project report
TRANSCRIPT
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INTRODUCTION
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1.1 INDUSTRY PROFILE
TELECOMMUNICATION
The Indian telecommunications industry is one of the fastest growing in the world and
India is projected to become the second largest telecom market globally. According to the
Telecom Regulatory Authority of India (TRAI), the number of telecom subscribers in the
country reached 621.28 million as on March 31, 2010, an increase of 3.38 per cent from 600.98
million in February 2010. With this the overall teledensity (telephones per 100 people) has
touched 52.74.The telecom industry notched up US$ 8.56 billion in revenues during the quarter
ended December 31, 2009 helped by a recovery in earnings from both mobile and landline
services.
According to Business Monitor International, India is currently adding 8-10 million
mobile subscribers every month. It is estimated that by mid 2012, around half the country's
population will own a mobile phone. This would translate into 612 million mobile subscribers,
accounting for a tele-density of around 51 per cent by 2012. Moreover, according to a study
conducted by Nokia, the communications sector is expected to emerge as the single largest
component of the country's GDP with 15.4 per cent by 2014. The Indian equipment market was
estimated at US$ 24 billion in FY09. Finnish giant Nokia is the Market leader, with over US$ 3.4
billion revenues in 2008-09, followed by Ericsson at US$ 2.11 billion.
With the availability of the 3G spectrum, about 275 million Indian subscribers will use
3G-enabled services, and the number of 3G-enabled handsets will reach close to 395 million by
2013-end, estimates the latest report by Evalueserve. According to a Frost & Sullivan industry
analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile
revenues will reach US$ 39.8 billion in India. Moreover, in an attempt to boost auction of 3G
spectrum, the government has allowed prospective bidders to raise short-term funds from
domestic market, which could be refinanced through external commercial borrowings (ECBs)
within 12 months.
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The government is expected to mop up US$ 7.53 billion through the auction of 3G
spectrum, which is likely to be completed by March 2010. It has fixed the reserve price at US$
753.74 million. State-run telecom operator BSNL has rolled out 3G services in 318 cities with
856,000 subscribers. BSNL has plans to cross 400 cities by March 31, 2010 and this will be
increased to 760 cities by September 2010. And even as debate on 3G continues, TRAI has
started consultation on the next level of telecom services. Fourth generation or 4G offers
download at faster speeds.
As of now, there are 23 circles in India including four metros and 19 other circles
subdivided in Circles A,B and C. The wireless services remain the primary drivers for the growth
declining wireline services and slow moving broadband services. Currently this sector is
fragmented with five – six operators in each circles without any restrictions on the new entrants.
Due to the rational pricing strategy and first mover advantage, the top four service providers
account for a massive 75-80% of the total market share. On the wireline side however the
penetration continues to be at the lower end. The current wireless broadband offering is limited
to enterprise consumers. With the auction of 3G and other technologies, the situation is likely to
improve for residential households in both urban and rural areas.
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MAJOR PLAYERS IN THE TELECOM INDUSTRY
BHARTI AIRTEL
Bharti Airtel is one of the topmost companies in the telecom sector in India and is under
the Bharti Enterprises Group. Airtel Bharti has been ranked as the best performance company in
the whole world by the Business Week magazine in 2007.The Company Bharti Airtel is in India
the biggest integrated and also the 1st telephone service provider in the private sector, which has
footprint in around 23 telecom circles. Bharti Airtel Limited has been since its very beginning
using the latest technology and thus the company has paved the way for the telecom sector in
India with its world-class services and products. This has helped Bharti Airtel Company to grow
for the number of its customers has increased very rapidly over the years Airtel comes to you
from Bharti Airtel Limited, one of Asia’s leading integrated telecom services providers with
operations in India, Sri Lanka and Bangladesh. Bharti Airtel since its inception, has been at the
forefront of technology and has pioneered several innovations in the telecom sector.
The company is structured into four strategic business units - Mobile, Telemedia,
Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and
Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 95
Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The
Enterprise business provides end-to-end telecom solutions to corporate customers and national
and international long distance services to telcos.
BHARAT SANCHAR NIGAM LIMITED (BSNL)
Bharat Sanchar Nigam Limited popularly also known as BSNL is an India-based
telecommunication service providing company. BSNL operates under the guardianship of the
Ministry of Communication, Government of India and Department of Telecommunication,
Government of India. Bharat Sanchar Nigam Limited operates according to the
telecommunication policy laid as per the Indian Telecommunication Acts and Rules. Bharat
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Sanchar Nigam Limited was established on 1.10.2000, as a result of the revamping of the
erstwhile Department of Telecommunication, Government of India. Bharat Sanchar Nigam
Limited is world's seventh largest telecommunications company, with a huge bouquet of
telecommunications services. The services offered by BSNL includes wireline, CDMA mobile,
GSM Mobile, Internet, broadband, carrier service, MPLS-VPN, VSAT, VoIP services, IN
Services etc. It is one of the fast growing and most profitable organization of Government of
India
MAHANAGAR TELEPHONE NIGAM LIMITED (MTNL)
Mahanagar Telephone Nigam Limited popularly known as MTNL is an India-based
telecommunication service providing company. MTNL operates under the guardianship of the
Ministry of Communication, Government of India and Department of Telecommunication,
Government of India. Mahanagar Telephone Nigam Limited operates according to the
telecommunication policy laid as per the Indian Telecommunication Acts and Rules. MTNL
enjoyed virtual market monopoly till the end of the year 2000.
VODAFONE ESSAR
Vodafone Essar started its operations in India in 1994 and is under the Vodafone Group.
The company Vodafone Essar Limited has become one of the leading companies in the telecom
sector in India due to its high standard of services that it provides to its customers. The company
Vodafone Essar has its operations in all the 23 telecom circles of the country. The company
offers both postpaid and prepaid GSM cellular mobile coverage all across India and its hold is
especially strong in the metropolitan cities. The company Vodafone Essar Limited provides
services like 2G, which are based on 1800Mhz and 900Mhz GSM digital technology. The
company Vodafone Essar also offers voice and data services.
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RELIANCE COMMUNICATIONS
Reliance Communications started its operations in 1999 and is under the Anil Dhirubhai
Ambani Group (ADAG) of companies. The company Reliance Communications Limited has
been set up with the aim of providing communication and information to people at affordable
price. The company Reliance Communications business includes the whole range of services
related to the telecom sector such as fixed line telephones and mobiles. The business of the
company also includes services like broadband, data services, international and national long
distance services. Reliance Communications also provides to its customers a wide range of value
added applications and services. The company is able to provide such a vast range of services to
its customers for it has a high- capacity, reliable, convergent, and integrated digital network.
TATA TELESERVICES
Tata Teleservices was set up in 1996 and is under the Tata Group, which is a group worth
around US$ 22 billion and has more than 96 companies. The company Tata Teleservices Limited
has been formed with an investment of around US$ 7.5 billion. The company Tata Teleservices
has helped the Tata Group to have a strong presence in the telecom sector in India and the
chairman of the company is Mr. Ratan N. Tata. The company was the 1st company in the
country to launch the CDMA mobile services within the state of Andhra Pradesh. Tata
Teleservices Limited offers various kinds of telephone services to its customers such as wireless
desktop phones, wire line services, mobile services, and public booth telephony. Further the
company also offers other services like value added services such as roaming, group calling,
voice portal, data cards, Internet post paid services, 3- way conferencing, enterprise services,
USB modem, Wi- Fi Internet, and calling card services.
