Business Analysis of Tata Docomo About
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Business Analysis Of Tata DocomoAbout
TATA DOCOMO is Tata Teleservices Limiteds telecom service on the GSM platform arising out of the Tata Groups strategic alliance with apanese telecom ma!or "TT
DOCOMO in "ovem#er $%%&' "TT DOCOMO has $() of sta*e in the compan+' TATA
DOCOMO has license to operate its GSM services in ,- telecom circles' .t started its
operation in .ndia from Tamilnadu' "TT DOCOMO is one of the leading mo#ile operators
in world and in apanese Mar*et its having more than /%) of mar*et share in telecom
mar*et' "TT DOCOMO is supposed to help TATA Telecom Services in growing its
#usiness as well as provide the *now0how to help the compan+ develop its GSM
#usiness' Tata DOCOMO was the second compan+ in .ndia who introduced second
pulse tariff' .t mar*s a significant milestone in .ndian Telecom landscape'
Vision Statement
1e will refine our #rand and strengthen ties with our customers'
1e will solicit and incorporate feed#ac* from customers so that we continue to e2ceed
their e2pectations'
1e will continue to innovate so that we can earn the respect of people worldwide'
1e will #ecome an organi3ation whose energetic staffs are capa#le of overcoming all
challenges in pursuit of our corporate vision'
Objectives
Corporate Objectives
4ollowing are the corporate o#!ectives of TATA DOCOMO Services
As a partnership of two pioneering #rands5 TATA DOCOMO promises to deliver relevant
new applications and services that will ma*e life simpler and more en!o+a#le for the
customer'
To offer simplicit+ to customers in its services amidst cluttered telecom operators and
confusing options'
To offer their service #+ #eing countr+s most transparent5 innovative and li#erating
telecom #rand'
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To create a new communication culture and to full+ utili3e the individual potential'
Marketing Objectives
6olumes and 7rofits The Compan+ has earmar*ed an investment of 8$ #illion on its
pan0.ndia GSM networ* rollout' The compan+ has positioned the tariff for its services
under the 97a+0for0what0+ou0use: model which includes per second pulse tariff structure'
.t offers its GSM #ased mo#ile services in ,( circles out of $$ circles defined in .ndia'
Tata DOCOMO actuall+ falls under the superset group of Tata Teleservices' Tata
Teleservices runs its CDMA #ased services under Tata .ndicom and its GSM #ased
services under Tata DOCOMO' Tata Teleservices added ;$'; million? and 6odafone >$'$
million?' Currentl+ Tata Teleservices is .ndias si2th largest mo#ile operator with
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Tata Docomo is a mo#ilewireless service provider and is colla#oration #etween the
apanese compan+ Docomo and the .ndian giant Tata for its launch in .ndia' The
announcement of the launch was made as recentl+ as une ,%5 $%%-' ence the product
is a new one in the mar*et with a lot of e2isting pla+ers which include giants li*e =harti
Airtel5 6odafone5 @eliance etc ' ence it is important to anal+se the competition in the
mar*et and see if there is enough scope in the mar*et'
Competitor Anal+sis 0 The wireless telecom industr+ is a huge and still growing mar*et
and has immense scope for new entrants as well as e2isting pla+ers'
The following chart shows the division of the mar*et share in terms of num#er of
su#scri#ers as per the T@A. report for the +ear $%%-'
The #iggest pla+ers in the industr+ are the ones that are the oldest and well esta#lished
ones with ma!or mar*et shares'
The ma!or pla+ers are =harti Airtel 5@eliance and 6odafone' @eliance is relativel+ new
and +et has gra##ed a ma!or share in the mar*et compared to the other two which are
older'
Tata has also gained good amount of mar*et share even though it has onl+ !ust entered
the industr+ in the second half of the +ear $%%-5 which shows that the mar*et has
enough place for man+ pla+ers as long as the+ can attract customers to their #rand'
Tata #eing a well esta#lished and trusted name in .ndia could prove to #e a ma!or #oost
for Tata Docomo to esta#lish itself in .ndia in a #ig wa+'
The rate of growth of these networ*s from Septem#er $%%- to Decem#er $%%- as per
the T@A. report for $%%- is given #elowE
S!"V#C! P"OV#D!"
