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A Project Report
On
ACTIVITIES FOR SALES AND DISTRIBUTION CHANNELS IN DELHI
Submitted for partial fulfillment of award ofBACHELOR OF BUSINESS ADMINISTRATION
Degree InCOMPUTER AIDED MANAGEMENT
(2009-2012)
Submitted to: Submitted by:ANSHIKA RAJVANSHI KARAN MITROO(ASST. PROFESSOR) ( 03013401909 ) BBA (CAM) – III YEAR
IDEAL INSTITUTE OF MANAGEMENT AND TECHNOLOGYKARKARDOOMA, DELHI.
(Approved By G.G.S. Indraprastha University, Delhi)
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CERTIFICATE
This is to certify that Mr. KARAN MITROO of IDEAL INSTITUTE OF MANAGEMENT &
TECHNOLOGY has successfully completed the summer training in partial fulfillment of
requirement for the award of BACHOLARS OF BUSINESS ADMINISTRATION (COMPUTER
AIDED MANAGEMENT) Degree prescribed by the Institute.
This report is the record of authentic work carried out by the student during the academic year 2009 -
2012
(Prof. ANSHIKA RAJVANSHI)Internal Guide
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DECLARATION (TO BE SIGNED BY THE STUDENT ON PLAIN A4 PAPER)
DECLARATION
I, KARAN MITROO hereby declare that this report is the record of authentic work
carried out by me during the academic year 2009-2012 in Vodafone.
________________________________________________________________
Vodafone Essar South Limited, B1/G2, 2nd Floor, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi 110 044Email: [email protected] : +91- 97190 97191
( ) Signature of the student
(Karan Mitroo)
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ACKNOWLEDGEMENT
It is a great sense of satisfaction and a matter of privilege to me to work at VIDEOCON INDUSTRIES, GURGAON. I wish to express my heartiest
thanks to VIDEOCON Organization Division for providing me the opportunity to undergo training in the esteemed organization. Under such a
nice environment, systematic work approach and target oriented task management of this division provided me with the much-desired training
experience needed for future management professional.
It is my pleasure to thank MR. ARIJIT DAS GUPTA to whom I owe a lot for giving me an opportunity to do my training in this organization; I also
owe a special thanks to MR. SACHIN ROY for allowing me to do project under their guidance.
My heartfelt thanks to MR. PRADYUT MISHRA for accepting me as a project trainee in his group and helping me in this project with words of
encouragement. I would also like to express my gratitude towards him for showing full confidence in my abilities.
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INDEX
INTRODUCTION
HISTORY OF THE INDUSTRY
COMPANY PROFILE
PRODUCTS & SERVICES
ORGANISATIONAL CHART
FUTURE PLANS
SALES MANAGEMENT & CHANNELS OF DISTRIBUTION
PROJECT WORK DETAILS
RESEARCH METHODOLOGY
DATA ANALYSIS & FINDINGS
CONCLUSION
RECOMMENDATIONS
APPENDICES
BIBLIOGRAPHY
ANNEXURE
No. of Figures 1
No. of Tables 4
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I N T R O D U C T I O N
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Introduction
"Telecommunications is the backbone of our future economy. International
competitiveness increasingly depends on the development of a telecommunications
infrastructure that is compatible with international standards. "
The cellular industry all over the world has been witnessing very high growth rates in
subscriber base in recent years. For developing countries in particular, cellular services are
becoming a very significant proportion of the overall telecom infrastructure. The mechanics
of competition within this market involve complex feedback effects between individual
service providers and with their operating environment, and these forces play an important
role in governing the growth of this industry.
In a country like India which is not yet telephone-saturated and the ongoing changes in related areas
are resulting in a rapidly changing profile of users, providers and their respective needs, continuous
revision of the telecom policy is imperative. Given the emerging new technologies and the integrating
economies there must be fairness among competitors.
The tele-density in India is about four per hundred people in respect of the fixed telephones
and a little less than one in respect of the mobile telephony. The low densities are not
because there is no need for a telephone but because of its high cost that many cannot
afford that one. The situation here is nothing but holding true of the “law of demand”. Isn’t it?
The cost for the companies can come down if the revenue share imposed on them as a
condition of license is abolished or drastically reduced. Today every telephone company is
bound to pay a share out of its revenue to the exchequer. These costs are, however, not to
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be scheduled to take a step further in the development of the telecom. In addition when we
go through the telephone bill there is a 5 to 8% service charge. This amount also does not
go for the telecom development. If these external cost are removed there can be seen a
spurt in demand of not less than 40% as expected.
While taking the side of suppliers a lot of new companies are coming into the battlefield
resulting in reduction of prices and hence a little less burdensome on to the customer. The
cost of interconnection with the incumbent is proving to be contributory to the high cost of
services provided by the competitors.
The delay in the interconnection disregards the quality of service and high cost will detract
from affordability. This is an area in which no consumer body can knowledgeably contribute
unless it has the assistant of experts or economists who alone can discover all the relevant
fact of all the contesting companies. It indicates the pre-eminent domain of TRAI (Telecom
Regulatory Authority of India).
As the driven down of the prices for long distance including international services reduces
the amount available for subsidizing the local service, the rental for local services are being
increased. Considering that about 90% of the long distance
Calls are made by less than 20% of customers, 80% of customers have to pay higher rental
this depresses the demand for telephones and affordability. The urban business subscribers
will be bearing the bond of the subsidies to be given to the rural private consumers.
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H I S T O R Y O F T H E I N D U S T R Y
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History of the Industry
Cellular Telephony in India:
The technology that gives a person the power to communicate anytime, anywhere - has spawned an
entire industry in mobile telecommunication. Mobile telephones have become an integral part of the
growth, success and efficiency of any business / economy. The most prevalent wireless standard in
the world today, is GSM. The GSM Association (Global System for Mobile Communications) was
instituted in 1987 to promote and expedite the adoption, development and deployment and evolution
of the GSM standard for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement on the need to
adopt common standards suitable for cross border European mobile communications. Starting off
primarily as a European standard, the Groupe Special Mobile as it was then called, soon came to
represent the Global System for Mobile Communications as it achieved the status of a world-wide
standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global
digital wireless market. The Indian Government when considering the introduction of cellular
services into the country, made a landmark decision to introduce the GSM standard, leapfrogging
obsolescent technologies / standards. Although cellular licenses were made technology neutral in
September 1999, all the private operators are presently offering only GSM based mobile services.
