Study and Comparative Analysis of Special Loyalty Program run by
telecom operators
Submitted By
RITESH GOYAL
UNDER THE GUIDANCE OF
Prof. Sunita Srivastava
A PROJECT SUBMITTED IN PART COMPLETION OF
PGDM TO THE
Chetana’s Institute of Management &
Research
Bandra (East), Mumbai 400 051.
July 2010
DECLARATION
This is to declare that the study presented by Ritesh
Goyal to Chetana’s Institute of Management and
Research, in part completion of the PGDM under the title
“Study and Comparative Analysis of Special Loyalty
Program run by telecom operators” had been done under
the guidance of Prof. Sunita Srivastava, HOD (Marketing)
- Chetana’s Institute of Management & Research, Bandra
(East), Mumbai and Mr. Amit Doria, Product Manager -
Vodafone Essar Digilink Ltd.
Ritesh Goyal
CERTIFICATE
This is to certify that the study presented by RITESH
GOYAL to the Chetana’s Institute of Management and
Research, in part completion of the PGDM under the title
“Study and Comparative Analysis of Special Loyalty
Program run by telecom operators” has been done under
the guidance of Mr. Amit Doria, Product Manager -
Vodafone Essar Digilink Ltd.
The project is in the nature of original work that has not
so far been submitted for any Diploma of Chetana’s
Institute of Management & Research or any other
University / Institute. References of work and related
sources of information have been given at the end of
each chapter.
Prof. Sunita Srivastava, Dr. M. V. DeshpandeHOD (Marketing) - CIMR Director - CIMR
ACKNOWLEDGEMENT
The Project Title “Study and Comparative Analysis of Special Loyalty Program run by telecom operators” has been conducted by me during 19th May, 2010 to 18th July, 2010 at Vodafone Essar Digilink Ltd. I have completed this project, based on the Primary research under the guidance of Mr. Amit Doria, Product Manager - Vodafone Essar Digilink Ltd. Jaipur and Prof. Sunita Srivastava, Chetana’s Institute of Management & Research, Bandra (East), Mumbai.
I owe enormous intellect debt towards my guides Mr. Amit Doria and Prof. Sunita Srivastava who have augmented my knowledge during my project course. They have helped me learn about the process and giving me valuable insight.
I am obliged to all those who have assisted and guided me during the course of research. My increased spectrum of knowledge in this field is the result of their constant supervision and direction that has helped me to absorb relevant and high quality information.
I would like to thank all the respondents without whose cooperation my study/project would not have been possible.
Last but not the least, I feel indebt to all those persons and organizations which have provided helped directly or indirectly in successful completion of this study.
Dated: RITESH GOYAL
Project Details
Trainee:-
Name: - Ritesh Goyal
Programme: - PGDM 2009-11
Project:-
Company Name: - Vodafone Essar Digilink Ltd.
Project Title: - Measuring various competition schemes and comparison of Special loyalty program of different telecom operators
Area of the Project: - Jaipur Rajasthan
Project Duration: - 2 month (19th May’10 to 18nd July’10)
Office:- Vodafone Essar Digilink Limited, Gaurav Tower, 5th Floor, Malviya Nagar, Jaipur, Rajasthan
College Guide Details Industry Guide Details
Guide's Name: - Prof. Sunita Srivastava Mr. Amit Doria.
Designation: - H.O.D. Marketing Product Manager
College / Company: - Chetana’s Institute of Vodafone Essar
Management & Research Digilink Limited
TABLE OF CONTENTS
PagesTitle PageDeclarationCertificateAcknowledgementProject DetailTable of contentExecutive summary
Chapter 1: Introduction 3
1.1) Introduction to Company………………………………………………………………………. 41.1.1) Global Telecom Industry: Overview …………………………….................... 41.1.2) An Introduction – Indian Telecom Industry…………...……………….......... 8
i. Reform in Telecom Sector……………………...……………………….. 9ii. Major Players…………………………………..…………………........... 10
iii. Important Milestones………………………….…………………............ 111.1.3) Vodafone Essar Ltd……………………………………..…………................... 131.1.4) Vodafone Group plc…………………………………….…………................... 151.1.5) Essar Group…………………………………………….…………................... 161.1.6) History……………………………………………………………………......... 161.1.7) Milestones……………………………………………………………………... 18
1.2) Objective of Study…………………………………………………………........................ 191.3) Scope of Study…………………………………………………………………................. 201.4) Justification of Study……………………………………………………………….......... 201.5) Limitation of Study……………………………………………………………................. 211.6) Structure……………...…………………………………………………………………... 22
Chapter 2: Literature Review 24
2.1) About Topic………………………….………………........................................................ 252.2) Telecom Industry…………………………………….………………............................... 252.3) Current Scenario………………………………….….………………….......................... 292.4) Future Projections……………………………….…..…………....................................... 302.5) Importance of Schemes…………………………………...….………………………….. 31
2.5.1) Loyalty Programs……………………………………………………………….. 322.5.1.1) Vodafone- Score Kya Hai………..……………………………. 33
2.5.1.2) Idea – Rajwada……………………..………………………….. 432.5.1.3) Airtel – Navratna………………….……………….................... 50
2.6) General Terms and Conditions………………………………………………………….. 642.7) General Privileges & Benefits…………………………………………………………... 66
Chapter 3 Methodology and Analysis 67
3.1) Methodology……………………………………………………………………………….683.2) Research Technique…………………………………………………..................................703.3) Comparison of Vodafone SKH with Airtel Navratna………………….………………….71
3.3.1) Parameters in terms of Likes / Dislike……………………………….................... 763.3.2) Degree of Significance………………………………………….………………... 803.3.3) Data Analysis…………………………………………………………….……….. 81
3.4) SWOT Analysis of SKH………………………………………………............................... 82
Chapter 4 Conclusion of Report 83
4.1) General Finding………………………………………………………………....................844.2) Interpretation………………………………………………………………….................... 844.3) Recommendation………………………………………………………………………….. 874.4) Conclusion……………………………………………………………................................ 88
Chapter 5 Bibliography 89
Appendix: Questionnaire on “Comparison of Special Loyalty Program”.
INDEX OF FINGERS
Chapter 1: IntroductionFig 1.1: Distribution of global Mobile Services Revenues……………………………… 6Fig 1.2: Subscriber Base of Top 20 Operators in World……………………………….. 7Fig 1.3: Organisation Structure of Vodafone Essar Ltd……………………………….. 14Fig 1.4: Map showing Vodafone Enterprise footprint…………………………………. 15
Chapter 2: Literature ReviewFig 2.1: Market Share – Rural and Urban……………………………………………… 26Fig 2.2: Wireline Market Share - Rural and Urban……………………………………. 27Fig 2.3: Wireless Market Share - Rural and Urban……………………………………. 28Fig 2.4: Wireless Operators Market share……………………………………………… 28
Chapter 3 Methodology and AnalysisFig 3.1: Comparison of Category System……………………………………………….. 72Fig 3.2: Comparison based on Point / Runs System……………………………………. 73Fig 3.3: Comparison on activation system…………………………………………….... 74Fig 3.4: Comparison on Bonus Card System…………………………………………… 75Fig 3.5: Comparison on Tertiary Points / Runs………………………………………… 76Fig 3.6: Comparison based on party…………………………………………………….. 77Fig 3.7: Comparison based on Gifts…………………………………………………….. 78Fig 3.8: Comparison based on program………………………………………………… 79
INDEX OF TABLES
Chapter 2: Literature ReviewTable 2.1: Subscriber Base and Teledensity – Rural and Urban………………………. 26Table 2.2: SKH Second Recharge v/s Runs…………………………………………….. 36Table 2.3: SKH Bonus Card…………………………………………………………….. 39Table 2.4: Bonus Card sold v/s Runs…………………………………………………… 40Table 2.5: Rajwada Points System……………………………………………………… 46Table 2.6: Rajwada Criteria System…………………………………………………….. 47Table 2.7: Rajwada Prices System………………………………………………………. 48Table 2.8: Navratna Points System……………………………………………………… 54Table 2.9: Navratna Privileges…………………………………………………………... 57
Chapter 3 Methodology and Analysis Table 3.1: Degree of Significance……………………………………………………….. 80Table 3.2: Analysis is on the basic of Degree of significance and Liking / Disliking……81
Executive summary
The Indian telecom industry has been regularly beating targets. Recently, the telecom subscriber
base exceeded the targeted 500 million almost 15 months before the end – 2014 deadlines. Going
by the current growth, it is estimated that India will have 800 million mobile subscribers in 2012.
In wireless segment GSM, CDMA and FWP wireless subscriber base has increase from 471.73
million in September 2009 to 488.40 million at the end of October 2009 at a monthly growth rate
of 3.53%.
Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994
when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company
now has operations across the country with over 106.34 million customers. Vodafone is the
world's leading international mobile communications group with approximately 341 million
proportionate customers as on 31 March 2010. Vodafone currently has equity interests in 31
countries across five continents and around 40 partner networks worldwide. Vodafone Essar is
owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in
terms of revenue behind Bharti Airtel, and third largest in terms of customers. Vodafone Essar
Digilink Limited operates as a subsidiary of Vodafone Essar Limited in Rajasthan, UP (EAST)
Haryana after acquiring AirCel Digilink in 2003. TRAI Report on the Indian Telecom Services
Performance Indicate that Vodafone gross revenue change Rs 5,500.82 crore from quarter March
2009 to Rs 5,470.53 in quarter June 2009.
This is an internship report regarding study and comparative analysis of various loyalty program
run by telecom operators for special category retailers. The main objective of this project is to
compares this scheme and come up with precise suggestion for Vodafone - Special Loyalty
Program so that Vodafone take the adequate action in order to enhance the sales to withstand the
highly competitive market situation and amplify its market share.
Project basically deals with identifying various internal and external factors that are effects
loyalty program. Since last decade the telecom industry in India has been totally revolutionized.
The industry has became one of the fastest growing industry. This has made the research work as
interesting as it is challenging. The cut throat market competition for expansion of overall
subscriber base has resulted to the everyday launch of new and innovative schemes by the
service operators.
As usual being the king the customer (for company it’s a retailer) has variety of choices and
services at their disposal. Such a competitive market situation, has made the customer (for
company it’s a retailer) to behave in a highly volatile manner. Thus to sustain in the market, any
telecom operator company today is required to continuously evolve and innovate both the
product and the schemes in order to be upgraded on retailers expectation scale. One of the result
of such an innovation is the schemes called,
Vodafone - ‘Score Kya Hai’ (SKH)
also the subject of my study.
Score Kya Hai (SKH) is designed keeping in mind the interest of all Vodafone partners across
the country. These retailers are top retailers partners in the country, the short listed on the basis
of Activation count, Lapu Recharge and Bonus Card.
My Research Methodology involved two basic approaches: ‘study various competition schemes’
and the ‘comparing special loyalty program’. As a part of study various competition schemes, I
studied the Airtel – ‘Navratna’ and Idea – ‘Rajwada’. The research technique which used are
Judgment and Snowball sampling. For comparing loyalty program, I had compare Navratna with
SKH on different parameters, the research technique which used is Stratified sampling. In this
questionnaire survey was conducted within the Jaipur (Rajasthan) region to identify the retailers’
needs and requirements and also to know about their perception regarding the schemes.
