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UNIVERSITY OF MUMBAI PROJECT ON VODAFONE :BEFORE AND AFTER REBRANDING HUTCH TO VODAFONE Submitted In Partial Fulfillment of the requirements For the Award of the Degree of Bachelor of Management Studies By VICKY MAHADEV PATEL PROJECT GUIDE PROF. Dr. PRIYANKA MOHAN ORIENTAL EDUCATION SOCIETY’S ORIENTAL EDUCATION SOCIETY’S SANPADA COLLEGE OF COMMERCE AND TECHNOLOGY SANPADA COLLEGE OF COMMERCE AND TECHNOLOGY SANPADA SANPADA, NAVI MUMBAI , NAVI MUMBAI BACHELOR OF MANAGEMENT STUDIES (2010-11) 1

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UNIVERSITY OF MUMBAI

PROJECT ON

VODAFONE :BEFORE AND AFTER REBRANDING

HUTCH TO VODAFONE

Submitted

In Partial Fulfillment of the requirements

For the Award of the Degree of 

Bachelor of Management Studies

By

VICKY MAHADEV PATEL

PROJECT GUIDEPROF. Dr. PRIYANKA MOHAN

ORIENTAL EDUCATION SOCIETY’SORIENTAL EDUCATION SOCIETY’S

SANPADA COLLEGE OF COMMERCE AND TECHNOLOGYSANPADA COLLEGE OF COMMERCE AND TECHNOLOGY

SANPADASANPADA, NAVI MUMBAI, NAVI MUMBAI

BACHELOR OF MANAGEMENT STUDIES

(2010-11)

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C E R T I F I C A T EThis is to certify that Mr./Ms.

____________________________________________ of Bachelor

of Management Studies has undertaken and

completed the project work titled

-----------------------------------------------------------------------

-----------------------------------------------------------------------

--------------------------------------------- during the

academic year 2010-2011 under the guidance of 

Prof.

Dr.-------------------------------------------------------------------

------------------ submitted on ----------------------------- to

this college in fulfillment of the curriculum of 

Bachelor of Management Studies University of 

Mumbai .

This is a bonafide project work and the informationpresented is true and original to the best of ourknowledge and belief.

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PROJECT GUIDE COURSE CO-ORDINATOR

PRINCIPAL

DECLARATION

I VICKY MAHADEV PATEL student of T.Y.BMS (2010-

11) hereby declare that I have completed this project

on “VODAFONE:BEFORE AND AFTER REBRANDING

HUTCH TO VODAFONE”

.

The information submitted is true & original to the

best of my knowledge.

 Student Signature

VICKY PATEL

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ACKNOWLEDGEMENT:

It is a pleasure to thank all the people who directly or indirectly in many ways

have assisted me in my project related studies and contributed in the process of 

making this project.

Firstly, I would like to thank my project guide Prof.Dr.Priyanka Mohan for 

his support, cooperation and fruitful discussions during my research on the topic

-“VODAFONE- BEFORE AND AFTER REBRANDING HUTCH TO

VODAFONE”

Lastly, I would like to express my gratitude to all my college and in particular 

to the coordinator of Bachelor of Management Studies (BMS); Prof.Uma Durgude,

for providing me such an interesting topic for my university project and their by

supporting, and cooperating with me during my project.

I would also like to thank our Principal Dr.P.K.Bandgar and president of our 

college Dr.Javed khan.

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INDEX

 SRNO. TOPICS PAGE

 NO1. CHAPTER I

A: WHAT IS TELECOMMUNICATION

B:PLAYERS IN TELECOMMUNICATION

10-17

2. CHAPTER II

A: DOT

B: TRAI & ITS FUNCTIONS

18-20

3. CHAPTER III

A:ABOUT VODAFONE

B:HISTORY OF VODAFONE

C: MANAGEMENT OF VODAFONE

21-31

4. CHAPTER IV

A: PRODUCTS & SERVICES OFFERED BY VODAFONE

B: VODAFONE MARKET SHARE

B: EXTRA EFFORT TO BOOST SALES

C: CRM ADOPTED BY VODAFONE

D: COMPARISON BETWEEN LOOP & VODAFONE

32-56

5. CHAPTER V

FUTURE OF VODAFONE

51-52

6. RESEARCH METHODOLOGY 53

7. ANALYSIS 54-61

8. FINDINGS 62

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9. SUGGESTIONS AND RECOMMENDATIONS 63

EXECUTIVE SUMMARY:

This project is based on telecom sector as the telecom sector is growing at a very good

 pace. The telecom company which I have selected for my project is VODAFONE.

The reason behind selecting Vodafone is its various schemes in product & service

category & also its future policies where the company is coming out with lots of new

& affordable schemes for its customers. Vodafone is a UK based company & has

various branches all over the world. The company was started in the mid 70’s & since

then it has never looked back. The products & services offered by Vodafone is of a

very high quality & also at an affordable rates. They have various plans for various

customers depending on the status of the customers.

Vodafone has various product categories ranging from chargers, internet, mobile

 phones, headsets & headphones & many more. In the service category it has internet

services which include broadband internet & PC internet services.

Apart from the products & services normally offered they also came out with some

interesting & unique product like the I phone. This was one of the biggest events in

the history of Indian telecom industry. The phones were available at around 32000-

36000 Rs which has a unique feature called as 3G system.

Vodafone also came out with cell phones for the poor which was a part of their social

responsibility toward the poor class people of the society. The phones were available

in the range of 1000 Rs -1500 Rs which was one of the successful strategies of 

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Vodafone.

According to the 2003-2010 data VODAFONE captures the market with 17.56 % &

is at the 3rd position just after Bharti with 24.69% & Reliance with 17.68%.

Vodafone also came out with one of best& most attractive advertisement which no

one has ever seen before called as “VODAFONE ZOO-ZOO’S”. This advertisement

was a part of VODAFONE’S marketing strategy to boost its sales during the IPL 2

season. This was one of the master moves by VODAFONE to introduce ZOO-ZOO

during the IPL 2 season which was a “SUPER-HIT”.

VODAFONE is planning to come with its own accessories stores which would be a

one-time shop for its customers wherein the customers will get all the products under 

one roof. Vodafone’s future plan is to become no.1 telecom company by the year 

2010-2011 which does not seems to be very difficult keeping in mind the progress it

has made in the last 5 years.

Vodafone has added around 5 million subscribers in the year 2008-2009 which makes

it the 3rd largest telecom company in the world. Vodafone has joined hands with one

of the world largest & the best car racing company F1 MCLAREN MERCEDES to

host the 2 day event. This is the part of the promotion strategy of Vodafone to become

the world wide leader in telecom industry.

Vodafone is also the official sponsor of the England Cricket Team for the Npower test

series . It has also shaken hands with the most popular football tournament UEFA

CHAMPIONS LEAGUE football which is a part of the promotional strategy of 

Vodafone.

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CHAPTER I

WHAT IS TELECOMUNICATION

Telecommunication is the transmissions of signals over a distance for the purpose of 

communication. In modern times this process almost always involves the sending of 

electro magnetic waves by electronic transmitters but in earlier years it may have

involved the use of smoke signals drums or semaphore lines.

HISTORY OF TELECOMMUNICATION:

The history of telecommunication began with the use of smoke signals & drums in

Africa the America & parts of Asia. Smoke signals

In the 1790’s the first fixed semaphore systems emerged in Europe however it was not

until the 1830’s that electrical telecommunication systems started to appear. This

article details the history of telecommunication & the individuals who helped make

telecommunication systems what they are today.

Early telecommunication included smoke signals & drums. Drums were used in

natives like Africa, New Guinea & South America & smoke signals in North America

& China.

In 1792 a French engineer Claude Chappe built the first visual telegraphy for 

semaphore system between Chile & Paris. This was followed by a line from Strasburg

to Paris.

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SOME OF THE MOST POPULAR TELECOM

COMPANIES IN INDIA:

A.P TELECOM

A.P.-telecom officer's service telephone numbers can be viewed by clicking the

concerned telecom district. A.P. telecom circle is serving the whole state of Andhra

Pradesh including the twin cities of Hyderabad and Secundrabad.