The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for
GSM technology to offer their mobile services.
Cellular Industry in India:
The Government of India recognizes that the provision of a world-class telecommunications
infrastructure and information is the key to rapid economic and social development of the country. It
is critical not only for the development of
the Information Technology industry, but also has widespread ramifications on the entire economy of
the country. It is also anticipated that going forward, a major part of the GDP of the country would be
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contributed by this sector. Accordingly, it is of vital importance to the country that there be a
comprehensive and forward looking telecommunications policy which creates an enabling framework
for development of this industry.
Cellular Market Structure in India:
As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed to operate
in designated geographical operating areas. The service areas include four metro areas and 18 circles
categorized as A, B and C. (The categorization is based on the revenue Proceedings of the 36th
Hawaii International Conference on System Sciences).
The potential with category C circles in the lower end of the scale. For example the metros account
for 40% of the subscriber population, with Category-A, B and C accounting for 33%, 23% and 4%
respectively. The CMSPs had to pay an entry fee and subsequently annual license fee as a percentage
of their revenue to the Department of Telecommunications.
The entry and license fees varied according to the service area, highest for metros and lowest for
Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and their licenses
were revoked leading to a monopoly situation in certain areas. Apart from these charges, each CMSP
has to share the revenue with the long distance operators for carrying inter-service area calls.
In profitable metros and circles, the competition is severe and the market is split between the two
operators. In a price-cap regulated market, the operators use appropriate pricing strategy to win
customers and win market share.
In highly price-elastic markets, such as in India, as the service provider reduces the price, the
subscriber base increases considerably, and so is the network traffic. The increased network traffic
decreases the performance and the quality of service, inviting customers to switch. Being a new
entrant in a metro area, the government operator reduced the airtime charges to such an extent that the
subscriber base increased suddenly leading to poor network performance. The operator did not have
enough network capacity to handle calls leading to blocking of calls, with frustrated customers
switching over immediately to competitors.
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The operators also have to resort to non-pricing competition strategies to win customers. In India,
CMSPs offer a variety of service plans as a means to attract new customers. Different service plans
include: pre-paid calling card schemes, discounted airtime rates for evening and night time calls,
discounted roaming charges, no or minimum activation fees, and reduced mobile to mobile long
distance call rates.
The service providers incur additional advertising and infrastructure cost for implementing these
plans. Short Message Service (SMS) and Wireless Application Protocol (WAP) service are fast
catching up. For example, in India, about 500,000 SMS messages are being carried by a service
provider in one metro area alone. When the sector moves over to an oligopoly market, the operators
have to provide improved quality of service and value added services in order to survive and gain
market share.
Larger operators who have experience and infrastructure may be able to provide a higher quality of
service and other value-added service at a lower price. They also have access to larger project
financing for enlarging their networks and services. For example, a single large operator now has
license to operate in 14 service areas in the country with the largest footprint to cover most of the
areas of the country. Mergers and acquisitions are commonplace as the operators are consolidating
their revenues to survive in the market places.
Cellular subscribers and those with a propensity to go mobile in Delhi have never had it so good.
They now have four service providers to choose from, each offering an array of both pre- and post-
paid schemes. More importantly, average tariffs across plans have, by some reckoning, dropped by at
least 50 per cent in the last six months. The entry of Vodafone saw a further drop in tariffs and the
operators have come out with new schemes to retain their subscribers and attract fresh ones.
What does this mean for subscribers and for the cellular industry in Delhi? All the four operators —
Essar Mobile Services Ltd., Bharti Cellular Ltd, MTNL and Idea Cellular services. — are convinced
that the market will only expand and the subscribers will benefit even more. Their reasoning is that
cellular penetration in Delhi, which traditionally occupies the third position in other areas, is less than
fifty per cent. Therefore, entry of new players will only increase awareness about the facility, the
companies say.
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Moreover, the state-owned MTNL has also been playing with its cellular service for quite some time.
that, with the imminent launch of limited mobility using CDMA (code division multiple access)
technology by companies like Tata Tele Services will only add to the subscriber base, probably result
in further reduction of tariffs, and an even greater widening of the cellular market, according to
officials in four cellular companies now servicing Delhi.
However, the companies also sound a note of caution — any further drop in tariffs will be harmful to
the companies, points out one of the officials taking care of the — Sales & Marketing division of the,
Essar Mobile Services Ltd, average tariffs in Delhi across different plans have fallen by 30 per cent
since December with launching of the CDMA services.
Besides the fall in tariffs, what has really happened with the entry of CDMA is a heightened
awareness in the market. Mobile penetration in Delhi and its suburbs is estimated to be less than
twenty-five percent of the population and the cellular operators believe that this number should
definitely go up.
It is here that Vodafone decided to target the customers with what it believes are unique products and
features. Its emphasis has been on value proposition and brand building. Mobility is not only about
carrying voice, as per the reports from the marketing department and adds that the unified messaging
system for the post-paid customers of (now Vodafone) is one such unique product.
Accordingly, Vodafone signed in its subscribers in lakhs from the year onwards it has been launched
in Delhi. Industry analysts say that a majority of them will be pre-paid customers, whose loyalty to a
particular brand is always in doubt. However, pre-paid for the cellular is nothing but the engine for
growth and there is always a possibility that most of them will shift to post-paid once they are
convinced of the quality of service provided.
On the other hand the entry of a new operator lends more visibility to the service and there is also
increased trade activity — that is the number of dealers will increase and more people will be on the
road trying to sell the service and product. There is also greater consumer awareness of what cellular
service can deliver and expectations go up in terms of pricing or service standards or network
availability.