Chapter 1: Introduction
1.7) Introduction to Company1.1.1) Global Telecom Industry : Overview1.1.2) An Introduction – Indian Telecom Industry
iv. Reform in Telecom Sectorv. Major Players
vi. Important Milestones1.1.3) Vodafone Essar Ltd1.1.4) Vodafone Group plc1.1.5) Essar Group1.1.6) History1.1.7) Milestones
1.8) Objective of Study1.9) Scope of Study1.10) Justification of Study1.11) Limitation of Study1.12) Structure
1.1) Introduction to Company
1.1.1) GLOBAL TELECOM INDUSTRY: AN OVERVIEW
Think of telecommunications as the world's biggest machine. Strung together by complex
networks, telephones, mobile phones and internet-linked PCs, the global system touches nearly
all of us. It allows us to speak, share thoughts and do business with nearly anyone, regardless of
where in the world they might be. Telecom operating companies make all this happen.
Not long ago, the telecommunications industry was comprised of a club of big national and
regional operators. Over the past decade, the industry has been swept up in rapid deregulation
and innovation. In many countries around the world, government monopolies are now privatized
and they face a plethora of new competitors. Traditional markets have been turned upside down,
as the growth in mobile services out paces the fixed line and the internet starts to replace voice as
the staple business.
Plain old telephone calls continue to be the industry's biggest revenue generator, but thanks to
advances in network technology, this is changing. Telecom is less about voice and increasingly
about text and images. High-speed internet access, which delivers computer-based data
applications such as broadband information services and interactive entertainment, is rapidly
making its way into homes and businesses around the world. The main broadband telecom
technology - Digital Subscriber Line (DSL) - ushers in the new era. The fastest growth comes
from services delivered over mobile networks.
Of all the customer markets, residential and small business markets are arguably the toughest.
With literally hundreds of players in the market, competitors rely heavily on price to slog it out
for households' monthly checks; success rests largely on brand name strength and heavy
investment in efficient billing systems. The corporate market, on the other hand, remains the
industry's favorite. Big corporate customers - concerned mostly about the quality and reliability
of their telephone calls and data delivery - are less price-sensitive than residential customers.
Large multinationals, for instance, spend heavily on telecom infrastructure to support far-flung
operations. They are also happy to pay for premium services like high-security private networks
and videoconferencing.
Telecom operators also make money by providing network connectivity to other telecom
companies that need it, and by wholesaling circuits to heavy network users like internet service
providers and large corporations. Interconnected and wholesale markets favor those players with
far-reaching networks.
DISTRIBUTION OF GLOBAL MOBILE SERVICES REVENUES
Fig 1.1: Distribution of global Mobile Services Revenues
369.33
252.3
171
160.1153.4123.1
109.7
90
83.88
71.4
67.2
66.8
66.0265.7
63.361.4
53.54 5352.842.81
Subsciber Base of Top 20 Operators in World(in millions)
China Mobile (China)Vodafone (United Kingdom)Telefónica / Movistar / O2 (Spain)China Unicom (China)América Móvil (Mexico)T-Mobile (Germany)Orange / France Télécom (France)Telenor (Norway)MTS (Russia)AT&T Mobility (United States)Verizon Wireless (United States)Bharti Airtel (India)SingTel (Singapore)Telecom Italia / TIM (Italy)VimpelCom (Russia)MTN Group (South Africa)NTT DoCoMo (Japan)Orascom Telecom (Egypt)Sprint Nextel (United States)Telkomsel (Indonesia)
Fig 1.2: Subscriber Base of Top 20 Operators in World
1.1.2) AN INTRODUCTION - INDIAN TELECOM INDUSTRY
The telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation. Telecommunication is one of the prime support services
needed for rapid growth and modernization of various sectors of the economy. It has become
especially important in recent years because of enormous growth of information technology and
its significant potential for the impact on the rest of the economy. In the past decade or so the
distinction between communications & IT has been diminishing with emerging common
infrastructures blurring the differentiation between content & carrier methods. At the same time,
as has been the case in most of the developed world, the combination of enhanced computing
power and improved telecommunications- equated by some to the introduction of steam power in
the 18th century and electricity in the 19th, has spurred a major improvement in the productive
capacities of the economies.
India is perceived to have a special comparative advantage in information technology and in IT
enabled services. The extent of advantage depends critically on high quality telecommunication
infrastructure. Telecom infrastructure is treated as a crucial factor to realize the socio-economic
objectives in India.
i) Reforms in Telecom Sector:
Telecommunications is one of the few sectors in India, which has witnessed the most
fundamental structural and institutional reforms since 1991. Considering the great potential for
the growth of telephone demand with the accelerated growth of economic activities, the
Government of India announced the National Telecom Policy in 1994 and the New Telecom
Policy in 1999. The National Telecom Policy provides for private sector participation to
supplement the efforts of DoT in basic telephone services. The opening up of the basic services
provided a big opportunity for private & foreign investors. More policy initiatives included
Addendum to NTP -1999, Broadband Policy 2004, amendment to Broadband Policy 2004 etc.
To a great extent the perceived linkage between communications, information technology and
growth has shaped the Indian telecommunications policy, market perception and consequently
industry activity. Access to information infrastructure has been seen as a prerequisite not just to a
robust IT industry but also to broad based growth and competitiveness in all other services and
industries. The entire sector is now open to unrestricted competition in all segments except
cellular services where spectrum is a limiting factor. The reforms process in the telecom sector is
still on, aiming to remove the balance hurdles and limitations. One such hurdle is ensuring
expansion of sustainable connectivity in rural areas. To encourage rural telephony, the
government has set up a universal service fund earlier. Broadband policy has been announced
with a view to providing better quality of services. One of the aims of this policy is to make rural
connectivity remunerative and sustainable.
The opening of the sector has not only lead to rapid growth but also helped a great deal towards
maximization of consumer benefits. The tariffs have been falling continuously across the board
as result of healthy and unrestricted competition. Besides, as a result of the various measures and
initiatives taken by the Government, India is now fast emerging as one of the leading telecom
nations. Since beginning of the Ninth Plan, the telecom services have registered a consistently
high growth rate of more than 20 percent per annum. The robust private sector participation has
resulted in unprecedented growth in the cellular and WLL services. The growth of network has
been very encouraging but still a lot need to be done so that India remains a front- runner in
information revolution.
ii) Major Players
There are three types of players in telecom services:
• State owned companies (BSNL and MTNL).
• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,).
• Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Idea Cellular, BPL
Mobile, Spice Communications, etc.).
iii) Evolution of the industry-Important Milestones
(History of Indian Telecommunications)
1851: First operational land lines were laid by the government near Calcutta (seat of British
power).
1881: Telephone service introduced in India.
1883: Merger with the postal system.
1923: Formation of Indian Radio Telegraph Company (IRT).
1932: Merger of ETC and IRT into the Indian Radio and Cable Communication Company
(IRCC).
1947: Nationalization of all foreign telecommunication companies to form the Posts, Telephone
and Telegraph (PTT), a monopoly run by the government's Ministry of Communications.
1985: Department of Telecommunications (DOT) established an exclusive provider of domestic
and long-distance service that would be its own regulator (separate from the postal system).
1986: Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar
Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam
Limited (MTNL) for service in metropolitan areas.
1997: Telecom Regulatory Authority of India created.
1999: Cellular Services are launched in India. New National Telecom Policy is adopted.
2000: DoT becomes a corporation, BSNL
2000: National Long Distance opened for private participation without any restriction on the
number of operators.
2002: Universal Service Obligation Fund
2003: Unified Access Services: Unified access license regime operators are free to provide,
within their area of operation, services, which cover collection, carriage, transmission and
delivery of voice and/or non-voice messages over Licensee’s network by deploying circuit,
and/or packet switched equipment.
2004: Broadband Policy: The main emphasis is on the creation of infrastructure through various
technologies that can contribute to the growth of broadband services. These technologies include
optical fibre, Asymmetric Digital Subscriber Lines (ADSL), cable TV network; DTH etc.
1.1.3) Vodafone Essar Ltd:
Vodafone Essar is a one of the major player of mobile telecommunications in India.
Headquarter located in Mumbai Maharashtra, India. Vodafone Essar formerly known
as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based
in Mumbai. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second
largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms
of customers.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.
Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 23 of the country's 23 license areas. It is among
the top three GSM mobile operators of India.
Vodafone Essar is spending somewhere in the region of Rs. 250 crores on this high-profile
transition being unveiled today. Along with the transition, cheap cell phones have been launched
in the Indian market under the Vodafone brand. The company also plans to launch co-branded
handsets sourced from global vendors as well. China's ZTE, which is looking to set-up a
manufacturing unit in the country, is expected to provide several Vodafone handsets in India.
Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.
1.1.4) Vodafone Group plc
Vodafone Group plc is a British multinational mobile network operator headquartered
in Newbury, England. Vodafone is the world's largest mobile telecommunication network
company, based on revenue, and has a market value of about £71.2 billion (November 2009). It
currently has operations in 31 countries and partner networks in a further 40 countries. Based on
subscribers, it is the world's second largest mobile phone operator behind China Mobile and
over Telefónica, with over 427 million subscribers in 31 markets across 5 continents as of
2009. In the UK, its home ground, Vodafone has badly underperformed in the last few years due
to brisk change in administration. It has slipped from first to third largest telecom operator
generating a revenue of £4.9 billion from its 18.7 million customers in 2008-09. As of March 31,
2009, the company employs more than 79,000 people worldwide.
The name Vodafone comes from voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones".
Vodafone owns 45% of Verizon Wireless, the largest wireless telecommunications network in
the United States, based on number of subscribers. The Total Revenue is more than £44.47
billion (2010), Profit is more than £8.645 billion (2010), Total assets is more than £156.98
billion (2010) and Total equity is more than £90.38 billion (2010). Vodafone is managed by Sir
John Bond (Chairman), Vittorio Colao (CEO), John Buchanan (Deputy Chairman) and Andy
Halford (CFO)
A map showing Vodafone Global Enterprise’ footprint. Vodafone Operating Countries Vodafone's partners and affiliates
Fig 1.4: Map showing Vodafone Enterprise footprint
1.1.5) Essar Group
The Essar Group is a multinational conglomerate corporation in the sectors of Steel, Energy,
Power, Communications, Engineering Procurement, Shipping Ports & Logistics as well as
Construction. Headquartered located at Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi,
Mumbai, India. The Group's annual revenues were over USD 15 billion in FY08-09. Essar began
as a construction company in 1969 and diversified into manufacturing, services and retail. Essar
is managed by Shashi Ruia, Chairman – Essar Group. Ravi Ruia, Vice Chairman – Essar Group
and Prashant Ruia, Anshuman Ruia, Smiti Kanodia and Rewant Ruia Directors
Essar Communication Holdings Ltd is also venturing into emerging markets in Africa and South
Asia. In Kenya, Essar Communications has launched a new cellular services brand called “yu”,
becoming the country’s fourth telecom operator
1.1.6) History
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994
was awarded a license to provide mobile telecommunications services in Mumbai and launched
commercial service as Hutchison Max in November 1995. Analjit Singh of Max Touch still
holds 12% in company.
In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later Hutch took
the majority Stake.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had
acquired interests in six mobile telecommunications operators providing service in 13 of India's
23 licence areas and following the completion of the acquisition of BPL that number increased to
16. In 2006, it announced the acquisition of a company (Essar Spacetel — A subsidiary of Essar
Group) that held licence applications for the seven remaining licence areas.