ASC ENTERPRISES LIMITED (ASCEL)

Ascel is a multi venture corporate heralding the "convergence" era in our country,

focusing on nationwide retailing of time (telecom, information & learning, media,

entertainment) products & services, satellite and digital wireless communication

ventures for provision of infrastructure, services and solutions among other initiatives.

AIRCEL

Aircel is a mobile phone service provider in India.It offers both prepaid and postpaid

GSM cellular phone coverage throughout India. Aircel is a joint venture between

Maxis Communications of Malaysia and Apollo Hospital Enterprise Ltd of India.

UTSB has a 74% stake in Aircel and the remaining 26% is with Apollo Hospitals. It is

India’s fifth largest GSM mobile service provider with a subscriber base of over 46.51

million, as of September 30, 2010. It has a market share of 9.65% among the GSM

operators in the country.

BANGALORE TELECOM

Bangalore telecom system is a communications window to the rest of the world. Offer 

a wide range of telecom services from basic telephone service to high speed data

circuits.

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BHARTI ENTERPRISES

Established in 1985, Bharti has been a pioneering force in the telecom sector with

many firsts and innovations to its credit, ranging from being the first mobile service in

Delhi, first private basic telephone service provider in the country, first Indian

company to provide comprehensive telecom services outside India.

COMMSOUTH

Commsouth was founded in Chennai, in the mid nineties; Commsouth has grown

steadily and established sound positions in the mobile telephony and telecom

management software market.

CELLEBRUM

Cellebrum is a company of M Corp global group with interests in the field of telecom

solutions, office automation and information technology and value added services.

Asia’s leading value-added mobile services and solutions provider on platforms like

sms / ivrs / wap / gprs / ussd etc.

CRICKET COMMUNICATIONS

Cricket is the operating subsidiary of leap wireless international, a customer-focused

company providing innovative mobile wireless services targeted to meet the needs of 

customers who are under-served by traditional communications companies.

ESSAR GROUP

The Essar group is one of India’s largest corporate houses with interests spanning the

manufacturing and service sectors in both old and new economies: steel, power,

shipping, constructions, oil & gas and telecom.

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IDEA CELLULAR 

India's leading GSM mobile services operator, idea cellular has licenses to operate in

11 circles. With a customer base of over 17 million, idea cellular has operations inDelhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,

Uttaranchal, Haryana, UP-west, Himachal Pradesh and Kerala. Idea acquired spice

telecom which was operating in Karnataka and Punjab. Idea cellular footprint

currently covers approximately 45% of India’s population and over 50% of the

 potential telecom-market. As a leader in value added services, innovation is central to

idea's vas factory. It is the first cellular company to launch music messaging with

'cellular jockey', 'background tones', 'group talk', a voice portal with 'say idea' and a

complete suite of mobile email services.

 

INTERNET & MOBILE ASSOCIATION OF INDIA

The internet & mobile association of India (IAMAI) is a not-for-profit industry body

registered under the SOCIETIES ACT, 1896. Its mandate is to expand and enhance

the online and mobile value added services sectors.

JP MOBILE, INC.

JP Mobile is a solid, well-established company, a true pioneer in the enterprise

mobility market. They are a privately held company with solid financial backing.

They offer sure wave mobility suite, a comprehensive wireless mobility solution for 

enterprises, carriers, system integrators and independent software vendors.

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LOOP MOBILE

Loop mobile (BPL mobile now rebranded as loop mobile), represents growth with

continuity. While we constantly work towards giving our subscribers a better 

network, innovative products and a superior mobile telephony experience, our 

subscribers can be assured of the same focus and commitment in providing the best

network coverage, billing accuracy, and an unmatched personalized customer service.

MTNL DELHI

MTNL Was Set Up On 1st April, 1986 By The Government Of India To Upgrade The

Quality Of Telecom Services, Expand The Telecom Network, Introduce New

Services And To Raise Revenue For Telecom Development Needs Of India S Key�  

Metros Delhi, The Political Capital And Mumbai, The Business Capital Of India.�

 

MTS - SHYAM TELECOM

Sistema Shyam teleservices limited is a joint venture company between sistema of 

Russia and Shyam group of India. Currently they operate in the states of Rajasthan,

Tamil Nadu, Kerala, Bihar, West Bengal and Jharkand.

RELIANCE COMMUNICATIONS

Reliance Communications has a reliable, high-capacity, integrated (Both Wireless and

Wireline) and convergent (Voice, Data and Video) digital network. It is capable of 

delivering a range of services spanning the entire infocomm (Information and

Communication) value chain, including infrastructure and services for enterprises as

well as individuals, applications, and consulting.

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RELIANCE INFOCOM

Reliance Infocomm will offer a complete range of telecom services, covering mobile

and fixed line telephony including broadband, national and international long distance

services.

 

SHYAM TELECOM LIMITED

Shyam telecom is pioneer in Telecom Industry. It has revolutionized the industry with

development of innovative products. Shyam group commenced its operations in 1974

to introduce up-to-date telecommunication technology.

SONY ERICSSON

Sony Ericsson mobile communications offers mobile multimedia consumer products

for people who appreciate the possibilities of powerful technology.

SPICE TELECOM

Spice telecom the brand name of spice communications limited is presently operating

cellular phone services in the states of Punjab and Karnataka. Considered as one of 

the best providers of mobile telephony in India.

TATA INDICOM

Tata teleservices ltd offers its products and services to customers across India under 

the name of "Tata Indicom". Tata teleservices limited is India’s leading private basic

service operator.

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TELEMATIC ENGINEERS (P) LTD.

Established in 1993, the TEPL network spans across the central western India, with

service and distribution centres of its own. Since its establishment, TEPL has been

foremost in bringing global technology to the Indian market.

TOUCHTEL

A Bharti group company offering landline, DSL in metros

VIDESH SANCHAR NIGAM LIMITED

VSNL incorporated on April 1, 1986 under the Indian Companies Act, 1956 to take

over the activities of the erstwhile overseas communication services (OCS). The

company operates a network of earth stations, switches, submarine cable systems, and

value added service nodes to provide a range of basic and value added services.

VODAFONE ESSAR 

Vodafone essar in India is a subsidiary of Vodafone group plc and commenced

operations in 1994 when its predecessor Hutchison telecom acquired the cellular 

license for Mumbai. Vodafone essar now has operations in 16 circles covering 86% of 

India’s mobile customer base, with over 34.1 million customers.

YOUR BILL BUDDY

Your bill buddy.com is your one-stop solution for finding the best mobile plan in

market for yourself. Also you can send free sms to your friends.

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ABOUT DOT:

DOT stands for department of telecom. It was started in the year 1992-93.The

department is presently headed by Prof M.N. Srirangaraju, who is supported by a

team of qualified & dedicated staff members.

On the forefront of development & with the advent of technological revolution &

quantum development in the field of electronics & communication due to myriad

complexities of the e-world it was inevitable for the evolution of another field to make

a distinct identity of its own. Thus the ball of development was set into motion & the

telecommunication field gradually assumed a role of pre-eminence which is shared byfew other engineering disciplines in the modern world.

The Department established in the year 1992 emphasized in providing quality

education with the practical aspects of learning given ample importance .The

department encourages tech-savvy Projects which Whet the students appetite for 

technical exploration.

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TRAI:

TRAI stands for Telecom Regulatory Authority of India. TRAI was established in the

year 1997 in pursuance of TRAI (Ordinance) 1997 which was later replaced by an act

of parliament to regulate the telecommunication services. Some of the major 

recommendatory, regulatory & tariff setting.

FUNCTIONS OF TRAI

Functions of TRAI are to make recommendations on the need & timing for 

introduction of new service provider ensure compliance of terms & conditions of 

license, effective management of spectrum, lay down the standards of quality of 

service to be provided by the service providers & ensure the quality of service &

conduct the periodical survey of such service provided by the service providers so as

to protect interest of the Consumers of telecommunication service, ensure effective

compliance of universal service obligations notify the rates at which

telecommunication services in India shall be provided under this act etc.

