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An analysis of the distribution channel of Vodafone
01.PRODUCTS AND SERVICES
EMERGING BUSINESSES
In order to expand, any business needs a good infrastructural as well as technological support,
thus Vodafone highly focuses on providing such solutions which helps companies in facing the
upcoming challenges. The range of communication offerings brings voice and data together
and also the wireless and wireline services which definitely plays a major role in being more
responsive to the customers, suppliers as well as colleagues in the office. Also, the solutions
offered by Vodafone helps in reducing the cost and improve efficiency with its mobile, fixed
and machine-to-machine technology solutions.
EMERGING
BUSINESSES
•Wireline solutions
•Enterprise mobility
•Machine to machine solutions
•Business value added services
LARGE
CORPORATES
•Wireline solutions
•Enterprise mobility
•Machine to machine solutions
•Conferencing and collaboration
•Business value added services
GOVERNMENT
•Wireline solutions
•Enterprise mobility
•Machine to machine solutions
•Conferencing and collaboration
•Business value added services
 Multi– protocol label switching is a
virtual private network of Vodafone which
geographically connects diverse locations.
 Leased circuits which is delivered on
seamless optic fiber network helps in keeping
the offices connected with each other
constantly.
 The best solution for the connectivity
with the remote area branches can be choose
depending upon the connectivity needs and
existing infrastructure.
 The internet leased lines helps in connecting with the outside world and also provides
secure data connectivity to the organizations.
 Vodafone’s Office Wireline Voice Service transforms the employee extensions to
direct lines. Each E1 link carries 30 digital voice channels. This means that an effective
EPABX can be set up to enable simultaneous usage of 30 phone lines, used by multiple
extensions, so that businesses can grow without worrying about unnecessary telephone
lines.
 To support flexible workforce and
maintain control over the costs
enterprises needs to embrace mobile
technologies. Voice and data
propositions are designed keeping in
mind such needs.
 Vodafone offers high speed
internet which enables the employees in
working efficiently even when they are
away from the office.
 E-mail & connectivity offered by
Vodafone keeps the employees
connected easily ad cost effectively at
any point of time.
 National and international roaming plans keeps the employees connected without much
worrying about the costs.
 Vodafone helps to mobilize key enterprise applications such as ERP, CRM, and Sales
Force Automation, Credit and Collections, Inventory Management and other industry-
specific business applications.
 Vodafone Secure Device Manager is a web-based service that helps the businesses fully
understand, manage and control the mobile devices.
leased circuitsdomestic mpls
WIRLINE
SOLUTIONS
remote connect
internet leased
line
office wireline
voice (e2-did)
ENTERPRISE
MOBILITY
Mobility
plans
Mobile
internet
plans
Email and
connectivity
Roming
solutions
Application
mobility
Secure
device
manager
 Vodafone location tracker helps in
locating the assets of the organization.
 Vodafone’s Smart Metering Solutions
offers an efficient and cost-effective way to
monitor any consumable, from domestic gas
usage to electricity for home usage or large
scale grid management.
 Vodafone’s solutions in the automotive
and telematics industry helps in enhancing
vehicle performance, thereby improving
customer satisfaction.
 Vodafone offers Remote Asset
Management solutions, which enable remote
monitoring and maintenance of assets,
machines and systems.
 Vodafone’s Machine to Machine Service
Platform is a managed connectivity platform which provides control, visibility and
manageability of your assets.
 Vodafone offers M2M Special SIMs for applications and devices, which operate under
higher temperature and pressure limits, such as embedded vehicle tracking and
navigation devices.
 Businesses around the world use toll free
numbers to generate new leads, serve
customers and receive feedback.
 Vodafone’s Global Virtual Number
(GVN) enables to run a multiple choice or
voting-based contest through an interactive
SMS service.
 Network Monitoring Alerts from
Vodafone help in making real-time, data-
driven decisions, Keep track of IT network
with regular SMS updates.
 Vodafone’s Caller Tunes allow to convey
your corporate image, message or brand
connect with clients and stakeholders.
 Missed Call Information from Vodafone
helps to know who has called at all times.
 Vodafone m-pesa™ is a fast, secure and convenient Payment and Cash Management
solution for business.
MACHINE TO
MACHINE
SOLUTIONS
Vodafone
loaction
tracker
Smart
metering
Automotive
and
telematics
Remote asset
management
Service
platform
Special SIMs
Business value
added services
Toll free
service
Global
virtual
number
Networking
monitering
alerts
Callertunes
Miss call
information
m-pesa
LARGE CORPORATES
For a business to grow and respond to the threats and opportunities, Vodafone’s flexible
infrastructure helps to innovate and implement new communication technologies by reducing
the cost and complexity of managing global communications. The mobile, fixed and machine-
to-machine technology helps in creating new products, revenue streams and routes to market.
Various powerful tools and flexible approach makes the people happier, more engaged and
more productive at the same time.
Apart from Wireline solutions, Enterprise mobility, Machine to machine solutions and
Business value added services Vodafone provides conferencing and collaboration facilities for
the large corporates
Vodafone’s Audio Conferencing Service
provides a reliable, cost-effective solution
for connecting workforce across
geographies and time-zones.
 Vodafone’s next-generation Managed
Video Conferencing Service provides
enterprise an edge by enabling effective
collaboration among your employees,
business partners, suppliers, distributors,
customers and other teams.
GOVERNMENT
Government’s priority is to mobilize its governance towards its citizens. Mgovernance
solutions offered by Vodafone enables in realizing the Digital India ambition of creating
sustainable societies. Service-oriented approach and capabilities in the Machine to Machine
and Fixed Line solutions along with global expertise in the field mobility makes Vodafone the
partner of choice for digital India. Vodafone provides powerful and innovative solutions and a
flexible approach that will make citizens engaged, informed and more empowered.
Wireline solutions, Enterprise mobility, Machine to machine solutions, Business value added
services and conferencing and collaboration facilities are provided by provided by Vodafone
to the government.
Audio
conferencing
Managed
video
conferencing
Conferencing
&
collaborating
02. INDUSTRY ECO SYSTEM
Telecom industry has been highly affected because of the digital age. The evading of analog
phone systems to the current battle over net neutrality, the telecom industry is suffering big
time.
1. According to the census bureau there are fewer telecom companies as well as
employees in the industry in the year 2014 as compared to 2008. Some of the hallmarks
of the telecom industry are mergers, acquisitions and bankruptcies. The survey
conducted by census bureau shows 6 % fewer companies operating in this sector in
2014 than in 2008 and also the number of people working in this industry dropped down
by 14 %.
