Vodafone Essar Is The Indian Subsidiary Of Vodafone Marketing Essay

Purpose: This is the survey of the selling scheme of a company and its public presentation in its respective sector, besides its public presentation compared to its rivals.

Approach: The information for this survey was obtained from assorted articles, web sites and charts. Besides through this undertaking, the operations of the company in a peculiar sector will be examined.

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Findingss: From this undertaking, it has been found out the Vodafone Essar is the 2nd largest telecom operator in footings of gross and 3rd largest in footings of endorsers in India.

Restrictions: The Vodafone group does n’t uncover the EBITDA from its operations in India.


Vodafone Essar is the Indian subordinate of Vodafone Group 67 % and Essar Group 33 % . Its CEO is Marten Pieters. It commenced its operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Initially around 1995 it was “ MAX TOUCH ” … so around 2000 it was ORANGE… .. In December 2006, Hutchison Essar re-launched the “ Hutch ” trade name nationally, consolidating its services under a individual individuality. After acquiring the necessary authorities blessings, the company was rebranded as Vodafone Essar. The selling trade name was officially changed to Vodafone on 20 September 2007.

The name Vodafone comes from Voicedatafone, chosen by the company to “ reflect the proviso of voice and informations services over nomadic phones. Vodafone ‘s logo is a citation grade within a circle which depicts start of a conversation. Vodafone Essar is the 2nd largest nomadic phone operator in footings of gross behind Bharti Airtel, and 3rd largest in footings of clients. ( Wikipedia1 )


Geographic market

India is divided into 23 telecom circles which were classified as Metros, A, B or C depending upon the gross potency. Vodafone Essar operates in all the 23 telecom circles. It is headquartered at Mumbai, Maharashtra in India. Each circle has a caput office and many subdivision and zonary offices. ( Vodafone1 )

Their concern

PEST-G analysis

– Political

Maintained house relationship with TRAI to licence operations of its assorted services and characteristics.

Announced that it has successfully secured 3G spectrum in 9 circles

Obtained licence to implement Mobile Number Portability ( MNP ) .

– Economical

Indian telecom sector is straight lending more than 1.5 % GDP to the growing of economic system.

Mobile telecommunications system in India is the 2nd largest in the universe with a subscriber base of more than 650 million.

India has one of the cheapest cell phone rates in the universe.

The current Tele-density is over 58.17 %

India ‘s per capita income doubled in 7 old ages to Rs38,084 in 2008-2009. ( TRAI )

– Sociable

Due to the lifting popularity of Facebook, Vodafone tried to prosecute users through it.

Urbanization taking to a rise in the demand for smart-phones particularly amongst the young person and enterprising adult females of today.

Demand for VAS and broadband is increasing among the urban young person.

– Technological

Launched a new app shop to supply easy entree to information, public-service corporations and amusement.

Secured a 3G spectrum in 9 circles

Presently, GSM iPhone is available in India merely through Vodafone and Bharti Airtel.

Launched universe ‘s cheapest Mobile phones priced at $ 15 in India

– Environmental

Celebrated Environment Day with Paint Your Planet Competition to distribute consciousness about the environment.

Launched a solar powered nomadic phone in India to get the better of the job of fickle electricity supply.

Introduced electronically generated measures for on-line payment and dealing thereby salvaging paper. ( Vodafone 2 )

Started E-Rick, India ‘s first battery operated jinrikisha in Delhi.

THE Competition


( Wikipedia3 )

Gross saless Trend

( Medianama )

Market portion

Market portion in footings of endorser base ( Wikipedia4 )

Market portion in footings of gross ( Medianama2 )

THE Company

Gross saless tendency

Business sector

Undertaking focal point

This undertaking is focused on the advanced selling schemes developed by Vodafone which have proved to be highly successful in the Indian market as it ‘s able to pull clients with its image of quality and a strong ocular individuality.

SWOT analysis

Degree centigrades: UsersPhulwaniDocumentsswot1.png

THE COMPANY ‘S Selling Scheme

Cleavage dividers a general population on the footing of

1 ) Geography

– market is divided in 23 telecom circles

– subdivided States into class Metro, A, B and C

2 ) Location

– Rural

– Urban

3 ) Occupation

– Students

– Home-maker

– Corporate people

4 ) Behavioral Patterns

– Benefits sought

– Use rate

– Occasionss which stimulate purchases


Vodafone has adopted a multi-segment attack to aim all the sections in the market. An array of merchandises and services are offered to provide to the demands of assorted sorts of clients.