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IDEA CELLULAR
Idea Cellular started its operations in 1995 and is under the Aditya Birla Group, which
holds 98.3% stake in the company. The Company Idea Cellular Limited is one of the telephony
wireless companies that functions in many states in India. The Company Idea Cellular is the
leading mobile services GSM operator in the country. The Company Idea Cellular Limited is the
only cellular operator in India to launch EDGE and GPRS. The chairman of the company is Mr.
Kumar Mangalam Birla and the managing director is Mr. Sanjeev Aga. Idea Cellular Limited has
the license to provide services in 11 telecom circles in the country. The telecom circles where the
Company Idea Cellular has operations are Goa, Maharashtra, Andhra- Pradesh, Chattisgarh,
Kerala, Tamilnadu, Haryana, Uttaranchal, Gujarat, Delhi, UP- West, and Madhya Pradesh. The
company's footprint at present covers around 45% of the population of India and more than 50%
of the telecom market.
AIRCEL
It offers both prepaid and postpaid GSM cellular phone coverage throughout India. Aircel
is a joint venture between Maxis Communications of Malaysia and Apollo Hospital Enterprise
Ltd of India. UTSB has a 74% stake in Aircel and the remaining 26% is with Apollo Hospitals. It
is India’s fifth largest GSM mobile service provider with a subscriber base of over 27.7 million.
It has a market share of 12.8% among the GSM operators in the country. As on date, Aircel is
present in 18 of the total 23 telecom circles. Aircel has won many awards for its services. Aircel
was honored at the World Brand Congress 2009 with three awards, Brand Leadership in
Telecom, Marketing Campaign & Marketing Professional of the Year. Aircel got the highest
rating for overall customer satisfaction and network quality in 2006 by Voice and Data.
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MARKET SHARE OF TELECOM OPERATORS
Indian market is not only the most attractive but also the most competitive with over
seven operators in each circle and another five new operators likely to start operations in the near
future. Nowhere in the world does any country have so many carriers. The dominant players are
Airtel, Reliance, Vodafone, BSNL (state owned), Idea, Aircel and Tata. Reliance and Tata offer
CDMA technology while all the other players are in the GSM space. GSM has a 75% share of
subscribers and now even Reliance and Tata have either launched or in the process of launching
nation-wide GSM services. GSM operators Vodafone Essar, Idea Cellular and Aircel have
increased their revenue market share by about 1% over the past 12 months despite the entry of
several new players and a brutal tariff war. An analysis of the FY10 revenue figures of all service
providers in the country reveals that the only incumbents who lost out during the period are
Bharti Airtel, the country’s largest telco by sales and customers, and state-owned BSNL &
MTNL. Bharti’s revenue share slid by 1.2%, while that of MTNL and BSNL taken together
dipped 2.5%. The operators’ market share as per TRAI survey is show below.
CHART1.1
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BSNL and MTNL finished 2009-10 with a combined revenue market share of 9.2 %,
while Bharti Airtel had 31.5%. This also marks the first time the state-owned telcos account for
less than 10% of the industry’s revenues from mobile phones. Besides, it is also a clear indicator
that state-owned telcos have been impacted the most or emerged in far worse shape from the
tariff wars that dominated the mobile space for the second and third quarters of the last fiscal.
Reliance Communications, the country’s second largest telco by customers, has seen its
market share remain flat at 11.5%. Tata Teleservices, which had triggered off the price war with
its aggressive GSM entry at one-paise-per-second tariff, has also made impressive gains — its
revenue share jumped 0.7% in 2009-10 and the Telco accounted for 8.6% of the country’s sales
from mobile services for the three-month ended March.
India’s Wireless Operators Revenue Market Share as per TRAI data is given below.
CHART 1.1.2
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VALUE-ADDED SERVICES MARKET
Mobile value added services include text or SMS, menu-based services, downloading of
music or ring tones, mobile TV, videos and sophisticated m-commerce applications. According
to the Economic Survey 2009-10, prior to 2008 a majority of VAS revenue was attributed to
SMS. But with greater penetration of new services, availability of relatively inexpensive, feature-
rich handsets and consumer education, value-added services other than SMS are gaining
importance. It is expected that over the next few years non-SMS services will become a
dominant contributor to VAS revenue.
Currently, mobile value-added services (MVAS) in India accounts for 10 per cent of the
operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by
Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74
billion by 2010. In a bid to increase revenue from add-on services, India's top two mobile firms,
Bharti Airtel Limited and Reliance Communications both plan to launch online mobile
applications stores.
Bharti Airtel will provide more than 1,250 applications across 25 categories including
games, books and social networking on its applications store. Reliance Communications’ first
version of its applications store would go live for GSM customers by the end of February 2010,
and by the end of March 2010 an expanded version would be available to its code division
multiple access (CDMA) customers as well.
The graph indicates the SMS volume growth. The graph depicts that the SMS Volume is
increasing at a very fast rate. It is estimated that the SMS volumes will reach 180 billions in
2010. It is estimated that the SMS volume is going to increase by 40 billion for the current year.
CHART 1.1.3
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3G SERVICES
The Department of Telecom has taken the pioneering decision of launching of 3G
services by BSNL and MTNL and initiation of process for auction of spectrum for 3G services to
private operators. Allocation of spectrum for third-generation (3G), and broadband wireless
access (BWA) services was done through a controlled simultaneous, ascending e-auction
process.
All the 71 blocks that were put up for auction across the 22 service areas in the country
were sold, leaving no unsold lots. Auction for 3G spectrum ended on May 19, 2010 after 183
rounds of intense bidding over a span of 34 days. The Government is expected to morph revenue
worth US$ 14.6 billion. All the available slots across 22 circles have been sold to seven different
operators.
A pan-India bid for third generation spectrum stood at US$ 3.6 billion. The Anil Ambani-
led Reliance Communication bagged the highest number of 13 circles at a cost of US$ 1.9
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billion, followed by Bharti Airtel in 12, Idea in 11 and Vodafone and the Tatas in nine circles
each, according to the Department of Telecommunications.
TRAI
The Telecom Regulatory Authority of India or TRAI (established 1997) is the
independent regulator established by the Government of India to regulate
the telecommunications business in India. The mission of Telecom Regulatory Authority of
India (TRAI) is to ensure that the interests of consumers are protected and at the same time to
nurture conditions for growth of telecommunications, broadcasting and cable services in a
manner and at a pace which will enable India to play a leading role in the emerging global
information society.
DEPARTMENT OF TELECOMMUNICATION (DOT)
The Department of Telecommunications is part of the Ministry of Communications and
Information Technology in the executive branch of the India. Telecom services have been
recognized the world-over as an important tool for socio-economic development for a nation and
hence telecom infrastructure is treated as a crucial factor to realize the socio-economic objectives
in India. Accordingly, the Department of Telecom has been formulating developmental policies
for the accelerated growth of the telecommunication services. The Department is also
responsible for grant of licenses for various telecom services like Unified Access Service
Internet and VSAT service.
