TOPIC

Understanding the importance of Branding at Vodafone and developing Point of Sale material for in-store branding.

1

CHAPTER - 1

INTRODUCTION

2

TELECOMMUNICATION – The word telecommunication is adapted from the French word

telecommunication. It is a mix of tow words, a Greek prefix tele-, meaning `far off’, and a Latin word

communicates, meaning `to share’. Telecommunication refers to the transmission of signals over a distance

for the purpose of communication. In today`s world, telecommunication is widespread and devices that helps

the process, such as the television, radio and telephone, are common and are deeply penetrated throughout the

globe. There is also a vast web of networks that connect these devices, which includes computer network,

public telephone network, radio network, television network. Computers facilitate communication with the

help of internet using mediums like e-mails, instant message, video and audio conferencing.

The most vital elements of telecommunication systems are:

A transmitter that receives information and converts in into signal for transmission

.

A transmission medium over which the signal is transmitted.

A receiver that receives information and decodes it back into useful information.

Often telecommunication devices are two-way devices i.e. acting as a transmitter as well as a receiver.

Such devices are called transceiver. For example, a mobile phone is a transceiver as it encodes information

into signal for transmitting as well as receives signals and decodes in back into useful information.

Telecommunication over a phone line is called point-to-point communication as it is between a single

transmitter and receiver. Similarly, telecommunication by a radio station is a one sided communication

with a single transmitter i.e. radio station and numerous receivers.

A network can be defines as a collection of transmitter and receivers or transceivers. Digital networks may

consist of more than one routers to route data to correct users. An analogue network is one which uses one

or more switches to establish a connection between two or more users. For both types of network a

repeater is included to amplify or recreate signals when transmission is over long distances. This is to

prevent attenuation that can render a signal indistinguishable from noise.

The shaping of a signal to carry information over different channels is called as modulation. Modulation is

an important concept in telecommunication and is repeatedly used to impose the information of one signal

to another. Modulation is used in representing digital messages as analogue waveforms. This method is

called keying.

3

CHAPTER - 2

INDUSTRY PROFILE

4

2.1 Telecom Industry in India

The telecom industry is among the most rapidly growing industries in India. India has an estimated 200

million telephone lines marking it as the third largest network after China and USA. With a growth rate of

approx. 45% Indian telecom industry has the highest growth rate in the world. The growth in wireless

telecommunication in Asia-Pacific is mainly spurred by countries like India and China.

India`s mobile phone subscriber base is growing at an astonishing rate of 82.2%

China with a subscriber base of 48% is the leading market in Asia-Pacific. India has a 6.4% share

in the Asia-Pacific mobile phone market.

Considering the fact that India and China both have similarly huge population base and India

lagging behind in mobile phone market indicates that there is a huge scope for growth in this

sector.

2.2 History of Indian Telecommunication

India is the world`s fastest growing industry in terms of number of wireless connection after China

with 811.59 million mobile phone subscribers.

The world telecommunication industry estimates that by 2013 India will have 1.200 billion mobile

subscribers. Furthermore, projections say that by 2013 India will exceed China in terms of total

subscriber count.

How telecommunication started in India:

Until 1850 postal means of communication was the only mean of communication. In 1850, an

experimental electric telegraph system was started for the first time in India connecting Calcutta

(Kolkata) and Diamond Harbour (southern suburbs of Kolkata, on the banks of Hoogli River).

It was opened for the use of British East India Company in 1851 and during the same time

construction of telegraph started throught out the country. A separate department was opened to public

in 1854. Dr. William O`Shaughnessy, the pioneer of telegraph and telephone in India worked at the

Public Works Department.

5

In 1881, Oriental Telephone Company Limited of England constructed telephone exchanges at

Kolkata, Bombay, Madras and Ahmedabad. On 28th January 1882, first telephone services were

established and used with a total of 93 subscribers.

From the year 1902 India dramatically changed from telegraph lines to wireless, radio telegraph, radio

telephone, trunk dialing etc. Trunk dialing was used in India for more than a decade where calls were

made with the help of operators. During British period all major towns and cities were connected

through telephones.

Department of Telecom (DOT) became responsible for telecom services throughout the country only

in 1975 after its separation from Indian Post & Telecommunication. Almost a decade later Mahanagar

Telephone Nigam Limited was extracted out of DOT to provide telecommunication services in Delhi

and Mumbai.

In 1990s the government opened up the telecom sector for private investment. TRAI (Telecom

Regulatory Authority of India) was setup in 1995 thereby reducing government`s role in deciding

tariffs and policies for running the telecom sector. The operation wing of DOT was corporatized in the

year 2000 and renamed as Bharat Sanchar Nigam Limited.

In the past 10 years many private operators especially foreign investors successfully entered the high

potential Indian telecom market. Globally acclaimed operators like Vodafone, Telenor, NTT Docomo,

Sistema, Singtel, Maxis, Etisalat invested in indian mobile operator.

WIRELESS COMMUNICATION

Pager Services

Pager communication was successfully launched in India in 1995. Pagers were seen as a device that granted

the much needed mobility in communication, especially for businesses. In the pager section Motorola was the

major player with 80% of the market share. The other companies include Mobilink, Pagelink, BPL, Usha

Martin telecom and Easy call. Pagers were generally worn on the belt or carried in pocket.

The business reached its peak in 1998 with the subscriber base reaching nearly 2 million. The number dropped

to less than 500000 in 2002. The pager companies in India were finding it difficult to maintain business.

While 2-way pagers could have saved the market but the companies were not in a position to upgrade the

6

infrastructure to save the ailing market. Also the Indian Paging Service Association were unable to help the

industry.

Mobile Communication

First mobile telephone services of non-commercial nature were started in India on the 48 th Independence Day

at Delhi. The first cellular call was made in India on July 31st, 1995 over the Modi Telstra`s MobileNet GSM

network of Kolkata. Later mobile services were divided in separate zones known as circles. Competition has

caused prices to drop and call charges in India are the cheapest in the world.

In 2008, India offered its people the services of 3G enabled mobile and data services by government owned

MTNL and BSNL. Later in 2010 private operators were given rights to offer 3G services.

Cellular services can be further divided into two categories: Global System for Mobile Communications

(GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-

Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of

international and domestic long distance telephony services are the major growth drivers for cellular industry.

Cellular 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.

Broadband communication

India stands 3rd after U.S and Japan in largest internet users of which 40% of the internet is used via mobile

phones. However, India ranks the lowest in terms of providing broadband speed with lowest of 256kbps and

the maximum of 2mbps is still in a nascent stage.

