8/7/2019 Ajay Idea

1/80

SUMMER TRAINING PROJECT

REPORTON

STUDY OF CONSUMER INSIGHT & TOP OF MIND AWARENESS IN

TELECOM INDUSTRY

With Special Reference to

IDEA Cellular Ltd, Mathura Road

Under the guidance of:

Mr. S.K.Sharma

Submitted By: POOJA VERMA

Roll no. 0571171706

BLS INSTITUTE OF MANAGEMENT,

GHAZIABAD

1

8/7/2019 Ajay Idea

2/80

DECLARATION

I Pooja Verma do hereby declare that the Dissertation report submitted

by me for the partial fulfillment of the requirement for BBA (Bachelor

of Business Administration) of BLS Institute Of Management

Ghaziabad.

Pooja Verma

2

8/7/2019 Ajay Idea

3/80

PREFACE

The research is carried out on the topic of consumer insight & top of mind awareness in telecom

industry at Mathura Road.

In the theoretical concepts, I had taken those basic concepts, which are mandatory to carry out

research project .The core concepts of the marketing and the concepts of the consumer insight and

top of mind awareness had been undertaken in the theoretical concepts

After that in the objective of the study I had taken the objectives to carry out the research or I can

say the main points on which the research had been undertaken.

I have taken the objectives such as to find out the major market holders among the service

providers to find out the top of mind awareness and importance of creating and maintaining it and

study of consumer insight to study the scope of sixth operator in Mathura Road region which is

already served by Airtel, Hutch, Reliance, Tata Indicom, and BSNL.

In the prior chapter I have given the company profile of IDEA Cellular in which I did the summer

training and the telecom industry profile. In this I have given the history of the Indian telephony,

corporate profile, Idea footprint in India, rewards recognitions to the company. I have also given

the major competitors of the company.

After that I have given the research methodology that has been undertaken in the project. In this I

have given the several steps of the research process and the research process undertaken during the

research.

3

8/7/2019 Ajay Idea

4/80

After that I have presented and analyzed the data collected from the sample. I had done the

analysis of the questions of the questionnaire with the help of the responses of the respondents

found during the field surveys.

4

8/7/2019 Ajay Idea

5/80

ACKNOWLEDGEMENT

Report with such topic demands for some experienced knowledge, professional help and

encouragement from many quarters.

I have deep regard for and gratefully thank Mr. PANKAJ SHARMA, Manager, and MARCOM

who have devoted his precious time, friendly assistance, support and guidance for encouraging me

to develop this project report. I would feel pleasure if I could contribute even to the smallest extent

in this regard.

.

I owe my sincere thanks to Mrs. MEGHNA ARORA, Head, Marketing who has devoted his

precious time and Knowledge, which were so valuable in preparing this project.

I am grateful IT administrators and all the employees of Idea Cellular Ltd, Mathura Road for their

full support and attention.

Last but not the least I must thank Almighty God for his inspiration and guidance and my family

members for their unquestioning encouragement without which this work would not be possible.

POOJA VERMA

5

8/7/2019 Ajay Idea

6/80

CONTENTS

TOPIC PAGE NO

1. EXECUTIVE SUMMARY 13

2. PROJECT OVERVIEW

INDUSTRY PROFILE 17

COMPANY PROFILE 31

LOCATION OF RESEARCH 43

3. BROAD RESEARCH OBJECTIVES 48

4. SPECIFIC RESEARCH OBJECTIVES 50

5. TELECOM BUSINESS MODEL 54

6. RESEARCH METHODOLOGY 57

7. FINDINGS AND ANALYSIS 66

CUSTOMER INSIGHT [EXISTING] 67

CUSTOMER INSIGHT [POTENTIAL] 81

TOP OF MIND AWARENESS 87

6

8/7/2019 Ajay Idea

7/80

8. OBSERVATIONS 93

9. SWOT Analysis 99

10.RECOMMENDATIONS 104

11.CONCLUSIONS 108

BIBLIOGRAPHY 110

7

8/7/2019 Ajay Idea

8/80

EXECUTIVE THEORY

This project seeks to understand the telecom market in order to find out the propermarket scenario

and opportunities to effectively market the products, services being launched by IDEA Cellular to

the local consumer. However a specific focus of this research is to study 'Top of mind' awareness

which owns the space that your product or service occupies between your prospects ears. That

way, when they're ready to buy they think of you first and find ways to market the Cellular

products and services effectively in Mathura Road and to encourage users of other service

providers to switch to IDEA Cellular.

The research adopts a qualitative methodology by conducting in-depth interviews with the existing

customers: who are using mobile and potential customers: who yet dont own one, as well as

retailers in Mathura Road. This study will make out the valuable suggestion for consumers to

understand theirattitudes and beliefs, motivation to use mobile and other Idea products and the

factors governing their brand choice. Other factors like influence of family, friends and other

social groups are also considered. Besides these preferences in brand/product usage, another

dimension that is looked into is the local consumer. What are their likings, interest generated with

regards to different kinds of communication medium available. Specifically, what are their top of

mind awareness and perceptions with regards to mobile phone usages and telecom industry? What

are the role/ significance of communication media in their daily lives and how the cellular operator

influences their product/brand preferences?

The location of research is Mathura Roadand areas around Mathura Road city for data collection.

The data collected is definitely influenced by certain characteristics like income, education,

community norms, popularity of modern amenities etc. Peculiar to Mathura Road region but still a

lot of the findings can be generalized and give interesting insights.

8

8/7/2019 Ajay Idea

9/80

The findings are with regards to products in general. Insights have been obtained about attitude

towards product and involvement, influence of family and society on the brand/ product choice and

the interaction with communiqu in terms of content, technology, network liked and the effective

channels of delivery.

The study retrieve the retailers overview and visibility analysis in Mathura Road and satisfaction

level

of consumers, encompassing quality of technical services quality and operations and aspect of

services providers .the analysis through light on the consumption pattern of mobile phone users

assessment of level of satisfaction , predilection for various attributes of cellular product and

services, product preference, study of churn pattern ,VAS awareness and communication

parameters.

9

8/7/2019 Ajay Idea

10/80

PROJECT OVERVIEWPROJECT OVERVIEW

AT A GLANCE

Probably no means of communication has revolutionized the daily lives of

ordinary people more than the telephone. The actual history of the telephone is

a subject of complex dispute. The controversy began with the success of the

invention and continues today. Some of the inventors credited with inventing

the telephone include Antonio Meucci, Philip Reis, Elisha Gray and Alexander

Graham Bell. Bell's experiments with his assistant Thomas Watson finally

proved successful on March 10, 1876, when the first complete sentence was

transmitted: "Watson, come here; I want you

10

8/7/2019 Ajay Idea

11/80

INDIAS CURRENT SCENARIO

Cellular mobile telephony industry was opened to the private sector in 1992. Initially there were

hopes for profits in this business that somehow turned to despair. But once again there is euphoria

in this market due to the revenue sharing policy, consolidation and growth. Several new entrants

have done well, and the industry is quickly moving to maturity, due to the attractive technology,

marketing and competitiveness. Stiffer competition, new entrants and developments in the limited-

mobility industry have given opportunities as well as posed challenges industry is considered as

one of the worlds fastest growing markets.

