Analysis of Users Needs and Perception Regarding Vas Haryana Telecom Circle

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A

SUMMER TRAINING REPORT


ON

ANALYSIS OF USERS NEEDS AND


PERCEPTION REGARDING VAS
IN
HARYANA TELECOM CIRCLE
AT
VODAFONE ESSAR DIGILINK LTD
Submitted in partial fulfillment of the requirements For the award of the degree of
Master of Business Administration

Session:-2008-2010

BY
AMARJEET PAWARIA
Under the guidance of

Mr. YUDHVIR SINGH,


Assistant Manager – Marketing Operations
SHRI BABA MAST NATH INSTITUTE OF MANAGEMENT
STUDIES AND RESEARCH, ASTHAL BOHAR
M D UNIVERSITY
TABLE OF CONTENTS
Sr. no. Particulars Page no.

1 Declaration 3

2 Acknowledgement 4

3 Preface 5

5 CHAPTER 1 – Corporate Profile 6

6  Executive summary 7

 Introduction 8-11

13-19
 About Vodafone
20-21
 About Vodafone Haryana
7 CHAPTER 2 – Research Objective 22

8 CHAPTER 3 – Research Methodology 25

9 CHAPTER 4 –Analysis and Observation 29

10 CHAPTER 5 – Conclusion And Recommendations 54


11 CHAPTER 6 –Limitations 59

12 CHAPTER 7 -Annexure 61

 Questionnaire 62-65

66
 List of Abbreviations
67
 Bibliography
DECLARATION

I AMARJEET PAWARIA Roll no.605, student of SBMIMSAR, MBA 3 1st


Sem. Hereby declare that the summer training report entitled “ANALYSIS OF
USERS NEEDS AND PERCEPTION REGARDING VAS IN HARYANA
TELECOM CIRCLE” is original piece of work done at VODAFONE ESSAR
DIGILINK LTD. During summar training and the same has not submitted to any
other institute for any award of any other degree.

The project report was presented to the supervisor on and the pre-submission viva
was made on. The feasibility sugesstions have been duly incorporated in the
consultation with the supervisor.

Signature of supervisor Signature of


candidate

Director of the institute

ACKNOWLEDGEMENT
The purpose of compilation of the subject for a project report always involves creation of
a huge debt towards innumerable people whose contribution is worth mentioning.

I hereby put my sincere thanks to one and all.

I would also like to thank Mr. Yudhvir Singh, Assistant Manager – Marketing
Operations, Vodafone Essar Digilink Limited who guided me a lot about knowing and
understanding VAS related markets.

I would also like to thank Mr. Abhinav nakra (student of mba under GGSIP university)
who provide me some valuable inputs. I am highly obliged by his precious advice at
every step.

I would also like to express my gratitude towards Mrs. Shafali sharma & Mrs. Seema
Mahlawat(Teacher) who guided me some time during this research. Without whose
guideance and encouragement, this project report would not have been successful.

They have all been a constant guiding force throughout the course of this project and
without their immense support and cooperation this report would not have been a
success.

Amarjeet
Pawaria
PREFACE

Summer training as the name itself is undertaken by MBA student as an integral


part of MBA curriculum usually the month of June & July, when a student enter in
his last year of this course ..

The main advantage of this summer training is to make the familiar to a student of any
particular organization culture, Norm along with formal teaching. It gives a different kind
of experience from classroom .The subject of marketing is very wide and vast. The
existence of any business organization is impossible without it.

I got an opportunity of doing my summer training in “VODAFONE ESSAR DIGILINK


LTD”. I put in effort to explain each and every function step by step and make it clear in
an easy and understandable language.

(AMARJEET
PAWARIA)
EXECUTIVE SUMMARY
IDENTIFYING AND ANALYZING THE NEEDS AND REQUIREMENTS OF
GSM USERS IN HARYANA CIRCLE OF TELECOM.

In the growing market of GSM service providers both the customer base and the
competition are growing at a very fast pace. Currently there are Five GSM Service
Providers covering Haryana circle. In a telecom circle where population base is over 20
million and GSM subscriber base is just little over 7 million, there is a lot of potential
market available. The major population (i.e. about 70%) is covered under the rural
category and there exist a vast difference in the buying behavior of rural and urban
customers. In such a vast circle with so much behavioral and economic disparity among
the rural and urban customers, it becomes hard to understand, analyze and cater the needs
and requirements of all existing and potential customers.

The scope of this study is to correctly identify and analyze the needs and requirements of
the existing GSM users in Haryana circle so as to offer them products and services which
they will be more willing to go for.

This study will identify and analyze the various services used by the GSM users with the
help of a Questionnaire filled by the customers at various locations in Haryana region.
INTRODUCTION
1.1 Introduction to Indian telecom

India has come a long way in mobile telecommunication industry since the beginning of
it in 1995, with its chargeable both incoming and outgoing calls, to today where a
lifetime prepaid connections available across nation, from the service providers providing
just calls and messages to today when service providers providing a wide portfolio of
Value Added Services, with just network in urban metros to network even in remotest
village across India. Indian telecom industry has come a long way since then, and now
has 12 operators providing service across nation on both GSM and CDMA platforms.