Low cost French telephones, solar-powered cell-phones and postpaid card of Indian rupee4 to spread out entree to mobile phones in rural countries.

Vodafone concern solutions for corporate people.

World and Gulf Calling Cards for households of those people who work abroad.

Entertainment updates and beauty-tips for home-makers.

Devotional services for the senior citizens


Initially Vodafone used a pug for its ad run. The motto used was ‘happy to assist ‘ .

Subsequently, basic and VAS were advertised through Zoozoos. This new run positioned the company as an pioneer by presenting a series of services which were alone in the market.

Porter ‘s generic scheme

The Indian telecom market is undergoing an intense monetary value war and with the entry of new and competent telecom operators, A each company is establishing aggressive offers attract new endorsers and lower duties to retain current users. Due to this, Vodafone is concentrating on cost-cutting and offering the cheapest possible rates with good web quality and client service.

But with every operator presenting a new price reduction strategy each month, Mobile proprietors started looking for programs which were the cheapest for their peculiar demand. VAS were non really popular and Mobiles were meant for basic services merely. Vodafone changed the construct. It started presenting more and more VAS. These services were alone in the market and gave Vodafone a competitory border over its rivals.

Therefore, Vodafone has combined cost cutting steps with distinction. It ‘s been successful in utilizing a Combination Strategy to increase its market portion.

Growth scheme

Vodafone is taking at spread outing its distribution and web coverage and through a “ client focused ” attack. Its scheme is to convey ultra-low-cost French telephones and wireless connectivity in the huge backwoods and “ being a good corporate citizen ” It will besides look to spread out into a figure of new growing sections such as fiscal Mobile services because the clients were now prehending the benefits of ‘fast, dependable nomadic informations webs ‘ by utilizing smart-phones and other nomadic informations devices such as tablets.

Rural nomadic incursion in India is merely 19 % , with the rural section accounting for 40 % -45 % of monthly net add-ons. To perforate this market, Vodafone ‘s scheme is to cut down upfront costs for ownership of nomadic phones in cost-sensitive rural markets.

The company is accomplishing its aims by updating and developing its scope of phones and services and working graduated table to heighten efficiency which will assist in presenting cost benefits to maintain

Selling Mix


1 ) Vodafone Prepaid and Postpaid Cell-phone connexion

2 ) Vodafone PCO

3 ) Vodafone Handy-phone

4 ) World and Gulf naming cards

5 ) 3G USB stick

6 ) Magic Box French telephones

7 ) BlackBerry from Vodafone

8 ) iPhone 3G and 3GS


1 ) Call Services – Voicemail, Call-Conferencing

2 ) Entertainment – Bollywood, TV-Programs

3 ) News & A ; Updates – Occupation Opportunities

4 ) Devotional – Gita, Quran

5 ) Astrology – Tarot card, Feng-Shui

6 ) Sports – Cricket, Football

7 ) Finance – Broker recommendation, Economy

8 ) Dial-In Services – Commentary, Reding

9 ) Travel – Train and Flight engagements

10 ) Mail and Messaging – Voice SMS, Group Messaging

11 ) Tunes & A ; downloads – Callertunes, Videotones

12 ) Miscellaneous – Dictionary ( Vodafone3 )

Topographic point

1 ) Vodafone operates in all the 23 circles in India.

2 ) Its merchandises and services are available straight, via Vodafone shops and state specific Vodafone websites, and indirectly via 3rd party service suppliers, independent traders, distributers and retail merchants, to clients in bulk of markets under the Vodafone trade name.

3 ) Vodafone has a range of about 1.2 million mercantile establishments across all 23 Telecom Circles which enables to function clients in the remotest corners of India


1 ) Television, wireless, cyberspace, hoardings, sponsored events, newspapers and magazines have been the chief mediums of advertizement.

2 ) Zoozoo ( the midget egg-headed animal ) advertizements launched during Indian Premier League 2 ( IPL-2 ) were immediately able to win consumers Black Marias ‘ .

3 ) Good public dealingss are maintained by directing imperativeness releases to national newspapers and magazines explicating new merchandises and services.

Monetary value

1 ) The services are tailored to function different types of clients from childs to concern executives, from the urban to the rural population, etc. For illustration – Vodafone introduced postpaid card of Indian rupee4 heightening affordability and speed uping tele-density in India.

2 ) A assortment of programs based on clients ‘ use and naming forms are offered. For illustration – Vodafone launched universe ‘s cheapest Mobile phone in India priced at $ 15.

3 ) Vodafone launched pay/second call rate which gives the clients greater convenience and good value for money.