The cellular phone industry market is affected by the hesitation of investor in new technologies

and networks. The industry is also affected by the new changing telecom and tariff policies on

profit prospects and competitions. For example:

COAI (cellular operators association of India) was recently disappointed at the revision in monthly

rentals for WLL (wireless in local loop) and limited mobility services announced by TRAI. It

stated that by abstaining from prescribing either a ceiling or a floor in the monthly rental,

consumer interest has been sidelined, as there is no protection from an upward revision in tariffs

any time , further adding that it plans on locking the new tariff for the entire tenure of the WLL

license. This developed some apprehension among the industry that the WLL operators, offering a

competitive mobile services, with more advantageous terms and conditions, may indulge in

predator pricing and anti-competitive practices, as against GSM operator who paid hefty sums for

licenses. This incident would prove seriously detrimental to the competitive landscape and

adversely impact the growth of this sector.

11

8/7/2019 Ajay Idea

12/80

In spite of all this the cellular subscribers are growing at an exponential rate. They are expected to

touch 10.15 cores by March 2007. This means mobile phones would account for 20.5% of total

telephone connections India. Still the cellular teledensity of 4.3% cellular growth is attributes to

increased competition, declining prices and increased pre-paid penetration. It has drawn massive

investment from private as well as global telecom giants facing saturation in most western markets.

There are around more than 40.9 million subscribers in India compared to 150 million users in

china. Granter at a compounded annual growth rate of 46% over the next five years till 2010. We

hope this will boost the Indian economy.

12

8/7/2019 Ajay Idea

13/80

History of GSM

During the early 1980s, analog cellular telephone systems were experiencing rapid growth in

Europe, particularly in Scandinavia and the United Kingdom, but also in France and Germany.

Each country developed its own system, which was incompatible with everyone else's in

equipment and operation. This was an undesirable situation, because not only was the mobile

equipment limited to operation within national boundaries, which in a unified Europe were

increasingly unimportant, but there was also a very limited market for each type of equipment, so

economies of scale and the subsequent savings could not be realized.

The Europeans realized this early on, and in 1982 the Conference of European Posts and

Telegraphs (CEPT) formed a study group called the Group Special Mobile (GSM) to study and

develop a pan-European public land mobile system. The proposed system had to meet certain

criteria:

Good subjective speech quality

Low terminal and service cost.

Support for international roaming.

Ability to support handheld terminals.

Support for range of new services and facilities.

Spectral efficiency.

ISDN compatibility.

13

8/7/2019 Ajay Idea

14/80

In 1989, GSM responsibility was transferred to the European Telecommunication Standards

Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial

service was started in mid-1991, and by 1993 there were 36 GSM networks in 22 countries

although standardized in Europe, GSM is not only a European standard. Over 200 GSM networks

(including DCS1800 and PCS1900) are operational in 110 countries around the world. In the

beginning of 1994, there were 1.3 million subscribers worldwide. Which had grown to more than

55 million by October 1997. With North America making a delayed entry into the GSM field with

a derivative of GSM called PCS1900, GSM systems exist on every continent, and the acronym

GSM now aptly stands for Global System for Mobile communications.

The developers of GSM chose an unproven (at the time) digital system, as opposed to the then-

standard analog cellular systems like AMPS in the United States and TACS in the United

Kingdom. They had faith that advancements in compression algorithms and digital signal

processors would allow the fulfillment of the original criteria and the continual improvement of the

system in terms of quality and cost. The over 8000 pages of GSM recommendations try to allow

flexibility and competitive innovation among suppliers, but provide enough standardization to

guarantee proper networking between the components of the system. This is done by providing

functional and interface descriptions for each of the functional entities defined in the system.

14

8/7/2019 Ajay Idea

15/80

Services provided by GSM

From the beginning, the planners of GSM wanted ISDN compatibility in terms of the services

offered and the control signaling used. However, radio transmission limitations, in terms of

bandwidth and cost, do not allow the standard ISDN B-channel bit rate of 64 kbps to be practically

achieved.

Using the ITU-T definitions, telecommunication services can be divided into bearer services,

teleservices, and supplementary services. The most basic service supported by GSM is telephony.

As with all other communications, speech is digitally encoded and transmitted through the GSM

network as a digital stream. There is also an emergency service, where the nearest emergency-

service provider is notified by dialing three digits (like 112).

A variety of data services are offered. GSM users can send and receive data, at rates up to 9600

bps, to users on POTS (Plain Old Telephone Service), ISDN, Packet Switched Public Data

Networks, and Circuit Switched Public Data Networks using a variety of access methods and

protocols, such as X.25 or X.32. Since GSM is a digital network, a modem is not required between

the user and GSM network, although an audio modem is required inside the GSM network to

interlock with POTS.

A unique feature of GSM, not found in older analog systems, is the Short Message Service (SMS).

SMS is a bidirectional service for short alphanumeric (up to 160 bytes) messages. Messages are

transported in a store-and-forward fashion. For point-to-point SMS, a message can be sent to

another subscriber to the service, and an acknowledgement of receipt is provided to the sender.

15

8/7/2019 Ajay Idea

16/80

SMS can also be used in a cell-broadcast mode, for sending messages such as traffic updates or

news updates. Messages can also be stored in the SIM card for later retrieval.

Supplementary services are provided on top of teleservices or bearer services. In the current (Phase

I) specifications, they include several forms of call forward (such as call forwarding when the

mobile subscriber is unreachable by the network), and call barring of outgoing or incoming calls,

for example when roaming in another country. Many additional supplementary services will be

provided in the Phase 2 specifications, such as caller identification, call waiting, multi-party

conversations.

16

8/7/2019 Ajay Idea

17/80

COMPANY PROFILE

IDEA CELLULAR LTD.

17

8/7/2019 Ajay Idea

18/80

Corporate Profile

Idea Cellular is part of the Aditya Birla Group, which is India's first truly multinational

corporation. Global in vision, rooted in Indian values, the group is driven by a performance ethic

pegged on value creation for its multiple stakeholders.

As Indias leading GSM Mobile Services operator, IDEA Cellular has licenses

to operate in 11 circles. With a customer base of over 8 million, IDEA Cellular has operations in

Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal,

Haryana, UP- West and Kerala. IDEA Cellulars footprint currently covers approximately 45% of

Indias population and over 50% of the potential telecom-market.

It was in the year 2002 when three big entities, each one with a distinct knack for business, having

a reputation of being one of the most admired corporate in their domains Tata, Birla & AT&T

joined hands and an IDEA was born. Even before IDEA celebrated its 2nd birthday, it made its

presence in the annals of Indian telecom by concluding the largest ever acquisition in Indian

wireless industry when it acquired Escotel. And IDEA has leapfrogged to become a national player

having its presence in 11 circles across the country. IDEA is also the only company with one of its

circle having crossed One-Million subscriber mark barring the metro markets.

Along with this IDEA cellular has constantly strived to achieve the status of better than best ever

since its conception. There are plenty of innovative, utility-driven and successful ideas that IDEA

has been first in launching.