Source: Census bureau data (2014)
Source: Census bureau data (2014)
The possible reasons for the above change could be:
1. There was a downsizing trend among the companies which remained operating in the
industry apart from the reduction in the companies as a whole.
2. More than average number of employees were working in the companies which either
failed or merged
3. Outsourcing of the jobs was done by many companies.
47000 48000 49000 50000 51000 52000 53000
2008
2014
NUMBER OF COMPANIES
NUMBER OF COMPANIES
1 1.05 1.1 1.15 1.2 1.25 1.3
2008
2014
NUMBER OF EMPLOYEES (in millions)
NUMBER OF EMPLOYEES (inmillions)
2. In this period of 5-6 years, the total receipts of the industry which includes value of
sales, shipments, receipts, revenue etc. increased almost by 15%
Source: Census bureau data (2014)
Though the industry as a whole bought in more money, a very small amount of money
was paid to the workforce for their efforts. The annual cumulative payroll shrank by
2%.
Source: Census bureau data (2014)
Due to the increased efficiencies industry’s profit margin increased tremendously. So, rather
than spending on the payroll, the profit was used by the companies on the following areas:
1. Industry research especially by the private players in order to give a tough
competition to the competitors.
2. Development of infrastructure – 3G/4G services and fiber-to-home/office networks.
3. Dividends to the shareholders
From the above statistics it can be concluded that may be the number of companies in this
sector might keep on declining but still mobile and the wireless sector can turn out to be an
exception to this and may continue to expand to keep up with the growing consumer demand
for mobile data in the coming years.
440 460 480 500 520 540 560 580
2008
2014
Telecom industry total reciepts
Telecom industry total reciepts
73 73.5 74 74.5 75 75.5 76
2008
2014
Annual payroll
Annual payroll
03. Types of market structure
Indian Telecommunication industry, with around 464.82 million telephone associations (Dec
2009), is the third biggest telecom arrange on the planet and the second biggest as far as number
of remote associations. For as long as decade or thereabouts, telecom exercises have picked up
force in India. The Indian Telecommunication Market has been commanded by few noteworthy
players, and henceforth it is an impeccable instance of Oligopoly.
Oligopoly alludes to a business sector structure where an industry is ruled by a little number of
huge dealers. Since there are couple of members in this kind of business sector, each
oligopolistic is mindful of the activities of the others. The choices of one firm impact, and are
impacted by, the choices of different firms.
Group company wise % of market share – Dec 2014 total sub figures
Table Representing the Data for companies as on Aug 2014
Sl no. Name of company Total sub figures % of market share
1 Airtel 107996533 32.19%
2 Vodafone 80874466 24.11%
3 BSNL 52056417 15.52%
4 Idea 50058471 14.92%
5 Aircel 24415514 7.28%
6 Reliance 13281225 3.96%
7 MTNL 4352781 1.30%
Collusion
There is a body working for the privileges of the cell suppliers, The Cellular Operators
Association of India (COAI) which was constituted in 1995 presently, non-benefit, non-
administrative society devoted to the progression of correspondence. COAI's principle
targets are to secure the regular & aggregate hobbies of its individuals.
Price Leader
There is a merciless rivalry in the Indian Cellular business sector and there is no extent
of having a solitary Price Leader in the business, presently them go after the costs and
the client base.
Abnormal Profits
There is no confirmation of strange benefits in the Indian Cellular Market, at this very moment
are not contending among themselves for the higher piece of the overall industry and the
benefits. The Indian cell business sector is likewise controlled by the Telecom Regulatory
power of India (TRAI). So there is less risk for the contenders to increase strange benefits.
Barriers to Entry
Termination Fees: If someone owns an interconnected cellular network, the incremental
marginal costs will be directly proportional to the amount of traffic leaving the network and he
will gain addition revenue for every inbound call from another network completed on the
network. These fees are normally set by the regulator and are an incredibly important barrier
to entry.
Churn: The following most vital figure particularly a soaked business sector is the rate of beat,
clearly the bring down the rate the more it is going to take another contestant to get to balance
and consequently the higher the starting working misfortunes and financing necessities
Customer Acquisition Costs: The new contestant needs not just the funding to get range,
assemble the system and account start-up misfortunes, however it needs enough cash to
sufficiently secure clients to get to harmony. The higher the Customer Acquisition Costs the
higher the boundaries to passage.
Investor Patience: Particularly for a cited organization, the most troublesome obstruction to
section to overcome is speculator tolerance. On the off chance that anything turns out badly
and payback takes longer than anticipated they could wind up with a semi-injured auxiliary
without the speculation needed to get to "ideal" piece of the overall industry.
Interdependence
Albeit there is a relentless rivalry in the Cellular business sector, there are an altered number
of firms in the cell market, so the cell suppliers are prone to perceive their reliance. The
homogeneity and the likeness of expenses make them associated.
04. Levels of channel for Vodafone
Indirect channel
Tier 1 – Indirect channel Urban
This chart shows indirect channel distribution of Vodafone for urban area, Distributor and
distributor sales executive are playing key role in this channel they helps to reach the Vodafone
retailer and then to the end user.
Indirect channel (Tier 2) rural
 2 Tiered model helps in increase the presence and relevance of service and sales of the
company.
 Associate distributors are appointed for fulfilling the needs of the customers and they
will be designated with certain areas.
 Associate distributors are also responsible for providing service.
Exclusive retail
 Vodafone store in Urban areas provide better quality of service and a good collection
of smart phones which can be used with Vodafone service with a personalised package
 Vodafone mini stores is more convenient its opened with a collaboration with
individuals provide service in semi urban areas
 Vodafone mini store- rural area provides more depth service to their customers.
Direct channel
 Direct sales agents sells their services by feet on street and cold calling
 By tele-calling outbound tele-calling setup, with feet on street fulfilment model
 Analytics based data provided-pre to post migration are used in telecalling
Geographic identification for opening new Vodafone outlets
 Coordinate mapping of all retailers in particular area.
 The data which all are collected will stored in a excel sheet.
 Upload all the details in a mapping tool .
 Through that all the visible gaps are analysed.
 Then new retailers are appointed in selected gaps
 Then the stores of Vodafone will cover all the areas which enable better service to
the end users.