The Department is also responsible for frequency management in the field of radio
communication in close coordination with the international bodies. It also enforces wireless
regulatory measures by monitoring wireless transmission of all users in the country. The major
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objectives of DOT are Policy, Licensing and Coordination matters relating to telegraphs,
telephones, wireless, data, facsimile and telematic services and other like forms of
communications, International cooperation in matters connected with telecommunications
including matters relating to all international bodies dealing with telecommunications such as
International Telecommunication Union (ITU), its Radio Regulation Board (RRB), Radio
Communication Sector (ITU-R), Telecommunication Standardization Sector (ITU-T),
Development Sector (ITU-D), International Telecommunication Satellite Organization
(INTELSAT), International Mobile Satellite Organization (INMARSAT), Asia Pacific
Telecommunication (APT).
Its objectives also include Promotion of standardization, research and development in
telecommunications, Promotion of private investment in Telecommunications and also financial
assistance for the furtherance of research and study in telecommunications technology and for
building up adequately trained manpower for telecom programme
1.2 COMPANY PROFILE
VODAFONE ESSAR
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Vodafone Group Plc is the world's leading mobile telecommunications company, with a
significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States
through the Company's subsidiary undertakings, joint ventures, associated undertakings and
investments. The company was founded in 1982 as a joint venture and the name was derived
from the newly-found company's goal of establishing both voice (VO) and data (DA) services
over a mobile telephone network.
The logo is called as Speechmark logo, suggesting conversation The Group's mobile
subsidiaries operate under the brand name 'Vodafone'. At 31 March 2010, based on the registered
customers of mobile telecommunications ventures in which it had ownership interests at that
date, the Group had 341 million customers, excluding paging customers, calculated on a
proportionate basis in accordance with the Company's percentage interest in these ventures.
The Company's ordinary shares are listed on the London Stock Exchange and the
Company's American Depositary Shares ('ADSs') are listed on the NASDAQ Stock
Market. Vodafone Group Plc is a public limited company incorporated in England. Vodafone
has approximately 85,000 during year ended 31 March 2010.
In India it is Vodafone Essar, formerly known as Hutchison Essar is a cellular operator
in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned
by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms
of revenue behind Bharti Airtel, and third largest in terms of customers.
On February 11, 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.[4] The transaction closed on May 8, 2007. Despite the official
name being Vodafone Essar, its products are simply branded Vodafone. It offers both
prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the
metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 23 of the country's 23 license areas. It is among
the top three GSM mobile operators of India.
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Vodafone is the world's largest mobile telecommunications community, employing over
65,000 staff and with over 130 million customers. The business operates in 26 countries
worldwide. Vodafone is a public limited company with listings on the London and New York
stock exchanges. Global recognition of the Vodafone brand is growing as the company rolls out
its identity into new markets. However, it retains local names and imagery in markets where this
is essential to maintaining the trust of customers.
On 8th April 2010 Vodafone has crossed the landmark of 100 million subscribers in India.
Vodafone India reported revenues of £954m (Rs 69bn) a growth of 13.2% QoQ and 26% YoY,
one of the strongest growth in last 5 quarters. ARPU slipped by 2.7% QoQ to Rs 191 (Slowest
decline over the last six quarters) .Traffic growth continued to be strong at 103bn minutes a
growth of 10% QoQ. More than 90% of subscribers have migrated to new schemes/cheaper
schemes offered by the company time to time by nearing competition offering. Revenue per
minute continue to be very strong for Vodafone (Rs 0.58 per minute) compared with other 3
operators (still a gap of 20-25%). This clearly highlights the fact of superior subscriber profile
garnered by the Telco.
For promotion Vodafone works with icons such as Zoo zoos & Pug to communicate its
brand values. It also concentrates on the Above the line advertisings like Advertising on TV, on
billboards, in magazines and in other media outlets reaches large audiences and spreads the
brand image and the message very effectively. This is known as above the line promotion. The
Below the line promotional activities done by Vodafone are Stores have special offers,
promotions and point of sale posters to attract those inside the stores to buy. Vodafone's stores,
its products and its staff all project the brand image.
1.3 PRODUCTS OF VODAFONE
The various products which are offered by Vodafone are
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• Prepaid
• Postpaid
• I-Phone 3G
• Magic box Handset
• World Calling Cards
• Gulf Calling Cards
• Vodafone PCO
• Vodafone Handy phone
• Prepaid recharge Cards
• Top – ups
• Calling Cards
Vodafone has a lot of products in its kitty. As it’s a GSM operator it provides all those
service which are required for a GSM operators. It mainly deals with the prepaid cards and the
products related to the prepaid usage such as the calling cards and rate cutters. For the postpaid
sim card users all the other products are not used because that is not required. The products also
vary from the sim cards to calling cards to the mobile handsets which are the unique products of
Vodafone.
1.4 SERVICES OFFERED BY VODAFONE
Vodafone also offers a lot of services. Some of the services offered by Vodafone are
• Tunes & Downloads
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• Entertainment
• Devotional
• Sports
• News & Updates
• Call Management Services
• Finance
• Travel
• Mail, messaging & more
• Dial in Services
• Bill Info
Vodafone is one of the telecom operators in India which provides the best services to its
customers. Through the use of the various services which are provided by Vodafone people can
be in touch with their beloved ones and also it help to update yourself with the latest news and
also helps to get into the world of entertainment and fun. The services provided by Vodafone
also help in knowing the happenings that are occurring in the world. Vodafone’s services also
enable its users to pay the bill through its services. These are some of the services which are
offered by Vodafone.
1.5 CHANNEL FLOW OF VODAFONE PRODUCTS
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The products from Vodafone have a flow channel through which it reaches in the hands
of its customers. The flows of products start from the warehouse which is owned by Vodafone
and then send to the distributors inorder to distribute to the retailers. Retailers are the people who
have the direct contact with the customers or the consumers. This chain is followed by Vodafone
in every places to ensure that the products are reached so end users in time and effectively. The
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RetailersCustomers/ Consumers
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responsibilities of each of the channel are very clearly known to themselves which makes its
distribution easier and simpler. The retailers through which the products are supplied to the end
users include
Mobile Shops
Chemists or Medical shops
Grocery
Panshops etc…
Distributer Sales Executives (DSE) are the people who are connecting retailers with the
distributors. Each distributor will be having some DSEs according to the shops under them.
1.6 RESEARCH OBJECTIVES
The project titled ‘A Study on the Visibility of Vodafone in the Retail Outlets of
Coimbatore Region’ has the following objectives. The objectives can be classified as the
primary and secondary objectives.
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PRIMARY OBJECTIVE
The primary objective of the project is to study the overall visibility of the telecom operators in
the Coimbatore region.
SECONDARY OBJECTIVES
To study whether the shopkeepers are satisfied with the service of Vodafone DSE’s.
To find the ways to improve the visibility of Vodafone.
To know the satisfaction of the POP’s provided by Vodafone.