The triggers for the massive increase in mobile penetration have been many. Factors such
as price, income and tastes have all been important determinants. There has been an
enormous decline in prices. The effective price per minute for an outgoing mobile call
has dropped from Rs.15.30 in 1998 to Rs.0.68 in 2008. This 98% decline would be much
higher in real terms. Another measure, the Average Revenue per User (ARPU), is around
Rs.250 per month, compared to about Rs.1550 in 1998.

Of total telecom sector revenue of US $27.5 billion in March 2008, mobile telephony
accounted for more than 50%. Average growth in revenue during the past three years has
been 20%, making India the fastest growing telecoms market in the world. The more than
10 million mobile phones being added each month are distributed among the major
operators. Airtel, Vodafone and Reliance added the highest numbers of subscribers, with
2.03, 1.57 & 1.51 million new additions respectively in March 2008.
The compound annual growth rate (CAGR) for mobile between 1999 and 2008 in India
has been 83% while that of fixed lines has been just 7.5%, and the growth of mobile is
accelerating, while the growth in the number of fixed lines is trending down. In fact, in
the last three years, the number of fixed lines has decreased. In March 2008, mobiles
accounted for 86% of all telephones in India, and by October 2008 this number had
increased to 90%. Contrast this with the situation in 1999 when mobile constituted just
5% of all telephones. There are now over 325 million mobile users compared to about 38
million fixed users. If the current trend continues, there will be over 540 million
subscribers by the year 2010.

Net monthly additions in India are the highest in the world today, the challenge is to
ensure that growth does not slow, so that the gap between India and other countries is
bridged sooner rather than later.

Despite the massive increase in mobile density in the last three years, access in India is
still skewed toward urban areas where much of the industrial base is located. Urban
teledensity is seven times higher than rural, which is home to 70% of India’s population.
In other words, two thirds of the phones are in urban areas where only 30% of the people
live.
The strong mobile growth in 2007–08 has occurred despite some signs of saturation in
urban markets. This suggests there is higher potential future growth in nonurban markets.
The latest figures show that at the all-India level, urban teledensity (all attributable to
mobile growth) increased by 34% while rural teledensity increased by 62% from March
2007 to March 2008, the disparity reflecting the low rural base.

Until now, the focus of mobile operators’ attention has been on the more lucrative urban
markets. The high cost of infrastructure rollout in less dense rural areas and affordability
barriers for the rural population are likely reasons. But there are signs this is changing.
Infrastructure rollout in rural areas is now eligible for subsidy and all major providers
have reported future plans for expansion in rural India. In addition, the village is not what
it used to be: 70% of India’s population, 56% of income, 64% of expenditure and 33% of
savings come from rural India. The rural share of spending on popular consumer goods
and durables ranges from 30% to 60%. When examining rural data it is important to bear
in mind that a small percentage of a large number is a large number. One percent of rural
India is 1.4 million households. Rural India therefore presents a huge opportunity but it
also represents a huge investment for telecoms operators. The key factor is the much
lower population density of the rural areas – cost is driven largely by coverage (and area),
while revenue opportunity is driven by population.
ABOUT VODAFONE
Vodafone Group Plc is the world's leading mobile telecommunications company, with a
significant presence in Europe, the Middle East, Africa, Asia Pacific and the United
States through the Company's subsidiary undertakings, joint ventures, associated
undertakings and investments.

The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United
States the Group's associated undertaking operates as Verizon Wireless. During the last
two financial years, the Group has also entered into arrangements with network operators
in countries where the Group does not hold an equity stake. Under the terms of these
Partner Network Agreements, the Group and its partner networks co-operate in the
development and marketing of global services under dual brand logos.

At 31 December 2008, based on the registered customers of mobile telecommunications


ventures in which it had ownership interests at that date, the Group had 289 million
customers, excluding paging customers, calculated on a proportionate basis in accordance
with the Company's percentage interest in these ventures.

The Company's ordinary shares are listed on the London Stock Exchange and the
Company's American Depositary Shares ('ADSs') are listed on the New York Stock
Exchange. The Company had a total market capitalization of approximately £74 billion at
31 December 2008.

Vodafone Group Plc is a public limited company incorporated in England under


registered number 1833679. Its registered office is Vodafone House, The Connection,
Newbury, and Berkshire, RG14 2FN, England.

Vision:-
To enrich our customer's lives through the unique power of mobile communication

Mission
To be the communications leader in an increasingly connected world – enriching
customers’ lives, helping individuals, businesses and communities be more connected by
delivering their total communication needs
Passion
Passion for Customers
Our customers have chosen to trust us. In return, we must strive to anticipate and
understand their needs and delight them with our service. We value our customers above
everything else and aspire to make their lives richer, more fulfilled and more connected.
We must always listen and respond to each of our customers. We will strive to delight
our customers, anticipating their needs and delivering

Passion for our People


Outstanding people working together make Vodafone exceptionally successful.
We seek to attract, develop, reward and retain outstanding individuals. We believe in
empowerment and personal accountability. We enjoy what we do. We believe in the
power of our teams.

