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SEMINAR REPORT
AREA OF STUDY:
"To study the factors that enhance a dealer to gain a competitive
advantage over other dealers in cellular industry"..
SUBMITTED BY
Jaspreet Kaur Bisla
MBA 2nd SEM
Roll no: 2012.MGB.1084
SUNMITTED TO:
DR.RAGHBIR SINGH
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ACKNOWLEDGEMENT
I sincerely thank Dr.RAGHBIR SINGH for giving me an opportunity to take up this seminar. I
thank him for being a constant source of inspiration and encouragement. I would like to
express my gratitude to him for providing me support to conduct this research.
Without his continuous help, suggestions and encouragement it would not have been possible for
me to complete the project effectively.
I would also express my deep gratitude to my family, friends without whose cooperation this
project would not have been possible.
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CONTENTS
Serial no. Topics Page no.
1. Acknowledgement 2
2. Executive summary 4
3. Competitive Advantage 7
4. Resources & Abilities 9
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5. Capability of Competitors 12
6. Research Design 13
7. Sample Design 16
8. Profile of Industry 19
9. Profile of Organizations 21
10. Profile of Sample Unit 29
11. Introduction to Analysis 30
12. Data Analysis & Tools 31
13. Summary of Findings 59
14. Recommendations 61
15. Questionnaire 64
16. Bibliography 69
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Executive Summary
This dissertation report deals with the study on the factors that enhance a dealer to gain a
competitive advantage over other dealers in cellular industry.
The study was carried out within the Amritsar city amongst a sample size of 30 dealers
appointed as franchisees ha the four cellular service providers i.e., Airtel, Spice, Hutch,
BSNL. The sample has been chosen on convenience basis.
The report has taken into consideration the contribution of attributes such as price, quality,
catchy advertising, public relation, reliability and ready availability of the product concerned
at a favorable product price, good distribution network at the concerned dealers.
The major findings of the report are that the general conversion rate of cold calls into
productive call ranges from 50% to 60% and the conversion rate of a direct enquiry received
by the company which is passed on to the dealer ranges between 60% to 70%. Customers
are taking more time to place an order due to the competition in market and the confusion
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prevailing in the minds of the customers either to opt for a GSM based service or CDMA
based operators of which pricing being the single largest factor.
This report gave me an insight into the market dynamics of the cellular industry. Especially
the players operating in the market and the nature of competition prevailing in the market.
The analysis ofmarket opportunities for cellular industry is of great importance where
marketing and distribution channel comes into the forefront. Marketing is a comprehensive
term; it concludes a group of basic activities in order to create and promote customers
demand and to direct the flow of services from the original producer to the final consumer in
the process of distribution
In the past, more emphasis was laid on production concept and easy availability of goods at
cheaper prices and no efforts were made to look into the needs and wants of the consumer,
this was where the use of Marketing concepts appeared which was then used as an
instrument to look into every matter beginning from the existing market to the satisfaction of
the consumers.
Now in buyers market, marketing is such an important and basic concept that now the
companies have it as a separate functional departments all together, where the whole
business is seen from the point of view of its final results because today market consists of
all potential customers sharing a particular need or want who might be willing and able to
engage in exchange to satisfy that need or want.
Marketing Management is to analyze the long run opportunities in the market for
improving its performance and also to get more new opportunities. A marketing opportunity is
an area of need in which a company can perform profitability. Opportunities can be
tested and classified according to their attractiveness and success probability. The
company's success probability depends on where its business strength lies as well as its key
success requirements for the target market so as to exceed those of its competitors. The
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best performing company will be the one that can generate greater value and sustain it
overtime.
With reference to the Indian population, rising literacy levels and knowledge the
deserving consumer has been found to prefer only the best available product in the market
and also that is wallet friendly. With liberalization the Indian Economy has thrown to foreign
investors since 1991
The market and the marketing concepts in India today are going through a great
change and competition. With the opening up of the Indian Economy to the western and
multinational companies, it has led to rapid westernization of the Indian Consumer and due
to this many competitors are offering the same product and service at competitive prices.
The market and the marketing concepts in India today are going through a great
change and competition. With the opening up of the Indian Economy to the western and
multinational companies, it has led to rapid westernization of the Indian Consumer and due
to this many competitors are offering the same product and service at competitive prices.
The consumers in recent days have become more conscious about their needs and
wants and they expect the very best product for their hard earned money. The companies
thus must enter into the consumer market with strategic marketing to win the hearts and
minds of the consumer. In India with the rise in purchasing power of people at large, they
have a tendency to spend money on luxurious items, which are good in quality and are
reasonably priced.