The Churn in the Cellular Industry:
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As like the other products Cellular industry has not been left untouched from the Churn (switching
over). During the survey this fact comes to the fore. According to the cellular operators, there is a
normal seven to eight percent churn in the customers, especially in the pre-paid category. Among the
post-paid customers, the Churn is much lower about two-three percent.
They say that one significant change that has happened in the last few months, more so since
lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges are concerned
— incoming calls has been set free while they are charging reasonably only for the outgoing ones —
has changed. A tariff re-balancing has definitely taken place.
This means that the cellular operators are encouraging their subscribers to not just receive calls, but
also make calls — increasing the usage of the service. With falling tariffs, cellular operators are
convinced that increasing usage is one way to ensure that average revenue per user (ARPU) does not
fall very low. The industry figure for ARPU is believed to be about Rs.1,100 while it may vary from
operator to operator. The operators are also concentrating on introducing more value added services
to the customers. Value-added services have not really taken off. Only the SMS (short messaging
service) has really caught on, but operators like Bharti are bringing in services like music messaging
and concierge facility for its subscribers.
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C O M P A N Y P R O F I L E
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Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994
when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now
has operations across the country with over 71.54 million customers.
Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected
Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most
Effective Advertiser of the Year’.
Vodafone Group is the world’s leading international mobile communications corporation. It currently
has equity interests in 27 countries across 5 continents and 40 partner networks with over 289 million
proportionate customers worldwide. The Essar Group is Vodafone’s principal partner in India.
The Essar Group is a diversified business corporation with a balanced portfolio of assets in the
manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports &
Logistics, and Projects. Essar employs more than 50,000 people across offices in Asia, Africa, Europe
and the America.
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Company Profile of Vodafone
Today, in India, becomes Vodafone. Now, the pink color logo of will be replaced by
Vodafone Essar’s corporate red colored one.
After acquiring 67 per cent of stake (around Rs. 250 crores) in ison Essar from Hong Kong-
based is on Whampoa, Vodafone Essar is expecting to touch over 35 million customers
across 400,000 shops and thousands of own employees along with employees of its
business associates.
Asim Ghosh, MD, Vodafone Essar, said “We’ve had a good innings as in India and today
marks a new beginning for us, not as a departure from the fundamentals that created, but an
acceleration into the future with Vodafone’s global expertise.”
Vodafone CEO and Vice-Chairman Arun Sarin of the joint venture Vodafone Essar will
be landing in India for the meeting that would discuss branding exercise, expansion plans,
spectrum requirements for its expanding subscriber base and future plans.
Vodafone offers a host of premier value added services (VAS) including national and
international roaming in over 70 countries in over 160 networks, Wireless Application
Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket
updates, M-banking, general information, tarot line, etc. The company launched WAP in
Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in
December 2000. The company has been a prime mover in introducing these value-added
services in the Delhi circle.
The values are stated simply. To be fair and transparent in what they do and how they do it.
To provide the quality services with more customer friendly practices. To make one’s
communications experience simple, pleasurable and fun. Where he doesn't simply get
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technology - but technology that is relevant. Where solutions are not just promised in the
future - but delivered in the present.
CORE VALUES
We shall uphold the dignity of the individual;
We shall honor all commitments;
We shall be committed to Quality, Innovation and Growth in every endeavor;
We shall be responsible corporate citizens.
Vodafone Logo:
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P R O D U C T S &
S E R V I C E S
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Products:
Call Charges of Vodafone compare to Airtel:
All National Networks All Airtel Networks
Rs / min Rs / min
All Incoming calls 1.00 1.75
Outgoing calls (Rs / min)
Local calls 1.00 1.4
STD calls 1.5 2.4
ISD calls
USA, Canada, Europe+UK (fixed), South East Asia,Australia and New Zealand 9.49 9.49
Gulf, Africa, UK Mobile, SAARC & Pacific Rim countries 12.28 12.28
Norfolk Island, Cook Island, Cuba, Diego Garcia, Guinea Bissau, Nauru, Sakhalin,Sao Tome & Principle, Solomon Island, Tokelau, Tuvalu, Vanuatu
42.29 42.29
SMS Rs / SMS Rs / SMS
Outgoing(Local / National) 1.50 on Vodafone networks3.45 on all other networks
3.45
Outgoing(International) 3.45 3.45
Incoming Free Free
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Bonus Cards :
BONUS CARD MRP
(Rs)
BENEFIT TARIFF VALIDITY
(Days)
BONUS CARD 84 84 All local calls @ 60 ps/m 180
BONUS CARD 59 59 Local calls V2V 30ps, V2M 50ps,
V2LL 50ps, with talktime of Rs 20
60
BONUS CARD 22 22 All local calls @ 60 ps/m 30
SMS BONUS CARD 30 300 local/national SMS free 30
BONUS CARD 99 99 Unlimited local V2V calls free,
Other all local calls @50ps/m
30
BONUS CARD 29 29 400 V2V local minutes free 30
BONUS CARD 31 31 All STD calls @ Rs1/m 30
BONUS CARD 85 85
Local V2V @ 30ps/m,
Other local Mo./LL @ 50ps/m,
STD calls @ Rs1/m,
30
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Local SMS @ 50ps/SMS,
National SMS @ Rs1/SMS
Note: Limited period offers on Bonus Cards 29, 59, 99.
Easy e-topup of Vodafone :
MRP Rs VALIDITY PROCESSING . FEE TALKTIME SERVICES
from to (Days) Rs from to
10 10 0 2 7.07 7.07 Small Recharge
11 21 0 2 7.79 17.07 Small Recharge
25 25 0 2 20.67 20.67 Small Recharge
26 28 0 2 21.57 23.39 Small Recharge
32 49 0 2 27.01 42.42 Small Recharge
50 50 0 2 43.33 43.33 Small Recharge
51 58 0 2 44.24 50.58 Small Recharge
60 83 0 2 52.4 73.25 Small Recharge
86 98 0 2 75.97 86.85 Small Recharge
100 110 0 2 88.66 97.73 Small Recharge
111 111 0 2 98.63 98.63 Small Recharge
112 198 0 0 101.54 179.51 Small Recharge
200 221 0 0 181.32 200.36 Talktime Recharge
222 222 0 0 222 222 Full TT Recharge
223 350 0 0 202.18 317.32 Talktime Recharge
351 351 0 0 318.22 318.22 Talktime Recharge
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352 500 0 0 319.13 453.31 Talktime Recharge
501 501 0 0 454.22 454.22 Talktime Recharge
502 1000 0 0 455.12 906.62 Talktime Recharge
1001 1001 0 0 907.52 907.52 Talktime Recharge
1002 7000 0 0 908.43 6346.33 Talktime Recharge
Voda Magic Box:
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Note: There may be changes in price with time.
