A Marketing strategy analysis of Vodafone

By July 12, 2017 Marketing

Vodafone Group PLC is a British multinational Mobile web operator and Britain ‘s 3rd largest company which is besides the universe ‘s largest Mobile telecommunication web company in footings of gross ?44.47 billion and market value of ?80.2 billion ( August 2010 ) at UK FTSE and taking the planetary market with 7 % market portion. It started in the twelvemonth 1984 and the name Vodafone is acronym for Voice Data Fone. Vodafone has its presence in all the continents ( direct operation in 31 states and spouse web in more than 44 states ) and by the terminal of June 2010, it has a client base of 347 million proportionate Mobile clients across the universe ( Wikipedia & A ; Vodafone 2010 ) . Vodafone ‘s vision as per the instance survey cited through the times100 is “ To be the universe ‘s nomadic communications leader. Corporate Responsibility ( CR ) helps us to accomplish this by cut downing concern hazard and back uping our repute with clients, employees, authorities and other of import stakeholdersaˆ¦.. This committedness is about doing money in a manner that minimises our negative impacts and maximises the positive benefits of our concern on people and the planet. ” In 1997, Vodafone introduced itsA Speech markA logo, as it is aA citation markA in a circle ; the O ‘s in the Vodafone logotype are opening and shuting citation Markss, proposing conversation ( Wikipedia ) .

Presence of Vodafone

In June, 1999, Vodafone completed its amalgamation with AirTouch Communication, Inc, US based radio service supplier as Vodafone Airtouch PLC. However Vodafone retained its name subsequently on after the one-year general meeting ( Vodafone, 2010 ) . In September 1999, Vodafone agreed to unify its US assets with Bell Atlantic Corp. which formed Verizon Wireless, which was completed in April 2000 ( Wikipedia, Elliott & A ; Schiesel, 2000 ) . In Feb, 2000, Vodafone took over Mannesmann which was a German giant holding 42 million clients, successfully sealed the historic ( universe ‘s largest coup d’etat ) trade of ?112 billion after months of rancorous dialogues ( BBC NEWS 11 Feb, 2000 ) .

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Since 2001 boulder clay day of the month, Vodafone has expanded its footmarks in every continent holding their ain subordinates or is partnering with other local service suppliers.

Table1: Vodafone ‘s presence in the universe. ( beginning: Wikipedia )

In India, Vodafone Essar Limited was created in the twelvemonth 2007, when Vodafone Group Plc made its entry to India and acquired full indirect and direct involvements and rights of Hutchison Essar. Hutchison Essar had their presence in the Indian market since 1994. The company now has more than 109 million endorser bases in India which counts to 23.89 % market portion of the entire 457 million endorsers in India as of June 2010 ( hypertext transfer protocol: //coai.in/ )

How Vodafone entered India?

Vodafone had its being already in India, as it had 5.6 % interest in Bharti Airtel. However, Vodafone entered in India with a joint venture holding sensational 67 % interest with the Essar Group as its spouse for the Indian market for buying or taking control of Hutchison Essar owned by Hong Kong ‘s Hutchison Telecommunication. There was a tough competitory command between Reliance Communications and the Hinduja Group to buy Hutch which was the 2nd largest GSM trade name in the Indian Telecom Market, but the trade was finalised at $ 18.8 billion, whereas Vodafone paid estimated $ 11.1 billion for its 67 % interest in the company ( BBC, 2007 ) . It was considered to be a hard-fought trade which is the biggest foreign acquisition in India of all time ( Timmons 2007 ) .

Vodafone faced legal issues

Vodafone received legal notice from the Indian Tax Authority for the possible revenue enhancement liability in October 2009. Vodafone was accused of alleged failure to subtract keep backing revenue enhancement from the consideration paid to the Hutchison Telecommunications International Ltd ( HTIL ) , Hong Kong in regard of HTIL ‘s capital addition on disposal of its portions in Hutchison Essar.

