Grop 4 final maret research

WHY? Vodafone (Telecom Industry) ,[object Object]

Offers both postpaid and prepaid GSM cellular mobile coverage all across India and its hold is especially strong in the metropolitan cities.

Services like 2G, which are based on 1800Mhz and 900Mhz GSM digital technology, also offers voice and data services.STILL……. Vodafone is at NO 3.. This was the main reason as to why we chose Vodafone as our research product to analyze as in what is it that which could take our product to the no 1 position. Aim for Our Research:- Identifying the target audience (location wise) and implementing the existing key strategies specifically (sufficing the particular target) with the help of a survey (sample size 154) and also suggesting future plans on the basis of the survey conducted. Introduction to Objectives of Market Research and the KNOWN Facts and Figures:- Market Attractiveness Evaluation: ,[object Object],Over 130 million customers, with subscriber bases in the major cities as: ,[object Object]

Competitive presence (Bharti Airtel no.1 and BSNL no.2) and customer preference.

Customer spending patterns(Prepaid / Postpaid), Customer Insight: ,[object Object]

Buying behaviors, usage patterns etc.Competitive Forces: ,[object Object],Communications Planning: ,[object Object]

How to reach them (Customer touch points). List Building: ,[object Object],Introduction Vodafone is the world’s largest mobile telecommunication community with over 130 million customers has fully arrived in India. The Vodafone brand was launched in India on 21st September, 2007. It is the best known brand and aims its growth through high volume of sales and through means of meeting the customer needs by providing value addition to its products. Vodafone's logo is a true representation of that belief - The start of a new conversation, a trigger, a catalyst, a mark of true pioneering. Today’s world is a global market with few barriers, so Vodafone has to be highly visible as 'the brand to buy'. Effective marketing is the key to this high visibility. Marketing involves anticipating customers' needs and finding the right product or service to meet those needs, thereby encouraging high sales levels. Vodafone goes further by looking to impress on its customers not merely what its products are i.e. features, but also what they can increasingly do i.e, benefits. This involves effective communication. There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are becoming aware of different brands and their varied handsets through different sources one of which includes the messages sent by mobile phone companies and thus the competition is getting tougher. Thus Vodafone started appealing new customers and aiming to keep the existing ones by emphasizing the uniqueness of the brand. Thus Vodafone's aim is to grow its revenue and improve its profit margin by adding value to its products and services i.e. earning more from each product sold. The 'Vodafone live!' service enables customers to use picture messaging and to download polyphonic ring tones, colour games, images and information, through an icon-driven menu. This service will soon be further enhanced by picture messaging libraries, video clips and video telephony (seeing the person you're calling) and improving download speeds. Another service is the Vodafone Mobile Connect Card, which enables customers to access their normal business applications on a laptop when out of the office. Such services add value to the product, and high profile effective promotion will help sell these services to existing and new customers. WHY DO I EXIST India is the world's second largest mobile operator in terms of subscribers and largest in terms of revenue. Indian telephone subscriber bases crosses 700 million India is having high customer base with low penetration level. Hence VODAFONE has tapped this opportunity to gain revenue. There exist Scope for expansion and thus Vodafone had a deal to acquire controlling stake in Hutch-Essar, which it renamed as Vodafone-Essar for about 11.1 billion dollar in cash. Fast, secure and undisturbed network coverage is a must for a telecom and Vodafone provides them all. WHERE AM I TODAY Vodafone’s Q2 revenue of 954£ million for year 2010 has grown 13.7% over last year. Market share of Vodafone-Essar GSM is ranked 3rd, 1st is Airtel GSM and 2nd is reliance CDMA/GSM. Existence:- Has a presence in all 23 Indian telecom circles, over 78,000 base stations across India and around 2,600 new base stations deployed each month. CRM: Network deployment and maintenance of 56,933 base stations in 16 circles covering 86% of India’s mobile customer base, with over 34.1 million customers outsourced to Indus Towers, of which Vodafone-Essar has a 42% shareholding. It has the operator market share of 18%. As per COAI’s (Cellular Operators Association of India) March 2010 data, Vodafone added 36 lakh users and emerged as the number 1 player in mobile subscriber additions. WHERE I HAVE TO REACH To become the market leader with gaining the maximum market capitalization in India. To capture both the urban and the rural segment and maximize the network in India. POTENTIAL MARKET: THE RURAL YOUTH ,[object Object]

Rural youth has already been targeted by mobile companies where mobile has ben penetrated so service Vodafone has a big opportunity there.