Recently in exercise of powers conferred by Provision(K) (1) of Section 2 of the

TRAI Act, the Central Government, Vide Notification no S0 44(E) dated 9 th January

2004, has notified Broadcasting & Cable services to be telecommunication service.

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RECONSTITUTION:

I (Amendment) Act, 2000 had led to reconstitution of the authority. It consists of one

Chairperson, two full-time members & two part-time Members.

The present composition of the authority is as follows:

SHRI. NRIPENDRA MISRA

CHAIRPERSON

SHRI A.K. SAWHNEY

MEMBER 

SHRI R.N. PRABHAKAR 

MEMBER 

PROF N. BALAKRISHNAN

PART-TIME MEMBER 

DR RAJIV KUMAR 

PART-TIME MEMBER 

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SOME IMPORTANT & INTERESTING FACTS ABOUT

VODAFONE

Vodafone is the third largest company in this country by market capitalization. This is

remarkable because Vodafone is a relatively new company. Most of the other 

companies in the FTSE 100

(largest 100 companies in the UK) have been around considerably longer.

Most people in this country instantly recognize the Vodafone logo and know what the

company does. Vodafone supplies customers with mobile telephone facilities

including text, games, music, mobile TV, and internet services. In 2005 Vodafone had

around 16 million UK customers, employed over 11,500 people across call centres,

offices and retail shops.

The NAS is less well-known. It is a national charity working with children, adults,

and families affected by autism, and those professionals who work alongside them.

Autism is a complex life long developmental disability affecting an increasing

number of children in the UK. The term autism covers a wide range of behavioral and

communication difficulties. For example people with autism find everyday socialinteraction very difficult.

Their ability to develop friendships is generally limited as is their capacity to

understand other people's emotional expression. People with autism can often have

accompanying learning disabilities but everyone with the condition shares a difficulty

in making sense of the world.

The NAS champions the interests of people with autism and provides services

appropriate to their needs. Around 535,000 people in the UK have autistic spectrum

disorders and 2 million parents, carers and friends are affected. Understanding of the

condition remains limited.

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HISTORY OF VODAFONE:

Vodafone is the world's leading international mobile communications company.

Currently it has operations in 25 countries across 5 continents and 40 partner 

networks with over 260 million customers worldwide.

DURING 1980’S

Vodafone made the UK's first mobile call at a few minutes past midnight on 1 st

January 1985. Within fifteen years, the network was the largest company in Europe

and the largest of its kind anywhere in the world. By the turn of the century, almost

every second UK citizen had a mobile – and a third of them were connected to

Vodafone.

The Vodafone story is one of investment, innovation and award-winning customer 

service. Above all, it’s one of growth and the ability to deliver the tremendous

 benefits of mobile communications, not just in the UK but worldwide.

1982

• The Racal electronics group wins its bid for the private sector UK cellular license. It

sets up the Racal telecoms division and names the new network ‘Vodafone’ to reflect

the provision of voice and data services over mobile phones. Based in Newbury, the

company has less than 50 employees, all in one building.

1985

• The Vodafone analogue network is the first cellular network to launch in the UK,

and the first call is made from St Katherine’s dock in London to Newbury on 1

January 1985.

1987

• Vodafone is recognized as the largest mobile network in the world.

• Vodata is created as the ‘voice and data’ business to develop and market Vodafone

recall, the voicemail service.

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• Vodapage is launched, providing a paging network that covers 80% of the UK 

 population.

1988

• Racal telecomm plc floats on the London and New York stock exchanges.

1989

• Paknet is formed as a joint venture between Racal telecom and cable & wireless.

VODAFONE DURING 1990’S:

1991

• Racal and Vodafone demerge. And the Vodafone group is listed as an independent

company on the London and New York stock exchanges.

• Vodafone and telecom Finland make the world’s first international roaming call.

• Vodafone launches its digital (GSM) mobile phone service – the first in the UK.

1992

• Vodafone and telecom Finland sign the world's first international GSM roaming

agreement.

1993

• Vodafone group international is formed to acquire licenses and supervise overseas

interests.

• Vodafone opens its first high street store.

1994

• Vodata is the first network operator in the UK to launch data, fax and sms services

over the digital network.

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• Vodafone joins the global star consortium to develop and launch a low earth orbiting

satellite mobile phone service.

1996

• Vodafone is the first network operator in the UK to launch a pre-pay analogue

 package.

• Per second billing on the digital network is introduced, as well as options to buy

‘bundled’ minutes and make off-peak local calls to landlines.

1997

• Chris gent succeeds Sir Gerald Whent as chief executive officer of Vodafone group

 plc.

1999

• Vodafone air touch plc is created as a result of a successful merger between

Vodafone group plc and air touch communications Inc.

• On 5 January Vodafone connects the five million customers in the UK.

VODAFONE DURING 2000’S:

2000

• The acquisition of Mannesmann Ag almost doubles the size of the Vodafone group

making it the largest mobile telecommunications company and one of the top ten

companies, by market capitalization, in the world.

• Vizzavi is launched, a 50/50 joint venture between Vodafone air touch and

vivendinet to deliver a multi-access branded internet portal for Europe.

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• Vodafone acquires the largest available 3g license in the UK. In parallel with the

development of 3g, Vodafone announces its intention to offer GPRS (general packet

radio service) to UK corporate customers.

• The global star satellite communications service is launched in the UK.

2001

• Vodafone introduces instant messaging to its networks.

• Vodafone makes the world’s first 3g roaming call between Spain and Japan.

2002

• Vodafone trials its global mobile payment system in the UK Italy and Germany.

• Vodafone launches the first commercial European GPRS roaming service.

• The Vodafone group foundation is launched. The group and its subsidiaries plan to

contribute £20 million to community programmes, guided by the group social

investment policy.

• Vodafone launches Vodafone live! & mobile office, two new consumer and business

 propositions.

• Arun Sarin is selected to succeed Sir Christopher Gent as Chief Executive of 

Vodafone group plc.

2003

• Vodafone live! attracts 1 million customers in its first six months.

• Orange, telefonica moviles, t-mobile, and Vodafone form a new association to drive

interoperable mobile payments.

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2004

• Vodafone launches its first 3g service in Europe with the vodafone mobile connect

3g/gprs data card.

• Vodafone live! With 3g is launched in 13 markets.

2005

• Vodafone simply is launched, giving customers new, easy-to-use voice and text

services.

• Vodafone introduces passport, a new voice roaming price plan.

2006

• The number of Vodafone live! Customers with 3g reach 10 million.

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MANAGEMENT OF VODAFONE

NEW CEO OF VODAFONE:

VODAFONE ANNOUNCES NEW CHIEF EXECUTIVE 

Vodafone group plc today announces that, after five years in the role, Arun Sarin will

 be retiring as chief executive at the end of the company’s AGM on 29th July 2008. He

will be succeeded by deputy chief executive Vittorio Colao.

Arun Sarin became chief executive in July 2003 and over the last five years has led

the company through a period of significant change, both strategic and organizational.

Under his leadership Vodafone has developed and implemented a new strategy to

 become a total communications company, which is already delivering results. As part

of its strategy Vodafone has also expanded into emerging markets including Romania,

Czech Republic, Turkey, and most recently, India where Arun Sarin led the

acquisition of Hutchison essar, which is the largest foreign investment made in the

country. 

In portfolio management, during this time the company also disposed of its businesses

in Japan and Sweden, together with interests in Switzerland and Belgium. In Europe

the new strategy has delivered innovative products, improved revenue and significant

cost reduction.

Organizationally the company has been structured to take advantage of its significant

global footprint by becoming an integrated business with a clear distinction between

global and local activities.

During his time as chief executive the company has also grown its proportionate

customer base from 120 million to more than 260 million globally and over this

  period Vodafone has consistently delivered strong results. Returns to shareholders

over this period have also been very positive with dividends increasing from 1.69p to

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7.51p, an increase of more than 400%. He has also built a new senior management

team and taken the lead on major industry issues, including mobile broadband and

internet services.

