1. TELECOM SECTOR
A STUDY ON CUSTOMER SATISFACTION OF
VODAFONE IN South Delhi
22010-2011
FIIB| NEW DELHI

2. PANKAJ CHAUHAN GROUP 6 BRM PROJECT
PREFACE
We all know how the competition in every sector is transforming the business environment. In
this era of competition, the main driving force is to get fair and square information about the
business. It is well said that "You can do what you have to do, and sometimes you can do it even
better than you think you can provided that you have right information with you."
With the same spirit, I undertake the writing of this report of the mini project, because it
is fact, that every worthwhile accomplishment, big or little, has its stages of drudgery and
triumph; a beginning, a struggle and a victory.
Being a management student, we must know competition is not only rife but growing more
intense every year. Moreover, every firm wants to rule its corresponding market and hold the top
position. Competition includes all the actual and potential rival offerings and substitutes that a
buyer might consider. So, it becomes very essential to know the competitors product/services in
all the sense.
So, the mini project titled “A Study On Customer Satisfaction of VODAFONE In
Ranchi” is aimed at knowing the competitors product and strategies with respect to different
parameters like specification, features, price, promotional activities, after sales service,
distribution channel etc. And, it is quite obvious that this comparative overview about the
product and market survey will help the company in many ways taking into consideration its
important factors of success.
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INDEX
S No. Chapter Name Page No.
1. Introduction 3-6
2. Objectives 7
3. Research Methodology 8-10
4. Company Profile 11
5. Data Analysis & Interpretation 12-25
6. Conclusion 26
7. Bibliography 27
8. Appendix 28-31
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INDUSTRY OVERVIEW
1.1 Introduction
The Indian telecommunications industry is one of the fastest growing in the world.
Government policies and regulatory framework implemented by Telecom Regulatory Authority
of India (TRAI) have provided conducive environment for service providers. This has made
the sector more competitive, while enhancing the accessibility of telecommunication services
at affordable tariffs to the consumers. In the last two decades, the Indian Telecom Sector and
mobile telephony in particular has caught the imagination of India by revolutionizing the way
we communicate, share information; and through its staggering growth helped millions stay
connected. This growth, however, has and continues to be at the cost of the Climate, powered
by an unsustainable and inefficient model of energy generation and usage. Simultaneously, this
growth has also come at significant and growing loss to the state exchequer, raising
fundamental questions on the future business and operation model of the Telecom sector.
The telecom industry has witnessed significant growth in subscriber base over the last decade,
with increasing network coverage and a competition-induced decline in tariffs acting as
catalysts for the growth in subscriber base. The growth story and the potential have also served
to attract newer players in the industry, with the result that the intensity of competition has
kept increasing. The sector expected to witness up to US$ 56.3 billion investments and the
market will cross the US$ 101 billion mark in five years.
1.2 Current Scenario
The Indian telecom sector has witnessed tremendous growth over the past decade. Today, the
Indian telecom network is the second largest in the world after China. A liberal policy regime
and involvement of the private sector have played an important role in transforming this
sector. The total number of telephones has increased from 429.73 million on 31 March 2009 to
926.55 million on 31December 2011. The telecom industry has witnessed significant growth in
subscriber base over the last decade, with increasing network coverage and a competition-
induced decline in tariffs acting as catalysts for the growth in subscriber base. The growth story
and the potential have also served to attract newer players in the industry, with the result that
the intensity of competition has kept increasing. Also, broadband segment has seen significant
growth with total internet subscribers reaching 20.99 million in September 2011, which
includes 13.30 broadband subscribers. Liberalization of the sector has not only led to rapid
growth but also helped a great deal towards maximization of consumer benefits, evident from a
huge fall in tariffs. Telecom sector has witnessed a continuous rising trend in the total number
of telephone subscribers and hence the teledensity. In simple terms, ‘Teledensity’ is the
number of landline telephones in use for every 100 individuals living within an area. A
teledensity greater than 100 means there are more telephones than people. Third-world
countries may have a teledensity of less than 10. Teledensity is also an important indicator of
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5. PANKAJ CHAUHAN GROUP 6 BRM PROJECT
telecom penetration in the country. Teledensity has increased from18.2percent in March
2007to 76.86 per cent in December 2011.Teledensity varies across circles and there is
significant urban-rural divide. While urban teledensity reached 167.4 percent at the end of
December 2011 and rural teledensity was only 37.5 per cent. At circle levels also, while some
circles such as Delhi
(235.6 per cent), Mumbai (188.95 per cent), Kolkata (168.45 per cent), Chennai (170.18per
cent), and Himachal Pradesh (118.63per cent) have high teledensity, in some circles such as
Bihar (47.17 per cent) and Assam (45.85 percent), it is very low. The steps that been undertaken
to improve teledensity , particularly in rural areas .The wireless segment broadly classified into
GSM and CDMA segments based on the underlying technology. The GSM segment holds the
majority of subscribers with785.97 million at the end of Dec 2011. The remaining 107.88 million
subscribers use CDMA based services. While the GSM segment is seeing a consistent increase in
the number of subscribers, the CDMA segment is seeing a reduction. The CDMA wireless
segment saw a decrease from 112.42 million at end of Sept 2011 to107.88 million at the end of
Dec 2011. In contrast the figures for GSM are 761.20million and 785.97 million for Sept and Dec
2011 respectively.