In a country growing as fast as India, a strategic and well managed business plan is critical to
success. Initially, the company grew its business in the largest wireless markets in India — in
cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to
establish a robust network, well known brand and large distribution network -all vital to long-
term success in India. Then it also targeted business users and high-end post-paid customers
which helped Hutchison Essar to consistently generate a higher Average Revenue Per User
("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish
leading positions in India's largest markets providing the resources to expand its footprint
nationwide.
Initially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE. In December
2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its services under a
single identity. The Company entered into an agreement with NTT DoCoMo to launch i-mode
mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous owner;
however the brand was marketed as Hutch. After getting the necessary government approvals
with regards to the acquisition of a majority by the Vodafone Group, the company was
rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20
September 2007.
On September 20, 2007 Hutch became Vodafone in one of the biggest brand transition exercises
in recent times.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement
with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan
interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and
interests) of approximately US$11.1 billion or HK$87 billion.
1.1.7) Milestones:
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR
acquisition
2001: Won auction for licenses to operate GSM services in Karnataka, Andhra Pradesh and
Chennai
2003: Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which operated in Rajastan, Uttar
Pradesh East and Haryana telecom circles and renamed it under Hutch brand
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West'
and 'West Bengal'
2005: Acquired BPL (Except Mumbai)- 3 Circles, another mobile service provider in India
2008: Vodafone acquired the Licence in remaining 7 circles and has started its pending
operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya
Nagar, Bhopal as well as in Orissa, Assam, North East and Bihar
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network.
Hutch was often praised for its award winning advertisements which all follow a clean,
minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses
only white letters on red background. Another recent successful ad campaign in 2003 featured
a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you
go, our network follows. The simple yet powerful advertisement campaigns won it many
admirers.
2009: Vodafone launched Recharge Online
2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card Industry
Security Standard (PCI DSS) certification for its Mumbai operations and launches unlimited
SMS offer in Mumbai.
2010: Vodafone emerged as the most admired marketer in India. 2010: Vodafone crossed 100
million subscribers in India
1.2) Objectives of Study:
The study undertaken is aimed to achieve following objectives:
To understand importance of additional schemes given to retailers.
To study Special Loyalty Program in depth.
Understand the process of planning and implementation of these Special loyalty
programs.
Comparing Special Loyalty Program run by different telecom operators on different
parameters.
To identify the competitors and understand their marketing strategies.
To check the effectiveness of the programs in terms of percentage increase in sales.
To enlighten retailer about Vodafone Special Loyalty Program – “Score Kya Hai
(SKH)”.
To check the satisfaction of the retailers and their willingness to continue with the loyalty
program next time.
Identify the weaknesses of the programs and provide value addition to the company.
1.3) Scope of Study: (Explanation of the domain under study, time frame & Territory)
DOMAIN UNDER STUDY:
The study basically covers the following programs / schemes that are offered to the retailers as:
Vodafone – ‘Score Kya Hai’Idea – ‘Rajwada’Airtel – ‘Navratna’
TERRITORY UNDER STUDY:
The study is being conducted in the geographical area of Jaipur (Rajasthan) region.
1.4) Justification of Study:(Why Study? from Company's point of view)
The rising competition in telecom industry led to cut-throat competition in Special loyalty
program. Vodafone wants their program to be better than competitors programs, for these they
timely update their programs / schemes. For better improvement they compare Vodafone “Score
Kya Hai” with the other loyalty program offer by Idea and Airtel, these comparison is done with
the help of top retailers throw the filling of questionnaire and there precise suggestion to be
included. So that Vodafone take the adequate action in order to enhance the sales to withstand
the highly competitive market situation and amplify its market share.
1.5) Limitations of Study:
Limited sample size may fail the inductive generalization.`
Sampling errors – Research is conducted in urban area; the result might differ when we
include retailers of semi-urban and rural area.
Retailers don’t have complete information about loyalty program.
Deliberate falsification of answers by the retailers due to time pressure.
The project was taken as a part of my summer training. As the time was limited so the survey was confined to few stores only.
Data errors - Incomplete / Case bias information from the respondents.
Few retailers were not co-operative.
The opinions of all the persons are often in opposition, non-cooperating, and causing difficulty in data collection.
People were hesitant to disclose the true facts.
Inability of the retailers to answer few questions which caused difficulty in data analysis.
Interpretational errors.
1.6) STRUCTURE
Introduction to Company
This section will talk about the background of the Global and Indian Telecom Industry the
reform took place both fundamental structural and institutional reforms since 1991. We also
study major players and important milestone that happened since now. Then after look Vodafone
and Essar Group which owned Vodafone Essar Ltd. their objective their goals their achievements
and market share. This section also talks about the various objectives which need to be achieved
to full field at the end of the research, the Scope of study explain domain under study, time frame
& Territory, Justification explain why study took place and its importance in respect of company
perception and Limitations which occur at time of research.
Literature Review
Literature firstly includes various references which were taken to prepare the report these
reference are various books, magazine, company leaflets and websites.
Then this section briefly explains about Indian Telecom Industry, its current scenario and future
projections of telecom industry. The Current Scenario includes two main competing network
technologies deployed by cellular service providers’ world over (CDMA and GSM). The Future
Projections talk about future growth in telecom industry in terms of better quality and
affordability in terms of call rate and other value added services.
We also understand importance of special schemes and need of loyalty program in current
scenario. These loyalty programs are introduced by different telecom operator at different time
frame, on the bases of different term and condition. We also understand these loyalty programs
in depth.
Methodology and Analysis
Talks about the methodology used while research like research design, survey areas, sample size,
contact method, research period, research instrument used. Research design is the arrangement of
the conditions for collections and analysis of data. It also consists of sources of data and data
Collection Instrument which explain the way by which we collect the information. It also
explains type of Questionnaire format which were used.
Data Analysis deals with interpretation which we got from the data collected at the time of
research. For analysis of loyalty program we had compare different loyalty program on the bases
of various parameters. The analysis is on the basic of Degree of significance and Liking /
Disliking.
Conclusion of Report
The conclusion of report consists of different parts which are General Finding, Interpretation and
Recommendation. In Finding we explain the various major finding which I feel at the time of
project till completion of research. The Interpretation includes the major results which occur
during course of project and finally recommendation talks about the recommendations given to
the company which company can implement to target new customers.
Bibliography
This chapter includes the secondary sources used in the report.
Appendix : Comparison of Special Loyalty Program
Chapter 2: Literature Review
2.8) About Topic2.9) Telecom Industry2.10) Current Scenario2.11) Future Projections2.12) Importance of Schemes
2.5.2) Loyalty Programs2.5.1.1) Vodafone- Score Kya Hai (SKH)2.5.1.2) Idea – Rajwada2.5.1.3) Airtel – Navratna
2.13) General Terms and Conditions2.14) General Privileges & Benefits
LITERATURE REVIEW
As project report concern, first I refer Businessworld “The Marketing Whitebook 2010 – 2011”
and “Indian Telecom Industry” edited by Nasreen Taher books for the purpose of to obtain
knowledge of industry analysis. The telecom industry is the fastest growing industry in India
despite the recession telecom industry is a one which is not influence. For the purpose of
industry analysis of telecommunication sector, I collected from website as www.dot.gov.in,
www.businesstoday.intoday.in, www.nseindia.in, for history of telecommunication, I also visited
www.trai.gov.in to obtain Indian Infoline “ Telecom-Ringing in value” March 2009 wireless
operators market share and quota of five major companies in India and visited www.vodafone.in
for getting updated plan about Bonus card. G C Beri & N.K.Malhotra (V edition) is referred for
Marketing Research.
2.1) About Topic:
The word “Telecom” (which is an abbreviated version of telecommunication) in real sense refers
to the transfer of information between two distant points in space. This meaning however, has
been subjected to modifications in accordance with future innovations made be the Telecom
Industry.
2.2) Telecom Industry:
The telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for rapid
growth and modernization of various sectors of the economy. The Indian telecom industry has
been regularly beating targets. Recently, the telecom subscriber base exceeded the targeted 500
million almost 15 months before the end – 2014 deadlines. Going by the current growth, it is
estimated that India will have 800 million mobile subscribers in 2012. In wireless segment GSM,
CDMA and FWP wireless subscriber base has increase from 471.73 million in September 2009
to 488.40 million at the end of October 2009 at a monthly growth rate of 3.53%.
Subscription in urban area grew from 307.51 million in March 2009 to 328.55 million in June
2009, taking the urban teledensity to 95.05. Rural subscription increased from 122.21 million to
136.27 million, increase the rural teledensity from 14.93 in March 2009 to 16.61 at the end of
June 2009.
Subscriber Base and Teledensity – Rural and Urban
Subscriber base (million) TeledensityQuarter ending Rural Urban Rural Urban
Jun – 08 82.16 243.62 10.12 72.01Sep – 08 90.56 263.10 11.13 77.35Dec – 08 103.83 280.96 12.72 82.15Mar – 09 122.21 307.51 14.93 89.44Jun – 09 136.27 328.55 16.61 95.05
Source: 2009 TRAI Report on the Indian telecom services performance Indicators
Table 2.1: Subscriber Base and Teledensity – Rural and Urban
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
Rural 0.252 0.256 0.27 0.284 0.293
Urban 0.748000000000007
0.744000000000007
0.730000000000001
0.716000000000001
0.707000000000001
Market Share - Rural and Urban
Fig 2.1: Market Share – Rural and Urban
Wireline Services:-
The Wireline subscriber base declined from 37.31 million in September 2009 to 37.25 million at
the end of October 2009. BSNL and MTNL hold 85.46% of the wireline market share. However,
they lost .12 million subscribers in the month of October 2009.Overall wireline teledensity in
now 3.18.
Rural wireline subscriptions declined at a faster rate than urban subscriptions, leading to
reduction in the share of the rural subscriber base.
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
Rural 0.291 0.286 0.282 0.279 0.275
Urban 0.709000000000001
0.714000000000001
0.718000000000001
0.721000000000001
0.725000000000001
Wireline Market Share - Rural and Urban
Fig 2.2: Wireline Market Share - Rural and Urban
Wireless Services:
Indian’s wireline base increase from 1.6 million at the beginning of 2000 to over 325 million in
October 2008. This has been achieved with successive years of sharp subscriber growth – 69% in
2004, 58% in 2005, 97% in 2006 and 57% in 2007. Since wireless penetration was
approximately 28% in 2008, there is still large potential for future growth. Indian’s operators
have not still exhausted the full potential of domestic telecom market. It is expected that wireless
growth will increasingly emerge from rural India. In 2012, rural subscriber will account for
almost half the total wireless base.
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
Rural 0.247 0.252 0.269 0.285 0.295
Urban 0.705000000000001
0.748000000000006
0.731000000000001
0.715000000000001
0.705000000000001
Wireless Market Share - Rural and Urban
Fig 2.3: Wireless Market Share - Rural and Urban
25%
18%
17%
13%
9%
10%
8%
Wireless Operators Market share
Bharti AirtelRcomVodafoneBSNLTata TeleIdeaOthers
Fig 2.4: Wireless Operators Market share
2.3) Current scenario:
GSM and CDMA are the two main competing network technologies deployed by cellular service
providers’ world over.