"AT! O$ %"O&T'
=harti Airtel
F'
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=S"L
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The compan+5 with &%'-
million?5 state0run =harat Sanchar "igam Ltd >=S"L? >/F'; million? and .dea Cellular >/%
million?'
The compan+ offers integrated telecom solutions to its customers under the Tata
.ndicom5 Tata DOCOMO5 7hoton and 1al*+ #rands5 and uses #oth the CDMA and GSM
technolog+ platform>s? for its wireless networ*s'
Tata Teleservices5 which provides #oth CDMA0#ased and GSM0#ased mo#ile service
networ* under the name of Tata .ndicom and Tata DoCoMo respectivel+5 added ;$'; million? and
6odafone >$'$ million?'
Market S(are
S&OT Analysis
swot0anal+sis0image'png
Strengt(s*
Tata Docomo was the first in the #usiness to introduce the much acclaimed pulse plan in
which users are reHuired to pa+ on seconds #asis' This attracted a ma!or portion of themo#ile users especiall+ the rural sector as it resulted in much cheaper costs'
Tata is a renowned name in .ndia' Bsta#lished around ,/% +ears #ac* Tata services are
*nown to provide the #est0in0Hualit+ services at minimal rates' The ardent followers of
the Tata #rand are sure to use its services' Also the goodwill Tata has generated via its
philanthropic activities gives it a clean image and attracts a lot of people towards it'
Tata Docomo gives its users a chance to tr+ out a large num#er of services which are
first of their *ind' 4or e2ample5 the introductions of =udd+net which allows the ones who
have !oined it to sta+ connected at a price of ,p( sec and also en!o+ social networ*ingsites' The G7@S on demand service allows users to use internet for a convenient
num#er of da+s' 4or the post0paid customers Tata Docomo came up with the postpaidI
doorstep service which allows users to get the representatives at their respective homes
to solve their Hueries' These and a large num#er of other services have given Tata
Docomo an edge over the other Telecom services'
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Tata Docomo services are for the common people' Li*e alwa+s the target audience
comprises of Aspirers and See*ers which represents the ma!orit+ percentage of the
mo#ile users in the countr+ and has resulted in Tata Docomo reaping rich dividends'
&eaknesses*The most common complaint of Tata Docomo users has #een the wea* signal strength
the+ have #een getting in some of the regions it has #een launched in' This has resulted
in freHuent disconnections and has agitated the users'
The focus has mostl+ #een on the prepaid connections' The post0paid connection was
launched Huite late and wasnt a#le to generate as much #u33 as the prepaid
connection'
There is a large variation in the efficienc+ of the customer services across the regions
Tata Docomo has #een launched in'
The Tatas have #een concentrating on the rural mar*et so much that the ur#an focus
has #een left neglected' There is an urgent need to maintain a #alance #etween these
two regions to #oost further growth'
Opportunities*
.t has a chance to e2pand its services across the whole countr+ as there are still
une2plored regions' .t can also #ring out some schemes e2clusivel+ for ur#an users to
increase its ur#an mar*et penetration'
.t can also tr+ focussing on coming out with some innovative ideas as far as its internet
services are concerned since at present there in not much in the Jinternet services area
which provides it with a competitive edge' .t must tr+ to e2ploit this factor'
Since the introduction of ;G services in .ndia5 Tata Docomo has a chance to #ring a#out
services which are compati#le with ;G to ensure that people using it dont face
incompati#ilit+ issues'
@ight now Tata Docomo has focussed on e2clusive schemes for internet5 SMS5 incoming
and outgoing calling etc' "ow it is time for #ringing out com#ined and integrated
services'
T(reats *