COMMENTING, CHAIRMAN SIR JOHN BOND SAID:

“Arun has done a tremendous job as chief executive. He has led the company with

distinction and navigated Vodafone through a period of rapid change. He has

developed a new strategy for the business and significantly expanded our footprint in

emerging markets. The acquisition in India was very well timed and executed. The

 board has a great deal to thank him for and i would like personally to thank him for all

he has done for the business and wish him and his family all the best for the future. In

Vittorio Colao we have a fine successor and I am looking forward to working with

him in his new role.”

ARUN SARIN SAID:

“It has been a privilege to lead Vodafone for the last five years and to have been

involved in the company for such a long time. I feel that I have accomplished what i

set out to achieve, particularly in developing and implementing a new strategy. I am

very proud of what Vodafone and its 71,000 people have achieved and the good

momentum we have in the marketplace. I know that the business is in capable hands

with Vittorio Colao. Having worked with him for many years I know that he has the

experience and vision to take Vodafone on to future success.”

Vodafone group plc also announced today that non executive directors Michael

Boskin and Jurgen Schrempp will not be seeking re-election at the AGM. MichaelBoskin joined the Vodafone board in 1999 on Vodafone’s merger with air touch

communications inc, having served for a number of years previously on the air touch

 board. Jürgen Schrempp became a director of Vodafone in 2000 when Vodafone

completed its acquisition of Mannesmann, having been a member of Mannesmann’s

supervisory board before then.

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Sir John bond said: “I would like to thank Michael and Jürgen for their contributions

and for the different and important perspectives each has brought to our board. Both

have served with distinction and i am very grateful for their tireless work on our board

committees, especially Michael’s chairmanship of the audit.

Committee. Jürgen has, at one time or another, been a member of each of our 

 principal board committees. We wish them both well in the future.”

ARUN SARIN

Arun Sarin, aged 53, graduated from the Indian institute of technology with a BS in

engineering in 1975. In 1978 he gained a MS in engineering and a MBA from the

University of California, at Berkeley.

He started his career as a management consultant before moving, in 1984, to pacific

Telesis group in San Francisco. Commencing in corporate development, he was

instrumental in the company acquiring the first cellular licenses in the us as well as

winning the first cellular license in Germany and a PCN license in the UK. He wassubsequently appointed CFO and chief strategy officer at pacific bell, before moving

on to become vice president and general manager, San Francisco bay area telephone

company, a pacific bell division with 12,000 employees.

Following the demerger from pacific Telesis of the mobile and paging businesses to

form air touch communications, Arun was appointed senior vice president corporate

strategy and development where he developed and implemented a growth strategy

encompassing partnerships and acquisitions, which included the merger with us

west’s wireless business.

On becoming president and CEO, air touch international, Arun was responsible for 

the acquisition of wireless licenses in several overseas territories and establishing the

management teams of these new ventures.

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He then became president of air touch communications where he was responsible for 

managing the cellular and paging operations in 14 countries and was a key negotiator 

in the successful merger of air touch with Vodafone group plc. Within the combined

 business, Vodafone air touch plc, he was appointed CEO US/Asia pacific region,

managing the group’s operations in the US, Asia and Australasia. In addition, he

headed the global mobile internet division, responsible for the introduction of wireless

internet services.

In 2000, with the successful merger of Vodafone air touch’s us businesses with those

of bell Atlantic and GTE to form VERIZON wireless, arun, whilst maintaining a non-

executive directorship of Vodafone air touch plc, became CEO of info space, a

 provider of mobile internet content and directory services.

In 2001 he joined ACCEL-KKR telecom; a telecom investment and management

  business, where he evaluated numerous opportunities in the telecommunications

industry around the world and oversaw the acquisition of bell Canada’s yellow pages

 business.

In April 2003 he became CEO designate of Vodafone group plc and assumed the post

of chief executive on July 30th 2003.

Prior to becoming chief executive, Arun had been a non-executive director of the

GAP Inc, the Charles Schwab Corporation and Cisco systems inc. In July 2005, he

was appointed to the court of directors at the bank of England.

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Vittorio Colao

Vittorio Colao, aged 46, was appointed chief executive, Europe and deputy group

chief executive of Vodafone group plc in October 2006.

Vittorio holds a business degree cum laude from Bocconi university and an MBA

with honors from the Harvard business school.

Between 2004 and 2006 he was chief executive officer of RCS media group in Milan,

a leading media group, publishing newspapers, magazines and books in Italy, Spain,

and France.

Prior to that, Vittorio held the post of regional CEO, south Europe, Middle East and

Africa, of Vodafone group plc, and he was an executive director on the main board.

Before the Vodafone acquisition, Vittorio was COO and CEO of Omnitel Pronto

Italia, now vodafone Italy.

Vittorio spent the early part of his career (1996-98 and 1991-96) at Mckinsey & co,

where he was a partner in the Milan office, working on media, telecommunications

and industrial goods. He headed the finance practice, and was responsible for theoffice recruiting of consultants.

Vittorio worked in 1989/1990 for Morgan Stanley investment bank division, in

London, and Mondadori, the Italian publisher.Vittorio has been a non-executive

director and member of the remuneration committee of Ras insurance, then listed on

the Milan stock exchange (now merged with allianz se), and was previously a non-

executive director and chairman of the remuneration committee of Finmeccanica,

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CHAPTER IV

PRODUCTS & SERVICES OFFERED BY VODAFONE:

PRODUCTS CATEGORY:

1.CHARGERS:

Stay connected wherever you are with the nokia travel charger. It's handy when you're

camping, flying or on the go. It's also ideal if you forget to keep your phone fully

charged.

With most nokia phones now packing cameras, organizers and email, this nifty gadget

will come in handy for more than just talking. And because it's small, you can pack it

in your bag and forget about it - until you run out of juice.

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2.CONNECTIVITY:

Get a great signal at home - without leaning out of the window - thanks to the

Vodafone access gateway.

The gateway simply plugs into your broadband line, boosting your 3g signal right

through your home. It's also small, so you'll hardly notice it's there. Want to share

your signal with friends and family?

If they're on Vodafone you can - up to four people can use the gateway at once.

Vodafone access gateway works with any 3g phone. You'll also need a home

 broadband line, with a minimum speed of 1mbps.

The Vodafone access gateway is also available from just 290 RS a month with select

 pay monthly offers; please pop into a store for more information.

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3.HEADSETS & HEADPHONES:

Get a great signal at home - without leaning out of the window - thanks to theVodafone access gateway.

The gateway simply plugs into your broadband line, boosting your 3g signal right

through your home. It's also small, so you'll hardly notice it's there. Want to share

your signal with friends and family?

If they're on Vodafone you can - up to four people can use the gateway at once.

Vodafone access gateway works with any 3g phone. You'll also need a home

 broadband line, with a minimum speed of 1mbps.

The Vodafone access gateway is also available from just 290 a month with select pay

monthly offers; please pop into a store for more information.

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4.FLEX ARM CRADLE:

Talk in your car - while your hands stay firmly on the wheel. The Vodafone car cradle

is designed for any handset. Just attach the suction cap to your windscreen, or clip the

cradle to your air - vent. No mess. No tools. No hassle.

Once the cradle's attached, twist the bendy arm for the perfect position. It's as easy as

that. Simple and safe, the must-have accessory is, at just 567 RS, very affordable too.

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5.MEMORY CARDS: 

When you need to pack even more into your phone, choose the sandisk 4 GB micro sd

memory card. It has the same dimensions as the 2 GB card, but lets you carry loads

more tunes and photos.

With space for up to 1,000 tracks, there's enough room in this tiny device for all your 

favourites. You can also store, view or transfer photos and video clips - safely and

easily.

Slim, powerful and ultra compatible, the 4 GB micro sd memory card is the ideal

companion for your phone.

 

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SERVICES:

Vodafone’s new telecoms management service - simplifying the management of fixed

and mobile telecoms services.