Today a large number of companies are going into the number game where they are
concentrating on the volume of sales keeping in mind the price, quality, profits and the taste
and satisfaction of the consumer.
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People satisfy their needs and wants with product. Product is anything that can be
offered to a market for attention, acquisition, used as consumption that might satisfy needs
and wants. Smart marketers try to build up long term relationship with valued customers,
distributed, dealers and suppliers.
In this project we therefore take a look at the cellular industry which has become more
competitive in the past 2 years because of more purchasing power of the people, emergence
of a large middle and upper middle class people and also most importantly because of the
recent changes in the telecom policies and the recent recommendations of Telecom
Regulatory Authority of India which has made cellular connections feasible even to the
middle class customers.
COMPETITIVE ADVANTAGE
EFFICIENCY
A Company is a device for transforming inputs into outputs. Inputs are basic factors of
production such as labour, land, capital, management, technological know-how and so on.Outputs are the goods and services that a company produces. Efficiency is measured by the
cost of inputs required to produce a given output. The more efficient a company, the lower is
the cost of inputs required to produce the given output. Thus efficiency helps a company
attain a low-cost competitive advantage.
One of the keys for achieving high efficiency is to utilize inputs in the most productive
way possible. The most important component of efficiency for most companies is employee
productivity, which is usually measured by output per employee. Holding all else constant,
the company with the highest employee productivity in an industry will typically have the
lowest cost of production. In other words that company will have a cost-based competitive
advantage.
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QUALITY
Quality products are goods and services that are reliable in the sense that they do the job
they were designed for and do it well. The impact of high product quality on competitive
advantage is two fold:
Providing high quality products creates a brand name reputation for a companys product.
In turn, this enhanced reputation allows a company to charge a higher price for its
products.
Greater efficiency and hence lower unit cost brought about by higher product quality. The
major effect here is through the impact of quality on productivity. Higher product quality
means that less employee time is wasted making defective products or providing sub-
standard services and less time has to be spent fixing mistakes. This translates into
higher employee productivity and lower unit costs. Thus high product quality not only lets
a company charge higher prices for its products, it also lowers cost.
The importance of quality in building competitive advantage has increased
dramatically in recent years. Indeed, so crucial is the emphasis placed on quality by many
companies that achieving high product quality could no longer be viewed as just one way
of gaining a competitive advantage. In many industries it has become an absoluteimperative for survival.
INNOVATION:
Innovation can be defined as anything new or novel about the way a company
operates or the products it produces. Thus innovation includes advances in the kinds of
products, production processes, management systems, organizational structures and
strategies developed by a company
Innovation is perhaps the single most important building block of competitive advantage.
Competition can be viewed as a process driven by innovation. Although not all innovation
succeeds, those that do can be a major source of competitive advantage. The reason is that
by definition, successful innovation gives a company something unique something that its
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competitors lack (until they imitate the innovation). This uniqueness may allow a company to
differentiate itself from its rivals and charge a premium price for its product. Alternatively it
may allow a company to reduce its unit costs far below those of competitors
CUSTOMER RESPONSIVENESS:
To achieve customer responsiveness, a company must give its customers exactly
what they want when they want it. Consequently, a firm must do everything possible to
identify customer needs and to satisfy them. Among other things, achieving superior
customer responsiveness involves giving customers value for money. In addition satisfying
customer needs may require the development of new products with features that existing
products lack.
Another factor that stands out in any discussion of customer responsiveness is the
need to customize goods & services to the unique demand of the customers.
Besides quality, customization, & response time, other sources of enhanced customer
responsiveness are superior design, superior service & superior after sales service &
support. All these factors enhance customer responsiveness & allow a Company to
differentiate itself from its less responsive competitors. In turn, differentiation enables a
Company to build brand loyalty and to charge a premium price for its products.
RESOURCES AND CAPABILITIES:
The distinctive competencies of an organization arise from two complementary sources:
Resources
Capabilities
Resources refer to the financial, physical, human, technological and organizational
resources of the Company. These can be divided into tangible resources (land, building,
plant and equipment) and intangible resources (brand names, reputation, patents and
technological or marketing know-how). To give rise to distinctive competency the Companys
resources must be both unique and valuable. A unique resource is one that no other
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Company has. A resource is valuable if it is in some way helps create strong demand for the
Companys product.
