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India, like many other countries of the world, have adopted a gradual
approach to telecom sector reform through selective privatization and
managed competition in different segments of the telecom market. The Indian
telecommunications industry is one of the fastest growing in the world and
India is projected to become the second largest telecom market globally.
Vodafone Essar in India is a subsidiary of Vodafone roup !lc and
commenced operations in "##$ when its predecessor %utchison Telecom
ac&uired the cellular license for 'umbai. In one of the biggest brand transition
e(ercises in recent times, %utch, country)s fourth*largest mobile service
provider was renamed Vodafone. +ith the entry of Vodafone which is the
world,s leading international mobile communications company in the Indian
Telecom sector the Indian consumers have benefited in terms of better
products and services- This has had a considerable impact on the users as
well as the service providers like .irtel, /eliance, Idea and Tata Teleservices.
The thesis work was undertaken to evaluate the marketing strategies of
Vodafone in India. The data for the thesis was collected using both primary
and secondary data.
0econdary data regarding growth of Indian Telecom Industry, Vodafone and
its strategies in India and other related facts was collected from the website of
T/.I, 12T and Vodafone.
!rimary data for the thesis was collected using a structured &uestionnaire
which was filled by ""3 mobile users in 1elhi region. The information collected
thereon was analyzed the impact of marketing strategies on the churn rate at
Vodafone. I have also collected some information from Vodafone 2fficial
using structured interview.
It was found that in 1elhi 4 56/ .irtel leads the subscriber tally vis*7*vis
Vodafone. Vodafone is preferred by many users for its value added services.
SS-2010-2012 TS12-M-344 ii
ISBE !B "SS 10-12 #
1ear 0289%.:. ;8'./ !.51.,
This is to inform you that the approved topic for project
thesis is * <'./;ETI5 0T/.TE: 2= V21.=25E>.
This email is an official confirmation that you would be
doing your project thesis work genuinely and shall try to
achieve the said objectives mentioned in the synopsis.
:ou must always use the thesis title as approved and
registered with us.
:our project thesis id 5umber is TS12-M-344.
:ou are re&uired to correspond with your Internal uide
'/.!80%! ?.'9. @pushp.lambaAiipm.eduB at regular
intervals before sending the thesis final draft to him.
1ipti 0harma
The Indian Institute of !lanning and 'anagement
!honeC 3"" D $EFG###H
=or any &uery please contactC
'andavi 0ingh
!hone C 3""I3"JG$"E
Email id C projectthesis"3"
SS-2010-2012 TS12-M-344 iii
BATCH ISBE-B (10-12)
PH.NO 0869772829
E.MAI!.ID "#$%&'()'.*'+,'66-(.'i/.0#.
THESIS TOPIC M'1234i+( S41'43() O5 6#,'5#+3
6#,'5#+3 i" 4&3 7#1/,8" /'1(3"4 .#%i/3 43/30#..$+i0'4i#+" 0#..$+i4)9
3.*/#)i+( #:31 69000 "4'55 '+, 7i4& #:31 1;0 .i//i#+ 0$"4#.31". T&3
%$"i+3"" #*31'43" i+ 26 0#$+41i3" 7#1/,7i,3. 6#,'5#+3 i" ' *$%/i0 /i.i43,
C#.*'+) 7i4& /i"4i+(" #+ 4&3 !#+,#+ '+, N37 Y#12 "4#02 3<0&'+(3".
a) +hat has been the growth of Indian Telecom 0ector in the past H years
and what are the reasons for the growth.
b) To enlist the key marketing strategies of Vodafone in India.
cB To conduct a primary research e(ploring the individual opinion about
Vodafone)s services in 1elhi 4 56/
SS-2010-2012 TS12-M-344 i:
S%&'()*+, D*-*: Te(t 9ook, .rticles, !ublished 'aterial, Kournals,
6ompany profiles, 6ompany .nnual /eports, Internet
P+./*+, D*-*:
- T''0 12%): Luestionnaire, !ie*6harts, !ersonal
Interview, 2pinion !oll.
- S*/30.(4 M%-5'): The techni&ue of /andom 0ampling was used in
analysis of the data. /andom 0ampling gives each possible sample
combination an e&ual probability of being picked up an each item in the entire
population to have an e&ual chance of being included in the sample.
- T*+4%- A1).%(&%: Vodafone 0tores, 'ini 0tores, etc.
Vodafone as we all know is the ever evaluating company of the modern times
it amazes us to see the outrageous growth of the company that kept wanting
everyone to have a piece of it. .lso this topic is commercially viableM it is
challenging and is available at the same time. .ll these parameters constitute
a good research proposal.
TOPIC .'1234i+( "41'43().
CO. NAME K#4'2 M'&i+,1' B'+2.
SS-2010-2012 TS12-M-344 :
I appreciate the co*ordination e(tended by my friends and also e(press my
sincere thankfulness to the entire faculty members of Indian Institute of
!lanning 4 'anagement, 1elhi, giving me the opportunity to do this
projectNstudy and also assisting me for the same.
SS-2010-2012 TS12-M-344 :i
6256?80I25 4 /E62''E51.TI250OOOOOOOOOOOO.. GH
SS-2010-2012 TS12-M-344 :ii
The telecom industry is one of the fastest growing industries in India. India
has nearly E33 million telephone lines making it the third largest network in
the world after 6hina and 80.. +ith a growth rate of $HP, Indian telecom
industry has the highest growth rate in the world.
%istory of Indian Telecommunications started in "GH" when the first
operational land lines were laid by the government near 6alcutta @seat of
9ritish powerB. Telephone services were introduced in India in "GG". In "GGI
telephone services were merged with the postal system. Indian /adio
Telegraph 6ompany @I/TB was formed in "#EI. .fter independence in "#$F,
all the foreign telecommunication companies were nationalized to form the
!osts, Telephone and Telegraph @!TTB, a monopoly run by the government,s
'inistry of 6ommunications. Telecom sector was considered as a strategic
service and the government considered it best to bring under state,s control.
The first wind of reforms in telecommunications sector began to flow in "#G3s
when the private sector was allowed in telecommunications e&uipment
manufacturing. In "#GH, 1epartment of Telecommunications @12TB was
established. It was an e(clusive provider of domestic and long*distance
service that would be its own regulator @separate from the postal systemB. In
"#GJ, two wholly government*owned companies were createdC the Videsh
0anchar 5igam ?imited @V05?B for international telecommunications and
SS-2010-2012 TS12-M-344 1
'ahanagar Telephone 5igam ?imited @'T5?B for service in metropolitan
In "##3s, telecommunications sector benefited from the general opening up of
the economy. .lso, e(amples of telecom revolution in many other countries,
which resulted in better &uality of service and lower tariffs, led Indian policy
makers to initiate a change process finally resulting in opening up of telecom
services sector for the private sector. 5ational Telecom !olicy @5T!B "##$
was the first attempt to give a comprehensive roadmap for the Indian
telecommunications sector. In "##F, Telecom /egulatory .uthority of India
@T/.IB was created. T/.I was formed to act as a regulator to facilitate the
growth of the telecom sector. 5ew 5ational Telecom !olicy was adopted in
"### and cellular services were also launched in the same year.
Telecommunication sector in India can be divided into two segmentsC =i(ed
0ervice !rovider @=0!sB, and 6ellular 0ervices. =i(ed line services consist of
basic services, national or domestic long distance and international long
distance services. The state operators @905? and 'T5?B, account for almost
#3 per cent of revenues from basic services. !rivate sector services are
presently available in selective urban areas, and collectively account for less
than H per cent of subscriptions. %owever, private services focus on the
businessNcorporate sector, and offer reliable, high* end services, such as
leased lines, I015, closed user group and videoconferencing.
6ellular services can be further divided into two categoriesC lobal 0ystem for
'obile 6ommunications @0'B and 6ode 1ivision 'ultiple .ccess @61'.B.
SS-2010-2012 TS12-M-344 2
The 0' sector is dominated by .irtel, Vodafone*%utch, and Idea 6ellular,
while the 61'. sector is dominated by /eliance and Tata Indicom. 2pening
up of international and domestic long distance telephony services are the
major growth drivers for cellular industry. 6ellular operators get substantial
revenue from these services, and compensate them for reduction in tariffs on
airtime, which along with rental was the main source of revenue. The
reduction in tariffs for airtime, national long distance, international long
distance, and handset prices has driven demand.
T%0%35'(% 3%(%-+*-.'( .( I().* "T'-*0 6'+7.(4 0.(%2#
0ourceC Indian 1epartment of Telecommunication
I().*( T%0%&'/: A T*0% '8 S-13%()'12
The past decade has seen an e(ponential growth in the Indian Telecom
0ector. In the year E333, Telecom /egulatory .uthority of India @T/.IB .ct
was amended and in E33" Telecom 1isputes 0ettlement and .ppellate
Tribunal @T10.TB started its functioning. In E33E, 9harat 0anchar 5igam
?imited @905?B entered into 0' cellular operation and made incoming calls
free for the first time and since then there is no looking back. 6urrently, the
call rates in India are one of the lowestM to the e(tent where some operators
are even offering !er*0econd*9illing.
SS-2010-2012 TS12-M-344
"#JG 'arch "##G 'arch E33H Kuly E33G 5ov E3"3
G33,333 "G.J million #G.IF million III.G$ million JH3 million
1espite the financial slowdown, the industry continued its high growth rate. In
E33# the Indian Telecom sector contributed H.JH to the country)s ross
1omestic !roduct @1!B and attracted a =oreign 1irect Investment @=1IB of
over QE billion. India is Third in the world in terms of the number of Telecom
subscribers. In addition to this, India has the second largest wireless network
in the world, ne(t only to 6hina. The government initiatives like announcement
of I policy and +i'a( rollout are bold steps in serving mass
communications. 0haring of the basic telecom infrastructure among the major
telecom players such as .irtel and Vodafone has also resulted in a pan India
The Telecom 0cenario can be broadly dissected into four categoriesC
"B /ural IndiaC 9ridging the Telecom 1ivide.
The emergence of /ural 'arket in India provides an e(tensive market place
for mobile industry. The adoption of I and 9roadband +ireless .ssociation
@9+.B is likely to galvanize competition and e(pand network coverage into
the hinterlands of the country. +ith in a short span of I years the rural tele*
density has jumped from $.HP to "#P. 6ommunications 'inister .. /aja
believes that the continued participation of private sector will help us achieve
the target of $3 percent rural tele*density well before the set timeline of E3"$.
EB India as hub for Telecom E&uipments 'anufacturing and E(ports.
In order to make the latest technology available in the market, focus is on
commercialization of telecom innovation and technology. This can contribute
towards inclusive growth by making low cost handsets available that support
affordable access in rural areas. The production of telecom e&uipments as of
SS-2010-2012 TS12-M-344 ?
'arch E33# was I5/ H"G billion with a 6./ of E#P during the last five
years. .t the same time I5/ G" billion of telecom e&uipments were e(ported
with a 6./ of "33P during the last five years.
IB V.0, 'obile 9anking and '*commerce
Value .dded 0ervices @V.0B has an immense potential to grow with services
like 'obile banking and 'obile *commerce. 6ontent development, pricing and
innovative strategies are the key factors for driving the V.0 demand.
$B E(ploring 5ew =rontiers
+ith growing competitive pressure on all fronts and the inevitable need to
keep pace with emerging technologies globally, telecom operators are re*
e(amining their traditional business models and are making substantial
investments in upcoming technologies. These include I 9and .llocation,
+orldwide Interoperability for 'icrowave .ccess @+i'a(B and =uture
eneration 5etworks.
6onsidered to be the fastest growing telecommunications industry in the
world, India is divided into a total of EE telecom circles with multiple carriers
operating in each circle. !rivate operators control GF.#P of the wireless
market share while state*owned operators 905? and 'T5? hold "E."P of the
market share. The number of mobile phone subscribers in India rose to
G"".H# million in 'arch, E3"" with the addition of E3.E" million connections.
GSM O3%+*-'+ T'-*0 S192&+.9%+
B*2% ! F%9+1*+,
M*+7%- S5*+%
9harti .irtel "HG,##G,GJ# EG.JHP
Vodafone Essar "I3,#E3,FIE EI.H#P
I1E. 6ellular GJ,G33,G3# "H.J$P
905? GH,3#G,E33 "H.IIP
.ircel HI,H33,$J# #.J$P
SS-2010-2012 TS12-M-344
8ninor E",HFF,HH3 I.G#P
Videocon J,HJ$,3GI "."GP
'T5? H,"FG,J"F 3.#IP
?oop 'obile I,3F#,EG" 3.HHP
0Tel E,J#E,FFF 3.$#P
Etisalat 19 @6heer 'obileB J,HE,IFF 3."EP
A00 I().* "%:&01).(4 R%0.*(&% ; T*-*# <<<=0>3=3?@ 100A
%owever, according to Telecom /egulatory .uthority of India @T/.IB, of the
total G"".H# million wireless subscribers in 'arch, only HFI.#F million
subscribers were active subscribers on the date of peak visitor location
register @V?/B. V?/ is a temporary database of the subscribers who have
roamed into the particular area, which it serves. Each base station in the
network is served by e(actly one V?/, hence a subscriber cannot be present
in more than one V?/ at a time.