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.f the error of disconnections arising out of wea* signal strengths continues to occur it
ma+ result in people leaving it for other networ*s'
There is uneasiness among users regarding the fact that the ,psec services will
continue till the life c+cle lasts' This uneasiness should #e removed #+ proper
clarification'
The o#vious and the #iggest threats are from the alread+ e2isting mo#ile services
providers li*e Airtel5 .dea etc who have consolidated their positions' .t would #e an
arduous tas* to topple them from their positions'
Category $actors
7orters / forces anal+sis model deals with those e2ternal factors which impact the
nature of competition within in industr+ among the firms and the internal factors inside
the industr+ that influence the competition among firms' A firm needs to comprehend the
d+namics of its own industr+ #ase and the mar*et involved so as to compete effectivel+'
4ollowing are the five forces e2plained for Tata DOCOMO 0
T(e Degree of "ivalry*
.n Telecom space in .ndia5 there are a num#er of #ig companies li*e @eliance5 .dea5
Airtel5 =S"L5 6odafone5 etc which are giving cutting edge competition to each other'
@ivalr+ among the competitors can #e e2plained in terms of introduction of various
schemes and offers freHuentl+ that compels each other to come up with innovative
strategies more than often' This rivalr+ can #e controlled #+ Tata Docomo services #+
focusing on hiring performing sales persons having customer gaining s*ills and it should
also tr+ to #rea* apart good sales person from its competitors'
T(e T(reat of +e, !ntrant*
Telecom industr+ is an attractive avenue for an+ new firm due to its advantages and
profita#ilit+ involved' ence5 the threat of new entrants is prett+ high and the good recent
e2ample can #e Aircel5 6irgin Mo#ile5 etc' The GSM version of Tata .ndicom i'e' TataDOCOMO also entered as a threat in mar*et for other e2isting competitors' The rule is to
capture the mar*et share of e2isting competitors where the+ lose some of them'
T(e T(reat of Substitutes*
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The ma!or su#stitute possi#ilit+ in Telecom space can #e Online Chat5 Bmails5 6oice
over .75 Satellite 7hones5 etc' These potential su#stitutes have high capa#ilit+ of
replacing Telecom space5 #ut in current scenario its not highl+ pro#a#le'
=ut *eeping in mind the futuristic possi#ilities of such su#stitutes a#ilit+5 the compan+
should *eep a close watch on them and strategi3e accordingl+'
Buyer Po,er*
Since the competition is ver+ intensive in Telecom space5 the #argaining power of
customer is ver+ high' .n the span of hardl+ /0( +ears5 the prices have come down in a
sharp manner and still the process is on' The onl+ reason is J=u+er 7ower in this space'
So in order to overcome this power5 DOCOMO should come up with strategies of
differentiating its product from its competitors so as to stand out among the crowd and
gain the ma2imum from its customer #ase'
Supplier Po,er
More is the competitionK more is the #u+er and supplier power in an+ industr+' So is true
for Telecom sector too' Supplier puts pressure on firms5 when the+ have more options
in the industr+'
These five forces help the compan+ to tac*le the competition
!nvironmental $actorspest'imgcache
Tec(nological*
The ma!or attraction of Tata Docomo has #een the ,psec scheme' This innovation has
drasticall+ reduced customers costs and have made them shift #ase from competitors'
docomo0,0paise0per0second'png
.t gives users a chance to tr+ out #lac*#err+ services at minimal cost for one wee*'
#lac*#err+0#old0curve'7G
.ts #udd+net plan allows users access to social networ*ing sites without data charges or
G7@S pac*s' Also5 the #udd+net plan also connects a person to his closest friends #+
this scheme as charges are lower than normal costs'
#udd+net'!pg
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The 9do the new: polic+ of the #rand la+s more stress on research so that there are more