18

8/7/2019 Ajay Idea

19/80

Some of them are:

Idea Cellular takes the lead in connecting the un-connected and helping change lives by

announcing the launch of the Shared Voice & Data services under an initiative run by the GSM

Association (GSMA), the global trade association for mobile phone operators. The Shared Voice

& Data services are slated for launch across all Idea Circles shortly. Shared Access, refers to

the sharing of a mobile telecommunication device, making the PCO immobile phone service a

thing of the past. This model extends the accessibility of communication whilst creating a new

revenue stream for low-income rural entrepreneurs who own the mobile phone. Rural

entrepreneurs can sell airtime on their mobile phones to people in the community wishing to make

a call or send a text message. This innovative approach allows entrepreneur to set up a payphone

business for just the cost of a handset. Specially devised software with a printer will be developed

to enable the owner of the mobile handset to provide a bill if required to the customer making the

call. Call charges are also displayed on the handset to ensure transparency in the transaction.

Additionally, Idea will offer shared Internet access in these rural communities to provide an even

broader range of data services.

IDEA Cellular introduced 'Pay Easy' which is an easier system to pay bills for its post-paid

subscribers. The service was launched simultaneously in all eleven IDEA circles. The

introductions of this service will double the number of locations where post-paid subscribers can

pay their bills. The subscribers can either use the bank's ATM where the bank will accept the

mobile number and payment amount or pay via an SMS. To use this facility, the subscriber will

have to be registered with a bank where they can then SMS with the key word and payment mount.

With this the company will be able to offer post-paid services even where there are no banks.

19

8/7/2019 Ajay Idea

20/80

An IDEA of Customer-Focus

Ahead of the numbers, market shares, revenues, profits, technologies, marketing, advertising,

footprint, investment, growth, and whatever it takes to run a successful telecom business, remains

a single idea of providing an ultimate customer service that creates a happy, satisfied and loyal

base of customers. Therefore, customer service is an utmost priority for everyone at IDEA and

becomes the single most important driving force gushing through the arteries, veins and the

nervous system of the company. Be it the people or the technology at the call centre or any other

entity within the system, it is solely geared to ensure the highest level of customer satisfaction.

IDEA covers over 3,660 small and major towns & villages along with a total highway connectivity

of over 6,000 kilometers. Today, there are over 380 IDEA n U outlets and Idea shops and a well-

entrenched network of over 44,000 retailers and dealers across the country.

Each circle with its own dedicated call centre with a single call resolution approach towards the

customer is a unique effort provided by any operator. Idea offers roaming across 200 networks in

India and across the world, two way pre-paid roaming is also available to customers while roaming

in India, Customers can stay connected internationally by receiving calls and sending and

receiving SMS.

20

8/7/2019 Ajay Idea

21/80

An IDEA of Footprint in India

IDEA controls a portfolio of Indias most attractive and mainly contiguous properties including the

7 states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,

Chhattisgarh, UP (W), Haryana, Kerala and Delhi (inclusive of NCR). Having operations in four

of the five largest cellular circles in India, IDEA is the market leader in the Maharashtra & Goa,

Kerala, UP (West) and Madhya Pradesh & Chhattisgarh circles in terms of number of subscribers.

With Escotel acquisition Ideas footprint has spread into Kerala, Haryana, Utter Pradesh,

Rajasthan, Uttaranchal and Himachal Pradesh virtually covering India from North to South,

through 11 circles of telecom operations in India.

Ideas Delhi circle is also the fastest growing fourth operator in the country, which is an

Achievement in itself and also showcases the customer confidence of a high degree.

21

8/7/2019 Ajay Idea

22/80

An IDEA of VAS Factory

With a clear focus on providing unique, distinct innovative and tremendously valuable services to

the subscribers, IDEA embarked upon an initiative to setup a VAS (value-added services) factory

within the company, which conceptualizes and provides tailor-made value-added services. Since

April 1, 2003, the VAS factory has produced over 47 value-added services. For IDEA, most of

them proved to be the revenue drivers for the current year and were able to enhance customer

loyalty to far reaching heights.

IDEA was the first and only company to bring the concept of Cellular Jockey to all its

Subscribers. IDEA also launched Global SMS for the first time in the country, which allows the

users to send and receive SMS from over 540 networks and 170 countries across the technology

platforms like GSM, CDMA, TDMA and Satellite Phones. Recently, IDEA introduced Mobile

Top-Up (a flexible anytime anywhere recharge service for prepaid customers) and Say IDEA

feature that allows the users to access value added services by speaking into their mobiles.

In keeping with the promise of providing world class products and services, to its customers, IDEA

Cellular Ltd. added another first to its list of many firsts, by announcing the launch of its new VAS

innovation- Background Tones. Background Tones is a service wherein (background) music is

played after the call is connected and for the entire call duration.

22

8/7/2019 Ajay Idea

23/80

Background Tones is one of the first mobile VAS services that allow customers to activate

songs, personalized music or even sounds during conversations.

Background Tones offers personalized features that enable customers to select different

music according to different caller groups.

23

8/7/2019 Ajay Idea

24/80

An IDEA of Technological Superiority

The challenge of the wireless revolution demands a technology IDEA to match. IDEA Cellular has

been, and will remain, uncompromisingly demanding to its commitment, to set up only the best

equipment in the world.

IDEA; Delhi is an EDGE network where IDEA has demonstrated EDGE and is now

Commercially available. We are the first and only operator in the country to demonstrate and

commercially launch it. The Company has already started deploying EDGE ready networks, which

would provide a platform for offering innovative and the latest services to keep the customer

experience one-step ahead of the competition. Not the least important element of the technology is

the enduring partnerships IDEA enjoys with the GSM champions, Siemens, Ericsson and Nokia,

transmission equipment makers, Alcatel and billing systems providers, Schlumberger Sema etc.

24

8/7/2019 Ajay Idea

25/80

An IDEA of People

It is people who make the organization. With a clear focus on professionalism, highly skilled and

trained manpower of superior quality, IDEA today boasts of strength of around 1700 employees.

Most of them have come from reputed management and technical institutions from around the

country.

Management graduates, engineers, teams of support staff what all of them have in common at

IDEA is a vivacious, youthful, energetic, and a positive attitude at work. With the average age of

an employee being only 31, IDEA becomes one of the most youthful organizations in the country

today.

An IDEA of Growth

IDEA is an original licensee in seven of the eight circles with frequency and other advantages and

is expanding the number of subscribers by adopting a mass-market strategy. IDEA firmly believes

that cellular services will continue to grow in popularity among masses hence the focus would be

on growing the base of pre-paid customers and attracting and retaining the quality post-paid

subscribers.

Since its inception IDEA Cellular has been a fabulous growth story. Idea is the fastest growing

GSM operator in its area of operations. Its already operational in eight circles and ready for launch

in three circles,i.e.: Rajasthan , Himachal Pradesh & Uttar Pradesh (East) in next to no time .The

growth rate in the last 6 months has been 85% in its area of operations as against 84% of all

operators in the same area of operations. The company is now cash positive, and is expected be

profit positive in the financial year 06-07.