The growth in this category was led by Vodafone, which added I.JH million
users to take its subscriber base to "I$.HF million users.
/eliance 6ommunications followed ne(t with an addition of I.H$ million
new subscribers, taking its subscriber base to "IH.FE million.
Telecom giant 9harti .irtel added I.E million subscribers to take its total
number of customers to "JE.E million.
Idea 6ellular added E.F million subscribers, increasing its subscribers
count to G#.H million while 8ninor added ".E" million subscribers to have
EE.F# million subscribers.
A.+&%0 has added ",JJE,#GH users and made its Total subscriber base
BSNL has added E,E3E,#"F users and made its Total subscriber base
L''3 has added "F,H$" users and made its Total subscriber base
MTNL has added IF,HGJ users and made its Total subscriber base
SS-2010-2012 TS12-M-344 6
V.)%'&'( 0'2- *",I3G,IF3 and its Total subscriber base decreased to
.ccording to a !w6 report titled, ,Indian I broadband subscribers,, RThe
mobile subscriber base is projected to cross one billion in E3"$.R In addition,
the report said the boom in the telecom sector is e(pected to continue for the
ne(t three to five years, driven by high subscriber additions, mostly in non*
urban areas.
raph below shows 0ervice !rovider wise 'arket 0hare as on I3*J*E3"3.
N%6 P0*,%+2 .( -5% T%0%&'/ I()12-+,
The stupendous growth of the telecommunication companies in India over the
last fifteen years can be attributed to the liberal government of India,
economic policy. The economic renaissance affected in the early "##3s
brought around a paradigm shift on the overall business scenario of India. The
SS-2010-2012 TS12-M-344 7
telecommunication companies in India went through a huge make*over during
the implementation of the open*market policy of India.
The erstwhile closed market policy was replaced by a more liberal form of
economic policy. . whole new form of Indian Telecommunication !olicy was
drafted to compliment the change effected in the economic policy of India.
The amendment affected the new telecommunication policy of India made
huge changes with respect to investments and entry of =oreign 1irect
Investments @=1IB and =oreign Institution Investors @=IIB respectively, into the
virgin Indian telecommunication market. This resulted entry of private,
domestic and foreign telecommunication companies in India.
The economic contribution made by these newly formed telecommunication
companies of India is really mentioned worthy and this industry witnessed
highest growth after the Indian Information Technology industry. The robust
growth of Indian economy after the economic liberalization in the "##3s
induced massive change in the telecom policy and new draft was framed and
implemented by the ,Telecom /egulatory .uthority of India, @T/.IB and
,1epartment of Telecommunication, @12TB, under the 'inistry of
Telecommunication government of India. The main aim of these
telecommunication companies in India is to provide basic telephony services
to each and every Indian.
F'00'6.(4 *+% -5% (%6 30*,%+2 .( T%0%&'/ I()12-+, .( I().*
SS-2010-2012 TS12-M-344 8

SS-2010-2012 TS12-M-344 9
V')*8'(% G+'13 30& is a global telecommunications company head&uartered
in ?ondon, 8.;. It is the world,s largest mobile telecommunications company
measured by revenues and the world,s second*largest measured by
subscribers @behind 6hina 'obileB, with around I$" million proportionate
subscribers as of 5ovember E3"3. It operates networks in over I3 countries
and has partner networks in over $3 additional countries. It owns $HP of
Verizon +ireless, the second*largest mobile telecommunications company in
the 8nited 0tates measured by subscribers. Vodafone had about "I$.H million
customers as of =ebruary E3"" in India.
The name Vodafone comes from V' .&% )* -* 8'(% , chosen by the company to
Rreflect the provision of voice and data services over mobile phones.R
Vodafone is primarily a user of technology rather than a developer of it, and
this fact is reflected in the emphasis of our work program on enabling new
applications of mobile communications, using new technology for new
services, research for improving operational efficiency and &uality of our
networks, and providing technology vision and leadership that can contribute
directly to business decisions.
SS-2010-2012 TS12-M-344 10
2ur Vision is to be the world)s mobile communication leader D enriching
customers) lives, helping individuals, businesses and 6ommunities be more
connected in a mobile world.
V')*8'(% E22*+
Vodafone Essar is an Indian subsidiary of Vodafone group and commenced
its operations in "##$ when its predecessor %utchison Telecom ac&uired the
cellular license for 'umbai. The company now has operations across the
country with over ""G.3$ million 0' mobile customers. 2ver the years,
Vodafone Essar, has been named the S'ost /espected Telecom 6ompany),
the S9est 'obile 0ervice in the country Sand the S'ost 6reative and 'ost
Effective .dvertiser of the :ear).
Vodafone ac&uired an indirect controlling interest in Vodafone Essar, their
local operating company in India, in E33F*3G. Vodafone currently has e&uity
interests in I" countries across five continents and around $3 partner
networks worldwide.
Vodafone Essar is now largest operating company for Vodafone when
measured by customer numbers and its sheer scale and rapid growth makes
it uni&ue. It has nearly "3,333 employees and employs more than #3,333
contractors. The network is rapidly e(panding to meet demand and e(tend
telecommunications to more rural areas, with more than E,H33 new base
stations deployed each month.
*# '+% '/3%-%(&.%2:
Vodafone)s primary aim is to be a world leader in mobile communication and
at the same time provide a uni&ue e(perience to the customers who use their
services. 9y analysing the overall structure of the company, it can be
understood that reliable innovative services and the customer centric passion
are the core products of the company.
SS-2010-2012 TS12-M-344 11
The brand image of Vodafone is very strong in the market and a continuous
recycling of their campaigns from the pug to Too zoo)s to the present
blackberry boys advertisements has guaranteed their brand a high recall
Their innovative products like <6hotta recharge>, handsets priced as low as
/s F33, the new solar powered phone V=E$F , .ndroid mobile phone %T6
and the soon to be launched i!hone $ in the Indian market or services like
Vodafone Tuesdays has made it sure that Vodafone stays ahead of its
competitors and at the same time, their subscriber base goes on increasing.
Vodafone has also been successful in creating synergies by ac&uiring
companies around the globe. In India, also, Vodafone entered the market by
ac&uiring %utch and in no time established itself as a leading player in the
telecom market.
9# M*+7%- P+'23%&-2 / P%(%-+*-.'(:
Vodafone)s intention to tap the price sensitive rural market comes with its low
cost offerings such as low priced 'agic 9o( which has a bundled low priced
handset along with prepaid card and various freebies. !roducts like Vodafone
"H3 priced at /s. F## and eco*friendly solar charging handset V= E$F will
help Vodafone to penetrate the rural market in a big way. To penetrate the
urban market, Vodafone is coming up with .pple i!hone $ and 9lackberry
0ervices for everyone.
The =I!9 has also cleared the Vodafone)s applications for national and
international long distance @5?1 4 I?1B and internet service provider @I0!B
license which will further take its market in a new domain.
&# '/3%-.-.B% A)B*(-*4%:
=rom product innovation to technological advantage, Vodafone as a brand
keeps on improving and coming up with new plans. Vodafone adjusts
according to the changing market which gives them a competitive advantage.
Vodafone has from time to time come with creative advertising campaign for
its various plans which has captured the imagination of millions. Vodafone)s
SS-2010-2012 TS12-M-344 12
plans like <6hota /echarge> and number of add on plans like these has made
it sure that it maintains an edge over its competitors. Vodafone pursues a
global international corporate*level strategy and has heavily focused on
ac&uisitions like %utch ac&uisition in India. Vodafone has also pursued a
focused cost leadership business*level strategy of e(clusive focus on the
mobile telephony industry in India with no distractions that faced their
competitors @such as fi(ed*line telephonyB.
B*+4*.(.(4 P'6%+ '8 B1,%+2: The buyers in the mobile telephony industry
are strong. These powerful buyers can reduce the cost leaders prices, but not
past the level of their closest competitor. This ensures Vodafone will continue
to profit at above average returns compared to its closest competitor.
B*+4*.(.(4 P'6%+ '8 S1330.%+2: 0uppliers of the mobile telephony industry
are strong. Vodafone, by being a cost leader, operates with margins greater
than its competitors, which, in turn, allows them to absorb price increases
from its suppliers easier than its competitors. 9y being a large, focused player
of the mobile telephony industry, Vodafone could hold suppliers costs down,
and it could make a profit even if its competitors are making only average
P'-%(-.*0 E(-+*(-2: +hile the threat of new entrants is weak, Vodafone must
continue to reduce costs below that of its competitors. 9y maintaining high
SS-2010-2012 TS12-M-344 1;
levels of efficiency, Vodafone can help make the entrance into the 'obile
telephony industry unattractive to its potential competitors.
P+')1&- S192-.-1-%2: Vodafone faces a low threat of product substitutes. The
focused cost leadership strategy that Vodafone operates under makes it
difficult for a comparable substitute to be produced at a lower rate by their
e(cellent use of economies of scale, their buying power, and their absorption
of temporary price increases that come from suppliers that donSt need to be
passed on to the consumer.
I()12-+, R.B*0+,: Vodafone faces a very high industry rivalry from its
competitors because as the differtent mobile opperaters slashes its rate per
call or provides any new services then they also have to provide to its
S-+%(4-5: The main strength of Vodafone within the telecommunications
market lies in its brand image and recognition. Vodafone, having established
a global presence and having invested highly in marketing a differentiated
image by promoting a Vodafone life style, currently enjoys a differentiating
advantage that, if e(ploited properly, can offer a lead in competition. The
presence of Vodafone in numerous countries within Europe as well as in all
part of the world enhances this image. It allows customers to travel and enjoy
easily the services of their home country operator. It has established strategic
alliance to provide better service to client.
W%*7(%22%2: The e(pansion of Vodafone has been completed at the
e(pense of direct control of its operations. The company grew through a
process of ac&uisitions of national telecommunications companies @e.g. the
ac&uisition of the third biggest 6zech mobile phone operator, 6esky mobileB
rather than organic growth. This increased its subscribers) base &uickly,
offering direct market knowledge and immediate additions of customer bases
at the e(pense of direct effective control of the subsidiaries. .t the same time
though, it implicitly imposed a centralized operational structure for the group,
nominating the 8; head&uarters as the leading business unit running a much
SS-2010-2012 TS12-M-344 1?
centralised marketing and handset procurement at group level. This has
resulted in the neglect of local markets and local differences, allowing market
share to be gained by smaller local competitors. 1ue to the highly saturated
+estern European market this has resulted in an increase in the price
elasticity of demand, with consumers becoming continuously price oriented.
This has resulted in high customer churn rates reaching the level of IE.GP in
the 8; compared to 2E)s E$P.
O33'+-1(.-.%2: The telecommunications market, even though highly
saturated in some regions offers great potential due to the ageing population
and the sophistication of the consumers. It offers great opportunities through a
careful market segmentation and e(ploitation of particular profitable
segments. 1ifferent strategies should be pursued D simple phones and
simplified pricing plans to the ageing population and more updated,
sophisticated solutions for younger generations. The e(panding 9oundaries of
the market could provide further opportunities by allowing Vodafone to enter
more aggressively into fi(ed line service and to better enjoy the benefits of
its high investment in I technology. 'oreover the company has undertaken
its first steps in establishing strategic alliances to develop customized
solutions for end users.
T5+%*-2: The European part of Vodafone)s market is characterized by e(isting
high levels of competition. 'ajor brands such as 2E and T 'obile are
e(ploiting the price sensitivity of customers and in this way they are building a
stronger image and presence in the market. Indirect competition is also
increasing further, through the presence of 0kype and other related @not only
voiceB Internet based services. This combined with the upcoming European
legislative measures is e(pected to limit further the tariffs for the network
providers imposing further need for price cuts which could harm the bottom
line profitability of the company.
SS-2010-2012 TS12-M-344 1
P+')1&- S%4/%(-*-.'(

6ustomers are typically classified as prepaid or contract customers. !repaid
customers pay in advance and are generally not bound to minimum
contractual commitments, while contract customers usually sign up for a
predetermined length of time and are invoiced for their services, typically on a
monthly basis. Increasingly, Vodafone offers 0I' only tariffs allowing
customers to benefit from the Vodafone network whilst keeping their e(isting
T5% 8'00'6.(4 2%4/%(-*-.'( B*+.*90%2 *+% 12%) 9, V')*8'(% .( '+)%+
-' 2%4/%(- -5% /*+7%- :
G%'4+*35.&C Vodafone segments its market as metros, .*circle, 9*circle
and 6* circle. %ere, the segmentation is done on the basis of regions in
which they operate. .lso, rural and semi*urban markets are fast emerging
as profitable market segment, so Vodafone is trying to enhance its
operations effectively further in these segment.
SS-2010-2012 TS12-M-344
Vodafone further segments its market according to various income levels and
have various plans for every strata of society.
Vodafone does not primarily segment its market on the basis of age but they
have specific plans for youth.
N*-1+% '8 -5% 12-'/%+C
1epending on the fact that whether the customer is institutional or sole, the
services and plans provided by Vodafone varies and thus, it forms an
important bases for segmentation.