05. STRATEGIC PARTNERS/ALLIANCES/INTEGRATION
INTRODUCTION
Vodafone has been a smart player right from its days of incorporation, when it comes to
strategic partnerships and alliances. If keenly observed, it could be observed that, beyond the
United Kingdom, any country/continent that Vodafone has ventured into and has been able to
become a major player in the market, it first started off with a strategic partnership with one of
the major players in the respective markets (not necessarily the best player), and slowly went
on to rule the markets. At later stages, many a times, Vodafone also happened to buyout these
partners, thus becoming the lone brand, upon tasting success, with little risk. The best examples
to talk of could be countries like India and African countries.
In India, after having bought a 5% stake in Airtel, Vodafone went on to partner with Essar
group to come into operation and later after 2011, bought majority of the stakes from its partner,
now making ‘Vodafone India’ an individual player with Vodafone Global as its parent
company. Similar is the story with Safaricom, the once major telecom player in African
countries, now more famously known as Vodacom.
GLOBAL PARTNERSHIPS/ALLIANCES
1. MTS: As of October, 2008, MTS, biggest cell telephone administrator in Russia and
the CIS, along with Vodafone declared a key non-value organization to furnish clients
with excellent interchanges administrations and to work together mutually on future
innovative improvements.
Under the understanding, MTS will have the capacity to draw on Vodafone's aptitude
in building and growing third era (3G) systems and versatile broadband items, working
with driving worldwide gear suppliers and conveying creative CRM practices to
improve quality and further enhance the proficiency of its operations. Likewise, MTS
will have a select access to a scope of items, administrations and gadgets from
Vodafone for its businesses of operation in Russia, Ukraine, Uzbekistan, Turkmenistan
and Armenia.
The partnership with MTS will give Vodafone important knowledge into the chances
of the imperative information transfers markets of Russia and the CIS, which are among
the quickest developing on the planet. Vodafone's items will be made accessible to
MTS' 87 million endorsers, including more than 60 million clients in Russia, the
numbers as of October, 2008.
The alliance also ensures that Vodafone's items and administrations will be promoted
in Russia and the CIS under a co-marked methodology. Vodafone will likewise open
an agent office in Moscow to co-work all the more nearly with MTS on future offerings
and client administrations.
2. Conexus: The year 2011 saw the collaboration of Vodafone and Conexus mobile, thus
enabling Vodafone to expand significantly expand in Asia. This strategic partnership
had led to enhancement of roaming experience for a combined global mobile customer
base of over 600 million. This alliance with time has enabled Vodafone to further ties
and partnerships with:
 FarEasTone (Taiwan)
 Hutchison Telecom (Hong Kong)
 NTT DOCOMO (Japan)
 SMART (the Philippines)
 StarHub (Singapore)
 TrueMove (Thailand)
Leaving out India, this partnership enabled Vodafone to spread across all Asia leaving
out India, where it is already well established as Vodafone India, and China.
3. Bmobile: In 2014, an alliance with Bmobile got Vodafone’s operations into Papua New
Guinea and the Solomon Islands.
With this partnership, Bmobile will profit by access to Vodafone best practice and items
and administrations which will empower it to upgrade its suggestion to clients in Papua
New Guinea and the Solomon Islands. Vodafone's multinational endeavor clients will
profit by the expansion of Papua New Guinea and the Solomon Islands to their current
contracts for worldwide oversaw administrations, while keeping on being overhauled
by means of a solitary purpose of contact.
4. SFR: Vodafone and SFR have been strategic partners for over a decade and in 2014,
went on to extend their partnership for 5 more years to come. SFR being the second
largest telecom player in France, gives all scope to Vodafone to root into one of the
largest markets in Europe.
STRATEGIC PARTNERSHIPS/ALLIANCES IN INDIA
In India, after successfully establishing itself as a telecom giant, becoming the second
best player in terms of market share after Airtrel, Vodafone’s partnerships have been
more centric towards improvising the services they provide.
1. ICICI Bank: In 2012, Vodafone went on to have a strategic alliance with ICICI Bank in
India, to launch Mpesa, a unique mobile money transfer and payment service. The service
enabled all Vodafone subscribers in India to following facilities:
 Cash deposit and withdrawal from designated outlets
 Money transfer to any mobile phone in India
 Range of mobile payment services including purchase of mobile recharge, recharge of
DTH services and utility bill payments
 Money transfer to any bank account in India
Payments at select shops.
2. Star India: Vodafone partnered with television giant Star India in 2014 to launch
Vodafone Sports, first-of-its-kind service that brings action from across sports to
feature phones and smartphones. For Vodafone, the activity is a stage towards
understanding its system to drive information utilization and infiltration on portable.
As per the organization, it has about 100 million information clients out of which right
around 45 million utilization information on the portable consistently. Through
Vodafone Sports, the telecom administrator means to drive information utilization
among these clients and rope in different clients through pertinent and excellent games
content.
3. PAYBACK: In 2013, an alliance with India’s largest multi brand loyalty program made
Vodafone the first in telecom industry to be doing so. With this alliance, Vodafone
enabled the option of redeeming points on PAYBACK, for every rupee they spend on
availing Vodafone services, thus making them a promise of additional monetary returns
upon what they spend over Vodafone.
4. Baesystems: In 2014, Vodafone tied up with Baesystems, a cyber and security systems
player. This alliance which was signed for a five year time period, was to be able to
provide mobile security solutions to its subscribers in India and abroad.
07. MARKET COVERAGE
Vodafone is licensed to operate in designated geographical operating areas. The service area
includes:
 Four metro areas
 18 circles categorized as A, B and C
The metros account for 40% of the subscriber population, with Category A, B and C accounting
for 33%, 23% and 4% respectively. This means that the potential with category C circles in the
lower end of the scale.
GLOBAL PRESENCE OF VODAFONE
Vodafone Operating Countries
Vodafone's partners and affiliates
DIRECT CHANNELS
INDIRECT CHANNELS
 TIER – 1 (URBAN)
 TIER – II (RURAL)
DIRECTSALESAGENT
FEET ON STREET
COLD CALLING
TELECALLING
OUTBOUND TELE
CALLING
ANALYTICS BASED
DATA PROVIDED PRE
TO POST MIGRATION
SUPERCALLCENTRE
CALL TRANSFER
FROM INBOUND
CALL CENTRE
IMMEDIATE
TRANSFER TO A DSA
TELE-CALLING SETUP
VODAFONE DISTRIBUTOR RETAILER
MAIN
TOWN
Direct distribution to
village clusters
within 20 km
Cluster of villages
services by associate
distributor
Cluster of villages
services by
associate
distributor
08. COMMISSION, INCENTIVE AND PRICING POLICIES
Pay for performance continues to be an important principle for Vodafone when setting
remuneration policy. A high proportion of total reward is awarded through short-term and long-
term performance related remuneration. At target around 70% of the package is delivered in
the form of variable pay, which rises to around 85% if maximum payout is achieved.