7

2.3 TELECOM REFORMS IN INDIA

The Reform Process

• Telecommunications - a “natural monopoly”

• Early 1990s – concept of “natural monopoly” challenged by technological changes

• Dismantling of monopolies leading to :

- Competition and Lowering of tariffs

- Better consumer services

• 2000 - 2001 the years of telecom reforms

Reform Process – Three Phases

(a) 1st phase (the Eighties)

• “Mission Better Communication”

• Private manufacturing of customer premise equipment – 1984

• C-DOT for development of indigenous technologies -1984

• STD/ISD PCO franchisees

• Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) established –

1986

• High-powered Telecom Commission (1989)

Reform Process – Three Phases

(b) 2nd phase (the early Nineties)

• New Economic Policy (NEP) -1991

• Telecom equipment manufacturing - delicensed in 1991

• Value-added services opened in 1992

• Radio Paging, Cellular Mobile and Basic Telephony sectors opened gradually thereafter

• National Telecom Policy announced in 1994

• Independent statutory Regulator (TRAI) – 1997

• ISPs opened up in 1998

• Major involvement of private sector in telecom growth

8

Reform Process – Three Phases

(c) 3rd phase (late Nineties onwards)

• New Telecom Policy 1999 (NTP-99)

• Migration from fixed licence fee regime to revenue sharing

• Strengthening of the Regulator

• Opening up of the National Long Distance with unrestricted entry

• Preponement of International Long Distance opening from 2004 to 2002

• Corporatization of telecom services - formation of BSNL

Indian Telecom Sector

• 8th largest network

• Annual growth rate: 22% for basic services and over 100% for Internet and Cellular services

• Lines added to basic services in last 5 years are one-and-a half times of last 5 decades

• 4,10,757 villages out of 6,07,491 provided with VPTs

Telecom Services

• All telecom services within country opened up

• Basic, Cellular, Internet, Radio paging, National Long Distance, Infrastructure providers, Public Mobile

Radio Trunking, Voice Mail/Unified messaging, VSAT etc

• Free competition in all services except those limited by spectrum (cellular)

• Opening up of International Long Distance preponed from 2004 to 1st April 2002

BSNL

• Telecom Services wing of the Government corporatized with the formation of Bharat Sanchar Nigam

Limited (BSNL) on 1st October, 2000

Basic Services

• Besides BSNL and MTNL licences given to 31 operators

• Use of WLL permitted

• Can have franchisees for the last mile access

• Steps aimed at increasing the telecom network penetration to rural areas.

9

Cellular Mobile

• Growing at an exponential rate

• 5.3 million Customers

• About 0.25 million customers getting added every month

• Four operators including BSNL/MTNL

• 80 licensees offering services

Internet

• Opened up in November, 1998, Liberal policy

• No licence fee upto 31st october, 2003 and subsequently Re. 1 per annum

• ISPs permitted to set up international gateway using satellite or submarine cable

• can take bandwidth directly from foreign satellite and also give bandwidth from gateway to other ISPs

• About 500 licences issued, 150 operational

• Subscribers- 0.2 million in 1999 to 3.5 million in 2001

National Long Distance

• Opened up in 2000

• To encourage infrastructure building, two categories of infrastructure providers (IP)

• IP - I for provision of assets such as dark fibre, ducts -only registration and no financial commitments

• IP - II for provision of end-to-end bandwidth

IT enabled services

• IT-enabled services like call centres showing significant growth

• India a favourite destination for outsourcing of back office operations

Regulator

• Telecom Regulatory Authority of India (TRAI) strengthend

• Telecom Dispute Settlement and Appellate Tribunal (TDSAT) created

10

Unlimited Investment Opportunities

• FDI upto 100% in Telecom manufacturing, ISPs without gateways, Infrastructure provider (IP) - I, Call

centres and IT enabled services

• FDI upto 74% in ISPs with gateways, IP-II and Radio paging

• FDI upto 49% in all other telecom services viz. Cellular, Basic, NLD and other services

Impact of Telecom Reforms

• NLD charges dropped by more than 60%

• Cellular mobile

• air time charges down by 8 times

• cheaper handsets

• Increased availability of bandwidth

11

2.4 COMPETITION OVERVIEW

Major Players

There are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile,

Spice Communications)

Name Bharat Sanchar Nigam Limited (BSNL)

Year of Establishment 2000

Company Profile Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company

providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet,

Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it

has become one of the largest public sector unit in India. It has a network of over 45 million lines

Global Presence/ Marketing covering 5000 towns with over 35 million telephone connections.

Future Prospect BSNL plans to expand its customer base from present 47 millions lines to 125 million

lines and Infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three

years.

Name Mahanagar Telephone Nigam Limited (MTNL)

Year of Establishment 1986

Company Profile MTNL was set up by the Government of India to upgrade the quality of telecom

services, expand the telecom network, introduce new services and to raise revenue for telecom

development needs of India.s key metros. MTNL with a market share of about 13% of the National

telecom Network has a customer base of 5.92 million. The Govt. of India currently holds 56.25% stake

in the company.

Acquisitions / Strategic Alliances MTNL has formed a Joint Venture company in Nepal by the

name of United Telecom Ltd. (UTL) in collaboration with Telecom Consultants India Limited (TCIL)

12

in 2001 for providing WLL based basic services in Nepal. MTNL has set up its 100% subsidiary.

Mahanagar Telephone Mauritius Limited. (MTML) in Mauritius, for providing basic, mobile and

international long distance.

Name Videsh Sanchar Nigam Limited (VSNL)

Year of Establishment 1986

Company Profile The Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned

corporation. The company operates a network of earth stations, switches, submarine cable systems,

and value added service nodes to provide a range of basic and value added services and has a

dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai,

New Delhi, Kolkata and Chennai.

Global Presence/ Marketing The Company has 52 subsidiaries in 21 countries as well as operations

across four continents.

Acquisitions / Strategic Alliances VSNL acquired Nasdaq-listed Teleglobe International Holdings

Ltd for $239 million in 2005 Videsh Sanchar Nigam Ltd acquired Tyco Global Network, submarine

cable system, for USD 130 million in 2005

Future Prospect The company plans to expand its wholesale voices services across the EU, to

effectively enable enterprise customers and retail voice carriers to connect to India. VSNL is adding its

capacity to meet the overwhelming demand for connectivity to India in the wholesale voice services

domain. The company is also offering flexible agreements and charging methods to meet the growing

demands of the wholesale voice market

NAME Bharti

Year of Establishment 1985

Company Profile Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting

investments in telecommunications services. Its subsidiaries operate telecom services across India.

Bharti’s operations are broadly handled by two companies: the Mobility group and the Infotel group.

13

Global Presence/ Marketing The mobile business provides mobile & fixed wireless services using

GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers

broadband & telephone services in 94 cities.

Acquisitions / Strategic Alliances Bharti Telecom and British Telecom formed a 51%:49% joint

venture, Bharti BT Internet for providing Internet services, in 1998 Bharti Tele-Ventures acquired an

effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the cellular services provider

in Karnataka and Andhra Pradesh circles in 1999. Bharti Telesonic entered into a joint venture, Bharti

Aquanet, With SingTel for establishing a submarine cable landing station at Chennai in 2001. A 50:50

joint venture was signed between Bharti and SingTel to undertake the largest infrastructure project

between Singapore and Indian companies in 2001.

Future Prospect Bharti Airtel company is planning to set up 3000 more towers as part of enhancing

their rural coverage and will now focus on rural and semi-urban areas.

Name Reliance Communications

Year of Establishment 1999

Company Profile Reliance Telecom's cellular services are available in 340 towns within its eight-

circle footprint. Reliance Infocomm also offered for the first time in India, mobile data services though

its R-World mobile portal. This portal leverages the data capability of the CDMA 1X network.

