Posted: October 20th, 2022

A Case Study Of Vodafone India Marketing Essay

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ABSTRACT

Winning customers and retain them in the pool is the priority of any business. Relationship marketing is one of the tools that is has been emerged over the period of time and practiced by several organization with the objective to attract new customers and retain existing customers for long term sustainability and gaining competitive advantage within the industry

In the past, marketers had focused on creating customers, selling what they produced, without maintaining their customers, forgetting that customer retention is the lifeblood of any business. Over the years, firms are working on effective strategies for retaining customers since it is now seen as cost effective to improve current customers rather than acquiring new customers.

Fundamentally, the study is focused on investigating the impact of relationship marketing in mobile phone service industry with an special focus as a case study on Voda phone in India.

The case study is build and investigated on the basis of literature review to have a thorough understanding on the subject “Relationship Marketing”, its elements and importance so that the finding upon the completion of study is in light with authors regardless of similarities or dissimilarities.

Study focuses on identifying the approaches at Vodaphone in gaining attention to attract, retain, enhance and develop a long term and long lasting relationship for a profitable out. It has particular importance in the study about exploring how relationship marketing is practice in Vodaphone, exploring customer perception of Vodaphone relationship marketing practices and recommend critical success factor for the effective execution of relationship marketing in Vodaphone for customer retention.

The proposed study is planed to carry out by using exploratory research method with a focus on both qualitative and quantitative technique covering the two perspectives; consumers/customers and service providers.

From consumers, One hundred and twenty five (125) respondents shall be randomly selected for the quantitative research to have primary understanding. The respondents shall be sampled across two regions of the country. Two different sets of questionnaires shall be administered. Eighty (80) questionnaires to the consumers Vodaphone, whilst twenty from (20) Vodaphone staff and twenty five to other network users. In addition to quantitative research 25 respondents would be selected to conducted qualitative research having 15 from consumers and 10 from the management of Voda phone

CONTENTS

Page no:

Introduction …………….……………………………………………………………04

Literature Review….……………………………………………………………………05

Industry Background….……………………………………………………………….07

Research Aim………………………………………………………………………….07

Research Questions………………………………………………………………….08

Hypothesis…………………………………………………………………………….08

Research Methodology………………………………………………………………08

Secondary and Primary resources…………………………………………………09

Timescale……………………………………………………………………………..11

Conclusion…………………………………………………………………………………………..11

References…………………………………………………………………………….12

Introduction

Marketing is the process of identifying, anticipating and fulfilling the need of customers through profitability (Kotler, 2002). In similar words, marketing is the process in which organization attract new customers and retain them with the product and services with the objective to ensure continuous profitability. It means marketing is based on customers and every activity done by the organizations are having two fold objectives of attracting them and retaining them.

However the history of marketing indicates that the concept of marketing has been evolutionary and marketing had different shapes with different ideology. In fact the four key marketing management philosophies that are production concept, product concept, selling concept and marketing concept are each related and were the stages of its evolutions. The emergence of marketing was primarily focus on products production and efficient delivery at mass level but now the marketing is focus on customer and entire of organizations’ activities are based on “marketing concept”. But what was happening before production marketing and its delivery to widespread (mass) customers, perhaps there was some marketing also involved which might be perhaps based on some sort of small level of activities that established familiarity between buyer and seller and perhaps that was based on the concept of relationship marketing. It means the concept of relationship marketing was present since the inception of life and still prevailing and that is the reason peoples seek to buy products from reliable, credible platform since they feel they both know each other and can rely upon them.

The significance perhaps of relationship marketing has increase many fold due to the nature of business environment, products introduced into the markets are similar kind of nature due to lack of innovation or incremental innovation and many of the sector. And hence the situation creating a challenging environment of organizations in attracting its new customers and retaining old customers and this challenge is intense amongst the service providing organizations. Approach of marketing is directed towards attracting and retaining customers and perhaps this is relationship marketing.

The concept of relationship marketing carries many fold objectives such as customer satisfaction, customer delight, customers’ retention and gaining customers’ loyalty to ensure customers trust, commitment, cooperation, absence of conflict, sharing of power, giving feeling of ownership amongst customers and a non opportunistic behaviour within the organization.

This study is set out to explore the conceptual framework of relationship marketing by identifying concept, elements and function of relationship marketing as a marketing tool. It shall offer an exploration of its practices in mobile phone industry and general and in particular to Vodaphone in India. The study shall explore the impact of relationship marketing on the overall performance of organization in relation to gain competitive position.

In India Vodafone commenced its operations during the year 1994 under the name of Essar when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone Essar currently have 34/1 million customers in India and having its operations in 16 circles covering 86% of India’s mobile customer base. Vodaphone over the period of time has gain respected organization in telecommunication sector due to excellent mobile service across the country with utmost creativity and effective advertising (Reward point, 2010).