25

8/7/2019 Ajay Idea

26/80

An IDEA of Awards and Recognitions

Various industry authorities have endorsed IDEA owing to its innovation, excellent customer

service and superior quality of service by several awards and recognitions. Some of them are as

follows:

Golden Peacock Innovative Product / Service award in the communication sector from the

Government of India for implementation of the M-coupon product in the Delhi Circle in

2003.

Madhya Pradesh circle was rated number one operator twice in two consecutive surveys of

Quality of Service (QoS) conducted by TRAI in August 2002 and March 2003

Chosen as the winner of the award Indira Award for Marketing Excellence for being the

highest recalled brand in the year 2003

Ranked second in overall user satisfaction by the Voice & Data IDC Mobile Users

Satisfaction Survey, October 2003, which was based on parameters like network

availability and performance, customer care, value added services, pre-sales and sales

effort and billing.

26

8/7/2019 Ajay Idea

27/80

BROAD RESEARCHBROAD RESEARCH

OBJECTIVESOBJECTIVES

Every research has some objective and researcher has to achieve that objective. Objective

provides direction to the researcher. Objective of my study was:

To explore key influencers in the decision-making process of subscribing to a particular

operator.

To study the "Top Of Mind Awareness and importance of creating and maintaining it with

the existing customers and intending buyers in Mathura Road market.

To study the consumers insight in the direction of determining the scope for sixth operator

in Mathura Road region. Mathura Road region being serviced by five other telecom

operators: BSNL, Reliance, Hutch, Airtel and Tata Indicom, the scope of a sixth operator

i.e. IDEA Cellular would be gauged and appropriate recommendations given.

To know the pattern of other telecom operators subscribers regarding their satisfaction and

dissatisfaction to various attributes.

27

8/7/2019 Ajay Idea

28/80

To analyze the distribution and communication channels for the triumphant launch of I

EA as new service provider in UP East.

SPECIFIC RESEARCHSPECIFIC RESEARCH

OBJECTIVESOBJECTIVES

SPECIFIC RESEARCH OBJECTIVES

In the previous section, the business model of telecom operator was explained. The presence of

the various variables influencing brand image have been explained and their presence justified.

The business model of this industry will help us find out the message part of the marketing strategy

after understanding the buyer behavior, influence of family, social groups etc. that will help create

a favorable brand image in the consumers mind. But in order to know the specific content

parameters and channels used to deliver the message, we need to understand the consumers

interaction with various forms of communication. Based on the understanding of the above model

we can finally decide upon the specific research objectives. The specific research objectives are as

follows:

28

8/7/2019 Ajay Idea

29/80

Understanding the details of services being offered by the launch of the product and services by

IDEA. It is also necessary to understand the Consumer behaviour and involvement

in various products of telecom industry.

Understanding the process of launch and penetration to the market with regard to the

telecom products. What are the services schemes, promotional offers etc. are prevalent

and which of them are effective.

Understanding the buyer behavior, influence of family, social groups etc. that will help create a

favorable brand image in the consumers mind. But in order to know the specific content

parameters and channels used to deliver the message, we need to understand the consumers

interaction with various forms of communication. The specific research objectives are as follows:

Customer insight to figure out the following points:

What aspect of product and services are consumers satisfied and dissatisfied

with?

How dose the each aspect influence consumers overall perception?

What are their perceived choices?

What will it take to win over competitors customers?

Which market segment generates the highest revenue (ARPU)?

What are the current usages levels within each market segment?

What are the needs in terms of product and services offerings to the

customers?

29

8/7/2019 Ajay Idea

30/80

Which market segment is most receptive to new products and services?

What are viable target markets?

Who are our potential customers and what motivate their preferences?

What do customers expect from next generation of the telecom industry?

30

8/7/2019 Ajay Idea

31/80

Study of Top of mind awareness to be acquainted with:

What it is and what are its magnitude?

How to maintain TOMA?

Which media mix is most effective for delivering our messages to specific

market segment?

How aware are potential customers of new product and product and or

services?

As a provider of telecom product and or services to what extent are current

and potential customers aware of IDEA?

How effective is current advertisings?

What effect is advertising having on loyalty of customers?

How does the effectiveness of advertising differ among market segments?

Which media is most or least effective in raising awareness or delivering the

messages?

31

8/7/2019 Ajay Idea

32/80

32

BUSINESS MODEL(TELECOM)

CONSU

MERBEHAV

IOUR

PRODU

CT/

VAS

VALUECHA

IN

/SU

PPLY

CHAIN

REVEN

UEM

ODEL

8/7/2019 Ajay Idea

33/80

The business model essentially comprises of four key elements:

Consumer Behavior: how the existing users perceive the products and services and what

impact does a slight change in the product/service have in the brands image.

Product, Value added Service (VAS): about the product, its features and the services

offered. Additionally there are some value added services, which facilitates the customer

with that something extra. Value added services or VAS has recently been attributed as

one of the most differentiating factor in telecom Services being offered by different

players. IDEA leads the pack with superior services like cellular jockey, says IDEA and

these VAS are seen as revenue drivers for the company.

Value chain / Supply Chain: This covers the entire intermediary links of the chain in the

supply chain i.e. from manufacturer to end-user. At every step of the chain there needs to

be addition to the value being provided by the product/service. It has been every companys

goal to make this supply chain as efficient as possible and for that efficiency is required at

every link of this chain. To provide maximum value to the end-user it is necessary to

enhance the value at every step of the chain.

33

8/7/2019 Ajay Idea

34/80

Ideas Idea

IDEA Cellular, Indias leading cellular operator added another exciting new dimension to mobile

entertainment with the launch of MADHUR - a niche & innovative collection of mobile music,

focused towards a special segment of customers. MADHUR, a library of rich Indian music content

by music maestros will appeal to the taste of customers who have an ear for fresh, soothing music

with exclusive personalized needs.

This collection will be offered as Dialer Tones, Ring Tones, SMS tones, and Background tones to

over 8 million Idea customers. The music clips will be available in both vocal and instrumental

versions in 30-second editions and will be priced at regular tariff levels. Idea Cellular would also

be coming out with various promotional offers on these tunes shortly.

Madhur, a classical mobile experience in music, rooted in Indias rich & vibrant cultural tradition

is one more VAS initiative from Idea to increase value to customers. Some of the finest music

from Indias greatest music maestros will be available on Idea Madhur in three categories- Vocal,

Instrumental and Legendary. The various streams of Indian music available will include Ragas,

mood based Ras, Chants, Music for stress relief, in the vocal category and Santoor, Mandolin,

Violin, Flute, Sitar, Veena etc. in instrumentals

34

8/7/2019 Ajay Idea

35/80

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Research DesignThe aim of study is to objectively understand the perceptions of mobile phone users and non-users

In Mathura Road city and further capture their satisfaction level that is influenced by various

technical

And non-technical factors .The methodology to conduct the study was composed of different tasks

As follows:

A review of literature on consumer satisfaction in telecom industry was undertaken in order

to define the comprehensive scope of the study and ensuring its objectivity.