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REVIEW OF LITERATURE
2.1 CONCEPTUAL DEFINITIONS
ADVERTISING
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Advertising is a form of communication used to help sell products and services. Typically
it communicates a message including the name of the product or service and how that product or
service could potentially benefit the consumer. However, advertising does typically attempt to
persuade potential customers to purchase or to consume more of a particular brand of product or
service. Modern advertising developed with the rise of mass production in the late 19th and early
20th centuries. Many advertisements are designed to generate increased consumption of those
products and services through the creation and reinvention of the "brand image". For these
purposes, advertisements sometimes embed their persuasive message with factual information.
There are many media used to deliver these messages, including traditional media such as
television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail
or post and Internet marketing. Today, new media such as digital signage is growing as a major
new mass media. Advertising is often placed by an advertising agency on behalf of a company or
other organization.
BELOW THE LINE (BTL) ADVERTISING
Below the line (BTL) is an advertising technique. It uses less conventional methods than
the usual specific channels of advertising to promote products, services, etc. Below the line
advertising typically focuses on direct means of communication, most commonly direct mail and
e-mail, often using highly targeted lists of names to maximize response rates. All advertising by
means other than the five major media - the press, television, radio, cinema and outdoors;
below-the-line advertising employs a variety of methods- direct mail, sponsorship,
merchandising, trade shows, exhibitions, ...
ABOVE THE LINE (ATL) ADVERTISING
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Above the line (ATL) is an advertising technique using mass media to promote brands.
Major above-the-line techniques include TV and radio advertising, print advertising and internet
banner ads. This type of communication is conventional in nature and is considered impersonal
to customers. Advertising which employs one of five main media - the press, television, radio,
cinema and posters.
PROMOTION
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing decision. A promotional
plan can have a wide range of objectives, including: sales increases, new product acceptance,
creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
Fundamentally, however there are three basic objectives of promotion. These are: 1.) To present
information to consumers as well as others 2.)To increase demand 3.)To differentiate a product.
BRAND EQUITY
Brand equity refers to the marketing effects or outcomes that accrue to a product with its
brand name compared with those that would accrue if the same product did not have the brand
name.
MERCHANDISING
Merchandising is the methods, practices, and operations used to promote and sustain
certain categories of commercial activity. In the broadest sense, merchandising is any practice
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which contributes to the sale of products to a retail consumer. At a retail in-store level,
merchandising refers to the variety of products available for sale and the display of those
products in such a way that it stimulates interest and entices customers to make a purchase.
VISUAL MERCHANDISING
Visual merchandising is the activity of promoting the sale of goods, especially by their
presentation in retail outlets. This includes combining products, environments, and spaces into a
stimulating and engaging display to encourage the sale of a product or service. It has become
such an important element in retailing that a team effort involving the senior management,
architects, merchandising managers, buyers, the visual merchandising director, designers, and
staff is needed. Visual merchandising starts with the store building itself. The management then
decides on the store design to reflect the products the store is going to sell and how to create a
warm, friendly, and approachable atmosphere for its potential customers. Many elements can be
used by visual merchandisers in creating displays, including colour, lighting, space, product
information, sensory inputs such as smell, touch, and sound as well as technologies such as
digital displays and interactive installations.
RETAILING
Retailing consists of the sale of goods or merchandise from a fixed location, such as
a department store, boutique or kiosk, or by mail, in small or individual lots for
direct consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods
or products in large quantities from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often
called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see
the process of retailing as a necessary part of their overall distribution strategy. The term
"retailer" is also applied where a service provider services the needs of a large number of
individuals, such as a public utility, like electric power.
2.2 REVIEW OF LITERATURE
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POP materials are one of the important materials which are used for the promotional
activities by the marketers. It is because the influence of POPs in the retail outlets cannot be
ignored. So POPs should convey the messages clearly. The attractiveness of the POPs also
make the consumers to look at it. As per the views of C. Jansson B.Bointon and N. Marlow,
“The only two robust dimensions for POPs were emerged for the aesthetic response such as
Clarity and Mystery. These however, had a significant influence on the subjects' rating of the
POP's attractiveness.”
POPs are also important for the retailers. Because of the POPs also a lot of products are sold
out. It is because impulse purchases are mainly based on what the consumer sees in a shop.
According to a report of KnowThis.com, “For retailers, POP displays can result in significant
sales increases compared to sales levels in a normal shelf position. Also, many marketers will
lower the per-unit cost of products in the POP display as an incentive for retailers to agree to
include the display in their stores”
Below the line activities are getting more focus than that of the ATL activities. It is because
BTL activities are mainly done in the shops where the consumers are coming and once they
see all these, the probability of buying the particular product is more. According to Ken
Peattie and Sue Peattie, “Below-the-line promotion has begun to shed its umbrella image,
and is starting to attract the sort of marketing budgets and academic attention that was
previously only given to mass-media advertising. However, there is a general consensus that
sales promotion is still neither managed effectively, nor understood thoroughly when
compared to more high-profile above-the-line promotion.”
The Availability and visibility has got a lot to do with the sales of the products of the telecom
operators As per the Indica Audit Result, June 2010 “The Availability and Visibility Index
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for the month of June’10 for RoT says that Vodafone is No.1with 23% and Airtel stands
second with 18% and is followed by Tata Docomo with 16%.”
The promotion of the products in this era takes a different path. Now the ATL activities are
paving the way to the BTL activities. It was found that the reach of BTL activities are more
than that of ATL activities. In an article published by C.Senthilnathan’s in Marketing
Mastermind says “The advantage of BTL activities when compared to the ATL methods is
that they can utilize the local environment opportunities as the key ingredients and reach the
product target audience with a local flavor that resulting in enhanced brand awareness,
preference and sustained brand loyalty. BTL marketing utilizes local flavor and regional
market opportunities to communicate about brands so as a result in rapid brand awareness
among new audiences and sustained brand loyalty among existing customers.”
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RESEARCH METHODOLOGY
3.1 RESEARCH BACKGROUND
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Research - Quantitative
Research design - Descriptive study
Data collection - Primary Data
Sample area - Coimbatore
Sample size - 150
Sampling design - Non-probability technique
Sampling Technique - Convenience sampling
Research approach - Survey method
Research instrument - Audit Sheet
- Questionnaire
Sampling tool - Structured Questionnaire method
Statistical package - SPSS
Analytical tool - Percentage
- Garrets ranking Analysis
RESEARCH METHODOLOGY
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Research method is an academic activity and as such as the term should be used in a
technical sense. This research comprises of defining and redefining problem, formulating
hypothesis or suggested solution; collecting; organizing and evaluating data; making deduction
and reaching conclusion; and at last carefully testing the conclusion to determine they fit the
formulating hypothesis. By this way proper methodology is an essential step in conducting
research study.
3.2 RESEARCH DESIGN
A research design is the arrangement of condition for collection and analysis of data in a
manner that aim to combine relevance to research purpose with procedure. The research design
adopted for this study is descriptive type. The objective of such a study is to answer “who, what,
where and how” of the subject under investigation. It is used because of its extensive flexibility,
scope and convenience. A descriptive research study is basically concerned with narration of
particular individual or group with specific predictions.
3.2.1 IMPORTANCE OF THE DESCRIPTIVE RESEARCH
To describe the demographic characteristics of certain group.