technological innovations which can further the delight the customers and enlarge its
mar*et share'
do'!pg
Tata Docomos 9Diet postpa+ plan: allows user to ma*e their own plans as per their
convenience' As a result users can now cut up to ,&) of their #ills fla# across Local5
STD and @oaming'
post'!pg
Political*
"o political resistance due to the philanthropic image of TATA'
Tata Docomo has to compl+ with T@A. regulations !ust li*e the other telecom serviceproviders'
"o ta2 incentives or such provision is there for Tata Docomo #ecause there is alread+ a
ver+ stiff competition in this field with ever+ service provider tr+ing to revitalise itself'
.n areas where tata has #een activel+ present #efore5 the usage is much more and the
services have #een much #etter'
!conomic*
Tata Docomo is still in its transition from introductor+ stage to growth stage as still thereare lots of Huestions regarding sustaina#ilit+ of its schemes'
Tata Docomo is growing #+ leaps and #ounds in a large num#er of states li*e Andhra
7radesh5 arnata*a etc' .t has manages to carve out a niche for itself in such a
competitive mar*et which gives us an idea of the shape of things to come' ence from
the present mar*et scene Tata Docomo will continue to grow in the future'
Since Tata is *nown for its acHuisitions and mergers a#road5 if it can manage to stri*e
out such *ind of a deal in near future it can lead to a huge #oost to its customer #ase
and strengthen its mar*et position'
Social*
The schemes li*e #udd+net allows Tata Docomo users to sta+ more connected at ver+
cheap prices which has resulted in more interaction in its users'
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The services have had a huge impact on the .ndian middle class societ+ as the low
prices have #een the ma!or factor that have made the aspirers and stri*ers leave the
li*es of airtel5 6odafone etc and shift to Tata Docomo'
The pu#lic opinion regarding Tata Docomo is ver+ positive in most of the regions at
present' The ma!or reasons have #een the trust people have in Tata and its products'
Also the present schemes are considered to #e too good to #e true and have managed
to delight the customers'
Though the e2perts in this field are apprehensive regarding the sustaina#ilit+ of Tata
Docomos schemes5 the+ still have #een ver+ impressed #+ the pu#licit+ and mar*eting
that has #een given to its services'
-egal*
The different strategies and policies that Tata docomo has implemented or followed are
in compliance with the .ndian laws and legal structure' Bver+thing has #een
implemented smoothl+ and in a structured fashion' There have #een no legal issues till
now'
COMP!T#TO" A+A-.S#S $O" TATADOCOMO
Competitors for Tata Docomo can #e classified into $ #road categories in the wireless
telephon+ domain' These are 0
GSM Service 7roviders Airtel56odafone5.dea5=S"L5ninor5@eliance GSM5Aircel
CDMA Service 7roviders @eliance5 Tata .ndicom5 6irgin Mo#ile
The e2isting mar*et share of GSM and CDMA as given #+ the T@A. @eport5March $%,%
is GSM vs CDMA'7"G
.n this conte2t5 we need to anal+se the e2isting mar*eting o#!ectives of Tata Docomo as
well as specif+ the o#!ectives of the 7ro!ect'
Marketing Objectives
Market Penetration
Mar*et penetration is a growth strateg+ adopted #+ a compan+ for increasing the sales
of its current product to current mar*et segment without an+ change in the product' ere
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TATA DoCoMo has launched its GSM product in the mar*et and is competing with the
e2isting competitors li*e Airtel5 6odafone5 etc for capturing the mar*et'
+e, Prouct Development
.t is a strateg+ adopted #+ a compan+ for growth #+ offering modified products to current
mar*ets segment' 4or eg' TATA DoCoMo #ringing in new plans in the mar*et5 dail+ #asis
plan5 pa+ per second5 etc'
Objectives /as a project0*
To *now the awareness a#out the #rand'
To chec* Hualit+ of #rand >i'e'5 connectivit+ etc?'