Empirical research was based on a stratified random sample survey, a series of in-depth

interviews. The sample size of 200 for the survey was drawn from various categories of

consumers and thus appropriate representation of all market segments was ensured. The

length of survey questionnaire was kept optimum to avoid the psychological burden of

responding for the sampled consumers. The questionnaires and other tools used for the

empirical research are provided under Appendix.

Analytical Framework for the study is aimed at getting an insight in to the behavior of

consumer by analyzing the data / information gathered through empirical research.

In order to conduct the study, the methodology has to be decided. The description of the problem

and our objectives will help us determine the methodology to be adopted.

35

8/7/2019 Ajay Idea

36/80

As seen from the problem description, the area of study is a previously unexplored area, so the

concepts, definitions, opinions etc. are unformed. We have to understand the consumer and

markets without any sort of prior assumptions, so we do not know what information, conclusions

we will obtain from this research. We have started of with a basic assumption that some variables

are relevant to the study, but we are no means sure as to whether they are relevant or not or how

relevant they are and what should be the importance of each of the variable. Thus this research is

an exploratory research into a previously unexplored area. The reasons for its exploratory nature

can be summarized as follows:

Need to create concepts and definitions about cellular markets, consumers etc. so that they

can be further investigated into.

Key psychographics variables needed to profile users and intenders.

Given the exploratory nature of the research, should we employ a qualitative or

quantitative research methodology

In order to interview the respondents properly and uniformly, and generate information on each of

the required areas, a detailed interview guide was formed which listed down the important

information areas and how to obtain them.

Specific Interview Guides were created for two different sets of consumers:

Existing mobile user

Potential customers

Detailed analysis is done on the basis of the responsesgiven by the sample size.

Key findings and recommendations are given on the basisof the analysis.

36

8/7/2019 Ajay Idea

37/80

SAMPLING PLAN

Type of Universe: Here telecom industry (in India, to be specific) forms the universe for

my study.

Sampling Unit: Existing subscriber of cellular services and prospective customers who

dont avail services contemporary forms sample unit.

Sample Size: The sample size taken was 200 respondents with the following individual

sizes.

Target Respondent Sample size

Existing customers 100

Potential customers 100

TOTAL 200

Sampling Procedure: A mix of Simple Random and judgment sampling was

used for selecting the respondents in the areas with high footfall

and major markets of Mathura Road.

Data collection Method

Primary : Here primary data is the data, which I collected by filling up of

questionnaire by the existing customers and potential customers and also by

having an informal interview with the retailers in various areas with high

footfall and alienated according to demographic features.

Almost all the major markets of Mathura Road city were covered.

Secondary : Some of the related data I collected through various web sites

and written material collected from the journals and newsprints\

37

8/7/2019 Ajay Idea

38/80

LIMITATIONS OF THE RESEARCH

1. The survey was conducted in the areas of Mathura Road city but due to the time and money

resources, which fails to survey places like some places of west Mathura Road some areas

of northern Mathura Road and east Mathura Road and outskirt of Mathura Road.

2. Respondents in the market with high footfall may be personally biased in their statements.

3. Being bases on simple random samplings, the probability of sample error is susceptible.

4. Reluctance and due to the mode of the business, it was difficult to pen out information from

some respondents directly.

5. As probability sampling resources, it includes different errors as follows:

Measurements error.

Experimental errors.

Population specification errors

Time.

38

8/7/2019 Ajay Idea

39/80

Composition of the sample

39

CUSTOMERS

EXISTING POTENTIAL

8/7/2019 Ajay Idea

40/80

Age wise composition of the sample

Occupation wise composition of the sample

40

0

10

20

30

40

50

60

70

18 - 30 30 - 45 45 - 55 > 55EXISTING 59 27 11 3

POTENTIAL 61 25 11 3

% VOICESHARE

AGE (YEARS)

EXISTING

SALARIED

SELF-EM

STUDENT

OTHER

0

5

10

15

20

25

30

35

40

45

EXISTING POTENTIAL

% VOICESHARE

CUSTOMERS

SALARI

ED

SELF-EM

8/7/2019 Ajay Idea

41/80

Educational Qualification of the sample

41

0 10 20 30 40 50

% VOICE SHARE

EXISTING

POTENTIAL

CUSTOMERS OTHERSPOSTGADUATE

GRADUATE

UNDER GRADUATE

8/7/2019 Ajay Idea

42/80

FINDINGS ANDFINDINGS AND

ANALYSISANALYSIS

Existing customers

Subscribers preference

42

8/7/2019 Ajay Idea

43/80

43

PREPAID

80%

POSTPAID

20%

8/7/2019 Ajay Idea

44/80

POST- PAID Vs PRE-PAID

Prepaid Will Continue To DominateBoth GSM & CDMA

80% of the users prefer prepaid as most of them (42%) want to stay in linewith their phone expenses.

Pre-paid is considered to advantageous as there is:

No long-term commitment.

No monthly bill to worry about.

44

WHY PRE-PAID?

No monthly charges

30%

Top - up

28%

Expences

42%

8/7/2019 Ajay Idea

45/80

Better cost control.

Great if your usage varies from month to month.

No security deposits.

Topping up account is easy.

Ideal for occasional users & travelers.

Easy to quit services.

Post-paid is taken-up by most of the people who are inflicted with heavy usage. This group

Constitutes mainly the businessmen or people of high profile Call rates or availability of call

Credits any time are secondary influential factors.

45

WHY POST PAID?

Credits

25%

Usage

60%

Call rates

15%

8/7/2019 Ajay Idea

46/80

Monthly expenditure on cellular services

Most of the people try to line up their cellular expenses between 300 to 500 rupees.

Students and other unemployed population try to keep their expenses below 300 or up to

the minimum monthly charges. Expenses above 1000 is mostly incurred by the self

employed or businessmen

46

11

55

23

11

0

10

20

30

40

50

60

% voice

share

1

Monthly expences (Rs)

200-300 300-500 500-1000 >1000

8/7/2019 Ajay Idea

47/80

Current operatorCurrent operator

The above figures show the market share of various service providersThe above figures show the market share of various service providers

in Mathura Road city in which BSNL has the maximum carve up (36%)in Mathura Road city in which BSNL has the maximum carve up (36%)

within other operators.within other operators.

47

13

25

36

22

4

0

5

10

15

20

25

30

35

40

Airtel Hutch BSNL Reliance Tata

indicom

%VOICESHARE

8/7/2019 Ajay Idea

48/80

Attributes considered for decision makingAttributes considered for decision making

While choosing an operator customers consider some attributes that influence their decision.While choosing an operator customers consider some attributes that influence their decision.

The above figures show the order according to which these have significance to them.The above figures show the order according to which these have significance to them.