Even if services where consumers spend < Rs. 50 a month make money, there is a potential market condsidering 600 million people living in rural India makes vodafone‐margins potentially profitable.CHALLENGES: ,[object Object]

Moving segmention :Already Vodafone has captured its previous segmented market ie. 16-40 but to shift its its positioning of target group is a major challenge for Vodafone. ,[object Object],To exist and grow in the cluttered market with competitors like: ,[object Object]

BplWHAT I HAVE TO DO TO REACH THERE Cost reduction: Vodafone, which recently tied up Chinese handset maker ZTE, may also bring low cost mobile phones to India starting at retail price of Rs 850. Pursue growth opportunities in total communications Mobile data Vodafone have made significant progress on mobile data, with huge annualized revenue. This is still a large opportunity, with the penetration of data devices is almost nil in emerging markets. Broadband There will be 275 Million High speed Broadband Users in India by 2015. Vodafone has a good opportunity to generate revenue by providing this service to the end users. ,[object Object]

Can create a Vodafone service portal for customers through messages similar to the portal on the websites.

Through more advanced customer care service it can emphasize more on customer relationship management which will help it to tout their tagline “happy to help” which is currently not practiced.WITH RESPECT TO OUR QUESTIONNAIRE Value grid is the one where attributes vs brands is taken into consideration. When customers are taken into consideration, while choosing a mobile service provider they will look for all the possible brands and all the attributes available with those brands. For example, when a customer wants to buy Vodafone, attributes which interest him/her in buying this would include Network, Call rates, New schemes and offers, SMS rates, value added services, recharge outlets, customer care and internet services. Market was analyzed by a survey answered by 152 respondents, who were asked for their preferences over 8 attributes in 8 different brands. Thus it serves as a starting point for the development of the positioning study, which was in fact the original purpose behind the survey. Perceptions vary in consumer’s mind according to different offers found in the market, generally basing their buying decisions in those products which are better classified in their own scale. Thus a product which has many positive attributes for a particular customer will be much more likely chosen than other which only satisfies him/her. This is because all the customers want high quality products at best prices. None of the customers want to overpay. Regardless of the product category, it is the customer’s perception of value which will determine which company gets their business. For this reason it is important for Vodafone to understand how much their products are worth. A product’s worth depends upon where is its position with respect to competing products. If it is better-than the average product, then it’s worth more than average. Such products could be sold for a premium price. Value grid is a structured approach for comparing a product against the competition to understand its competitive strengths and weaknesses, assets its worth and provide a rational basis for setting its price. Let’s look at the grid of attributes vs brands for a sample Questionnaire. ,[object Object],When we see in the above grid, different brands differ in different attributes or services provided by them. Thus the brand having more positive attributes make it worth compared to the other. Here when we see the respondent is in favor of Airtel as he/she is attracted towards the services it is providing and also other new entrants like Docomo and Aircel are attracting the customers by providing better attributes more or less similar to the leading brands like Airtel, Vodafone and Reliance. Thus Vodafone should identify its competitors, its strengths and weaknesses, understand opportunities to improve the product and should set priorities for improvement according to the customer needs and finally set prices accordingly to not only retain existing customers but also attract new ones. Questionnaire Scaling Questionnaire is used to statistically obtain information about the topic of our concern. It is the valuable method of collecting a wide range of information from a large number of individuals, often referred to as respondents. Therefore a proper Questionnaire construction is critical to the success of the survey. Inappropriate questions, incorrect ordering of questions, incorrect scaling or a bad questionnaire can make the survey valueless, as it may not exactly reflect the views and opinions of the target respondents. Therefore in our questionnaire two different types of scaling has been used namely Nominal Scale and Ordinal Scale. Nominal Scale: In this scale the response sets are nominal i.e. response can be of following types: ,[object Object],In our Questionnaire, this kind of a response is used in the questions like ,[object Object]