L.8%2-,0% *() P%+2'(*0.-,C
Vodafone segments its users on the type of service they use based on their
lifestyle such as different plans for students, professionals etc .
B%(%8.-2 S'145-C
Vodafone segments its customers on the basis of the benefits sought by them
such as such asC local call ,0T1 call or I01 call makers M users of value added
services, connectivity , coverage.
U2*4% R*-% C
Vodafone also classify its users as one with heavy usage rate, medium usage
rate and light usage rate and have different targeting schemes for each of
T,3% '8 -5% 2%+B.&%:
The Type of the service provided by Vodafone to its customers also plays a
crucial role in deciding the segmentation strategy implemented by Vodafone.
SS-2010-2012 TS12-M-344 17
The roup continues to grow usage and penetration across all business
segments. VE manages the roup)s relationship with Vodafone)s EF3
largest multinational corporate customers. VE simplifies the provision of
fi(ed, mobile and broadband services for '56s who need a single
operational and commercial relationship with Vodafone worldwide. It provides
a range of managed services such as central ordering, customer self*serve
web portals, telecommunications e(pense management tools and device
management coupled with a single contract and guaranteed service level
The roup continues to e(pand its portfolio of innovative solutions offered to
small office home office @S0o%o)B, 0'E and corporate customers. Increasingly
these combine fi(ed and mobile voice and data services integrated with
productivity tools.
Vodafone has full market coverage with differentiated offerings. 'arket is
targeted through many different tariffs, services and propositions for every
segment according to specific customer preferences and needs. These often
bundle together asC voice, messaging, data and increasing value added
services. The various e(amples for this includeC
%ome calling cards for the family of those professionals who use to
work abroad.
/s."3 recharge for small users
6heap 0'0 facility for youths
=acilities for circle users etc
Vodafone has continued to build brand value by delivering a superior,
consistent and differentiated customer e(perience. Their tagline CW5%+% %B%+
SS-2010-2012 TS12-M-344 18
,'1 4' '1+ (%-6'+7 8'00'62D gives the customer indication of their vast
They differentiated themselves from other mobile service providers by
delivering the promise of <helping customers make the most of their time> and
their communication strategy has always focussed on CH*33, -' 5%03D which
tends to strike an emotional chord with the customer.
The roup)s vision is <to be the communications leader in an increasingly
connected world> e(panding the roup)s category from mobile only to total
communications. To enable the consistent use of the Vodafone brand in all
customer interactions, a set of detailed guidelines has been developed in
areas such as advertising, retail, online and merchandising.
In .pril E33# a campaign, focusing on the different value added services
@V.0B offered by the company was launched, introduced new characters
called the Toozoos who seem to be in between the world of animation and
reality. 0everal advertisements in which the Toozoos featured were shown on
television during the Indian !remier ?eague @I!?B 0eason E and were instant
hit among the customers but the conversion of this e(citement into revenue is
yet to be seen.
V'.&% 2%+B.&%2
!re D !aid
!ost D !aid
V*01% A))%) S%+B.&%2
Tunes and downloads
5ews and 8pdates
SS-2010-2012 TS12-M-344 19
6all 'anagement 0ervices
'ail, 'essaging
1ial in 0ervices
9ill Info
V')*8'(% L.B%
V')*8'(% B12.(%22 S'01-.'(2
'ail on the move
9usiness application
Vodafone 2ffice
Vodafone 9usiness 0olution
SS-2010-2012 TS12-M-344 20
Vodafone Essar is the second largest 0' operator in India after .irtel from
the perspective of market share and subscriber base and is increasingly
e(panding its share @the detail figures are given in .ppendi(B . It still is &uite
far from .irtel due to .irtel)s strong presence in rural areas and loyal customer
base along with larger reach and first mover advantage.
SS-2010-2012 TS12-M-344 21
Vodafone)s products and services are available directly, via Vodafone stores
and country specific Vodafone websites, and indirectly via third party service
providers, independent dealers, distributors and retailers, to both consumer
and business customers in the majority of markets under the Vodafone brand.
12-'/%+ 2-+*-%4, *() /*(*4%/%(-
12-'/%+ D%0.45- I()%::
The Vodafone roup has created a lobal 6ustomer Value 'anagement
team to support operating companies with their aim to engage with customers
directly through a data driven approach. /ecent e(amples of this includeC
rollout of a consistent and innovative store, successful trial of an innovative
handset based self service solution and creation of a global training academy
for customer facing staff.
Vodafone continues to use a customer measurement system called <customer
delight> to monitor and drive customer satisfaction in the roup)s controlled
markets at a local and global level which identifies areas for improvement and
M*+7%-.(4 *() 9+*():
". "I$.H million Vodafone subscribers across India @E3""B.
E million new subscribers a month on average
"GP market share
SS-2010-2012 TS12-M-344 22
L'4' a new visual identityUfrom the deep pink logo of %utchison*Essar to
Vodafone)s trademark deep red speech mark introduced in "##G.
The inaugural TV commercial showed the trademark pug @minus the boyB
moving out of a pink kennel into a red one. .n energetic version of %utch)s
signature S:ou and I) tune played towards the end, as the super concluded,
S6hange is good. %utch is now Vodafone). There were four more commercials
featuring %utch)s animated boy and girl, introducing the new brand)s logo to
Vodafone put in close to /s "H3 crore into the first phase of the rebranding
e(erciseUwith /s J3 crore in mass media and another /s #3 crore in retail
In the second phase, Vodafone ushered in its global straplineU<'ake the
most of now>, which replaced <%ow are you-> in E33". 9y then it was
apparent, the boy*and*pug chapter would soon be over. In E33G, Vodafone
used the platform of cricket when it unveiled the S%appy to %elp) series during
the first season of the Indian !remier ?eague @I!?B.
This season the Toozoos are all the rage. These characters have virtually
hijacked the online media as well as televisionUto convey a value added
service @V.0B offering in each of the new commercials.
In Indian scenario when other major telecom service providers are using
celebrities@.irtel*0hahrukh ;han, 905?*1eepika !adukone, .ircel*'ahendra
0ingh 1honi, Idea*.bhishek 9achchanB as their brand ambassadors,
SS-2010-2012 TS12-M-344 2;
Vodafone is standing out proudly with Toozoos and pug as successful ad
P+')1&-2 *() 2%+B.&%2 .( I().*:
.verage cost of callsC E 80 cents per minute
.verage revenue per customerC 80QJ.$ per month
GHI,3I# points of sale, covering JHP of the population
+ith more than I million Vodafone*branded, affordable handsets sold
in E33GN3#, Vodafone ranks among the top five handset brands in India
B+*() *() &12-'/%+ &'//1(.&*-.'(2
In the 9randT most powerful brands rankingC R*(7%) 11-5 40'9*00,.
In telecom industry it proudly stands as world no. E after 6hina no. E
0' service provider in India after .irtel
. new 'arketing =ramework has been developed and implemented across
the business, which includes a new vision of e(panding the roup)s category
from mobile only to total communications <-' 9% -5% &'//1(.&*-.'(2 0%*)%+
.( *( .(&+%*2.(40, &'((%&-%) 6'+0)D. 9rand and customer e(perience
continues to implement Vodafone)s promise of <helping customers make the
most of their time>. The brand function has also developed a methodology to
develop competitive local market brand positioning, with local brand
positioning projects now implemented in "E markets.
In 0eptember E33F, Vodafone welcomed India with the <%utch is now
Vodafone> campaign. The migration from %utch to Vodafone was one of the
fastest and most comprehensive brand transitions in the history of the roup,
with $33,333 multi brand outlets, over IH3 Vodafone stores, over ",333 mini
stores, over IH mobile stores and over I,333 touchpoints rebranded in two
months, with J3P completed within $G hours of the launch.
B+*() H%*0-5 T+*&7.(4:
SS-2010-2012 TS12-M-344 2?
Vodafone regularly conducts 9rand %ealth Tracking since E33E, which is
designed to measure the brand performance against a number of key metrics
and generate insights to assist the management of the Vodafone brand
across all Vodafone branded operating companies.
Vodafone majorly sponsors the following teams and events, apart from
various regional and timely sponsorshipC
;shitij, .nnual Techno*management festival of IIT ;haragpur, 0trategic
!artner E33G
Indian !remier ?eague @6ricketB, .ssociate sponsor
England cricket team
Vodafone 'c?aren 'ercedes =ormula 2ne team, title sponsor
Triple G /ace Engineering, VG 0upercars team, primary sponsor @since
D.+%&- ).2-+.91-.'(-N1/9%+ '8 ).+%&-0, '6(%) 2-'+%2 - 11<0
Vodafone directly owns and manages over ","H3 stores. These stores sell
services to new customers, renew or upgrade services for e(isting customers,
and in many cases also provide customer support.
. standard store format, which was tested in E33J, was rolled out in ""
markets during the E33G financial year. .ll stores in India were rebranded as
Vodafone and over $3 stores were refurbished to the roup)s standard
The roup also has J,H33 Vodafone branded stores, which sell Vodafone
products and services e(clusively, by way of franchise and e(clusive dealer
SS-2010-2012 TS12-M-344 2
The internet is a key channel to promote and sell Vodafone)s products and
services and to provide customers with an easy, user friendly and accessible
way to manage their Vodafone services and access support.
.dditionally, in most operating companies, sales forces are in place to sell
directly to business customers and some consumer segments.
SS-2010-2012 TS12-M-344 26
I().+%&- ).2-+.91-.'(
The e(tent of indirect distribution varies between markets but may include
using third party service providers, independent dealers, distributors and
The roup hosts 'V52s in a number of markets. These are operators who
buy access to e(isting networks and resell that access to customers under a
different brand name and proposition. +here appropriate, Vodafone seeks to
enter mutually profitable relationships with 'V52 partners as an additional
route to market.
P+%2%(&% .( I().*:
!resence in all EI Indian telecom circles @up from "J in E33FN3GB
2ver FG,333 base stations across India
.round E,J33 new base stations deployed each month
5etwork deployment and maintenance of HJ,#II base stations in "J
circles outsourced to Indus Towers, of which Vodafone Essar has a
$EP shareholding
G,"JI base stations directly managed by Vodafone Essar in the
remaining seven circles
. further "I,EEH base stations shared with other operators
=actors affecting growth of mobile telecommunication
'arket potential
9uying decision process
6ountry)s political, social and economic scenario
overnment policies and business climate@Interest rates and InflationB
SS-2010-2012 TS12-M-344 27
Technology and 0pecial zones
Income levels
Employee skills and unionization of employees
Ethical considerations
6hanging ?ifestyles of 6onsumers
The following discussion of principal risk factors and uncertainties identifies
the most significant risks that may adversely affect the roup)s business,
operations, li&uidity, financial position or future performance.
A)B%+2% /*&+' %&'('/.& &'().-.'(2 .( -5% /*+7%-2 .( 65.&5 -5% G+'13
'3%+*-%2 &'10) ./3*&- -5% G+'13F2 +%210-2 '8 '3%+*-.'(2.
.dverse macro economic conditions and further deterioration in the global
economic environment, such as a )%%3%(.(4 +%&%22.'( '+ 81+-5%+
%&'('/.& 20'6)'6( in the markets in which the roup operates, may lead
to a reduction in the level of demand from the roup)s customers for e(isting
and new products and services. In difficult economic conditions, consumers
may seek to reduce discretionary spending by reducing their use of the
roup)s products and services, including data services, or by switching to
lower*cost alternatives offered by the roup)s competitors. 0imilarly, under
these conditions the enterprise customers may delay purchasing decisions,
delay full implementation of service offerings or reduce their use of the
roup)s services. In addition, number of the roup)s consumer and enterprise
customers that are unable to pay for e(isting or additional services might
increase, having material adverse effect on the roup)s results of operations.
T5% &'(-.(1%) B'0*-.0.-, '8 6'+0)6.)% 8.(*(&.*0 /*+7%-2 /*, /*7% .-
/'+% ).88.&10- 8'+ -5% G+'13 -' +*.2% &*3.-*0 %:-%+(*00,= 65.&5 &'10) 5*B%
* (%4*-.B% ./3*&- '( -5% G+'13F2 *&&%22 -' 8.(*(&%.
SS-2010-2012 TS12-M-344 28
The roup)s key sources of li&uidity in the foreseeable future are likely to be
cash generated from operations and borrowings through long term and short
term issuances in the capital markets as well as committed bank facilities.
1ue to the recent volatility e(perienced in capital and credit markets around
the world, new issuances of debt securities may e(perience decreased
demand. .dverse changes in credit markets or Vodafone)s credit ratings
could increase the cost of borrowing and banks may be unwilling to renew
credit facilities on e(isting terms.
R%410*-'+, )%&.2.'(2 *() &5*(4%2 .( -5% +%410*-'+, %(B.+'(/%(- &'10)
*)B%+2%0, *88%&- -5% G+'13F2 912.(%22.
.s the roup has ventures in a large number of geographic areas, it must
comply with an e(tensive range of re&uirements that regulate and supervise
the licensing, construction and operation of its telecommunications networks
and services. In particular, there are agencies which regulate and supervise
the allocation of fre&uency spectrum and which monitor and enforce
regulation and competition laws which apply to the mobile
telecommunications industry. 1ecisions by regulators regarding the granting,
amendment or renewal of licences, to the roup or to third parties, could
adversely affect the roup)s future operations in these geographic areas.
