Professional Documents
Culture Documents
SERVICE MARKETING
SUBMITTED TO: PROF A SRIKANTH
Submitted by: Aditi Maheshwari 09BSHYD0033
Anshuman Goel 09BSHYD0139
Mudit Mathur 09BSHYD1025
Mansi 09BSHYD0433
Neha Gupta 09BSHYD0498
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Table of Contents
1. OBJECTIVES ........................................................................................................................................... 3
2. INTRODUCTION ..................................................................................................................................... 4
3. SITUATIONAL ANALYSIS ........................................................................................................................ 5
4. MARKET OPPORTUNITY ........................................................................................................................ 6
5. BRAND ELEMENTS ................................................................................................................................. 7
6. CRM ....................................................................................................................................................... 8
7. POSITIONING ......................................................................................................................................... 9
8. SEGMENTATION .................................................................................................................................. 10
8.1 BCG MATRIX .......................................................................................................................................... 10
8.2 ANSOFF’s PRODUCT‐MARKET EXPANSION GRID .................................................................................. 11
9. MARKETING MIX ‐ 7Ps FOR VODAFONE ............................................................................................. 12
9.1 PRODUCT ............................................................................................................................................... 12
9.2 PRICE ..................................................................................................................................................... 13
9.3 PLACE .................................................................................................................................................... 13
9.4 PROMOTIONS ........................................................................................................................................ 14
9.5 PEOPLE .................................................................................................................................................. 14
9.6 PROCESSES ............................................................................................................................................ 15
9.7 PHYSICAL EVIDENCE ........................................................................................................................ 15
10. CONCLUSION ................................................................................................................................... 16
11. REFERENCES .................................................................................................................................... 17
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1. OBJECTIVES
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2. INTRODUCTION
Vodafone essar was formed out of an acquisition deal of Vodafone and hutch essar,
and hence Hutch was successfully rebranded as Vodafone. This was an easy way to
enter into India as hutch essar already had a strong brand image in Indian telecom
market. As the rebranding campaign begun they started by changing the taglines
communicating the change from hutch to Vodafone. The taglines were ‘change is
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good’, “hutch is now Vodafone”. They changed from ‘where u go our network follows’
to ‘Make The most of Now’ They also carried out a massive advertising campaign to
rebrand themselves, and the main feature of their campaign was the Zoo Zoo
characters that were used to promote the value added services by Vodafone and
became famous as soon as they were launched.
3. SITUATIONAL ANALYSIS
Customers
Competitors
Vodafone’s market share is 23.20%and it faces stiff competition from several players
in the market like Airtel, Reliance, BSNL, Idea, Tata Indicom, Virgin Mobile and
new entrants like DOCOMO. Therefore, the level of competition that Vodafone has
to face is high.
Company
Context
Tele-density in India has reached nearly 51% and the industry is growing at a
CAGR with 22%. The intense competition has led the players to target lower
segments and entry into rural areas. The rural mobile penetration is just 19%
compared to 103 percent in urban India (around 20% is estimated to have dual Sim
cards).
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4. MARKET OPPORTUNITY
The Indian telecom market is the fastest growing market in the world and is
expected to soon takeover US as the second largest market, much of this growth is
to be driven by the lower middle income group and the rural population.
With the penetration of telecom in the urban markets, the urban middle class
markets have more or less saturated. The next phase of growth is thereby
likely to be driven by the lower income group which form the Bottom of
the Pyramid. The service providers will have to revamp their business models
by which they could make good profits even at low ARPUs. For e.g.: One
paisa per second billing. Vodafone has already taken a step forward towards
targeting these consumers who are at the bottom of the pyramid with their bonus
cards and advertisements. The key success factor in the telecom sector would be to
concentrate on providing the most competitive tariff rates, good quality of service
and constant innovations.
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5. BRAND ELEMENTS
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6. CRM
Total Customer Benefit is the perceived monetary value of the bundle of economic,
functional and psychological benefits customers expect from a given market offering
because of the products, services, personnel and image involved. In the case of
Vodafone, we can analyze the Total Customer Benefits as follows:
Product Benefits
A variety of products is offered including several variations in the prepaid and post-
paid divisions. In addition to the existing products, Vodafone provides a number of
top-up plans each of which can be selected on the basis of what is the customer’s
requirement. Apart from all of this, Vodafone now has the iPhone 3G and the Magic
Box Handset as product offerings.
Services Benefits
Vodafone World which is the GPRS Service, Vodafone Live which guarantees non-
stop streaming action, ‘Chhota Recharge’ which is a small value recharge card
beginning at Rs.10, are some of the value added services that Vodafone provides.
Vodafone provides a series of other services like Tunes & Downloads, News &
Updates, Call Management, Astrology, Entertainment, Sports, Finance,
Travel, Devotional, Mail, Messaging, and Detailed information on Billing.
Personnel Benefits
The staff of Vodafone is trained with the mindset of “Happy to help you” which is
the motto of Vodafone. Vodafone has call centers with trained personnel who take a
customer’s request, process it, service the request and then follow up to find out if
eventually the customer’s needs have been met satisfactorily.
Image Benefits
Vodafone has always been positioned as a brand that provides a wide range of
services and caters to all sections of the society. However, Vodafone seems to have
hit it off well with primarily the youth and the younger age groups.
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If we were to analyze the Total Customer Costs in a similar manner, we would find
Monetary Costs
Vodafone has several plans to suit everyone’s pockets and so the cost associated
with a Vodafone connection is only what the client feels is feasible for him or her.