Reliance Infocomm offers a complete range of telecom services covering mobile and fixed line

telephony including broadband, national and international long distance services, data services and a

wide range of value added services and applications aimed at enhancing productivity of enterprises

and individuals.

Global Presence/ Marketing Reliance Communications has IP-enabled connectivity infrastructure

comprising over 150,000 kilometers of fiber-optic cable systems in India, the US, Europe, Middle

East, and the Asia Pacific region.

Acquisitions / Strategic Alliances International wholesale telecommunications service provider,

FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance

Infocomm in 2004.

14

Name Tata Teleservices

Year of Establishment 1996

Company Profile Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies,

over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices’ bouquet of

telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and

Wireline services. Other services include value added services like voice portal, roaming, post-paid

Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling

card services and enterprise services.

Global Presence/ Marketing Tata Teleservices has presence in across 19 circles that includes

Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa,

Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala,

Kolkata, Madhya Pradesh and West Bengal.

Acquisitions / Strategic Alliances Tata Teleservices has acquired Hughes Tele.com (India)

Limited [now renamed Tata Teleservices (Maharashtra) Limited] in 2002

Future Prospect The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90

million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime.

Name Idea

Year of Establishment 1995

Company Profile Idea Cellular is part of the Aditya Birla Group, which is India's first truly

multinational corporation. Aditya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd. 44.9

per cent, Grasim 7.5 per cent, and Hindalco 10.1 per cent in Idea.

Global Presence/ Marketing Has a customer base of over 17 million, IDEA Cellular has operations

in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal,

Haryana, UP-West, Himachal Pradesh and Kerala.

15

Acquisitions / Strategic Alliances Merged with Tata Cellular Limited in 2001, thereby acquiring

original license for the Andhra Pradesh Circle Acquired RPG Cellular Limited and consequently the

license for the Madhya Pradesh (including Chattisgarh) Circlein 2001 In 2004 acquired Escotel,

incumbent cellular service provider in Haryana, UP(W) & Kerala and new licensee in HP Acquired

Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) in

2006 Merger of seven subsidiaries with Idea Cellular Limited in 2007.

Future Prospect Idea also plans to enter rural and neglected circles as a strategy to gain subscribers.

Other advancements in the telecom industry will help it cut costs - use of e-mail to send bills to

customers; sharing cell sites; smaller base transmission stations that will mean lesser infrastructure

requirements and expenses and independent tower operators. Along with its plan to go for a national

long distance licence, it will also look at international long distance in the near future.

16

CHAPTER 3

COMPANY PROFILE

17

Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the third largest mobile network

operator in India after Airtel andReliance Communications. It is based in Mumbai, Maharashtra and which

operates nationally.[1] It has approximately 146.84 million customers as of November 2011.

On July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its Indian mobile phone

business. The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the

Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be

owned by Indian investors, in compliance with Indian law.[2] On 11 February, 2007, Vodafone agreed to

acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion,

pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining

33%. The whole company was valued at USD 18.8 billion.[3] The transaction closed on 8 May, 2007. It offers

both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.

Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology.

Vodafone India launched 3G services in the country in the January-March quarter of 2011 and plans to spend

up to $500 million within two years on its 3G networks.

3.1 About the Company

Vodafone Group plc is a British multinational mobile network operator headquartered in ewbury, Berkshire,

United Kingdom. Vodafone is the world's largest mobile telecommunication network company, based on

revenue, and has a market value of about £71.2 billion (November 2009). It currently has operations in 31

countries and partner networks in a further 40 countries. Based on subscribers, it is the world's second largest

mobile phone operator behind China Mobile, with over 427 million subscribers in 31 markets across 5

continents as of 2009. In the UK, its home ground, Vodafone has badly underperformed in the last few years

due to brisk change in administration. It has slipped from first to third largest telecom operator generating

revenue of £4.9 billion from its 18.7 million customers in 2008-09. As of March 31, 2009, the company

employs more than 79,000 people worldwide.

“The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice

and data services over mobile phones.”

18

OUR VISION

To enrich our customers‟ lives through unique power of mobile communication.

OUR PASSION

•1. FOR CUSTOMERS:

In anticipation of their customers‟ trust Vodafone understands their needs & delights themes‟ with its

services.

•2. FOR OUR PEOPLE:

Outstanding people working together make Vodafone exceptionally successful.

•3.FOR RESULTS: Vodafone believes in being action oriented & is driven by a desire to be the BEST.

•4. FOR THE WORLD AROUND US:

Vodafone believes helping people of the world to have fuller lives through their services & its impacts.

History of Vodafone:

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom

Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully

demerged from Racal Electronics Plc and became an independent company in September 1991, at which time

it changed its name to Vodafone Group Plc.

Following its merger with Air Touch Communications, Inc. („Air Touch‟), the company changed its name to

Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting,

reverted to its former name, Vodafone Group Plc, on 28 July 2000.

1982: As Racal Telecomm, awarded the first mobile license in the UK

1985: First mobile analogue call in the UK

1987: Launched Vodapage, a paging network covering 80% of the country

1988: Listed on the stock exchange

1991: Separated from Racal Electronics and since then quoted as Vodafone

19

1993: Introduction of digital mobile services in the UK and first international partnership.

1999: Merged with Air Touch Communications, producing a new company, Vodafone Air touch plc

2000: Began operating as the Vodafone group Plc

2002: Introduced Vodafone Live!

2004: Commercially launched its 3G services in Europe

2005: Launched fixed mobile convergence product in Germany called Zuhause.

2006: Sold its Japanese unit to Softbank and Swedish unit to Telenor.

2007: Acquired controlling interest Hutchison Essar Limited in India; acquired Tele2 fixed line operations in

Italy and Spain.

20

3.2 Key milestones in the development of Vodafone

2005

December Vodafone announces completion of acquisition of 10% economic interest in Bharti Tele-ventures

in India Vodafone will be McLaren Mercedes Title Sponsor Acquisition of the assets of Telsim in Turkey

Vodafone launches global Mobile TV Sir John Bond succeeds Lord MacLaurin as Chairman.

November Vodafone announces new football sponsorship with the UEFA Champions League.

October Sale of Vodafone Sweden Acquisition of a 10% economic interest in Bharti Tele-Ventures in India.

July Vodafone reaches 165 million proportionate customers Vodafone announces new four year sponsorship

of the England Cricket Team

May Vodafone completes acquisition of control of MobiFon in Romania and Oskar in the Czech Republic

Vodafone launches Vodafone Simply

January Vodafone reaches 150 million customers - strongest quarter since December 2000

2006

December Sale of 25% stake in Switzerland's Swisscom.

November Competition of sale of 25% stake in Belgium's Proximus.

September Vodafone launches first Vodafone-only branded 3G consumer handset Vodafone reports 10

million Vodafone Passport customers Vodafone to deliver fixed-line broadband services in the UK.

June Proposed Return of Capital via a B share scheme announced .

May Vodafone announces completion of acquisition of the assets of Telsim in Turkey Vodafone and Softbank

agree to form mobile partnership.

April Completion of sale of Vodafone Japan to Softbank .

March The number of Vodafone live! customers with 3G reached 10 million.

February Impairment review and update to outlook .

January Completion of sale of Vodafone Sweden.