Do u use internet service on your mobile – Yes/No

Response can also be of the type: ‘choose one’, ‘choose all that apply’, ‘choose all and specify’, choose one and specify’ from the list of characteristics.In our Questionnaire, this kind of response is used in the questions like ,[object Object]

Brands you have ever usedOrdinal scale: Used to rank objects according to the amount of characteristic the object possesses. Here Order reflects varying amounts of levels and Rank reflects range from high to low levels. Likert scales are ordinal but sometimes treated as interval scales. In our Questionnaire, question like rate according to your expenditure is an example of ordinal scale where ranking system is used and in the question, which of the following brands you like or dislike the most Likert scaling has been used. A Likert item is simply a statement which the respondent is asked to evaluate according to any kind of subjective or objective criteria; generally the level of agreement or disagreement is measured. In our question where Likert scaling is used, seven ordered response levels are used. WITH RESPECT TO OUR QUESTIONNAIRE Demographic Details of the Sample: Customer / Sample Size : 154 Row LabelsCount of locationahmdabad1alvar1bangalore24chattisgarh2chennai4hyderabad21kerela4kolkata28lucknow1mumbai66patna1raipur1Grand Total154 Basis of “Customer segmentation” Vodafone is adopting a multi-segment approach. They are offering differentiated products to their respective markets. Home calling cards for the family of those professionals whos family members work abroad. Rs 10 Rechange for the small users. Cheap SMS facility for the youth. Facilities for circle users. SEG 1 BRAND A BRAND BSEG 2SUPPLIER BRAND C SEG 3 BRAND C BRAND CSEG 4 SEG 5 Voice usage Recharge Revenue Usage of value added services Usage of data services. Examples of Segmentation ARPU (Average revenue per user) can be classified as high revenue earning customer. Specific campaigns can be designed and executed to satisfy this group of customers which will be entirely different from the campaigns to be executed for low usage customers. The customers having high STD call usage (National Long distance calls) can be targeted with specific STD tariff packs. Analysis on the basis of Market Research: IDENTIFICATION OF TARGET GROUP WITH RESPECT TO DIFFERENT SEGMENTS IN OUR QUSTIONNAIRE. TARGET GROUP WITH RESPECT TO AGE Looking at the service provider loyalty, from our questionnaire, ,[object Object]

Compare to it, the Vodafone has got more volatile in loyalty basis.

Accordingly, if we will compare the ‘change the service provider’(csp) option, Vodafone is been losing its customers with respect to Airtel, in terms of loyalty.

Also, reliance has got good customer loyalty, but lower than Vodafone.Now, looking at the next graph, we can interpret the loyalty in terms of the age group. Accordingly, Vodafone have to tap it’s target group. The different age group differs in its loyalty base which can be seen in its behavior. The different age group has been very volatile about its volatility. As we move further, we will look upon the different reasons of vodafone’s less volatility and accordingy, it will help to target its customers. ,[object Object]