LITERATURE REVIEW

DEFINITION OF RELATIONSHIP MARKETING

Relationship marketing is the process of using insights to drive value for consumers, customers and brands and hence increasing volume and market share for organizations. Establishing, maintaining and enhancing the relationships with customers and associated partners with the sole objective of making profit so that both or entire parties got satisfied with the exchange or transaction is marketing (Gronroos, 1994). Although this relationship is fundamental but may not necessarily last for long term. A relationship with the customer could be understood as the process of attracting them and developing a relationship so that to achieve economic goal for organization.

Zeithamal and Bitner (2002) have described relationship marketing as a philosophy that deals in keeping and improving current customers instead of targeting new customers. The philosophy deals in preventing existing customers from switching one organization to other.

Berry and Parasuraman (1991) identify relationship marketing as an approach in which organizations attract, develop and retain customer relationship. Coviello (1997) explain relationship marketing as the approach that is many functions to facilitate build and maintain relations over time. Morgan and Hunt (1994) explain relationship marketing as a collection of marketing activities that direct to establish, develop and maintain successful relational exchange.

Thus the overall objective of relationship marketing is to facilitate and maintain long term customer relationship, which leads to changed focal points and modifications of the marketing management process. The common superior objectives of all strategies are enduring unique relationship with customers, which can not be imitate by competitors and therefore provide sustainable competitive advantages (Berry and Gresham, 1986).

Relationship market is applicable and pay key role in a scenario where customers have several choices available to them for the same products or services and customers have the key role in taking decisions. In such kind of businesses organizations try and maintain their customers by offering better products/services in comparison to its competitors with the objective to achieve customers’ loyalty (Johnson, 2010).

And once it is achieved it becomes difficult for competitors to do well in the market. The customer turnover wasn’t paid attention on as the main attention was on customer satisfaction. This kind of marketing was initially named as defensive marketing. Offensive marketing is the marketing strategy where not only new customers are attracted, but also the sales are stepped up by increasing the purchase frequency. This kind of marketing concentrates on freeing dissatisfied customers and acquiring new customers (Johnson, 2010).

INDUSTRY BACKGROUND IN RELATION TO RELATIONSHIP MARKETING

The telecommunications market around the world is rapidly changing. As a result, competition is increasing. Companies are looking for ways to maintain and grow revenue streams while building loyal customer relationships that result in low churn rates. Leaders are using targeted, personalized marketing to achieve this. And they are reducing costs and time to market as well, giving them the edge in a fast-paced, competitive market (Unica, 2010).

The telecommunications market, in the last few years, has seen incredible Technological advancement, which has fueled massive consumer adoption and brutal   competition driven by commoditization. To drive profits in this business, you must increase the average lifetime value per customer and minimize the service cost even as service choices increase. Common to all of our customers in the telecom sector is an abiding belief in delivering the best service to customers by investing in technology that empowers consumers and service agents to have intelligent, productive conversations.  In a marketplace where consumers are increasingly aware of their choices, consistent service quality is the foundation of a durable brand (Jayalakshmi, G, 2009). According to authors, “With the commoditization of products and services, fuelled by greater access to competitive information over the web, customer service is one of the few ways organizations can themselves and increase market share”.

Research Aims and Objectives

 

To have the in depth understanding on the concept of Relationship marketing.

The Assessment of the theory and practices issues in customer relationship management  

To assess the effect of customer relationship marketing to the company performances.

To evaluate the effectiveness of customer relationship marketing and its impact on the organisation performances

To recommend effective way of managing customer relationship at Vodaphone

Research Questions

Research Questions are designed very carefully to support research objectives and aims. Answering of these research questions will Help in arriving at reliable findings. These questions are;

Why customer relationship marketing has importance?

What is the role of Customer relationship marketing in organization success in gaining competitive advantages?

How does effective management of customers contribute to market share?

How important is customer relationship management to organisational effectiveness?

Hypothesis

Mobile phone industry is highly competitive due to its nature of continuous innovation and progress. The success of mobile phone industry is based on two fold dimensions; first the technology and secondly the services offer to customers.

Like many other industry, mobile phone service providers are also facing saturation and un-differentiated services to their customers. However the industry is not solely based on providing the high technology that is compatible to the new launched mobile sets, the speed and transmission but the progress of organization is based on the package of technology and excellent customers’ service.

Mobile phone services providing organization are giving high importance to customer relationship marketing and its management and hence gaining competitive advantages and sustainability for the future.

Methodology

Research Approach

Research methodology to get the answers of research questions and to achieve the research objectives shall be based on using both quantitative and qualitative techniques with the aim to be able to carry out quality and credibility in the findings.

The proposed research is focused on investigating the role and impact of relationship marketing and its management in mobile phone industry with a sole focus on Vodaphone in India in terms of gaining competitive advantages that help organization in attracting new customers and retaining them for long term success and advocacy.