Mary Swire in Tax-News.com interpreted this revenue enhancement issue as “ the Indian revenue enhancement governments have contended that the portions in the Cayman Islands company were simply the manner or the vehicle to reassign the assets situated in India, and that, hence, the effectual dealing between the VIH and HTIL was a transportation of involvements, touchable and intangible, in an Indian company and non simply an acquisition of portions of a shell foreign company. ” VIH was Vodafone International Holding BV, subordinate of Vodafone Group PLC. VIH subsequently filed writs in the tribunal for the cancellation of the notice, but the initial tribunal hearings dismissed the writs in favor of Tax authorization of India. Vodafone subsequently appealed and filed its request against the determination of revenue enhancement authorization in the High Court. The revenue enhancement liability has been considered to be around $ 2 billion. Vodafone is supporting themselves that they have no liability for keep backing revenue enhancement and the instance is still in tribunal for ultimate determination. Vodafone says it is exempt from the charge as the interest sale took topographic point between two off-shore entities.A ( Galani, 2009 )

Competition in Indian Market

Due to the coup d’etat of the concern and the endorsers of Hutch, Vodafone successfully secured its topographic point as the 2nd largest operator in the industry, and as a premium trade name in the Indian market. But it is really hard for Vodafone to bear down the premium rates because of the huge competition. Bharti Airtel, IDEA, BSNL, Aircel, Reliance Communications and Tata Communications are the bigger challengers of Vodafone ( Galani, 2009 ) .

Below statistical comparing of December 2009 vs. June 2010 tells us about the top five in the GSM Telecom Industry, market portion and endorsers wise, where Vodafone has secured its 2nd topographic point with 23.89 % market portion as of June 2010 and has increased important figure of endorsers in comparing to December 2009 information. Bharti Airtel holds the first place with 29.92 % & A ; Idea Cellular is in the 3rd topographic point with 15.09 % market portion. Bharti Airtel and IDEA are the well-founded rivals for Vodafone whereas others are manner behind.

Table1: Market Share of GSM Operators in India, Source: hypertext transfer protocol: //www.coai.com/statistics.php

Economic Environment of India

India opened their economic system in early 1990s which had served to speed up the state ‘s economic growing, increasing the GDP growing of more than 7 % since 1997. India ‘s economic system includes traditional and modern agribusiness, handcrafts, modern industries, and a battalion of services. Below figure reveals the growing rate of India ‘s GDP ; nevertheless we can see fluctuation in growing but the average GDP growing is considered as 8.39 % .

Figure 1: India GDP Growth Rate ( beginning: www.tradingeconomics.com )

As the economic system was turning, the consumers were attracted with the nomadic engineering and the growing in the nomadic industry was outstanding. Figure below describes the every twelvemonth growing since 2006 till June 2010. There was no cultural and economic job faced by Vodafone.

Figure 1: YOY comparing of growing of endorsers in India. ( Beginning: www.coai.com )

Consumption Behaviour of Indian consumers

Consumption behavior dramas really of import function for in an administration for assorted determination doing such as placement, pricing, publicity, distribution, cleavages, service etc. Vodafone bought Hutch, the 2nd largest cellular operator, with first-class trade name. When Vodafone made entry and started operating as Vodafone Essar, it was really of import to execute good and turn outing themselves as the universe leader. Vodafone and its international trade name name enabled the company to demo a really strong growing and public presentation. The gross was increased by over 50 % during the twelvemonth on a proforma footing due to the rapid enlargement of the client base, adding 1.5 million cyberspace clients every month since its acquisition of Hutchison Essar. Vodafone besides shipped 7 million French telephones in 2008, which made Vodafone the 2nd largest provider of French telephones in the market. ( Vodafone Annual Report 2008 )

Market Adaptation & A ; Servicess

As Vodafone entered the market, they had a large challenge of managing their turning client base and at the same clip, they had to cut down their forces and substructure cost because they had to a great extent invested for purchasing Hutch trade name. Vodafone introduced and installed 1100 plus Vodafone Self-Service Kiosk, the ego service mechanization machine, which helped clients to exceed up their prepaid history, printing-paying station paid measures, and information of new services offered by Vodafone. Kiosk provided 24×7 comfortss to the clients and besides reduced their cost per dealing. ( Intellivisons Newsletter, 2008 )

Vodafone offered assorted suited merchandises and services to the Indian market designed harmonizing to the demand and pick of the diverse client base. Products and Services offered were:

Table 2: Merchandises and Servicess of Vodafone Essar

Beginning: hypertext transfer protocol: //www.vodafone.in/existingusers/services/pages/services.aspx

