Topics: Vodafone, Mobile phone, Vodafone Essar Pages: 10 (2842 words) Published: February 5, 2011
Name: CHUNKY ADNANI Reg. Number: 091585574 Course: B.A. ACCOUNTANCY & FINANCE Topic: Evaluation of Vodafone Essar's Marketing Strategy

1) 2) 3) 4) 5) 6) 7) 8) Executive Summary Introduction Indian Telecom Market PEST Analysis SWOT Analysis STP Analysis Marketing Mix Evaluation of Vodafone Essar's strategy: i. Ansoff Matrix ii. Pricing Strategy iii. BCG matrix iv. Product Life Cycle 9) Vodafone's Current Position 10) Prospects/Issues for future growth 11) Conclusion 12) Appendices 13) List of References

Executive Summary
Marketing a product or a service significantly these days is as prudent as its development. This coursework is aimed to evaluate Vodafone Essar's marketing strategy in context of its effect and reach amongst consumers. In the following pages I try to showcase the marketing environment, the marketing mix, the STP analysis of Vodafone India and also forecast the challenges it faces over the next decade. This is followed by my conclusion on its marketing strategy.

Vodafone Essar or Vodafone India is a subsidiary of the Vodafone Group PLC. Formed in 1995 and known by the names of MAX Touch, Orange and Hutch; it was taken over by Vodafone in 2007. The company now has the third largest market share behind Airtel and Reliance Communications. Its ownership is comprised of 67% investment of Vodafone and 33% of Essar group. The company now has 113.77 million customers across the country [1]. Vodafone is world's leading mobile communication company with operations across five continents in 31 countries. Essar has its business well spread in industries such as Steel, Constructions, Power, Shipping and Logistics, Energy and now also Communications. [2]

Indian Telecom Market
The Indian Telecom is a highly populated industry with as many as 16 players as on 31 July 2010. Indian handset mobile market is set to grow and pass 206 million marks in 2014. Privatization of the industry in 1980s helped attract foreign investors to the market. The following table elaborates on the structure of the telecom market as on 31.07.2010

Source: http://en.wikipedia.org/wiki/Communications_in_India [3]

Pest Analysis


Prior to its takeover, Hutchison Essar had established the foundation of the company by cementing itself in the heavily populated urban sections of India. This was followed by diversifying its operations to other parts of the country and also improving on the range of products offered. This continued until the brand was taken over by Vodafone and it has segmented the Indian market in the following ways:

 Geographical
o Indian mobile market is broadly divided into urban and rural areas. o Products such as Vodafone Mail and Vodafone Mobile Connect are available for the urban crowd. Whereas, specially designed products such as "Chhota recharge" and inbuilt solar panels in mobile phone cater to the rural needs

 Demographic:
o With Indian population of youth getting larger, Vodafone looks set to take advantage of that. Also they have segmented the market for aged people who want to be in touch with their loved ones working abroad by introduction of Home calling cards.

 Income groups:
o Majority of customer base in the Indian Telecom market comprises of the middle class and the upper middle class. Vodafone set its eyes on such markets and has come with products like Full talk time recharge, Bonus cards and Post paid services. Also they have designed products for business use and also for low income groups; in rural areas.

 Expected use of the product: o The life of the service used by the customer varies. Some use it for lifetime whereas for some it is just a short duration. For this Vodafone has divided its product's validity into a fixed duration or Lifelong validity.

Vodafone has implemented a strategy of offering differentiated products and services to its segments in the Indian market. The following...
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