(Both figures are from Listed website, August 2012)
The overall wireless market and consequently the GSM market is led by Bharti Airtel which held
19.62% at the end of Feb 2012. It is followed by Reliance Communications, which holds16.68%
of the market and also the leader in the CDMA segment. In the GSM segment ,Vodafone and
Idea closely follow Bharti Airtel while Tata and Sistema follow Reliance Communications in the
CDMA segment.
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2. GROWTH IN TELECOM
Growth Drivers
Key factors, which will fuel the growth of the sector include increased access to services owing
to launch of newer telecom technologies like 3G and BWA, better devices, changing consumer
behavior and the emergence of cloud technologies. A majority of the investments will go into
the capital expenditure for setting up newer networks like 3G and developing the backhaul,
among other things.
Subscriber Base
The mobile subscriber base in India is estimated rise by 9 per cent to 696 million connections
this year, according to technology researcher Gartner. The mobile service penetration in the
country is currently at 51 per cent and is expected to grow to 72 per cent by 2016.
Mobile Value Added Services (MVAS)
India's current MVAS industry has an estimated size of US$ 2.7 billion. The industry derives its
revenues majorly from the top five to six products such as game based applications, music
downloads, etc, which continue to form close to 80 per cent of VAS revenues. The Indian
MVAS industry estimated to grow to US$ 10.8 billion by 2015, with the next wave of growth in
subscriptions expected to come from semi-urban and rural areas.
Mobile Number Portability (MNP)
Mobile Number Portability requests increased from 41.88 million subscribers at the end of
March 2012 to 45.89 million at the end of April 2012. In the month of April 2012 alone, 4.01
million requests have been made for MNP.
Handsets
The mobile handset market's revenues in India will grow from US$ 5.7 billion in 2010 to US$
7.8 billion in 2016, according to the study. India is the second largest mobile handset market in
the world and is set to become an even larger market with unit shipment of 208.4 million in
2016 at a CAGR of 11.8 per cent from 2010 to 2016.
The Indian handset market witnessed a 14.1 per cent growth in 2011 to touch a total volume of
182 million handsets. The market continues to be dominated by Nokia with a share of 37.2 per
cent, followed by Samsung with 14.9 per cent, G'Five with 7.5 per cent, and Micromax with 5.8
per cent.
Domestic and Chinese handset makers such as Micromax, G'Five , Karbonn, Spice, Maxx and
Lava, have garnered a strong presence in the Indian market due to their feature-rich, localized
products and low price points.
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3. MARKET PLAYERS
Key Players
With new players coming in, the intensity of competition in the industry has increased,
especially over the last four years. The market share of telecom operators of the telecom
companies reflects the fragmented nature of the industry, with as many as 15 players. As of
April 30, 2012, Bharti telecom led the market with 19.94 per cent share, Reliance (16.58 per
cent), Vodafone (16.41 percent), Idea (12.4 per cent), BSNL (10.51 per cent), Tata (8.77 per
cent), Aircel (6.93 per cent), with the remaining share being held by other smaller operators.
Telecom Operator wise Market Share
Bharti is far ahead with close 20% market share in India, Reliance (16.58%) and Vodafone
(16.41) are having a close battle. Reliance currently has 154 million subscribers as compared to
152.5 million of Vodafone. Uninor, who is one of the late entrants in Indian Telecom market
now has over 45 million subscribers and accounts for close to 5 percent of Indian mobile
market share.
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Objective of Study:
Following are the main objective to study about the customer satisfaction on Vodafone.
 To study telecommunication industry.
 To study customer satisfaction of Vodafone.
 To study various Marketing activities provided by Vodafone.
 To study the various services provided by Vodafone.
 To know the expectation of Vodafone Customers.
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RESEARCH METHODOLOGY
The various means and methods have been deployed for effective collection of the desired data-
has been elucidated in this section.
Research methodology.
Research methodology means the method carried out to study the problem. It shows the
type of sample design used, its size, and the procedure used to draw a sample, it also focuses on
method used to collect data, process of filtering and analyzing the data. Marketing search tools
were made use of Questionnaire direct structured method.
Market Research
The purpose of market research is to provide information, which will aid management decision-making.