Merchandise Pricing

The Indian telecommunication market was spread outing really fast and with that gait the competition was besides acquiring stiffer and competitory, but Vodafone someway managed to increase the rates and duty for the air clip per minute and samarium in the beginning. These monetary values if compared to the Europe and US Market are far lower. To pull new clients Vodafone started selling low cost French telephones ( Vodafone 150 and 360 ) with connectivity at really low and attractive rates ( Vodafone one-year studies, 2009 ) Subsequently due to the increasing competition and rivals besides cutting down their duties, Vodafone was compelled to cut down its rate by more than 50 % . Vodafone slashed STD and Roaming Call rates to Rs 1.30 and Re 1 severally. While in roaming, surpassing call was priced at Rs 1.50. Before that rival Bharti Airtel had reduced call rates by 43 % ( Nagpal, 2008 ) . It even came up with trades where they provided clients with free talk clip at dark times and over the weekends. This lead to monolithic monetary value war in the telecom industry, but Vodafone managed to pull and retain their clients while selling their merchandises. ( Vodafone 2009 )

Promotion & A ; Ad

After the acquisition of Hutch by Vodafone, it promoted itself with the motto, “ Change is Good… . Hutch is now Vodafone ” and “ wherever you go our web follows.. ” to “ do the most of now ” . Change in the trade name name from Hutch to Vodafone, was unveiled nationally and internationally through a high profile run covering all of import media ( Vodafone 2007 ) . It retained and continued with the elements from its predecessor ‘s advertizement and introduced the corporate coloring material Red. Employee uniforms were changed to the corporate ruddy coloring material from old Pink.

Vodafone become an official spouse and provided sponsorship for assorted popular public events like MTV Splitsvilla, IPL 20-20 Cricket tourneies, etc. which enabled helped turn outing the presence to be felt in the market. For the publicities of the value added services, Vodafone introduced the advertisement character named ZooZoos and Pug ( little cute Canis familiaris ) , which became a fad in the market surprisingly. ZooZooz were the low cost advertizements, which were non life but really acted by existent people. ZooZoos created esthesis in societal networking sites excessively and did a batch in mass viral selling.

This was an emotional advert which touches the bosom and makes us laugh ; it was alone construct that was wholly different if we compare with European and US adverts. Satbir Singh, main originative officer, Euro RSCG, portions his ain experience about Zoozoos, “ Every clip the commercial gets over, my biennial old boy Angad hands me the distant and demands to watch it once more. The other twenty-four hours, a server at a nine mixed up my order as he was excessively busy watching the ad during IPL! ” ( Joshi, 2009 ) . Ads starring Irfan Khan besides gained good promotion for Vodafone in India.

Distribution & A ; Payment System

Vodafone Essar has two sorts of distribution web of its services to the client. In direct distribution, it straight owns and manages shop under the trade name name of Vodafone. These shops sell the services to the clients, bing clients and the needed support when the clients want. After Vodafone took control in Vodafone Essar, all the shops were rebranded as Vodafone and refurbished more than 40 shops in the standard format of Vodafone Group around the universe ( Annual study 2009 ) . Vodafone besides sells its merchandises and services, utilizing the franchise and the sole traders all around India. Vodafone besides operates post-paid mercantile establishments and mini shops to sell their services and merchandises. It besides uses Internet engineering to sell their merchandises, the province of the art web site is really much user-friendly and utile for the clients who are busy and ca n’t make to shops for the services ( Vodafone Annual Report 2008 ) . For indirect distribution, Vodafone has ties with independent traders, distributers and retail merchants to supply services in the rural countries where it has non much entree.

Vodafone ‘s payment system is besides rather good and hassle free. Prepaid clients can exceed up their balance via recharge cards available through assorted shops and online. For post-paid clients, they can pay their measure online, through Self Service Kiosks, assorted payment Centres, direct debit, payment at bead box, by IVR and aggregation bureaus ( Vodafone, 2010 ) .

Analysis by Gaurav Bashyal ( 9100070 )

STP Strategy and Vodafone Essar:

Cleavage: Vodafone Essar is seen as much focused in cleavage in India. Vodafone as metameric Indian Market as geographical section where rural portion of India is at much attending because of the immense potency market for telecom. Second, it has focused on the demographical section where the center and low income group falls. Both the section comprises the major population of the state. Vodafone has besides segmented the client in footings of psychographic ( pupils, professionals etc ) and behavioral facets ( high users and low users ) and have provided the services as per the demands of the market and clients.