Passion for Results


We are action-oriented and driven by a desire to be the best. We are committed to be the
best in all we do. We all play our part in delivering results. We seek speed, flexibility and
efficiency in all we do.

Passion for the World around Us


We will help people of the world to have fuller lives – both through the services we
provide and through the impact we have on the world around us.
We recognize the responsibilities that accompany the growth we have achieved.
We will be a force for good in the world. A spirit of partnership and mutual respect is
critical in all our activities.

Vodafone is known for a complete experience which it provides in and out of homes and
offices of its customers. It notify its consumers about email with its consumer push email
service, access existing instant messaging services on the move, and share images and
video captured on their handsets.
It offer a suite of products that, starting with voice calls, offers its customers an
alternative to a traditional fixed telephone line. Vodafone Zuhause in Germany and
Vodafone Casa in Italy, provide its customers with an easy-to-use mobile service,
combined with low-cost fixed line telephony and DSL (Digital Subscriber Line)
broadband.
It has extended its reach into the office by delivering richer business applications and
integrated fixed and mobile services, such as higher speed internet access.

With developments in technology it can provide integrated mobile and PC offerings to


give its customers a consistent experience whether they are at home or on the move.
Vodafone provides its services in two ways –

• Wirelessly through 3G and

• HSDPA (High-Speed Download Packet Access), but also using fixed line
broadband services like DSL (Digital Subscriber Line).

It provides a range of voice and data mobile telecommunications services, including text
messages (SMS); picture messages (MMS) and other data services. It is continually
developing and enhancing service offerings particularly through third generation (3G)
mobile technology, which is being deployed in the majority of our operations.

Its mobile services are offered over the GSM network on which a General Packet Radio
Service (GPRS) is also provided. The move to higher performance 3G (W-CDMA)
networks is well underway in the bulk of its operations, and it is now in the process of
upgrading these networks to 3G broadband (HSDPA) with the promise of even higher
data rates.

Mobile is always at the heart of what Vodafone do, but now it is moving into integrated
mobile and PC communication services, by combining fixed-line Digital Subscriber Line
(DSL) broadband offers with our core mobile services.

ABOUT VODAFONE ESSAR


Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23
telecom circles in India. Despite the official name being Vodafone Essar, its products are
simply branded Vodafone. Vodafone Essar is the Indian subsidiary of Vodafone Group. It
offers both prepaid and postpaid GSM cellular phone coverage throughout India.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 23 of the country's 23 license areas. It is among
the top three GSM mobile operators of India.

The company now has operations across the country with over 74.08 million customers

Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected
Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and
Most Effective Advertiser of the Year’.
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.

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


currently has equity interests in 27 countries across 5 continents and 40 partner networks with
over 303 million proportionate customers worldwide. The Essar Group is Vodafone’s principal
partner in India.

The Essar Group is a diversified business corporation with a balanced portfolio of assets in the
manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports &
Logistics, and Projects. Essar employs more than 50,000 people across offices in Asia, Africa,
Europe and the Americas.

Previous brands
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its
services under a single identity. 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.

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. The company also plans to launch co-branded
handsets sourced from global vendors as well.

Growth of Hutchison Essar (1992-2005)


In 1992 ‘Hutchison Whampoa’ and its Indian business partner established a company that in 1994
was awarded a license to provide mobile telecommunications services in Mumbai (formerly
Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh
of Max still holds 12% in company.

In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later Hutch took the
majority Stake.

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 (Essar Spacetel - A subsidiary of Essar
Group) that held license applications for the seven remaining license 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.

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 licenses 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 (Except Mumbai)- 3 Circles, another mobile service provider in India.
2008: Vodafone acquired the License in remaining 7 circles and has started its pending operations
in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya Nagar,Bhopal as well as in
Orissa, Assam, North East and Bihar.

2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network.

Subscriber Base:-
The Vodafone subscriber base in each circle according to COAI — Cellular Operator Association
of India as of May 2009 was:

420344
Delhi 2
451743
Mumbai 8
160610
Chennai 8
297073
Kolkata 4
514114
Maharashtra 2
841580
Gujarat 2
425794
A.P. 3
394625
Karnatka 2
555011
T.N. 9
337022
Kerala 7
230302
Punjab 3
231095
Haryana 1
467471
U.P.(W) 9
717653
U.P.(E) 2
540115
Rajasthan 6
M.P. 534564
524968
W.B. & A & N 1
H.P. 63517
125133
Bihar 1
Orissa 572757
Assam 231625
N.E. 245980
J&K 85664
**
Total customer base of Vodafone India at the end of May 2009 is 7,40,80,717.
**
Total national customer base of GSM users across nation is 30,64,53,590.
**
Percentage of total market share is 24.17%.
**
All figures are calculated from the data available at the web site of COAI

MARKETING OPERATIONS AT VODAFONE


The Marketing Team looks after post paid, prepaid, value added services, roaming,
brand communication and visibility.