Marketing managers are commissioned to undertake marketing research and formal studies on specific
problems and opportunities. They may request a marketing survey, a product preference test, a sales
forecast for a region or a research advertising effectiveness. It was felt that to obtain more information
intense study with practices was required for understanding the subject. The basic aim of the study is to
analyze the market share of VODAFONE in service market with its competitor.
Research Design
Research design is simply the framework or plan for a study, which is used as a guide in collecting
and analyzing the data. It is the blue print that is followed in completing a study. As objective of the
research is descriptive in form, the research is descriptive in form of the research design must be made
accordingly.
 Formulating objective of the study
 Designing the method of data collection
 Selection the sample size
 Collection of data analysis and finding
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 Conclusion and inferences
 Limitations
 Suggestions and recommendation.
Sampling Area:
The researcher’s area for survey was:
 FIIB campus, New Delhi
 Vodafone Store, South zone
 Data Sources –
DATA COLLCTION
PRIMARY DATA SECONDARY DATA
 Personal Interview  Magazines
 Questionnaire  Internet
Both primary and secondary data were used to collect information regarding the project. These
data were collected directly through customers & secondary research work involved collection of data
through internet and magazines.
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Primary sources of data
These data were collected on the basis of personal interaction with the customers &
retailers by knowing their preferences & basic requirements.
Secondary source of data
The profile of Vodafone & other valuable information were gathered from internets &
magazines.
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Company Profile
Introduction:
Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is the
largest mobile telecommunications network company in the world by turnover and has a market
value of about £75 billion (August 2008). Vodafone currently has operations in 25 countries and
partner networks in a further 42 countries. The name Vodafone comes from Voice data fone,
chosen by the company to "reflect the provision of voice and data services over mobile
phones."As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5
continents. On this measure, it is the second largest mobile telecom group in the world behind
China Mobile.In the United States, Vodafone owns 45% of Verizon Wireless. (Vodafone current
scenario, 2010-2011)
Mission:
Vodafone is primarily a user of technology rather than a developer of it, and this fact is reflected
in the emphasis of our work program on enabling new applications of mobile communications,
using new technology for new services, research for improving operational efficiency and quality
of our networks, and providing technology vision and leadership that can contribute directly to
business decisions. (vodafone Home, 2010)
Vision:
Our Vision is to be the world’s mobile communication leader – enriching customers’ lives,
helping individuals, businesses and Communities be more connected in a mobile world.
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DATA REPRESENTATION
Q1) Do you have a mobile phone?
.
Suggestions Yes No
No. of respondents 50 0
Sales
Yes No
0%
100%
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Q2) Are you aware about telecommunications services
Suggestions Yes No
No. of respondents 50 0
Column1
YES NO
100%
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 Which operator’s service do you use?
Operator’s service name No. of respondents
Vodafone 35
Airtel 7
Idea 3
Reliance 5
Vodafone Airtel Idea Reliance
14%
6%
10%
70%
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Q3) Are you aware about Vodafone?
Suggestions Yes No
No. of respondents 50 0
Column1
YES NO
100%
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Q4) From which source you came to know about Vodafone?
Sources No. of respondents
Advertisements 40
Hoardings 2
Newspapers 5
Mouth Publicity 3
Advertisemnet Hoardings Newspaper Mouth publicity
4%
10%
6%
80%
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Q5) since how long you are using Vodafone Services?
Time period No. of respondents
Less than 1 month 7
2-6 months 5
6-12 months 3
More than 1 year 20
Sales
< 1 month 2-6 month 6-12 month > 1 year
20%
14%
58%
8%
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Q6) which of the following services do you use of Vodafone?
Services No. of respondents
Pre-Paid 30
Post-paid 5
Sales
Pre-Paid Post-paid
15%
85%
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Q7) which services are more helpful to you while using Vodafone Services?
Services No. of respondents
Call Rates 5
SMS Rates 20
Network 7
Value Added Services 3
Sales
call rates sms rates network value add serv
9%
15%
20%
56%
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Q8) Do you call at customer care?
Suggestions Yes No
No. of respondents 35 0
Sales
Yes No
100%
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 If yes, how often you call at customer care?
Time Period No. of respondents
Daily 0
Once a week 20
Once a month 10
Occasionally 5
Sales
Daily Once a week once a month occasionally
14%
29% 57%
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Q9) For what reason you call at customer care?
Reasons No. of respondents
Value Added Services 5
Information regarding new schemes 15
Complaining 8
Other queries 7
Sales
VAS New scheme Complain Other Queries
20% 15%
22%
43%
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Q10) Rate the following on the basis of your satisfaction.