It ensures that incentive plans only deliver significant rewards if and when they are justified by
performance. For the Remuneration Committee this means two things:
1. Ensuring the targets they set for incentive plans are suitably challenging
2. The Committee review all incentive plans before any payments are made to executives and
has full discretion to adjust payments downwards if it believes circumstances warrant it.
Pay Link to Performance
Vodafone offers performance-related pay schemes that focus not only on individual
performance, but also on team and company measures. All of these measures are transparent
and monitored on a regular basis so that they know exactly how the performance and the
company's performance influence the level of reward people receive.
REWARDS AND RECOGNITION
Vodafone offers competitive and fair rates of pay and benefits to attract and retain the best
people.
Their global short- and long-term incentive plans reward employees based on their
performance, potential and contribution to the success of the business. An ownership mentality
is also a cornerstone of their reward programme and senior executives are expected to build up
and maintain a significant holding in Vodafone shares.
In addition, employees are entitled to a great range of benefits :
 Free participation to a health / life insurance scheme for employees and their family.
 Mobile phone with preferential rates.
 Discounts on Vodafone products and services, special rates on a wide range of retail shops
& restaurants. (Employee Shopping Club)
 Discounts on various other insurance plans. (i.e. car, housing, health)
 Food allowance & vouchers.
 Free use of company’s own gym facilities.
PRICING POLICIES
Vodafone’s products and services are competitively priced and easily accessible to as many
people as possible. In order to beat the competition, the company has ensured that it provides
high quality services such as providing high speed data and good network range as compared
to what the competition is offering
Mini as well as jumbo prepaid and postpaid plans are available. As of late, Vodafone has
multiplied its 2G and 3G web rates. This however will be taken after soon by its opponents and
in addition it has get to be difficult to contain information rates off late.
Another important pricing strategy is that the company offers reward points for specified sum
of money spent on purchasing airtime vouchers or data bundles. With a pan India presence,
Vodafone is surely one of the leaders in the telecom sector.
11. MERCHANDISING BY VODAFONE
Vodafone could possibly be called the most applauded telecom operator when it comes to its
ad campaigns. Be it Cheeka (the pug) which they adopted from Hutch after taking over, or the
Zoozoos which they promoted in the country from the second season of IPL, the characters are
well remembered till date, and the love people have for them is never diminishing. This has
helped Vodafone push merchandise imprinted with these characters to a good level into the
market, giving them an edge over the other players in terms of increasing the presence of brand
to greater extent through merchandising.
These characters have also enabled visual merchandising to a great extent at the point of sale.
Every Vodafone store sells varied products like coffee mugs, t-shirts, key chains, etc. with the
images of these characters imprinted on them. With people buying these products, out of love
for the characters or to show the association ship with the brand benefit the company in a way
which could be termed as ‘promotion on the move’.
Vodafone’s speech mark, the logo is also quite prominent and famous with the public. And it
could be termed as the most recognised logo when compared to those of other telecom players
in India.
With all the significant recognition it has got, Vodafone enjoys a good level of visual presence,
be it through its stores, its associated dealer shops (called mini-stores), or through any other
commonly adopted measures to promote visual merchandising at the point of sale, like banners
and posters at recharge stores, hoardings at major areas, etc.
They also have an e-merchandise store where all the Vodafone merchandise are made
available. The online store sells everything from bags, watches, office equipment etc. to even
golf clubs and other sports material!
With respect to merchandising, there aren’t any special requirements that Vodafone as a
company has as it is already doing everything and to a good level. Vodafone has tabbed upon
every possible aspect of visual merchandising, and with the online store making products
available at a marketplace most sought after in the present day, and the place where sales is
fast growing, with increasing transactions happening online, Vodafone is at a very good
position in this regard.
An analysis of the distribution channel of vodafone
12 CHANNEL PROMOTIONS OF VODAFONE ATL AND BTL:
ATL is a kind of promoting through media, for example, TV, silver screen, radio, print, and
Out-of-home to advance brands or pass on a particular offer. This kind of correspondence is
routine in its inclination and is viewed as indifferent to clients. It contrasts from BTL
promoting, which utilizes capricious brand-building and limited time techniques, for example,
post office based mail, deals advancements, flyers, purpose of-offer, telemarketing and printed
media (for instance pamphlets) – and normally includes no movement representation. It is
substantially more viable than when the objective gathering is expansive and hard to
characterize
Vodafone is very popular with its ATL promotion campaigns, be it the huge red hoardings, or
even the ZooZoo campaign that took telecom advertising to a whole new level. Vodafone has
always succeeded in striking an amazing chord with its audiences with each and every
campaign it has done.
Vodafone does ATL advertising very effectively, be it sponsoring a foot ball team, running an
excellent ad campaign or even hosting on hot air balloons at the international Garba Festival
Outdoor hoardings have always been a key ATL promotion Vodafone has done.
The canopies are ready to hit the annual October fest in Bangalore.
BTL SALES PROMOTION: is moderately prompt. It is effective and savvy for focusing on
a constrained and particular gathering. It utilizes less routine routines than the typical ATL
channels of publicizing, ordinarily concentrating on direct method for correspondence, most
normally standard mail and email, regularly utilizing profoundly focused on arrangements of
names to expand reaction rates.
Pamphlets, Vodafone postpaid sales promotions, personalized emails to certain clients etc.
13 EVALUATION OF CHANNEL EFFECTIVENESS:
Channel effectiveness is a combination of finding the best route to the customer which is also
the most cost efficient.
Effectiveness: Providing the obliged administration most cost adequately.
a. Delivery : A short term, goal oriented measure of on time delivery of services to
Vodafone customers
b. Stimulation of interest: What are the interests made by the channel part to build client
base or expand the use of the item.
Equity: Extent to which advertising channel serves issue ridden markets and market segments
The reach the Vodafone has is vast when compared to other telecom providers globally.
The reach the Vodafone has is vast when compared to other telecom providers globally.
Efficiency: Output / Input
Performance measures Vodafone follows
Effectiveness Equity
Efficiency
Productivity: The efficiency with which the output is generated from the resources and inputs.