GSM (Global System for Mobile Communications) originated in Europe in 1990. The GSM Association
is an international organization founded in 1987, dedicated to developing, providing and overseeing the
worldwide wireless standard of GSM. At the end of June 2009, GSM subscribers constituted 77% of
the wireless market. The GSM subscribers were 328.83 million at the QE June 2009 as against
297.26 million at the end of the previous quarter, showing a growth of 10.62%. Bharti Airtel
with 102.37 million subscribers continues to be the largest GSM mobile operator followed by
Vodafone with 76.45 million and Idea with 47.09 million.
CDMA (Code Division Multiple Access ) is a proprietary standard designed by Qualcomm Inc in United
States and has been the dominant network standard for North America and parts of Asia. It became an
international standard in 1995. The CDMA subscribers’ base increased to 98.46 million during the
QE June 2009 from 94.49 million at the end of the previous quarter. Reliance is largest CDMA
mobile operator with 54.19 million subscribers, followed by Tata Teleservices with 37.12
million.
2.4) Future Projections:
India to reach 600m mobile connections by 2011*
Mobile phone connections in India will reach 600 million in five years time as handsets and
tariffs become more affordable for the urban population. It is expected that the urban populations
of India to reach high levels of mobile phone saturation in five years time, to the extent where
many phone users will have two or more handset connections. A large portion of this growth will
arise from pre-paid connections, driven by the increasing affordability of handsets and tariffs
amongst India’s lower middle classes.
“The phenomenal growth in the Indian mobile phone market has largely been driven by
urban consumption. We expect this to continue with urban geographies achieving saturation
levels similar to current Western European markets in the next five years. Mobile connections
in rural geographies will be constrained by coverage of network infrastructure and
affordability of handsets which will limit consumption to no more than 150 million by 2011”
- Raj Modi, Research Director at Centre for Telecoms Research.
2.5) Importance of Schemes
The rising competition in telecom industry led to cut-throat competition, a company can only
survive in this market when their program to be better than competitors programs, and for these
they timely update their marketing activity. For better improvement they compare their activity
with other competitor marketing activity. So that company can take the adequate action in order
to enhance the sales to withstand the highly competitive market situation and amplify its market
share.
For enhancing the sales they want to build retailer base stronger and loyal. Keeping in mind that
every retailer sells companies products with the intention of earn profit. These profits are in term
of profit margin which they get while selling new connection and ETop. Higher margin attracts
more retailers towards company which reciprocates into higher sales. Company cannot give
higher margin to the Retailers beyond limit as per the standard of TRAI.
For this the companies have introduced schemes to appreciate only those retailers who have
shown their sincere efforts towards company in terms of increasing sales. Some schemes are
made by the company only for top retailers; these schemes are termed as Loyalty programs.
2.5.1) Loyalty Programs
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal
buying behavior — behavior which is potentially of benefit to the companies. For these
companies had created membership number that identifies the retailer as a member in a loyalty
program.
A company may issue a membership number to a retailer who can later use it as a form of
identification while dealing with the company. By presenting the membership number, the
purchaser from company gives special discounts or allotment of points that can be redeemed
later.
As in loyalty program only Top retailers are enrolled. High sale from retail counter influences
the company. Companies give special right or immunity to these particular top retailers for their
sincere efforts for bringing up these companies to the position it is currently standing at and these
program / schemes are just a platform for the company to express their gratitude. These
privileges are just a way to show that companies care for these retailers.
The rising competition in telecom industry led to tuff competition in Special loyalty program.
Each company wants their program is better than competitor program, for these they timely
update their program / scheme.
Special Loyalty Program run by these telecom operators are as follow
Vodafone – ‘Score Kya Hai’
Idea – ‘Rajwada’
Airtel – ‘Navratna’
Telecom operators also runs various other several programs / schemes, but those scheme are
quantity oriented not quality oriented. These special loyalty programs are quality oriented.
No other telecom operators accept Vodafone, Airtel and Idea run such loyalty program.
2.5.1.1)
1) Vodafone Score Kya Hai (SKH)
1.1) About Vodafone Score Kya Hai (SKH)1.2) Selection of Retailers 1.3) Registration process
1.3.1) Registration method
1.4) Base of Target1.4.1) Runs System
a) Activation Count:b) Revenue (recharge)c) Bonus Card Sold
c.1) About Bonus Cardc.2) Other Bonus Cardsc.3) Bonus Card sold v/s Runs
1.5) FD (Fix Deposit) 1.6) Reward and Recognition1.7) Current Status 1.8) Party Details
Vodafone Score Kya Hai (SKH)
1.1) About Vodafone Score Kya Hai (SKH):
Vodafone present it’s a customer loyalty program – Score Kya Hai (SKH).
Score Kya Hai (SKH) is designed keeping in mind the interest of all Vodafone partners across
the country. These retailers are top retailers partners in the country, the short listed on the basis
of Activation count, Lapu Recharge and Bonus Card.
Vodafone – Score Kya Hai (SKH) is started two and half year ago. The duration of each SKH is
of 4 month. SKH offers equal opportunities for every retailer to earn on the basic of their
performance. The best retailers can get ranges of electronic items & other useful products.
The Target is determined by a combination of Activation count, LAPU Recharge and Bonus card
sold. At each slab, retailer will have access to an exclusive set of benefits, privileges and
rewards.
There is grand party at the end of each Vodafone: - Score Kya Hai (SKH)
In party retailers have the chances to meet- ZSM, ZBM & other known persons of
Vodafone.
Cultural program during the event.
Talk show, about the company performance.
Drink & Dinner also there.
1.2) Selection of Retailers:
The selection of retailers are base on performance which they shown in terms of New
Connection sold, recharge or E-Top and Bonus card sold in resent past by retailer and also runs
retailer scored in last SKH.
1.3) Registration process:
Company automatically select retailer who is eligible for SKH according to its past performance,
also company itself assign target to retailers, target is base on its slab and its past performance in
SKH.
1.3.1) Registration method:
The AM of the company informs the retailers about their target, which the retailer has to achieve
in the period of SKH (4month). Company also timely informs retailers about their target through
SMS.
Vodafone also provide a book to retailer which contain all the detail about SKH, such as what is
the future plan of company, how a retailer can get maximum benefit from this schemes.
1.4) Base of Target:
Target for Retailers are base on Past Performance. For achieving the target, retailers have to
score Runs. The Scoring of the runs is base on Runs System which is base on:
1. Activation Count
2. Revenue (recharge)
3. Bonus Card Sold
1.4.1) Runs System:
The Runs system will use for selecting those retailers who has shown there sincere effort towards
Vodafone. A retailer can score runs throw prepaid activation, postpaid activation, LAPU
Recharge even from Bonus Card sold to the customer.
a. Activation Count:
The activation is counted only when he/she fulfill all the 4 conditions (PAC, CIF, RES and OTF)
PAC - Command which is send to telecom operators for activation of connection.
CIF (Customer Information Form) - Deposition of true document of customer on time.
RES - First Recharge and usage of connection.
OTF - Second Recharge.
According to amount of Second Recharge done by retailers Runs are given.
Second Recharge Runs
Rs. 14 SR 1 Run
Rs. 28 SR 3 Run
Rs. 37 SR 2 Run
Rs. 48 SR 4 Run
Rs. 98 SR 5 Run
Rs. 175 SR 6 Run
RES 5 by the end of the month only then the Runs is counted.Table 2.2: SKH Second Recharge v/s Runs
b. Revenue (recharge):
Retailer can score run by E-Top also. If a retailer do single recharges of Rs. 200 retailer get - 1
run per recharge
c. Bonus Card Sold: - Retailers can score Runs by selling bonus card also:
c.1) About Bonus Card
Bonus Card introduces by Vodafone keeping in mind the customer needs. Customer can select
any of Bonus Card and enjoy the benefits. There is large number of benefits which customers get
from Bonus Card:
Rs 4 Bonus Card
Customer can select the following offers with the Rs 4 Bonus Card. By Calling 121 (toll free).
These products are at a price of only Rs 4 by deduction from the account balance. This way
customer has an easy option of subscribing to this product through balance deduction, without
doing a recharge, if customer has sufficient balance in their account.
Deduction (from core account balance)
Benefits Validity ends on
Rs. 4 10 Local / STD minutes Same day midnight (day of activation product ) 1 dayRs 4 Vodafone to Vodafone at
20p/minuteRs 4 100 Local/ National SMSRs 4 40 Vodafone to Vodafone local
night minutesNext day midnight ( day after
activating product)
Note:
To activate the product, customer needs to dial 121 IVR
After dialing 121, customer will hear his best offer then the Daily Pack Offer
information.
Customer can listen to all the benefits under the product and subscribe to whichever pack
he wishes through the IVR itself and opt for daily validity pack priced at Rs.4.
Customer needs to have at least Rs 4 Balance at the time of subscription.
Customers who already have same service, and Opt for any pack then would be told to
complete his existing balance/service first before applying it.
Packs will be activated within 1 hour of receipt of request on 121 IVR.
These products are not recharged based product i.e can’t be activated through e-top
recharges.
c.2) Other Bonus Cards:
There is many other Bonus Cards which is available for customer. From these bonus cards not only customer can enjoy benefit but also retailer can also score Runs. These Bonus cards are as follow:
Bonus Card MRP (Rs) Benefits
BC 12 12 Local Vodafone to Vodafone night call (11pm to 6am) -10p/min.Local SMS – 10p/SMS.
Bonus Card Validity 15 days.BC 17 17 Vodafone to Vodafone calls – 1 p/sec
Vodafone to Other network calls – 1.2p/secValidity – 365 days
Call Gulf @ 6.99
18 Call rate 6.99Rs/minGulf Countries applicable UAE, Saudi Arabia, Qatar, Kuwait, Bahrain
Validity – 30 daysBC 21 (Apne
Minutes)21 Night minutes(11pm to 6am) – 210
Tariff Validity 15 daysBC 22 22 Local Vodafone to Vodafone(11pm to 6am) @ Re1 for 20 min
Tariff Validity 15 days. Not applicable for per second subscribersBC 24 24 All calls to USA & Canada @2,25/min
Validity 30 daysBC 34 34 All local and STD @ 50 p/min
BC 59 (Apne Minutes)
59 120 Local Vodafone to Vodafone minutesValidity of Free Minutes - 15 days
BC 79(Apne Minutes)
79 Local Vodafone to Vodafone -150p/min.Local SMS –150.
Validity of free minutes - 15 days.BC 99 99 Local Vodafone -225.
Validity of free minutes - 30 days.BC 199 199 400 Local and STD minutes, 400 Local and STD SMSBC 149 149 : 300 STD minutesBC 298 298 720 Local Vodafone to Vodafone minutes
Talk Value (Rs) – 10Validity - 30 days
Table 2.3: SKH Bonus Card
Salient features:-
1. Available for all prepaid customers.2. Local Vodafone – Vodafone minutes can be used for 24 hrs.3. On recharging with local minute pack of Rs 79, customer will get 150 local Vodafone –
Vodafone minutes and 150 local SMS.4. Available through E-top only.
c.3) Bonus Card sold v/s Runs
By selling above bonus card retailer can score Runs. The Runs are base on Bonus Card.
Bonus Card Runs10 -25 1 Run per BC26 -50 1.5 Run per BC51 -100 2 Run per BC
100< 3 Run per BCTable 2.4: Bonus Card sold v/s Runs
1.5) FD (Fix Deposit): -
Retailers with the intention of retaining their savings Runs for a fixed period for some future use
can apply for a fixed deposit account. Retailers can FD their Runs during the Retailer’s meet at
the end of SKH. A fixed deposit account allows retailers to deposit their Runs for a set period of
time, thereby earning a higher rate of interest in return. Throw this retailer can approach higher
range of item which are in the slab and can also get extra benefits. There is minimum amount of
Runs which must be deposit in FD which is decided by Vodafone.