.dditionally, decisions by regulators and new legislation, such as those
relating to international roaming charges and call termination rates, could
affect the pricing for, or adversely affect the revenue from, the services the
roup offers.
I(&+%*2%) &'/3%-.-.'( /*, +%)1&% /*+7%- 25*+% *() +%B%(1%.
The roup faces intensifying competition and its ability to compete effectively
will depend on, among other things, network &uality, capacity and coverage,
the pricing of services and e&uipment, the &uality of customer service,
development of new and enhanced products and services, the reach and
&uality of sales and distribution channels and capital resources. 6ompetition
could lead to a reduction in the rate at which the roup adds new customers,
a decrease in the size of the roup)s market.
SS-2010-2012 TS12-M-344 29
The focus of competition in many of the roup)s markets continues to shift
from customer ac&uisition to customer retention as the market for mobile
telecommunications has become increasingly penetrated. In addition, the
roup could face increased competition should there be an award of
additional licences in jurisdictions in which a member of the roup already
has a licence.
The roup uses technologies from a number of vendors and makes
significant capital e(penditures in connection with the deployment of such
technologies. The introduction of software and other network components
may also be delayed. The failure of vendor performance or technology
performance to meet the roup)s e(pectations or the failure of a technology to
achieve commercial acceptance could result in additional capital e(penditures
by the roup or a reduction in profitability.
T5% G+'13 /*, %:3%+.%(&% * )%&0.(% .( +%B%(1% '+ 3+'8.-*9.0.-,
('-6.-52-*().(4 .-2 %88'+-2 -' .(&+%*2% +%B%(1% 8+'/ -5% .(-+')1&-.'( '8
(%6 2%+B.&%2.
.s part of its strategy, the roup will continue to offer new services to its
e(isting customers and seek to increase non*voice service revenue as a
percentage of total service revenue. %owever, the roup may not be able to
introduce these new services commercially, or may e(perience significant
delays due to problems such as the availability of new mobile handsets,
higher than anticipated prices of new handsets or availability of new content
services. In addition, there is no assurance that revenue from such services
will increase ./!8 or maintain profit margins.
E:3%&-%) 9%(%8.-2 8+'/ &'2- +%)1&-.'( .(.-.*-.B%2 /*, ('- 9% +%*0.2%).
The roup has entered into several cost reduction initiatives principally
relating to network sharing, the outsourcing of IT application, development
and maintenance, data centre consolidation, supply chain management and a
business transformation programme to implement a single, integrated
operating model using one E/! system. %owever, there is no assurance that
SS-2010-2012 TS12-M-344 ;0
the full e(tent of the anticipated benefits will be realised in the timeline
5*(4%2 .( *221/3-.'(2 1()%+0,.(4 -5% &*++,.(4 B*01% '8 &%+-*.( G+'13
*22%-2 &'10) +%210- .( ./3*.+/%(-.
Vodafone completes a review of the carrying value of its assets annually, or
more fre&uently where the circumstances re&uire, to assess whether those
carrying values can be supported by the net present value of future cash flows
derived from such assets.This includes an assessment of discount rates and
long term growth rates, future technological developments and timing and
&uantum of future capital e(penditure, as well as several factors which may
affect revenue and profitability identified within other risk factors in this section
such as intensifying competition, pricing pressures, regulatory changes and
the timing for introducing new products or services.
T5% G+'13F2 4%'4+*35.& %:3*(2.'( /*, .(&+%*2% %:3'21+% -'
1(3+%).&-*90% %&'('/.&= 3'0.-.&*0 *() 0%4*0 +.272.
.s the roup increasingly enters into emerging markets, the value of the
roup)s investments may be adversely affected by political, economic and
legal developments which are beyond the roup)s control.
E:3%&-%) 9%(%8.-2 8+'/ .(B%2-/%(- .( (%-6'+72= 0.&%(&%2 *() (%6
-%&5('0'4, /*, ('- 9% +%*0.2%).
The roup has made substantial investments in the ac&uisition of licences
and in its mobile networks, including the roll out of I networks.There can be
no assurance that the introduction of new services will proceed according to
anticipated schedules or that the level of demand for new services will justify
the cost of setting up and providing new services.
T5% G+'13F2 912.(%22 6'10) 9% *)B%+2%0, *88%&-%) 9, -5% ('(-21330, '8
%G1.3/%(- *() 2133'+- 2%+B.&%2 9, * /*H'+ 21330.%+.
6ompanies within the roup, source network infrastructure and other
e&uipments as well as network*related and other significant support services,
from third party suppliers. The withdrawal or removal from the market of one
SS-2010-2012 TS12-M-344 ;1
or more of these major third party suppliers could adversely affect the roup)s
operations and could result in additional capital or operational e(penditures by
the roup.
F*&-'+2 *() T+%()2 R%0%B*(- 8'+ F1-1+% P'0.&, I(.-.*-.B%2
9ased on global trends and Indian e(perience, the rate of growth of
cellular mobile services would continue to be higher for a number of
years. Its two important implications are further lowering of *B%+*4%
&'2- 3%+ 0.(% and &%0010*+ /'9.0%/WLL-M 9%&'/.(4 * /*H'+ -''0 '8
%:3*(2.'( .( +1+*0 *+%*2.
T5% &*3.-*0 +%G1.+%/%(- 8'+ .(B%2-/%(-2 in the ne(t five years are
e(pected to be lower than the present cost due to continuing decline in
e&uipment cost as well as lower network costs due to competition
resulting from entry of infrastructure providers /ailways, !ower rid
6orporation, etc. and huge capacity addition by other players.
A 2/*00 3'+-.'( '8 -5% 2192&+.9%+ 9*2% 3+'B.)%2 * 0*+4% 25*+% '8
&*00 +%B%(1%. %igh revenue subscriber category would form the core of
competition among operators which may lead to a fall in the tariffs
applicable to this type i.e. long distance calls. .s a result, long distance
tariffs may be even lower than those specified by the regulator.
M*+4.( '8 21+3012 will decline over time due to competition. %owever,
the break*even revenue per subscriber will also be lower due to decline
in costs.
D*-* 2%+B.&%2 are e(pected to grow much faster than voice telephony.
This underlines the need in due course to focus on broad*band
linkages to enable the provision of these services at the re&uired rate.
1ue -' 0*+4% 1(&'B%+%) *+%*2 .( +1+*0 *() +%/'-% +%4.'(2 of the
country which are also e(pected to be low paying is going to bring the
ne(t revolution in the telecom sector.
SS-2010-2012 TS12-M-344 ;2
The trend towards convergence of services may lead to major changes in the
structure of industry and markets.
The new mantra for the Telecom sector isC
'arket N!roducts
!resent 5ew
!resent P+%3*.)/P'2--3*.)
5ew R1+*0 S%&-'+ M2M 2%+B.&%2=W.B+'
1. M*+7%- 3%(%-+*-.'( "P+%2%(- /*+7%-/P+%2%(- 3+')1&-2#:
0ince Vodafone is still riding high on it)s current zoo zoo advertising
campaign, it should capitalize on this and try to increase their presence by
opting for further emphasis on their urban distribution network. .s the impact
of any promotional strategy does not last for more than a limited timeframe, it
is imperative for Vodafone to make sure that they retain their current
popularity levels by pushing forward their advertising campaign in a much
more aggressive manner. In the case of 'umbai, Vodafone has made it)s
presence felt by opening EH333 distribution outlets and has hence captured
the numero uno slot in this metropolis. . similar business model can be
adapted and customized as per the regional parameters in order to become
the nation)s leading cellular service provider.
2. M*+7%- D%B%0'3/%(-:
India is still an agrarian economy and F3 percent of it)s population still dwells
in rural areas. .ccording to recently conducted surveys, statistics showed that
SS-2010-2012 TS12-M-344 ;;
$HP of the overall telecomm sector growth is to come from the rural sector. .
major chunk of Vodafone,s revenue is still generated from tier " and tier E
cities. This leads us to conclude that Vodafone needs to place further focus
on rural penetration so as to create economies of scale as well as the top line
growth of revenues. 1evelopment of infrastructure in rural areas is a
bottleneck due to the cost factor associated with it. !roject '20T @'obile
2perators, 0hared TowersB by 62.I was initiated in order to reduce these
heavy costs by sharing infrastructure between the service providers, hence
resulting in better coverage and &uality. 2ptimal rural penetration can be
achieved by taking into account the economic environment prevailing in the
rural sector. This would encompass the socio economic factors and would
hence provide a more regional focus to the adversting and promotional
strategies in order to establish a good connect with the rural customers.
3. P+')1&- D%B%0'3/%(-:
Vodafone is further trying to provide new services in order to establish a
stronger foothold in it)s current subscriber base. It is in the process of rolling
out it)s I service in India which would be a &uantum leap for browsing and
internet based mobile applications and services. I would also result in
improved connectivity and clearer reception as it provides a greater network
capacity which is achieved through improved spectral efficiency. This step is
being implemented by Vodafone to further enhance the revenue generated
from it)s <premium> segment. .lso +i'.V service implementation in India
would result in a significant surge in Vodafone)s revenue from the segment
mentioned above. .ccording to recently updated government regulations, the
I market is open only to $ telecom sector players in that particular circle.
%ence getting the license for providing I services in India would further give
Vodafone a distinct advantage over it)s competitors.
4. D.B%+2.8.&*-.'(:
In order to diversify it)s current market portfolio, Vodafone is launching a
global 'achine to 'achine @'E'B service platform for helping companies to
deploy and manage large, wireless 'E' projects for applications in customer
SS-2010-2012 TS12-M-344 ;?
service enhancement and central control and automation of projects. In the
Indian conte(t, 'E' is an untapped sector with enormous potential for
growth. +i9/2 @+ireless 9roadbandB , has the capacity to overcome data
rate of limitation of mobile phones by providing a staggering I3 to H3 '9Ns
speed. .s in the case of 'E' platforms , +i9/2 is a very promising market
in india. !roviding these two services in india would open new avenues of
growth for Vodafone and would help it diversify into different market verticals.
M*+7%-.(4 S-+*-%4.%2: G+'6-5 S-*4%
@ R*3.) .(&+%*2% .( 2*0%2 .8 3+')1&- 5*2 *&&%3-*(&%:
The current perception of Vodafone in india is that of a brand that provides
high &uality customer service at reasonable prices. Even though Vodafone
has not hired a known face to endorse itself, it has still managed to establish a
very high <emotional connect> with it)s customers through it)s brilliantly
conceived marketing strategies. E(cellent e(amples of this would be the
recent <Toozoo> campaign and the well received <Vodafone !ug> campaign.
In the case of the <!ug> campaign, Vodafone managed to project itself as a
service provider which would always be <following> the customer through the
tagline < +herever you go, our network follows.>. .nd in the case of the
SS-2010-2012 TS12-M-344 ;
<Toozoo> campaign, Vodafone further strengthened their image among their
customer base and the market in general.
N%6 &'/3%-.-.'( %(-%+2 *2 '33'+-1(.-, 3+%2%(-2 .-2%08:
Vodafone currently faces stiff competition since new players have also
entered the fray recently. !layers like ?oop, %ash"3, 'T0 etc are set to roll
out their services due to which Vodafone may find it difficult to maintain it)s
current share of customer base in india. E(pansion, further focusing on it)s
current segments, implementation of a revised business model and intensive
marketing would be the key features Vodafone should be concentrating on in
order to retain it)s current position in india.
I(-+')1&% (%6 3+')1&- 8%*-1+%2:
Vodafone is currently in the process of adding further verticals to it)s market
portfolio in order to increase it)s presence and e(pand it)s customer base. I
services are currently in the pipeline. .lso Vodafone can venture into
providing broadband and +i'.V services which have a very high potential for
revenue generation. 'E' or 'achine to 'achine platform is also present on
Vodafone)s strategy for market diversification. The platform, which is an
enterprise solution designed by Vodafone for providing automation and
wireless controlling is still under the process of patenting. 9ut once patented,
it can be a key factor in vodafone)s enterprise market e(pansion.
@ E:3*() ).2-+.91-.'(:
The current distribution model of Vodafone has been very successful in
penetration of the urban segment. It has a presence in all the EI Indian
telecom circles and has set up FG,333 base stations spread across India. .nd
Vodafone is still deploying E,J33 base stations each month. Even in 'umbai,
Vodafone has a total of EH,333 distribution outlets, out of which IH are
Vodafone 0tores. Even though the presence is considerable, Vodafone needs
to focus on a more intensive distributional model in order to keep up with
competitors like .irtel etc.
SS-2010-2012 TS12-M-344 ;6
The Indian telecom directory shows two major divisionsC
F.:%) S%+B.&% P+'B.)%+2 "FSPJ2#: These include the basic service providers
that are the state operators like 'T5? India and 905? India who collectively
account to over #3P of the total basic telecom services and private sector
telecom service providers in india who mainly focus on leased lines, I015,
videoconferencing and other high*end services.