To stud+ the uniHue product feature of #rand'
To *now the impact of promotional activities on the purchasing #ehavior of the #u+er'
6arious features offered #+ TATA DocoMo are as followsE
,psec 0 An+where .n .ndia
Savings Alert After ever+ Outgoing call
.SD calls on , second charging
=est SMS rates from Tata DOCOMO
7re activated STD5 .SD and "ational @oaming without rentalAn+where in .ndia @echarge with Tata DOCOMO
Total .nformation control
=udd+ "et
Dail+ 7lans
"oteE This is an indicative and non0e2haustive list of schemes'
MA"1!T#+% M#2
1hat is Mar*eting Mi2
The Jmar*eting mi2 is a set of controlla#le tactical mar*eting tools that wor* together to
achieve compan+s o#!ective'
The
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7rice
7lace
7romotion
P"OD3CT*Tata Docomo provides a good range of products as a mo#ile service provider' .t provides
#oth pre0paid and post0paid services'
.t also provides a good networ* coverage and the voice Hualit+ and other essential #asic
features are all well in place'
P"#C!*
The pricing of the services was of utmost importance in case of Tata Docomo as it wasto compete with alread+ esta#lished giants li*e 6odafone 5 Airtel 5 @eliance etc'
Tata Docomo was the first to introduce a per second pulse and the rates of ,
paisasecond for #oth prepaid and post0paid services'
P-AC!*
Tata Docomo could ma*e its presence felt in the mar*et relativel+ easil+ #ecause the
Tata conglomerate was alread+ into the communications field with Tata .ndicom'
=ecause of the a#ove reason5 the distri#ution channels were alread+ esta#lished'
P"OMOT#O+*
Advertising was a ma!or contri#utor to the promotion of the #rand' A musical +outh
oriented ad0campaign gave it a head0start in the mar*eting and promotion of the product'
The idea of #ringing together people and the +outh is central to its ad0campaign'
Sales promotion were also helped #+ the uniHue offers and services provided #+ Tata
Docomo' The+ used man+ innovative plans and schemes to attract new customers'
P"O$#TS
7rofits for Service providers are mainl+ reflected in ; parameters A@7> average
@evenue 7er ser?5 Mo>Minutes of sage? and "et additions to the su#scri#er #ase'
A@7 and Mo figures for wireless providers>GSM vs CDMA?
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Service Proviers4 s(are in net aitions uringt(e mont( of 5une67898
The a#ove #ar graph represents the percentage share of each of the ma!or wireless
service providers in the net addition to the su#scri#er #ase during the month of une0
$%,%'
The a#ove statistics are indicative of the growth of each service provider in the industr+
and their changing mar*et shares due to it'
.t shows that Tata has a good share in the net additions closel+ #ehind the three ma!or
esta#lished #rands and is a#ove the other pla+ers'
"ow let us tr+ to compare and contrast the various #rands on some indicative
parameters
Prouct $eatures Matri:*
$eatures;Provier
Airtel
Voafone
"elianceAircel
#ea
BS+-
Nualit+ of networ*
B2cellent
Good
Average
Good
Average
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B2cellent
6ariet+ of Tariff plans
Good
Good
B2cellent
B2cellent
Average
Average
7rice per call
igh
Average
Low
Average
Average
Low
Customer service
Good
Good
7oor
Average
Average
Average
Additional services offered
Good
B2cellent
Average
B2cellent
Average
7oor
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Differential avantage comparison*
Ability;Provier
#nnovationService
Marketing
$inance
Management
Airtel
Good
Good
Good
Good
B2cellent
6odafone
Good
Average
B2cellent
B2cellent
Good
@eliance
Average
Average
7oor
B2cellent
Good
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Aircel
B2cellent
Good
Good
Average
Average
.dea
7oor
Average
Average
Good
Good
=S"L
Average
Average
7oor
7oor
Average
Tata Docomo
B2cellent
Good
B2cellent
B2cellent
Good
All the a#ove ratings are #ased on comparative performance indicators relating to
consumer lo+alt+ and perception of the #rand and are on a scale of / with e2cellent
#eing the highest and ver+ poor #eing the lowest
!:pecte $uture Strategies of Tata Docomo
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The following trends have #een o#served5 as per the T@A. @eport of March
$%,%E4EAcadsM*tg7ro!ectPDoCoMo@ural vs
ur#an'7G4EAcadsM*tg7ro!ectPDoCoMo@ural vs ur#an $'7G
This clearl+ shows that there is a huge potential in the rural mar*et where more than
(%) of .ndias population lives' This should #e the ideal direction where Tata Docomo