Majority of customers rank these attributes as:Majority of customers rank these attributes as:

Rank #1: NETWORK COVERAGERank #1: NETWORK COVERAGE

Rank #2: TARIFF (call rates)Rank #2: TARIFF (call rates)

Rank #3: RELIABILITYRank #3: RELIABILITY

Rank #4: SUGESTIONS FROM FRIENDS & FAMILYRank #4: SUGESTIONS FROM FRIENDS & FAMILY

48

10

48

27

5

11

4

24

48

11

12

7

14

17

28

13

23

17

73

24

19

28

23

33

26

33

14

39

42

6

35

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

%VOICE

SHARE

RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6

RANKSFriends Network Tariff Price Advertise Reliability

8/7/2019 Ajay Idea

49/80

Rank #5: INITIAL COSTRank #5: INITIAL COST

Rank #6: ADVETISEMENTSRank #6: ADVETISEMENTS

Attributes SatisfiedAttributes Satisfied

In the present scenario most of the customers are not satisfied with network, they wantIn the present scenario most of the customers are not satisfied with network, they want

stronger indoor and outdoor network. There is gap between consumers expectations andstronger indoor and outdoor network. There is gap between consumers expectations and

current level QoS. Inefficient billing process mostly trouble postpaid subscribers.current level QoS. Inefficient billing process mostly trouble postpaid subscribers.

49

Cost

Customer care

Dispute

resolutions

0

10

20

30

40

50

60

70

80

% VOICE

SHARE

Network Reliability Billing Quality of

service

ATTRIBUTES

8/7/2019 Ajay Idea

50/80

CHURN PATTERNCHURN PATTERN

There is a certain group of customers who often switch to other operators services in searchThere is a certain group of customers who often switch to other operators services in search

of better quality of services or lower tariff. The frequency is almost 6 to 12 months. Thisof better quality of services or lower tariff. The frequency is almost 6 to 12 months. This

category of customers falls mostly under the age group of 18 to 30.category of customers falls mostly under the age group of 18 to 30.

50

HAVE YOU EVER CHURNED

YES

30%

NO

70%

8/7/2019 Ajay Idea

51/80

Network and cost is the vital cause for many customers to churn .AsNetwork and cost is the vital cause for many customers to churn .As

in emerging competition the operators try to pull customers byin emerging competition the operators try to pull customers by

promising better services and keep on reducing the call rates andpromising better services and keep on reducing the call rates and

introduce the tariff plans in pioneering manner. On the other handintroduce the tariff plans in pioneering manner. On the other hand

there is a certain group of customers who are more receptive to newthere is a certain group of customers who are more receptive to new

products and services and churnproducts and services and churn just like that!just like that! This is what they saidThis is what they said..

51

Network30%

Qualityof

service

10%

Billingproblems

10%

Roaming

13%

Cost37%

REASONS TO CHURN

8/7/2019 Ajay Idea

52/80

Maximum numbers of churners are from 18 30 age groups and theMaximum numbers of churners are from 18 30 age groups and the

frequency of churn is almost more than 6 months.frequency of churn is almost more than 6 months.

CUSTOMERS OPEN TO CHANGECUSTOMERS OPEN TO CHANGE

52

ARE YOU OPEN TO CHANGE

OPEREATOR

YES

39%

NO

61%

customers open to change are

using

AIRTEL

10%

HUTCH

10%

RELIANCE

13%

TATA

INDICOM

8%

BSNL

59%

8/7/2019 Ajay Idea

53/80

39% of the existing customers want to change their operator and BSNL users constitute 59%39% of the existing customers want to change their operator and BSNL users constitute 59%

of this group. Maximum numbers of unsatisfied patrons are of BSNL, the reasons stated wasof this group. Maximum numbers of unsatisfied patrons are of BSNL, the reasons stated was

poor connectivity and tariff plans. All these unsatisfied customers are heading towards Airtelpoor connectivity and tariff plans. All these unsatisfied customers are heading towards Airtel

and Hutch, as these service providers offer various tariff options and network coverage asand Hutch, as these service providers offer various tariff options and network coverage as

well. Very few respondents wanted to switch to BSNL due to its one advantages feature thatwell. Very few respondents wanted to switch to BSNL due to its one advantages feature that

is FREE Roaming.is FREE Roaming.

CUSTOMERS INSIGHT53

And planning to switch for

Airtel

37%

Hutch

36%

BSNL

3%

Reliance

21%

Tata indicom

3%

8/7/2019 Ajay Idea

54/80

Potential customers

Plan to have one in near future

From the Potential customer: who dont avail or own cellular services, 67% of the group

want to have mobile phone, but didnt purchased till date due to some reasons, but 33% of

the respondents dont want to have it, the reasons are stated in the figure below.

No because!

54

YES

67%

NO

33%

8/7/2019 Ajay Idea

55/80

Out of the respondents who do not want to avail cellular services 55% of them think that

they dont need it, as this group constitutes of the housewives and students.

55

Affordability

30%

Landline

15%

NO need

55%

8/7/2019 Ajay Idea

56/80

Attributes influencing decision

As the existing customers ranked their consideration of attributes in the same way potential

customers responded according to their perception and stated hat in what order of their

preference will they rank these attributes while choosing an operator. Majority of

respondents ranked the attributes as:

Rank #1: TARIFF

Rank #2: NETWORK COVERAGE

Rank #3: INITIAL COST (PRICE)

Rank #4: ADVERTISEMENT

Rank #5: FRIENDS & FAMILY

Rank #6: RELIABILITY

56

31

31

311

412

29

20

1

7

20

4

16

5

17

18

22

14

15

16

15

18

25

15

23

15

20

18

0

10

20

30

40

50

60

70

RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6

Friends Network Tariff Price Advertisements Reliability

8/7/2019 Ajay Idea

57/80

Which service provider

Most of them want to go for Airtel and Hutch. The response is almost even for all the

operators except for Tata Indicom, as its almost 1.5 years Tata was launched and customers

seems not to be much interested in CDMA

57

Airtel

21%

Hutch

30%

BSNL

24%

Reliance

24%

Tata indicom

1%

8/7/2019 Ajay Idea

58/80

Prepaid or Postpaid

96% of the potential customer who want to subscribe for cellular services will initially avail

prepaid services. They state that prepaid is ideal for:

People who dont want to be locked into a year long contract

First time cellular buyers

People who dont want to go over their budget

Occasional users

People who want buy their children a phone for emergency uses

Who just want to have cell for incomings and have most minuscule outgoing calls.

58

PREPAID

96%

POSTPAID

4%

8/7/2019 Ajay Idea

59/80

TOP OF MINDAWARENESS

59

8/7/2019 Ajay Idea

60/80

VAS AWARENESS

60

28

4

19

11

23

52

9

35

30

42

0

10

20

30

40

50

60

% VOICE

SHARE

EXISTING POTENTIAL

CUSTOMERS

RELEVANCE TO SERVICES

SMS MMS Ring back tone Roaming GPRS

8/7/2019 Ajay Idea

61/80

Existing customers are more aware of Value Added Services as compared potential

customers.

Neither existing nor potential customers are relevant to voice mail services.

Existing customer are spending on an average of 50 to 100 rupees a months onavailing

Entertainment services like cricket live, city guides, games, ring, tones, news, jokes,and other services.

On the other hand potential customers may like to spend almost the same amounton these services.

GPRS & MMS are here but failed to gain subscribers as compatible handsets are

expensive.

Market is mainly SMS driven.

Most of the downloads and services are SMS driven, GPRS penetrations is 42 %.

Wide spread VAS development is restricted due to language and literacy problems.