To estimate the proportion of people in a specified population who behave in a certain
way.
To make specific predictions.
To determine whether certain variables are associated.
3.2.2 RESEARCH APPROACH
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The survey method was adopted for collecting the primary data. Survey research is the
systematic gathering of data from respondents through questionnaire. Another instrument used
was the audit sheet.
3.2.3 RESEARCH INSTRUMENT
The data for this research was collected by survey techniques using interview method,
guided by questionnaire. Another instrument which was used for the survey was the audit sheet.
It was used for noting the data through observation.
3.3 SAMPLING
Sample denotes only a part of the universe / population. The sample represents the
population and is having the same characterizing as the population.
3.3.1 SAMPLING METHOD
Non – probability sampling
This type of sampling technique gives no assurance that every element has some
specifiable change of being included. It is clear that for the non – probability samples, there is no
way of calculating the margin of error and the confidence level.
3.3.2 CONVENIENCE SAMPLING
Sampling refers the method of selecting items to be observed for the study. The samples
have been selected for the study based on the convenience of the researcher. The method used
here is convenient sampling, where the samples are selected based on the convenience of
researcher.
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3.3.3 SAMPLING SIZE
Sampling size is the number of items to be selected from the universe to constitute the
sample. In this study, a sample study of 150 has been chosen.
3.3.4 SAMPLING AREA
This study was undertaken in and around Coimbatore town.
3.3.5 PERIOD OF STUDY
The study was undertaken between May 2010 and July 2010
3.4 DATA COLLECTION DESIGN
A marketing researcher has to make a plan for collecting data which may be primary
data, secondary data or both.
3.4.1 PRIMARY DATA
The primary data was obtained by administering survey method, guided by questionnaire
to the retail outlets which sell Vodafone products. The following type of questions, were asked in
the questionnaire
1. Closed ended questions
2. Multiple choice question
3. Dichotomous questions
These methods were adopted since the data which is required is highly focused and it is known at
the outset what information is needed.
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3.4.2 SECONDARY DATA
The secondary data are collected through various sources like
1. Secondary data are collected through internet related to industry, company, competitors,
etc
2. Review of articles being published on the topic in various magazines and newspapers
3. Data are also collected from the company brochures, etc
3.4.3 QUESTIONNAIRES:
The best way to collect the data is to personally administer the questionnaires. The
advantage of this method is, the data can be collected from the respondents within a short
period of time. Any doubts that the respondents might have on any question could be clarified
on the spot.
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3.5 ANALYSIS DESIGN
The study has used various statistical tools for the analysis of data. They are percentage
analysis, Garrets ranking.
3.5.1 PERCENTAGE ANALYSIS
Percentage analysis is used for the purpose of study which is most suitable for
questionnaire based study.
Percentage analysis is often used in data presentation for them simply numbers, reducing
all of them from 0 to 100 ranges. The data are reduced in the standard form with base equal to
100 which fact facilitates relative comparison. The formula used here is
P% = (A/B)*100
Where
P- Percentage
A - Given data to be compared with the base
B - Base of comparison
3.5.2 GARRETT’S RANKING METHOD
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This method is used to find the ranks of various operators in terms of innovativeness of the posters and also the ranking according to the POP’s available in the shop
The formula used is given as
100 * (Rij – 0.5)P = ----------------------
N
Where P= Percentile Position
N= Total no. of ranks
R= Individual Rank
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ANALYSIS AND INTERPRETATIONS
ANALYSIS
PERCENTAGE ANALYSIS
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Data were collected from the respondents to assess the visibility of Vodafone in the retail
outlets of Coimbatore region. The data were collected from 150 retail outlets of Coimbatore
region. The opinion given on the attributes under study may be influenced by the personal profile
of the respondents. Therefore to have a general idea on the attributes under study, a percentage
analysis is done.
4.1 NUMBER OF ACTIVATIONS
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Number of activations which are done by the retailers have a major impact on the sales
of the Vodafone products. So it is important to know what number of activations are done by the
retailers. Inorder to find that the analysis was done which is shown in the table below.
TABLE 4.1.1
CHART 4.1.1
From the table it can be interpreted that more than half of the sample size are doing less than 20
activations per month and those shops which do activations between 20-50 are 32% and those
shops which do more than hundred activations are only 2%.
4.2 TYPES OF OPERATOR PRODUCTS WHICH ARE SOLD IN SHOPS
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No. of Activations No. of Shops Percent<20 74 54.0
20-50 43 32.00-100 16 12.0>100 3 2.0
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The types of operator products which are sold in the shops have a great influence
on the visibility of each operator. Inorder to find whether it influences the visibility the survey
has made.
TABLE 4.2.1
Type of Operators No. of Shops PercentAirtel 150 100.0Aircel 149 99.3
Tata Docomo 147 98.0Vodafone 150 100.0
Uninor 128 85.3Videocon 74 49.3
CHART 4.2.1
Airtel Aircel Tata Docomo Vodafone Uninor Videocon0
20
40
60
80
100
120
140
160
Operator Products Sold in Shops
From the table it is found that in almost all shops Vodafone, Airtel, Aircel and Tata Docomo are present. Videocon and Uninor are yet to make into all the shops in Coimbatore
4.3 PERMISSION TO STICK THE POSTERS IN THE SHOP
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If the permission is given by the shopkeeper only the posters could be stuck for the
visibility. So its an important factor in determining the visibility of the telecom operators in the
shop.
TABLE 4.3.1
Permission No. of Shops PercentGranted 143 95.3
Not granted 7 4.7
From the table it can be interpreted that most of the retailers allow the operators to stick
their posters and also allow them to keep the POPs of the operators. Only a very few retailers
don’t allow the operators to stick the posters.
4.4 EXISTENCE OF VODAFONE SIGNAGE BOARD
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Signage boards are one of the important factors by which the visibility of Vodafone is
judged. Signage boards are the boards which are kept on the top or side of the shops.
CHART 4.4.1
Existence No. of Shops PercentYes 39 26.0No 111 74.0
CHART 4.4.1
Exists26%
Dont Exists74%
Existence of Vodafone Signage Board
From the table it can be interpreted that nearly 74% of the retail shops don’t have the
Vodafone Signage boards. Just 26% of the shops have the signage boards in their retail shop
which is a major factor for the visibility.
4.5 REASONS FOR NOT HAVING VODAFONE SIGNAGE BOARD
There will be many reasons for not having the Vodafone signage boards. Some of those
can be resolved but some cannot be.
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TABLE 4.5.1
Reason No. of Shops PercentNo space 23 20.0
Vodafone hasn't provided 9 8.0Has shop's own signage 64 57.0
Using competitor's signage 17 15.0
CHART 4.5.1
No space20%
Vodafone hasn't provided8%
Has shop's own signage57%
Using competitor's signage15%
Reasons for not having Vodafone Signage Board
There are many reasons for the retailers not to have the Vodafone signage boards. The
table explains the reasons for that. More than half of the shops which don’t have Vodafone
signage board are using their own signage boards and another 20% of the shops don’t have
enough space for keeping signage boards. Another 15% are using the competitor’s signage
boards.