Postpaid: Looks at the product that offers subscribers a package to make calls based on
an agreed monthly plan. Bills are presented and seek payment at the end of the monthly
cycle for the month gone by.
Prepaid: Looks at a product wherein the customer can be mobile in the shortest time.
Talk time is loaded on the sim card against payment made. The amount gets reduced real
time as the subscriber uses his sim connection for voice or data calls.

VAS:. The quality and the quantity of the value added services that a cellular operator
today can offer to his customers’ benchmark his standing in the industry. Value Added
Services (VAS) at Hutch has always strived to offer its customers great innovative and
useful services on their cellphones. Hutch is today perceived as pioneer in offering
unique value added services. This includes services like group messaging, voice mail,
cricket clips on your GPRS handsets, logos, ring tones, news etc.

Roaming: Responsible in tying-up with more and more cellular operators across the
globe so that Hutch subscribers have the convenience of being accessible on their cell
phones wherever they travel across the globe. It is instrumental in making roaming usage
a simple and a pleasant experience. Work also includes devising of attractive roaming
reward programmes for using Hutch network.

Brand Communication: Responsible for all communication to customers’ right from a


SMS notification to use of mass media like TV, press and radio.

Visibility: Manages brand visibility outdoors. From in shop to outside shop


merchandizing to bus shelters, hoardings and kiosks.

ABOUT VODAFONE HARYANA


Head office – VODAFONE ESSAR DIGILINK LTD, Udyog Nagar, New Delhi.

Haryana circle is geographically divided into three belts –

• Belt 1 – All cities, towns and villages falling on and near National Highway 1.

• Belt 2 – All cities, towns and villages falling on and near National Highway 10.
• Belt 3 – All cities, towns and villages falling on and near National Highway 8.

Distribution Channel details

• ***
32 Master Distributors.

• ***
180 Associate Distributors.
• ***
23423 Retailers.

There are 17 stores in the whole Haryana region whose operations are handled from
this branch. These stores are:
1. VFS - Karnal Vodafone
2. VFS - Kurukshetra Vodafone
3. VFS - Panipat Vodafone
4. VFS - Ambala Vodafone
5. VFS - Sonipat Vodafone
6. VFS - RohtakVodafone
7. VFS - Hisar Vodafone
8. VFS - Rewari Vodafone
9. VFS - Bahadurgarh Vodafone
10. VFS - Bhiviani Vodafone
11. VFS - Jhajjar Vodafone
12. VFS - Palwal Vodafone
13. VFS - Sirsa Vodafone
14. VFS - Yamunanagar Vodafone
15. VFS - Sirsa Vodafone

There are two mobile stores in this region

16. VFS-Mobile Vodafone Store-1


17. VFS-Mobile Vodafone Store-2
***
Figures as on 15th June 2009.

HMPPL: Hutchinson Max Paging Private Limited

This is a group company of Vodafone which deals with handset section of the company.
Vodafone itself do not manufacture handsets, but purchase from other companies and sell
them with its services. The set are mainly imported from China. HMPPL has it’s
headquarter in Mumbai which handles the purchasing of handset. HMPPL has a
warehouse in Bahadurgarh to cater to the needs of handsets in this region. The movement
of handsets from the warehouse to the stores is handled by the Udyog Nagar office only.
Vodafone mainly provide the following models of Handsets:

1. Blackberry

2. I-phone
3. Vodafone 225(with and without FM)
4. Vodafone 226
5. Vodafone 227
6. Vodafone 228
7. Vodafone 527
8. Vodafone 125
9. Vodafone 136
10. Vodafone 236

Besides these it also offer two USBs

1. K2525

2. K2540
OBJECTIVE
Objective of the study

1. To identify the users of value added services.

2. To analyze the kinds of value added services used by the users in Haryana
telecom circle in order to offer them exactly.

3. To know the perception of VAS users in Haryana telecom circle

4. To check about the awareness of the users about the various services offered to
them.

Overview about the locale of study

Haryana is the perfect market for knowing the urban and rural customers, with following
distinctive characteristics -

• Population of little over 20 million having about 2/3rd of rural and 1/3rd of urban
population.

• Overall Literacy rate of 68.59%. Male literacy ratio – 79.25% and female literacy
ratio - 56.31%

• Haryana is the second richest state in India after Delhi.


• Between 1999 and 2008, when the Indian economy grew at an average annual rate
of 7.3%, Haryana grew faster at a rate of 8.7% faster than even Delhi which grew
at 7.4%.

• Haryana has a mobile penetration of about 32%.

• Haryana telecom circle covers 18 cities, 80 towns and above 7000 villages.

SCOPE OF THE STUDY

Scope of the study

Since the area was limited and the sample chosen subject to the convenience of the
researcher, there is huge scope for improvement and more intensified research. These can
be overcome in further studies that would be undertaken. More statistical tools can be
used as these will lead to better presentation and analysis of the data available. The
results can be improvised more by incorporating studies on other cities and town across
the circle.

1. As the research carried out in Rohtak, so the scope is limited to a


particular area.

2. As the study is carried out in Rohtak where the standard of living of the
people fluctuates from medium to low scale, so it affects the choice and
decision criteria a lot.