Services Excellent Very Good Fairly Good Average Poor
Network 20 10 5 0 0
SMS Rates 25 5 2 3 0
New schemes 15 10 5 5 0
and offers
Customer Care 27 3 0 5 0
Recharge 30 2 3 0 0
Outlets
Call Rates 6 12 17 0 0
Value Added 10 15 5 5 0
Services
100%
9 8
90% 15 15 15 15
5 5
80% 15 8
15 48 15
70% 28
Excellent
60%
28 Very good
50% 42
85 Fairly good
40% 77
71 34
30% Average
57
20% 42 Poor
28
10% 17
0%
Network Sms rates New Customer Recharge Call rates VAS
scheme care outlets
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Q11) Why you are not using Vodafone Services?
Reasons No. of respondents
Lack of awareness 0
High Prices 10
Poor Services 3
Poor Network 2
Sales
Lack of awarness High price Poor serv Poor network
14%
20%
66%
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Q 1, 2 & 3
 Total sample size i,e 50 have mobile phone and are aware of telecom services and also
aware of its services but out of 50 only 35 uses Vodafone.
Q4
 Maximum respondent came to know about Vodafone from advertisement followed by
hoarding and mouth publicity.
Q5&6
 Out of 35 who are using Vodafone are using it for more than one year and using pre-paid
services of it.
Q7
 The reason why they are using Vodafone because of its low SMS rates.
Q8&9
 Users of Vodafone call customer care once a week for getting information related to new
schemes.
Q 10
 Satisfaction level of its customer because of its excellent network followed by SMS rates
and new schemes.
Q 11
 Out of 50 , 15 are not using Vodafone services because of high call rates.
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Conclusion
Follwing are the conclusion that the researcher found after the survey.
 From the above analysis the researcher concludes that major respondents are dissatisfied
with some of the major services like call rates, poor services.
 Major portion of respondents from all respondents use services of Vodafone.
 Major portion of customers of Vodafone are old customers so majority of respondents are
satisfied with the services of Vodafone and thus they would like to recommend Vodafone
to others.
 Major portion of respondents using Vodafone pre-paid services compared to post-paid
services.
 Major portion of respondents are youngsters so they need more SMS facilities and low call
rates, but Vodafone dissatisfies these age group (18-25) as their call rates are much high.
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Bibliography
(2010). vodafone Home. Vodafone Home site.
(2010-2011). Vodafone current scenario. New Delhi: TIMES OF INDIA.
(August 2012). Both figures are from Listed website. New Delhi: www.asa.in.
Works Cited
(2010). vodafone Home. Vodafone Home site.
(2010-2011). Vodafone current scenario. New Delhi: TIMES OF INDIA.
(August 2012). Both figures are from Listed website. New Delhi: www.asa.in.
Websites:
 http://www.vodafone.com/start/media_relations/news/local_press_releases/portugal/p
ortugal_press_release/vodafone_had_highest.html
 http://en.wikipedia.org/wiki/Customer_satisfaction
 http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)
 http://en.wikipedia.org/wiki/Vodafone
 http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf
 www.anacom.pt/render.jsp?contentId=606658
 www.iimcal.ac.in/community/consclub/reports/telecom.pdf
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 Questionnaire
Q1) Do you have a mobile phone?
o Yes
o No
Q2) Are you aware about telecommunications service?
o Yes
o No
If yes, then which operator’s Service do you use?
o Vodafone (Multi-choice)
o Airtel
o Idea
o Reliance
( If not Vodafone then go to Q12 )
Q3) Are you aware about Vodafone?
o Yes
o No (If No, then go to Q11 )
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Q4) From which source you came to know about Vodafone?
o Advertisement (Multi-choice)
o Hoardings
o Newspapers
o Mouth Publicity
Q5) Since how long you are using Vodafone services?
o Less than 1 month
o 2-6 months
o 6-12 months
o More than 1 year
Q6) Which of the following services do you use of Vodafone?
o Pre-paid
o Post-paid
Q7) Which services are more helpful to you while using Vodafone services?
o Call rates (Multi-choice)
o SMS service
o Network
o Value Added Services
Q8) Dou you call at customer care?
o Yes
o No
If yes, how often you call at customer care?
o Daily
o Once a week
o Once a month
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o Occasionally
Q9) For what reason you call at customer care?
o Value added services (Multi-choice)
o Information regarding new schemes
o Other queries
o Complaining
Q10) Rate the following services on the basis of your satisfaction.
Services Excellent Very Good Fairly good Average Poor
Network
SMS rates
New schemes and offers
Customer Care
Recharge outlets
Call Rates
Value Added Services
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Q11) What makes you unaware about Vodafone?
o Less Advertisements
o Less Publicity
o Others
(If others then mention ________________________)
Q12) Why you are not using Vodafone services?
o Lack of awareness (Multi-choice)
o High Prices
o Poor Services
o Poor network
Q13) Give your suggestions to help in serve you better.
_____________________________________________________________________________________
_____________________________________________________________________________________
______________________________________________
Name: ________________
Age: ___ years
Sex: Male/Female
Contact no.: ___________
Signature: __________
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