21

2007

December A consortium led by Vodafone Group is awarded the second mobile phone license in Qatar Indus

Towers Limited, an independent tower company in India is formed between Vodafone, Idea and Bharti .

October Vodafone agrees to acquire Tele2 Italia SpA and Tele2 Telecommunication Services SLU from

Tele2 AB Group.

May Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications

International Limited Vodafone launches first ultra-low cost handsets.

February Safaricom, Vodafone's partner in Kenya announces the launch of M-PESA, an innovative new

mobile payment solution that enables customers to complete simple financial transactions by mobile phone

Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast

growing Indian mobile market Vodafone announces agreements with both Microsoft and Yahoo! to bring

seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile

handsets Vodafone signs a series of ground-breaking agreements which will lead to the mobilising of the

internet. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile

phones. With Google, Vodafone announces its intention to develop a location-based version of Google Maps

for. With eBay, Vodafone announces it is to offer the new eBay mobile service to customers, With

MySpace.com Vodafone

2008

December Vodafone completes acquisition of additional 4.8% stake in Polkomtel .

November Vodafone to acquire an additional 15% Stake in Vodacom Group which will increase Vodafone's

shareholding from 50% to 65%. Vodacom Group will be listed on the Johannesburg Stock Exchange and the

remaining 35% of Vodacom Group will be demerged by Telkom to its shareholders.

October Vodafone launches the new exclusive BlackBerry® Storm™ smartphone from Research In Motion.

August Completion of the acquisition of a 70 percent stake in Ghana Telecom.

July Vittorio Colao succeeds Arun Sarin as Group Chief Executive Vodafone acquires a 70% stake in Ghana

Telecom for $900 million.

22

June Vodafone and Apple(R) announce the iPhone 3G will be available in Australia, Italy, New Zealand and

Portugal on July 11, and in the Czech Republic, Egypt, Greece, India, South Africa and Turkey later this year.

Vodafone announces that Verizon Wireless, its affiliate in the US, has agreed to acquire Alltel Corp. for a

total enterprise value of US$28.1 billion in cash and assumed debt.

May Vodafone announces that it has agreed to acquire the 26.4% interest in Arcor that it does not already

own from Deutsche Bahn AG and Deutsche Bank AG for a cash consideration of €474 million.

2009

June Completion of merger between Vodafone Australia Limited and Hutchinson 3G Australia Pty Limited.

March Telefonica and Vodafone announce milestone Pan European collaboration to share network

infrastructure in Germany, Spain, Ireland and the UK.

February Hutchinson and Vodafone agree to merge Australian telecom operations to form a 50:50 joint

venture.

January Vodafone trials HSPA+ mobile broadband at speeds of up to 16 Mbps.

3.3 Marketing Analysis

Product Profile

Company Profile will assists individual investors, managers and companies in evaluating opportunities,

trends, market innovations, and selecting appropriate information solutions in order to make effective

decisions. The report has been made after extensive research using the data available from reliable

publications, trade associations and the companies‟ sources. The report elaborates on the company's business

structure and operations, products and services. The report includes key financial information and strategic

analysis that intends to aid investors to find better prospects with the company and gain an insight into the

corporate policies.

Target Customers

Positioning Vodafone as a younger, more dynamic network, based on brand personality and attitude, would

have greater appeal for Vodafone's core 18 to 39 age target.

23

Positioning Strategies

First brand in the category to develop a personality-based brand positioning.

Positioning Vodafone as a younger, more dynamic network, based on brand personality and attitude,

would have greater appeal for Vodafone's core 18 to 39 age target.

It would also further encourage the perception that Optus was moving in the direction of Telstra's

older, more conservative position.

Market Share of each competitor

MOBILE OPERATORS CUSTOMER BASE MARKET SHARE (%)

AIRTEL 32466 22.8

RELIANCE 29980 21.8

VODAFONE 23306 16.4

IDEA 12442 8.8

TATA 10249 7.2

AIRCEL 4513 3.2

BSNL 25551 18.0

Subscriber Base Statistics as on January, 2011

Telecom Cicle No. of Subscribers

Gujarat 14,910,573

Uttar Pradesh(East) 14,237,217

Maharashtra 11,962,824

West Bengal 11,040,815

24

Subscriber Base Statistics as on January, 2011

Telecom Cicle No. of Subscribers

Tamil Nadu 9,330,557

Rajasthan 8,711,277

Uttar Pradesh(West) 9,234,369

Andhra Pradesh 7,347,024

Delhi 7,788,376

Goa 7,134,576

Karnataka 6,591,039

Kerala 5,535,177

Bihar 5,244,148

Kolkata 4,373,647

Punjab 4,132,392

Haryana 4,170,943

Madhya Pradesh 3,135,580

25

Subscriber Base Statistics as on January, 2011

Telecom Cicle No. of Subscribers

Chennai 2,113,992

Odisha 2,338,159

Assam 1,650,109

North East 861,826

Jammu & Kashmir 565,253

Himachal Pradesh 357,430

Mumbai 5,887,113

26

3.4 VISIBILITY ELEMENTS PROVIDED BY VODAFONE

MBO SHOP SIGNAGE:

27

FLANGE

> To be fixed perpendicular to the shop

28

29

INFLATED BALLOON/3D CUDE DANGLER

> Minimum 2 numbers

> To be hung outside the MBO

30

POSTER 1

POSTER 2

31

POSTER 3 – LOCAL

BANNER – LOCAL

32

PREPAID RECKONER

Welcome Kit-Bonus Card Hanger

33

3.5VISIBILITY SCORE FOR DIFFERENT ELEMENTS ACROSS REGIONS

KARNATAKA – In visibility 12th rank, in Availability 15th rank.

34

SIGNAGE AND FLANGES IMPLEMENTATION

ZONE TOWN SIGNAGE TOTAL

APRIL MAY JUN

E

JULY AUGUST SEPT. OCT

.

NOV. DEC. JAN. FEB.

BANGALORE

EAST

184 9 722 321 25 240 200 75 1776

BANGALORE

WEST

149 0 500 276 150 165 250 300 1790

DAVANGERE 38 184 175 160 200 757

MANGLORE 184 600 250 400 191 240 198 50 2113

HUBLI 0 0 372 162 281 0 400 216 153 150 1734

GULBARGA 0 0 0 0 312 215 200 50 450 100 50 1377

MYSORE 42 30 61 0 0 360 410 386 170 93 1552

TUMKUR 0 39 0 98 0 276 259 260 284 1216

TOTAL 12315

ZONE TOWN SIGNAGE TOTAL

APRIL MAY JUNE JULY AUGUST SEPT. OCT

.

NOV. DEC. JAN. FEB.

BANGALORE

EAST

440 250 250 940

BANGALORE

WEST

250 1000 300 1550

DAVANGERE 60 120 90 60

300

200 30 860

MANGLORE 15 150 250 900 250 405 1970

HUBLI 225 150 200 258 100 20 953

GULBARGA 60 220 900 350 150 1680

MYSORE 150 560 385 235 47 300 30 1707

TUMKUR 500 93 362 500 500 1955

35

TOTAL 1161

5

POSM TRACKER

POSM ELEMENTS FOR THE MONTH OF FEB FOR BANGALORE

ELEMENT

S

BLORE.