1.6) Reward and Recognition
The program is divided in different parts. The program aims to recognize and reward partners
keeping in mind their score Runs.
These rewards will be duly presented to the respective members at the end of each SKH period,
in presence of all the members.
1.7) Current Status
For current status update, a retailer can send massage from its lapu number and get its current
status. Retailer also periodically gets its regular update from Area Manager or Vodafone
representative.
1.8) Party Details:
Vodafone organized a grand retailer’s meet for selected retailers in Rajasthan after successfully
completion of scheme. This member’s/retailer’s meet was organized with a view to felicitate the
efforts of member’s/retailers and to make them feel privileged and special. During the event
cultural program adds more glitz. Celebrity during the events and breathe taking performance
and enthralled the gathering.
The start of event with the talk show, Talk show displays the company performance in recent
past time. There is standard dinner and drink available in the event. Only Qualified
members/retailers are invited in the party, the approximately these is a gathering of 400 to 500
people. There is one pass for one member/retailer, these passes as well as other information
about event are given to the retailer at it outlet by the Vodafone representative or Area Manager.
Members/Retailers has to come by its own, company has no responsibility for transportation.
Members/Retailers have to bring pass otherwise he/she will not be allow in the event.
In this event performing retailers of Retail Engagement Program (REP) were also rewarded.
Range of electronic item and other useful products are given as prizes. Any reward given to
member cannot be exchange for cash, revoked or cancelled by the member/retailer, Member /
retailer can make FD (Fixed Deposit) of scored runs till next SKH, on this FD retailer gets extra
benefits in terms of runs. Vodafone accepts no responsibility for any variation in the prize
values.
Award was given to the retailer as per his achievement in the program and Product he/she was
enrolled in. Retailer cannot go for lower slab prize if he is not able to achieve the target. The
Vodafone reserves the right to delay or postpone the same.
During the party retailers have the chances to meet- ZSM, ZBM & other known persons of
Vodafone so that they feel importance. In event there are lots of other surprise prices are also
given. Prizes have to be collected within a month of notification or prizes will be forfeited at the
sole discretion of Vodafone. No compensation will be due to the retailer who fails to claim the
prize within the stipulated time. Collection instruction will be provided in the same notification.
Vodafone decision on all aspect of the program, winner, etc will be final and binding. No
correspondence in this regard will be entertained. The decisions made by Vodafone are final and
binding in all manners and no appeals shall be entertained for any reasons whatsoever. Vodafone
is not responsible for and shall not be liable for late, lost, misdirected or unsuccessful efforts to
notify winner.
2.5.1.3)
2) Idea Rajwada
2.1) About: - Idea Rajwada2.2) Registration process
2.2.1) Registration method
2.3) Bases of Target2.4) Points System2.5) Criteria2.6) Price System2.7) Customer Scheme:2.8) Current Status
Idea Rajwada
2.1) About: - Idea Rajwada
Idea present it’s a customer loyalty program – Rajwada, The Elite Partner Club.
Rajwada is designed keeping in mind the interest of all Idea partners across the country 5 th
Rajwada (1June – July). These retailers are mainly top retailers partners in the country, the short
listed on the basis of Activation count and Lapu Recharge.
The duration of each Rajwada is of 2 month. In Rajwada offers 3 levels of opportunities to earn
more on the basic of their performance – Swarn, Rajat and Kansya . The performing retailers of
every slab are given a chance to win range of electronic item and other useful products.
This level is determined by a combination of your activation count and LAPU Recharge. At each
level, retailer will have access to an exclusive set of benefits, privileges and rewards.
Selection of Retailers: The selection of retailers are base on New Connection sold in last quarter,
recharge or E-Top done by retailer and points retailer scored in last quarter
2.2) Registration process
Company automatically select retailer who is eligible for Rajwada according to its past
performance, also company itself assign the category for retailer.
2.2.1) Registration method
The TM of the company informs the retailers about their target, which the retailer has to achieve
in the period of Rajwada (2month). Company also timely informs retailers about their target
through SMS.
Idea also provide a book to retailer which contain all the detail about Rajwada, such as what is
the future plan of company, how a retailer can get maximum benefit from this schemes.
Retailer are divided into three category (3 Dwar) which are
1. Gold (Swarn)
2. Silver (Rajat)
3. Kansya (Bronze)
2.3) Bases of Target
Target for Retailers are base on past performance. Target is effected by:
1. Activation
2. Revenue (recharge)
Target of retailer is base on sum of Etop and New Activation done in past two month:
Etop Balance + New Activation = Target for retailers
Target also gets affected by BLR of the retailer.
2.4) Points System
The Point system will use for selecting qualified retailers of all three dwar. A retailer can score
points throw prepaid activation, postpaid activation and LAPU Recharge of Idea.
But activation points are base on PAC, CIF and RES. When all 3conditions fulfill then only
points are counted.
PAC – Command which is send to telecom operators for activation of connection.
CIF – Deposition of true document of customer on time.
RES – First recharge and usage of connection.
Condition Points
Prepaid Activation 15 point/act
Postpaid Activation 15 point/act
Recharge Sold 3 point/ 200lapu
Table 2.5: Rajwada Points System
Points of one Rajwada can be carrying forward in next Rajwada. But points are valid till the last
day of ongoing financial year (31/march/2010). In simple sense point score in Rajwada during
April – May can be carry forward in next Rajwada but points valid till the last date of that
financial (31/march).
Every Retailer has given an appropriate target according to its past performance. If retailer
achieves the desired target in the period then only retailer gets extra benefits. But if retailer
doesn’t able to achieve its target then retailer has to give penalty, only then after the points are
going to carry forward. Retailers have to achieve 81% of his target otherwise points are going to
collapse. If pointes are more than 81% of his target then only the points are going to carry
forward. But retailer has to give penalty in term of points, so carry forward points will be:
Points Carry Forward = (Points achieve * % achieved) /100
E.g.: If a retailer has given a target of 1000 points during Rajwada. But due to some certain
circumstance retailer can’t able to achieve 100% of its target then retailer has to give penalty in
terms of points, in our case retailer has achieve 850 points which is 85% of its target. So Carry
forward points in next Rajwada will be (850 * 85) / 100 = 723 points.
2.5) Criteria
The Retailers/ members are divided into three Dwar. The allocations of these are on the basis of
their pointes scored in last Rajwada.
Dwar Points
Kansya 600 – 1500
Rajat 1501- 3500
Swarn 3500<
E.g.: If in last Rajwada retailer score 2000 points then he is in the Rajat Dwar.
Table 2.6: Rajwada Criteria System
2.6) Price System
There is a list of gifts’ that a retailer can get after successfully compilation of scheme. Retailer
can approach to any slab, but points score should be in the same financial year. Points are
calculated according points system:
Rajwada Prices System
GIFT’s Brand’s Points CodeNon Stick Cookware Nirlep/ Nirali 1000 1
Steam Iron Bajaj / Inalsa 1500 2Handbag Philippines/ Bajaj 2000 3
Fan Wall Mounted Bajaj / Khaitan 2500 4Travel Bag Alfa 3000 5
OTG Sun flame / Bajaj 4000 6Water Purifier Kent / Pureit (Non Electric) 5000 7
Personal MP3 Safal Sony / Philips 6000 82Barner Gas Stove Sun flame 7000 9Microwave Oven LG / Samsung 10000 10Water Dispenser Voltage 12000 11
Referegater LG / Samsung 15000 12Fully Auto Washing Machine IFB 6kg 20000 13
Digital Camera Sony / Canon 25000 14Handy Cam Sony 30000 15Window AC LG / Samsung 35000 16
LCD TV LG / Samsung 40000 17Desktop PC + 3inch printer Zenith 50000 18
Laptop Dell 60000 19Bike Hero Honda CD Deluxe 80000 20
LCD Home Theater Sony /LG 100000 21Dubai Trip for 2 people 3N/4D. 3 star Hotel 200000 22
Car Maruti 800 350000 23Car Wagon R LXI 700000 24
Table 2.7: Rajwada Prices System
2.7) Customer Scheme: The various schemes given by Idea are as:
Terms and conditions:
1. 2222 Calling Must 2. CAF in 2 days3. Call Compulsory 4. ufront include 3% Etop margin
2.8) Current Status
For current status update, a retailer can send massage from its lapu number and get its current
status. Retailer also periodically gets its regular update from Area Manager or Idea
representative.
Sim Billing
FRC
UP front
CAF Sch
TT Plan
10 21 15 6 6 1p/sec
10 17 --- 6 0 Re1/3min
10 130 50 6 100
1p/sec
10 47 14 6 50 1p/sec(30+20)
10 205 110 6 150
Re 1/min (STV Rs4, Rs5,Rs16 applicable)
10 49 16 6 50 1p/sec(30+20)
10 48 11 6 5 Roaming @ 1p/sec
2.5.1.3)
3) Airtel Navratna
3.1) About: - Airtel Navratna3.2) Selection of Retailers 3.3) Registration process
3.3.1) Registration method3.3.2) Categories
3.4) Base of Target3.5) Points System and Privileges3.6) Method for calculation of Incremental Sales Growth Percentage3.7) Privileges
3.7.1) Airport and Railway Station Transfers3.7.2) VLCC Special Package3.7.3) Ferns ‘N’ Petals (FNS)
3.8) Reward and Recognition3.9) Base for Rewards3.10) Current Status3.11) Party Details
Airtel Navratna
3.1) About: - Airtel Navratna
Airtel present it’s a customer loyalty program - Navratna, The Elite Partner Club.
Navratna is designed keeping in mind the interest of all Airtel partners across the country. These
retailers are mainly top 12,000 retailers partners in the country, the short listed on the basis of
Activation count and Lapu Recharge.
Airtel Navratna is started two and half year ago. The duration of each Navratna is of 3 month or
1Quarter. In Navratna offers 3 levels of opportunities to earn more on the basic of their
performance – Platinum, Gold and Silver. The best retailers of every slab are given a chance to
win Gold and Silver Coin.
This level is determined by a combination of activation count and LAPU Recharge. At each
level, retailer will have access to an exclusive set of benefits, privileges and rewards.
There is grand party at the end of each Navratna.
• In party retailers have the chances to meet- ZSM, ZBM & other known persons of
AIRTEL.
• Cultural program during the event.
• Talk show, about the company performance.
• Drink & Dinner also there.
3.2) Selection of Retailers:
The selection of retailers are base on New Connection sold in last quarter, recharge or E-Top
done by retailer and points retailer scored in last quarter
3.3) Registration process:
Company automatically select retailers who are eligible for Navratna according to its last quarter
performance, also company itself assign the category for retailer.
3.3.1) Registration method
The TM of the company informs the retailers about their target, which the retailer has to achieve
in the period of Navratna (3month). Company also timely informs retailers about their target
through SMS.
Airtel also provide a book to retailer which contain all the detail about Navratna, such as what is
the future plan of company, how a retailer can get maximum benefit from this schemes.
