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Comparative study on Idea vs.

VodafoneProject report

Vs.

Submitted By:

Ankit gupta

Varun varshney

Pranjal aeron

Deepak khandodiya

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CONTENT

1. Acknowledgement

2. Executive Summary

3. Methodology (IDEA)

a) Product profile

b) Services

c) Marketing Strategy

d) Advertising Strategy

4. Methodology (Vodafone)

a) Product profile

b) Services

c) Marketing Strategy

d) Advertising Strategy

5. Data Analysis

6. Conclusion

7. Annexure

8. Bibliography

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ACKNOWLEDGEMENT

The fact that we have been able to prepare this project report is due to help and

support of many sources. We could not have achieved anything without those sources.

First of all we would like to express our enormous gratitude to our project

management teacher Mrs. Ramandeep Singhfor her continuous encouragement

and guidance throughout the project. Her way of thinking and converting ideas into

something concrete helped us a lot. She was always there to encourage us, whenever

we were down and looking for some support. She helped us to think in rightdirection and gave us his precious time in spite of having very busy schedule. We

thank him for her timely guidance and the pains she took to make us complete this

project report.

We are also thankful to our parents who were a constant source of inspiration to us.

Thank you

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Executive Summary

A. Sector & Players

The sector that we chose for the project is the telecommunicationsector.

We chose this particular sector because the India

telecommunication sector has seen a tremendous growth rate

over the past few years. The investors(both Indian as well as

foreign) have gained confidence over the years in the Indian

telecommunication market especially after the process of

globalization.

Another reason for choosing this sector was that it covers all the 3

aspects i.e. Distribution network, Service network and Sales

functioning.

The players (companies) chosen for study are Vodafone cellular

ltd. and IDEA cellular ltd. Both the companies are leaders in the

market and both are renowned for providing quality services inIndian subcontinent.

We have done an in depth study of the distribution networks the

service networks and the sales functions.

B. Information sources

Primary sources

The primary source of information has been the dealers of both

the companies. They have provided us all data of the product,

services, and sales, after sales network in their capacity as

channel partners of the concerned companies.

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Secondary sources

Various sources such as company URLs, Internet, magazines

and relevant journals have been used. All information retrieved

from such sources has been appropriately classified in thebibliography.

.C Data collection tools

The tool we have used for data collection in this report is:

a. questionnaires

Samples of this can be found in the annexure

D. Limitations

Some information was not provided to us by the company citing it

as confidential. Like how much profit margin they keep.

Time constraint

Most interviews with the company sources have been quite short,

limiting the information we could gather due to the demands on

their time.

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Product Profile

One of India's leading GSM mobile serviceoperators, IDEA Cellular is headquartered inMumbai and has over 21 million subscribers.IDEA has licenses to operate in 13 circlescomprising states of Mumbai, Delhi, UP,Uttaranchal, Haryana, Rajasthan, MadhyaPradesh, Chattisgarh, Gujarat, Maharashtra(excluding Mumbai), Goa, Andhra Pradesh,Bihar and Kerala. IDEA's footprint coversapproximately 70 per cent of the national market for mobile telephony. Idea

is targeting roll out in Mumbai and Bihar circles shortly for which spectrumis already allotted. IDEA has also received Letter of Intent for remaining 9circles.

IDEA offers GPRS on all its operating networks for both postpaid and pre-paid services, and was the first company to demonstrate and commerciallylaunch the next generation EDGE technology for its Delhi Circle. IDEA hasalso been a pioneer in technology usage by employing satellite connectivityto reach inaccessible rural areas in Madhya Pradesh.