EAST

BLORE.

WEST

DAVANGER

E

GULBARG

A

HUB

LI

MANGALOR

E

MYSOR

E

TUMKUR

Tariff

reckoner

9531 11044 5549 4650 5934 3600 5273 5084

Double

poster 121

& night

14297 16566 5549 4650 5934 3600 5273 5405

121

bunting

14297 16566 5549 4650 5934 3600 5273 5405

Cube

dangler

14297 16566 5549 4650 5934 3600 5273 5405

Shelf strip

2`` rolls

238 276 92 76 99 60 88 90

Shelf strip

1.5`` rolls

143 166 55 46 59 36 53 54

Welcome

hanger

7148 8283 2774 2280 2967 1800 2636 2702

121 poster

English

9531 11044 3699 3040 3956 2400 3515 3603

36

OVERALL SCORE - FEBRUARY

National average –

Availability – 62%

Visibility – 32%

OVERALL SCORE- FEBRUARY

KARNATAKA:

37

Availability - 47%

Visibility – 26%

Signage/flange – 30%

38

VODAFONE – VISIBILITY INDEX ZONE WISE

VODAFONE – VISIBILITY INDEX ELEMENT WISE

FEBRUARY-2012

39

VISIBILITY SCORE – BANGALORE EAST FEBRUARY 2012

FLANGE IS A CONCERN.

40

VISIBILITY SCORE BANGALORE WEST FEBRUARY 2012

FLANGE IS A CONCERN

41

SUMMARY

Visibilit

y

Signage Flange Banner Bonus

card

Poster

1

Poster

2

Prepaid Shelf

strip

Dangler

Index Bunting Hange

r

Reckoner

Karnataka 26 30 21 20 24 21 23 27 29 33

Bangalore

East

26 9 9 23 27 29 29 39 19 24

Bangalore

West

27 14 14 25 24 22 22 31 33 34

Davengere 17 28 28 8 14 9 13 8 21 21

Gulbarga 24 42 18 33 20 6 10 12 28 35

Hubli 18 25 33 0 21 9 12 14 25 20

Mangalore 25 20 32 14 18 22 28 21 45 34

Mysore 36 56 37 35 35 26 33 21 28 41

Tumkur 39 30 27 21 33 43 43 59 61 43

SHARE OF SIGNAGE

42

Brand July-11 Aug-11 Sept-11 Oct-11 Nov-11 Dec-11 Jan-11 Feb-11

Vodafone 45 45 24 25 26 30 30 30

Airtel 27 26 20 21 19 18 16 15

Idea 9 12 14 13 12 11 11 15

Uninor 6 4 12 10 10 9 12 13

Aircel 3 2 4 4 3 5 7 6

Reliance 6 8 11 9 9 9 8 6

Vodafone still the leader in signage presence despite huge competition.

SIM-STOCKING

E- TOPUP AVAILABILITY

43

PRODUCT AVAILABILITY INDEX ZONE WISE

44

CHAPTER 4

OBJECTIVES

AND

RESEARCH METHODOLOGY

45

4.1 Objectives of the study are:

To create a new visibility element of Vodafone for Multi-Brand Outlets.

To find out what business are the retailers into.

To find out what services do the retailers offer.

To categorize the retailers based on their average monthly sale of SIMs.

To know the frequency of distribution of visibility elements.

To find out what visibility elements are provided by different operators.

To find out which visibility element is most important to retailers.

To find out the shelf life of different visibility elements provided by Vodafone.

To know whether visibility elements have a role to play in Brand recommendation.

To know whether customers see/notice visibility elements provided by Vodafone.

The sample unit of the study included all existing Multi-brand retailers in specific areas of Bangalore. Sample

size is 70 retailers/respondents.

In the survey the main objective was to know the retail visibility in multi-brand outlets with respect to

competitors. The survey also helped in understanding the role and importance if brand visibility in retail

outlets. It also helped in knowing which visibility elements are mostly used or favored by the retailers because

of its usefulness.

Since the primary objective of the internship was to create a new visibility element, therefore the survey

served as great help in understanding the effectiveness of current visibility elements in multi-brand retail

outlets. It also helped in narrowing the area of focus while brainstorming to come up with a new visibility

element.

46

4.2 Research Methodology

Definition of Research

When you say that you are undertaking a research study to find answers to a question, you are implying that

the process;

1. is being undertaken within a framework of a set of philosophies ( approaches);

2. uses procedures, methods and techniques that have been tested for their validity and reliability;

3. is designed to be unbiased and objective .

Philosophies means approaches e.g. qualitative, quantitative and the academic discipline in which you have

been trained.

Validity means that correct procedures have been applied to find answers to a question. Reliability refers to the

quality of a measurement procedure that provides repeatability and accuracy.

Unbiased and objective means that you have taken each step in an unbiased manner and drawn each

conclusion to the best of your ability and without introducing your own vested interest.

(Bias is a deliberate attempt to either conceal or highlight something).

Adherence to the three criteria mentioned above enables the process to be called ‘research’.

The word research is composed of two syllables, re and search. re is a prefix meaning again, anew or over

again search is a verb meaning to examine closely and carefully, to test and try, or to probe. Research is a

structured enquiry that utilizes acceptable scientific methodology to solve problems and create new

knowledge that is generally applicable. Scientific methods consist of systematic observation, classification

and interpretation of data.

The research process methodology consists of six steps and these steps are as follows:

1. Problem definition.

2. Development of an approach to the problem.

3. Research design formulation.

4. Field work or data collection.

5. Data preparation and analysis.

6. Report preparation and presentation.

47

4.3 Title of the study and statement of the Problem

Subject:

“Importance of Brand visibility in Vodafone and ways to increase its effectiveness in Multi-brand outlets.”

Scope:

Increasing effectiveness of visibility elements in Multi-Brand outlets (MBOs)

Process:

Need for brand visibility in telecom industry.

Different visibility elements provided by Vodafone to its retailers.

Measuring the effectiveness of current visibility elements in MBOs through questionnaire.

Ways/methods to increase effectiveness of visibility elements in MBOs by creating new visibility

element.

Definition:

The display of products which makes them appealing, attractive, accessible, engaging, and enticing to

shoppers in a retail store. Visual merchandising utilizes displays- Posters, Banners, Leaflet, Dangler, lighting,

digital technology and interactive elements to catch customers' attention and persuade them to make

purchases. Visual merchandising helps convey the image of the brand and reflects the personality of the target

markets that the retail store wants to attract.

Problem Definition:

The first step in any marketing research is to define the problem. In defining the problem, the researcher

should take into account the purpose of study, the relevant background information and the information

needed.

Statement of problem:

Visibility elements in telecom industry are provided by all retailers. Moreover, visibility elements also have an

influence in sales of the product. The problem identified here is how to increase store effectiveness through

visibility elements. Creating a new visibility element that could increase store effectiveness as well as be able

to attract customers.