Vodafone employs about 9000 people in India ( March 2009 ) . The employees are encouraged to work in The Vodafone Way which focuses on

1 ) Speed -bringing merchandises and services to clients rapidly

2 ) Simplicity – doing everything simpler for clients

3 ) Trust – moving with honestness to derive clients ‘ assurance ( Vodafone 4 )


1 ) The ‘Happy to assist ‘ client attention service can be availed easy through Vodafone ‘s huge distribution range.

2 ) 111 can be dialed anytime from any Vodafone Mobile phone for ailments and questions.

Vodafone besides encourages its clients to post their questions on its Twitter page. ( Vodafone 5 )

Physical Evidence


Vodafone corporate office in Mumbai, Maharashtra


Television Advertising – Vodafone chose the IPL-2 as a platform to establish their Zoozoo advertizements which captured attending of about two billion. Vodafone emerged as the most noticed patron in the IPL.

Internet Advertising – Vodafone promoted Zoozoos on social-networking sites like Facebook and Twitter through fan nines. It besides has an IPL microsite for quizzes and competitions where one can cognize the sort of Zoozoo he or she is and download wallpapers and screensavers.

Billboard Advertising – Vodafone hoardings can be spotted often but one of them showcased Vodafone in a alone manner. The uni-pole which was placed in Bhubaneshwar had two different expressions – one during the twenty-four hours and the other at dark. ( Enkon )

Vodafone besides used newspapers and magazines as a medium of advertizements.

Publicity – Vodafone launched promotional campaign/contest for its endorsers to win a opportunity to sit with Lewis Hamilton in Chennai. It besides sponsored controversial shows like BigBoss and MTV Splitsvilla to pull a higher figure of consumers.

Gross saless Promotion – Particular offers were introduced on Diwali, Holi, etc.



Market Share

The VAS services are placed as the hard currency cattles because they are alone and bring forthing money continuously for the company.

Naming and SMS services are the stars with high market portion because of trade name loyal clients and highly low monetary values.

Internet and GPRS services are topographic points in the job kid quarter-circle because the market is turning but Vodafone ‘s grosss are non.

Vodafone ‘s MMS service is really unpopular amongst the multitudes.


Evaluation of Company ‘s Current Position

In India, Vodafone is the 2nd largest mobile-phone operator in footings of gross and 3rd largest in footings of endorsers. Despite strong competition and the recession, it has over 115.5million endorsers. Vodafone ‘s substructure joint venture with Airtel and Idea – Indus Towers – has steadily increased its operations. The independent tower company provides inactive web substructure to all operators. Therefore, Vodafone has emerged one of the top participants in the telecommunication sector.

Evidence of Company ‘s Success

Get downing with about 28 million endorsers across 16 circles in May 2007, Vodafone crossed 100 million clients in April and its footmark has extended to all the 23 circles in India. This journey is a testimony of Vodafone ‘s success in a extremely competitory and monetary value sensitive market. Around 60 % of the Company ‘s client add-ons now come from interior countries. Vodafone, with this accomplishment besides earned the award of being the fifth Mobile operator in the universe to hold over 100 million clients in a individual state. Vodafone ‘s gross increased by 26.4 % in Q2 2010 compared to same one-fourth last twelvemonth and 13.2 % compared to the preceding one-fourth, beef uping its place as India ‘s 2nd largest operator in footings of gross.

Prospects for future growing

Operating conditions are expected to be disputing in India due to hyper-competition and intense monetary value wars. Market incursion is expected to increase in the rural countries to go on to ensue in overall strong growing. Revenue outlooks for the twelvemonth are high as the market is turning at a rapid gait. Vodafone will seek to increase its market portion in Internet services and retain its place of the 2nd largest telecom operator in India


Vodafone Essar is one of the topmost companies in India and is good known for the best quality of merchandises and services offered to its clients. It has delivered growing by concentrating on engineering, merchandise image, second-to-none service and gross revenues back-up. Vodafone is non taking simply to poach well-served urban clients, but besides doing a deliberate push to make into India ‘s rural markets where nomadic incursion has remained low. It has covered the full Indian state with its web. Vodafone emerged as the most admired seller in India in a study conducted by IMRB and won several awards for its Zoozoo run. Zoozoo merchandiseA was besides launched to encash on the its popularity across India. Therefore, Vodafone ‘s well planned schemes have helped it to prolong and thrive in the market.


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Zoozoo Quiz

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Particular offers for Independence Day

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Zoozoo ware

Vodafone hoarding in Bhubaneshwar with different expressions in the forenoon and dark

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