Vodafone Global Enterprise- – The division of Vodafone which manages the

communications needs of the largest multinational companies worldwide – announces

the launch of Vodafone telecoms management, a new service which combines and

simplifies the management of fixed and mobile telecoms.

Vodafone telecoms management is a fully hosted service designed to remove theoperational complexity of managing the telecoms environment for multinational

 businesses.

Underpinned by Vodafone’s global support and service level agreements, the service

will give multinationals greater visibility and management control over their telecoms

expenditure, as well as improve the quality of service delivered to employees.

The offering will also deliver a single, online management view of both their fixed

and mobile telecoms services. Vodafone consultants will work with customers to

assess and scope their current telecoms vendors and services, then develop a

management plan aimed to deliver greater efficiency and reduce costs.

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ADDITIONAL KEY FEATURES INCLUDE:

• A single online view of spend across all telecoms providers

• Full visibility of telecoms assets such as mobile and fixed devices

• Ability to control and manage mobile devices

• Capability to secure, lock and remotely wipe mobile devices

• Visibility of telecoms vendor contracts and the current contract status

The online management portal is tailored to each organization to ensure that it

interfaces with their existing company processes. For example, the service provides

an employee self-service portal, enabling employees to order new mobile devices and

update their profiles. The process of ordering a device and the type of device that an

employee is allowed to order will be in line with each company’s set approval

guidelines, policies and work flows.

“In this tough economic environment our customers are urgently seeking ways to

reduce cost and simplify their processes,” said Nick Jeffery, director, Vodafone global

enterprise. “Very few global organizations have a complete and accurate view of their 

fixed and mobile telecoms landscape. Our telecoms management service has been

developed in direct response to this need.”

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INTERNET:

MOBILE BROADBAND:

MOBILE BROADBAND VIA YOUR PHONE 

Feel the freedom. Use the internet your way – with full access to VOIP services like

SKYPE™, and peer to peer services like file sharing.

With mobile broadband via your phone, you get a whopping 5 GB each month.

Simply use your phone as normal – and if you have a 3g phone, connect it to your 

laptop to turn your phone into a broadband modem.

Before you get started, you might need to make a few changes to your phone’s

settings – your user manual will have all the details.

Add mobile broadband via your phone – for £20 a month

• 5gb a month – ideal for big downloads

• VOIP and peer to peer services – get full access to SKYPE™, file sharing and

lots more

• One plan for everything – you don’t need a separate USB modem device. Just

use your phone instead

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HOMEBROADBAND:

Vodafone home broadband gives you high-speed internet access and inclusive

anytime landline calls for just 812 RS a month.

With no hidden catches, our customers say its better value than their previous home

 broadband package. 

What do I get?

• Super fast broadband connection (up to 8mb) with unlimited usage

• Inclusive calls to UK landlines any time

• 25% off calls to UK mobiles

• Free UK-based telephone support 24/7

• Broadband modem and micro filters included

All for just 812 Rs per month.

30-Day money back guarantee

We’re so confident Vodafone at home is better value for money than your current

 broadband package, we’ll give you a 30-day money back guarantee. Call us to find

out more.

What about VAT?

Costs shown include vat at 17.5%. Don't worry; you'll only be charged vat at 15% -

while that rate remains.

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PRICING STRATEGIES :

A: MONTHLY PRICE PLANS

B: PAY AS YOU DO PLANS

C: CALL CHARGES WHILE GOING ABROAD

D: PAY MONTHLY CALL CHARGES

E: BUSINESS CALL CHARGES

 

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MARKET SHARE OF MOBILE OPERATORS IN INDIA:2002-

2008

 

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VODAFONE TOP’S THE LIST IN THIS CATEGORY

ABOUT THE MOST POPULAR VODAFONE ZOO-

ZOOS:

SOME INTERESTING FACTS ABOUT ZOOZOOS:

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On first look, these “Zoo Zoos” in Vodafone TV ads may resemble animated cartoon

characters with an alien look or simply a stupid egg-head character with

disproportional white bodies and black dots for eyes and mouth.

But the interesting part is that Zoo Zoos are not animated characters but are actually

slim women actors from local Mumbai theatres, dressed in white costumes that are

stuffed with foam to portray the characters.

These characters are named Zoo Zoos, and are created by O&M. These ads were

directed by Prakash Varma and were launched during the ongoing IPL 2 series.

They are human beings who were made to wear body suits. “the design of the

characters is such that one gets fooled into thinking it is animation,” shrugs Rao,

which was indeed the very illusion that had to be created. “in a sense, it is ‘live’

animation!” He quips, referring to the fact that it was all shot live.

To create large heads they used a material called Perspex, which was again stuffed

with foam. Also,they casted only women and children to play the zoo zoos so that the

thin hands and legs made the heads look even bigger.

SPONSORSHIP

VODAFONE’S PARTNERSHIP WITH MCLAREN MERCEDES

SERIES:

As title sponsor and official mobile partner of the ‘Vodafone Mclaren Mercedes’

team, Vodafone is raising its association with Formula 1 to the ultimate level. We

have committed to a long-term agreement, starting in 2007.

The sponsorship demonstrates Vodafone’s ongoing commitment to the Formula 1

world championship, a sport which continues to deliver massive global television

coverage and which has significant appeal for Vodafone’s consumer and business

customers around the world.

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The title sponsorship including the team name ‘Vodafone Mclaren Mercedes’ and

‘official mobile partner’ of the team gives Vodafone; dominant title sponsorship

 branding on the cars, drivers' and pit crews' overalls and helmets.

As we enter into this exciting new partnership the associative rights acquired provide

unique opportunities that will continue to raise brand awareness through the team

name and branding. The team partnership delivers a powerful integrated marketing

  platform through advertising, hospitality, mobile content, handset offers and

 promotions and through innovative activation will encourage preference and loyalty

amongst Vodafone’s customers.

VODAFONE WITH UEFA CHAMPIONS LEAGUE:

Vodafone is in its second season as official partner and official mobile network of the

UEFA Champions’ League, the world's largest annual football competition.

Vodafone is delighted to be at the forefront of Europe’s premier club competition.

After the successes of last season's UEFA champions league sponsorship and the

agreements announced in April to sponsor the UEFA cup final and UEFA super cup,

Vodafone is looking forward to strengthening its position as a brand passionate about

the beautiful game.

The UEFA champions’ league is the world's greatest club football competition.

During nine months of every year, Europe’s top 32 clubs battle it out for the trophy

that proves they're the best of the best. It's a sponsorship that delivers considerable

value to Vodafone and is highly relevant to most of the Vodafone operating

companies.

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Football is the most popular sport in the world. Huge numbers of Vodafone customers

are passionate about football - and sponsorships help to convert this passion into a

  business

The partnership enables Vodafone to deliver content including video highlights

 packages and goal alerts from all UEFA champions league matches to football fans on

the Vodafone live! With 3g consumer service.

VODAFONE TIE-UP WITH RADIO CHANNEL FEVER 104:

Vodafone tied up with Radio channel FEVER 104 wherein the channel provides with

cash prizes of upto 1 lakh or more which is another promotion strategy adopted by

Vodafone which was a success.

VODAFONE SPONSOR OF ENGLAND CRICKET TEAM:

As our sponsorship of the England cricket team comes to a close, we’ve got an

impressive line up to celebrate the 12th and final year of the partnership. This summer 

England will once again embark on the quest for victory in the ultimate test of any

England cricketer as they take on Australia in the Npower ashes series; and as a

Vodafone customer, you can be with us the whole way.

VODAFONE SOUNDBITES

Vodafone sound bites explore every aspect of the global music scene. Featuring

international artists’ interviews at gigs and festivals, bands’ fantasy group line-ups,

 pre-show rituals and performers describing their first time on stage, the programme

 brings an authentic behind the scenes insight into the world of music.

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Vodafone sound bites is available on tv, via a website (www.mtv-

vodafonesoundbites.com) and on mobile (wap.mtv-vodafonesoundbites.com) as a

series of twenty one, three minute shows. The website and mobile service carry

additional footage, as well as editorial and news elements.