Operational efficiency:
a. Labor efficiency: Productive call %
b. Efficiency of salesman: Number of outlets secured
A telecom provider like Vodafone runs its services in almost every nook and corner of a
territory and this is one of the reason consumers select a particular provider so that they stay
connected.
.
Indirect channelDirect channel
Channel segmentation
Corporate Profitability
East
EastWest West
A B C A B C A B C A B C
Territory segmentation
Product segmentation

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An analysis of the distribution channel of vodafone

  • 1. An analysis of the distribution channel of Vodafone
  • 2. 01.PRODUCTS AND SERVICES EMERGING BUSINESSES In order to expand, any business needs a good infrastructural as well as technological support, thus Vodafone highly focuses on providing such solutions which helps companies in facing the upcoming challenges. The range of communication offerings brings voice and data together and also the wireless and wireline services which definitely plays a major role in being more responsive to the customers, suppliers as well as colleagues in the office. Also, the solutions offered by Vodafone helps in reducing the cost and improve efficiency with its mobile, fixed and machine-to-machine technology solutions. EMERGING BUSINESSES •Wireline solutions •Enterprise mobility •Machine to machine solutions •Business value added services LARGE CORPORATES •Wireline solutions •Enterprise mobility •Machine to machine solutions •Conferencing and collaboration •Business value added services GOVERNMENT •Wireline solutions •Enterprise mobility •Machine to machine solutions •Conferencing and collaboration •Business value added services
  • 3.  Multi– protocol label switching is a virtual private network of Vodafone which geographically connects diverse locations.  Leased circuits which is delivered on seamless optic fiber network helps in keeping the offices connected with each other constantly.  The best solution for the connectivity with the remote area branches can be choose depending upon the connectivity needs and existing infrastructure.  The internet leased lines helps in connecting with the outside world and also provides secure data connectivity to the organizations.  Vodafone’s Office Wireline Voice Service transforms the employee extensions to direct lines. Each E1 link carries 30 digital voice channels. This means that an effective EPABX can be set up to enable simultaneous usage of 30 phone lines, used by multiple extensions, so that businesses can grow without worrying about unnecessary telephone lines.  To support flexible workforce and maintain control over the costs enterprises needs to embrace mobile technologies. Voice and data propositions are designed keeping in mind such needs.  Vodafone offers high speed internet which enables the employees in working efficiently even when they are away from the office.  E-mail & connectivity offered by Vodafone keeps the employees connected easily ad cost effectively at any point of time.  National and international roaming plans keeps the employees connected without much worrying about the costs.  Vodafone helps to mobilize key enterprise applications such as ERP, CRM, and Sales Force Automation, Credit and Collections, Inventory Management and other industry- specific business applications.  Vodafone Secure Device Manager is a web-based service that helps the businesses fully understand, manage and control the mobile devices. leased circuitsdomestic mpls WIRLINE SOLUTIONS remote connect internet leased line office wireline voice (e2-did) ENTERPRISE MOBILITY Mobility plans Mobile internet plans Email and connectivity Roming solutions Application mobility Secure device manager
  • 4.  Vodafone location tracker helps in locating the assets of the organization.  Vodafone’s Smart Metering Solutions offers an efficient and cost-effective way to monitor any consumable, from domestic gas usage to electricity for home usage or large scale grid management.  Vodafone’s solutions in the automotive and telematics industry helps in enhancing vehicle performance, thereby improving customer satisfaction.  Vodafone offers Remote Asset Management solutions, which enable remote monitoring and maintenance of assets, machines and systems.  Vodafone’s Machine to Machine Service Platform is a managed connectivity platform which provides control, visibility and manageability of your assets.  Vodafone offers M2M Special SIMs for applications and devices, which operate under higher temperature and pressure limits, such as embedded vehicle tracking and navigation devices.  Businesses around the world use toll free numbers to generate new leads, serve customers and receive feedback.  Vodafone’s Global Virtual Number (GVN) enables to run a multiple choice or voting-based contest through an interactive SMS service.  Network Monitoring Alerts from Vodafone help in making real-time, data- driven decisions, Keep track of IT network with regular SMS updates.  Vodafone’s Caller Tunes allow to convey your corporate image, message or brand connect with clients and stakeholders.  Missed Call Information from Vodafone helps to know who has called at all times.  Vodafone m-pesa™ is a fast, secure and convenient Payment and Cash Management solution for business. MACHINE TO MACHINE SOLUTIONS Vodafone loaction tracker Smart metering Automotive and telematics Remote asset management Service platform Special SIMs Business value added services Toll free service Global virtual number Networking monitering alerts Callertunes Miss call information m-pesa
  • 5. LARGE CORPORATES For a business to grow and respond to the threats and opportunities, Vodafone’s flexible infrastructure helps to innovate and implement new communication technologies by reducing the cost and complexity of managing global communications. The mobile, fixed and machine- to-machine technology helps in creating new products, revenue streams and routes to market. Various powerful tools and flexible approach makes the people happier, more engaged and more productive at the same time. Apart from Wireline solutions, Enterprise mobility, Machine to machine solutions and Business value added services Vodafone provides conferencing and collaboration facilities for the large corporates Vodafone’s Audio Conferencing Service provides a reliable, cost-effective solution for connecting workforce across geographies and time-zones.  Vodafone’s next-generation Managed Video Conferencing Service provides enterprise an edge by enabling effective collaboration among your employees, business partners, suppliers, distributors, customers and other teams. GOVERNMENT Government’s priority is to mobilize its governance towards its citizens. Mgovernance solutions offered by Vodafone enables in realizing the Digital India ambition of creating sustainable societies. Service-oriented approach and capabilities in the Machine to Machine and Fixed Line solutions along with global expertise in the field mobility makes Vodafone the partner of choice for digital India. Vodafone provides powerful and innovative solutions and a flexible approach that will make citizens engaged, informed and more empowered. Wireline solutions, Enterprise mobility, Machine to machine solutions, Business value added services and conferencing and collaboration facilities are provided by provided by Vodafone to the government. Audio conferencing Managed video conferencing Conferencing & collaborating