A leader in value-added services, innovation is central to IDEA's VASproducts. IDEA was the first to offer 'Global SMS' in over 540 networksacross all technology platforms, and the first to offer a voice portal with'SAY IDEA'. IDEA has also recently launched services like Press * to copya Dialer tone,IDEA TV first GSM Multi channel mobile television experience,IDEATIMES The first MMS magazine, Voice chat, Instant Messenger andmore. IDEA has also launched its PCO service to reach a customer base.IDEAs tariff plans have been customer friendly, catering to unique needs of

different consumer segments. 'WOMENS CARD' is meant to fulfill specialneeds of women on the move, and YOUTH CARD specifically caters tothe emerging youth segment.IDEA is also the only Indian GSM operator to win the GSM Association

Award in the Best Mobile Technology category for the 'Best Billing andCustomer Care Solution', both in 2006 and 2007.

http://www.ideacellular.com/

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Services

IDEA Showcases EDGE Based Services in India

Right on the back of its high-profile takeover ofEscotel, IDEA Cellular Ltd. today became thefirst cellular operator in the country to pilotlaunch EDGE based services. With enhancedData Download Rates of over 160 kbpsoffered by EDGE technology, subscribers ofIDEA will now be able to enjoy moviepreviews, multimedia messages with videoattachments, web-infotainment, high speed video downloads, java gamedownloads and other internet based multi-media experiences on theirEDGE enabled mobile phones. Targeted primarily to the savvy consumerwho is on the move, Idea Cellular's EDGE based services are expected toenable its subscribers to feel and enrich their experience in data services.

Some words from Mr. vikram mehmi CEO Idea Cellular India Ltd.

"IDEA has always endeavored to provide next generation technology,ahead of its time to its subscribers. While other players are still thinkingabout it, we have taken another step towards bringing the future to ourcustomers and make their GSM experience richer and more value-added.We are looking to deliver the world's best to our customers and wechose Nokia, a leader in GSM / GPRS / EDGE mobile communicationstechnologies, to launch our EDGE services. EDGE will help IDEA remainahead of competition and consolidate its position to emerge as one of thetop players in the cellular industry.

http://images.google.co.in/imgres?imgurl=http://adsoftheworld.com/files/images/Idea-network-ad2.preview.jpg&imgrefurl=http://adsoftheworld.com/media/print/idea_cellular_service_network_2&h=295&w=460&sz=32&hl=en&start=3&tbnid=_FyysYbOIULoYM:&tbnh=82&tbnw=128&prev=/images?q=idea+cellular&gbv=2&hl=en&sa=X

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EDGE based services provided by idea includes:

:: Internet Surfing: speeds of internetsurfing with EDGE enable handset will

be better than speeds available fromexisting fixed line dial-up modem. Typicalspeeds achieved 80 to 160 kbps

:: Mobile Web Browsing: high-speed wireless internet surfing using anEDGE enabled handset.

:: Video streaming i.e. viewing a live video content in your handset anddownloading Bollywood/Hollywood trailers, fashion shows etc.

:: Multimedia Messaging (MMS) & Downloads: sending messages withpictures, video clips, sound and text. Downloading Bollywood, fashionshow

Following the first ever, live demonstration of EDGE in the country, Mr.Ashish Chowdhary, Country Head, Nokia Networks (India & South Asia)said "With Nokia's EDGE technology, Idea will be able to offer itscustomers high-speed data services and rich multi-media content which isat least three times faster than existing GSM / GPRS capabilities. Nokia is

the only end-to-end solutions provider delivering such a comprehensiverange of value-added EDGE technologies.

http://images.google.co.in/imgres?imgurl=http://www.adityabirlanuvo.co.in/media/features/images/idea_forays_left01.jpg&imgrefurl=http://www.adityabirlanuvo.co.in/media/features/idea_cellular_forays.htm&h=122&w=143&sz=7&hl=en&start=11&tbnid=LdKxZb6c6KjLgM:&tbnh=80&tbnw=94&prev=/images?q=idea+cellular&gbv=2&hl=en&sa=X

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IDEA : The Big fish

Idea will likely change the course of Indian telecom

industry; the fifth largest telecom operator has

announced snapping up B K Modi's 40.8 percent

stake in Spice Communications for an amount of

Rs 2,700 crores. The deal values Spice

Communications at around Rs 6,800 crores.

Value Added Services

THE IDEA Value Added Services, a vibrantbouquet of "little conveniences" "small

pleasures" "bits of happiness" "dollops of

infotainment" and all those "itsy bitsy" wants that

together make up THE BIG SMILING PICTURE.