Capabilities refer to a Companys skills at co-coordinating its resources and putting them to
productive use. These skills reside in an organizations routine, that is, in the way a Company
makes decisions and manages its internal processes in order to achieve organizational
objectives. These specify how and where decisions are made within a Company, the kind of
behaviors the Company rewards, and the Companys cultural norms and values. It is
important to keep in mind that capabilities are, by definition, intangible. They reside not so
much in individuals as in the way individuals interact, cooperate, and make decisions within
the context of an organization.
A Company may have unique and valuable resources, but unless it has the
capabilities to use those resources effectively it may not be able to create or sustain
distinctive competency.
It is important to recognize that a Company may not need unique and valuable
resources to establish a distinctive competency so long as it has capabilities that no
competitor possesses.
STRATEGY AND COMPETITIVE ADVANTAGE:
A company needs to pursue strategies that build on its existing resources and
capabilities (its competencies), as well as strategies that build additional resources and
capabilities and thus enhance the companys long-run competitive position.
BARRIERS TO IMITATION
Barriers to imitation are factors that make it difficult for a competitor to copy a
companys distinctive competencies. Since distinctive competencies allow companies to earn
superior profits, competitors want to imitate them. However, the greater the barriers to such
imitation, the more sustainable are a companys competitive advantage. It is important to
note at the outset that a competitor can imitate ultimately almost any distinctive competency.
The critical issue time. The longer it takes competitors to imitate a distinctive competency,
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the greater the opportunity that the company has to build a strong marker position and
reputation with consumers, which is then difficult for competitors to attack. Moreover, the
longer it takes to achieve an imitation, the greater is the opportunity for the imitated company
to improve on its competency, or build other competencies, thereby staying one step ahead
of the competition.
Imitating Resources The easiest distinctive competencies for prospective rivals to imitate
tend to be those based on possession of unique and valuable tangible resources, such as
buildings, plant and equipment. Such resources are visible to competitors and can often be
purchased on the open market.
Intangible resources can be more difficult to imitate. This is particularly true of brand
names. Brand names are important because they symbolize a companys reputation.
Customers will often display a preference for the products of such companies because the
brand name is an important guarantee of high quality. Although competitors might like to
imitate well-established brand names, the law prohibits them from doing so.
Marketing and technological know-how are also important intangible resources. Unlike
brand names, however, company-specific marketing and technological know-how can be
relatively easy to imitate. In the case of marketing may facilitate the general dissemination of
know-how. More generally, successful marketing strategies are relatively easy to imitate
because they are so visible to competitors.
With regard to technological know-how, in theory, the patent system should make
technological know-how relatively immune to imitation. Patents give the inventor of a new
product a seventeen-year exclusive production agreement. In general, distinctive
competencies based on technological know-how can be relatively short-lived.
Imitating capabilities: Imitating a companys capabilities tends to be more difficult than
imitating its tangible and intangible resources, chiefly because a companys capabilities are
often invisible to outsiders. Since capabilities are based on the way in which decisions are
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made and processes managed deep within a company, by definition, it is hard for outsiders
to discern the nature of a companys internal operations.
The visible nature of capabilities would not be enough to halt imitation. However, a
companys capabilities rarely reside in a single individual. Rather, they are the product ofhow numerous individuals interact within a unique organizational setting. It is possible that no
one individual within a company may be familiar with totality of a companys internal
operations routines and procedures.
To summarize, since resources are easier to imitate than capabilities, a distinctive
competency based on a companys unique capabilities is probably more durable than one
based on its resources. It is likely to form the foundation for a long-run competitive
advantage.
CAPABILITY OF COMPETITORS
By strategic commitment, it means a companys commitment to a particular way of
doing business that is, to developing a particular set of resources and capabilities. When
competitors already have long-established commitments to a particular way of do9ing
business, they may be slow to imitate an innovating companys competitive advantage. Its
competitive advantage will thus be relatively durable.
INDUSTRY DYNAMISM:
A dynamic industry environment is one that is changing rapidly. What needs noting is
that the most dynamic industries tend to be those with a very high rate of product innovation.
In dynamic industries, the rapid rate of innovation means that product life cycles are
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shortening and that competitive advantage can be very transitory. A company that has a
competitive advantage may find its market position outflanked by a rivals innovation.