  • 6. 02. INDUSTRY ECO SYSTEM Telecom industry has been highly affected because of the digital age. The evading of analog phone systems to the current battle over net neutrality, the telecom industry is suffering big time. 1. According to the census bureau there are fewer telecom companies as well as employees in the industry in the year 2014 as compared to 2008. Some of the hallmarks of the telecom industry are mergers, acquisitions and bankruptcies. The survey conducted by census bureau shows 6 % fewer companies operating in this sector in 2014 than in 2008 and also the number of people working in this industry dropped down by 14 %. Source: Census bureau data (2014) Source: Census bureau data (2014) The possible reasons for the above change could be: 1. There was a downsizing trend among the companies which remained operating in the industry apart from the reduction in the companies as a whole. 2. More than average number of employees were working in the companies which either failed or merged 3. Outsourcing of the jobs was done by many companies. 47000 48000 49000 50000 51000 52000 53000 2008 2014 NUMBER OF COMPANIES NUMBER OF COMPANIES 1 1.05 1.1 1.15 1.2 1.25 1.3 2008 2014 NUMBER OF EMPLOYEES (in millions) NUMBER OF EMPLOYEES (inmillions)
  • 7. 2. In this period of 5-6 years, the total receipts of the industry which includes value of sales, shipments, receipts, revenue etc. increased almost by 15% Source: Census bureau data (2014) Though the industry as a whole bought in more money, a very small amount of money was paid to the workforce for their efforts. The annual cumulative payroll shrank by 2%. Source: Census bureau data (2014) Due to the increased efficiencies industry’s profit margin increased tremendously. So, rather than spending on the payroll, the profit was used by the companies on the following areas: 1. Industry research especially by the private players in order to give a tough competition to the competitors. 2. Development of infrastructure – 3G/4G services and fiber-to-home/office networks. 3. Dividends to the shareholders From the above statistics it can be concluded that may be the number of companies in this sector might keep on declining but still mobile and the wireless sector can turn out to be an exception to this and may continue to expand to keep up with the growing consumer demand for mobile data in the coming years. 440 460 480 500 520 540 560 580 2008 2014 Telecom industry total reciepts Telecom industry total reciepts 73 73.5 74 74.5 75 75.5 76 2008 2014 Annual payroll Annual payroll
  • 8. 03. Types of market structure Indian Telecommunication industry, with around 464.82 million telephone associations (Dec 2009), is the third biggest telecom arrange on the planet and the second biggest as far as number of remote associations. For as long as decade or thereabouts, telecom exercises have picked up force in India. The Indian Telecommunication Market has been commanded by few noteworthy players, and henceforth it is an impeccable instance of Oligopoly. Oligopoly alludes to a business sector structure where an industry is ruled by a little number of huge dealers. Since there are couple of members in this kind of business sector, each oligopolistic is mindful of the activities of the others. The choices of one firm impact, and are impacted by, the choices of different firms. Group company wise % of market share – Dec 2014 total sub figures Table Representing the Data for companies as on Aug 2014 Sl no. Name of company Total sub figures % of market share 1 Airtel 107996533 32.19% 2 Vodafone 80874466 24.11% 3 BSNL 52056417 15.52% 4 Idea 50058471 14.92% 5 Aircel 24415514 7.28% 6 Reliance 13281225 3.96% 7 MTNL 4352781 1.30% Collusion There is a body working for the privileges of the cell suppliers, The Cellular Operators Association of India (COAI) which was constituted in 1995 presently, non-benefit, non- administrative society devoted to the progression of correspondence. COAI's principle targets are to secure the regular & aggregate hobbies of its individuals.
  • 9. Price Leader There is a merciless rivalry in the Indian Cellular business sector and there is no extent of having a solitary Price Leader in the business, presently them go after the costs and the client base. Abnormal Profits There is no confirmation of strange benefits in the Indian Cellular Market, at this very moment are not contending among themselves for the higher piece of the overall industry and the benefits. The Indian cell business sector is likewise controlled by the Telecom Regulatory power of India (TRAI). So there is less risk for the contenders to increase strange benefits. Barriers to Entry Termination Fees: If someone owns an interconnected cellular network, the incremental marginal costs will be directly proportional to the amount of traffic leaving the network and he will gain addition revenue for every inbound call from another network completed on the network. These fees are normally set by the regulator and are an incredibly important barrier to entry. Churn: The following most vital figure particularly a soaked business sector is the rate of beat, clearly the bring down the rate the more it is going to take another contestant to get to balance and consequently the higher the starting working misfortunes and financing necessities Customer Acquisition Costs: The new contestant needs not just the funding to get range, assemble the system and account start-up misfortunes, however it needs enough cash to sufficiently secure clients to get to harmony. The higher the Customer Acquisition Costs the higher the boundaries to passage. Investor Patience: Particularly for a cited organization, the most troublesome obstruction to section to overcome is speculator tolerance. On the off chance that anything turns out badly and payback takes longer than anticipated they could wind up with a semi-injured auxiliary without the speculation needed to get to "ideal" piece of the overall industry. Interdependence Albeit there is a relentless rivalry in the Cellular business sector, there are an altered number of firms in the cell market, so the cell suppliers are prone to perceive their reliance. The homogeneity and the likeness of expenses make them associated.
  • 10. 04. Levels of channel for Vodafone Indirect channel Tier 1 – Indirect channel Urban This chart shows indirect channel distribution of Vodafone for urban area, Distributor and distributor sales executive are playing key role in this channel they helps to reach the Vodafone retailer and then to the end user.
  • 11. Indirect channel (Tier 2) rural  2 Tiered model helps in increase the presence and relevance of service and sales of the company.  Associate distributors are appointed for fulfilling the needs of the customers and they will be designated with certain areas.  Associate distributors are also responsible for providing service.
  • 12. Exclusive retail  Vodafone store in Urban areas provide better quality of service and a good collection of smart phones which can be used with Vodafone service with a personalised package  Vodafone mini stores is more convenient its opened with a collaboration with individuals provide service in semi urban areas  Vodafone mini store- rural area provides more depth service to their customers. Direct channel  Direct sales agents sells their services by feet on street and cold calling  By tele-calling outbound tele-calling setup, with feet on street fulfilment model  Analytics based data provided-pre to post migration are used in telecalling Geographic identification for opening new Vodafone outlets
  • 13.  Coordinate mapping of all retailers in particular area.  The data which all are collected will stored in a excel sheet.  Upload all the details in a mapping tool .  Through that all the visible gaps are analysed.  Then new retailers are appointed in selected gaps  Then the stores of Vodafone will cover all the areas which enable better service to the end users.