SERVICES:
Staying connected becomes a lot easier with Vodafone. We have a wide range of
services you can access right from your Vodafone phone. From cell banking to
flight updates to call management services, get all that you want, instantly.
Dial 600 to activate
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To activate these values added services on your Vodafone phone simply dial 600
SSSSSand access our Interactive Voice Response system.
SMS
Message your family and friends through Vodafone SMS Services. It's convenient and affordable.
Communicate with cell phone users in over 100 countries and anywhere in India –by sending and
receiving text messages.
Pay just Rs. 1.50 per message for sending SMS anywhere across the country.
SMS Chat
Now, you can chat on your Vodafone phone with as many people as you want.
Its fun and as simple as sending an SMS. Your identity will remain anonymous as
your phone number is never displayed during the chat. You can have your own
profile and chat name.
You can also create your own chat rooms or chat in the different rooms that
already exist including: Teens, 20s, 30s, Office, Bollywood, Delhi.
All you have to do is type in your messages and send them to 2428. You will be
charged Rs. 2 per outgoing message. Incoming messages are free.
Vodafone Online
Get all the useful information you need directly on your Vodafone phone - with Vodafone Online.
Including cricket, finance, entertainment, weather, astrology and more.
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Simply go to the Vodafone Online menu on your Vodafone phone. If you do not see the
Vodafone Online menu on your phone, send HELP to 123. We will send you the list of keywords.
Scroll to the topic on which you need information.
Select the information and key input as requested on the screen.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
MTNL Directoy
With this facility you can get to know the address and telephone no. of MTNL users.you will be
charged Rs.2 per outgoing message.
STD / ISD Codes
You don't need to look up your diary or a phone directory to find out STD and ISD codes. You can
find it directly through your Vodafone phone.
Ringtones & Logos
Now you can change the ringtone on your Vodafone phone according to your
moods. You can download logos as well. With the Vodafone and Yahoo! tieup you
have hundreds of tunes and logos to choose from.
For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of
SMS sent). For every logo/picture message downloaded, you will charged Rs.
3.00 (including the cost of SMS sent).
Flash & Blink
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Vodafone now offers you two exciting ways to send messages. You can make
your message flash directly on your recipient’s screen instead of the inbox. You
can also highlight the important parts of your message through blinks. So your
text messages become not only more visible, but more effective too.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Dial-in Services
Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to check cricket
scores, horoscope, up-to-the minute news and other relevant information on services that touch your
everyday life.
All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).
Here's a shortlist of services you can access –
Service Number
NDTV Online 123
Info Line 301
Dial-n-Deliver 306
Cricket Online 123
Tarot Line 314
Cell Rashi 315
Dial-a-Pizza 303
Dial-a-Cab 335
Voice Response Service 123
There are occasions when you may not want to take a call or your Vodafone
phone maybe busy or simply unreachable. By paying a nominal monthly access
fee, you can now retrieve your messages at your convenience. Even if you are
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roaming, you can retrieve your messages from your voice mailbox through a
fixed line, anywhere on earth.
Your Vodafone voicemail can
Hold up over 17 messages at a time.
Receive a message that lasts up to 90 seconds.
Store a message for as long as you want.
You can also record your voice signature and welcome message.
Calling Line Identification
You can check your caller's telephone name and number on your phone screen whenever you receive
a call. This gives you the flexibility to either accept or reject an incoming call. This service is also
helpful in identifying your missed calls.
You can access this service by just paying Rs. 49 per month, if you are a postpaid customer. This
service is absolutely free if you are a Vodafone Prepaid customer.
Itemized Billing
As a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end of each
month. This is a detailed billing statement which helps you keep track of all your calls. Your itemized
bill includes:
Origin of the call
Destination of the call
Duration of the call
Toll charges
Airtime and total charge
Get your itemized bill.
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Via post: Pay a monthly rental of 49 only.
Via e-mail: Pay just Rs. 19 per itemized bill.
Fax & Data Services
This service enables you to constantly keep in touch with your office, colleagues
and information sources. You can send or receive faxes and transmit data using
your Vodafone phone anytime, anywhere. Whether you are operating from
home,
Hotels and airport lobbies.
At speeds of up to 9600 bps within the network or while roaming. You can even
access the Internet.
All you need is a handset compatible data card (PC Card) or a GSM Software, and
a data chord cable with a PC to set up a mobile office.
You can also opt for either Vodafone Fax or Vodafone Data services
independently.
Your Vodafone fax number can help you differentiate between incoming voice
calls and fax transmissions. You can also send and receive faxes anywhere on
earth with your Vodafone phone
By opting for the Vodafone Data Services you can access e-mail, databases and
the Internet. All on your single incoming data number.
Charges to activate the Vodafone Fax and Data service, you just need to pay a
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one-time activation fee of Rs. 500. To access the Fax service, the fee is Rs. 250.
The usage charges are nominal at Re 1 per minute.
Call Management Services
There may be occasions when you need to conference with up to six people at a
time or talk to just two. Or you are speaking to someone and want to forward an
incoming call to another phone. With your Vodafone phone, you can do this and
more. Vodafone helps you manage your calls effortlessly so that you stay in
control of your conversations, always.
Voice Response
Get your Vodafone phone to respond directly to your commands. Custom
designed to recognize Indian voices and accents, the Voice Response service
makes your life more convenient. You can get the latest updates on news,
stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1
minute pulse).