RESEARCH DESIGN
2.1 STATEMENT OF THE PROBLEM:
The main purpose of this study is to analyze as to why some dealers in the cellular
industry are not doing as well compared to other dealers who are performing extremely well
when all of them are selling similar products and services at similar prices and similar market
conditions with very few or no differentiation of the product or service at all
This problem is analyzed by gaining some very intricate information through various
dealers of various operators like Airtel, Spice, Hutch and BSNL
2.2 SCOPE OF THE STUDY:
The study is exclusively conducted on the cellular industry operating on the GSM
platform. To analyze the operations of its various dealers and to get an insight to the various
factors that help a dealer gain a competitive edge over that of its rivals. The study was
carried for the dealers located with in Bangalore City only, for a period of 3 weeks. As both
personal and organizational customers use the product, their needs, preference, usage,
habits, post purchase action vary widely which in turn gave a wide and large scope for
analysis.
2.3 NEED FOR THE STUDY:
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The need of the study is to find out the existing market opportunities in today's highly
competitive consumer market for cellular services. This study apart from market opportunities
also includes a study on the profile of the various organization, where topics such as origin of
the organizations, future prospects of the organizations, functional departments of the
organizations, capability and organizations structure is covered
2.4 OBJECTIVES OF THE STUDY:
The main objectives of the study cannot be minimized to one or two points because
one point leaves one with another question to be answered. The main objectives are as
listed as follows:
1. The study helps to appreciate the factors leading to customer satisfaction.
2. The study helps to understand how to gain a competitive edge over other players in the
market.3. To understand various factors that play a major role in marketing GSM based cellular
services
4. To find out the effectiveness of customer support provided by the organizations.
5. To find out the dealers satisfaction with their parent company.
2.5 REVIEW OF LITERATURE:
Available literature relating to the problem must be reviewed before definitions of the
research problem are given.
A detailed review is necessary of existing and available literature that has already
been published in some form or other. This is done to find out what data and other material if
any is available for operational purposes. Any published articles that relate to the topic of
study also give an accurate direction to the study. It can also help in overcoming analytical
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shortcomings. The researcher has taken material from the following material published and
the concepts defined are as per the material that was available.
Company manuals and other Annual Reports, Pamphlets and Brochures
Information from websites
www.airtelworld.com
www.spicetele.com
www.hutch.co.in
www.bsnl.co.in
2.6 RESEARCH DESIGN:
A central part of the research design is to develop an effective research strategy of the
design. A research design is a logical and systematic plan prepared for directing a research
study. It specifies the objectives of the study, the methodology of the study, techniques to be
adapted for achieving the objectives. It constituted the blue print for the collection
measurement and analysis of data.
Research designs can be classified in various ways.
EXPLORATORY DESIGNS:
Exploratory designs are concerned with identifying the real nature of research
problems and perhaps of formulating relevant hypothesis for later test. Exploratory design isnecessary as it gives valuable insight, results in a firm grape of the essential character and
purpose of specific research surveys and encourages the development of creative alternative
research strategies.
DESCRIPTIVE STUDIES
Descriptive studies start from substantial prior knowledge of marketing variables for
this type of research to be productive, questions should be designed to secure specific kinds
of information related, perhaps, to product performance, market share, competitive strategies
distribution etc.
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2.7 SAMPLE DESIGN:
A sample design is a total structure and plan of the sampling exercise. It will have
details of the sampling techniques used, the size of the sample, the type of the sample and
any other relevant details.
2.7.2 SAMPLE SIZE:
The sample size chosen was 30 main dealers of the four cellular service providers i.e.,
Airtel, Spice, Hutch, BSNL within Bangalore city.
2.7.3 SAMPLING TECHNIQUE ADOPTED
Convenience sampling: In this method of sampling selection, the sampler chooses
the sampling units on the basis of "convenience" or "accessibility". This type of sampling is
most recommended with exploratory research designs when all that is needed is an
approximation of the desired phenomena, and there is the constraint of obtaining this
approximate quickly and inexpensively.
2.8 SOURCES OF DATA:
Data collection is the most important step in the research work. The researcher has to
look for source of data, which can be collected and analyzed to achieve results as per the set
of objectives. In this study primary as well as secondary data is being used.
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Primary data is mainly collected through the use of Questionnaires and also through
personal interviews. Secondary data has been procured from reference books and
information available on the website and other studies conducted on related topics. All these
have been used to provide a valuable and vital input to the study and also give authenticity to
the findings.
2.8.1 SECONDARY METHOD
Secondary data is a data, which is available from the post studies and records. The
secondary data is collected from the respective service providers , from their manuals,
website of the same organizations, from magazines and journals. It is more advantageous in
that it is cheaper and more readily available than primary data. But it has certain
disadvantages that it may be outdated and not collected for the purpose at hand.