  • 14. 05. STRATEGIC PARTNERS/ALLIANCES/INTEGRATION INTRODUCTION Vodafone has been a smart player right from its days of incorporation, when it comes to strategic partnerships and alliances. If keenly observed, it could be observed that, beyond the United Kingdom, any country/continent that Vodafone has ventured into and has been able to become a major player in the market, it first started off with a strategic partnership with one of the major players in the respective markets (not necessarily the best player), and slowly went on to rule the markets. At later stages, many a times, Vodafone also happened to buyout these partners, thus becoming the lone brand, upon tasting success, with little risk. The best examples to talk of could be countries like India and African countries. In India, after having bought a 5% stake in Airtel, Vodafone went on to partner with Essar group to come into operation and later after 2011, bought majority of the stakes from its partner, now making ‘Vodafone India’ an individual player with Vodafone Global as its parent company. Similar is the story with Safaricom, the once major telecom player in African countries, now more famously known as Vodacom. GLOBAL PARTNERSHIPS/ALLIANCES 1. MTS: As of October, 2008, MTS, biggest cell telephone administrator in Russia and the CIS, along with Vodafone declared a key non-value organization to furnish clients with excellent interchanges administrations and to work together mutually on future innovative improvements. Under the understanding, MTS will have the capacity to draw on Vodafone's aptitude in building and growing third era (3G) systems and versatile broadband items, working with driving worldwide gear suppliers and conveying creative CRM practices to improve quality and further enhance the proficiency of its operations. Likewise, MTS will have a select access to a scope of items, administrations and gadgets from Vodafone for its businesses of operation in Russia, Ukraine, Uzbekistan, Turkmenistan and Armenia.
  • 15. The partnership with MTS will give Vodafone important knowledge into the chances of the imperative information transfers markets of Russia and the CIS, which are among the quickest developing on the planet. Vodafone's items will be made accessible to MTS' 87 million endorsers, including more than 60 million clients in Russia, the numbers as of October, 2008. The alliance also ensures that Vodafone's items and administrations will be promoted in Russia and the CIS under a co-marked methodology. Vodafone will likewise open an agent office in Moscow to co-work all the more nearly with MTS on future offerings and client administrations. 2. Conexus: The year 2011 saw the collaboration of Vodafone and Conexus mobile, thus enabling Vodafone to expand significantly expand in Asia. This strategic partnership had led to enhancement of roaming experience for a combined global mobile customer base of over 600 million. This alliance with time has enabled Vodafone to further ties and partnerships with:  FarEasTone (Taiwan)  Hutchison Telecom (Hong Kong)  NTT DOCOMO (Japan)  SMART (the Philippines)  StarHub (Singapore)  TrueMove (Thailand) Leaving out India, this partnership enabled Vodafone to spread across all Asia leaving out India, where it is already well established as Vodafone India, and China. 3. Bmobile: In 2014, an alliance with Bmobile got Vodafone’s operations into Papua New Guinea and the Solomon Islands. With this partnership, Bmobile will profit by access to Vodafone best practice and items and administrations which will empower it to upgrade its suggestion to clients in Papua New Guinea and the Solomon Islands. Vodafone's multinational endeavor clients will profit by the expansion of Papua New Guinea and the Solomon Islands to their current contracts for worldwide oversaw administrations, while keeping on being overhauled by means of a solitary purpose of contact. 4. SFR: Vodafone and SFR have been strategic partners for over a decade and in 2014, went on to extend their partnership for 5 more years to come. SFR being the second
  • 16. largest telecom player in France, gives all scope to Vodafone to root into one of the largest markets in Europe. STRATEGIC PARTNERSHIPS/ALLIANCES IN INDIA In India, after successfully establishing itself as a telecom giant, becoming the second best player in terms of market share after Airtrel, Vodafone’s partnerships have been more centric towards improvising the services they provide. 1. ICICI Bank: In 2012, Vodafone went on to have a strategic alliance with ICICI Bank in India, to launch Mpesa, a unique mobile money transfer and payment service. The service enabled all Vodafone subscribers in India to following facilities:  Cash deposit and withdrawal from designated outlets  Money transfer to any mobile phone in India  Range of mobile payment services including purchase of mobile recharge, recharge of DTH services and utility bill payments  Money transfer to any bank account in India Payments at select shops. 2. Star India: Vodafone partnered with television giant Star India in 2014 to launch Vodafone Sports, first-of-its-kind service that brings action from across sports to feature phones and smartphones. For Vodafone, the activity is a stage towards understanding its system to drive information utilization and infiltration on portable. As per the organization, it has about 100 million information clients out of which right around 45 million utilization information on the portable consistently. Through Vodafone Sports, the telecom administrator means to drive information utilization among these clients and rope in different clients through pertinent and excellent games content. 3. PAYBACK: In 2013, an alliance with India’s largest multi brand loyalty program made Vodafone the first in telecom industry to be doing so. With this alliance, Vodafone enabled the option of redeeming points on PAYBACK, for every rupee they spend on availing Vodafone services, thus making them a promise of additional monetary returns upon what they spend over Vodafone.
  • 17. 4. Baesystems: In 2014, Vodafone tied up with Baesystems, a cyber and security systems player. This alliance which was signed for a five year time period, was to be able to provide mobile security solutions to its subscribers in India and abroad. 07. MARKET COVERAGE Vodafone is licensed to operate in designated geographical operating areas. The service area includes:  Four metro areas  18 circles categorized as A, B and C The metros account for 40% of the subscriber population, with Category A, B and C accounting for 33%, 23% and 4% respectively. This means that the potential with category C circles in the lower end of the scale. GLOBAL PRESENCE OF VODAFONE Vodafone Operating Countries Vodafone's partners and affiliates
  • 18. DIRECT CHANNELS INDIRECT CHANNELS  TIER – 1 (URBAN)  TIER – II (RURAL) DIRECTSALESAGENT FEET ON STREET COLD CALLING TELECALLING OUTBOUND TELE CALLING ANALYTICS BASED DATA PROVIDED PRE TO POST MIGRATION SUPERCALLCENTRE CALL TRANSFER FROM INBOUND CALL CENTRE IMMEDIATE TRANSFER TO A DSA TELE-CALLING SETUP VODAFONE DISTRIBUTOR RETAILER MAIN TOWN Direct distribution to village clusters within 20 km Cluster of villages services by associate distributor Cluster of villages services by associate distributor
  • 19. 08. COMMISSION, INCENTIVE AND PRICING POLICIES Pay for performance continues to be an important principle for Vodafone when setting remuneration policy. A high proportion of total reward is awarded through short-term and long- term performance related remuneration. At target around 70% of the package is delivered in the form of variable pay, which rises to around 85% if maximum payout is achieved. It ensures that incentive plans only deliver significant rewards if and when they are justified by performance. For the Remuneration Committee this means two things: 1. Ensuring the targets they set for incentive plans are suitably challenging 2. The Committee review all incentive plans before any payments are made to executives and has full discretion to adjust payments downwards if it believes circumstances warrant it. Pay Link to Performance Vodafone offers performance-related pay schemes that focus not only on individual performance, but also on team and company measures. All of these measures are transparent and monitored on a regular basis so that they know exactly how the performance and the company's performance influence the level of reward people receive. REWARDS AND RECOGNITION Vodafone offers competitive and fair rates of pay and benefits to attract and retain the best people. Their global short- and long-term incentive plans reward employees based on their performance, potential and contribution to the success of the business. An ownership mentality is also a cornerstone of their reward programme and senior executives are expected to build up and maintain a significant holding in Vodafone shares. In addition, employees are entitled to a great range of benefits :  Free participation to a health / life insurance scheme for employees and their family.  Mobile phone with preferential rates.  Discounts on Vodafone products and services, special rates on a wide range of retail shops & restaurants. (Employee Shopping Club)  Discounts on various other insurance plans. (i.e. car, housing, health)  Food allowance & vouchers.  Free use of company’s own gym facilities.
