3. Lower handset costs: Very cheap handset drives the growth in consumer base almost 60 %. The entry-level handsets contribute an estimated 60% of the entire handset market. Major handset manufacturing companies such as Nokia, Motorola, etc. are targeting such entry-level users with handsets priced under the sub Rs 2,000 range. While the Chinese manufacturers such as Haier and Bird offer handsets starting from Rs. l, 200, RCOM has launched Classic handsets priced at Rs777 and color handsets priced at Rs1234.
4. Increasing coverage: The mobile operators are aggressively expanding the geographical coverage in newer locations in order to tap the large available growth opportunity.
Competitors:
Indian telecom industry is an intensely competitive market with 5 players Bharti, RCOM, Vodafone, BSNL-MTNL and Tata Tele, having a pan India presence. Other players such as Idea Cellular (11 circles), Aircel (9 circles) Spice Telecom (2 circles) have also lined up plans to expand their presence and become a pan India operator. While Idea Cellular has received licenses for 2 more circles (Mumbai & Bihar) Aircel for 8 circles and Vodafone for the remaining 6 circles, the services would begin subject to the allocation of spectrum. Apart from the above, Spice Telecom has presence in 2 circles and HFCL and Shyam Telecom have presence in one circle each.
Recently the TRAI has recommended to the DoT for changes in the key licensing policies for access service providers.
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Entry limit to be removed: More players, but not effect on competition, it will help in tower sharing hence reduce cost.
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Spectrum allocation criteria to become more stringent: Higher capex for operator mainly in top tier city.
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Encouraging M&A activity, but only among smaller players: Strengthening the smaller players in regional circles.
1.b) Research and analysis of key marketing information on customer and competitive behavior:
Consumer Behavior can be described to be broadly based on two specific parameters:
- Actual Experience
- Perception
The Integrated Marketing approach that drives the Actual Experience of the Vodafone customer includes many variables such as:
- Network
- Services
- Tariffs
- Handset/User Interface
- Channels
- Customer Care
- Billing
- Information
To have a pan India presence in terms of Network Coverage to all nooks and corners of the country i.e in all the Telecom circles. Provide high quality, low error prone, consistent and accurate services to the consumers wherever they are in the domain. Generating more ARPU through Value Added Services (VAS) and converting non user to Vodafone Users. Provide user friendly and easy to use handsets under Vodafone brand for first time users and phones with advance features to existing users. Effective Channels for Prepaid- through dealers, retailers and Postpaid Users- through Vodafone Stores, dealers etc.
Managing and Solving consumer Queries and problems through 24X7 Service Centre by toll free numbers and through Company Websites and Stores. Accurate and Timely billing for Postpaid Consumers and easy and wide payment systems availability such as through Cash Collection Centre, Website, Direct payment through banks. Providing Information upfront regarding new promotions and offers & change in existing offers using all communications channels effectively.
The Consumer perception is based on the sum total of the Actual Experience that it has and on the awareness of the brand as well as its competitors. To maintain high levels of perception the brand is continually present in all forms of media and using all platforms available to connect with the consumers.
Competitive Behavior
The competition is very fierce among the national players as well as local players. As soon as any scheme or Promotions are introduced in the market by any of the players, it is copied by the competitors leaving almost no lead time for player. The Market leader Bharti Airtel and Reliance Mobile Services have presence in 23 and 20 circles resp. whereas Vodafone has only in 16 circles.
The Marketing Strategies of both the others players are more targeted towards converting non mobile user to mobile users whereas for Vodafone its been targeted more towards increasing ARPU. In fact it has more ARPU than any of its competitors. However, with subscriptions increasing @ 6 million per month and ARPU decreasing it needs to refocus its strategy. There is increased focus on Value Added Services (such as Caller Tunes, Live Search, Ringtones, Cricket and movies related services etc) in the communication strategy of all the players. The market is intense and every customer is valuable to its operator.
1.c.) Target Customer Group
The overall target customers for Vodafone can be broadly described as anyone who is using mobile services for communication or who is potential mobile service user.
The basic need that consumer want out of mobile services is:
1. Use their mobile to remain in touch with family and friends when away from fixed line
2. Use their mobile as source of information cum entertainment
3. View their mobile as a tool to increase personal security
4. Want their mobile to be uncomplicated and easy to use
5. Use their mobile to manage their busy lives
The Customers can be classified into three specific groups:
- Based on Age
- Based on Occupation
- Based on Geographical Area served
On the basis of age further different categories targeted as:
- Teens ( Age range 14 – 19)
- Young Active Fun loving Users ( Age range 19 – 30 )
- Adult Personal Users ( Age 30 – 45 )
- Mature Basic User ( Age 45 onwards)
On the basis of Occupation different categories targeted as:
- Self Chooser for Work
- Company Paid
- Business Travelers
On the basis of Circles in which Vodafone operates, like:
- TamilNadu
- Kerala
- Mumbai
- Gujarat
- Andhra Pradesh
- Chennai
- Delhi
- Haryana
- Karnataka
- Kolkata
- Maharashtra and Goa (except mumbai)
- Punjab
- Rajasthan
- UP(E)
- UP(W)
- West Bengal
Currently Vodafone is providing Services to 16 circles with schemes satisfying specific needs for each of the circles.
Vodafone caters to all age groups and Income level groups through its various schemes in both the prepaid and postpaid services according to their needs.
For Teens, there is more short messages services usage and also the recharge and bills payment are not in their control. There are schemes such as Local SMS at 50p/75p, Talk is cheap plan where local Vodafone calls are@ 30p
For Young, Active and fun loving groups there are schemes such as Get Together which has 300 free SMS and local Vodafone calls @ 15p/min during night time, Campus Pack which has Local SMS @15p,Calls to any 5 Vodafone numbers @ 10p/min, Validity of 30 days, Vodafone Youth pack, Value Added Services etc
For Adult Personal Users there are schemes such as Get Full Value, Family & Friends, Double the talk, Free itemized billing, Super Saver Plan etc
For Mature Basic Users schemes such as Vodafone family Plan, STD is local, simple uncomplicated & easy to use mobiles.
For Self Chooser for work plans such as Talk for less, Get Double Talktime, Personalize your number, Have it your own way–Customize your call charges, Add on card etc
For Company paid plans such as Corporate or Closed User Group (CUG), Varied Payment Options etc
For Business Travelers plans such as Know someone abroad – low ISD charges, STD goes local, Vodafone Citibank Card etc
For TamilNadu Special Schemes such as Chinna Recharge, Chennai is local, All India@Re1 etc
For Kerala Special Schemes such as Timing your ISD calls, Kutti Recharge etc
For Mumbai Special Schemes such as Call Appa,Call Achan; Call Muluk @ Re1, Local mobile & landline offer etc
For Gujarat Schemes such as Call Rajasthan, UP & more @ reduced rates, Gift a bill discount etc
Vodafone has customized its offering to very personal and regional level, and targeted all segments across age and income level.