Data Collection Instruments: For collecting good information, the researcher should use
effective data collection instruments. The data collection instrument used in the study is the
questionnaire. The questionnaires are distributed directly to the respondents by the
researcher. As far as possible the researcher has tried to see that the answers were given
immediately on order to minimize the influence of any third party opinions. The questions
asked are both open-ended as well closed questions.
2.8.2 PRIMARY DATA:
The research work is mainly dependent on primary data. It involves data, which has
been directly obtained form the respondents through the Questionnaires as well as opinions
expressed by the respondents. This is up to date data as the analysis is done immediately
after obtaining the data through the two methods. Two methods used for collecting primary
data are:
Personal interview method
It has been helpful in that the researcher has been able to clarify any doubts and
misunderstanding that the respondent may have had. However there has also been a
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serious drawback in that there is the likelihood of bias in answers from the obtrusion of the
interviewer.
Survey method
In this case self-administered responses of the normal question and answer method
were handed out to respondents where they met. Clear instructions were given along with
questionnaires.
2.9 FIELD WORK:
The study involved a field work where the respondents are contacted individually and
are persuaded to answer questions through questionnaire and also a few direct questions,
which lasted from any where between 10 minutes to more than one hour depending upon theperson and the situation. As far as possible the respondents are encouraged to fill up the
questionnaire in front of the researcher so that any third party influence could be avoided.
The respondents are directly contacted in their offices with prior appointment. The fieldwork
helped immensely in giving accurate information and first hand views regarding the opinions
of the respondents. Overall the fieldwork provided critical and vital information such as
knowledge, intentions, activities, and opinions and so forth of the respondents regarding the
problem under investigation.
2.11 LIMITATIONS OF THE STUDY:
The study for the research work is conducted in Amritsar City and there are certain
limitations in carrying on the study. Some of the limitations are as follows.
1. The survey is limited to areas in and around Amritsar City only.
2. In view of parity of time and resources, the study is limited to in and around Amritsar city
only.
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3.1 PROFILE OF THE INDUSTRY:
History of Cellular Telephony in India
Cellular Telephony
The technology that gives a person the power to communicate anytime,
anywhere - has spawned an entire industry in mobile telecommunication. Mobile
telephones have become an integral part of the growth, success and efficiency of
any business / economy. The most prevalent wireless standard in the world today,
is GSM. The GSM Association (Global System for Mobile Communications) was
instituted in 1987 to promote and expedite the adoption, development and
deployment and evolution of the GSM standard for digital wireless
communications.
The GSM Association was formed as a result of a European Community agreement
on the need to adopt common standards suitable for cross border European mobile
communications. Starting off primarily as a European standard, the Groupe Speciale Mobile
as it was then called, soon came to represent the Global System for Mobile Communications
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as it achieved the status of a world-wide standard. GSM is today, the world's leading digital
standard accounting for 68.5% of the global digital wireless market.
The Indian Government when considering the introduction of cellular services into the
country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent
technologies / standards.
Although cellular licenses were made technology neutral in September 1999, all the
private operators are presently offering only GSM based mobile services. The new licensees
for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM
technology to offer their services.
Cellular Industry in India
The Government of India recognizes that the provision of a world-class
telecommunications infrastructure and information is the key to rapid economic and social
development of the country. It is critical not only for the development of the Information
Technology industry, but also has widespread ramifications on the entire economy of the
country. It is also anticipated that going forward, a major part of the GDP of the country would
be contributed by this sector. Accordingly, it is of vital importance to the country that there be
a comprehensive and forward looking telecommunications policy which creates an enablingframework for development of this industry.
New Telecom Policy 1999
Telecommunications is now universally recognized as one of the prime movers of the
modern economy; hence it's vital importance for a developing country like India. The
availability of adequate infrastructure facilities is critical for acceleration of the economic
development of any country. In fact international studies have established that for every 1%
increase in tele-density, there is a 3% increase in the growth of GDP.
Accordingly, the Government of India has accorded the highest priority to investment
and development of the telecommunications sector.
Telecom requires very heavy investment and it was not possible for the Indian
Government to organize public funding of this sector on such a massive scale. In fact the
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national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the
telecom targets of the eighth five-year plan of the Government of India (1992-97).
It was for this reason to bridge the resource gap between government funding and the
total projected funds requirement and to provide the additional resources to achieve the
nation's telecom targets that the telecommunications sector was liberalized in 1992 and the
Government invited private sector participation in telecommunications.