Voice Messaging
Voice Messaging has become even more affordable. You can now send voice messages to cellular
phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min* (as against
Rs.4.95 per min earlier).
Voice messages within India across select networks will cost you Rs. .95 per min only. Also,
recipients of the cellular Voice Messaging service have the option of replying back to the messages,
which get returned back as return Voice Mail messages, facilitating two-way (though not
simultaneous) voice communication.
Yahoo! Messenger for SMS
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You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive Vodafone-
Yahoo! tie-up, you can easily get connected through your Vodafone phone. This unique messenger
comes with a lot of exciting features. You can connect with all Yahoo! Messenger users, send,
receive and reply to instant messages, view and manage your friend list and also manage
authorization requests. All this and more just by using SMS. You will be charged Rs. 2 per outgoing
message. Incoming messages are free.
Cell Banking
Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account and
transact directly on your Vodafone phone by sending text messages.
The first of its kind in India, this service enables you to conduct your banking without having to visit
the bank or making a call.
You can do Cell Banking from over 90 countries worldwide.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Roaming
Now you can always stay connected, no matter where you are. With the
Vodafone Roaming facility, you can use your Vodafone phone in over 100
countries worldwide and over 1000 cities, towns and highways across India.
Vodafone Roaming makes life easy and convenient for you.
One number across the globe
Your Vodafone phone number and PIN number remains the same whether you
are in Delhi, Chandigarh, London, Paris or anywhere else in the world.
National and International Roaming on Vodafone Prepaid
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Roaming on Vodafone Prepaid gives you the most extensive coverage in over
1000 cities, towns and highways across India, and in over 100 countries around
the world. Enjoy Roaming on your Vodafone Prepaid card and stay in touch wherever
you go.
Yahoo! Mail for SMS
You can now directly access your email account on Yahoo! Mail on your
Vodafone phone. What’s more, you do not need a WAP enabled handset for this
service as it is based on SMS. So gain freedom from your PC and access your
Yahoo! mails anytime, anywhere on your Vodafone phone.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
WAP
With WAP, you can have the Internet directly in your pocket. So if you are
looking for quick and easy delivery of information and services, your Vodafone
phone can show it all. Use it to check out news, finance, shopping,
entertainment, travel, entertainment and city service information etc.
To access this service all you need is a WAP enabled handset and WAP services
activated on your Vodafone phone. This service comes to you at a nominal
charge of Re. 1 per minute (1 min pulse).
Group Messaging
Party invitations, movie outings, festive greetings... whatever be the occasion, you can send your
message to all your friends at one go!
With Group Messaging from Vodafone, you can thus save yourself the bother of painstakingly
sending your message to one person at a time whether you are on Vodafone Prepaid or Postpaid.
Vodafone4help
Page 34
Vodafone4help now lets you take advantage of a lot more services than before. You can connect to
the nearest fire brigade or mechanic or florist or even order a pizza. If you are stranded in the middle
of the road, or if you you need immediate medical attention or if you are looking for a police station
close by, Vodafone4help gives you instant access to your nearest source of help, anywhere in Delhi or
the NCR.
All the help services are [email protected] /min. While for police and fire help only local airtime charge
is applicable.
Page 35
F U T U R E P
L A N S
Page 37
O R G A N I S A T I O
N A L C H A R T
Organisational Chart:
Page 38
PREPAID POSTPAID
C O O[ M r . A n i l B a j p a y e e ]
S & M H E A D[ M r . M i t a s h C h a t e r j e e ]
Z B M[ M r . A m i t a b h
A k h o u r i ]
S A L E S H E A D[ M r . S a n d e e p B h a t t a c h a r y a ]
A S M ( P r e & P o s t )[ M r . A m r e s h
P a n d e y ]
S R . E X E C U T I V E[ M r . Y o g e s h
A r o r a ]
E X E C U T I V E[ M r . D i l i p
S o n i ]
S R . E X E C U T I V E
[ M r . A b i r P a l ]
E X E C U T I V E[ M r . V i m l e s h
S i n g h ]
PSR 3 PSR 1 PSR 2
DISTRIBUTOR 3[Vikas Ent.]
DISTRIBUTOR
1[Chirag Agency]
DISTRIBUTOR
2[Om
Electricals]
Page 39
S A L E S M A N A G E M E N T &C H A N N E L S OF D I S T R I B U T I O N
Page 40
SELLING:
Selling means only to convert the goods and services into money. It includes the discovery of
buyer, to inform him about the goods and services available with the producer, to inspire him to
purchase the goods and services and to deliver these goods and services to the consumers. Thus
selling includes only physical distribution of goods and services from the producers to consumers.
Features of Selling:
Selling is a classical word.
It includes only the physical distribution of goods and services.
Selling is limited only to the physical distribution.
Selling is product-oriented.
The aim of sale is to earn the maximum profit.
It stresses upon maximisation of profits through maximisation of sales.
Sellilg is a routine activity with short term objective.
SALES MANAGEMENT:
Meaning Sales Management means the planning, organisation assigning, routing, direction,
supervision, remuneration, motivation and controle of all the selling activities of a business and
industrial enterprise. It includes marketing research, sales research, sales forecasting, formation of
sales organisation, appointment of selling force, determination of remuneration for selling force,
advertisement, sales promotion and personal selling etc.
Though the success of a business and industrial enterprise depends to a large extent
upon the quality, uses and characteristics of its products, but if the sales management of the enterprise
is weak and defective, the enterprise may have to force the failure, even if its products meet all the
expectations of consumers. Therefore, it becomes very necessary for every business and industrial
enterprise to have a sound and efficient sales management.
Page 41
Objectives of Sales Management
Some of the important objectives of the sales management may be as under:-
To conduct Marketing Research;
To discover new markets and new consumers for the product;
To attract the attention of consumers through advertisements and sales promotion;
To select a suitable channel of distribution;
To arrange for the supply of product into the market according to demand;
To arrange controle the costs of distribution;
To encourage dealers, distributors and salesmen.