SMS based services to Voice based ones, the

Idea range cuts across all modes of communication to ensure the BEST

VALUE for your money. So be it downloading the latest ring tones or

sharing the freshest of blonde jokes, be it checking the status of your

cousin's train arrival time or arranging a pick up for your boss's delayed

flight, Idea hands you the power to do it all.

Idea's Value Added Services are as innovative and exciting as your

desires.

http://images.google.co.in/imgres?imgurl=http://adsoftheworld.com/files/images/Idea-network-ad1.preview.jpg&imgrefurl=http://adsoftheworld.com/media/print/idea_cellular_service_network_1&h=294&w=460&sz=21&hl=en&start=4&tbnid=XrvhQdctyuajMM:&tbnh=82&tbnw=128&prev=/images?q=idea+cellular&gbv=2&hl=en&sa=Xhttp://images.google.co.in/imgres?imgurl=http://adsoftheworld.com/files/images/Idea-network-ad1.preview.jpg&imgrefurl=http://adsoftheworld.com/media/print/idea_cellular_service_network_1&h=294&w=460&sz=21&hl=en&start=4&tbnid=XrvhQdctyuajMM:&tbnh=82&tbnw=128&prev=/images?q=idea+cellular&gbv=2&hl=en&sa=Xhttp://images.google.co.in/imgres?imgurl=http://adsoftheworld.com/files/images/Idea-network-ad1.preview.jpg&imgrefurl=http://adsoftheworld.com/media/print/idea_cellular_service_network_1&h=294&w=460&sz=21&hl=en&start=4&tbnid=XrvhQdctyuajMM:&tbnh=82&tbnw=128&prev=/images?q=idea+cellular&gbv=2&hl=en&sa=Xhttp://images.google.co.in/imgres?imgurl=http://adsoftheworld.com/files/images/Idea-network-ad1.preview.jpg&imgrefurl=http://adsoftheworld.com/media/print/idea_cellular_service_network_1&h=294&w=460&sz=21&hl=en&start=4&tbnid=XrvhQdctyuajMM:&tbnh=82&tbnw=128&prev=/images?q=idea+cellular&gbv=2&hl=en&sa=X

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MARKETING STRATEGY

To occupy the Indian market Idea Cellularplans to focus on its customer service and

customer experience aspects. The company hasapplied for licenses to operate in the telecomcircles of Tamil Nadu, Karnataka and Punjaband is awaiting clearances.

Mobile penetration in the telecom circle of abovesaid states is about 80 per cent the highest inIndia and would merit a different marketing strategy compared with othertelecom circles. So, the company plans to leverage its `top quality' networkinfrastructure thereby assuring better customer experience.

Churn level (movement of customers from one mobile service provider toanother) is low at about 5 per cent nationally. Customers are moving mainlybecause of network related problems such as instability, call drops andcongestion. The best way for Idea Cellular to enter the new market would be bypromoting its stable and efficient networks.

In the coming years, the company plans toinvest about 50 per cent of its funds inupgrading infrastructure in its existing circles ofoperation besides setting up fully integrated

systems in new circles. In the last 9 months, ithas invested about Rs 2,000 crore oninfrastructure.

The company would target the value addedservices market in every State because it has ahuge potential to grow. Right now company istesting on Television on Mobile technology. Howeverthe recent TRAI decisionto cut roaming charges would affect the company. There will be annual loss ofabout Rs 100 crore. But it won't affect the company much because the number of

roamers across India is very less.

Idea Cellular Ltd will offer its customers full talk values. Therefore, company hastruly has embraced pre-paid with aggressive offerings, competitive rates andeffective marketing strategies.

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ADVERTISINGSTRATEGY

IDEA Cellular will embark on anaggressive advertising strategy to createawareness for its brand. We plan tospend approximately 7 per cent of our netrevenues on advertising. This figure isabout Rs 63 crore. The company hasrecently launched a TV commercial forIdea and is currently working on a coupleof more ad films. Ideas brand ambassador Abhishek Bacchan is creating anemotional awareness across the country. Idea through its advertising is planningtrying to touch every market segment across the nation. Meanwhile, not divulging

the company's future marketing initiatives Idea cellular ltd. would revolve aroundthe company's positioning of `liberation through an idea'.