Operators have to promote awareness now instead of introducing new services.

61

0

5

10

15

20

25

% VOICE

SHARE

< 50 50 - 100 100 - 200 > 200

(Rs)

EXPENDITURE ON ENTERTAINMENT SERVICES

EXISTING

POTENTIAL

8/7/2019 Ajay Idea

62/80

Advertisement recalls

22

28

127

6

4

26

2611

1

60

0 5 10 15 20 25 30

% VOICE SHARE

1

2

3

4

5

6

IDEAADD

S

EXISTING POTENTIAL

IDEA ADVETISEMENTS

1 Sumo & lady Idea Lifetime

2 Sumo as Disco Dancer- Flexi Change

3 Dialer Tone Baby, Cat, Duck

4 Ideas Women Card

5 Boy with a Rocket- 2 min outgoing free

6 Sumo in Dandia- Talk India

62

8/7/2019 Ajay Idea

63/80

Most of them remember: -

Boy & dog from HUTCH

Shahrukh khans brand ad from AIRTEL

Ajay & Kajol s non-stop mobile from TATA INDICOM

Sehwags and Bidai ad from RELIANCE

One India plan from BSNL

63

0

10

20

30

40

50

60

70

80

% VOICE

SHARE

Airtel Hutch BSNL Reliance Tata

indicom

OPERATORS

REMEMBER AD FROM

EXISTING POTENTIAL

8/7/2019 Ajay Idea

64/80

Telecom companies advertisements mostly appear on

64

76

30 27 29

0

73

5

27

56

0

0

10

20

30

40

50

60

70

80

% VOICE

SHARE

EXISTING POTENTIAL

CUSTOMERS

BEST MEDIA MIX

T V Newspaper Sign board Hoardings Magazine

8/7/2019 Ajay Idea

65/80

OBSERVATIONS

Today's Buyer

They're skeptical. Dishonesty has become part of every industry. Consumers don't

know how to find somebody they can trust.

They're cautious. They don't want to make a commitment until they see the whole

picture. Gather all the facts. Think through their decision.

They're tired of selling and sales pressure. From phone sales to junk mail, consumers

are fed up.

They're busy. So busy, in fact, that they often don't take time to solve a problem until

it becomes a priority. Or until somebody offers them a quick and easy solution.

They're confused. Never before have had consumers had so many choices. And whenthey think about solving a problem, they don't know what to do - where to look - or

whom to believe.

What the customer wants

Full talk value

RCV with longer validity

65

8/7/2019 Ajay Idea

66/80

Reduced tariff on group talk/SMS

Direct communication about schemes & tariff

Education & more information on VAS

Attitude

Low cost brands: Preference for affordable quality rather than the best quality. They would like

to use brands provided their cost is low.

Robust Products: Preference for robust products conveniently usable in city conditions.

Motivation and Involvement

Involvement and Loyalty with brands low, hence Retailer/Consumer schemes successfully

generate trials. Not sufficiently motivated to use the good quality brands.

Strong influence of family on brand preferences. Entire family uses one brand. Various

offers like family pack, group plans, etc. heavily influence a consumers purchase

decision.

Shopkeeper Influence

Shopkeepers important influence-considered to be an expert, big opinion maker

Importance of retailer schemes: Creates brand awareness, pushes brands with better margin

for him.

Distributors and company official direct support prevailing in loyalty factors of retailers

Retailers push the favorable churn mainly due to trade schemes and activations targeting

66

8/7/2019 Ajay Idea

67/80

Price Display

Price creates curiosity and generates attention for the brand. Price is an important element

mostly looked for any communication.

With high competition in the telecom market, price is seen as one of the most influencing

parameter to differentiate between brands. Though the price should be appealing and

competitive, it should not have any hidden costs and should not mislead the customers in

which case it generates a negative image of the brand and bad WOM publicity.

Communication Parameters

I also extended the analysis to advertising awareness measures. Top of mind' awareness

is owning the space that your product or service occupies between your prospects

ears. That way, when they're ready to buy they think of you first. Historically,

awareness of a brands advertising has been considered an important first step in achieving

effective advertising awareness assesses both the reach and the cut-through of the

advertising, in that it records the proportion of the market with long-term memories of

having noticed the brand advertising. This platform of prior exposure is then typically used

as a screen for asking more detailed questions about advertising effectiveness, Awareness

measures are used extensively in research as a gauge of brand performance and marketing

effectiveness. The most commonly used are those relating to brand and advertising

67

8/7/2019 Ajay Idea

68/80

awareness. Brand awareness is considered one of the key pillars of a brands consumer-

based brand equity

Product Benefit vs. Emotional Appeal

Consumers are conscious of product benefits even in case of less priced products. They

look for value for money.

Communicating product benefit more effective than emotional appeal

Product benefit be communicated explicitly

Recall of Slogans

People have a penchant for remembering slogans. Simple wording, product benefit or witty

or even provocative language gets attention.

Pleasant, Beautiful elements

Images of beauty, good scenery creates a feeling of pleasantness and positive impression in the

consumers mind. Probably beautiful scenery is felt as more visually appealing.

Celebrity Endorsement

Celebrity best in creating awareness and desire to use a product.

Use the celebrity innovatively in a theme

Should endorse vocally or in any other strong way

Film stars and Cricket stars are very popular

68

8/7/2019 Ajay Idea

69/80

A common mans endorsement of the project that showcases the product/services benefits

also appeal to the potential customers.

FUTURE CHALLENGES

Ensure consistent subscribers additions.

Sustain ARPU growth.

Maintain service standard.

Maintain rapid customer additions rate.

Maintain balance between pre & post customers.

Boost ARPU by giving richer content.

69

8/7/2019 Ajay Idea

70/80

SWOT ANALYSIS

STRENGHTS

1. India has technically educated, motivated and intelligent workforce, who if given proper

incentives like quality living and benefits, can be retained in India.

2. India possesses cheap labors to attract foreign investments.

3. Telecom software, telecom professionals, telecom infrastructure and telecom services are

the key players in shaping todays economy.

4. Revenue sharing strategies are leading to mergers and actuations, helping companies to

enter new business opportunities, and generate employments, boosting the countrys

economy.

5. Privatization of VSNL, along with its partnership with Tata has benefited not only the two

companies but also the county at large.

6. Information technology growth can propel India into IT superpower.

7. Quality of life definitely improves when the infrastructure and economy improves.

8. India has huge project plans with foreign countries which can attract further mergers,

investments etc.

9. Foreign companies that are facing problem in home market have already identified India as

a potential markets for business and therefore they are heavily investing in India.

70

8/7/2019 Ajay Idea

71/80

10. Government has already started relaxing rules for foreign participants.

11. Software exports from software technology parks are a huge potential business.

12. Though global telecom picture looks gloomy but India possesses the competitive advantage

in terms of its huge market size and many undeveloped areas.

WEAKNESSES

1. Bureaucracy and politics tremendously affects the business policies.

2. Slow reform process and slow liberalization affect the changes and makes the progress

slow.

3. Foreign companies wanting to invest in India are put off due to continuously changing

rules and lax policies.