should focus its strategies on'
Customer Analysis
Segmentation
The mar*et segment chosen #+ Tata DOCOMO can #e categorised #ased on different
t+pes of segments as following
GeographicE 0 .t started its services from southern 3one of .ndia i'e' Tamilnadu' Slowl+
the+ started spreading their services towards other states of countries via arnata*a5
Andhra 7radesh5 etc followed #+ movement towards northern 3one of countr+'
DemographicE 0 On the #asis of demographics5 the people in their +outh i'e' an age
#ased targeting has #een done #+ Tata Docomo' Since the ver+ launch of the product5
the target has #een the +outh clearl+ evident in their ad campaigns and initial offers li*e
the 9#udd+net: etc that were uniHue features introduced #+ Tata Docomo for the first time
in .ndian wireless communication industr+'
7s+chographic This segmentation was done #ased on lifest+le of customers and was
concentrated on middle and higher end segments' Moreover5 with price optimi3ations
strategies li*e ,psec and lower #illing plans5 it emphasi3ed its focus on reaching out
customers through mass mar*eting'
=ehavioural The #enefit0see*er segments #ased on Hualit+5 service and convenience
was targeted' Nualit+ of networ* and service was emphasi3ed more #ased on customer
needs'
Consumer Be(aviourConsumer #ehaviour is the sum total of the #u+ing #ehaviour of final customers
individuals and households that #u+ goods and services for personal consumption' .t is
the response of customers to environmental factors
4actors affecting #u+er #ehaviour for the customers of Tata DocomoE
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Social status E This affects the average duration of calls made #+ the customer'
Customers of tata Docomo are varied across all social statuses
LocationE r#an users and rural users 7enetration is higher in ur#an areas' Mo#ile
phone usage is ver+ less in rural areas and hence5 users of Docomo are also ver+ less
AgeE +outh are comparativel+ more inclined to e2periment with the new #rand and new
schemes'
7erceptionE 7erception of the #rand as one that focuses on innovation to satisf+
customer needs and that provides value for mone+' This image has #een #uilt #+ various
promotional campaigns and schemes introduced #+ the compan+'
7ersonalit+E The highest value producing customers are people who #uild strong human
relationships and people who sta+ awa+ from their families
TA"%!TT#+%*Tata DoCoMo has #ased its mar*eting campaign on targeting certain segments of the
mar*et5 some openl+ and some in a su#tle manner' Qet the ma!or approach in the
mar*et targeting has #een mass mar*eting or undifferentiated mar*eting'
The ma!or focus although seems to #e on +outh #ut there is a general focus on tr+ing to
reach out to the masses #+ reducing prices and venturing into #oth the GSM and CDMA
mar*ets' According to Mr' Anil Sardana5 Managing Director5 Tata TeleservicesE 91e have
chosen Tata DoCoMo as our GSM #rand' 1e li*e the appeal of the DoCoMo #rand' .t
#asicall+ means 9Do Communication More:5 and it reaches out to a large audience' 1ith
our CDMA offering5 we are alread+ catering to the mass mar*et consumers' 1ith GSM
services5 we are e+eing the mid and higher end of the spectrum:'
POS#T#O+#+%
Tata Docomo has highl+ emphasised on the value proposition it has offered to its
customer' .t is positioned on econom+5 which can #e seen #+ the revolutionar+ 9per
second #illing: it offered to its customers when it entered the mar*et' .t caught its
competitors off guard which led to a lot of vulnera#ilit+ in the mar*et with their shares
dropping #+ a significant margin' owever due to the high regard for the #rand Tata
which alread+ e2ists in the .ndian societ+ due to its philanthropic initiations and the fact
that a lot of Tatas products focus on giving the #est of products to its customers at the
lowest possi#le price5 there was not much difficult+ in ensuring that the customers
perceived Tata docomo services the wa+ the+ wanted them to' The recent 9per second
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#illing on roaming: scheme has further strengthened its positioning as the cheapest
possi#le alternative in the minds of the customers'The positioning map of tata docomo
with respect to its strongest competitors has #een shown #elow5
Orientation >lu2ur+0performance?R AR.S
7ricesQ AR.S
=harti Airtel >$,F'/)?
@eliance >,&)? Tata Docomo >-)?
=snl >,;)?