Time Costs
Customer’s do not have to spend too much of time trying to pay their bills or get
their requests serviced because of the many stores and online payment facility
Energy Costs
Because clients do not have to travel to meet their needs too often, the energy costs
associated with Vodafone are also considerably low.
Psychological Costs
The customers of Vodafone do not need to spend any large amount on acquisition,
maintenance, usage and disposal of the connection. Therefore, the elements of the
psychological costs do not play too much of a factor while evaluating the total costs
that a customer incurs in availing of Vodafone’s services.
7. POSITIONING
After the great success in the ZooZoo ads, which were used to communicate to
audiences with high levels of literacy, Vodafone is now popularising the brand by an
animated parrot. This advertisement is to commercialize their Rs 4 Bonus card
offered to pre-paid consumers. The positioning of this as is as such as to as address
a different target group i.e. lower income groups/masses. Vodafone is trying to reach
the mass consumers by releasing shorter and Tiny Packs and Using Animated
Characters like Parrot Setji. The proposition is very strong and interesting. There
seems to be an attempt to connect with the price-conscious audience - therefore the
'common man' kind of talk. A similar ad was released by the company ‘Vodafone
Blackberry Ads’ to target the urban growing youth who are price conscious but at
the same time want Value added services.
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8. SEGMENTATION
8.1 BCG MATRIX
Business
MAGIC HANDBOXES
PREPAID SERVICES
Growth
Rate
CASH COWS DOGS
LOW
POSTPAID SERVICES
HIGH LOW
Stars
Cash cows
While the Wireless Telecom Sector may show an industry trend of 15% revenue
share in the Post-paid segment, Vodafone Postpaid Services is a Cashcow by
contributing a large proportion to the company’s revenues
Question Marks
The Magic Handboxes offered by Vodafone would fall under this particular
category as the mobile Handset market in India is growing at a pace of about 9%
per annum and due to intense rivalry and many specialised players Vodafone is
not able to perform well in this particular area of interest.
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8.2 ANSOFF’s PRODUCTMARKET EXPANSION GRID
• Market Development
With the booming rural market in India, Vodafone should adopt a very proactive
approach in reaching out to the new markets with its current flagship products
viz. the prepaid and post-paid plans. With Urban markets literally getting
saturated and also with increased competition Vodafone should concentrate on the
rural segment and the lower income group. Hence this would be a case of market
development in this particular regard.
• Product Development
With respect to the Magic Hand boxes and Solar Powered Mobile phone offerings
of Vodafone, it would be a case of Product development strategy as it constantly
comes out with innovative new designs to satisfy the changing needs of its
customers. As of now Vodafone is concentrating its efforts only on the urban areas
with respect to Magic Hand boxes and although it has introduced its solar
powered phones particularly for the rural segment there have been lagging behind
in promotions for the same.
Market Product
Current Markets Penetration Development
S Strategy
New markets
Market Diversification
Development
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9. MARKETING MIX 7Ps FOR VODAFONE
9.1 PRODUCT
A product with many different features provides customers with opportunities to
chat, play games, send and receive pictures, change ring tones, receive information
about travel and sporting events, obtain billing information – and soon view video
clips and send video messages
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9.2 PRICE
9.3 PLACE
• Vodafone promotes its offerings through a host of over 4000001 stores located
across all the 23 telecom circles in the country. Stores have special offers, and
various point of sale posters in order to attract its customers.
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9.4 PROMOTIONS
• Unlike the other telecom majors which rely heavily on Film stars and
cricketers to promote their brands, Vodafone has focused on advertising
campaigns like the Pug and Zoo Zoos and now the Parrot to have connect
with the people and also as a part of its strategy to be cost effective on the ad
production front.
• ABOVE THE LINE: 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.
• BELOW THE LINE: 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.
9.5 PEOPLE
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9.6 PROCESSES
9.7 PHYSICAL EVIDENCE
Physical Evidence is the element which allows the consumer again to make
judgments on the organization.
• The most important physical evidence of for the Vodafone is its existing
customer base. The Vodafone Essar subscriber bases in the cities of India are:
• Existence of the customer care centers across the country, Vodafone mini
stores that are small in size but big in service, Vodafone stores; Vodafone
outlets are all a part of the physical evidence that facilitate the customer
judge the service.
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10. CONCLUSION
Vodafone as seen in the report has been a successful service provider and has been
able to make its mark by a large consumer base despite a tough competition in the
industry. The rebranding exercise was a huge success and the main credit goes to
the Zoo Zoo ads which were mainly used to promote the value added services of
Vodafone, these value added services now form a main part of the telecom industry.
However, Vodafone has till now achieved a higher growth share in the urban areas
as compared to the rural areas where it needs to focus on by implementing different
strategies that would ease the usage of their services for the rural customers as
well.
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11. REFERENCES
• http://www.vodafone.in/
• http://www.kpmg.com/Global/en/WhatWeDo/Advisory/Performance-
Technology/Business-Performance-Services/Pages/Vodafone-case-study.aspx
• http://www.bharatbook.com/Market-Research-Reports/Asia-Pacific-Mobile-
Handset-Market-Analysis.html
• Cellular Operators Association of India, October, 2010
• http://www.thetimes100.co.uk/case-study--sponsorship-marketing-mix--41-
131-3.php
• http://www.icmrindia.org/casestudies/catalogue/marketing/MKTG220.htm
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