3. To study perception of subscribers from various age groups.


METHODOLOGY
This chapter details how the Project was executed. It also lists how the researcher did the
planning and the tools used for testing of the Objectives.

Introduction to the methodology

This study majorly involves the analysis of direct face to face interaction with the GSM
users across Haryana in order to understand their needs and requirements. This study also
helps by knowing the usage and psychology of end users regarding various value added
services, which in return tells us why a service is used over other and what changes can
be done in order to improvise upon the offerings by the service operators.

Universe of Study

The Haryana Telecom Circle, as a whole would comprise of the universe of this study. It
would include vodafone operators providing GSM mobile service as a part of their
business.

Locale of the Study

Due to limitation of time and reach the researcher planned on the studying the problems
in a restricted realm of Rohtak.

Research Process

In this section the researcher has defined the data that was collected so that each of the
objectives could be justified and problems of the study solved. An attempt has also been
made to define the data in short, though each data is defined in their respective chapters.

The following steps were followed to complete research:


First the researcher got acquainted with the kind of plans and services offered by various
operators in Haryana Telecom circle.

Then the researcher got in touch with the executives of Vodafone to understand their
point of view about the market and other Haryana related scenarios.

After this a Questionnaire was prepared which was verified by Senior Management of
Vodafone.

After this the Researcher got in touch with 150 mobile users, using GSM connections
from vodafone operators at rohtak cities of Haryana to get the questionnaire filled.

Then the survey results were analysed with the aim to find out the kind of value added
services used by VODAFONE users and their various needs within the circle.

Completing the analysis the Recommendations were produced through to Senior


Management of the Marketing Department.

Tools Used

The various tools used for this analysis were-

Questionnaire: The questionnaire is aimed to get insightful data of customer`s


preference and requirements related to mobile services.

Sample Selection

Sample selection in any research is quiet important as it directly influences the results in
a greater manner than thought off. In a telecom circle with more than 7 million GSM
customer base, it becomes very crucial to choose an optimum sample size. Therefore it
was taken into consideration that all this requires lots of data collection but more
important was to collect data from people of urban, sub-urban and rural backgrounds as it
gives a deeper insights to data analysis of requirements & preferences.

The sample for conducting this analysis was decided on the basis of-

• Variable age groups.

• Variable Income groups.


• Variable occupational background.
• Variable monthly expenditure on mobiles.

Cities Coverage: The sample taken is collected from Rohtak city.


Benchmarking: As the data collected sometimes may have some samples which are not
complete on the parameters of analysis, therefore the data which has semi-filled data
which could not be converted to relevant information for analysis is ignored.

Also the data with no clear indications of Needs and Preferences of the user is also
ignored.

Sample Size

The sample size after Benchmarking and removing not so useful samples resulted in the
number of 150.

Further Scope

Since the sample chosen was subject to the time and resource limitation of the researcher,
there is huge scope for improvement and more intensified research. These can be
overcome in further studies that would be undertaken. More statistical tools can be used
as these will lead to better presentation and analysis of the data available.

Summery of methodology:-

Research design -Descriptive

Research method -survey of VODAFONE users

Data source -primary & secondary

Data collection method -questionnaire

Sample size -150 enquiries

Area covered -Rohtak


OBSERVATIONS AND ANALYSIS
This chapter deals with the representation of all of the data collected along with the
analysis of those observations. This chapter will help in knowing the VODAFONE users
in Haryana circle in details so that proper conclusions and recommendations can be
drafted.

1. AGE GROUP:-
below 18 7
18-27 93
27-40 34
greater than 40 16
OBSERVATION:- The data clearly shows that the major portion of the mobile users
belongs to the age group of 18-27 years. This segment of the customers constituting
mainly students and they shall be emphasized more and it shall be tried to cater to their
specific needs.

2. EDUCATION:-

below 10 25
10th-12th 34
pursuing
graduation 29
graduate 62
OBSERVATION:- Education categories of “10th to 12th”, “Pursuing Graduation” and
“below 10” all cover nearly similar percentage of customer base, but percentage of
graduate is 41%.

3. OCCUPATION:-

businessman 14
employee 38
farming 24
student 70
house wife 2
shopkeeper 1
worker 1
OBSERVATION

It can be easily seen that the majority of the mobile users belong to students category,
which have a distinct needs and prefer cheaper service operator because of their financial
dependence.

4. INCOME:-

<4000 33
4000-10000 37
10000-20000 14
>20000 5
not aplicable 61
OBSERVATION

The population belonging to N/A category comprises of all the students who are
dependent on their guardians for their mobile phone expenditure.

Out of the rest of the population of mobile users i.e. 78% of the earning users belong to
the people earning less than Rs.10,000-/ per month.

5. MONTHLY EXPENDITURE

<50 6
50-150 57
151-350 52
351-500 22
>500 13
OBSERVATION

A major amount of the customers belong to the category of monthly expenditure of “151-
350”& “50-150” and more than 72% percent of the population belong to users spending
less than Rs.350 per month on mobile phones.