Uniquely the programme is available in seven languages on MTV in Germany,

Hungary, the Netherlands, Portugal, Romania, Spain, Turkey, the UK and Ireland,

Australia, New Zealand and on the mtv European feed, covering sixteen countries!

EFFORTS TAKEN TO BOOST SALES BY VODAFONE

(THE ZOO ZOO SERIES):

Vodafone’s new series of advertisements feature lovable white, large-headed

creatures that have attracted more than 28,500 fans on face book. “They are so cute,”

“they remind me of Casper who was my favourite cartoon.”

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But for all those who think the zoo zoos are animated, here’s the shocker: they are

real people in costume.

Rajiv Rao, Executive Creative Director (South Asia) of Ogilvy & Mather, the agency

that handles Vodafone advertisements, said: “we wanted to make real people look as

animated as possible.”

Bangalore-based nirvana films shot the ads in Cape Town, South Africa, just in time

for IPL. Said Prakash Verma, nirvana’s owner and director of the zoozoo campaign:

“our actors were small-bodied, thin women covered in layers of white fabric. Each

facial expression was made of rubber and pasted on the actors.”

In about 10 days, O&M completed the campaign shooting two-three films a day, each

selling a product or a service offered by Vodafone. A dozen more films are expected

as the league progresses.

The characters, which look like distant cousins of the Pillsbury dough boy, were

enacted by professional ballet artists in white body suits. “What makes them so

endearing is that they are innocent people living in a simple world unlike ours, who

laugh loud when they laugh. And who seem to be in an in-between world of 

animation and reality,” said Mr. Rajiv Rao, executive creative director, O&M.

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A film shot at 20 frames per second made the zoo zoo’s movements hurried and

comical. Of the 29 different zoo zoo ads created for the IPL, there will be a new one

everyday.

CUSTOMER RELATIONSHIP MANAGEMENT

VODAFONE LAUNCHES PHONES FOR THE POOR 

From now onwards millions of people all through the world could access mobile

 phones for the first time with the release of Vodafone’s first ultra-cheap own-branded

 phones. It is said by the company that these phones are cheap enough for poor people

to have. Plus the Vodafone 125 and 225, released recently, are aimed at expanding the

availability of affordable mobile phones in increasing markets.

The mobile phones have been produced for Vodafone by Chinese manufacturer ZTE

Corporation - the first handsets resulting from an agreement between the two

companies announced in December. They will come into view first on Vodafone

networks in Egypt, Romania and South Africa. The Vodafone 125 and 225 are

reported to be consisting with a similar set of basic features, although the 125 has a

monochrome display whereas the 225’s display is colour.

Vodafone is also planning to open access to mobile services for more people in

countries where mobile networks

are the most viable and cost-effective communications service available. The phones

are said to be coming with the price tag of around 1200-2500.

HAPPY TO HELP:

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This is an online 24*7 helpline service for the customers of Vodafone. This provides

help to the customer queries related to the products & services like VAS, talktime,

recharge & etc.

CUSTOMER CARE CENTRE:

This is one of the best way of maintaining a healthy customer relationship adopted by

VODAFONE. They have their own customer care centre’s all over India wherein the

customers directly come to the centre’s regarding the problems they face related to the

 products & services.

 

INTRODUCTION OF I PHONE 1 OF THE BIGGEST EVENT IN

THE HISTORY OF INDIAN TELECOM:

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“We are delighted to announce that the iphone 3g will be available in India from

august 22, 2008. It will be available in 8gb & 16gb models, priced at Rs 31,000 and

Rs 36,100 respectively. ”

And this is just the cost of apple hardware - you will have to pay extra for  data andvoice plans. Airtel will also introduce iphone on the same date but I don’t think if an

iphone 3g is worth that kind of money.

 

 Now that Vodafone officially announced the  price of iphone, a local rep. Shared

details about the different tariff plans available for Vodafone customers of  iphone in

India.

Unlike blackberry, Vodafone offers no "unlimited data" plan for iphone users. That

means if you exhaust your monthly data usage limit, be prepared to shell out an extra

Rs 5 per mb of data exchanged.

The monthly rent for iphone will range from Rs 500 to Rs 1000 depending on your 

internet requirements. The lower plan will provide you with 50 mb of free data usage

while the upper 1000 plan provides 600 mb of data usage.

The above plans are for customers with a postpaid connection.

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If you want to go for a prepaid iphone connection, there’s a iphone data card available

for a monthly rent of Rs 100 but without any free data usage.

The sms and local / std call charges on iphone will more or less be the same as

existing tariffs offered by Vodafone.

Let’s do some maths. If you are heavy web user, the overall cost would work 

something like this - Rs 36000 (for handset) + Rs 12000 (yearly rent) + call charges +

extra data charges + taxes.

Contrast that with a blackberry curve from airtel - Rs 23000 (for headset) + Rs 6000

(yearly rent with unlimited data) + call charges + taxes.

VODAFONE’S TIE-UP WITH B.E.S.T & RAILWAY’S:

As a part of the customer relationship management Vodafone came out with a unique

 plan of providing its customers with utmost ease of paying their bills on the railway

 platforms & in the buses. The customers were have to visit the respective centre’s of 

their area to pay the bills which was time consuming & required some effort. Because

of the initiative taken by Vodafone postpaid customers are very much relaxed that

they do not have to visit the respective centre’s to make the payment.

COMPARISN BETWEEN VODAFONE & LOOP MOBILE

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LOOP MOBILE:

Loop mobile strives for customer satisfaction and business success in the telecom

service field. Apart from offering prepaid, post-paid, roaming, voice sms and pushmail services in the wireless industry, this mobile service company also provides

other values-added services. The communications service company gives an itemized

 bill, which a detailed bill is accounting the outgoing calls, sms, subscribed services

and other such details.

The customer of the mobile service company also gets missed call alerts through sms

alerts, when the phone is switched off or is out of the coverage area/range. Mobile

answer phone service or voice mail service is available for customers not able to

attend calls, and if activated allows the caller to record his/her message. Call

conferencing is also offered by bpl communication, which a conference between two

or more persons.

Other services such as clip, which identifies the caller; popular roaming, which allows

special roaming without any deposit in India and STD/ISD facility to make

national/international calls are provided by the mobile service company. EmergencySTD/ISD services, which provide access to STD/ISD calling without any deposits for 

20 minutes, clir to secure the customers’ numbers from being reflected on caller’s

mobile and fax/data and internet options are also the other value-added services

offered by the communications service company. BPL communication offers national

roaming that allows the customers to get incoming calls while traveling in India and

international roaming to get incoming calls while traveling outside India.

Offers post-paid, prepaid, roaming, voice sms and push mail services. The post-paid

service offered by the mobile service company has several plans to attract customers.

These plans include PAISA VASOOL on BPL mobile at reduced call rates, sms and

mms, talk more with BPL mobile, which is a group plan for the family and friends at

reduced call rates, national family and friends, which offers 60 per cent discount on

std airtime for calls to any one mobile number and night plan.

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Under the prepaid scheme, the communications service company offers MOTS RCC

399 with outgoing calls free on BPL and zone advantage, which allows the customer 

to pick any of the 15 zones, like home, office, college and so on, in order to enjoy

some special privileges of calling and sending sms. The night pack allows customer to

make calls at minimum rates and the sms bundle pack is offered by BPL

communication at very low rates. Roaming with MOTS allows one to subscribe for 

national and international roaming.

E-mails may be unanswered in the inbox and in the present competitive world, quick 

decision are highly essential. The push mail offered by the mobile service company

allows one to access mails even while traveling. The push mail supports Microsoft

exchange, lotus notes, SMTP and imap/pop3 servers.

FUTURE OF VODAFONE:

VODAFONE SUGGESTS FUTURE ANDROID PHONE :

Vodafone have confirmed that their currently looking at developing more android

 phones to complement their new HTC magic handset, and that some future android

devices could appear without google.

In an interview with techradar.com, Vodafone’s Rachel Williams revealed that whilst

the HTC magic arise bundled with all the well-known google services future android

handsets may feature a basic package allowing networks to integrate their own

clients’ software instead.