Targeting: After the cleavage, Vodafone has selected the mark clients which it is concentrating on to sell its merchandise and services. Vodafone ‘s is aiming its selling scheme to the people populating in little towns and small towns, lower or in-between income group of population, childs and Business peoples. Vodafone ‘s good web of distribution channel is assisting to make and supply services to the people populating in distant small towns and countries of India. Their prepaid service has attracted the lower or in-between income group clients and the young persons. Merchandises like iPhone and Blackberry are targeted towards the high income people or concern individuals in India. They are offering series of differentiated merchandises to their several markets.

Positioning: Vodafone has been successful to place itself in about every portion of India with its first-class channel of distribution. And for making gross revenues and question, it has introduced assorted exciting advertizements and gross revenues promotional activities. The ticket line used by Vodafone says “ wherever you go, our web follows ” , besides creates good image in client ‘s head about the web coverage which is superior and consistent. By the debut of the advertisement character like Zoo Zoos besides helped Vodafone to place because the advert was extremely appreciated by the clients and was a great hit. Cricket is thought as a faith in India, sponsorship in IPL 2020 cricket besides positioned Vodafone really good in the Indian market.

Vodafone ‘s Marketing Mix in India:

Marketing Mix is the combination of 4 major variables which a direction must hold to take attention of and commanding it in order to outdo satisfy clients in the mark market and making wealth. Those 4 variables are besides known as 4 P ‘s of Selling and these are: Merchandise, Price, Place ( distribution ) and Promotion ( quickmba.com ) . In the changing universe, nowadays another ‘P ‘ is added as Peoples, doing it 5 P ‘s of Marketing.

Vodafone acquired hutch in 2007 and has used the good selling mix for deriving success in the huge telecommunication market of India as the 2nd biggest company in India in footings of GSM mobile engineering, which is turning twenty-four hours by twenty-four hours.

Merchandise: Merchandise is the major variable in marketing mix, because without merchandise no other variables can work. Product refers to tangible, physical merchandises every bit good as services ( netmba.com ) . The trade name Vodafone was itself able to sell its merchandises in the Indian market but Vodafone introduced assorted suited and low-cost scopes of merchandises and services for the assorted scope of clients in India. For the low income clients, Vodafone provided installations of pre-paid Mobiles and for the high income clients, Vodafone served with their post-paid Mobiles. Vodafone besides introduced easy to utilize, low cost French telephones turn toing the rural community of India who can non afford nomadic phones at high monetary values.

Monetary value: Price plays an of import portion in the buyer/seller relationship. A trust develops between marketer and purchasers, who reciprocally agree that monetary values will be set at a just degree. A significance of monetary value can be reduced when the factors such as quality and dependability of service bringing is equal or greater than the monetary value purchaser is paying for the merchandise ( Lancaster and Reynolds, 2004 ) . In instance of India, Vodafone is in a low monetary value scheme to derive high market portion of the people who are in the rural countries of India and can non afford higher or premium monetary values. As 71 % of entire population of India lives in rural portion ( CIA, fact-book 2008 ) , Vodafone has taken this scheme to make out to the higher volume of people. Vodafone has introduced assorted merchandises with the scope of monetary values which a client has option to take and clients besides receive the quality service they pay for their merchandises.

Topographic point: Vodafone has opened maximal figure of mercantile establishments in each and every portion of India. The mercantile establishments are direct distribution through their ain distributers, indirect distribution through associate distributers to the local retail merchants, who provide merchandises and services to the local clients. Vodafone has besides established many service Centres in about every portion of India, so that the client is ever satisfied with the merchandises and services of Vodafone and we can see that the clients of Vodafone are significantly increasing every month. Vodafone is besides selling their merchandises and services through their ain web site as good.

Promotion: The promotional mix comprises of advertisement, gross revenues publicity, selling and public dealingss ( Lancaster & A ; Reynolds, 2004 ) . Promotion refers to the method used to inform the clients about the merchandises and converting them to purchase. Vodafone has used this scheme since its origin in India as Vodafone Essar. Vodafone ‘s advertizements and publicities were hearty welcomed by the audiences. Introduction of the advertizement of Zoo Zoos and pug was a great esthesis which besides got popularity in many societal networking sites like Facebook etc. Actor Irfan Khan ‘s advert was extremely popular due to his manner. Vodafone besides sponsored many featuring events and Indian Premier League helped Vodafone to make attractive force in clients. Other sponsorship like MTV world show named Splits Villa which was celebrated in the circle of Indian childs besides helped Vodafone to derive good success in a really short span of clip. Vodafone has introduced assorted new good schemes/offers to pull the clients like assorted talk clip offers, cogency offers, Bonus Cards, Tariff offers, low cost French telephones etc for the prepaid users and ISD, STD, SMS, MMS offers, iPhones and Blackberry French telephones to the post-paid users ( Vodafone, 2010 ) .