48

Research Design:

A research design is a framework for conducting the marketing research project. It details the procedure

necessary for obtaining the required information, and its purpose is to design a study that will test the

hypothesis of interest, determine possible answers to research questions and provide the information needed

for decision making. Formulating the research design involves the following steps:-

Research Design: Descriptive Research

We are using the descriptive research as we know the problem and by using this type of research we are able

to get information regarding the attitude of Vodafone retailer towards retail visibility. A research design is the

arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance

to the research purpose with economy in procedure. Research design can be classified into three broad classes,

exploratory, descriptive and casual. In this study descriptive research was used. This is because descriptive

research is essentially a fact and finding approach related largely to the present and abstracting generalizations

by cross sectional study of current situation.

4.4 Data collection method:

For collecting data a questionnaire was developed keeping in mind the objective of the study. Since the

objective of the study is to create a new visibility element, the questionnaire was designed with the aim of

understanding the effectiveness of current visibility elements in multi-brand outlets. Also the questionnaire

was developed in such a way that it could narrow down the area to focus on when creating a new visibility

element. A survey was conducted in which the questionnaire was filled up by retailers of multi-brand outlets.

The questionnaire contained questions that were mostly comparison between different mobile operators in

terms of visibility provided visibility.

Sample element: sample elements were the retailers of multi-brand outlets.

Extent: the survey was conducted in following areas within Bangalore

Kormangala J.P nagar Banshankri Neelasandra S.R nagar

Jayanagar Majestic Indiranagar L.R nagar S.G palya

Sampling Technique: The sampling elements were selected using convenience sampling.

Sample Size: The number of sampling elements selected for target areas were 70 for all.

49

CHAPTER - 5

REVIEW OF LITERATURE

&

CONCEPTUAL FRAMEWORK

50

[Abstract] Companies are always looking for tools and ways to increase the brand visibility and

communication. Brand communication to the consumers is always an important marketing goal of marketers.

In doing so, they spend a lot through their marketing services firm, which provides the advertising and

communication services to the client firms. Companies can use point of purchases (POP), like retail outlets

and surroundings, for brand communication. The author personally visited some rural and semi-urban areas as

part of the distributors’ sales representative team and pointed out some simple, cost-effective ways to

effectively reach the customers, such as brand communication.

In service industry customers tend to forget about the service they purchased due to the intangible feature of

the service itself. It becomes a task of the marketer to re-enforce the brand in the mind of the customer

through continuous marketing activities. The most effective marketing activity to re-enforce a brand name

among the customer is through brand visibility or bran communication.

Brand communication is necessary not only for companies producing good but it is all he more necessary for

the service industry. Considering the telecom industry, a customer who purchases a mobile connection (Sim

card) tend to forget about or does not give much thought to the brand that he owns. He simply uses it to

communicate and comes in contact with the brand only when he goes for a recharge. In such a situation, the

marketer needs to continuously remind the customer about the brand he`s using. Either by coming up with

new service or through brand Communication. The customer must be able to relate to the brand and feel pride

in being connected to it.

Visibility elements are specific promotional elements that help remind the people of the presence of the bran

in the market. It also helps remind its customers about its presence and through it it also creates awareness of

it new plans and schemes. Visibility elements are seen as anything that helps a customer in identifying a

brand, relating to it and refreshing the sense of being connected to it.

Constant innovation is required in brand communication in order to attract customers. Visibility elements are

designed in such ways that it can easily attract customer`s attention. Titles and slogans are brainstormed so

that customers would want to read it. These are placed in areas where it can get maximum views by the

people. Strategic alliances are formed with others to keep the name up in the market and build a healthy brand

image.

51

CHAPTER - 6

DATA ANALYSIS

&

INTERPRETATION

52

13%

40%

14%3%

3%

27%

Types of business outletsStationery Handset KiranaCyber Café Ticket Booking Others

The handset outlet holds a major share of the market with 40%, it was followed by “others” which consisted

of 27% and included medical shops, grocery stores, electronic repair shops. It mostly included those shops

who were not directly related to the business of Vodafone.

Recharge19%

Both81%

Services offered by the retailers

81% of the retailers were into both sim selling and recharging and 19% of the retailers were only occupied in

recharging cell phones.

53

13%

72%

15%

Categories according to sim salesCategory A (100+) Category B (10-99) Category C (>10)

Category B holds a major share of 72% which indicates that more than half of the retailers fall into medium

sales generating category.

100%

Do you get visibility elements from other operators?

All the retailers agreed to receiving visibility elements fron mobile operators.

54

Airtel

Vodafone

Idea

Tata Docomo

Aircel

Reliance

MTS

Uninor

0 10 20 30 40 50 60 70 80

Companies that provide visibility elements

Series1

Airtel, Vodafone and Tata Docomo were among the ranking mobile operators who provided visibility

elements to retail outlets. These were followed by Idea, Aircel, Reliance and others.

Airtel

Vodafone

Idea

Tata

Docomo

Aircel

Relian

ceMTS

Uninor0

10203040506070

Which company is regular at provid-ing visibility elements

Series1

Airtel and Vodafone share the same place when it came to regularity in distribution of visibility elements.

Both the companies were equally competitive in this section. It was followed by Tata Docomo, Idea and

others.

55

Daily

Altern

ate day

s

Wee

kly

Fortn

ightly

Monthly0

5

10

15

20

25

Frequency of distribution of visibility elements

Series1

Axis Title

The frequency of distribution of visibility elements was highest in alternate days. The merchandisers of

respective mobile operators visited retail outlets on alternate days to distribute visibility elements. However,

there were some merchandisers who were not working hard enough in providing elements to retail outets.

Post

ers

Dang

lers

Bunti

ng

Bann

ers

Shel

f str

ips

Rech

arge

grid

s

Flie

rs

Sign

age

What visibility elements do they provide?

0

10

20

30

40

50

60

70

80

AirtelVodafoneTata DocomoIdea

The above bar chart is a comparison between 4 major mobile operators in terms of visibility elements

provided by to the retailers. In the poster section all the 4 competitors are almost at the same spot indication

high importance of posters. In the dangler section Vodafone is the leading brand. Similarly in signages

Vodafone has more than any other brand.

56

Yes93%

No7%

Whether visibility elements are important

93% of the retailers said that visibility elements are important and &% denied its importance. Retailers saw

importance of visibility elements in two ways. Firstly how useful it is in terms of providing the required

information and secondly, how can it increase the shops attractiveness.

Yes94%

No6%

Do retailers refer to visibility el-ements

94% of the retailers refer to visibility elements specially the Tariff Plans for information regarding new pans

and schemes. However, 6% of the retailers denied referring to it.

57

Danglers

Banners

Recharge grids

Signage

wh

ich

vo

daf

on

e vi

sib

iltiy

elem

ent

has

a lo

nge

r lif

e sp

an in

yo

ur

sto

re?

0 10 20 30 40 50 60 70

<1 month2-3weeks1-2 weeks>1 week

The above chart shows life span for both hard and soft visibility elements provided by Vodafone. Signages

have the longest life span followed by shelf-strips and banners. Lowest life span was found in posters and

fliers. Knowing the life span of current visibility elements was important as the new visibility element that has

to be created should have a considerably good life span.

Yes84%

No16%

Do visibility elements have a role in Brand Recommendation

Retailers were of the view that if the company provides new and innovative/attractive visibility elements

which could also increase the attractiveness of the retail outlet, they would definitely recommend Vodafone to

future customers.