  • 20. PRICING POLICIES Vodafone’s products and services are competitively priced and easily accessible to as many people as possible. In order to beat the competition, the company has ensured that it provides high quality services such as providing high speed data and good network range as compared to what the competition is offering Mini as well as jumbo prepaid and postpaid plans are available. As of late, Vodafone has multiplied its 2G and 3G web rates. This however will be taken after soon by its opponents and in addition it has get to be difficult to contain information rates off late. Another important pricing strategy is that the company offers reward points for specified sum of money spent on purchasing airtime vouchers or data bundles. With a pan India presence, Vodafone is surely one of the leaders in the telecom sector. 11. MERCHANDISING BY VODAFONE Vodafone could possibly be called the most applauded telecom operator when it comes to its ad campaigns. Be it Cheeka (the pug) which they adopted from Hutch after taking over, or the Zoozoos which they promoted in the country from the second season of IPL, the characters are well remembered till date, and the love people have for them is never diminishing. This has helped Vodafone push merchandise imprinted with these characters to a good level into the market, giving them an edge over the other players in terms of increasing the presence of brand to greater extent through merchandising. These characters have also enabled visual merchandising to a great extent at the point of sale. Every Vodafone store sells varied products like coffee mugs, t-shirts, key chains, etc. with the images of these characters imprinted on them. With people buying these products, out of love for the characters or to show the association ship with the brand benefit the company in a way which could be termed as ‘promotion on the move’. Vodafone’s speech mark, the logo is also quite prominent and famous with the public. And it could be termed as the most recognised logo when compared to those of other telecom players in India. With all the significant recognition it has got, Vodafone enjoys a good level of visual presence, be it through its stores, its associated dealer shops (called mini-stores), or through any other commonly adopted measures to promote visual merchandising at the point of sale, like banners and posters at recharge stores, hoardings at major areas, etc. They also have an e-merchandise store where all the Vodafone merchandise are made available. The online store sells everything from bags, watches, office equipment etc. to even golf clubs and other sports material! With respect to merchandising, there aren’t any special requirements that Vodafone as a company has as it is already doing everything and to a good level. Vodafone has tabbed upon
  • 21. every possible aspect of visual merchandising, and with the online store making products available at a marketplace most sought after in the present day, and the place where sales is fast growing, with increasing transactions happening online, Vodafone is at a very good position in this regard.
  • 23. 12 CHANNEL PROMOTIONS OF VODAFONE ATL AND BTL: ATL is a kind of promoting through media, for example, TV, silver screen, radio, print, and Out-of-home to advance brands or pass on a particular offer. This kind of correspondence is routine in its inclination and is viewed as indifferent to clients. It contrasts from BTL promoting, which utilizes capricious brand-building and limited time techniques, for example, post office based mail, deals advancements, flyers, purpose of-offer, telemarketing and printed media (for instance pamphlets) – and normally includes no movement representation. It is substantially more viable than when the objective gathering is expansive and hard to characterize Vodafone is very popular with its ATL promotion campaigns, be it the huge red hoardings, or even the ZooZoo campaign that took telecom advertising to a whole new level. Vodafone has always succeeded in striking an amazing chord with its audiences with each and every campaign it has done. Vodafone does ATL advertising very effectively, be it sponsoring a foot ball team, running an excellent ad campaign or even hosting on hot air balloons at the international Garba Festival
  • 24. Outdoor hoardings have always been a key ATL promotion Vodafone has done. The canopies are ready to hit the annual October fest in Bangalore. BTL SALES PROMOTION: is moderately prompt. It is effective and savvy for focusing on a constrained and particular gathering. It utilizes less routine routines than the typical ATL channels of publicizing, ordinarily concentrating on direct method for correspondence, most normally standard mail and email, regularly utilizing profoundly focused on arrangements of names to expand reaction rates. Pamphlets, Vodafone postpaid sales promotions, personalized emails to certain clients etc.
  • 25. 13 EVALUATION OF CHANNEL EFFECTIVENESS: Channel effectiveness is a combination of finding the best route to the customer which is also the most cost efficient. Effectiveness: Providing the obliged administration most cost adequately. a. Delivery : A short term, goal oriented measure of on time delivery of services to Vodafone customers b. Stimulation of interest: What are the interests made by the channel part to build client base or expand the use of the item. Equity: Extent to which advertising channel serves issue ridden markets and market segments The reach the Vodafone has is vast when compared to other telecom providers globally. The reach the Vodafone has is vast when compared to other telecom providers globally. Efficiency: Output / Input Performance measures Vodafone follows Effectiveness Equity Efficiency
  • 26. Productivity: The efficiency with which the output is generated from the resources and inputs. Operational efficiency: a. Labor efficiency: Productive call % b. Efficiency of salesman: Number of outlets secured A telecom provider like Vodafone runs its services in almost every nook and corner of a territory and this is one of the reason consumers select a particular provider so that they stay connected. . Indirect channelDirect channel Channel segmentation Corporate Profitability East EastWest West A B C A B C A B C A B C Territory segmentation Product segmentation