Vodafone has been to the full successful in using their selling mix scheme and STP scheme in the huge Indian market ; they are now in their 3rd twelvemonth of full control of operation in India and are procuring their 2nd topographic point every twelvemonth and seeking chances to be the figure 1. As per the mission statement of Vodafone to be the universe leader in the field of communicating, Indian market will certainly assist them to turn the base of it as India has a immense potency in the telecommunication sector.

Analysis by Mandira Bajracharya ( 9100080 )


Mobile phone has become the one of the most exciting selling tools today because nomadic phone is in the bosom of one million millions of people, who are ever within the range of their Mobiles 24 hours a twenty-four hours. Over 4 billion people, i.e. 60 % of universe ‘s entire population have subscription of Mobiles by the terminal of twelvemonth 2008. Among the legion nomadic telecommunications found globally, Vodafone is ranked as the top Mobile telecommunications all in the United Kingdom and 11th in the planetary ranking.


SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. It is furthermore an internal ( which are under the control of the administration, i.e. strengths and failings ) and external analysis ( which are non under administration ‘s control, i.e. chances and menaces ) of the, selling, fiscal, fabrication and organizational Fieldss of any company.

Figure: Swot Analysis

( Beginning: hypertext transfer protocol: //www.businessteacher.org.uk/business-operations/swot-analysis/ )


Laterality in Cellular market

Wide geographical presence

Vodafone merged with an US based radio service suppliers, Airtouch communicating in 1999 with the name Vodafone Airtouch Plc, nevertheless the company retained its name after their one-year general meeting.

If we look at the history, it is found that Vodafone has successfully completed the universe ‘s largest coup d’etat by taking over the German giant, Mannesmann with 42 billion clients.

Vodafone has successfully expanded its footmarks in more than 90 states, including Finland, Austria, Malaysia, Sri Lanka, Sweden, Turkey, Ghana, etc. from the twelvemonth 2001 boulder clay day of the month.

Vodafone has acquisition of 5.6 % interest in Bharti Airtel and 67 % interest with the Essar Group in the partnership for the Indian market.

In the UK market Lebara Mobile usage the web of Vodafone, which is one of the strength possessed by Vodafone as a web service supplier.

Strength for Vodafone is the diversified geographical portfolio along with the strong nomadic telecommunications being operated in the Middle East, Europe, Africa, US, Asia Pacific, etc.

Network substructures can be considered as the strength for Vodafone.

In the emerging markets like India, Vodafone has shown its prima presence.

India has 23 license countries with individual regulator in the telecommunication field, which helps to construct the economic systems of graduated table and Vodafone is able to to the full use these available resources.

With the turning economic system in India, the figure of endorsers for the nomadic reached to 457 million by June 2010, and Vodafone ne’er faced any type of cultural and economical jobs to be established in the Indian market.


Low Research and Development.

Negative ROA ( return on assets ) underperform cardinal rivals like the BT groups.

No web in the rural countries.

Vodafone successfully secured the 2nd place in the telecommunication industry after the coup d’etat and the being the endorsers of Hutch and established as a premium trade name in India. But due to the competitory market it is really hard for the Vodafone Company to bear down the premium rates.

Despite of being the established company, Vodafone received a legal notice from the Indian Tax Authority for the possible revenue enhancement liability in October 2009.


If the company can get the better of it ‘s failings that can make chances for them. Some chances for Vodafone are ;

They can spread out abroad my unifying the bing markets, like if they can take over the CDMA group in India they will be the top taking telecommunication in Indian market.

Improve handiness to the wider client scope.

Can derive bulk of the interest in the Hutchison Essar in the Indian market.

They can be focused on the cost returns by bettering the returns.

Can present more research and development of the new nomadic engineerings.