Functions of Sales Management
Function of sales management may broadly divided into three parts as follows:
(1) Administrative Functions: Administrative Functions of sales management include
the functions relating to policy formulation. These functions may be-
To develop sales organisation structure;
To determine sales policies of the enterprise;
To determine and specify the rights and duties of all the officers and employees of
sales organisation;
To establish effective co-ordination in the activities of various departments of sales
organisation.
(2) Operative Functions: Operative Functions of sales management include the
functions to run a sales organisation smoothly. These functions may be-
To appoint salesmen;
To arrange for the training of these salesmen;
To determine and arrange for the remuneration of these salesmen;
To allocate sales territories to these salesmen;
To determine sales target for different sales territories;
To controle the activities of salesmen;
To prepare, implement and monitor the programmes of advertisement and sales
promotion;
Page 42
To encourage and motivate these salesmen to sell more and more products.
(3) Staff Functions: Staff Functions of sales management of an enterprise include the
functions performed as sales specialist.These functions may be:
To conduct marketing research;
To advise for the development of product;
To make sales forecasts and to prepare sales plans in the light of these
forecasts;
To make sales correspondence;
To analyse the sales;
To advise marketing manager in respect of advertising and sales promotion
programmes; and
To conduct research related to the rerformance of selling force of the
enterprise.
CHANNELS OF DISTRIBUTION
Page 43
Main problems of a manufacturer can broadly be divided into two parts-production and
Distribution. Every manufacturer attempts at producing the goods and services of best possible
quality at minimum possible cost. This is only a half-success of a manufacturer. The succss is
completed when he makes these goods and services available at proper time and at right places. The
term ‘Channels of Distribution’ has been defined by many eminent authors. Some of the important
definitions are as follows:
William J Stanton, “A channel of distribution (sometimes called a trade channel) for a
product is the route taken by the goods as they move from the producer to the ultimate consumers or
industrial user.”
Cundiff, Still &Govani, “Marketing channels are the distribution networks through which
producers`products flow to the market.”
Philip Kotler, “Every jproducer seeks to link together the set of marketing intermediaries that best
fulfil the firm’s objectives. This set of marketing intermediaries is called the marketing channel
(also trade channel or channel of distribution).”
On the basis of analytical study of above definitions, it can be concluded that a channel of
ditribution is a chain through which a producer transfers the ownership of
his goods and services ot his consumers. Channels of distribution are also known as middlemen,
agents of distribution, and distribution chains. A channel of distribution is a bridge to cover the gap
between a manufacturer and consumers.
Types of Channels of Distribution
Page 44
There are different types of channels of distribution and a manufacturer may select any on of this
channel. These channels may broadly by divided into two parts-
(I) Channels of Distrbution related to industrial products.
(II) Channel of Distribution related to consumers products. The details in this regard are as
follows:
[I] Channels of Distribution Related to Industrial products:
A manufacturer of industrial goods may use any on of the following channels of . . . …
distribution for the distribution of his products;
1. The goods may directly be distributed by a manufacturer to his buyers.
Producer Industrial users.
2. A manufacturer may take the help of agents to distribute his goods to the buyers.
Producer Agents Industrial users.
3. A producer of industrial goods may take the help of wholesalers for the
distribution of his goods.
Producer Wholesalers Industrial Users.
4. Industrial goods may be distributed to their users through two middlemen also .
These middlemen may be wholesalers or distributprs and selling agents.
Producer Wholesalers or Distributors Agents Industrial Users.
[II] Channels of Distribution Related to Consumers Goods:
A producer of consumer goods may use any of the following channels of distribution:
Page 45
1. A producer of consumer goods may distribute his peoducts direct by to his
consumers.
Producer Consumers.
2. A producer may take the help of middlemen for the distribution of his products .
Middlemen may be retailers or agents.
Producer Retailers Or Agents Consumers.
3. A menufacturer may choose to distribute his goods with the help of two middlemen.
These two middlemen may by wholesalers and Retailers.
Producer Wholesalers Retalers Consumers.
4. A manufacturer may distribute his goods to his consumers with the help of three
middlemen. These middlemen may be agents, wholesalers, and retailers.
Producer Agents Wholesalers Retallers Consumers.
5. A producer of consumer of consumer goods may also decide to distribute his goods
to his consumers through four middlemen. These middlemen may be distributors,
Agents, Wholesalers and retailers. This is the longest channel of distribution.
Producer DistibutorsAgents Wholesalers Retallers Consumers.
Functions of Channels of Distribution
Some of the important functions of Channels of Distribution are as follows:
Page 46
1. Helpful in Price Determination: Channels of Distribution are very helpful in
determining the price of products because they are in direct touch with customers.
They can estimate paying capacity of consumers for a product.
2. To Manage Finance: All the manufacturers have limited financial resources.
Middlemen help manufacturers in making adequate financial resources available.
They purchase the goods produced by manufacturers and make the payment for that.
3. To make the Process of Distribution Easy: it is not possible for a producer,
particularly a producer of consumer goods to be in direct touch with all the consumers
so channels of distribution help the producers in this regard.
4. Promotional Activities: Channels of distribution also help in promoting the sales
of goods and services. Wholesalers advertise for the goods dealt with by them
and retailers help in increasing the sales by adopting the measures of sales
promotion. Retailers display the goods in their showrooms so that more and more
consumers may be attracted.
5. Helpful in Communication: Channels of distribution help producers in
communicating the changes in products to the consumers and in communicating
the changes in habits, tastes, likings and preferences of consumer to the
manufacturers. Thus channels of distribution play an important role in
communicating the needs of consumers to the manufacturers and policies of
manufacturers to the consumers. It increases the sales of manufacturers.
6. Matching of Demand and Supply: Most important function of middlemen is to
collect goods and services from many producers so that consumers may select
from among a large number of alternatives.
7. Other Function: Other functions of channels of distribution may be-
(i) To stablise the prices;
(ii) To help in forecasting the demand for a product;
(iii) To help in marketing research; and
(iv) To help in production activities etc.