There could be a reason because of their precious number, they don’t want to change their number or service. But if we consider the age group of 10-16, it is much more volatile and want to change its service if there is a better service been provided.This analysis has a support from the next graph where the vodafone is lacking in its some of the services, to tap this 16-25 age group, where this age group is been penetrated by some of the new companies with its new services to attract. Also, if we’ll consider the perceptual map, Vodafone is lacking in its services like rates, where the other service providers are penetrating. It can gain enough revenue, if Vodafone captures this young market which we can see in the expenditure graph shown later. Now if we’ll see at different service providers regarding the offers, call rates and sms rates which is largely been used by the 16-25 age group. Vodafone is lacking in its strategy to attract them as it is very low with respect to new service providers which is penetrating the market with this group like uninor, aircel, docomo. The segment which is been targeted by Vodafone till now is the 25-40 age group and Vodafone has grown enough potential in it, if we consider this group with respect to brands. Now, from this graphical analysis, the age group between 16-40 has been captured by Vodafone and it is the maximum revenue gainer for Vodafone, as can be seen in the expenditure graph further. Now, for strategies Vodafone have to target this major group 10-16, which is the most volatile group. Loyalty for the same servive provider Wait for upgradation of service provider TotalAge groupaircelairtelbsnldocomoIdealooprelianceuninorvodafone 10—1611216-251121214152725-40641231640-602111128Grand Total1215142711153 Number of Vodafone users who are willing to wait for vodafone to upgrade their service are pretty less as compared to airtel. If we consider the age-group of 16-25 loyalty is quite higher in case of airtel.the scenario is somewhat similar in case of 25-40 age group also. This is where Vodafone have to strategise to increase its loyalty and omit its weak points. Airtel by customer service is more upgraded than Vodafone according to customers which directy affects Vodafone with change in its service. Multiple Sim TotalAge groupaircelairtelbsnldocomoIdeareliancevodafone 10--161116-2551751825-40133431440-60112Grand Total1811312935 When it comes to multiple sim, we find that there is a significant number of users who are loyal to Vodafone for some of its offerings but they find certain features more attractive in other brands which is why they are willing to keep multiple sims. Now, the weak points have to be taken care of, there is a lesser market of multiple sim which can affect Vodafone if there is an attraction from the 2nd service provider. The major of the weakness as been discussed is in call rates, sms rates, network and customer care. Give feedback through portals TotalAge GeoupairtelbsnlIdeareliancevodafone 10--16 16-253111625-4021132940-60134Grand Total6214619 We see that the number of people willing to give feedback through portal is very few overall .But in this table, Vodafone has a good share amongst all age groups which again speaks of the possibility of keeping a customer loyal through portals. Now, this is major strategy as we have discussed in the synopsis about the strategy called ‘ unique U ‘. it is about the toll free messaging portal where customers can give their feedbacks as there is always a busy line in customer s care service, the customers can make Vodafone inform about the offers and services which the other service provider offering and want Vodafone to implement. This will give Vodafone a insight on the views of the customers and help it to change its strategy according to customers to make them loyal. As there is still an emerging base in usage of internet in india so it is not been held a the internet portal rather kept as a message portal. This kind of strategy will help Vodafone to retain its customers and increase the loyalty as we can see there is still a potential customers who are changing and can made tem wait to provide better service. Change the current service provider TotalAge groupairtelbsnldocomoideareliancevodafone 10--161116-25413132125-4042181540-6011114Grand Total911352241 While observing the above chart ,we find that customers are of schizophrenic mindset and cannot stay loyal to their brands when other brands are offering better options. In this case, Vodafone customers seem to be pretty volatile in terms of loyalty.In total there are 41 people who are willing to to change their current service provider, out of which 22 people are Vodafone consumers. This suggests that Vodafone needs to take initiatives to retain its customers. STRATEGY TO INCREASE THE BRAND LOYALTY FOR VODAFONE Improve on feedback portal Fig. change current provider We see that Vodafone users are wanting to change their service provider compared to other brands.so we should try to maintain loyalty of these users which would definitely help the company to grow in terms of customer base as well as in terms of revenue in the long run. There is a remarkable thing to notice in the above graph that users are willing to wait and give a feedback through the portal which leaves a scope of improvement for Vodafone to introduce a portal system to gather feedback and retain loyalty of certain customers. The portal should be user interactive so that it becomes a unique feature for the provider. Churn management By the usage of business analytics and data mining, the telecom operator can build a predictive modeling on the basis of customers' past behavior and a score is assigned to the individual customers. This score indicates the probability of the customer to leave the services of the operator. Moreover, by identifying the major contributing factors to