Tata has also tried to position its services as #eing +outh oriented' .ts #udd+net scheme
which gives users a chance to sta+ connected with friends at a meagre price of ,p( sec
and the low prices >which have #een a ma!or source of attraction for the teenage and
college going crows? are an e2ample of it'
ence to position it in the a#ove mentioned wa+s5 the differences which have #een
promoted can #e categorised in the following wa+E
.mportanceE The cheap rates represent the most valued #enefit to the users' .n .ndia5 a
great deal of emphasis is laid on the price of a product' The growing proportion of
see*ers in the population has resulted in price #eing considered the most important
factor in an+ product'
DistinctiveE The #udd+net scheme is pro#a#l+ the most innovative feature which can #e
offered #+ a telecom services provider to its users' .t is highl+ #eneficial for its users who
want to sta+ connected at low prices and also en!o+ the social networ*ing sites services'
SuperiorE The fact that Tata Docomo was the first one in the telecom field to charge at
pulse rate ensured that the customers perceived it as a superior service provider in this
conte2t than its competitors'
Communica#leE The a#ove mentioned differences have #een communicated to the
customers #+ strong advertising'
7re0emptiveE Though the competitors can cop+ the a#ove mentioned features #ut the
fact that Tata DOCOMO was the first one to #ring a#out these features ensures that the+
will alwa+s have an edge'
7rofita#ilit+E The #udd+net plan reHuires onl+ DOCOMO users to avail of the ,p(sec
price' ence not onl+ is this plan #eneficial to users #ut also increases its customer #ase
which would ensure profita#ilit+ in the long run'
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Tata docomos value proposition positionE
7rice
MO@B
TB SAMB
LBSS
MO@B
TATA DOCOMO
TB SAMB
LBSS
=enefits
The fact that #esides the pulse rate5 the cost has also #een reduced has placed TataDOCOMO in the more for fewer categories'
Assumptions
Customers will #u+ our product as we are providing lot fle2i#ilit+ in terms of plans'
Customers will #u+ our product as we are offering higher value plans'
1e can leverage on the #rand name of 9TATA:5 thus the perception of product is going to
#e 9great: and relia#le'
Competitors will #ehave in a rational wa+'
Gaining profit and growth in the meantime will not lead to increasing price unless
inevita#le'
Customers wont #e facing an+ ris* in terms of #u+ing and consuming our offerings and
services'
Strategy < Prouct
Customer Targets 7roduct fading awa+
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To pave wa+ for new ones? >Decline?
>Creating roots?
Market Survey
On conducting the mar*et surve+5 we found some information relevant to our mar*et
anal+sis on Tata Docomo' These surve+s are ta#ulated in following diagrams
&(ic( Service &ill you Prefer
1ho influences +our decision most in choice of +our networ*
Most .mportant 7arameter while choosing a networ*
1hich product will u prefer among CDMAGSM
1hat networ* will u prefer
Contingency Plans
The strateg+ devised #+ us has ta*en certain things for granted in terms of the goals that
the compan+ can achieve and the demand of the product'
There might #e some pro#lems in the implementation of the strategies suggested' The
possi#le pro#lems and their #ac*up plans are as followsE
Obstacle 9"etwor* coverage might not #e an eas+ e2pansion as it ma+ need permissions and
grants and a lot of investment'
SolutionE An alternative to networ* enhancement could #e the use of the networ* width
of the tata .ndicom services and integrating it with the Tata Docomo networ* #+ sharing a
certain amount of #andwidth that can #e *ept as #uffer'
This wa+ there can #e a short term solution in case the e2pansion of the networ* ta*es
too long or is to capital intensive to #e ta*en up in the immediate plans of the compan+'
Obstacle 7
7ricing ma+ not #e eas+ to control as the competitors can also slash their prices to
match the low prices of Tata Docomo'
SolutionE "ot onl+ pricing its services low #ut also another suggestion has #een made of
#eing a Lead mover instead of pla+ing the catch up #+ adopting wait and see approach'
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=eing the first mover in an+ *ind of competition adds to the competitive edge of the
compan+' Choosing innovative and minimal prices not onl+ gives the compan+ a good
amount of mar*et share #ut also gives them goodwill of the customers'