3.3.2) Categories:
Retailer are divided into three category
1. Platinum
2. Gold
3. Silver
Platinum Category: - the Platinum category retailers has to do 500 activation per month and
every day balance in lapu is more than Rs 5000 or Rs 150000 E-Top from lapu per month
Gold Category: - the Gold category retailers has to do 200 activation per month and every day
balance in lapu is more than Rs 3000 or Rs 90000 E-Top from lapu per month
Silver Category: - the Silver category retailers has to do 100 activation per month and every day
balance in lapu is more than Rs 2000 or Rs 60000 E-Top from lapu per month
3.4) Base of Target
Target for Retailers are base on last Quarter Performance
Target is effected by:
a. Activation
b. Revenue (recharge)
a) Activation: Activation should be 10% more than last month activation.
E.g.: Silver Category retailers who have to achieve 100activation in 1st month of Navratna then
the 2nd month target is 10% more which would be 110 activation. Same condition is apply for 3 rd
month where 3rd month target is 10% more than 110 activation which is 121 activation in third
month.
b) Revenue (recharge): Sale from lapu also 10% more as compare to last month sale
E.g.: Silver Category retailer who has to do Rs 60000 E-Top from its lapu number in 1 st month of
Navratna then the 2nd month target is 10% more which would be Rs 66000 E-Top from its lapu
number. Same condition is apply for 3rd month where 3rd month target is 10% more than Rs
66000 E-Top which is Rs 72600 E-Top form it’s lapu number in third month.
3.5) Points System
The Point system will use for selecting top retailers in all three categories. A retailer can score
points throw prepaid activation, postpaid activation and LAPU Recharge even from Displaying
Airtel holding at outlet and motivating the customer to purchase Airtel connection.
But activation counts are base on PAC, CIF and RES. When all 3conditions fulfill then only
points are counted.
PAC - Command which is send to telecom operators for activation of connection.
CIF - Deposition of true document of customer on time.
RES - First recharge and usage of connection.
Condition Points
1 Prepaid connection 1 point
On recharge of Rs 5000 from lapu 1 point
1 Postpaid connection 2 point
Display audit By displaying Airtel holding at retail outlet, he can get up to 100 points
Mystery audit For motivating the customer to purchase Airtel connection, he can get up to 100 points
According to points top retailers of each Category are given extra benefit
Table 2.8: Navratna Points System
Performance points (PP) will be calculated at end of scheme
Points Table 1st month 2nd month 3rd month
1 2 3 4 T 1 2 3 4 T 1 2 3 4 T Total Points
Prepaid Activation*
1 point/act
Postpaid Activation**
2 point/act
Recharge Sold***
1 point/ 5000lapu
Display Audit 0-100 points
Once in three month
Mystery Audit 0-100 points
Once in three month
Grand Total
This is like the report card of the retailers during the scheme:
*Act with PEF within TAT and Decr > 5 within 7 days
**Process for registering postpaid sale to be followed
***Recharge sold via LAPU only
3.6) Method for calculation of Incremental Sales Growth Percentage:
Performance points (PP) will be calculated at the end of every Navratna. Here’s how points will
be rewarded. For every new acquisition, retailers will be awarded one Performance Point.
Further, for every recharge of Rs 5000/- retailer will be awarded another Performance Point.
Simply put, 1 Acquisition = 1 PPRs. 5,000 recharge = 1 PP
On the basis of Performance Points, the Incremental Sales Growth of that Navratna will be
calculated. The formula being:
PP of the base quarter will be shared with the Partner on SMS.
Illustration to explain calculation:
1) Calculation at the end of first halfPerformance points at the beginning of program: 200Performance points at the end of first half: 250
Incremental Sales Growth percentage: (50/200) * 100 = 25%
2) Calculation at the end of second halfPerformance points at the beginning of program: 200Performance points at the end of first half: 250Performance points at the end of second half: 300
Incremental Sales Growth percentage: (100/200) * 100 = 50%
3.7) Privileges:-
Privileges in this program are subjected to the level retailers are at. The privileges are exclusively
designed for retailers and are extendable for retailer’s family.
Privileges Platinum Gold Silver
Dealer Helpdesk Priority helpline for quicker response
Priority helpline for quicker response
Priority helpline for quicker response
Business Card Platinum Business Card Gold Business Card Silver Business Card
Free Golden Numbers 5 per navratna 3 per navratna 1 per navratna
Airport & Railway Station Transfers
10 drops per navratna 6 drops per navratna NA
Discounts at VLCC Up to 30% Discount Up to 30% Discount Up to 30% Discount
Discounts at Fems ‘N’ Petals Up to 15% Discount Up to 15% Discount Up to 15% Discount
These privileges company offer will keep getting update from time to time
Table 2.9: Navratna Privileges
3.7.1) Airport and Railway Station Transfers:
This privilege is only for Platinum and Gold members. For booking retailers airport/railway
station transfer retailer will have to contact Navratna’s program cell at 0124 4222393.
Few things to keep in mind:
• Valid in selected cities -Delhi, Mumbai, Chennai, Bangalore, Kolkata, Hyderabad, Pune, Coimbatore, Cochin, Chandigarh & Jaipur.
• Complimentary transfers will be provided as per the membership level.• Booking should be done at least 2 working days in advance.
3.7.2) VLCC Special Package:
Navratna offers special packages from VLCC. VLCC is present 50 cities across the country.
Retailers can avail the following benefits by showing Navratna membership card at VLCC
outlets or by just messing ‘VLCC Airtel’ to 55050
• 30% off on Slimming packages
• 30% off on Beauty Packages
• 15% off on Regular Salon Service
• Body Composition Analysis worth Rs 500/-
• Skin & Hair Analysis Worth Rs 500/-
Benefits are subjected to the following terms and Conditions:
• This offer cannot be combine with any ongoing offer, promotions & discounts
• This discount is valid at all VLCC outlets across India except the VLCC Spa at Vasant Vihar and Safdarjung Enclave, New Delhi.
• Discount valid on prior appointments only
• The discount offered are not applicable on International lines & Dermatological procedures
• The discounts are applicable on MRP
3.7.3) Ferns ‘N’ Petals (FNS):
By showing Navratna Membership card retailer can avail up to 15% discount at a FNP outlet.
FNP outlets are spread across 30 cities all over India. Here’s a simple breakdown of the offers
that retailers get:
• 10% discount for shopping up to Rs 1000/-• 12.5% discount for shopping up to Rs 1001/- to 1500/-• 15% discount for shopping of Rs 1501/- and above
3.8) Reward and Recognition
The program is divided in different parts. The program aims to recognize and reward partners
keeping in mind their increment growth achieved.
These rewards will be duly presented to the respective members at the end of each Navratna
period, in presence of all the members of that particular category. The first event took place at
the end of December ’08.
3.9) Base for Rewards:
In every Navratna the standing of members in their respective categories be determined
Rank will be based on calculations of retailer percentage growth of performance points in the
program period
Retailers must manage a minimum of 5% growth over the base performance points, to be eligible
for rewards
The following rewards will be given for category – Platinum, Gold & Silver
1) Top 30& Rankers Based on cumulative Incremental percentage growth*
Top 30% retailers in each category will be rewarded Gold Coin base on their respective category
Platinum Partner: - 15 Gm GoldGold Partner: - 10 Gm GoldSilver Partner: - 5 Gm GoldFor instance, if the Gold category has 100 members, the top 30 with the highest growth rate in
that particular Navratna, will be selected and rewarded
Top 10% Rankers based on Incremental % Growth (Both category are non-overlapping
rewards)
• Only applicable for the consistent partners • Top 10% rankers, for just the consistent partners, in each category will also be rewarded.
For instance, in the second Navratna, in a Gold category with 100 members, not only the top 30
rankers throughout the program period, but even the top 10 rankers for only the second Navratna
will also be rewarded.
Other Qualified retailers are also given Silver coin as a pacification price
Platinum Partner:- 30 Gm SilverGold Partner:- 20 Gm SilverSilver Partner:- 10 Gm Silver
3.10) Current Status:
For current status update, a retailer can send massage from its lapu number to 51619 and get its
current status.
There are two type of massager
1. Msg “Rank lapu nu”: To know its rank in its category
2. Msg “RVHR lapu nu”: for complete detail of its position so far in Navratna, which
contain how much activation and E-Top from its lapu he has done so far.
3.11) Party Details
Bharti Airtel organized a grand retailer’s meet for its elite retailers in Rajasthan after successfully
completion of scheme. Last time this grand retailer’s meet was organized in 5star Hotel Le
Meridian, Jaipur. This member’s/retailer’s meet was organized with a view to felicitate the
efforts of member’s/retailers and to make them feel privileged and special. During the event
cultural program adds more glitz. Celebrity during the events and breathe taking performance
and enthralled the gathering. Last time Punjabi pop singer Bhupi present during the event.
The start of event with the talk show, Talk show displays the company performance in recent
past time. There is standard dinner and drink available in the event. Only Qualified
members/retailers are invited in the party, the approximately these is a gathering of 400 to 500
people. There is one pass for one member/retailer, these passes as well as other information
about event are given to the retailer at it outlet by the Airtel representative or Territory Manager.
Members/Retailers has to come by its own, company has no responsibility for transportation.
Members/Retailers have to bring pass otherwise he/she will not be allow in the event.
In this event the top performing retailers of Retail Engagement Program (REP) were also
rewarded. Gold coins, trip to Bangkok and Hero Honda motor cycles were the different types of
prizes. Any reward given to member cannot be exchange for cash, revoked or cancelled by the
member/retailer. Bharti Airtel accepts no responsibility for any variation in the prize values.
Award was given to the retailer as per his achievement in the program and category he was
enrolled in. The Bharti Airtel reserves the right to delay or postpone the same.
During the party retailers have the chances to meet- ZSM, ZBM & other known persons of Airtel
so that they feel importance. In event there are lots of other surprise prices are also given and
best 3retailer of every ZSM are also awarded. Prizes have to be collected within a month of
notification or prizes will be forfeited at the sole discretion of Bharti Airtel. No compensation
will be due to the Winner who fails to claim the prize within the stipulated time. Collection
instruction will be provided in the same notification.
Bharti Airtel’s decision on all aspect of the program, winner, etc will be final and binding. No
correspondence in this regard will be entertained. The decisions made by Bharti Airtel are final
and binding in all manners and no appeals shall be entertained for any reasons whatsoever.
Bharti Airtel is not responsible for and shall not be liable for late, lost, misdirected or
unsuccessful efforts to notify winner.
2.6) General Terms and Conditions:
These are general terms and condition follows by all three telecom operators during the scheme,
retailer must read it carefully before registration.
1. The membership to these schemes hereinafter referred to as ‘club’ is open for partners by
specific company only.
2. The grant of membership is at the sole discretion of specific telecom operator and shall
be granted only after fulfillment of qualifying criteria laid down by telecom operator
3. Membership of club and participation in its scheme/program is purely voluntary.
4. The scheme/program shall be operational between a particular time period as may be
decided by specific telecom operator
5. Company reserves the right to extend, cancel, discontinue, prematurely withdraw,
change, alter or modify this scheme/program in whole or any part thereof at its sole
discretion at anytime during its validity as may be required in view of business exigencies
and/or changes by regulatory or statutory and the same shall be binding on the member.
6. The winner/s of the scheme shall be selected based on parameters identified by telecom
operators only.
7. These programs are exclusive to any other scheme/program run by telecom operator and
are non – transferable. No substitution will be given nor shall any exchange or
redemption for an equivalent cash amount or in any other form shall be allowed under
any circumstances.
8. The price or benefits under the program are neither assignable nor transferable under any
circumstances.
9. All the prices shall be subjected to such other terms and condition as may be applicable to
specific prizes and shall have to be duly compiled with by the winner.
