image d) Tariff plans
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8. While purchasing a connection tariff plans plays any role? a) Yes b) No 9. From where you watch the advertisement most?
a) Television b) Radio c) Newspaper d) Magazines
10. Which telecommunication have good advertising? a) Air Tel b) Vodafone c) Any other 11. How well did advertisement of the Air Tel catch your attention? a) Very well b) Somewhat well c) Undecided d) Not at all. 12.How well did the advertisement of the Vodafone catch your attention? a) Very well b) somewhat well c) undecided d) Not at all 13. Do you think that advertisement made by company informs you about there products? .a) Yes b) No c) Undecided 14) Based on advertisements made by company , would you like to go for more connection for you or your family in future? a) Yes. b) No. c) Not decided. Address __________________________________________
__________________________________________
__________________________________________
Phone no. _________________________________“Thanks for your valuable time and co-
operation”