Among the three parts of the African continent ; South Africa, Mediterranean part and the Sub-Sahara portion, the Sub-Sahara part is the poorest with immense geographics but low nomadic denseness and low per-capita income. So, Vodafone can take this as an chance to distribute in this part since the part is developing and under-penetrated.

( hypertext transfer protocol: //economictimes.indiatimes.com/articleshow/5601009.cms )

As in UK, Vodafone can supply its web in rental to the other telecommunications in India.

Introduction of good Duty bundles.


The biggest menace can be the meeting of the rivals of Vodafone to take over the Vodafone Company.

Due to the extremely competitory market, Vodafone is still dawdling behind in the US market.

Highly high incursion rates in the bulk of the European market.

The ordinances of the European Union sing the use of the cell phones across the boundary line.

Chief Executive for Vodafone, Arun Sarin has said to be cognizant of the hazards due to the reaching of new engineerings like Google and Apple, so to get the better of these hazards the industry should come up with new inventions in the nomadic services.

( hypertext transfer protocol: //www.zdnet.co.uk/news/mobile-working )

Analysis by Bandana Thapa ( 9100066 )


Vodafone group PLC is the universe ‘s taking nomadic telecommunications company presence in Europe, the Middle East, Africa and Asia Pacific. Vodafone is a nomadic web operator with its central offices in Newbury, Berkshire, UK. It is the largest nomadic telecommunication using over 65000 staff with over 302.6 million clients in all over the universe. It is the 3rd largest radio operator in UK. www.vodafone.com

Vodafone in India

India is the 5th largest economic system in the universe and has third largest GDP in the full continent of Asia. It is one of the few markets in the universe which have high opportunity for growing and gaining possible in all countries of concern. Vodafone was come in India with ‘Hutch is now Vodafone ‘ run. The passage from Hutch to Vodafone could be largest trade name alteration of all time undertaken in India. This was besides known as fastest and comprehensive trade name passages in the history of Vodafone group with 40,000 multi trade name mercantile establishments, more than 350 Vodafone shops, around 1000 mini shops, 35 Mobile shops and over 3000 touch point.


Figure: Cleavage chart

Vodafone has section in major three bases demographic, psychographic and behavioral. Demographic sections it besides segments harmonizing to income, age, nature of client. Similarly in Psychographic section it largely section harmonizing to life style and personality. In behavioral section it divides into three types on the benefit like local call, STD call and ISD name etc. sing usage rate medium use rate and visible radiation uses with assorted strategies for them. Last but non least section is type of service provided.


Vodafone is accommodating multi section attacks in India. They are offering different series of merchandise harmonizing to demand of related market. E.g. place naming card particularly for professional to name household from abroad and ‘Chhota ‘ recharge of Rs 10 for in-between category client and cheap SMS installation for immature. Never the less Vodafone has different services for their different section which matches their demands.


Initially Hutch positioned as more of immature and a merriment trade name. The placement schemes have been extremely successful. ‘PUG ‘ Canis familiaris which was a really powerful ocular imagination. Using high profile Bollywood star for advertizement has been restrained for the trade name publicity. Similarly ‘happy to assist ‘ , ‘where of all time you go our web follows ‘ are some of the celebrated promotional lines which are rather success aid to heighten their place in Indian market. Never the less good known character “ ZOOZOOS ” was introduced by Vodafone in April 2009 during premier conference and hit, helped to do different place in the head of client.

Competition of telecommunications in India

Players of Indian telecommunication are Airtel, Reliance Communication, IDEA/spice, Aircel, TATA Indicom, BSNL, MTNL, HFCL Group BPL, Shyam Telecom Ltd. This seems that telecommunication market is extremely competitory in India. Beside the high degree of competition Vodafone is able to prolong in India Vodafone ‘s India operations have recorded a 50 % growing in turnover at Rs 15,288 crore in financial 2007-08 in contrast its planetary grosss. The monthly subscriber extra have been healthy at the rate of 1.5 million endorsers, ensuing in subscriber base of 44.1 million as a March 2008 and 12 % of its planetary grosss to be coming from the India nomadic phone market by 2012.

On the footing of gross Bharti Airtel and Reliance Communication have higher gross borders than Vodafone. Never the less Vodafone have attempted to cast its premium image but besides able to fulfill in-between category clients with offers such as ‘Chhota recharge ‘ .