4.6 SATISFACTION OF VODAFONE POSTERS
Posters are a very important item for the promotion of a product especially when it comes
to the telecom products as these are the POP materials which showcase the new schemes to the
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customers. So the effectiveness of the posters will make the difference in the buying of the
products from the shop. It also influences the impulse purchase.
TABLE 4.6.1
Satisfaction No. of Shops PercentSatisfied 140 93.3
Not Satisfied 10 6.7
CHART 4.6.1
Satisfied93%
Not Satisfied7%
Satisfaction of Vodafone Posters
From the table it can be interpreted that most of the shop keepers are satisfied with the
posters which are provided by Vodafone for its promotion. The chart shows that less than 10%
shopkeepers are not satisfied with the posters of Vodafone.
4.7 PROVIDING OF POSTERS BY DSE AT THE RIGHT TIME
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Posters are one of the important parameters of the visibility. If the posters are provided at
the right time only it can be useful. Posters are mainly used by telecom operators to project their
new schemes. So if it is provided only at the right time it will be valued.
TABLE 4.7.1Response No. of Shops Percent
yes 123 82.0no 27 18.0
CHART 4.7.1
yes82%
no18%
Providing of posters by DSE at the right time
From the table it can be interpreted that 82% of the shopkeepers agreed that Vodafone
DSE’s provide the posters at the right time.
4.8 FREQUENCY OF DSE STICKING POSTERS
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The frequency of sticking the posters also plays a major role in the influence of the
buying behavior of the customers. Usually telecom operators change their schemes in short
periods. So frequency of changing the posters plays an important role in the success of the
schemes employed by the telecom operators.
TABLE 4.8.1
Frequency No. of Shops PercentOnce in a Week 12 8.0Once in two Weeks 108 72.0Once in three Weeks 21 14.0Once in a month 9 6.0
CHART 4.8.1
Once in a Week8%
Once in two Weeks72%
Once in three Weeks14%
Once in a month6%
Frequency
From the table it can be interpreted that 72% of the shopkeepers told that Vodafone
DSE’s stick posters once in two weeks. Only 8% shopkeepers agreed that Vodafone DSE’s are
sticking posters once in a week.
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4.9 METHODOLOGY OF DSE CONVEYING SCHEMES
Conveying messages clearly to the retailers play a very important role in the selling of the
products. Only if the retailers understand the offers or schemes correctly they can convey it
clearly to the end customers.
CHART 4.9.1
Method No. of Shops PercentOral Communication 150 100.0
Trade Letter 0 0
From the table it can be interpreted that the Vodafone DSE’s are using only the Oral
Communication to communicate to the retailers.
4.10 SATISFACTION WITH THE SERVICE OF DSE
The services of DSE’s play a very important role in the satisfaction of the retailers about
the Vodafone products.
TABLE 4.10.1
Satisfied No. of Shops PercentYes 149 99.3No 1 .7
From the table it can be interpreted that almost all the retailers are satisfied with the
services of DSE’s of Vodafone.
4.11 VODAFONE POP’S AVAILABLE
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The visibility of Vodafone is contributed by the availability of the signage, shop painting,
posters, skating, danglers and shelf strips.
TABLE 4.11.1Type of POP No. of Shops Percent
Signage 44 29.3Shop Painting 8 5.3Posters 105 70.0Skatings 106 70.7Streamers 2 1.3Danglers 31 20.7Shelf Strips 29 19.3
CHART 4.11.1
Signage Shop Painting Posters Skatings Streamers Danglers Shelf Strips0
20
40
60
80
100
120
44
8
105 106
2
31 29
No.
of P
OP'
s Pre
sent
From the bar chart it can be interpreted that mostly skatings and posters contribute to the
visibility of Vodafone in the retail outlets while streamers and shop paintings contribute least.
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4.12 POSITION OF SIGNAGE BOARD OF VODAFONE
Signages are meant for knowing that a product is sold in the particular shop. So if a signage has to make an impact then it should be positioned correctly. Therefore position of the signage in the shops has an impact on the visibility of Vodafone.
TABLE 4.12.1
Position No. of Shops PercentFacing the road 39 88.6Side of the shop 4 9.1
Other places 1 2.3
From the table it can be interpreted that most of the shops which has the Vodafone signage is kept facing the road which is the ideal place to keep a signage board. While 9% of the shops have the signage placed on the side of the shop.
4.13 POSITION OF SHOP PAINTING OF VODAFONE
TABLE 4.13.1Position No. of Shops Percent
On the Wall 1 87.5On the Shutter 7 12.5
Even though very few shops are having Vodafone shop painting, from the table it can be interpreted that most of the shop paintings are on the wall of the shops and a very few shops has painting on the shutter.
4.14 POSITION OF SKATINGS OF VODAFONE
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Skatings are the small boards which are placed for the visibility purpose. Skating is
usually a rectangular shaped board. It is smaller than a signage board. Most of the telecom
operators use the skating boards for their visibility so as the case of Vodafone.
TABLE 4.14.1
Position No. of Shops PercentInside 5 4.8
Outside 100 95.2
Skatings are one of the factors which contribute to the visibility of Vodafone. Most of the
shops are having skatings. From the table it can be interpreted that most of the shops are having
skating boards placed outside the shop which are the ideal place where it can be placed.
4.15 OPERATORS FOR WHICH THIRD PARTY MERCHANDISE OPERATES
Merchandising teams are one of the factors which contribute to the success of the telecom
operators in keeping their visibility alive
TABLE 4.15.1
Operator No. of Shops PercentAirtel 144 96.0Aircel 139 92.7
Tata Docomo 129 86.0Vodafone 0 0
Uninor 111 74.0Videocon 85 56.7
From the table it can be interpreted that all the telecom operators expect Vodafone are
using merchandising teams.
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4.16 EXISTENCE OF OTHER OPERATOR’S SIGNAGE
Existence of other operator’s signage can affect the visibility of Vodafone’s visibility.
When a shop is having other operator’s signage they usually won’t have Vodafone’s signage
board.
TABLE 4.16.1Exists No. of Shops PercentYes 22 14.7No 128 85.3
CHART 4.16.1
yes15%
no85%
Existence of other operator’s Signage
From the table it can be interpreted that only 15% of the shops has the other operator’s
signage. Most of the shops don’t have other operator’s signage boards.
4.17 TYPE OF SIGNAGE PROVIDED BY THE COMPETITOR
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There are two types of signage boards. They are classified according to the lighting given
to the boards. The first one is the frontlit one which does not have any lights on it. The second
one is the backlit one which uses lights inside the signage board. The backlit signage boards need
electricity to operate. It is mainly used in the shops which open at night. Usually the backlit
signage board will be bigger than the frontlit signages.
TABLE 4.17.1Type of Signage No. of Shops Percent
Frontlit 10 45.5Backlit 12 54.5
CHART 4.17.1
Frontlit46%
Backlit55%
Type of signage
Even though a very few shops has the competitor’s signage, from the table it can be interpreted that there is no much difference in providing of the backlit and frontlit signages to the shops. It can be interpreted that almost equal weightage is given for the frontlit and backlit signages
4.18 AVAILABILITY OF HYGIENE POSTERS IN THE SHOPS
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Hygiene posters are the posters which are almost fixed in the shops by the telecom
operators to show that their products are present in the shop.