%0010*+ S%+B.&% P+'B.)%+2 "SPJ2#: The cellular services in India are also
categorized as 0' @lobal 'obile 6ommunications 0ystemB and 61'.
@6ode 1ivision 'ultiple accessB system. The leading 0' services providers
in the Indian telecom industry are Vodafone Essar, .irtel, Idea Telecom, Tata,
/eliance and .ircel. These include both pre*paid and post paid mobile phone
cards and services providers.
SS-2010-2012 TS12-M-344 ;7
I/3*&- '8 /'9.0% (1/9%+ 3'+-*9.0.-,
SS-2010-2012 TS12-M-344 ;8
SS-2010-2012 TS12-M-344 ;9
V')*8'(% I().* .2 9*+%0, -6' ,%*+2 '0). *( ,'1 2%% -5% ).+%&-.'( .(
65.&5 .- .2 5%*).(4K
Vodafone has e(perienced a fairly good run in the past few years. It has
emerged as one of the premium players in the telecom. +ithin a short period
being second in the industry is a tremendous achievement. It is one of the few
players which has a pan*India presence and it caters to not only the !remium
segment but also to the rural segments as well. !lus, Vodafone is at the
forefront of ushering in new technology e.g. I and +i*ma( is about to roll out
within the ne(t few months so Vodafone is on solid*turf.
W5*- *+% ,'1+ 2-+*-%4.%2 8'+ 3%(%-+*-.(4 +1+*0 /*+7%-K
=or entry into any sector, say rural or urban, there should be focus on
(%-6'+7 &'B%+*4% and ).2-+.91-.'(. In addition to that, the affordability and
penetration also comes into picture. 6onsiderable effort is being put in from
our side to increase our network coverage, customer satisfaction. +e have
one of the best and largest customer support service which Is twice the size of
our nearest competitor.
T5% -%0%&'/ 2%&-'+ *0+%*), .2 %:3%+.%(&.(4 &1---5+'*- &'/3%-.-.'(. W.-5
DOOMO .(-+')1&.(4 2%&'()-9*2%) &*00 +*-%2 5'6 ).88.&10- 6.00 .- 9% 8'+
'-5%+ 30*,%+2K
It is very difficult already for the e(isting players as profit margins are reducing
with increase in number of players. The profits have reduced due to the
slashing of call rates. %owever, the profits realized are due to increasing
usage rates. 1ocomo is a very good launch and I believe it will change the
rules of the game altogether.
W5*- *+% ,'1+ 81-1+% 2-+*-%4.%2K
2ur strategies are more towards customer service, value added services etc
rather than changing tariffs fre&uently. =or instance, Vodafone India has IH
owned stores in 'umbai to provide help and customer services. This I believe
SS-2010-2012 TS12-M-344 ?0
has made Vodafone the leading player in 'umbai. 2ur ne(t competitor does
not have half the number of service centers that we have.
H'6 *+% ,'1+ 2-+*-%4.%2 .( I().* ).88%+%(- 8+'/ -5'2% '8 '-5%+ &'1(-+.%2K
0trategies are very different not only from country to country but also from
region to region. 2ur strategy for Europe which is a mature market is different
from that for India and .frica which are developing markets. +hile Europe
market is important in terms of revenues, Indian market is promising in terms
of growth.
W5*- *+% -5% (%6 3+')1&-2 -5*- *+% .( -5% 3.3%0.(%K S&'3% '8 3G .(
+e have an Enterprise =und that invests regularly to develop better products
and services. . whole lot of services can be delivered to our customers if I
materializes soon.
W5*- %88%&- 6.00 A.+-%0-MTN )%*0 5*B% '( V')*8'(%K
Vodafone has better e(pertise and technology than .irtelN'T5 and even
though it will benefit them mutually the effect would not be much on Vodafone
and .irtel in India. .irtel is already a leader in India and it will remain the
same for some time. 2ur strategy is focused on how to be a market leader.
*( ,'1 2*, 2'/%-5.(4 *9'1- -5% %88%&- '8 E''-E'' &*/3*.4( '( -5%
It has almost created a wave and impact has been very encouraging. E(isting
customers loved the campaign and many responded to the campaign through
phone and internet. The Too*Toos) effect has caught the public)s imagination
so much that there were Too*Too anapati and rakhis selling. +e also
captured the attention of the public through our pug dog advertisements.
.dvertising is something which differentiates Vodafone from others. +hile the
rates of all the service providers are almost same, you need to do something
so that the customer chooses your service over your competitors) while opting
for a mobile connection.
SS-2010-2012 TS12-M-344 ?1
I( ,'1+ '3.(.'( 65.&5 *+% -5% /*H'+ 5.()+*(&%2= .( -5% 6*, '8
+%410*-.'(2 *() 4'B%+(/%(- 3'0.&.%2= 8*&%) 9, -5% -%0%&'/ 2%&-'+ K
There are many blocks affecting our growth because of government
They areC
". 1elay of licensing I services
E. 6hange in licensing methodology
=irst it was for 61'., later it was for 0' and now they have planned to
offer an unified license.
I. Increase in number of licenses offered and increase in number of
operators who can operate in a circle has created a huge competition.
W5*- /%*21+%2 )' ,'1 -*7% -' /%*21+% &12-'/%+ 2*-.28*&-.'(K
+e maintain a very good relation with customers through our customer
satisfaction surveys, customer delight studies. The sample drawn is random
sampling and not done only for Vodafone customers.
*( ,'1 -5+'6 2'/% 0.45- '( -5% ).2-+.91-.'( (%-6'+7 '8 V')*8'(%
Vodafone India has a very good distribution network. +e have EH333
operators functioning now. +e also undertake special programs to drive
better distribution in every circle. 0ince we have better distribution network in
the country we are the benchmark of the Indian telecom sector.
W5*- *+% -5% '-5%+ %:-%+(*0 8*&-'+2 -5*- ,'1 8%%0 5*) *88%&-%) -5%
-%0%&'/ 2%&-'+ .( -5% +%&%(- 3*2-K
Every national event affects the industry as a whole. The drought in India
affected the disposable income in rural India. 5aturally the spending on these
services will decrease. The sector is not immune to terrorist attacks or even
0wine flu scare as it affects the movement of tourists and in turn adverse
affects our revenues from roaming charges.
SS-2010-2012 TS12-M-344 ?2
W5, ).) ,'1 &5''2% -' %(-%+ I().* -5+'145 H1-&5.(2'( E22*+ +*-5%+
-5*( %(-%+.(4 ).+%&-0,K
It is a strategical move by Vodafone. It is a way of faster routing. =or instance,
for 1262'2 it took them E years after getting license to start their
operations. It involved building of newer infrastructure whereas we chose to
cut costs by operating through %utchinson Essar.
2n first look, these <Too Toos> in Vodafone TV ads may resemble animated
cartoon characters with an alien look or simply a stupid egg*head character
with disproportional white bodies and black dots for eyes and mouth.
9ut the interesting part is that Too Toos are not animated characters but are
actually slim women actors from local 'umbai theatres, dressed in white
costumes that are stuffed with foam to portray the characters.
These characters are named T'' E''2, and are created by 24'. These ads
were directed by !rakash Varma and were launched during the ongoing I!? E
They are human beings who were made to wear body suits. <the design of the
characters is such that one gets fooled into thinking it is animation,> shrugs
/ao, which was indeed the very illusion that had to be created. <in a sense, it
is Slive) animationW> %e &uips, referring to the fact that it was all shot live.
To create large heads they used a material called !erspe(, which was again
stuffed with foam. .lso, they casted only women and children to play the zoo
zoos so that the thin hands and legs made the heads look even bigger.
SS-2010-2012 TS12-M-344 ?;
.s title sponsor and official mobile partner of the SVodafone 'claren
'ercedes) team, Vodafone is raising its association with =ormula " to the
ultimate level. +e have committed to a long*term agreement, starting in E33F.
The sponsorship demonstrates Vodafone)s ongoing commitment to the
=ormula " world championship, a sport which continues to deliver massive
global television coverage and which has significant appeal for Vodafone)s
consumer and business customers around the world.
The title sponsorship including the team name SVodafone 'claren 'ercedes)
and Sofficial mobile partner) of the team gives VodafoneM dominant title
sponsorship branding on the cars, drivers, and pit crews, overalls and
.s we enter into this e(citing new partnership the associative rights ac&uired
provide uni&ue opportunities that will continue to raise brand awareness
through the team name and branding. The team partnership delivers a
powerful integrated marketing platform through advertising, hospitality, mobile
content, handset offers and promotions and through innovative activation will
encourage preference and loyalty amongst Vodafone)s customers.
Vodafone is in its second season as official partner and official mobile network
of the 8E=. 6hampions) ?eague, the world,s largest annual football
Vodafone is delighted to be at the forefront of Europe)s premier club
competition. .fter the successes of last season,s 8E=. champions league
sponsorship and the agreements announced in .pril to sponsor the 8E=. cup
final and 8E=. super cup, Vodafone is looking forward to strengthening its
position as a brand passionate about the beautiful game.
The 8E=. champions) league is the world,s greatest club football competition.
1uring nine months of every year, Europe)s top IE clubs battle it out for the
trophy that proves they,re the best of the best. It,s a sponsorship that delivers
SS-2010-2012 TS12-M-344 ??
considerable value to Vodafone and is highly relevant to most of the Vodafone
operating companies.
=ootball is the most popular sport in the world. %uge numbers of Vodafone
customers are passionate about football * and sponsorships help to convert
this passion into a business relationship.
The partnership enables Vodafone to deliver content including video
highlights packages and goal alerts from all 8E=. champions league matches
to football fans on the Vodafone liveW +ith Ig consumer service.
Vodafone tied up with /adio channel =EVE/ "3$ wherein the channel
provides with cash prizes of upto " lakh or more which is another promotion
strategy adopted by Vodafone which was a success.
.s our sponsorship of the England cricket team comes to a close, we)ve got
an impressive line up to celebrate the "Eth and final year of the partnership.
This summer England will once again embark on the &uest for victory in the
ultimate test of any England cricketer as they take on .ustralia in the 5power
ashes seriesM and as a Vodafone customer, you can be with us the whole
Vodafone sound bites e(plore every aspect of the global music scene.
=eaturing international artists) interviews at gigs and festivals, bands) fantasy
group line*ups, pre*show rituals and performers describing their first time on
stage, the programme brings an authentic behind the scenes insight into the
world of music.
Vodafone sound bites is available on tv, via a website @www.mtv*
vodafonesoundbites.comB and on mobile @wap.mtv*vodafonesoundbites.comB
SS-2010-2012 TS12-M-344 ?
as a series of twenty one, three minute shows. The website and mobile
service carry additional footage, as well as editorial and news elements.
8ni&uely the programme is available in seven languages on 'TV in ermany,
%ungary, the 5etherlands, !ortugal, /omania, 0pain, Turkey, the 8; and
Ireland, .ustralia, 5ew Tealand and on the mtv European feed, covering
si(teen countriesW
Vodafone)s new series of advertisements feature lovable white, large*headed
creatures that have attracted more than EG,H33 fans on face book. <They are
so cute,> <they remind me of 6asper who was my favourite cartoon.>
9ut for all those who think the zoo zoos are animated, here)s the shockerC
they are real people in costume.
/ajiv /ao, E(ecutive 6reative 1irector @0outh .siaB of 2gilvy 4 'ather, the
agency that handles Vodafone advertisements, saidC <we wanted to make real
people look as animated as possible.>
9angalore*based nirvana films shot the ads in 6ape Town, 0outh .frica, just
in time for I!?. 0aid !rakash Verma, nirvana)s owner
and director of the zoozoo campaignC <our actors were small*bodied, thin
women covered in layers of white fabric. Each facial e(pression was made of
rubber and pasted on the actors.>
SS-2010-2012 TS12-M-344 ?6
In about "3 days, 24' completed the campaign shooting two*three films a
day, each selling a product or a service offered by Vodafone. . dozen more
films are e(pected as the league progresses.
The characters, which look like distant cousins of the !illsbury dough boy,
were enacted by professional ballet artists in white body suits. <+hat makes
them so endearing is that they are innocent people living in a simple world
unlike ours, who laugh loud when they laugh. .nd who seem to be in an in*
between world of animation and reality,> said 'r. /ajiv /ao, e(ecutive
creative director, 24'.
. film shot at E3 frames per second made the zoo zoo)s movements hurried
and comical. 2f the E# different zoo zoo ads created for the I!?, there will be
a new one everyday.
=rom now onwards millions of people all through the world could access
mobile phones for the first time with the release of Vodafone)s first ultra*cheap
own*branded phones. It is said by the company that these phones are cheap
enough for poor people to have. !lus the Vodafone "EH and EEH, released
recently, are aimed at e(panding the availability of affordable mobile phones
in increasing markets.
The mobile phones have been produced for Vodafone by 6hinese
manufacturer TTE 6orporation * the first handsets resulting from an
agreement between the two companies announced in 1ecember. They will
come into view first on Vodafone networks in Egypt, /omania and 0outh
.frica. The Vodafone "EH and EEH are reported to be consisting with a similar
set of basic features, although the "EH has a monochrome display whereas
the EEH)s display is colour.