To enhance the quality and authenticity of research work, both quantitative and qualitative data will be analysed and systematic analytical techniques will be used in order to be able to arrive at accurate results. It is important to set parameters for reasoning alongside collection of operations, financial and management information from primary and secondary sources. Sufficient time and efforts will be allocated in gathering the data to ensure the reliability.

Secondary and Primary Research and resources

Secondary Research

Detail secondary research shall be carried out therefore various sources will be identified and data will be collected. Several sources for which information will be gathered will include

Corporate Annual Reports

Information published by organisations in the form of other reports

Reports issued by any trading associations.

Information from Newspapers and Journals

Results of any surveys conducted by reliable individuals or organisations

Research already done in the field

Websites of Companies and other useful sites on internet

Since secondary sources play important role in research work therefore it will be made sure that information gathered in relation to subject area of this research is from reliable sources.

Primary research

The proposed research will not only be based on secondary research but primary research will also be performed. Primary research work is not easy since it needs organized and hard work.

Primary research in this study would play critical role and hence would complement in secondary research in validating, comparing and filling the gap in the information gathered from secondary research. Additionally, Primary research would explore the information which may be missing in secondary research.

Primary research would be carried out with the focus at two level; firstly the organization and secondly the consumer in the industry and hence research would cover both the perspective

Primary Research Planning

To conduct efficient and effective primary research number of factors will be considered including designing of interviews and questionnaires, selection of people etc. Information will be obtained from right people, their background will be considered if it will be considered that those people can provide more useful information in relation to subject area of the research, information will be obtained from them and questionnaires will be designed carefully in order to be able to obtain the desired information.

Interviews and questionnaires will be the main techniques which will be used for information gathering. Each question shall be linked to the next question while conducting the quantitative research and hence the questions would be structured.

Face to face meetings and discussions with relevant personnel will be made with the aim to be able to obtain more targeted information directly. Before going for face to face communication questions will be designed in advance to be able to obtain required information in effective way. A semi structured questionnaire shall be used in carrying out qualitative research.

Other Research techniques

Both quantitative and qualitative techniques will be used including financial performance analytical tools, consideration of non-financial performance indicators, Sampling etc. In sampling there will identification of objectives of investigation, hypothesis and identification of data needs, identification of population, formulation of questionnaires, pre-testing and administration/analysis of questionnaires, data messaging and data preparation from response sheets etc. Other techniques which will be used including sensitivity analysis, variance analysis and performance comparison techniques.

Timescale

Activities

January

February

March

Timeline (Weekly)

1

2

3

4

1

2

3

4

1

2

3

Presentation on proposed topic

 

 

 

 

 

 

 

 

 

 

 

Finalization the topic/research questions

 

 

 

 

 

 

 

 

 

 

 

Proposal Submission

 

 

 

 

 

 

 

 

 

 

 

Literature Review

 

 

 

 

 

 

 

 

 

 

 

Draft Questionnaire (qualitative)

 

 

 

 

 

 

 

 

 

 

 

Draft Questionnaire (quantitative)

 

 

 

 

 

 

 

 

 

 

 

Execution of Quantitative survey

 

 

 

 

 

 

 

 

 

 

 

Face to face & telephonic interview

 

 

 

 

 

 

 

 

 

 

 

Data Collection

 

 

 

 

 

 

 

 

 

 

 

Data analysis

 

 

 

 

 

 

 

 

 

 

 

Implement Discussion into Dissertation

 

 

 

 

 

 

 

 

 

 

 

Finalize and submission of Dissertation

 

 

 

 

 

 

 

 

 

 

 

Conclusion

In the past, marketers had focused on creating customers, selling what they produced, without maintaining their customers, forgetting that customer retention is the lifeblood of any business. Over the years, firms are working on effective strategies for retaining customers since it is now seen as cost effective to improve current customers rather than acquiring new customers. Winning customers and retain them in the pool is the priority of any business. Relationship marketing is one of the tools that is has been emerged over the period of time and practiced by several organization with the objective to attract new customers and retain existing customers for long term sustainability and gaining competitive advantage within the industry.

The significance perhaps of relationship marketing has increase many fold due to the nature of business environment, products introduced into the markets are similar kind of nature due to lack of innovation or incremental innovation and many of the sector. And hence the situation creating a challenging environment of organizations in attracting its new customers and retaining old customers and this challenge is intense amongst the service providing organizations. Approach of marketing is directed towards attracting and retaining customers and perhaps this is relationship marketing.

Suitability

This research is one of the major modules of study for Masters of Business Administration with specialisation area of Marketing. Having strong academic background in marketing together with Relationship marketing in mobile phone industry, I feel I can perform quality research in the proposed area and I expect that this research will further improve my research skills and overall experience and confidence.

On the basis of above facts I hope that this proposal will fulfil its conditions and will be allowed to proceed on the research work.