TABLE 4.18.1
Operator No. of Posters Available in the ShopAirtel 160Aircel 76
Tata Docomo 132Uninor 67
Vodafone 135Videocon 69
CHART 4.18.1
Airtel25%
Aircel12%
Tata Docomo
21%Uninor10%
Vodafone21%
Videocon11%
Availability of Hygiene Posters in the Shops
From the above pie chart it can be interpreted that 25% of the shops has Airtel hygiene
posters which are closely followed by Vodafone and Tata Docomo with 21%. Videocon and
uninor has the least number of hygiene posters in the shops.
4.19AVAILABILITY OF CAMPAIGN POSTERS IN THE SHOPS
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Campaign posters are the posters which tell about the schemes and offers of the telecom
operators. Usually these posters are changed during each weeks or each months based on the
change of the schemes.
TABLE 4.19.1Operator No. of Posters Available in the Shop
Airtel 89Aircel 86
Tata Docomo 84Uninor 65
Vodafone 122Videocon 34
CHART 4.19.1
Airtel19%
Aircel18%
Tata Docomo18%
Uninor14%
Vodafone25%
Videocon7%
Availability of Campaign Posters in the Shops
From the above pie chart it can be interpreted that Vodafone is having 25% of the
campaign posters and it is followed by Airtel, Aircel and Tata Docomo.
4.20 OVERALL VISIBILITY INDEX
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Overall visibility index is the parameter that determines which operator has the
highest share of visibility in the retail outlets. This table shows the results of the survey taken
from SHOPS in and around Coimbatore.
TABLE 4.20.1Operator Total POP’s Available in the Shops
Airtel 249Aircel 162
Tata Docomo 216Uninor 132
Vodafone 257Videocon 103
CHART 4.20.1
Airtel22%
Aircel14%
Tata Docomo19%
Uninor12%
Vodafone23%
Videocon9%
Overall Visibility index
From the above pie chart it can be interpreted that Vodafone has the highest visibility
index with 23% which is very closely followed by Airtel with 22%. The third slot is taken by
Tata Docomo with 19% and then comes Aircel followed by Uninor and Videocon.
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GARRETT’S RANKING METHOD
Garrett’s ranking method is used to determine the ranks of the operators in terms of the innovativeness and the total availability of the POP’s in the shop.
The formula used is given as
100 * (Rij – 0.5)P = ----------------------
N
Where P= Percentile Position
N= Total no. of ranks
R= Individual Rank
4.21 RANKING OF INNOVATIVENESS IN THE POSTERS OF THE OPERATORS
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From the chart the operator which has the highest aggregate (∑Xf) is given the highest
rank which is followed by the other operators according to the aggregate. The table shows the
ranks of each operator in terms of the innovativeness of the posters.
TABLE 4.21.1
Rank Operators1 Tata Docomo2 Vodafone3 Airtel4 Aircel5 Uninor6 Videocon
From the above table it can be interpreted that Tata Docomo comes in the first rank in
terms of the innovativeness in the posters provided for the visibility. It is followed by Vodafone
with the second rank and Airtel with the third rank. Aircel, Uninor and Videocon take fourth,
fifth and sixth positions respectively.
4.22 RANKING BASED ON THE POP'S AVAILABLE IN RETAIL OUTLETS
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RANKING BASED ON THE INNOVATIVENESS OF THE POSTERSRank 1 2 3 4 5 6 TotalPS(X) 77 63 54 46 37 23 Vodafone(freq) 16 75 27 17 4 1 Xf 1232 4725 1458 782 148 23 8368Airtel 28 15 52 32 17 6 Xf 2156 945 2808 1472 629 138 8148Aircel 22 13 29 34 35 17 Xf 1694 819 1566 1564 1295 391 7329Tata Docomo 47 29 19 27 28 10 Xf 3619 1827 1026 1242 1036 230 8980Uninor 30 9 16 25 38 32 Xf 2310 567 864 1150 1406 736 7033Videocon 10 7 6 16 28 83 Xf 770 441 324 736 1036 1909 5216
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From the chart the operator which has the highest aggregate (∑Xf) is given the highest
rank which is followed by the other operators according to the aggregate. The table shows the
ranks of each operator in terms of the availability of POP materials in the shop.
RANKING BASED ON THE POP'S AVAILABLE IN RETAIL OUTLETSRank 1 2 3 4 5 6 TotalPS(X) 77 63 54 46 37 23 Vodafone(freq) 58 37 27 25 2 1 Xf 4466 2331 1458 1150 74 23 9502Airtel 40 34 53 20 3 0 Xf 3080 2142 2862 920 111 0 9115Aircel 14 20 22 53 37 4 Xf 1078 1260 1188 2438 1369 92 7425Tata Docomo 27 35 27 17 30 14 Xf 2079 2205 1458 782 1110 322 7956Uninor 7 18 14 27 55 29 Xf 539 1134 756 1242 2035 667 6373Videocon 4 6 7 8 23 102 Xf 308 378 378 368 851 2346 4629
TABLE 4.22.1
Rank Operators1 Vodafone2 Airtel3 Tata Docomo4 Aircel5 Uninor6 Videocon
From the above table it can be interpreted that Vodafone comes in the first rank in
terms of the availability of POP materials in the shop for the visibility. It is followed by
Airtel with the second rank and Tata Docomo with the third rank. Aircel, Uninor and
Videocon take fourth, fifth and sixth positions respectively.
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FINDINGS AND RECOMMENDATIONS
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5.1 FINDINGS
The findings of the project titled ‘A Study on the Visibility of Vodafone in the
Retail Outlets of Coimbatore Region’ are given below.
Profile : Out of 150 outlets visited 91% were Activation Outlets
On an average 34 activations are done in a retail outlet.
Almost in all shops Airtel, Vodafone, Aircel and Tata Docomo products are sold.
95.3% of the shopkeepers allow the operators to stick the posters.
Only 26 % of shops have Vodafone signage boards.
57% of shops are not using Vodafone signage boards because they uses their own signage
boards, 20% of shops don’t have space to keep signage boards and 15% of the shops uses
competitor’s signage boards.
93.3% of shopkeepers are satisfied with the posters provided by Vodafone for its
promotion.
82 % of shopkeepers agreed that the Vodafone DSE’s provide posters at the right time.
All shopkeepers told that DSE’s convey the schemes only by using the oral
communication.
99.3% of shopkeepers are satisfied with the services of DSE.
More than 70% of shopkeepers observed that Vodafone DSE’s come to stick posters only
once in two weeks and 14% of shopkeepers observed that Vodafone DSE’s stick posters
only once in three weeks and a very few shop. Only a very few shopkeepers observed
that Vodafone DSE’s come to stick posters in once a week.
88.6% of signage boards are positioned facing the road and 9.1% of signage boards are
placed in the side of the shop.
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95.2% of skatings are positioned outside the shop
According to the survey conducted by me, I understood that Vodafone is not using third
party merchandising teams for its promotion activities in retail outlets.
Tata Docomo stands No.1 in rank interms of innovation of the posters which is followed
by Vodafone in No.2 followed by Airtel, Aircel, Uninor and Videocon.