Vodafone is also planning to open access to mobile services for more people
in countries where mobile networks are the most viable and cost*effective
SS-2010-2012 TS12-M-344 ?7
communications service available. The phones are said to be coming with the
price tag of around "E33*EH33.
This is an online E$XF helpline service for the customers of Vodafone. This
provides help to the customer &ueries related to the products 4 services like
V.0, talktime, recharge 4 etc.
This is one of the best way of maintaining a healthy customer relationship
adopted by V21.=25E. They have their own customer care centre)s all over
India wherein the customers directly come to the centre)s regarding the
problems they face related to the products 4 services.
SS-2010-2012 TS12-M-344 ?8
SS-2010-2012 TS12-M-344 ?9
SS-2010-2012 TS12-M-344 0
=eel at home with the widest coverage in the country. !resent all over India,
we have you covered no matter where you are.
.ndhra !radesh ;olkata
6hennai 'aharashtra 4 oa @e(cept 'umbaiB
1elhi 4 56/ 'umbai
ujarat Tamil 5adu
;arnataka %aryana
;erala 8!@EB
!unjab 8!@+B
+est 9engal /ajasthan
SS-2010-2012 TS12-M-344 1
6hurn is fre&uently spoken of in a communications conte(t, where it refers to
the tendency of Internet and cell*phone subscribers to switch providers. In a
general conte(t, churn is a synonym for agitation or turnover. This internship
project that is a part of my '9. course that I am pursing at =2/E 0chool of
'anagement in 1elhi, involves studying the 6hurn of Enterprise customers
and customer satisfaction. The project was aimed at identifying effective
measures to reduce the churn rate and improve overall customer satisfaction.
This project was carried out in two phases. The first phase involved
understanding churn rate in the Enterprise segment and studying alternative
to reduce churn. In order to do so, it was imperative to study the processes
and the Enterprise business at Vodafone. The second phase included
studying the lifecycle of an enterprise customer and customer engagement.
Through this report, I shall elaborate the details of my project and my
approach that I adopted to arrive at the recommendations.
The objectives outlined for this project involved
". 6hurn .nalysis and /ecommendation * 8nderstand the reasons
behind churn and identify ways to reduce it.
E. ?ife cycle of an Enterprise customer D 6ustomer life cycle is a term
used in 6/'@6ustomer /elationship 'anagementB to describe the
progression of steps a customer goes through when considering,
purchasing, using, and maintaining loyalty to a product or service. The
task was to understand how Vodafone handles each aspect and where
we could do more to improve customer satisfaction.
I. Improve 6ustomer Engagement
$. /educe cost to serve and back office influ(.
SS-2010-2012 TS12-M-344 2
The approach adopted for the entire project was D
". 6apturing marketing insights D identify the market and opportunities in
E. 6onnecting with 6ustomers D to improve customer engagement
I. 9uilding stronger brands
$. To identify ways to deliver products, services and value better.
H. 6reating long term growth D by improving customer loyalty
%ence, these objectives were translated into I key focus areas D
Improving customer satisfaction and customer e(perience
/educing complaints flowing in.
/educing costs.
The project was carried out in two parts. The first part involved 6hurn
.nalysis. The second part included studying customer engagement and life
cycle analysis. The methodology for getting information N0ources of
information D
athering knowledge from the available data and reports @'I0 teamB
E(ternal information through public sources like T/.I and the Internet
6ustomer surveys and client visits D to get opinions from the customer
athering information from employees across various functions.
SS-2010-2012 TS12-M-344 ;
L.1 +hich cellular service do you use-
YTo know who the dominant player in 1elhi market isZ
S%+B.&% P+'B.)%+
A.+-%0 R%0.*(&% V')*8'(% I)%*
MTNL/BSNL TATA D'&'/' A.+&%0
2ut of ""3 customer .irtel with I3 customer was found dominating players in
1elhi followed by Vodafone.
SS-2010-2012 TS12-M-344 ?
L.2. .re you satisfied with the services of your current service provider-
2bjectiveC To know whether the customers are satisfied with current service
provider or not.
0atisfaction levels
:es 5o
2ut of all ""3 respondents, GE @FHPB respondents are satisfied and EG @EHPB
respondents were not satisfied with the services of current service provider.
L.3. +ould you like to change your service provider, if given a chance to
change it without changing your mobile number- @'obile 5umber !ortability
2bjectiveC To check the willingness of customers to accept 'obile 5umber
SS-2010-2012 TS12-M-344
!refer to 6hange
:es 5o
2ut of ""3 respondents FG respondents would like to change their service
provider if given a chance to which provider with same mobile number.
SS-2010-2012 TS12-M-344 6
0atisfied 5ot 0atisfied T2T.?
+illing to 6hange H$ E$ FG
5ot willing to 6hange EG $ IE
T2T.? GE EG ""3
=rom above table and chart, it was found that out of total GE customers who
were satisfied with the services of current provider, H$ customers are willing to
change their service provider. 2ut of EG customers who were not satisfied
with the services of current services provider, E$ customers were willing to
change their services provider.
?arge number of customers was satisfied with the services but even then they
were willing to change their service provider in search of better prospects. 0o
If 'obile 5umber !ortability system comes into action, there is a chance that
people will accept it.
L.4 "A# +hy will you change your service provider-
2bjectiveC To know the reasons that will influence them for switching the
service provider
/E025 =2/ 6%.5E 52. 2= 680T2'E/
=le(ibility to change service provider "#YEHPZ
?ow switching cost 3GY"3PZ
?ow tariffs of other provider EJYIIPZ
'ore Value added service by other "GYIIPZ
SS-2010-2012 TS12-M-344 7
+orst service of 6urrent provider 3FY#PZ
Total FGY"33PZ
2ut of FG customers who were willing to changeM
.. EJ @IIPB customer are willing to change in search of low tariffs of
other service providers,
9. "# @EHPB customer want to change because of fle(ibility to change
service provider without changing mobile number,
6. "G @EIPB customer want to change because of more value added
services provided by other services provider,
1. G @"3PB and F @#PB were willing to change because of low switching
cost and worst services of current services provider.
L.4 "BB if you do not like to change the service provider, please specify the
reason. 2bjectiveC To know the reason, why people will not change their
service provider in spite of option to keep their mobile number the same.
/E.025 52. 2= 680T2'E/0
%appy with current
6orporate !lan, 0o can
5ot change
SS-2010-2012 TS12-M-344 8
2ut of IE customers who were not willing to changeM
.. I3 @#$PB customers are not willing to change because they are happy
with their current cellular service provider.
9. E @JPB customers are not willing to change because they have
corporate plan provided by their organizations, so even if they are
willing to change, they cannot change.
L.<. +hat do you think the advantages you will have if 'obile 5umber
!ortability 0ystem comes in to action- @2pen EndedB
2bjectiveC To know what will be the advantages for customer, if 'obile
5umber !ortability 0ystem comes into action
/E.025 52. 2= /E0!250E
?ow Tariffs $$
=le(ibility II
ood 5etwork "F
'ore V.0 E"
T2T.? ""H
". ?ow tariffsC
$$ responses said that if 5!0 comes into action, they will get services at
low tariffs.
SS-2010-2012 TS12-M-344 9
E. =le(ibility
II responses said that there will be fle(ibility in changing the services
provider without changing mobile number. They will also get fle(ibility to
switch the service provider if customer is not happy with the services of
current provider.
I. ood network
"F responses said that they will get good network because all cellular
service providers will serve them better to sustain in competitive market.
$. 'ore value added services @V.0B.
E" responses came about 'ore V.0, i.e. customer will get more value
added services at cheaper rates.
L.J. what do you think, the problems you will face if 'obile 5umber !ortability
0ystem comes in to full action-
2bjectiveC To know what will be the problems for customer, if 'obile 5umber
!ortability 0ystem comes into action
/E0!250E 52. 2=
5o !roblem FF
1ifficulty to identify the caller)s service
5etwork !roblem "I
Time for switching E
+hen respondents were asked about the problems they might face with
introduction of 'obile 5umber !ortability 0ystem,
SS-2010-2012 TS12-M-344 60
.. FF respondents responded that they will not face any problem if '5!0
comes in to action,
9. "G respondents said that they will face difficulty to identify the caller)s
service provider.
6. "I said that they will face network problem because churning of
customers will increase and will cause network conjunctions.
1. E respondents were not happy with the idea of time taken to switch
between providers as it takes FE hours @as per current suggestion of
T/.IB to switch from one provider to another.
6hurn analysis can be done by
". 8nderstanding * data, reports and getting the customer feedback
E. !redicting D studying the predictive churn model, understanding the
key factors considered for the predictive churn model and measuring
the effectiveness of the model.
6hurn should also be studied as .ctual 6hurn and !artial 6hurn. .ctual
6hurn is related to the disconnections. !artial churn can be denoted by
delayed payments, complaints increase and lower usage of V.0 services or
voice or data usage. The !redictive 6hurn 'odel uses these factors as
indicators to identify their threat base. 2ut calling is done to these numbers to
identify the reasons for low usage.
Predictive churn modeling (Predictive churn modeling is the process by which
a model is created or chosen to try to best predict the probability of an
outcome of a churn.) although effective in reducing churn, suffers due to
certain practical issues. 'ost of the subscribers who are identified as the
threat base (Base of customers who are likely to churn based on a model
based prediction.B are not contactable. Either they choose not to speak or
they cannot be reached. 'oreover, by the time these subscribers are
identified in the threat base, they have already churned.
SS-2010-2012 TS12-M-344 61
=ebruary saw an increase in 626! churn due to a large number of
disconnections from I6I6I. +hereas 'arch saw a larger number of I2I!
disconnections mainly owing to involuntary churn especially due to unpaid
The above table shows the churn in terms of numbers and in terms of
revenue. It is essential to understand churn in both number and revenue.
6hurn reasons can be studied in two categories D Voluntary and Involuntary
churn. The table below shows the breakup of Voluntary and Involuntary churn
SS-2010-2012 TS12-M-344 62
O92%+B*-.'(2: I(B'01(-*+, 51+(
". 8npaid bills are the major reason for involuntary churn. 'arch saw a
"JP increase over =eb. 2ne e(planation to this is that =eb has only EG
days. In comparison to Kan, the churn numbers almost remains the
same. In general, the 859 disconnections in E3"3 are on the rise. The
subscriber base is also on the increase every month at an average of
about ".GP.
E. 859 and T+2 together @unpaid billsB attribute to more than #3P of the
disconnection cases.
I. There are cases wherein the customer has not received the bill or
wherein he has a bill dispute. %ence he has not made the payment.
This was observed by analyzing the complaints that the customer has
logged in.
$. The top I reasons for IV disconnections are the same across all .25
categories of subscribers.
SS-2010-2012 TS12-M-344 6;
H. It is interesting to note that there are no 859 disconnections for those
customers who are on 1irect 1ebit. %ence, this can be looked as one
way to reduce 859 disconnection.
J. 'ost of these unbilled cases are primarily from 9!2 and call centers.
'ost of the subscribers choose to not pay the last bill before they leave
the organization. .s understood from the collections department,
attempts to trace them are also in vain, since their alternate contact
numbers are not reachable.
F. It was also noted that most of the subscribers in the 859
disconnections are in the age group of EH D I3 years @about $3PB. .nd
they are mainly from companies like T60, /eliance Infostream,
.ccenture, Intelenet, /eliance roup etc. It is also interesting to note
that this segment is also the biggest revenue churners.
". 1irect 1ebit * should be promoted.
E. E 9ill should be encouragedD It was observed that many companies
and individuals were open to E 9ills. 9ut they were not taking the
initiative themselves for subscribing to E 9ill. %ence, I feel that if there
is an active campaign to promote E 9ill in all companies, there would
be many lesser complaints over bill delivery delays and payment
I. E 9ills could also be sent proactively to all those subscribers whose
email address we have in the system along with their hard copy of their
$. Early payment * This campaign was once carried out and it saw an
surge of $P in on*time payments. 0uch initiatives help in reducing 859
H. .lternate 6ontact 5umbers and /eference 6hecks* should be obtained
and verified too in order to improve contactability. !resently, reference
numbers are I1 proofs are being obtained. 9ut, reference checks
SS-2010-2012 TS12-M-344 6?
should be done in especially companies like call centers where the
subscribers are not traceable after they leave.
J. .lternate contact numbers should not be company board line numbers.
Ideally they should be mobile numbers.
O92%+B*-.'(2: V'01(-*+, 51+(
". .lmost all enterprise voluntary churn is tagged under 622 6hange of
ownership. This practice makes it difficult to identify the real reason for
6hurn. E.g. Taj and T60 have churn because of competition from
T.T. and Essar group has churn since they don)t give away their
numbers when employees leave the organization. %ence they are kept
in safe custody.
E. =rom the retention team, it is understood that most of the 626!
disconnection reasons are not gathered. !artly because the authorized
signatory in the organization sends out an email for disconnection
without stating the reason. .nd some companies do not want to be
SS-2010-2012 TS12-M-344 6
disturbed by retention team. %ence, for such companies retention
attempt is not made.
I. 2nly a very few of these 626! numbers could be contacted for
retention efforts. 'ostly the reasons for disconnection given were D
moving out of town or personal reasons. This additional information is
not captured when tagging under 622.