Idea Cellular will also be rolling out its cellular services in Delhi as the fourthoperator in a month's time. The service would be of much better quality than thatwhich is being offered in the Delhi market currently. In addition, the company willoffer several value-added services such as vernacular SMS (in 9 languages),games on the mobile, a large covered area for pre-paid roaming, and so on.

A different approach to target and growth can be easily seen by in recentcommercials by idea. Idea along with Abhishek bachhan is able to create themagic across the country. Soon new commercials will be on screen which on onehand would attract the new customers through different tariff plans and on otherside would touch the hearts of Indian people.

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PRODUCT PROFILE

Vodafone is a mobile network operatorheadquartered in Berkshire, England, UK. It is the

largest mobile telecommunications network companyin the world by turnover and has a market value ofabout 75 billion (June 2008). Vodafone currentlyhas equity interests in 25 countries and PartnerNetworks (networks in which it has no equity stake)in a further 42 countries. The name Vodafone comesfrom Voice data fone, chosen by the company to"reflect the provision of voice and data services overmobile phones."

At 31 March 2008 Vodafone had more than 260 million customers in 25 markets

across 5 continents. The eight markets where it has more than ten millionproportionate customers are the United Kingdom, Germany, India, Italy, Spain,Turkey, Egypt and the United States. In the U.S., these customers come via itsminority stake in Verizon Wireless, and in the other seven markets Vodafone hasmajority-controlled subsidiaries.

On 30 May 2006, the company announced a loss before tax of 14.9 billion for2005, the biggest loss in British corporate history The company was pushed intoloss by impairment charges of 23.5 billion, which related to the acquisition ofMannesmann several years earlier, and losses of 4.6 billion in relation to its

discontinued business in Japan. At an operating level it remained highlyprofitable, with an operating profit on continuing operations of 9.4 billion beforeimpairment costs.

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commencedoperations in 1994 when its predecessor Hutchison Telecom acquired thecellular license for Mumbai. Vodafone Essar now has operations in 16 circlescovering 86% of India's mobile customer base, with over 44.1 million customers*.

Over the years, Vodafone Essar, under the Hutch brand, has been named the

'Most Respected Telecom Company', the 'Best Mobile Service in the country' andthe 'Most Creative and Most Effective Advertiser of the Year'.

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SERVICES

Vodafone worlds largest telecommunications

service provider is planning something new in

India. Vodafone is moving into the era of totalcommunications.

Mobile is always at the heart of what we do, butnow we are moving into integrated mobile and PCcommunication services. Services and devices that are easy to use, thatconnect you to your friends, family, work, information and entertainment,wherever you are and whatever youre doing at the best available price.

Vodafone PassportVodafone Passport is price structure for calls made on Vodafone andpartner networks. You take your home tariff abroad and know exactly whatthe charges will be when you use roaming services.

Facts:

Vodafone Passport is available in 13 countries More than 12.7 million Vodafone customers have signed up

On Vodafone Passport, you can make calls using your domestic tariff, insome cases including free minute bundles, and receive calls at no chargefor a one-off connection fee per call.

Vodafone email

There is increasing demand for handheld solutions that allow real-timeaccess to email, calendar, contact and other applications.

Vodafone Business Email, Windows Mobile Email and Blackberry fromVodafone provide business customers, ranging from small start-upcompanies to multinational corporate, with wireless access to theirenterprise and internet based email.

Facts:

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1 million Vodafone email customers Vodafone Business Email and Blackberry from Vodafone are

available in 36 countries

Vodafone email gives you full messaging functionality. You can use it tosend, store and manage emails, just like you would on your PC. You caneven view and edit attachments in popular document formats such asMicrosoft Word, PowerPoint and Excel

Vodafone live!

Vodafone live is an on-handset communications and multimedia portal,which gives you access to services like games, ringtones, news, sports andinformation.

Facts:

Vodafone live! is available in 28 countries 15.9 million active Vodafone live! devices

Vodafone live! is available over our 3G network, enabling far higher qualitycontent and communication services, like news broadcasts, sportshighlights, music videos and movie trailers. Content partners include TimeWarner, News Corp, NBC, Universal and Sony.