6. Since when are you using a vodafone connection?

<6 months 2
6-12 months 33
more than one year 115
Observation:- out of 150 users, 77% belong to more than one year category, 22% belong to 6-12
months category and only 1% belong to less than 6 months category.

7. From where do you get to know about new VAS?

friend 8
sms 47
retailer 12
Sms +retailer 28
hoardings +sms +retailer +radio 5
hoardings +sms +retailer 5
Hoarding +retailer 9
Sms +poster 9
Sms+retailer+poster+hording+tv 4
Sms +retailer +poster 16
Hoarding +poster +radio +sms 2
Hoarding +radio 1
hoarding 1
Hoarding +poster +sms 1
Hoarding +sms 1

Observation:- out of 150 users, 31% get information related to new plans through SMS and 19%
from SMS+RETAILER.

8. Which of the following Vas do you use?

caller tune 22
No 70
Sms 42
Sms +caller tunes 12
Sms+callertunes+gprs 2
Sms +gprs 1

Observation:- 47% of usres don’t use any VAS and 28% users use SMS service.

9. how many average SMS do you send on weekly basis?

below 10 11
10 to 25 23
25-100 21
>100 13
no 82
below 10
7%
10 to 25
15%

below 10
no 10 to 25
55% 25-100
14% 25-100
>100
no

>100
9%

Observation:- out of 150 users, 55% don’t send SMS.

10. Are you satisfied with the price charged for the messages?

no 80
yes 70
Observation:- 47% users are satisfied with there SMS price and 53% users are not satisfied with
there SMS price.

11. Do you use the SMS bones card if “yes” which denomination?

no 101
yes 34 17
yes25 32
Observation:- 21% users use 25 rs.bones card for SMS, 12% users use 34 rs. Bones card for SMS
and 67% users don’t use any bones card.

12. Which category caller tune do you generally like?

bollywood 85
bollywood+english 3
bollywood+haryanvi 1
bollywood+religious+english 1
english 3
haryanvi 20
haryanvi+bollywood 27
haryanvi+bollywood+religious 2
religious 6
religious+haryanvi 2

Observation:- 57% of users like bollywood callertunes.

13. How often do you change your caller tunes?

<1
months 4
1-2
months 30
never 4
Observation:- 79% users change there callertune with in 1-2 months.

14. How do you change your caller tune?

through calls 23
through calls+preass * 5
send sms 3
though calls+ sms send 1
press* to copy 4

Observation:- 64% users change his caller tune through calls.

15. Do you easily get the songs you are looking for?

no 7
yes 32
don’t use 111
Observation:- 82% users easily get callertune but 18% says no.

16. Do you know about 55655 service, which helps you search for the songs for caller tune?

no 109
yes 41
Observation:- 73% users don’t know about 55655 and only 27% users know about 55655.

17. Do you know the tariffs of 55655 service?

no 118
yes 32
Observation:- 79% users don’t about tariff of 55655 and only 21% know about tariff of 55655.

18. How do you use GPRS?


Attach to computer 2
on mobile only 2

Observation:- out of 4 users 50% like use gprs on the mobile only and 50% like attech to
computer.

19. Which sites do you surf though GPRS?


other than vodafone
live 1
vodafone live 3

Observation:- out of 4 users, 75% use Vodafone live in GPRS and25% use other than Vodafone
live.
20. What kind of GPRS subscription would you be interested?

15 days subscription 1
weekly 3

Observation:- out of 4 users, 75% users like subscription for weekly and 25% like 15 days
subscription.
Education vs. VAS

10th-12th 15
below 10 7
graduate 41
pursuing
graduation 17

pursuing
graduation
VASuserseducation
10th-20th wise
21% 19%

below
10th-20th
10
9% below 10
graduate graduate
51%
pursuinggraduation

Observation:- 51% users of VAS belongs to graduate category, 21% belong to pursuing
graduation, 19% belongs to 10th-12th and 9% belong to below 10 category.
OCCUPATION vs. VAS

businessman 9
employee 17
farming 8
house wife 2
shopkeeper 1
student 45
worker 1

VASusersocupationwise
worker businessman
1% 11% employee
21%
businessman
employee
farming
student
house wife
54%
shopkeeper
student
farming
10% worker
shopkeeper
1% house wife
2%

Observation:- 54% users of VAS belong to student category.


INCOME vs. VAS

<4000 11
> 20000 4
10000-20000 6
4000-10000 21
not
applicable 36

<4000
14% >20000
5%
not 10000- <4000
applicable 20000 >20000
46% 8%
4000-10000 10000-20000
27% 4000-10000
not applicable

Observation:- 46% users of VAS belong to NA category means student they depend on there
parents but mostly users belong to below 10000 income.

CO-RELATION OF INCOME Vs. USE OF VAS= -0.63


AGE vs. VAS

greater than 40 1
18-27 59
27-40 10
below 18 6

VASusageacc to age
greater than
below 18 40
8% 1%
27-40
13%

greater than 40
18-27
18-27 27-40
78%
below18

Observation:- 78% users of VAS belong to 18-27 age group.