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Williams also went onto confirm that more Vodafone android phones were likely in

the future, “we are looking at other android devices by joining the open handset

alliance it shows our commitment (to ranging other devices using Androids)”.

VODAFONE APPLICATION STORE :

The Vodafone Mobile Application store was started on 15th February, 2010 in

India, offering over 800 applications under various categories like Entertainment,

Utility, Finance, Social Networking, Games, etc. These are a mix of Indian and

internationally developed applications and serve a diverse range of functions from

daily utilities to pure entertainment.

VODAFONE COMPLETES HUTCH ACQUISITION:

On day when Indian conglomerate Essar threatened legal action against Hutch-Essar 

deal Vodafone’s CEO Arun Sarin met Communications & IT Minister Dayanidhi

Maran & briefed him on the company’s future plans for India.

The British telecom major won the bid to acquire the stake of Hutchison Telecom in

India’s fourth largest mobile operator Hutch – Essar.

Essar sources said the company is considering legal action over the deal on account of 

it being ignored in taking key business decisions.Essar is concerned over Vodafone’s

move to forge ahead with plans like networks sharing without consulting it first.

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“This is just the beginning Maran told PTI about the Hutch-Vodafone deal. India’s

telecom growth story is really interesting. Once the tele-density crosses 25 per cent,

the growth curve will become even steeper.

Maran hoped that the number of mobile users in India which is currently 150 million

would touch 250 million by end of 2007 & 500 million mark in the next 3 years.

Research Methodology

Method used: 1. Case study

A Case study was conducted on Vodafone and vodafone’s rebranding strategies inIndia from Hutch to Vodafone.I used newspapers and various other sources to study

the case.It took around 40 days for me to study and analyse the case.

A Case study can be defined as a careful study of some social unit (as a corporation or 

division within a corporation) that attempts to determine what factors led to its

success or failure.

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Rather than using samples and following a strict set of rules to examine limited

number of variables, case study methods involve an in-depth, longitudinal

examination of a single instance or event: a case. They provide a systematic way of 

looking at events, collecting data, analyzing information, and reporting the results. As

a result the researcher may gain a sharpened understanding of why the instance

happened as it did, and what might become important to look at more extensively in

future research.

Method used: 2. Survey

A Survey was conducted among few mobile subsribers of vodafone and loop mobile

and asked to give in their responses.The survey was conducted in Vashi and

koparkhairane area of Navi Mumbai.

Usually, a survey consists of a number of questions that the respondent has to answer 

in a set format. A distinction is made between open-ended and closed-ended

questions. An open-ended question asks the respondent to formulate his own answer,

whereas a closed-ended question has the respondent pick an answer from a given

number of options.

ANALYSIS

A CASE STUDY ON VODAFONE’S REBRANDING STRATEGIES

IN INDIA:HUTCH TO VODAFONE

Launch of Vodafone Essar

Vodafone is the world’s leading international mobile communications company. It

 presently has operations in 25 countries across 5 continents and 40 partner networks

with over 200 million customers worldwide. Vodafone has partnered with the Essar 

Group as its principal joint venture partner for the Indian market. The Essar Group is

a diversified business corporation with interests spanning the manufacturing and

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service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and

Construction. The Group has an asset base of over Rs.400 billion and employs over 

20,000 people.

Vodafone Essar was launched in India on 21st September 2007. Vodafone was

welcomed in India with the “Hutch is now Vodafone” campaign. The popular and

endearing brand Hutch was transitioned to Vodafone across India. This marked a

significant chapter in the evolution of Vodafone as a dynamic and ever-growing

 brand. This brand unveiled nationally through a high profile campaign covering all

important media.

Vodafone, the world’s leading mobile telecommunication company, completed the

acquisition of Hutchison Essar in May 2007 and the company was formally renamed

Vodafone Essar in July 2007. The transition from Hutch to Vodafone is probably the

largest brand change ever undertaken in this country and arguably as big as any in the

world. It is even larger than Hutch’s own previous brand transitions. The migration

from Hutch to Vodafone was one of the fastest and most comprehensive brand

transitions in the history of the Vodafone Group, with 400,000 multi brand outlets,

over 350 Vodafone

stores, over 1,000 mini stores, over 35 mobile stores and over 3,000 touch-points

rebranded in two months, with 60% completed within 48 hours of the launch.

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The Vodafone mission is to be the communications leader in an increasingly

connected world – enriching customers’ lives, helping individuals, businesses and

communities be more connected by delivering their total communication needs.

Vodafone’s Marketing Strategies: Hutch to Vodafone

Vodafone’s new advertising campaign in India carried on with the same popular pug

that has become a brand ambassador for Hutch. ‘Where ever you go, our network 

follows,’ was the previous slogan with the pug following the child wherever he goes.

 Now, with Hutchison Essar becoming part of the Vodafone Group, the new campaign

had started with Vodafone Essar earmarking Rs. 2.5 billion on the transition from

Hutch to Vodafone. The main message of the brand transition exercise: The newVodafone is the same old Hutch. In the advertisement, the pug sees a new home when

it returns after an outing and feels the change is better. The new catch phrase will be

‘Make the most of now.’

Vodafone had tied up with Star India to run a complete roadblock of its fresh

campaign on the entire network by unveiling the 24-hour nationwide rebranding

campaign. Vodafone used all of the commercial airtime across all 13 channels in five

languages (Hindi, Tamil, Bengali, Marathi and English) from 9 pm on 20 September 

to 9 pm on September 21. This exercise included TV commercials, transition bumpers

and contest spots to promote the Vodafone Essar brand. Commercial spots had also

 been purchased on Sony.

Conventionally awareness for a new brand takes some time to build. However,

Vodafone wanted to achieve this task at the shortest possible time. Hence, Maxus and

Star Network worked closely to address this challenge and came up with the idea

wherein during the day of the launch a complete roadblock on the Star Network 

channels was conceptualized. Considering that the Star Network is the lead network 

in India, this was the most apt platform for Vodafone launch. This strategy helped not

only in achieving build rapid brand awareness but also breaks the clutter during such

an important launch in the most happening category – telecom. This is a first of its

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kind mega media initiative in India by any brand. While the campaign was heavy on

television, it also included all other media vehicles. The print campaign kicked off on

21 September, a day after the television splash.

While the brand campaign had been addressing the transformation, the Company, on

the other hand was swiftly preparing for a price war in the Indian telecom space.

Indeed, it was preparing to provide mobile handsets to new subscribers at ultra-cheap

 prices, ranging from about $19 to $25.

Vodafone Essar launched low priced cell phones in India under the Vodafone brand,

and also co-branded handsets sourced from major global vendors. By bringing in

millions of low-cost handsets from across the globe into India, Vodafone Essar distributed bundled handsets through its existing 400,000 distribution outlets. By

flooding the market with its low-cost handsets, Vodafone also became a mass mobile

 phone brand like Nokia, Samsung, Motorola, and Sony Ericsson in addition to

continuing as telecom services provider.

Previously, similar handset-driven expansion strategies to grow subscriber bases were

adopted by CDMA players, like RCOM and Tata Teleservices. Vodafone is the first

GSM operator to follow suit.

The Vodafone mission is to be the communications leader in an increasingly

connected world – enriching customers’ lives, helping individuals, businesses and

communities be more connected by delivering their total communication needs.

Vodafone’s logo is a representation of that belief – The start of a new conversation, a

trigger, a catalyst, a mark of true pioneering.

Vodafone’s Advertising Strategies: Hutch to Vodafone

Advertising is probably one of the most frequently used vehicles for Rebranding, as it

is fairly easy, flexible and quick to change. It is a powerful way of reaching a broad or 

targeted audience quickly and is effective at signalling a change in positioning,

however real or broad that may be. There are many examples of where advertising has

either repositioned or strengthened brands, other good examples of where advertising

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has built a new position for a brand or built a strong emotional link with the public are

where companies have created a sort of soap opera out of their advertising.

