Marketing strategy of Vodafone India

Vodafone India Limited and its telecom subsidiaries (Vodafone India Group or VI Group), headquartered in Mumbai, is the second largest mobile network operator serving over 150 million customers in India. It is a subsidiary of the Vodafone Group Plc, world’s leading international mobile communications group with over 404.6 million customers as of 31 March, 2012.It provides voice and data, wireless and wireline services to help businesses harness the power of total communications solutions.

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It focuses on providing value through high-quality, innovative solutions, and let our customers do the talking. Its commitment to customers has made it the Most Trusted Service Brand in India. During this year, it had an 11.8 % increase in subscriber base and 20% increase in voice usage volume. It continues to actively support Mobile Number Portability (MNP) and consider it beneficial for service providers as well as customers. It provides flexibility and choice to the customers to select their service provider, while retaining their mobile number.

It is a good test for customer loyalty. From the time that MNP was introduced till the end of March 2012, we registered a net gain of around 1.7 million customers.

SWOT ANALYSIS

Strengths

Diversified and expanded geo-regions across the world. A strapping international presence and powerful brand image have mait the leading telecommunications company. Vodafone is the most trusted service brand owing to its excellent signal strength and efficient services.

Vodafone has well-defined cost reductions structures owing to the vibrant cost cutting initiatives, effective outsourcing and managed purchasing. This has improved the company’s revenues by reducing the operational costs An established presence in mature and emerging markets such as Africa and Asia, which have expanded its market share and revenues

Weaknesses
Uncertainty in the profits obtained from the HSDPA networks attributed to the slow consumer take-up of improved 3G networks services Over-reliance in the European market, which has seen its revenues and share decline due to the crisis in Europe. Vodafone does not have network operations in rural areas

Vodafone specializes in mobile services that lead to greater churn rates. Opportunities
The growing demand for 3G networking among businesses globally has seen laptop manufacturers embedding SIM chip in the laptop. Improve accessibility to wide range of customers Focus on cost reductions improving returns Research and development of new mobile technologies

Threats
The telecommunications market is swiftly growing and becoming highly competitive with extremely high penetration rates. Frequent tariff interventions and TRAI policies put pressure on its revenues. Vodafone still lags behind its major competitors in India.

PEST Analysis
Political
Vodafone was embroiled in a $2.5 billion tax dispute with the Indian Income Tax Department over its purchase of Hutchison Essar Telecom services in April 2007. Vodafone Group Plc. entered India in 2007 through a subsidiary based in the Netherlands, which acquired Hutchison Telecommunications International Ltd’s (HTIL) stake in Hutchison Essar Ltd (HEL)—the joint venture that held and operated telecom licenses in India.

The dispute had been whether or not the Indian Income Tax Department has jurisdiction over the transaction. In January 2012, the Indian Supreme Court passed the judgement in favour of Vodafone, saying that the Indian Income tax department had “no jurisdiction” to levy tax on overseas transaction between companies incorporated outside India. In 2012, India changed its Income Tax Act retrospectively and made sure that any company, in similar circumstances, is not able to avoid tax.

Economic
The net revenue of Vodafone India as of March 2012 was Rs 321,844 million. Total number of subscribers that Vodafone caters to was equal to 150.46 million. The total voice usage minutes that Vodafone carried was 680,611 million minutes. The total number of messages handled by Vodafone was equal to 81,099 million. Total number of data users was equal to 30.2 million.

95% of the users came from prepaid category.
It had 463 stores all across the country a on March 2012.

Social
In line with the government’s objective to improve rural penetration of telephony services, it has worked continuously in the last few years to establish a strong rural presence. We marked a growth of over 21% in our rural subscriber base in the FY 2011-12 to become the second largest rural wireless operator in the country. Owing to easier access and lower cost of mobile phones, it is expected that the next billion internet users in the world will access the internet via mobile phones.

The work done by it in addressing social and environmental concerns while maintaining profitability and generating economic value had earned them the reputed Golden Peacock Award for Corporate Social Responsibility. It received the Top Green IT Enterprise Award 2012 – CIO Leadership Summit supported by APC-Schneider

Technological

It has a total of 110,004 base stations across India and growing. It has invested extensively in developing the 3G network in India and it also received the Best 3G Service Operator – Telecom Operator Awards 2012 by tele.net in 2012 It is also working extensively in using cloud computing for telecom networks. It is company that has helped in the evolving of data services in India. It was the company that focused heavily on the development of data applications. It was Ranked No 1 in overall customer satisfaction – Hindustan Times’ customer satisfaction National Survey 2011 It deployed hybrid solutions (i.e., diesel generators and batteries working in alternate modes, with intelligent controllers), taking the total site numbers to 2435.