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SDM Vodafone

The document provides an overview of Vodafone India's telecommunications industry, segmentation and targeting strategies, and channel structures for reaching customers. Key points include: Vodafone segments customers by demographics like age and income as well as psychographics. It targets the mass market with affordable plans and offers discounts and services for different groups. Vodafone's channels include exclusive retail stores, distributors, direct sales, and call centers to sell products and services to both individual and business customers across India.

Uploaded by

Sivaganesh Geddada
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180 views21 pages

SDM Vodafone

The document provides an overview of Vodafone India's telecommunications industry, segmentation and targeting strategies, and channel structures for reaching customers. Key points include: Vodafone segments customers by demographics like age and income as well as psychographics. It targets the mass market with affordable plans and offers discounts and services for different groups. Vodafone's channels include exclusive retail stores, distributors, direct sales, and call centers to sell products and services to both individual and business customers across India.

Uploaded by

Sivaganesh Geddada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INDUSTRY OVERVIEW

The Indian Telecommunications network with 203 million connections is


the third largest in the world; second largest among the emerging
economies of Asia
Telecom services contribute 30 percent to Indias total service tax revenue.
The telecom services available in India include-
Basic Fixed Line Services
Mobile Services (GSM & CDMA)
Internet Services
International Long Distance Services
National Long Distance Service
Telecom market has grown at about 25% p.a. over the last 5 years.
SEGMENTATION & TARGETING
Vodafone's Segmentation :
1. Demographics - Age > 13 to 65
- Income > Small, Middle and High level Markets(Both B2B and B2C)
- Urban, Semi-urban and rural areas
2. Psychographics - Preferably Youth and People in the Urban and Semi-urban areas
- People who are willing to pay more for a premium service
Vodafone's Targeting Strategies :-
1. B2C Market : Recharge plans starting from as low as INR 10 and going up to INR 500.
- Data plans ranging from INR 44 to INR 250
2. B2B Market : Recently launched plans and packages for SMEs as well as large scale
businesses which can be customized according to their needs
3. Value Added Services and Discounts : To target home-makers, students & professionals
CHANNEL STRUCTURES
VODAFONE

INDIRECT EXCLUSIVE DIRECT MODERN


B2B BUSINESS
CHANNEL RETAIL CHANNELS TRADE
2 tiered Exclusive Selling Large format Enterprise
distribution Sales and directly to outlets/chain Includes fixed
model Service end customer stores line and data
For mass Primary focus Focused on Future
market reach on postpaid, postpaid growth driver
Focused on terminals and for data and
prepaid data 4G

Their overall coverage constitutes a total of 84 percent, while our rural penetration
is around 76 percent
SELECTION CRITERIA FOR CHANNEL MEMBERS
The dealers should have a sound financial background
The dealers should have a good market reputation, since the dealers
help the customers in forming the first impression a customer has
about the company.
The dealers should have good market penetration. The companys
ability to gain maximum customers in this era of competition solely
depends on the penetration the dealers have in the market
The dealer should have a good previous track record, i.e. of
timely payments, no criminal background etc.
INDIRECT CHANNEL (TIER1 URBAN)
INDIRECT CHANNEL (TIER2 RURAL)
2 Tiered distribution sales and service model
to increase presence and relevance
Associate distributors appointed to cater to rural
population, responsible for 4 to 7 cell-sites
in designated area
Associate distributor also responsible for
providing service
The main advantage of having associate distributor is his familiarity with the
local crowd and also customer service will be closer to rural consumer
INDIRECT CHANNEL REACH
23.5K channel partner sales force serving 1.25 million multi brand
outlets in 360K town and villages
14000
12158
12000 11254

9765
10000
8454
7913
8000
6458 Distributors
6017
6000 5482 Associate Distributors
4865
4259
4000

2000

0
2012 2013 2014 2015 2016
EXCLUSIVE RETAIL
Vodafone Exclusive Retail

Vodafone Store Vodafone Mini Store- Urban & Vodafone Mini Store- Rural
Semi Urban

EXPERIENCE CONVINIENCE SERVICE&TRUST

Service advantage Entrepreneurial model Differentiator in rural


Home of the Smartphone Low cost market Face of brand

Currently there are 7590 exclusive retail stores all over INDIA
DIRECT CHANNELS

Direct Sales Agent Tele Calling Super Call Centre

Feet on street; cold Outbound Tele -calling Call transfer from


calling setup; with feet on inbound call center,
street fulfillment Up selling to existing
model customer base
Immediate transfer to
DSA Tele-calling set up
Retailers segmentation- quality focus
Retailers categorized based on their quality of
acquisition and revenue
Quality is determined by the retention and the
ARPU of the customer acquired by the retailer
Basis their position on the grid, relevant
decisions are taken
Payout for acquisition
Loyalty program
Differentiated service
Technology in Distribution
Geographic identification for opening new outlets
Three channels through whichVodafone reaches out to end users

Traditional Retail Channel

Vodafone Exclusive
VODAFONE
stores

Call Centres
Company owned and company operated
Vodafone These are present only in cities
Handle post paid, new sim cards, Porting etc
exclusive
Franchise owned franchise operated
Vodafone mini Present in cities as well as Urban areas
Around 15-20 in big cities apart from above;
stores objective Coverage

Franchise owned franchise operated


ASD owned These are present only in Rural Areas

Vodafone mini
Sales people and Managers Working in Vodafone stores are recruited from Tier 3 B Schools
Retail Distribution Channel
Business head One state is typically a
circle
for state/circle

Sales & Other


Marketing Head Functional heads

Sales Head Marketing Head Retail Head

Look after
Zonal heads(7 in Vodafone stores
Karnataka)
Zonal Head

Area Sales Mangers 6-


8

4 Territory Sales
Mangers

Distributors (two
types of distributors)
Territory sales On company rolls;
Dsitributors
Officer looks after AS. Dist

1.5% Margin Direct Look after approx. 20


Super
distributors towns
distributors Rural
Urban

Paid by distributor 1.5 % margin for both


4-9 Direct Sales Associate Super distributor and
Go retailers and
executives distributors associate distributor
distribute recharge
cards, e topups etc combined

Look after 1-2 towns


Retail Partner Retail Partner Not on company rolls

3% Margin
Call Centre
Call
Centers

Outbound Inbound

Call and pitch Vodafone


Complaint resolution
other service users
Customer care
Handle Port requests
advertisements
Prevent ports
Trade Promotions
Retailers get 90 Rupees Cash when they activate a new
connection and do the first recharge
When important offers are sold, retailers are given similar
backend cash
Good performing retailers get Gifts from vodafone
Incentives, Motivation & Training
Direct sales Executives get incentives from Vodafone when
they achieve a specified target
There are incentives for number of network ports, new sim
card activations
There is also a rewards and recognition program as well
When new Distributors and DSEs come in, they undergo
training by Vodafone about sales, telecom sales and industry

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