Tata Docomo stands No.1 in rank interms of innovation of the posters which is followed
by Vodafone in No.2 followed by Airtel, Aircel, Uninor and Videocon respectively.
Vodafone has a Visibility Index of 23% which is closely followed by Airtel with a
Visibility Index of 22%.Then comes Tata Docomo which has a Visibility Index of 19%.
These operators are followed by Aircel, Uninor and Videocon respectively.
Tata Docomo stands No.1 in rank interms of innovation of the posters which is followed
by Vodafone in No.2 followed by Airtel, Aircel, Uninor and Videocon.
Vodafone stands No.1 in rank interms of the availability of posters in the retail outlets
which is followed by Airtel in No.2 which is followed by Tata Docomo, Aircel, Uninor
and Videocon respectively.
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5.2 RECOMMENDATIONS
As the using of merchandising teams by the various telecom operators are making a big
impact on the visibility of their products it could be recommended that if Vodafone also
uses separate merchandising teams for the promotional activities in the retail outlets it
can improve its Visibility Index as the merchandising teams will take care of the visibility
in the retail outlets.
For all the operators DSE’s are having only the work of selling the products to the retail
outlets. Only Vodafone DSE’s are doing the dual work of sticking posters and the selling
of the products. It could be suggested that if they are only having the job of selling the
Vodafone products they could concentrate more on their job of providing Vodafone
products to the retailers which inturn help to increase DSE’s satisfaction level.
It could be suggested that if Vodafone can concentrate a bit more on the fixing of
signages it can improve their visibility as it is one of the most important criteria by which
customers realize the availability of the Vodafone products.
By using the trade letters and pamphlets the schemes and offers can be easily
remembered than that given by the oral communication. It could be suggested that if
Vodafone could provide trade letters or pamphlets to convey the schemes to the retailers
then it would be useful for them to convey the schemes and offers correctly to the end
customers.
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CONCLUSION
6.1 CONCLUSIONS
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After the survey taken for the project titled ‘A Study on the Visibility of Vodafone in
the Retail Outlets of Coimbatore Region’ the following conclusions can be derived.
Vodafone has the highest Visibility Index in the Coimbatore Region which is very
closely followed by Airtel. Airtel will be a tough competitor for Vodafone since they
are following Vodafone so closely in terms of visibility.
Most of the shopkeepers are satisfied with the DSE’s of Vodafone. As satisfaction
with DSE plays an important role in the business of Vodafone products it could be
stated that Vodafone don’t need to worry in this regard.
Most of the shopkeepers are satisfied with the POP’s provided by Vodafone. As POPs
play an important role in the impulse purchase, they have to clearly portray the
schemes and offers of Vodafone. Since most of the shopkeepers are satisfied with the
POP’s provided by Vodafone, it could be concluded that it covers all the needed
information.
If Vodafone also can use the merchandising teams then it could find its place right at
the top pushing the competitors far behind. It’s because even without merchandising
teams, if Vodafone can take the pole position then with merchandising teams they can
push the competitors far behind as they will be tracking the visibility of Vodafone
more frequently than the DSEs.
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Bibliography
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BOOKS
Philip Kotler, “Marketing Management”, Prentice Hall of India Pvt Ltd, 12 th Edition,
2005
Harper.W.Boyd Jr, Ralph Westfall, Stanley.F.Stach, Richard.D.Irving “Marketing
Research”, Lakshman Chand Arya India, 1998
S.H.H.Kazmi, Sathish.K.Batra, “Advertising and Sales Promotion” , Excel Books, New
Delhi ,2002
Joe Cappo, “The Future of Advertising”, Tata McGraw Hill, 2003
William G. Zikmund, “Business Research Methods” South-Western, 11th Indian Reprint,
2009
C.Senthilnathan, “Below-The-Line Marketing, An Efficient Communication Tool”
Marketing Mastermind, July 2010, 32-35.
Journal of Marketing Management
Indica Audit Result, June 2010
International Journal of Consumer Studies
WEBSITES
www.vodafone.in
www.vodafone.com
http://en.wikipedia.org/wiki/Vodafone
www.investopedia.com
www.vjmediaworks.com/PoP/home.html
www.imagri.com.au/.../Advertisingdefinitions/AboveBelowtheLineAdvertising.aspx
www.marketingteacher.com/lesson-store/lesson-advertising.html
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ANNEXURES
8.1 PROFILE:
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TYPES OF OUTLETS
TABLE 8.1.1
Type of outlet No. of Shops PercentActivation Outlet 136 90.7EC Outlet 10 6.7Other Outlet 4 2.7Total 150 100.0
CHART 8.1.1
Activation Out-let
91%
EC Outlet7%
Other Outlet3%
Kind of Outlets
From the table it is stated that 91% of the retails shops were the activation outlets of
Vodafone. i.e. those shops were having the sim cards and also all kind of recharge coupons. Only
7% of the retail outlets were just easy outlets.
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8.2 AUDIT SHEET
AUDIT SHEET
1. POP’S available in the retail outlets
Signage Shop Painting Posters Skatings
Streamers Danglers Shelf Strips Other
1.1 If the shop has the signage, its position
Facing the road Side of the shop Other Places
1.2 If the retail outlet has shop painting where is it done
On the wall On the shutter Other places
1.3 If the skatings are there in the shop, where is it placed?
Inside Outside Other places
2. Do the shop has other operator’s signage
Yes No
2.1 If yes, Type of signage board provided by the competitor
Frontlit Backlit Flanges Others
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3. Number of posters available in the shop
OPERATOR HYGIENE POSTERS CAMPAIGN POSTERSAIRTELAIRCELTATA DOCOMOUNINORVODAFONEVIDEOCON
4. Ranking of the operators with respect to available POP’S in the shop
OPERATOR RANKINGVODAFONEAIRTELAIRCELTATA DOCOMOUNINORVIDEOCON
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8.3 QUESTIONNAIRE
QUESTIONNAIRE
1. What kind of outlet is the shop
Activation outlet EC outlet Other outlet
2. If it is an activation outlet, what is average number of activations done per month
<20 20-50 50-100 >100
3. Which operator’s products are sold by you
Airtel Aircel Docomo
Vodafone Uninor Reliance
4. Do you allow the operators to stick the posters
Yes No
5. Do you have Vodafone Signage board
Yes No
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5.1 If No, why
No space Vodofone hasn’t provided
Has shop’s own signage Using competitor’s signage
6. Ranking of the innovativeness in the promotional activities of the operators
OPERATOR RANKINGVODAFONEAIRTELAIRCELTATA DOCOMOUNINORVIDEOCON
7. Are you satisfied with the posters Vodafone has launched for the promotion
Yes No
8. Do the DSE provide you the posters at the right time
Yes No
9. Frequency of DSE coming to stick the posters
Once in a week Once in two weeks
Once in three weeks Once in a month
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10. Methodology used by the DSE to convey the schemes/offers
Oral communication Trade letter
11. Are you satisfied with the service of the DSE
Yes No
11.1 If No, why _______________________________________________
12. For which companies third party merchandising teams operate
Airtel Aircel Docomo
Vodafone Uninor Videocon
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