$. The retention count for 626! is very low. 2nly about " or E cases out
of "3 are retained.
H. .lso, noted in many corporates where tariff is really low @like odrejB,
there are many disconnections due to 'ultiple connections @in a single
individual)s nameB. 'any connections are taken for others in the same
corporate tariff, but then there connections are churned since the
individual doesn)t want to take responsibility against nonpayment and
other issues.
". 1isconnection codes for Enterprise need to be revised and clearly
indicate the actual reasons.
E. To make the retention effort more effective, enterprise should have a
separate retention call center. !resently, only email re&uests for
disconnection are handled separately. 'oreover, for the I2I!
customers, they are treated on par with the regular postpaid
I. .lternate contact numbers should be obtained.
$. =or 626! disconnection re&uests from the authorized signatories
@Generally, the SP! (Single Point f !ontact) in an organi"ation for
dealing with mobile connections. #his could be an individual in the
admin department or the $% department.B, the reason should be
obtained and the churn should be tagged with the real reason. This can
be done either by issuing a disconnection re&uest form to the
SS-2010-2012 TS12-M-344 66
authorized signatories or by taking the re&uest along with the reason
through the e*mail.
H. /esearch indicates that the $ most important factors that cause churn
are * 0ervice, Tariff, 5etwork and 9rand Image. 0ervice and tariff are
the two things that we can improve on a relatively shorter period of time
in order to reduce dissatisfaction.
R%B%(1% 51+(
The actual number of disconnections in a month can be a good indicator of
6hurn. 9ut it doesn)t fully represent the actual loss to Vodafone. %ence, there
is a need to study churn in terms of /evenue loss too. /evenue churn is
obtained by taking the sum of all the ./!8 of all the subscribers churned for
a 6ompany V for that month.
The table below shows the revenue churn for the month of 'arch for the top
companies. Though the data is sorted in the descending order of the number
of churns, the revenue churn numbers don)t arrange themselves in the same
". . month on month analysis of revenue churn would reveal that there
are some companies that are the major revenue churners every month.
E. 5umber of churn doesn)t indicate the revenue loss to Vodafone. E.g.
Tata !ower may show more number of churn than say 9arclays @/ef
Table aboveB. 9ut in terms of revenue, the loss from 9arclays e(ceeds
Tata !ower by virtue of the larger ./!8 from 9arclays.
I. 6hurn can also be tackled by treating important customers or high
value users differently. This would include
aB ?oyalty schemes for high value users
bB %aving a separate customer care for high value users.
cB !romotional campaigns that target this group specifically.
SS-2010-2012 TS12-M-344 67
". 1atabase and 'I0 improvements D 0uperior information gives the
competitive advantage. %ence it is essential that our database cater to
the additional information that is re&uired today.
aB 'arketing intelligenceN 6ompetition 1ata * +e should gain
knowledge of what our competition does not only in terms of tariffs
and schemes they offer to corporates, but also in terms of
promotional activities and products they have.
bB 6ustomer demographics *
i. et to know certain lifestyle information about customers so
that you could offer tailored retention packages
ii. This can be obtained whenever the customer interacts with a
call center, or when he signs up for a service. 'ake him fill
out a small &uestionnaire that will help us build this
iii. This information could be on their Interests, !rofile, and Kob
SS-2010-2012 TS12-M-344 68
iv. The importance of user profiling based on mobility has also
been elaborated on white papers at Vodafone global
enterprise solutions website.
cB V.0 0ubscription information D 6ollect information on the type and
fre&uency of V.0 one has subscribed for. V.0 has huge potential.
%ence it shall be covered separately.
E. 6hurn should be studied separately for 9lack 9erry, 1ata 6ards, Voice
and V.0.
I. Increasing 1ata 8sage N V.0 D 9harti .irtel has launched their online
application store called .pp 6entral with over "E33 application for
download @most of them being freeB across EH categories for business,
games, books, social networking and other needs. The reason being D
V.0 has tremendous potential.
The V.0 industry in India generated revenue of 80Q ".E billion in
E33FD3G and is e(pected to reach 80Q $.3 billion by E3"H.
'ajor growth drivers for V.0 in India
Increasing focus on localization and availability of content in local
1evelopment of '*commerce applications, such as booking tickets
and making bill payments
.vailability of mobile TV and development of shows, films, images,
news, etc.,
.vailability of complete subscriber data has helped in reaching
niche audience leading to a growth in advertising revenue through
1evelopment of video*based applications, such as video 0'0 and
SS-2010-2012 TS12-M-344 69
S144%2-.'(2 D%2&+.3-.'( P1+3'2%
athering more information especially
on Interests, !rofile, Kob, 'obility of
the user and alternate contact
numbers would help in tailoring
retention programs and customer
engagement much better.
%elps in tailoring
retention process
Targeting V.0
services to a right
customer base.
Taking a leaf out of 0i( 0igma
practices, we could look at '2'
@'inutes of the 'eetingB trackers,
/6. @/oot 6ause .nalysisB 'atri(
and Issue Trackers @for 0's to ensure
compliance with deadlinesB. 0uch
tools will help in improving customer
satisfaction and track service levels.
E.g. The 0i( 0igma project
implemented by .irtel helped the
company gain /s.E33 and increased
the customer satisfaction inde( from
J" P to GE P.
practices to track
and improve. +ill
be useful in
measuring output
and effectiveness.
.ddress +e could ask the user to confirm the To reduce first bill
SS-2010-2012 TS12-M-344 70
through 0'0 or
address in the system through sms.
The user could respond by saying
:E0 or 52 to confirm the address.
@toll freeB
and further bill
+elcome and
first bill call
management *
ideal for
gathering more
There should be a first bill and
welcome call especially for enterprise
customers. This is also an ideal
opportunity to gather additional
customer information @like interests, or
if he would use roaming fre&uently
!rimarily for
engagement and
?ow users of a particular service
should be targeted by awareness
./!8 can be
'ail or 0'0
online access
Ids and
+e should proactively send
customers 8ser I1s and !asswords
@like most banks doB. It is then up to
the customer to use the online portal
or leave it.
To encourage the
customer to start
using the online
1eveloping "E
to "G months
In order to push the customer into
staying with Vodafone for longer
periods, we could give them more
incentives to go for "E to "G months
contract. This could be with blackberry
or i!hone or regular voice services.
/etention becomes
more effective
%aving a
separate call
center for
Enterprise customers need to be
treated differently from regular
postpaid customers. 0eparate call
center can be looked at even for a
specific set of customers within the
enterprise customers @ like higher
value customers or those belonging to
specific companiesB
6all center
e(ecutives will be
better trained to
handle the
accounts and tariff
details better.
/etention call
center will be more
SS-2010-2012 TS12-M-344 71
T 'obile has tied up with ?ufthansa
airways for converting their mobile
usage into air miles. 0imilarly, %utch
had it with Ket .irways.
To promote loyalty
especially in the
wake of '5!
regulations coming
into effect soon.
promotions and
ad campaigns
'ost of the Too Too campaigns are
targeted at the prepaid segment and
on V.0 services. There should be ads
and promotions to reach for the
enterprise business as well.
To reach to
customers and
position Vodafone
as a telecom
partner for
9usiness 0olutions
=ocus on other
+e could study where other
enterprise solutions could fit into the
scheme of our clients. !roactively, we
could then approach the client with
this proposal for these services.
These may include bulk sms to
mailing solutions to =6Ts.
To provide not only
voice, but data and
a host of services
to our clients.
12-'/%+ L.8%&,&0%
In customer relationship management @6/'B, customer life cycle is a term
used to describe the progression of steps a customer goes through when
considering, purchasing, using, and maintaining loyalty to a product or
service. In layman,s terms, this means getting a potential customer,s attention,
SS-2010-2012 TS12-M-344 72
teaching them what you have to offer, turning them into a paying customer,
and then keeping them as a loyal customer whose satisfaction with the
product or service urges other customers to join the cycle. 6?6 focuses upon
the creation of and delivery of lifetime value to the customer i.e. looks at the
products or services that customers 5EE1 throughout their lives. It is
marketing orientated rather than product orientated. That is, the concept is
much broader. . product concept would look at a customer buying a voice
connection. . marketing concept would look at it as a customer purchasing a
communication or a mobility solution. %ence, it could be anything from a
regular voice connection or a blackberry or a data card etc.
+hen you calculate the present value of the future cash flows attributed to the
customer relationship, you arrive at the &ifetime 'alue of a !ustomer. 0imply
put, it represents e(actly how much each customer is worth in monetary
terms, and therefore e(actly how much a marketing department should be
willing to spend to ac&uire each customer.
12-'/%+ L.8%&,&0% S-*4%2
This 6ustomer Engagement Kourney consists of H different stagesC
.wareness D .wareness drives engagement. The more customers are
aware of your brand and offerings, the more likely they will begin to
engage with you @if they find that the brand is interesting and
engagement worthyB.
6onsideration D This includes all the buying decisions that the
customer would like to consider before choosing a product.
\]In&uiry D %ow and from where does the customer get information for
the products that he needs-
!urchase D !otential buyer becomes a client by purchasing products
and services.
SS-2010-2012 TS12-M-344 7;
/etention D Ensuring that the customer does not churn and continue to
use more products and services.
'arketers tend to focus on the latter two stagesC purchase and retention,
because this is their end*goal. 9ut we have to keep in mind that if we really
want to Sengage) people, not just to Spersuade) them to buy something, we
have to include the first three stages as well.
.wareness of the e(istence of a product or organization is necessary before
the purchase behavior can be e(pected. 2nce the awareness has been
created in the target audience, it should not be neglected. If there is neglect,
the audience may become distracted by competing messages and the level of
awareness of focus product or organization will decline.
.wareness needs to be created, developed, refined or sustained, according to
the characteristics of the market and the particular situation facing an
organization at any one point of time.
There are many ways of going about it. The simplest way to go about is by
using surveys to measure the effectiveness of all the promotional activities.
The 1.'./ @1efining .dvertising oals for 'easured .dvertising /esultsB
model suggests the same. It re&uired you to know your present state @say
through surveysB and then measure your result after the promotion. oals
should be realistic and measurable, like increasing awareness levels from
"3P to IHP.
There is hence a strong need to have enterprise specific ads.
". Vodafone as a brand is very prominent for all mobile subscribers. 9ut
where Vodafone lacks is the awareness of VodafoneSs Enterprise
0olutions. This was observed during several interactions with individual
clients and authorized signatories.
E. !resently, there are no promotions done on the different solutions that
we offer. .part from promoting voice connections, there are very few
SS-2010-2012 TS12-M-344 7?
promotions in the market for blackberry and data cards and almost nil
for the rest.
I. !roduct innovations are poor and hence we do not have the first mover
advantage in the market either. 'ost of our products that we offer are
also offered by our competitors and hence, the differentiations in the
products are also less.
$. 'agazine and !rint ads should be the preferred choice as they have
many advantages over television ads. .nd print ads are more effective
in the segment that Enterprise solutions operate D the corporate
0tudying consideration factors or purchase decisions helps us develop a
deeper understanding of consumer behavior. It tells us when, why, how, and
where people do or do not buy product. Through this understanding, products
and services can be tailored to suit different people)s needs.
.ccording to the survey conducted at %arvard 8niversity, the four most
important factors that are taken into consideration before buying a new mobile
are *
" ". Tariff
E E. 5etwork
" I. 0ervice
E $. 9rand Image
This is also consistent with the feedback obtained at various touch points
where customers walk in to get more information on new connections. 2ther
factors include benefits, peer review, availability etc. 6onsideration factors are
different for different types of customers like !rospects, first time buyers,
repeat buyers, core customers etc. 0ome of the ways to improve these factors
would be
SS-2010-2012 TS12-M-344 7
". TariffC To have more than one tariff plan at corporates @where the
customer base is sufficiently largeB so that there could more choice
available for different set of people.
E. 5etworkC Improving network coverage in other areas also. 'any
customers have coverage related problems in other outer areas or
when they go on roaming. %ence they wish to choose some other
provider. This is one of the reasons observed for churn.
2nce the customer knows that there is a product offering with a particular
brand, he would like to learn more on the offering. This is where he would get
in touch with the organization through various #ouch Points ((ncounters
where customers and business engage to e)change information, provide
service, or handle transactions.B. It is this e(perience here at these touch
points that push the customer to buying the productNservice.
0ome of the things that can be done to measure and improve customer
in&uiry at these touch points D
". 2btain customer feedback at every touch point. !resently, it is done only
at a few touch points.
E. Event 1riven surveys D et the customer to fill a short &uestionnaire or get
his feedback to obtain a little more information about him after an event.
0ome of the scenarios where this could be done would be
aB .fter online bill payment, a few &uestions could be asked along with
the thanks you message.
bB . new set of &uestions @E or IB behind the hard bill so that when they
are submitted along with the check, this information could be obtained.
cB .fter his interaction at the customer service desk or at stores etc.
I. 61I @6ustomer 1elight Inde(B * 61I is used to measure customer
satisfaction. This is presently used by the marketing team at Vodafone for
SS-2010-2012 TS12-M-344 76
the regular consumer. The same process can be adopted to be used for
Enterprise as well.