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P R O J E C T W O R K D E T A I L S
Page 48
Purpose & Scope of the Work
Survey 1: To find out present condition of Vodafone’s products, services and their
demand in the market.
Survey 2: To check the availability of Vodafone products in the retail outlets.
Purpose:
To know the Vodafone’s present performance in the market.
Vodafone’s relative status in the market with respect to other telecom service
companies.
To know the availability of Vodafone products in the market as well as most running
and demanded products of Vodafone.
To know the improvements and retailers demand andqueries about Vodafone.
To set a new plan to increase the sales and distribution of Vodafone products and
services through keen market survey.
Scope:
It helps to provide a clear picture of Vodafone at market.
It gives the idea how the competitors are performing and how we should make
strategy against it.
It gives the rate of supply of voda products in the market and its expected rate of
change in coming days.
Most demanded tariff plans and products are key part of Vodafone, so survey helps
to make more attention towards selling of these products and services.
Survey helps to solve the problems of retailers, to make the effective supply chain
from distributor to end users.
Page 49
Survey 3:
a) To find out comperative selling of Airtel and Idea with respect to Vodafone (in
monthly basis).
b) Network survey of area covered by Single BTS (Preferably in 3 KM radius).
Purpose:
To estimate the monthly selling of competitors’ product against the Voda products in
the market.
To find out the new location and new market to install effective selling of Vodafone.
It also helps to find out signal quality of area covered by Single BTS (Inside & Outside
of the outlets).
To fulfill the demand of retailers & to check sufficient advertisements of vodafone at
Retail Outlets (to increase the awareness of voda products & services).
Scope:
To know the retailers selling strength and to encourage them for increasing the sales
of vodafone by solving their queries.
To sell the products & services in new location by making awareness of new plans
and schemes of voda products to the retailers.
To make aware to the customers via retailers about the new expansion of vodafone
coverage and its growth in new areas.
Installed BTS and services within the area give the reference to the company for
future expansion so that new BTS installation would fulfill the increasing requirement
in new location.
To check out the network of vodafone and its productive improvements to solve the
problem of coverage in a particular area covered by Single BTS.
Page 50
4. Some Promotional Activities of Vodafone:
Fig. 1
a.) Van Activity
b.) Canopy Activity
Van activity was performed all over the DELHI City at different outlets of Vodafone by
our team, where we made awareness of voda products and services among the
customers and retailers.
In canopy activity we promoted sales of Vodafone products and make aware to the
customers about new offers and schemes and we got opportunities to direct
interection with them.
Page 51
R E S E A R C H M E T
H O D O L O G Y
Page 52
RESEARCH METHODOLOGY:-
RESEARCH PROBLEM
To find out present condition of Vodafone’s products, services and their demand in the
market.
To check the availability of Vodafone products in the retail outlets.
To find out comperative selling of Airtel and Idea with respect to Vodafone (in monthly
basis).
Network survey of area covered by Single BTS (Preferably in 3 KM radius).
Information requirement
Before going for the survey I had to know about all the products and services of Vodafone.
I had to know about all the distributors and retail outlets of DELHI city.
I need to know about all the Single BTS area.
SOURCES OF DATA
Primary sources
The primary data was collected through questionnaires. They were filled using the
scheduled method of data collection by the researcher.
Secondary sources
The secondary sources were used only for collecting information regarding the sample; they
were however not used for analysis.
Page 53
RESEARCH DESIGN
A Research design specifies the methods and procedures for conducting a particular study.
It is a map (or) blue print to which the research is to be conducted. Descriptive research
design has been considered as a suitable methodology for present study and for data
analysis.
SAMPLING DESIGN
The sampling design used was Convenience sampling, which is a non-probability sampling
method. The convenience factors were the availability and approachability of the
respondents.
POPULATION
All types of outlets that stock and sell Vodafone products and services in the markets.
PLACES OF STUDY
The study was conducted in the retail outlets in DELHI in the following area:
Lakhe Nagar
New Rajendra Nagar.
Katora Talab.
Shailendra Nagar.
Byron Bazar.
Budhapara.
Golbazar
Santoshi Nagar.
Purani Basti.
Sanjay Nagar.
Sundar Nagar.
Shankar Nagar
New Shanti Nagar
Pandri
Mova
Page 54
Lodhi para
Fafadih
Devendra Nagar
Station Road
Sakara
Sarora
Mandir Hasaud
Sai Nagar
M.G.Road
Tatibandh
Telibandha
ANALYSIS TECHNIQUES
Quantitative analysis is performed using the data collected at each outlet to estimate the
presence of Voda products.
Tools Utilized
Percentage Analysis
Graph Chart
Page 55
SAMPLING
1. Sampling Technique : Non probability sampling (A non probability sampling technique is that in which each element in the Population does not have an equal chance of getting selected.)
2. Sample size : 26 areas and 200 retail outlets
3. Method : Direct interview through questionnaire.
4. Data analysis method : Graphical method.
6. Area of survey : DELHI District.
7. Timing of survey : 10:30 am to 7:00 pm.
Note: All the data of sales are mentioned on the basis of survey work done in April-May, 2009.
Page 56
D A T A A N A L Y
S I S
&
F I N D I N
G S
Page 57
Data Analysis:
1. Sales of Vodafone Products:
VODA PRODUCTS SALES IN PERCENTAGE
SIM Cards 25%
E-top up 50%
Paper Vouchers 20%
Hand Sets 5%
Table No. 1
Page 58
SIM Cards E-top up Paper Vouchers
Hand Sets05
101520253035404550
25
50
20
5
Analysis of Sales of Vodafone Products
Sale
s in
Per
cent
age
Graph No. 1
1. Sales of Vodafone Products in compare to other telecom companies:
TELECOM COMPANIES SALES IN PERCENTAGE
Airtel 45%
Idea 30%
Vodafone 25%
Table No. 2
Page 59
Airtel Idea Vodafone05
1015202530354045
45
3025
Sales of Vodafone Products in compare to other telecom companies
SALE
S IN
PER
CE
NTA
GE
Graph No. 2
2. Network Quality of Vodafone BTS:
NETWORK QUALITY IN SINGLE BTS TOWN AREA
SALES IN PERCENTAGE
Very Good 90%
Good 8%
Poor 2%
Table No. 3
Page 60
Network Quality in Single BTS Town Areas
Very Good Good
Poor
fGraph No. 3
4. Satisfaction Level of Retailers from Distributor’s Service:
RETAILER’S SATISFACTION ` LEVEL
NO. OF RETAILERS(In Percentage)
Highly Satisfied 85%
Satisfied 13%
Least-satisfied 2%
Table No. 4
Page 61
Satisfaction Level of Retailers from Distrib-utor’s Service
Highly Satisfied
Satisfied
Least-satisfied
j Graph No. 4
Findings:
(i) Selling of E-top up is more than other products and selling of handsets are very less.