PESTEL Analysis of Vodafone

Macro environments are difficult to command for any concern organisation. Pestel analysis will assist to happen out the external factors which affect the potency of Vodafone.


Political factor is one of the macro factor which play of import function to develop telecommunication runing concern in any state. It may include from the authorities licencing procedure, legal issues, ordinance etc to assorted force per unit area of force per unit area group. These factors play critical function to construct substructure for any web operating industry.


The rates of economic growing, rising prices, income distribution procedure etc are the economical factors which besides influence the growing of telecommunication operating web. Turning income or increase in buying power ( Rs 12000 in 2002 to Rs 3300 in 2008 ) which may assist to increase in the use of Vodafone. Similarly falling monetary values of French telephone could impact the market of Vodafone. Rising in telecommunication denseness which will aim 45 % by 2010 is besides challenge.


Turning demand for wide set services among youth which affect the degree of competition in telecommunication sector. Increase in urban population which may impact the market of Vodafone. Rapid urbanisation and rapid addition in income addition more competition for Vodafone in India.


Some of technological promotion in India is CDMA- there are already three large participants in this section Reliance, Tata. 3G- value added services possible still to be tapped to the full. 2G/3G- GSM presently commands 70 % of nomadic subscribes in India. These current scenarios of technological promotion in Indian telecommunication market could coerce Vodafone besides. Vodafone ‘s rivals are now offering the same GSM manus set as Vodafone. So these all prove more external force per unit area and new challenge for Vodafone.


The Indian authorities is coercing Vodafone and other telecommunication operators to be environmental friendly. Like while seting up towers any negative outwardnesss given out will hold to be paid by a to the full societal cost by Vodafone.


Vodafone is in merely one legal force that it is to supply safety in the usage of its services through the French telephones they sell and provide. So this means that development cost will necessitate to be done to bring forth French telephones that attract low radiation.

Vodafone is one of the popular trade name in telecommunication industry of Indian and able do different place in the head of Indian clients. However the telecommunication is one of the most competitory concerns in India but Vodafone seem rather successful to carry through the demand of assorted clients by offering different services in India. Technology is one of the important factors for this industry and turning demand of immature clients are increasing twenty-four hours by twenty-four hours so company should seek to follow the more latest engineering which will assist them to be more strong among rival.

Analysis by Lila Bhandari ( 9100194 )

Vodafone Essar is the fastest turning wireless market in India. It has covered a big figure of people. It operates in more than 23 circles and is 2nd largest GSM operator in India after Bharti Airtel. It enjoys a market portion of more than 23 % as Feb 2010. ( Beginning: www.teleguru.in )

STP Analysis:

Market Cleavage:

The procedure of cleavage represents a powerful competitory tool. It is a procedure of spliting the entire market for a merchandise into smaller groups with distinguishable demands and features of purchasers. The undermentioned cleavage variables are used by Vodafone in order to segme

nt the market:


Vodafone segments its market as tubes, A-circle, B-circle and C-circle. Here the cleavage is done on the footing of parts in which they operate. Besides, rural and semi-urban markets are fast emerging as profitable market section, so Vodafone is seeking to heighten its operations efficaciously further these section.


Demographic is besides classified in three distinguishable groups: Age, Income and Nature of the Customer. Vodafone does n’t section its market on the footing of age but they have specific programs for young person. The programs and services are different to institutional or exclusive clients and besides it has assorted programs for every degrees of society harmonizing to their income.


It segments its clients on the type of service they use based on their life style such as different programs for pupils, professional etc.


Different types of clients use a merchandise for different intents and benefits. So Vodafone sections its clients on the footing of benefits sought by them such as: local call, STD call or ISD call or ISD call shapers and besides it gives value added services to its clients like connectivity, web coverage, etc. It has besides classified the users as one with heavy use rate, medium usage rat and light use rate and has different aiming strategies for each of them.

Target Selling:

Each twenty-four hours market is altering and the pick of clients is altering twenty-four hours by twenty-four hours. So today ‘s market is huge and diplomatic but the seller ‘s know to happen their chances and clients throughout the targeted selling schemes. Once the market is segmented, it helps a company to place the demand features of each section. Then a company can choose which segments it aims to function on the footing of sections ‘ attraction to the company. This procedure of choosing one or more market sections is defined as mark selling ( Lynch, 2000 ) . While speaking about the Vodafone, it is the largest nomadic company. It has full market coverage with differentiated offerings. Market is targeted through many different duties, services and propositions for every section harmonizing to specific client penchants and demands. These frequently bundle together as: voice, messaging, informations and increasing value added services. The assorted illustrations for this include are as follows:

Home naming cards for household of those professionals who use to work abroad.