$. Effectiveness of touch points should also be measured to know which
ones do and do not contribute to improving customer satisfaction. I have
developed an (ngagement *atri) that will help us identify most of the
touch point and &uantitatively measure their importance and effectiveness.
.ll the steps have also been document in the spreadsheet. . snapshot of
the matri( is shown below.
P1+&5*2% *() R%-%(-.'(
9etween purchase and retention, a lot of effort is put especially in servicing
the customer for all his needs. 2nce the sale is done for a particular product,
relationship managers are attached to each corporate account to service the
needs of the customers.
5evertheless, there are still many complaints, re&uests and en&uiries flowing
in every month. 'arch saw a EEP increase in the total number of complaints.
This was primarily dominated by service and billing complaints. 0ervice
complaints were higher than billing complaints particularly in the 626!
segment. 0ervice complaints were dominated by 151 re&uests. +hereas, the
I2I! customers had many bill disputes.
SS-2010-2012 TS12-M-344 77
S*/30% S-1),
To study the criticality of these complaints, a sample of "33 numbers who
churned in 'arch were chosen randomly. These were mapped to the
complaints they had logged in that month and the previous month and their
.25 category.
8sing this information, the reasons for disconnections could be traced to the
complaints they had in the past for different .25 category of users. The
following table summarizes the top $ complaints.
=ollowing observations could be made from this D
". 9illing complaints are considerably higher than the rest of the
complaints. This has led to dissatisfaction and hence the churn.
E. 9illing complaints have caused both Voluntary and Involuntary churn.
I. 9ill disputes tend to increase over the lifetime of the customer. 'ost of
these disputes were related to tariff disputes, 68 installation errors
and data usage.
This just goes to show that billing complaints are more critical than others.
12-'/%+ E(4*4%/%(-
Engagement is one of the most powerful emerging business principles of this
century, but historically it has been elusive, unmeasured and undisciplined.
6ustomer engagement is the emotional connection or attachment that a
customer develops during the repeated and ongoing interactions.
Engagement accumulates through satisfaction, loyalty, influence, and
e(citement about your brand. 2rganizations who engage consumers to the
SS-2010-2012 TS12-M-344 78
point where they are moved to behavioral change do so by creating
opportunities for emotional connections through ongoing, consistently positive
6ustomer satisfaction is a nice to have, but does not result in a secure
customer. 0atisfied customers may be pleased with a recent e(perience, but
often do not have an emotional connection with the company. This lack of an
emotional connection often results in customers with high levels of customer
satisfaction switching to competitors for reasons such as a minor cost
difference or a slightly more convenient location.
2n the other hand, 6ustomer Engagement is a must have, and it is used by
the best and most successful companies in the world. =our characteristics of
6ustomer Engagement are
/etentionC Engaged customers will spend more with you over their
lifetime than with your competition.
EffortC Engaged customers will actually go out of their way to do
business with you * even spend more to benefit from your products,
service and brand.
.dvocacyC Engaged customers spread the good word, making it easier
and cheaper for you to attract new customers.
!assionC Engaged customers are passionate about the brand D so
passionate that they may even spend time actively promoting the brand
to others or defending the brand if others speak negatively about it.
!resently at Vodafone, 6 * 0at @6ustomer 0atisfactionB is measured on a
&uarterly basis. 6ustomer feedback is obtained after an interaction with the
personnel at the store or at the call center. These are aggregated to obtain
the overall 6*0at score. .gain, the problem here is that, only a very few
percentage of all customers respond to the feedback asked on the interaction.
This is where engagement plays an important role. The more the number of
responses obtained, the larger is the level of engagement.
SS-2010-2012 TS12-M-344 79
B%(%8.-2 '8 E(4*4%/%(-
". /eferrals
E. =re&uent !urchaseN /e* purchase.
I. !rovides fre&uent feedback
$. 6ross selling @+ttempt to sell additional products to current customers,
often based on their past purchases. #hese products could be related
or unrelated. ) and upselling @,pselling is a sales techni-ue whereby a
salesperson induces the customer to purchase more e)pensive items,
upgrades, or other add.ons in an attempt to make a more profitable
sale. B works better
H. 1ecrease in negative word of mouth
J. 6ustomers stay longer with the 2rganization
F. /educed /isk
The first three are the key indicators of customer engagement. 0imply put, it
would be ade&uate to look at the number of referrals, or the number of times
the customer has given a feedback or his fre&uency of re*purchase to
measure engagement.
M%*21+.(4 12-'/%+ L.8%-./% V*01% "LV# ; 12-'/%+ E(4*4%/%(-
6ustomer ?ifetime Value is usually defined as the total net income a company
can e(pect from a customer. The e(act mathematical definition and its
calculation method depend on many factors, such as whether customers are
<subscribers> @as in most telecommunications productsB or <visitors> @as in
direct marketing or e*businessB.
The 9usiness Intelligence unit of the 6/' division at .mdocs tailors
analytical solutions to business problems, which are a high priority of .mdocs)
customers in the communication industryC churn and retention analysis, fraud,
campaign management, credit and collection risk management and more.
?TV plays a major role in several of these applications, in particular 6hurn
analysis and retention campaign management. In the conte(t of churn
SS-2010-2012 TS12-M-344 80
analysis, the ?TV of a customer or a segment is important complementary
information to their churn probability, as it gives a sense of how much is really
being lost due to churn and how much effort should be concentrated on this
segment. In the conte(t of retention campaigns, the main business issue is
the relation between the resources invested in retention and the
corresponding change in ?TV of the target segments.
In general, there are three factors we have to determine in order to calculate
". The customer)s value over timeC In practice, the customer)s future
value has to be estimated from current data, using business knowledge
and analytical tools.
E. . length of service @?20B modelC describing the customer)s churn
probability over time.
I. . discounting factorC that describes how much each Q" gained in some
future time t is worth for us right now. This function is usually given
based on business knowledge.
Each component can be calculated or estimated separately or their modeling
can be combined. .t present, this sort of study cannot be carried out at
Vodafone since the data available is limited. 9ut, I have tried to describe the
approach that can be adopted to &uantify the 6?V. It is also understood that
Vodafone is migrating to a new version of 6/' that is provided by .mdocs.
@%ence, the reference to .mdocs 6/' aboveB.
Engaged customers can be classified into I segments D
". Engaged D Engaged customers report strong agreement with
statements about product satisfaction, purchase intentions, intent to
recommend productsNservices, and high regard for a company)s
E. 1isengaged DThese customers answer survey &uestions with
disagreeable or ambivalent attitude. 0ometimes disengaged customers
SS-2010-2012 TS12-M-344 81
are compelled to continue purchasing product due to some e(ternality,
but continue to damage the reputation of the company with bad mojo.
I. 0wing D These customers have the potential to be swayed to the ?ove
or %ate roup depending on future e(periences with the company. The
0wing roup answered survey &uestions in ways that indicated
passive satisfaction without active engagement. The 0wing roup is
where the action happens, where there is a great opportunity to win
loyal customers for life.
8sing surveys, we could identify the percentage of customers in each
category. This sort of classification will help us in designing the engagement
initiatives. 6ustomer engagement can be measured by using surveys. 9y
asking customers the right &uestions, we can arrive at the following
". 0hare of the wallet * <%ow many products do you use->
E. /eferrals D <In the last "E months, did you have a delightful e(perience
worth telling someone about-> If the answer was yes, <how many
people did you tell- <
I. ?ikelihood to 6hurn D <I would continue to do business with this
organization for at least the ne(t year>
$. =re&uency of feedback * depends on the how many customers gave
their feedback and how many of them have been giving feedback
0hare of the wallet indicates brand loyalty, referrals helps in word of mouth
marketing and fre&uency of feedback helps brining in continuous
improvements. 0tudies have shown that, Engaged customers have a larger
share of the wallet, often influence more referrals, give regular feedback and
are more likely to remain with the brand than disengaged customers.
SS-2010-2012 TS12-M-344 82
The above diagram shows how to use surveys as an effective tool at different
stages of customer lifecycle.
SS-2010-2012 TS12-M-344 8;
Intense competition in the industry has resulted in a drastic reduction in tariff
for services such as 0'0, roaming and long distance. 5umber portability
would give the consumers more choice in addition to increase in competition.
.ccording to e(perts, this would result in a further reduction in tariff.
%ere is an idea for smaller operators like Tata, Idea and .ircel to churn high*
./!8 customers away from the biggies.
'ost the high*./!8 customers are with the biggies like .irtel, Vodafone etc.,
because these operators were early in the game and anyone who could afford
a mobile phone three years ago should either be from a higher 0E6 segment
or enterprise users.
/ecent introduction of dual 0I' phones in the market triggered this idea.
". In 1elhi market, .irtel is the top player followed by Vodafone.
E. 6ustomers at 1elhi are willing to switch 0ervice provider if they are given
an option to switch with same mobile number.
I. 'obile 5umber !ortability 0ystem will change the scenario of the telecom
Industry. Earlier the only way a service provider was able to hold their
customer was by the mobile number. 9ut now if '5!0 comes in to action
customer will have freedom to switch with same number so customer will rule
the market.
SS-2010-2012 TS12-M-344 8?
$. In this battle between customers and service providers, service provider will
have to surrender against customers.
.ssuming that the value and service being offered by the new operator is
indeed better than the old one, it at least gives a chance to the new operator
and a convenient option to user who is fed up of his current operator without
loosing his old number.
". Enterprise specific promotions to increase awareness
E. Event driven surveys D as e(plained earlier in the report, this either
online like after a bill payment through the internet or it could be offline,
like after an interaction with personnel at a Vodafone store.
I. Verification problems and 9illing disputes are more serious problems D
Treat them with more severity.
$. 6ustomer profiling based on engagement D Engaged, disengaged and
H. 'easureNLuantify customer engagement and 6?V to be able to track
and improve.
J. +atching your competitor)s moves D ?ike tariff plans, promotional
activities, process, product innovations etc.
F. !ayment option at service desks D 0ervice desks at corporates should
include payment option too. .t present, only check payment is
possible. %aving multiple payment options like payment through
creditNdebit card facilities would greatly help in payments.
G. 0ocial networking is the ne(t level of engagement D This is an
emerging area today. 0ocial 6/' through social networking sites like
Twitter, =acebook etc. have become very popular in the last few years.
6ompanies like 5ike claim to have converted $3P of their community
SS-2010-2012 TS12-M-344 8
members into the company)s shoes. Through social networking,
customers can be made aware of the latest news and product updates.
9agchi, !radiptaC <Telecommunication /eforms and the 0tate in IndiaC
The 6ontradiction of !rivate 6ontrol and overnment 6ompetetion>, 6.0I
2cassional !aper^"I, 1ecember "##J
0ingh %arsha Vardhan, 0oni .nita and ;athuria /ajatC <Telecom !olicy
/eforms in India>, 6onvention on Telecom /eform, 5ew 1elhi, 'arch
Taneja, .bhinav, <. !hone in Every VillageCTaking Telecom to /ural
India>, 5ew Telecom Luarterly, 0eptember, E33".
<!rocedure for .llocation of 0pectrum on =irst 6ome =irst 0erved 9asis>,
overnment of India, 'inistry of 6ommunications, 1epartment of
Telecommunications@EI 'arch E33"B, available at
overnment of India, !ress Information 9ureau, 5ational Telecom !olicy
0tatement of Vinod Vaish, 6hairman, Telecom 6ommission of India, at the
.sian /egional 6onference of +0I0 @Tokyo "I*"H
Kanuary, E33I
/eport by /andall %eaton, !roduct 'arketing 0enior 6onsultant,
International Engineering 6onsortium, .vailable on httpCNNwww.orcnet.caNdocsNwll.pdf
SS-2010-2012 TS12-M-344 86
'ichael ?ee, <+?? In Emerging 'arketsC ;ey 1eployment Issues>,
Intelecon)s +ireless 'arket .nalyst, available on
.lan 0icher <!/0 Technology 2verview>, , 6ommunications4 !roduct
!lanning 'anager, 1ell, available on*gprs[overview.pdf
www. -+*.
SS-2010-2012 TS12-M-344 87
L1%2-.'((*.+% N12-'/%+O
1ear sirN'adam,
I re&uest to spare sometime to consider the following &uestionnaire. The
intention of this project is purely academicM all information provided by you will
be kept strictly confidential. 9e as truthful as you can.
Thank you for your co*operation.
L." which cellular service do you use-
T.T. 1ocomo
L.E .re you satisfied with the services of your current service provider-
SS-2010-2012 TS12-M-344 88
L.I would you like to change your service provider, if given a chance to
change it without changing your mobile number-
@.B If yes, why you change your service provider-
=le(ibility to change service provider
?ow switching cost
?ow tariffs of other provider
'ore Value added service by other provider
+orst service of 6urrent provider
2ther, please specify
@9B If 5o, please specify the reason-
L.$ what do you think, the advantages you will have if 'obile 5umber
!ortability 0ystem comes in to action-

SS-2010-2012 TS12-M-344 89
L.H what do you think, the problems you will face if 'obile 5umber !ortability
0ystem comes in to action-
SS-2010-2012 TS12-M-344 90