The Advertising agency of Hutch and now Vodafone, Ogilvy & Mather (O&M), had

a two-fold task to achieve: announce the entry of Vodafone into India and highlight

the metamorphosis of Hutch into Vodafone. O&M realised that they had a fantastic

 property in the Hutch pug, which they had been using for about five years. Therefore,

to show the transition from Hutch to Vodafone, O&M launched a rather direct,

thematic ad showing the trademark pug in a garden, moving out of a pink coloured

kennel which symbolised Hutch making his way into a red one that is the Vodafone

colour. A more energetic, chirpier version of the ‘You and I’ tune associated with

Hutch was played towards the end, and it concludes with ‘Change is good. Hutch is

now Vodafone’.

O&M has also rolled out four Commercials featuring Hutch’s animated boy and girl,

‘introducing’ the new brand’s logo to consumers. The four creatives which were of 

five seconds each included the duo peeping over a wall to see the logo; parasailing

with the logo flying high behind them; releasing a rocket bomb wherein the explosion

reveals the logo; and lastly, drawing curtains aside to show the logo.

Four other ads with the pug did the rounds of telly screens. These five and 10 second

spots cast the dog in situations where he, literally, saw red, using the colour as a

visual mnemonic to remember the brand by. The pug was shown in a red basket,

 popping up from a red cart, drying himself on a red mat, and hiding in a red blanket.

Each of these made use of the ‘Hutch is now Vodafone’ tagline.

The print ads, in all major languages in several leading dailies, were keptunbelievably simple: a still shot of the pug inside a red kennel. The same creative was

used in outdoor hoardings as well, in all the 16 circles in which Vodafone now

operates.

It wasn’t easy integrating Vodafone with Hutch; the latter, as is known, is a subtle,

understated brand, while globally, Vodafone represents high energy, dynamism and

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young vitality – all represented by its bright red speech mark logo. And so they put in

elements such as a more energetic tune and feel to the ads.

A few advertisements include:

• Hutch is now Vodafone: If you watch any of the star channels or tuned into

20-20 world cup, you would have seen this ad. On 11 February 2007,

Vodafone agreed to acquire the controlling interest of 67% held by Cheung

Kong Holdings in Hutch-Essar for US$11.1 billion and now had to rebrand

itself so it has decided to run a new ad series which piggy banked on Hutch’s

dog mascot and the theme “Change is Good”. This required nearly 250 crores

of spending by Vodafone but they have successfully painted the town red. Aninteresting part of this campaign was on the opening day roadblock where they

made a deal with Star India so that besides them no other commercials were

aired (apart from in-channel promos) on the Star India’s channels for 24 hours.

• Vodafone Valentine Day Special Ads: Vodafone had released a simple and

sweet ad for musical greetings targeted at couples during the valentine week 

the feature of this campaign is its simplicity and believability and is quite well

received. It uses the positioning “Make the most of now” enjoy the video

• Vodafone Chota Credit Ink Ad: This new ad had come as refreshing change

and more so that this ad takes a very refreshing look at school and at fountain

 pens. This ad creates a wonderfully subtle message which really puts the point

of chota (small) credit across.

2.SURVEY

PROBLEMS FACED BY LOOP CUSTOMERS:

BILLING PROBLEMS:

I have 2 mobile numbers from bpl mobile. I have given auto pay from my credit card

so as to there is no delay in bill payment. This was working fine till November 06.

Since December every time bpl comes back saying that my bank declines the payment

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i had check with my bank they are saying that my card is in active mode has large

limit than bpl mobiles bill still bpl disconnects my connection. This has happened 5-6

times. I have a confirmation from my bank that there is no problem in my card. I have

written to bpl at least 10times but none of their senior level people looked in this I am

suffering even monetary losses due to this & frustration. It feels like they want to

harass you. I have very clean record of bill payment & not even a late payment as I

have always kept my bill payment on auto pay. I have submitted this auto pay to their 

Malad gallery but I don’t know why their operations dept or customer care dept are

not able to solve this. My sincere request to all new mobile connection buyers to read

through my complaint.

BY AJAY PATANKAR 

REDUCING BALANCE WITHOUT ANY CONFIRMATION:

I was in Germany for about two months during which barring one or two numbers no

one could reach me despite activating international roaming on my cell. This caused a

lot of inconvenience and I had to pay additional money to make phone-calls.

But then on 9th November suddenly my balance went off from Rs. 2,500 to a negative

 balance after sending and receiving one sms. I logged a complaint on the onlinesystem for which i receive two apparently unique complaint numbers doc-c-11117465

and doc-c-111121812 which itself speaks a lot about the complaint management

system.

After returning when I called the absolutely useless help desk and explained the

situation to several executives over and over again, they finally gave me the two

numbers on which apparently i had spoken. I tried both these numbers here locally

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from my land line- one number is out of service and the other is a fax line. First of all

i could not receive any calls while i was in Germany and then these numbers that were

given by the help desk are not even functional numbers.

I am really annoyed now and its getting worse cause today I have had another debit of 

Rs. 99 for activating an inactive international roaming.

BY D.RANADE

BAD SERVICE:

I am prepaid subscriber , I had given my documents 3 days back , after that they send

me a message your request could not proceeded please call mobile assist 0n 555, after 

that last night they suspended my both prepaid line , when i visit Mahim gallery they

said signature is not there on application form , I signed on application & they

 promised me that my line will be activated within an hour but still it is suspended

soplease i request do not use BPL mobile. Now i have already taken airtel card & i am

not going to use bpl anymore. Airtel & Vodafone is best.

PROBLEMS FACED BY VODAFONE CUSTOMERS:

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Anyone experiencing problems with Vodafone today, no sms and cannot receive any

calls, cannot get through to CS.

Chris

 No problems in derby. Could be a local problem.

FINDINGS FROM SURVEY

• From the Survey,I found out that most of the loop mobile customers were

unhappy.

• Most of the Loop mobile customers were facing billing problems.

• The service provided by Loop mobile was very bad and customers had to wait

for many days to get things done like activation of their sim cards.

• All of the vodafone customers were very happy with the service provided by

Vodafone.

• Customers loved the Value added services of Vodafone.

FINDINGS FROM CASE STUDY

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• Vodafone was already a well-established brand before entering into India and

this helped the brand successfully sustain in the market after acquiring hutch

essar.

The marketing strategies of Vodafone with the help of Ad campaign “Hutch isnow Vodafone” helped the customers know about the transformation.

• It is one of the biggest brand change and even the fastest with 60% completed

within 48 hrs.

• After acquiring Hutch,Vodafone launched two small budget mobile phones in

India named 128 and 228 FM.

• Vodafone also launched a number of value added services which proved very

successful due to the “ZOO-ZOO “ad campaign.

SUGGESTIONS AND RECOMMENDATIONS

According to the survey and the case study on Vodafone,I recommend the following:

• Advertisement for “value added services” with the help of the ad campaign

“ZOO-ZOO” was repeated during IPL 3 was repeated which didn’t prove to

 be much successful.Vodafone should avoid repeating ad campaign.

• The postpaid mobile customers are not informed before the due date of their 

 bill,so they should be informed about the due date of their bill before they are

disconnected;though temporarily.

• The company can distribut free sim cards so that new customers can use the

services which can further extend their customer base.

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• Vodafone can provide services like payment of credit and debit cards,other 

electricity bills through mobile as provided by Airtel.

• Contests with exciting prizes and rewards so as to increase brand awareness.

CONCLUSION:

Vodafone with the help of its correct marketing strategy & quality products &

services at an affordable price is one of the world’s leading telecom companies with

the customer base of over 450 million & the future plans & policies of Vodafone will

help the company to achieve its target of adding 800 million by the end of 2012.

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BIBLIOGRAPHY:

SOURCES OF INFORMATION:

INTERNET & NEWSPAPERS

I INTERNET:

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WWW.GOOGLE.COM

WWW.VODAFONE.CO.UK  

WWW.BUSINESS-STANDARD.COM 

WWW.WIKIPEDIA.COM

II NEWSPAPERS:

BUSINESS STANDARD