CO-RELATION OF AGE Vs. USE OF VAS= -0.3


CONCLUSIONS
My finding are:-
1. Major portion of the mobile users belongs to the age group of 18-27 years. This
segment of the customers constituting mainly students.

2. Education categories of “10th to 12th”, “Pursuing Graduation” and “below 10” all
cover nearly similar percentage of customer base, but percentage of graduate is
41%.

3. Majority of the mobile users belong to students category, which have a distinct
needs and prefer cheaper service operator because of their financial dependence.

4. The population belonging to N/A category comprises of all the students who are
dependent on their guardians for their mobile phone expenditure.Out of the rest of
the population of mobile users i.e. 78% of the earning users belong to the people
earning less than Rs.10,000-/ per month.

5. A major amount of the customers belong to the category of monthly expenditure


of “151-350”& “50-150” and more than 72% percent of the population belong to
users spending less than Rs.350 per month on mobile phones.

6. Out of 150 users, 77% belong to more than one year category, 22% belong to 6-
12 months category and only 1% belongs to less than 6 months category.
7. Out of 150 users, 31% get information related to new plans through SMS and
19% from SMS+RETAILER.

8. 47% of usres don’t use any VAS and 28% users use SMS service and other use
callertunes and GPRS.

9. out of 150 users, 55% don’t send SMS.

10. 47% users are satisfied with there SMS price and 53% users are not satisfied with
there SMS price.

11. 21% users use 25 rs.bones card for SMS, 12% users use 34 rs. Bones card for
SMS and 67% users don’t use any bones card.

12. 57% of users like bollywood callertunes.

13. 79% users change there callertune with in 1-2 months, 10% change lessthan one
month and 11% users never change there callertunes.

14. 64% users change his caller tune through calls.


15. Out of 150 users, 111 were not use callertunes.Out of remaining users, 82% users
easily get callertune but 18% says no.

16. 73% users don’t know about 55655 and only 27% users know about 55655.

17. 79% users don’t about tariff of 55655 and only 21% know about tariff of 55655.
18. Out of 150 users, 146 were not use callertunes.Out of remaining users, 50% like
use gprs on the mobile only and 50% like attech to computer.

19. Out of 150 users, 146 were not use callertunes.Out of remaining users, 75% use
Vodafone live in GPRS and25% use other than Vodafone live.

20. Out of 150 users, 146 were not use callertunes.Out of remaining users, 75% users
like subscription for weekly and 25% like 15 days subscription.

21. 51% users of VAS belongs to graduate category, 21% belong to pursuing
graduation, 19% belongs to 10th-12th and 9% belong to below 10 category.

22. 54% users of VAS belong to student category,21% employees,11%businessman


andremaning are house wife & worker.

23. 46% users of VAS belong to NA category means student they depend on there
parents but mostly users belong to below 10000 income.

CO-RELATION OF INCOME Vs. USE OF VAS= -0.63

24. 78% users of VAS belong to 18-27 age group.

CO-RELATION OF AGE Vs. USE OF VAS= -0.3

SUGGESTIONS
1. SMS bones card rates should be minimized.

2. The company should go for increasing the users of GPRS.

3. The company should make attention on the users between age of 18-27
who are students.

4. The company should make efforts for increasing the new connection
users, who earns more than 20000.

5. The company should improve the service of 55655 and minimized its
tariff.

6. The company should make attention on Callertunes and SMS users.

7. The company should concentrate on the customers who are students


because there are very few customers below 18 years and should maintain
the customers above 40 years because they cover a large area of
consumption.

8. If we see education wise the company should attract the students who are
below 12th standard. Here the company has more opportunities for its
extension.

9. According to income of customers most of the customers are not


applicable, the company should go for those customers who earns more
income which is very less area of consumption. because high earning
society’s customers will increase the income level of the company.
10. Company’s most of the customers are old than one year. In last six months
there are very few buyers of connections. The company should
concentrate on this point and should satisfy the customers who have the
connection more than one year.

11. In the use of VAS, most of the customer are not using any facility. The
company should attract the customers of callertunes and GPRS users, most
of the customers like the bollywood songs callertunes and after that
Haryanvi songs. The company should provide the songs easily which they
like, which is a very good source of income for the company.

RECOMMENDATIONS
1. Sales promotion technique should be used to survive in the market and to
increase the sales of new customers.

2. Advertising media should be meaningful and able to persuade the


customers.

3. Vodafone should make attention on the young age generation and on those
customers who expend a large amount on calls and earners more than
20000.

4. Vodafone should provide the facility which the customers want after
buying the new connections.

5. The company should make their calls easy so that the customers can gain
knowledge of the services like 55655.

6. The company should concentrate for satisfying their customers. Vodafone


should provide the charming schemes for maintaining their old costumers
and for attracting new age generation.

7. Advertisement media should be like that the costumers can receive the
knowledge and information about Vodafone so that they can trust on it.

8. The company should launch the new schemes for babies which is a very
fresh and new idea for showing their concentration on all types of
costumers and fulfilling their needs.
LIMITATIONS
1. The responses collected are perception based so the nature variant can be
biasing factor.