58

Yes No0

10203040506070

Do customers see these visibility elements

Series1

80% of the retailers believe that customers see/notice the visibility elements. This is important because it helps

the customer to identify the brand. An attractive visibility element might also influence the buying decision.

Yes No0

10

20

30

40

50

60

70

Do other mobile operators ask for suggestions regarding visibiltiy ele-

ments

Series1

Almost all of the retailers said that no one from any mobile operator company has ever come up to ask

suggestions for visibility elements.

59

CHAPTER - 7

PILOT PROJECT

60

A pilot project is generally a project which is designed as a test or trial to demonstrate the effectiveness of a

full program.

I undertook a pilot project after creating a new visibility element. The elements was a dedicated board where

posters of only Vodafone were allowed.

The reason for creating an element is that, in all retail outlets in India, merchandisers of different mobile

operators come on a routine date and time to place their respective posters. Since none of the retail outlet has a

specific place for putting up posters, merchandisers place/paste their posters on top of the competing brand`s

posters. This is mostly done intentionally to block/hide visibility of competing brand and also to give the

retailer a good viewpoint to see the poster as there are very few points in a retail store where the retailers can

see the posters from without having to move around much.

The visibility element was designed keeping this act of competitor`s merchandisers in mind. The element

provided a distinct and a dedicated slot to Vodafone for placing its posters. It was deliberately made in bright

red (Vodafone red) so as to attract customers. The element had two slots so that 2 posters can be placed at

once. On arrival of new posters, the old posters can be removed and the new ones can be placed in. it was

kept/hanged at the same spot where every other merchandiser would place its poster to get viewpoint. But

because the visibility element was a new one, most of the competitor merchandiser refrained from pasting

posters on top of it and had to paste it somewhere else. The element was made in such a way so as to give

good visibility of poster and information contained in it to the retailer.

61

CHAPTER - 8

FINDINGS & SUGGESTIONS

62

8.1 Findings

The handset outlet holds a major share of the market with 40%, it was followed by “others” which

consisted of 27% and included medical shops, grocery stores, electronic repair shops. It mostly

included those shops that were not directly related to the business of Vodafone.

81% of the retailers were into both sim selling and recharging and 19% of the retailers were only

occupied in recharging cell phones.

Category B holds a major share of 72% which indicates that more than half of the retailers fall into

medium sales generating category.

All the retailers agreed to receiving visibility elements from mobile operators.

Airtel, Vodafone and Tata Docomo were among the ranking mobile operators who provided visibility

elements to retail outlets. These were followed by Idea, Aircel, Reliance and others.

Airtel and Vodafone share the same place when it came to regularity in distribution of visibility

elements. Both the companies were equally competitive in this section. It was followed by Tata

Docomo, Idea and others.

The frequency of distribution of visibility elements was highest in alternate days. The merchandisers

of respective mobile operators visited retail outlets on alternate days to distribute visibility elements.

However, there were some merchandisers who were not working hard enough in providing elements to

retail outlets.

In the poster section all the 4 competitors are almost at the same spot indication high importance of

posters. In the dangler section Vodafone is the leading brand. Similarly in signages Vodafone has more

than any other brand.

93% of the retailers said that visibility elements are important and &% denied its importance. Retailers

saw importance of visibility elements in two ways. Firstly how useful it is in terms of providing the

required information and secondly, how can it increase the shops attractiveness.

63

94% of the retailers refer to visibility elements specially the Tariff Plans for information regarding new

pans and schemes. However, 6% of the retailers denied referring to it.

Signages have the longest life span followed by shelf-strips and banners. Lowest life span was found

in posters and fliers. Knowing the life span of current visibility elements was important as the new

visibility element that has to be created should have a considerably good life span.

Retailers were of the view that if the company provides new and innovative/attractive visibility

elements which could also increase the attractiveness of the retail outlet, they would definitely

recommend Vodafone to future customers.

80% of the retailers believe that customers see/notice the visibility elements. This is important because

it helps the customer to identify the brand. An attractive visibility element might also influence the

buying decision.

Retailers know the importance of Point of sales (POS) materials. However, very few retailers consider

it important. They focus more on recommending that connection which offer more incentives.

It is actually the retailers who create a perception of the brand among the customers, hence it is

important to know what effect does visibility elements have on retailers as well as the customers.

Visibility elements placed at retail outlets are effective if they can attract customers and at the same

time help the retailers in providing the service.

In a multi brand retail store, different mobile operators provide the retailer with visibility elements of

their own. So, among this clutter the effectiveness is known when a customer recognizes a brand from

among various elements placed in the store.

For a customer to recognize a brand the visibility element has to be unique and attractive so as to get

the customers sight on to it. It is the power of the visibility element to attract the customer and help

64

him recognize a brand and might also help in buying decision which is known as the effectiveness of a

visibility element.

Currently Vodafone offers a large variety of visibility elements which includes:

Posters

Danglers

Fliers

Recharge grids

Flex banners

Shelf strips

Bunting

Signage

All or most of these are also provided by competing mobile operators. The edge over here is how

innovative one`s visibility element can be to appeal out to a customer from among the clutter of

visibility elements.

It was also known that most of the retailers give importance to Signage and Tariff Plans in terms of

functionality. Apart from these, the other visibility elements were seen as “waste” as they had very

little usefulness from the retailer`s point of view.

On a sample size of 100 respondents from 11 areas it was found that distribution of visibility element

was up to mark.

The merchandisers delivered visibility elements mostly updated recharge plans(posters) and danglers

on time with a maximum delay of 1 day.

It was also known from the survey that airtel was better when it came to incentives provided to

retailers. This might be a reason for retailers recommending airtel to customers.

However, most of the retailers were of the view that in term of connectivity or network Vodafone is

better than Airtel.

65

Most of the retailers requested new visibility elements and promised brand recommendation. Such

deals mainly came from lower end retail outlet retailers who wanted visibility elements to increase the

attractiveness of their shop.

Airtel was able to gain the loyalty of retailers by providing better incentives. Even for visibility

elements, Airtel provided incentives to retailers which Vodafone doesn’t. Incentive is decided on the

amount of shop space the visibility element will require.

Most of the retailers fall into Category B whose main business is something other the sale of mobile

connection. The retailers took sim selling as a side business to earn extra income and so they were not

fully devoted towards brand building or promotion.

It was also known that Vodafone provided electric signages to selective retail outlets. This was

decided by Vodafone itself as they somehow believed that the some retailers will not use it/light it and

only use it as a board. However, the retailers complained that they have ordered for signages and

haven`t received till date. The requests go as back as 3-4 months.

66

Findings from the new visibility element

The new visibility element was distributed among five retail outlets.

Kormangala, S.G palya, Bellandur, Jayanagar, J.P nagar and Majestic.

Four out of five retailers were of the view that the new visibility element is better than the old method

of pasting posters on wall.

It also gave a separate dedicated slot to put posters for vodafone.

Competing mobile operators automatically understood that the slot was for vodafone only and they

had no choice but to put their posters somewhere else.

Also helped in attracting customers as it was easily visible from distant. They also referred to it for

plans and others features.

Retailers were happy as posters inside were easily replaceable.

Retailers found it to be more appealing than the older method and also increased attractiveness of the

store.