Rs. 10 recharge for little users.

Cheap SMS installation for young persons.

Facilities for circle users etc.

It targets the certain market from where it makes publicity, pricing and distribution of its services easier and more cost effectual.


Harmonizing to Kotler and Armstrong ( 1987: 225 ) , merchandise placement can be defined as: ‘The manner the merchandise is defined by consumers on of import attributes-the topographic point the merchandise occupies in consumers ‘ heads relative to viing merchandises. ‘ So it is defined as the distinguishable topographic point a merchandise or service occupies in the heads of the mark clients relative to viing merchandises. Thus Vodafone Esser has continued to construct trade name value by presenting a superior, consistent and differentiated client experience. Their tagline “ Where of all time you go our web follows ” gives the client indicant of their huge coverage. The differentiated themselves from other service suppliers by presenting the promise of ‘Helping clients make the most of their clip ‘ and their communicating scheme has ever focused on ‘Happy to Help ‘ which tends to strike an emotional chord with the client.

The group ‘s vision is ‘To be the communications leader is an progressively affiliated universe ‘ spread outing the group ‘s class from nomadic merely to entire communications. To enable the consistent usage of the Vodafone trade name in all client interactions, a set of elaborate guidelines has been developed in countries such as advertisement, retail, on-line and selling.

In April 2009 a run, concentrating on the different value added services offered by the company was launched, introduced new characters called Zoozoos who seem to be in between the universe of life and world. Several advertizements in which the Zoozoos featured were shown on telecasting during the Indian Premier League ( IPL ) Season 2 and were instant hit among the clients but the transition of this exhilaration into gross is yet to be seen.

Analysis of Ansoff Matrix on Vodafone:

Ansoff Matrix helps to concentrate the head on how each chance fits with the concern scheme in footings of merchandises and markets. It is simple to utilize and really effectual in driving clear strategic believing around growing. It works on the footing that to present growing a company must make up one’s mind how and where it needs to vie: in current or new markets and through bing or new merchandises.

1 ) Market Penetration ( Present market with present merchandise ) :

Since Vodafone is still siting high on its current Zoozoo advertisement run, it should capitalise on this and seek to increase their presence by choosing for their farther accent on their urban distribution web. In the instance of Mumbai, Vodafone has made its presence felt by opening 25000 distribution mercantile establishments. This theoretical account can be adapted and customized as per the regional parametric quantities in order to go the state ‘s taking cellular service supplier.

2 ) Market Development ( New market with present merchandise ) :

Harmonizing to late conducted studies, statistics showed that 45 % of the overall telecom sector growing is to come from the sector. A major ball of Vodafone ‘s gross is still generated from tier1 and tier 2 metropoliss. So it needs to concentrate on rural countries. Thus it provides a more regional focal point to the advertisement and promotional schemes in order to set up a good connect with the rural clients.

3 ) Merchandise Development ( Present market with new merchandise ) :

Vodafone is further seeking to supply new services in order to set up a stronger bridgehead in its current subscriber base. It is in the procedure of turn overing out its 3G service in India which would be a quantum spring for browse and cyberspace based nomadic applications and services. Harmonizing to late updated authorities ordinances, the 3G market is unfastened merely to 4 telecom sector participants in that peculiar circle. Hence acquiring the licence for supplying 3G services in India would farther give Vodafone a distinguishable advantage over its rivals.

4 ) Diversification ( New market with new merchandise ) :

In order to diversify its current market portfolio, Vodafone is establishing a planetary Machine to Machine ( M2M ) service platform for assisting companies to deploy and pull off big, wireless M2M undertakings for applications in client service sweetening and cardinal control and mechanization of undertakings. In the Indian context, M2M is an untapped sector with tremendous potency for growing. WiBRO ( Wireless Broadband ) has the capacity to get the better of informations rate of restriction of nomadic phones by supplying a astonishing 30 to 50 MB/s velocity. As in the instance of M2M platforms, WiBRO is a really promising market in India. Supplying these two services in India would open new avenues of growing for Vodafone and would assist it to diversify into different market verticals.


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