2. The result of the study may not be universally applicable due to regional
constraint.

3. I was not able to cover the whole Rohtak city.

4. The time for research was limited.

5. The sample size was small.

6. Language constraints were encountered the project sometimes when the


questions had to transmitted to Hindi for response
ANNEXURE
Questionnaire
This questionnaire is being used for the research work for MBA summer internship under
MDU University and all the information provided will be kept confidential.

NAME

PHONE NUMBER

AGE GROUP
BELOW 18
18-27
27-40
40 AND ABOVE

INCOME (MONTHLY)
o 4,000 OR LESS
o 4,000-10,000
o 10,000-20,000
o 20,000 & ABOVE

EDUCATION
o BELOW 10th
o 10th TO 12th
o PURSUING GRADUATION
o GRADUATE

OCCUPATION
o SHOPKEEPER/BUSINESSMAN
o STUDENT
o EMPLOYEE
o FARMING
o OTHERS, please specfy
SINCE WHEN ARE YOU USING A VODAFONE CONNECTION
o LESS THAN 6 MONTHS
o 6-12 MONTHS
o MORE THAN AN YEAR

MONTHLY EXPENDITURE ON MOBILE PHONE


o BELOW 50
o 50-150
o 151-351
o 351-500
o 500 AND ABOVE

FROM WHERE DO YOU GET TO KNOW ABOUT THE NEW VALUE ADDED SERVICES
o HOARDINGS
o POSTER
o RADIO
o SMS / IVR CALLS
o RETAILER
o OTHERS, please specify

WHICH OF THE FOLLOWING VAS DO YOU USE


SMS
CALLER TUNES
GPRS
OTHERS, please specify

HOW MANY AVERAGE MESSAGES DO YOU SEND ON WEEKLY BASIS


LESS THAN 10
10 TO 25
25 TO 100
MORE THAN 100

ARE YOU SATISFIED WITH THE PRICE CHARGED FOR THE MESSAGES
□ YES
□ NO, specify reason
DO YOU USE THE SMS BONUS CARDS, IF 'YES', WHICH DENOMINATION
o YES
o NO, specify reason

WHICH CATEGORY CALLER TUNES DO YOU GENERALLY LIKE


HARYANVI SONGS
BOLLYWOOD
RELIGIOUS
ENGLISH
OTHERS, please specify

HOW OFTEN DO YOU CHANGE YOUR CALLER TUNES


LESS THAN A MONTH
1 TO 2 MONTHS
NEVER

HOW DO YOU CHANGE YOUR CALLER TUNE


SEND SMS
SELECT THROUGH CALLS FROM VODAFONE
PREE STAR* TO COPY

DO YOU EASILY GET THE SONGS YOU ARE LOOKING FOR


YES
NO

DO YOU KNOW ABOUT 55655 SERVICE, WHICH HELPS YOU SEARCH FIOR THE SON
TUNES
YES
NO

DO YOU KNOW THE TARRIFFS OF 55655 SERVICE


YES
NO

HOW DO YOU USE GPRS


ON THE MOBILE ONLY
ATTACH THE MOBILE TO THE COMPUTER
IF YOU USE GPRS, WHAT FACILITY DO YOU USE IN IT
SURFING OF INTERNET
DOWNLOADING
BOTH

WHICH SITES DO YOU SURF THROUGH GPRS


ONLY 'VODAFONE LIVE' AND OTHER ASSOCIATED SITES
OTHER THAT VODAFONE LIVE

WHAT KIND OF GPRS SUSCRIPTION WOULD YOU BE INTERSTED


DAILY
WEEKLY
15 DAYS SUBSCRIPTION
NIGHT PACKS

ANY OTHER INFORMATION WOULD YOU LIKE TO PROVIDE


LIST OF ABBREVIATIONS
• 2.75G – 2.75 Generation

• 3G – 3 Generation

• ARPU – Average Revenue Per User

• BSNL – Bharat Sanchar Nigam Ltd.

• CDMA – Code Division Multiple Access

• COAI – Cellular Operators Association of India

• GPRS – General Packet Radio Service

• GSM – Global System for Mobile Communication

• ISP – Internet Service Provider

• P2P – Peer to Peer

• SMS – Short Message Service

• STV – Special Tariff Voucher

• TRAI – Telecom Regulatory Authority of India

• VAS – Value Added Services

• VFS – Vodafone Store


BIBLIOGRAPHY
BIBLIOGRAPHY
Websites
1. http://www.vodafone.com/etc/medialib/public_policy_series.Par.56572.File.dat/p
ublic_policy_series_9.pdf

2. http://www.coai.com/statistics.php
3. http://www.vodafone.in/existingusers/pages/aboutus.aspx
4. http://en.wikipedia.org/wiki/Vodafone
5. http://en.wikipedia.org/wiki/Vodafone_Essar
6. http://www.vodafone.com/start/about_vodafone/who_we_are.html
7. http://enterprise.vodafone.com/global/about_vge/where_we_operate/footprint.jsp
8. http://jind.nic.in/statistics.html

Books
7. Kotler, Philip : Marketing Management

8. Kothari, C.R. : Research Methodology

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