Vodafone Mobile Connect

Vodafone Mobile Connect data cards provide the best and fastest dataconnections available on vodafone network, enabling simple and secureaccess to email, corporate applications, company intranets and the internetfor customers on the move.

Facts:

1.5 million Registered Vodafone Mobile Connect data cards. Vodafone Mobile Connect 3G/GPRS data card is available in 33

countries Vodafone Mobile Connect with 3G broadband (HSDPA) data card is

available in 26 countries

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Vodafone have entered into exclusive partnerships with Acer, Dell, HP andLenovo. These companies offer a range of 3G broadband connectivitynotebooks with built-in Vodafone SIM supporting HSDPA technology.

Vodafone have also launched the Mobile Connect USB Modem, a compactand easy to use plug-and-play device.

Vodafone Office

Vodafone Office is the umbrella name for a series of products and servicesdesigned to meet all our business customers communications needs.

With Vodafone Wireless Office companies can reduce their number of fixeddesk phones, transferring voice minutes from the fixed to the mobile

network. The solution includes a closed user group tariff, allowingemployees to call each other for a flat monthly fee.

Facts:

More than 2 million Vodafone Wireless office customers Vodafone Wireless Office is available in 14 countries

Vodafone Wireless Office is based on Mobile Virtual Private Network(MVPN) technology. An MVPN is a platform that allows you to connect all

your company mobiles and selected landlines together. You have a singlephone to use in and out of the office.

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Marketing strategy

Vodafone marketing aim to retain market leadership

Vodafone's strategy is product-led; thecompany is continually developing newproducts and services which utilize thelatest technological advances.

However, as consumers becomeincreasingly sophisticated users ofmodern mobile technology, they makenew demands and seek added value through product improvements.Consumers are becoming more demanding and suppliers have to listen.

Vodafone is trying to feed this back into its product strategy.

In India, the mobile phone market has approached maturity in a very shortspace of time, particularly with young people. To keep its leading edge,Vodafone is continually looking to add value to the services it provides andto the packages it offers to customers.

As everyday there are new customers, So the challenge is to provideadded value services and competitive charges to existing customers whoare becoming more sophisticated and demanding.

For example, young people think hard about which mobile phone to buy. Intheir search for the widest range of appropriate services and the best valuefor money, young people in particular examine catalogues, surf the Internetand study what their friends have bought. Trying to sell to them is tough.

In order to retain market leadership, Vodafone has established a set ofmarketing objectives. These are to:

obtain new customers

keep the customers it already has

introduce new technologies and services

Continue to develop the Vodafone brand.

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Vodafone is achieving these objectives by continually updating the range ofphones and services offered to keep ahead of its competitors. Vodafonealso communicates regularly with its customers to keep them well informedof the benefits of all Vodafone products.

VODAFONE BRINGS IPHONE TO INDIA

Its time for unlocked iPhone sellers in India to

close shop as cell operator Vodafone is officially

bringing the much awaited iPhone to the

country in September this year. The price of

iPhone in India will

be around 28k.

Steve Jobs hinted last month that iPhone launch in India would happen

sometime in 2008 and that Apple may not restrict the iPhone distribution

deal to just one operator like they do in the US where AT&T is the exclusive

distributor.

According to BS, Apple could make iPhone accessible though other

telecom carriers in India like Reliance or Airtel. Earlier reports suggested

that iPhone in India could debut at Reliance Retail - that obviously didnt

happen but the Vodafone - Apple deal suddenly makes lot of sense.

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ADVERTISING STRATEGY

Hutch to Vodafone

To announce the name change, the companyhas earmarked an advertising budget of Rs 320

crore. When Maxtouch became Orange, the

company painted Indian towns orange with its

outdoor media campaigns. Later, the company

switched over to pink colour for its Hutch brand.

Now, its red all the way,

Along with the name change, Vodafone has also revamped its

communication strategy with a new logo and new pug named Spikey,which has replaced Chika.