(ii) Airtel has covered maximum part of the market, so it can be said as the
biggest ,competitor of Vodafone.
(iii) Network quality of single BTS is very good in maximum places but it is not so good in
out of its 3 KM radius.
(iv)Most of the retailers are satisfied with services of Vodafone and its distributors but in
some outlets it is not like that.
About Distribution pattern of Voda products:
Page 62
One distributor has near about 250 – 300 outlets for distribution.
And 1 DSE/FOS has near about 30-35 outlets.
Role and responsibilities of the distribution:
Every retailer should have 7 days stock of Paper Vouchers;
Every retailer should have 3 days stock of E-top up;
Every retailer should have 1 month stock of Handsets;
Every retailer should have minimum 50 SIM.
COMPANY BACK OFFICE
DISTRIBUTOR
FOS/DSE
RETAILERS
Page 63
C O N C L U S I O N
Conclusion:
From the survey conducted the following conclusions can be drawn:
Vodafone has a good market response.
All retailers and customers are happy with the services given by vodafone.
Canopy activities and van activities are really helpful to promote the sales.
Time to time surveys are very much helpful to get the comlaints and suggestions
of the customers and retailers.
Vodafone tariff plans and schemes are cheaper than other telecom services so
customers are happy with that.
Page 65
R E C O M M E N D A T I O N S
Recommendations:
1. Sim card activation must be on time, it should not be delayed.
2. SIM Card price should be same as much as possible in different retail outlets.
3. Most demanded products should be continue in the market (e.g. 99 Bonus card).
4. There should be slight reduction in STD call rates. (recentaly BSNL announces
reduced rates on STD calls )
Page 66
5. Expansion of Network/coverage must be fast in the village places.
6. Advertisement of advance services of vodafone must be there along with the normal
tariff plans.(eg.- Internet service, cell banking etc).
Page 67
A P P E N D I C E S
Abbreviations:There are some abbreviations which are used in telecom sectors, they are:
ACT ActivationCIF Customer Information FormFCC First Chargable CallFOS Field Officer SalesISO Independent Sales OfficerTHQ Tehsil Head QuaterDHQ District Head QuarterBTS Base Transmission System
Page 69
D E T A I L S O F D I S T R I B U T O R S . & R E T A I L E R S
There are 3 distributors in DELHI City, they are:
1. Chirag Agency;
2. Om Electricals;
3. Vikas Enterprises.
Page 70
And they distribute total 891 outlets all over the DELHI and its near area. List of the outlets are
given below with the name of their distributor, FOS name and address:
Questionnaires
RETAIL SURVEY FORMAT
Page 71
Name of the Town/Village ________________________________
Population ________________________________
District/Highway Name ________________________________
Name of the Retail Shop ________________________________
Name of the Retailer ________________________________
Retailer Address ________________________________
Demo/Lapoo SIM No. Vodafone _______________________ Airtel _______________________
Idea _______________________
Name of the Distributor for Vodafone _______________________ Airtel _______________________
Idea _______________________
Total No. of Activation Vodafone _______________________ Airtel _______________________
Idea _______________________
Activation for Telecom Industry Total _______________________
Sells Handset Yes/No How many/month ________
Turn Over (SIM+RCV) Vodafone _______________________ Airtel _______________________
Idea _______________________
Turn Over (SIM+RCV) Total _______________________
Trainee Name____________________ Date of Visit_____________________
Questionnaire format for Retailers
Page 72
Purpose- To know the satisfaction level of Retailers from Vodafone and its distributor’s services.
Retail Outlet Name
Name of FOS & Distributor
Regular Visit of FOS (Yes/No)
Satisfied with voda services(Yes/No)
Complaints/Suggestions (If any)
GIS POP & NETWORK QUALITY FORM
Name of District __________________________
Name of Single BTS __________________________
Page 73
Name of Nearest Vodafone Distributor Town _______________________ Distance in KM______________
Name of Nearest THQ _______________________ Distance in KM______________
Name of Nearest DHQ _______________________ Distance in KM______________
NAME OF THE . RETAILER
AREA NAME NETWORK QUALITY INDOOR
NETWORK QUALITY OUTDOOR
Name of the Villages/Town being covered from the BTS (Preferably in 3 KM radius):
_______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________
These questionnaires had been made to complete the following action plans:
To check the Network Quality in all the markets of the town.
To check the Indoor & Outdoor Coverage in all the important places of the town & all
telecom retail outlets & to fill the Network Quality Form.
Page 74
To visit all the telecom outlets & to fill the Retail Mapping in attached the attached
questionnaire.
To visit the villages/towns within 3 KM radius of the single BTS to check the Network
Quality.
To note the distance of the town from the nearest Voafone Distributor Town / THQ &
DHQ in Network Quality Form.
Page 75
B I B L I O G R A P H Y
BIBLIOGRAPHY
Page 76
WEBSITE:www.voafoneessarspacetelltd.com
SEARCH ENGINES:www.google.com
BOOK REFERENCE:
Research Methodology: By C.R.Kothari.
(Second Edition)
Marketing Management: Philip Kotler
(Eleventh Edition)
Marketing Management: By Dr. S.K. Gupta
(Sixth Edition)