the generated churn score, the reasons for his/her probable churn can be detected. By addressing those issues successfully, the customer can be made more loyal to the company and can be eventually prevented from churning. Increase Internet Customer Base From the above chart, we can see that the number of the Vodafone consumers who are not using the internet with comparison to other brands is higher .So there lies a segment of people where vodafone needs to penetrate with its internet service by providing better internet schemes. We also find out that current Vodafone users of age-group 16-25 prefer the “per data usage “ scheme which shows that they are usage sensitive and they prefer this to top-up cards.people opting for monthly rental are also large in number . This should be taken into account and Vodafone should introduce a system being a combination of monthly billing and per data usage. They should not miss out on upcoming generation segment i.e. age group 10-16 which is new market segment with telecom becoming cheaper day by day. They can introduce special internet schemes at reasonable price with free access to certain educational site. Expenditure Pre-Paid Customers’Expenditures In following charts, we compare the monthly expenditure pattern in different slabs for pre-paid customers. The major part of expenditure is from the part of consumers in expenditure slab 100-300 and followed by 300-600 slab of expenditure next. Airtel from our survey seems to be popular amongst low income level people which also include students. From the Vodafone expenditure pattern, we see that it also covers the middle-income people as majority of expenditure falling in the slab of 100-300.Although the 300-600 slab plays a significant part but when compared to brands like airtel it is a bit less percentage wise. But when comes to higher expenditure slab of 600-1000 then Vodafone leads in percentage figures.In prepaid it seems to be earning less than airtel which is its main rival in terms of revenues earned. Post-Paid Customers’Expenditures In the below charts , we can observe the expenditure based on different slabs by post –paid consumers. Accordingly, we can calculate and identify the age grouo where maximum postpaid is been used with an expenditure in different slabs. Although the number of post paid customers is less compared to prepaid customers,the major expenditure is done by people spending in the range of greater than 1000. This signifies a major contribution in post paid criteria comes from high income people rather than middle-income people as in case of prepaid customers. The 600-1000 also signifies almost same contribution to company’s revenue and this is also higher when compared with prepaid customers expenditure slab. In post paid expenditure , it seems to have been surpassing its rival airtel in terms of number of people spending greater than Rs1000 monthly.This shows that high-income people prefer post paid schemes rather than prepaid in both the rival companies. In Vodafone’s post paid expenditure pattern, the second major contribution comes from slab of 600-1000 which is same as airtel’s pattern. Customer Care Call Frequency as we can see from the charts we have shown, the major measurity of the consumers frequency to call at the customer care is once in a month in both airtel and Vodafone. But as we consider the categories regarding the ‘once in a week’, ‘twice in a week’, Vodafone has a greater amount of call with respect to airtel which is quite low ie. Around 1.2 % compare to vodafone’s 4.8%. this signifies vofdafone customers have more complains or queries regarding different problems compared to airtel, which automatically affects vodafone’s loyalty. MARKETING STRATEGY Considering the different consumption pattern in Indian youth in media. Accordingly, Vodafone have to tap his group with promotional strategies. Let us discuss about the graph of consumption of Vodafone target group per day. The maximum usage is in television and texting in mobile. Vodafone have to grab this group by having the maximum advertising in tv, online and sms. Uptill now, Vodafone has grabbed enough of its customers through television and online through zoo-zoo ads and taglines, but the upcoming market of texting in mobile has a major role to play in the future in terms of our target group ie. 10-16. As been discussed earlier, the market penetration of upcoming brands through its cheap call rates and sms rates is grabbing this youth under 16, which could be a heavy base for Vodafone in future. STP ANALYSIS Vodafone have to adapt a multi segment approach. They are offering a series of diffentiated products to different segments and different age groups. As we already been discussed about target group with respect to the expenditure and age. Vodafone has different segments to look upon. professionw.r.t agew.r.t expenditureeevodafone As seen in the figure, with respect to different segments, Vodafone can target different segments seeing the expenditure, profession and age group. As discussed before, age group from 10-16 can be attracted with new offers on calls and sms, who has less to expend on services. As the age group is increasing in segmentation, the expenditure is increasing and accordingly, the customers are becoming more discern and speculative in choosing a brand by seeing its quality. So this segments needs the better services and should be more attracted by customer touch points like recharge outlets, customer services, customer care. This can be seen by the preference map as been drawn. IDENTIFYING THE TARGET GROUP YOUTH: The most volatile group wih easy attraction with lifestyle using mobile in school. DEMOGRAPHICS: ,[object Object]

Student or just been salaried.

Staying in metros, mini metros, semi urban areas.PSYCHOGRAPHICS: ,[object Object]

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