10. The prizes to winners shall be given subject to compliance with all applicable statutory
legislations/processes/formalities in connections with the prizes and on production all
such documents/papers as required by telecom operators before accepting the delivery of
the prize. Any failures on the part of the winner/s to comply with directions issued by
telecom operators for claim of prize shell entitle telecom operators to forfeit prize/s.
11. All incidents costs/taxes/levies related to the prizes/benefits shall be entirely borne by the
winning member failing which, telecom operators’ reserves to right to either forfeit the
same or disburse it to the alternative winners selected in lieu of the original winner.
12. The participant shall render all possible assistance at all times to telecom operators or its
books, stocks, premises for the purpose of assessing and evaluating points earned under
the scheme. Any denial or non co-operation by a member shall entitle telecom operators
to debar/disqualify the participant for further participation in this scheme.
13. Telecom operators reserves the right to disqualify/expel any member in case of any
misconduct, non co-operation or any other circumstances, which telecom operators may
deem fit so as to warrant disqualification/expulsion.
14. The schemes are subject to force-majeure conditions.
15. Decision of telecom operators regarding all transactions under this scheme/program shall
be final and binding and no correspondence shall entertain in this regard.
16. Participation in this scheme/program shall be treated as deemed acceptance by the
participating member to all the applicable terms & conditions.
17. These terms and condition are governed by Indian Laws. In the event of any dispute the
same shall be subject to the exclusive jurisdiction of Delhi Court.
18. The member must notify the program Centre immediately of any change of contact
address including email, fax and phone by giving written notice of such changes.
2.7) General Privileges & Benefits:
1. Telecom operators will endeavor to see that the services, benefits, facilities and
arrangements as expressed in the program booklet will be liable for any loss or damage,
whether whole or part, of any such services, benefits, facilities and arrangements.
2. When a members seeks to use or obtain any of the services, benefits, facilities and
arrangements as offered by the telecom operators merchants, the provisions of such
services, benefits, facilities and arrangements will be subject to the respective terms and
conditions of the provider of the same benefits, facilities and arrangements
3. Members will be personally liable for any and all costs, taxes, charges, claims or
liabilities of whatever nature arising from the provision or availability of benefits,
facilities and arrangements provided or made available to a member, by an telecom
operators merchant, as a result of his/her membership.
4. Telecom operators shall not be liable in the events it fail to fulfill any of its obligate
under this agreement due to flood, earthquake, storm, cyclone or any other acts of god of
similar nature, war strike, lockout, or governmental or judicial or quasi-judicial
policies/intervention/direction/prohibition or change in law or for any other reasons
beyond its control.
Chapter 3: Methodology and Analysis
3.5) Methodology3.6) Research Technique3.7) Comparison of Vodafone SKH with Airtel Navratna
3.3.4) Parameters in terms of Likes / Dislike3.3.5) Degree of Significance3.3.6) Data Analysis
3.8) SWOT Analysis of SKH
3.1) Methodology:
Methodology can properly refer to the theoretical analysis of the methods appropriate to a field
of study or to the body of methods and principles particular to a branch of knowledge.
Methodology can be the systematic study of methods that are, can be, or have been applied
within a discipline.
Study aims to delineate the methodology, employed to undertake this study. Research is common
parlance, which refers to a search for knowledge. The research process has been divided into
different phases:
Phase I: Collection of data about various Special Loyalty Programs and
compilation of data.
In the first phase of project which consists of collection of data about various special loyalty
programs. For collecting the data I had to visit various retail stores, and ask about these schemes
and noted down the important points. I also try to collect enrollment letter or booklet which
contains the details or update about the schemes. Then I compiled the data which was collected
from the survey.
Phase II: Comparing schemes on different parameters.
For comparing different loyalty program, the Questionnaire was designed in such a way that it
compared different parameters of the schemes. These parameters are from the day of registration
to the last day of completion or prize distribution day.
These 8 parameters are:
1. Category System2. Point / Runs System3. PAC Linked with OTF4. Bonus Card Points / Runs5. Tertiary (ETop) Points / Runs6. Party / Mela7. Gifts8. Navratna / SKH
Questionnaire is both open as well as close ended. So retailers that can also add there suggestion
or any other key points related to these schemes.
Personal Interviews of selected retailers are conducted and if retailer is not aware of Vodafone
Special Loyalty Program – “Score Kya Hai (SKH)”, then I had to explain them about privileges
which they would avail from SKH.
Then later on organize the relevant data in such a compatible way so that it can be analysed.
Phase III: Preparation of Research Design
A research design is the arrangement of the conditions for collections and analysis of data.
Nature - This study is Exploratory in nature.
Source of collection of data –
Primary Data: Personal Interviews
Secondary Data: Product brochures, Leaflets and other advertising products.
Data Collection Instrument - Personal Interviews with Structured schedules, Non
Disguised and comparison through Questionnaire format.
Sample Size Determination: These loyalty programs are only for the top retailers so sample size
is of 95 retailers. These retailers are grade – A retailer on the bases of last quarter performance.
3.2) Research Technique
The following research technique were used for data collection
For Collection of Information:
For collection of data about loyalty program I prefer Judgment and Snowball sampling. As each
and every retailer don’t aware of this special loyalty program, only selected retailer knowledge
about these programs.
Comparison of loyalty program base on Questionnaire:
Questionnaire was structured with open as well as close ended questions prepared for top
retailers. So Quota sampling base research is used in which retailers are divided into different
quota base on their sales performance.
3.3) Comparison of Vodafone SKH with Airtel Navratna
For comparing SKH and Navratna I have chosen Top 95 retailers in Jaipur (Rajasthan) on the
basis of past performance. And ask them to fill the Questioner which is at last of this report. This
Questioner contains nearly all the parameters in which schemes can be compared.
I have taken eight parameters for comparing Airtel Navratna and Vodafone SKH in terms of
Like/ Dislike. These 8 parameters are:
1. Category System2. Point / Runs System3. PAC Linked with OTF4. Bonus Card Points / Runs5. Tertiary (ETop) Points / Runs6. Party / Mela7. Gifts8. Navratna / SKH
3.3.1) Parameters in terms of Like / Dislike.
1) Category System
In Airtel Navratna retailers are divided into three categories: Platinum, Gold and Silver. In each
category retailers are given a target which a retailer has to achieve. On the other hand in
Vodafone SKH there is no such category.
According to my survey I found out that 50 % of retailer likes the category system followed by
Airtel and 50% disliked it. On the other hand 89% of the retailers like the category system
followed by Vodafone SKH and only 11% disliked it.
Fig 3.1: Comparison of Category System
50%50%
Airtel - Category System
Liked Disliked
89%
11%
Vodafone - Category System
Liked Disliked
2) Point / Runs System
The Points / Runs system is used for selecting those retailers who has shown there sincere effort
towards company. A retailer can score points / runs through prepaid activation, postpaid
activation and LAPU Recharge. But in Vodafone SKH retailer can score from the sale of Bonus
Cards also. According to my survey I found out that 38% retailers likes the points system and
62% dislikes this system. On the other hand 61% retailers really likes the Runs System and 39%
dislikes this system. This is due to attractive gifts which are given by Vodafone during SKH
Mela.
Fig 3.2: Comparison based on Point / Runs System
38%
62%
Airtel - Point System
Liked Disliked
61%
39%
Vodafone - Runs System
Liked Disliked
3) PAC Linked with OTF:-
The command which is send to telecom operators for activation of connection is termed as PAC,
Second Recharge done in new connection is term as OTF.
Airtel Navratna gives points even after PAC, CIF and RES on the Vodafone SKH also include
OTF. For finding liking and disliking
According to my survey I got to know that 82% of the retailer really likes the Navratna point
system which is base on PAC, in spite of 18% retailer which dislikes it. On the other hand 70%
of retailer likes the SKH Runs system which is based on OTF and 27% disliked it.
Fig 3.3: Comparison based on activation system
70%
27%
Vodafone - PAC Linked with OTF SR
Liked Disliked
82%
18%
Airtel - Base on PAC
Liked Disliked
4) Bonus Card Points / Runs
Bonus Card introduces by Vodafone keeping in mind the customer needs. Customer can select
any of Bonus Card and enjoy the benefits. The range of Bonus card are as : BC 4, BC 12, BC17,
Call Gulf @6.99, BC 22, BC 24, BC 34, BC 59, BC 79, BC 99, BC 199, BC 149 and BC 298.
On the other hand Airtel don’t offer any such bonus card.
Vodafone offers Runs to the retailer on sell out of every Bonus Card. According to my survey I
got to know that the entire top retailer really likes Runs on Bonus Cards on the other hand they
dislike that airtel don’t offer any such points
Fig 3.4: Comparison based on Bonus Card System
100%
Vodafone - Runs on Bonus Cards
Liked Disliked
100%
Airtel - Points on Bonus Cards
Liked Disliked
5) Tertiary (ETop) Points / Runs
The Points / Runs retailer gets on the sale of ETop. Both Vodafone and Airtel offer Runs / Points
on the sale. According to my survey I got to know that 46% of the retailers dislike the Points
System for allocation of points, and only 54% retailers like it. This is due to points system
follows the strict norms on the daily bases sale of ETop. On the other hand In Runs System there
is no such strict norms therefore it’s liked by 78% of retailer and only 22% dislike it.
Fig 3.5: Comparison based on Tertiary Points / Runs
78%
22%
Vodafone - Runs on Tertiary
Liked Disliked
54%46%
Airtel - Points on Tertiary
Liked Disliked
6) Mela / Party
Vodafone and Airtel organized a grand retailer’s meet for selected retailers in Rajasthan after
successfully completion of scheme. This member’s/retailer’s meet was organized with a view to
felicitate the efforts of member’s/retailers and to make them feel privileged and special.
Vodafone term this retailer’s meet as Mela and Airtel terms as Party. According to my survey I
got to know that 74% retailers really like the Navratna Party and 26% disliked this party. On the
other hand 98% retailers really like the SKH Mela and 2% disliked these Mela.
Fig 3.6: Comparison based on Party
74%
26%
Airtel- Navratan Party
Liked Disliked
98%
2%
Vodafone - SKH Mela
Liked Disliked
7) Gifts
In Airtel Gifts are based on cumulative Incremental percentage growth, top 30% retailers in each
category will be rewarded Gold Coin base on their respective category: Platinum Partner (15 Gm
Gold), Gold Partner (10 Gm Gold) & Silver Partner (5 Gm Gold). Other Qualified retailers are
also given Silver coin as a pacification price: Platinum Partner (30 Gm Silver), Gold Partner (20
Gm Silver) & Silver Partner (10 Gm Silver). In Vodafone Gifts are base on Runs scored, there
are range of electronics goods are given such as Cookware, Steam Iron, Fan Wall Mounted,
OTG, Water Purifier, MP3 player, Referegater, AC, LCD TV, Laptop, bike, Car and many more.
According to my survey I got to know that 61% retailers really like the Gold and Silver gifts
items and 39% disliked these gifts. On the other hand 62% retailers really dislike Electronics
Goods as gift Items and 38% liked these gifts.
Fig 3.7: Comparison based on Gifts
61%
39%
Airtel offers Gold & Silver as Gift Items
Liked Disliked
38%
62%
Vodafone offers Electronics Goods as Gift Items
Liked Disliked
8) Navratna / SKH
Navratna / SKH schemes are just a platform for the company to express their gratitude. Schemes
are for particular retailers for their sincere efforts to take these companies to the position it is
current at. But it is equally important that retailers really like these schemes or not. According to
my survey I got to know that 71% retailers really like Airtel Navratna and 29% disliked it. On
the other hand the entire top retailer really likes Vodafone SKH.