67

8.2 Recommendation & Suggestions

Radium signage or atleast vodafone and symbol printed in radium for those who were not offered

electric signages.

Office furniture, zoo zoo shaped for select retail outlets.

A multiple poster holder that can be placed outside the shop with adequate and attractive lighting. (self

rotating like those found in watch stores)

Virtual fire place outside the shop/outlet with a blow fan beneath. Cloth printed in vodafone red with

imprints of vodafone.

Oval shaped lighting boards (signage) with vodafone and symbol. ( earlier used by hutch)

Vodafone flooring, check board style for select retail outlets with vodafone prints on it.

A water container for use by both customers and retailers. Zoo Zoo shaped.

Mega posters for walls behind the retailer`s desk.

Shutter painted in vodafone red.

Small desk shelf for keeping recharge phone. For easy identification.

Air inflated or plastic made zoo zoo, big enough for customers to spot

For engaging customers others than recharging, small games including vodafone mascots could be

setup in retail outlets

Sim card holders are also used as key chains. Cresting a stylish new sim card holder to bring about a

change in the way the product/service is offered.

A poster holder, completely dedicated to vodafone preventing competitors from overlapping

with their posters.

A uniform (vodafone t-shirt) for all retailers.

Changes in incentive plans.

68

CHAPTER - 9

CONCLUSION

69

9.1 Conclusion

In my survey it was found that most of the visibility elements were absent from retail stores. Only

danglers, posters and signages were evenly distributed.

It was also found that distribution of signage were dependent on the company and not on the need of

the retailers.

There should be better/innovative visibility elements for tariff plans and new schemes of the company.

Certain merchandisers were not working hard enough in distributing the visibility elements.

Small retails outlets and less information on products and services of the company.

Merchandisers have built good relations with the retailers. It was time the company also did something

different to gain their loyalty.

There is more advertisement of products of Vodafone than found in retail outlets.

A huge lot of retailers wanted their shop/outlet to look more attractive and also requested for new

visibility elements.

70

CHAPTER - 10

LIMITATIONS

71

10.1 Limitations

No study is free from limitations, so does ours. There were several limitations that were encountered during

the course of my study and research process.

The study was limited or restricted only to Bangalore.

Retailer`s opinion in relation to customer preference and margins may not be true.

Method of data collection was through person interview and therefore it becomes a major limitation.

Due to time constraints all the retailers were not covered.

Travelling expense was also a major constraint.

Owing to pre-occupation, some retailers were not able to answer the complete questionnaire.

The survey was limited only to retailers; if customers were included a wider analysis could have been

done.

The sampling method used was convenience sampling so there may be a possibility that some

important retailers might have been left out.

Responses were dependent on the mood of the retailers.

Language difference was also a great barrier.

Retailers were contacted in two ways: a) as a Vodafone representative b) as a representative of a

private survey firm. Those retailers whom contact was made as Vodafone representative, their

responses might be biased and those retailers whom contact was made a representative of a private

survey firm their response may not be vey true.

72

CHAPTER - 11

BIBLIOGRAPHY

73

BOOKS:

Vodafone visibility elements and specifications for manufacturing and placing in retail outlets.

Retrieved on April 2, 2012. Brand Guidelines by Vodafone

Kotler, Philip (2009), Marketing Management, New Delhi, Pearson Education Inc.

Dawson, Catherine, 2002, Practical Research Methods, New Delhi, UBS Publishers’ Distributors

Kothari, C.R., 1985, Research Methodology- Methods and Techniques, New Delhi, Wiley Eastern

Limited.

Kumar, Ranjit, 2005, Research Methodology-A Step-by-Step Guide for Beginners,

(2nd.ed.),Singapore, Pearson Education.

WEBSITES:

Company profile, products and services Retrieved on April 12, 2012

www.vodafone.com

History of Telecom Regulatory Authority of India Retrieved on May 29, 2012

http://trai.gov.in/Content/History.aspx

Regulatory enforcement by Telecom regulatory Authority of India Retrieved on June 3, 2012

http://trai.gov.in/Content/RegulationUser.aspx?id=0&qid=8

Telecom reforms, policies and regulations Retrieved on June 12, 2012

www.telecomtalk.info

Images for visibility elements and statistical data were provided by the company itself as secondary

data.

74

CHAPTER - 12

APPENDIX/ANNEXURE

75

QUESTIONNAIRE FOR RETAILERS

UNDERSTANDING EFFECTIVENESS OF VISIBILITY ELEMENTS

RETAILER PROFILING

Name of the shop: Name of the Proprietor: No. of years in

business:

Contact No.

Location:

SHOP AREA ______________ (sq. feet)

WHAT KIND OF SHOP IS IT?

STATIONERY HANDSET

KIRANA CYBER CAFÉ

TICKET BOOKING OTHERS

SERVICES OFFERED?

SIM SELLING RECHARGE BOTH

AVERAGE MONTHLY SALE OF SIMS AT CATEGORY LEVEL

CATEGORY A 100+

CATEGORY B 10-99

CATEGORY C < 10

76

Do you get visibility elements from mobile operators?

Yes

No

Which company/companies provide you with visibility elements?

Airtel Aircel

Vodafone Reliance

Idea MTS

Tata Docomo Uninor

Which company is regular at providing visibility elements?

Airtel Aircel

Vodafone Reliance

Idea MTS

Tata Docomo Uninor

What is the frequency at which they provide visibility elements?

Weekly

Fortnightly

Monthly

What elements do they provide?77

Airtel Vodafone Tata Docomo Idea

Posters

Danglers

Bunting

Banners

Shelf Strips

Recharge Grids

Fliers

Signage

Do you think these visibility elements are important? Why?

Yes

No

Do you refer to the visibility elements provided to you? Are they helpful to you?

Yes

No

How are these visibility elements helpful to you?

Which visibility element is the most useful/helpful to you and how? (In terms of information)

Which elements do you like from the functionality point of view? How is it useful?

78

Which Vodafone visibility element currently provided has a longer life span in your store?

Less than one

week

1-2 week 2-3 week One month or

more

Posters

Danglers

Bunting

Banners

Shelf Strips

Recharge Grids

Fliers

Signage

Does visibility elements have a role to play in Brand recommendation?

Yes

No

Do customers see/notice these visibility elements?

Yes

No

What kind of visibility elements would you like to get besides the current ones?

______________________________________________________________________________

Why and how will it be useful?

79

Do other mobile operators ask for suggestions regarding new visibility elements?

Yes

No

Signature

80

QUESTIONNAIRE FOR COLLECTING RESPONSE FROM THE NEW VISIBILITY

ELEMENT:

1. How was the new visibility element useful to you?

2. How is it different from the earlier/previous method?

3. How would you rate the visibility of posters inside it?

1 2 3 4 5 6 7

1 – Lowest point 7- highest point

4. Do customers view it as a source of information?

Yes

No

5. Rate its effectiveness on a scale of 1-5?

1 2 3 4 5

1- Ineffective 5- Highly effective

6. Given a choice which method would you choose?

Old method

New method

81

7. Did the new visibility element helped you in solving problem of overlapping of posters by competing

operators

Yes

No

8. Would you like to get such visibility elements form Vodafone?

Yes

No

9. How can this be improved?

82