4. Telcos though united, provide some services that bring them in close competition and

therefore lose not only profits but also consumer confidence.

5. Compared to the global structure, India is still concentrating on universal service in some

parts of the country.

6. Since 1994 reform process, telecom density has only gone up to 3 as compared to the

global average of 14.

7. Though cellular is the most attractive business today, but still the overall number of cellular

subscribers is very low and this market really needs to be tapped.

8. Embracing change and understanding the technology takes a lot of time making the

changes very slowly.

71

8/7/2019 Ajay Idea

72/80

THREATS

1. Regulatory and tariff changes especially in the cellular operations are constant threats.

2. Chinas early liberalization and the fast growing economy may prove to be a hindrance for

India.

3. Economic protectionism and continuous political changes plays against plays against

everybodys favors and affects the good intentions of players even like reliance / Tatas etc.

4. Price regulations based on pre set rate of return hinder the growth.

5. Young hard working and intelligent work force want to leave the country due to poor

economic conditions and exploitation.

6. Indian businesses take time or cant survive due to the constantly changing technology and

fast-paced nature of telecom business.

OPPORTUNITIES

1. Lot of new entrants in telecom is bringing investment opportunities.

2. Economic liberalization is bringing a significant amount of progress.

72

8/7/2019 Ajay Idea

73/80

3. Telecom educational institutes are coming up to keep the professionals at par with the

changing technology.

4. New opportunities are generating more employment and creating a knowledge based

economy

5. Privatization of services in telecom sector has led to keen competition, as a result of

which prices are reduced and more business opportunities are created.

6. Increased availability of bandwidth has opened doors to new schemes making efficient

usage /providing value added services and generating profits.

7. For cellular operators providing long distance is a lucrative business opportunity and

they can also concentrate on providing many value added services.

8. Provision of not only basic services /but also, internet, cellular, medical transcription,

call center, prepaid services along with

73

8/7/2019 Ajay Idea

74/80

RECOMMENDATIONSRECOMMENDATIONS

Product Characteristics

Celebrity endorsement, affordable price and low entry cost.

Frequent promotional schemes and attractive Tariff plans.

Speedy activation, good connectivity and availability.

Product should be designed for suitable city conditions

Customer care or product help line needs to be more responsive as there have been

complaints from current users.

Communication

Message

Show the product benefit and tell them how this satisfies their requirements.

Communicate the affordable price: justify why it is better than other brands already

Existing in the market and why anyone should prefer our brand to others.

Satisfying experience, individual pleasure

Good quality, strong network

Consistent and efficient customer care.

Channel

TV is the strongest mass medium. Wide reach, most used

FM radio best, most credible way to communicate product benefit, national brand

status and slogans along with tune, hence easily remembered

Newspapers advertisements (for Promotion Scheme) & Pamphlets are so very

popular and have local as well as national coverage as per the schemes.

74

8/7/2019 Ajay Idea

75/80

Free sampling/ Free Usage or schemes for first few months at brand launch or to

influential people, opinion leaders.

Posters, displays, wall paintings, hoardings especially near retail outlets and

markets.

Sponsoring religious events/ Diwali Dhamaka / Festive events.

Communication Strategy

Availability can be enhanced by looking at new modes of distribution like coffee shops,

and other hangout shops. To drive home the positioning in Mathura Road market hoarding are the best.

Activities: Games, Road Show, Display Prize ads.

Activities: reinforce in cost effective way, proper timing

Employing a canopy and show the network connectivity and transient advantage and give

instant connection to the customer.

Address Verification of customer will be done at very fast and elegant way. (Address

verification form also includes a reference mobile number of a person applying for or theclose relative of that mobile holder and a proof for that relation is also to be attached along

with.)

Retail Schemes and consumer schemes need to be continued for sufficient time.

Retailer schemes can be continued for longer time.

Consumer Schemes: free sampling to influential people, opinion makers.

Increasing communication presence through displays at outlets, hoardings, wall painting

Sponsorships and presence at religious events/prestigious event targeting Diwali as most ofpeople go on shopping & purchasing new product.

Attractive packs rather than plain packs: they may encourage people to buy.

75

8/7/2019 Ajay Idea

76/80

76

8/7/2019 Ajay Idea

77/80

A LOGICAL APPROACH TO CHURNA LOGICAL APPROACH TO CHURN

Capture customer informationCapture customer information

Segment the total marketSegment the total market

Identify the characteristics of various segmentsIdentify the characteristics of various segments

Locate the most flickering / floating segmentsLocate the most flickering / floating segments

Identify reasons for churnIdentify reasons for churn

Manage the churnManage the churn

77

8/7/2019 Ajay Idea

78/80

CONCLUSIONSCONCLUSIONS

Network coverage and tariff plans are key influencer in decision-making process of

subscribing to a particular operator.

Consumers are mostly dissatisfied with the network coverage of BSNL

Existing and potential both group of customers prefer prepaid plans as it is easily availableand helps them to stay inline with there phone expenses.

Expenditure on mobile is 300-500 rupees for most of the consumers and potential

customers also plan to have the same amount as their monthly budget.

New operator have penetrate market with new services and attractive tariff plans

As maximum average calls are local centric so company can introduce new schemes onlocal calls.

The segment of 18- 30 age group and the students are most receptive to new products and

services. They are the hot targets.

The consumers expect emergence of competitive and innovative market in the nextgeneration of telecom industry, the competition will be price less.

Creating and maintaining brand image will be the challenging task in Mathura Roadmarkets.

T.V. and FM Radio may prove to be the most effective communication channel.

There is certain group of people who dont avail cellular services but are planning to have

one in near future; they can be easily targeted for product and services offerings

Most of the respondents remember cine stars and cricket stars as the ambassadors of

telecom brands, Shahrukh khan for AIRTEL, Ajay and Kajol for TATA, Viredra Sehwag

and Amitabh Bachchan for RELIANCE and so on.

78

8/7/2019 Ajay Idea

79/80

Consumers very effectively relate the image of the brand with the public image of the

celebrities.

Keep innovating; segmentations, and competitive differentiator will lead to growth path.

Key developments for increase for usages and awareness of VAS

Acquiring loyal customers initially

Games and content should be developed keeping local trends and taste in mind

79

8/7/2019 Ajay Idea

80/80

BIBLIOGRAPHY

I. Kothari C.R, Research Methodology, Vishwa prakashan, New Delhi, Reprinted Edition,

2004, Page 1-112.

II. Kotler Philip, Marketing Management, Prentice Hall of India Pvt. Ltd., New Delhi, 11th

Edition 2004.

III. Ramaswamy V.S. & Namakumari S., Marketing Management, Macmillan India Ltd.

Publication, New Delhi, 3rd edition 2002.

IV. Boyd Haper W., Westfall Ralph & Stasch Stanly F., A.I.T.B.S. Publishers, 7th Edition, Page

28-50.

Websites:

http://www.indiainfoline.com, TeleNews letter January May 2006

http://www.cellularoperators.com

http://www.business-today.com

http://kerlins.net/bobbi/research/qualresearch

http://www.india-cellular.com

http://www.india-cellular.com/http://www.ideacellular.com/http://www.india-cellular.com/