Fig 3.8: Comparison based on program
100%
Vodafone - SKH
Liked Disliked
71%
29%
Airtel - Navratan
Liked Disliked
3.3.2) Degree of Significance:
Degree of Significance means number or frequency of unintended consequences within each
level of significance or in other words the parameter which effect or attract more to the retailer
towards the scheme. So from the above survey we have created the degree of significance.
Parameters Degree of Significance
Category System 1PAC Linked with OTF 2Bonus Card Points / Runs 3Tertiary (ETop) Points / Runs
4
Point / Runs System 5Party / Mela 6Gifts 7Navratna / SKH 8
Table 3.1: Degree of Significance
Example:-
1. Retailers give more significance to Party / Mela in compare with Point / Runs System, that’s
why Party / Mela has higher degree of significance then Point / Runs System.
2. Retailers give less significance to Party / Mela in compare with Gifts, that’s why Party / Mela
has lower degree of significance then Point / Runs System.
3.3.3) Data Analysis: -
Analysis in terms of Like / Dislike:
The analysis is on the basic of Degree of significance and Liking / Disliking.
ParametersAirtel Vodafone
Liked Disliked Liked DislikedCategory System 1 1 1 0PAC Linked with OTF 2 0 1 1Bonus Card Points / Runs 0 3 3 0Tertiary (ETop) Points / Runs 2 2 3 1Point / Runs System 2 3 3 2Party / Mela 4 2 6 0Gifts 4 3 3 4Navratna / SKH 6 2 8 0
GRAND TOTAL 21 15 28 8Table 3.2: Analysis is on the basic of Degree of significance and Liking / Disliking
Example:
Liking / Disliking (Point / Runs System): - As 38% retailers likes the points system and 62%
disliked this system of Airtel Navratna. On the other hand 61% retailers really like the Runs
System and 39% disliked this system Vodafone SKH.
Degree of significance (Point / Runs System): - 5
Analysis: - As 38% likes, 62% dislikes the Airtel Points system and degree of significance is 5.
After combining both parameters we can conclude 2 for liking and 3 for disliking. As 61% likes,
39% dislikes the Vodafone Runs system and degree of significance is 5. After combining both
parameters we can conclude 3 for liking and 2 for disliking.
3.4) SWOT Analysis of SKH: -
Strength
Brand Name
Easy method of scoring Runs
Attractive gifts item
Range of slabs for different type
of retailers
Weakness
Delivery of gifts must be on time
Retailers are not completely
aware of scheme.
FD system is not easy to
understand
Opportunity
Including Gold and Silver coin in
slabs can attract more retailers
Momentous, Letter pad, Business
Card must be given retailers on
regularly base.
Threats
Competitors are equally focus on
loyalty program
Duration of other loyalty program
is smaller than SKH
Chapter 4: Conclusion of Report
4.1) General Finding4.2) Interpretation4.3) Recommendation4.4) Conclusion
4.1) General Findings: -
Retailers are not completely aware of scheme.
Generally retailers compare the gifts given in different loyalty program, so it
is important that SKH must include slabs of Gold and Silver Coins.
Airtel – Navratna has created good images of itself in the mind of retailers.
Momentous, Letter pad, Business Card etc are given by Airtel to these top
retailers.
Duration of competitor loyalty program is smaller as compare to SKH.
The system of FD of Runs is not understood by retailers.
Party at the end of program really attracts retailers.
Some of electronic item in slabs are out of fashion.
Gifts of SKH are not delivered on time.
4.2) Interpretations:
On analyzing the results of the consumer research survey the following interpretations
were arrived at:
1) Category System
It was observed that 89% Retailers dislikes Category System because Category system creates
difference among the retailers.
2) Point / Runs System
It was observed that 62% likes the Runs System it is due to its gives more easily approach to
score runs as compare to points system.
3) PAC Linked with OTF:-
It was observe that 82% retailers likes PAC base points by Airtel, while 70% retailers likes OTF
base runs. So we can interpret that retailer have nearly equal liking and disliking on this
parameter, but still there is a mindset that customer may not continue SIM after RES, this may
cause losing of runs.
4) Bonus Card Points / Runs
As only Vodafone offers runs on sale of Bonus Card, Airtel doesn’t offers. It was observe that all
the top retailers likes runs on sale of Bonus card.
5) Tertiary (ETop) Points / Runs
It was observe that most of retailers like the runs from sale of ETop as compare to points. Due to
points system follows the strict norms on the daily bases sale of ETop and runs system there is
no such strict norms.
6) Mela / Party
It was observe that most of retailers like Mela as compare to Party, because Mela gives them
more cultural touch as compare to Party.
7) Gifts
As most of the retailers likes Gold and Silver as a gift item as compare to Electronics Goods as
gift Items, because value of electronic item mostly decrease as a time and Gold and Silver is
always best investment for future.
.
8) Navratna / SKH
From all above parameters most of the retailers conclude that SKH scheme is batter then
Navratna.
4.3) Recommendations
SKH must include slabs of Gold and Silver Coins, which is one of the major items which
can attract retailers.
Vodafone must look delivery of gifts items at right time without this it is not possible to
attract other top retailers toward SKH.
As in Mela only top retailer in that particular area are invited. So invitation must be for
two persons per retailer store rather one person per retailer store, so that retailer can enjoy
the Mela (Party).
Runs on displaying Vodafone backlit, banners, holding and other different promotional
tools at retailer outlets must also be included which increase visibility of Vodafone at
these top retailers.
Runs on Mystery audit by AM or Vodafone representative also be give.
Tertiary runs should be base on total ETop not on single recharge.
Plans are mostly formulated at corporate headquarter and executed in their stores. So it is
important that proper information must pass to retailers about SKH.
Vodafone must fragmented retailers on their past performance so that they self motivate
to score runs and try to give their best and become one of the best performing retailer in
that particular area.
4.4) Conclusion:
It was a perception of different telecom operator that category system motivates retailers to
perform well, that result in race to become a top grade category retailer among all. But this
perception terms wrong as top retailers don’t category system which creates difference among
retailers.
About points / runs system it is concluded that more retailers likes PAC base points as on this
they are confident that they gets additional benefits while selling connection.
Runs on bonus cards are appreciated by retailers on the other retailers’ wants that strict terms and
condition for ETop and Connection sold on daily and monthly bases must be not included in
these scheme. As some time it is difficult for retailers to follow strict norms.
From above parameters and degree of significance it is analyses that 21 like & 15 dislike Airtel –
Navratna. So we can conclude that 59% of the Top retailer really likes Airtel – Navratna and 41
dislike it. In compare with Vodafone – SKH it is analyses that 28 like & 8 dislike by top
retailers. By analysis we conclude that SKH scores are better off as compared to Navratna.
Bibliography
1. Company manuals.2. Product brochures, Leaflets and other advertisement materials.3. Websites – www.dot.gov.in/osp/Brochure/Brochure.htm
www.vodafone.in
www. essar .com
www.trai.org
www.telecomwatch.in
www.telecomupdate.net
Books – C.R Kothari; “Research Methodology” Pg: 14 – 21, 100 – 105.
Statistics by SP Gupta Pg: 881 – 951
The Marketing Whitebook 2010-2011
Comparison of Special Loyalty Program
Name: _____________________________________________ Age: ______________________
Shop Name: ____________________________________________________________________
Address: _______________________________________________________________________
City, State, Zip: __________________________________________________________________
Mobile nu: ____________________, ____________________ Today’s date: _________________
Telecom operators you deal with
Vodafone Airtel Idea Others ______________
Reliance Tata Indicom MTS All
Average number of new connection sold in a month ( mark):
<150 150 – 250 251 – 400 401 – 600 600 <
Airtel
Vodafone
Idea
Reliance
Average (Rs) E-Top per day ( mark):
<5,000 5,001 – 25,000 25,001 – 50,000 50,001 – 1,00,000 1,00,001 <
Airtel
Vodafone
Idea
Reliance
Do you aware of special scheme “Score Kya Hai” offer by Vodafone ( mark).
Yes No
Do you aware of special scheme “Navratna” offer by Airtel ( mark).
Yes No
Scheme you like the most ( mark)
Score Kya Hai Navratna
Key points you like in registration process of Airtel “Navratna” and Vodafone “Score Kya Hai” ( mark).
Airtel “Navratna” Vodafone “ Score Kya Hai”
Registration Process
Registration method throw __ TM __ SMS __ Enrollment letter
Registration method throw __ AM __ SMS __ Enrollment letter
Target base on __ Activation __ E-Top
Target base on __ Activation __ E-Top __ Bonus card
Category -- (Platinum, Gold, Silver ) No such Category
Activation . Platinum - 500 per month . Gold – 200 per month . Silver -100 per month
Activation
No such hard & fast rule.
ETop . Platinum – Rs 5000 per day . Gold – Rs 3000 per day . Silver – Rs 2000 per day
ETop
No such hard & fast rule.
Key points you like in Points / Runs system in Airtel “Navratna” and Vodafone “Score Kya Hai” ( mark).
Airtel “Navratna” Vodafone “ Score Kya Hai”
Scoring of Points / Runs
Points system Runs System
Base on PAC + CIF + RES Base on PAC + CIF + RES + OTF
Activation _ 1 Prepaid connection - 1 point _ 1 Postpaid connection - 2 point
Second Recharge . Rs 14 SR – 1 Run Rs 28 SR – 3 Run . Rs 37 SR – 2 Run Rs 48 SR – 4 Run . Rs 98 SR – 5 Run Rs 175 SR – 6 Run . RES 5 by the end of the month
ETop _ Recharge of Rs 5000 - 1 point
ETop -- Single recharge of Rs 200 – 1 Run
No points on sell of Bonus Card Sell Bonus card & get additional runs . 10 - 25 – 1 Run per BC . 26 - 50 – 1.5 Run per BC . 51 - 100 – 2 Run per BC . 100 < – 3 Run per BC
No such point system T1M of retailer is 65% & above – 3 Run per alive subscriber
Timely performance tracking system _ TM _ SMS
Timely performance tracking system _ AM _ SMS
Method for calculation of Incremental Sales Growth No such difficult calculation
Key points you like in party of Airtel “Navratna” and Vodafone “Score Kya Hai” ( mark).
Airtel “Navratna” Vodafone “ Score Kya Hai”
Party Details
Invitation . SMS TM Invitation letter
Invitation . SMS AM Invitation letter
Price -- Gold & Silver coin . Top 30% retailers in each category will be reward . Platinum – 15gm gold coin . Gold – 10gm gold coin . Silver – 5gm gold coin . Other Qualified Retailers . Platinum – 30 gm silver coin . Gold – 20gm silver coin . Silver – 10gm silver coin
Price -- Ranges of electronic items & other useful products
Party
-- Location -- Cultural program -- Talk show -- Drink -- Dinner -- Gifts
Party
-- Location -- Cultural program -- Talk show -- Drink -- Dinner -- Gifts
Any other point which you want to mentions:
(i) _______________________________________________________________________________
(ii) _______________________________________________________________________________
(iii) _______________________________________________________________________________
What type of improvement you like to see in Vodafone “Score Kya Hai”?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
Signature