On the agencys creative strategy, Vodafone integrated advertising

campaign will include print ads, television commercials, outdoor and radio

advertising. The tagline for the ad campaign will remain the same -

Wherever you go, our network will follow,

The brand has already changed its name twice from Maxtouch to Orange

and Hutch. As long as the quality of its service remains good, the namechange will not have any impact,

http://images.google.co.in/imgres?imgurl=http://www.techgadgets.in/images/hutch-vodafone-logo.jpg&imgrefurl=http://www.techgadgets.in/networking/2007/20/hutch-renamed-to-vodafone-in-india/&h=300&w=320&sz=25&hl=en&start=14&tbnid=Y78vtAk4wu6G3M:&tbnh=111&tbnw=118&prev=/images?q=vodafone&gbv=2&hl=en

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The Vodafone pug

Vodafone rolled out four Commercials featuring

Hutchs animated boy and girl, introducing the

new brands logo to consumers.

Four other ads with the pug did the rounds of

telly screens. The pug was shown in a red

basket, popping up from a red cart, drying

himself on a red mat, and hiding in a red blanket. Each of these made use

of the Hutch is now Vodafone tagline.

The print ads, in all major languages in several leading dailies, were keptunbelievably simple: a still shot of the pug inside a red kennel. The same

creative was used in outdoor hoardings as well, in all the 16 circles in which

Vodafone now operates.

If we look at other competitors like airtel or reliance then the difference in

marketing can easily be seen. On one hand Vodafone uses its registered

trademark the pug spikey and other animated commercials for advertising

whereas other brands mostly prefer cricket and bollywood stars to

advertise for their services. The approach to touch the Indian customers is

quite different whereas still hutch is not able to create an emotional

awareness among rural Indians.

http://images.google.co.in/imgres?imgurl=http://www.fonearena.com/blog/wp-content/uploads/2007/09/vodafone-2dpug.jpg&imgrefurl=http://www.fonearena.com/blog/2007/09/27/vodafone-india-sports-the-global-red-branding.html&h=337&w=347&sz=25&hl=en&start=16&tbnid=qZAzjRbTxpBLXM:&tbnh=117&tbnw=120&prev=/images?q=vodafone&gbv=2&hl=en

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CONCLUSION

From the data analyzed it can be concluded that in terms of

customer satisfaction Vodafone is marginally ahead of idea

however in terms of changing the connection there are lesser no

of people who changed the Vodafone connection than that of idea

one.

But when we take a look at Marketing and Advertising strategy of

both the companies idea and Vodafone both are doing well in

their own different ways. In terms of marketing strategy idea is

doing very well in rural areas nowadays. However, Vodafone isdoing quite well in urban areas. The above report contains all the

statistics which shows the results of Vodafone & idea cellular.

In terms of overall growth and future growth prospective both the

companies are doing well. However both the players with their

unique strategies are growing everyday. In near future due to

TRAI regulations and increase in the frequency distribution &

spatial area the competitions I going to be tough for both theplayers.

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0

10

20

30

40

50

60

70

Vodafone Idea

Graph showing Customer Satisfaction &

'Connection' changing Customers

Customer

Satisfaction

Changing

connection

0 10 20 30 40 50 60 70

Vodafone

Idea

Billing Features

Customer Service

Network Coverage

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QUESTIONNARE

Name or initials:

Gender/Age:

Education:

Nationality:

Q 1: Which mobile service you use?

Idea

Vodafone

Q 2: Are you satisfied with your service provider?

Yes

No

Q 3: Did you ever change your service provider?

Yes

No

Q 4: How much are you satisfied with the following? Please tick one box across the rowfor each factor?

Very Fairly Not very Not at all Not

Satisfied Satisfied Satisfied Satisfied Applicable

Network coverage

Customer service

Price of additional

Billing features

Price you pay on

Same network

Price you pay on

Other network

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BIBLIOGRAPHY

The entire project is the result of our sincere effort. We have taken the help

of library, referring to different books and how can we forget the net.

1. Books Referred :-

a) Marketing Management by Philip Kolter

b) Sales Management by Richard R.Still, Edward W.Cundiff, Norman

A.P. Govoni

2. Websites :-

a) www. Google.com

b) www. Vodafone.Com

c) www.Ideacellular.Com

d) en.wikipedia.org

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