Cellular mobile services were one of the first areas to be opened up to private competition.
The whole country was divided into the 4 metropolitan cities of and 19 telecom circles,
which were roughly analogous with the States of India.
Cellular Licenses were awarded to the private sector - first in the metropolitan cities of
Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995.
The first metro cellular network started operating in August 1995 in Calcutta.
3.2 PROFILE OF THE ORAGANISATIONS:
Spice Communications Limited
Address:Hemkunt Towers, 98,
Nehru Place, New Delhi-110019
INDIA
Service Area:
Brand Name:
Website:
Karnataka, Punjab
Spice
www.spicetele.com
Spice Communications Limited is presently operating Cellular Phone Services in
the states of Punjab and Karnataka.
Promoters
Spice Communications is a 51:49 joint venture between Spicecorp (India)- the flagship
company of Dr. B.K. Modi group that first introduced India to mobile phone services
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and has interests in the field of telecommunications, office automation and information
technology and DISTACOM (Hong Kong)-a company with over 20 years of experience
in mobile communication which was responsible for bringing mobile telephony to Hong
Kong along with Hutchison Telecom.
Foreign Partners
The Foreign partners for Spice Communications Karnataka are Distyacom, AIG and
Prudential.
Infrastructure Vendors
The infrastructure vendors are Siemens and Motorola.
Launch of Service
Launched over four years ago under the memorable brand name of "Spice", the
Company offers cellular services in Punjab and Karnataka. Spice Karnataka launched
its services in April 1997.
Pre-paid Service
The pre-paid service in Karnataka operates under the brand name "Simple"
Bharti Mobile Limited
Address:
47, Millers Tank Bund Road
Bangalore 560052
INDIA
Phone:
Fax:
Contact:
Service Area:
Brand Name:
Website:
+ 91 80 228 2211
+ 91 80 228 2200
Mr. Jagdish Kini
AP, Karnataka, Punjab
AirTel
www.airtelworld.comBharti Mobile Limited offers services in Andhra Pradesh, Karnataka and Punjab
under the brand name "Airtel"
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Promoters:
Bharti Mobile Limited, a joint venture of Bharti Enterprises and Telia.
Technology Partners:
AirTel comes to you from Bharti Mobile Ltd. A consortium of giants in the
telecommunication business - British Telecom UK, Tecc3300 Italy, and Bharti
Enterprises India.
The Bharti Enterprises, established in 1976, is today a multifaceted organization and a
leading group involved in the manufacturing and the services sector. its key focus is
on the marketing and operations of a comprehensive range of telecom services in
addition to the Healthcare sector.
Launch of Services:
Karnataka: AirTel launched it's services in Karnataka on May 13,2000. The services in
Punjab started in February 2002.
AirTel is brought by Bharti Enterprises, India's leading telecom conglomerate, through
its company, Bharti Mobile Limited. Bharti Enterprises has revolutionized Indian
telecommunications with its world-class products and services.
Pre-paid Card:
The pre-paid card "Magic" is a nation wide brand.
Management Structure
The group has been structured to create functional and operational specialization with
a linear vision of business lines and functional areas.
The Company is headed by Chairman and Group Managing Director- Sunil Bharti
Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and Rajan Bharti
Mittal. The Company also has two Presidents- President Mobile Services and
President Infotel Services, this responsibility includes Fixed-line, Long Distance and
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Broadband Services. The Presidents report to the Group Chairman and Managing
Director. The head of units and SBUs report to the respective business's President.
An apex team of Corporate Directors has been constituted. The corporate directors
have supervisory and strategic responsibilities for functional areas across business
lines. The directors oversee functional areas including Business Development, Human
Resources, Marketing, Corporate Communication, IT & Technology, Finance, Legal,
Corporate Affairs, Corporate Strategy & Planning and Supervisory Director cum Chief
Mentor - mobility.
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Bharat Sanchar Nigam Limited
BSNL's mobile service has been launched in Karnataka by Chief Minister Sri S
M Krishna on 21st October. Cellone is the brand name for BSNL's mobile service and
Excel is the Brand name for pre-paid mobile card offered by us. Excellent Cellular
Communication by way of reliable services using our backbone network is our goal to
achieve the number 1 position in Cellular Communication. Our aim is to build the
Nation by way of providing a reliable communication network across the country so as
to ensure an overall Growth of India.
"Service is our Motto"
Salient Features Offered
1. Prepaid services
2. Postpaid services
3. Supplementary services
Call waiting or Call Alert.This facility alerts you to an incoming call while you are already engaged in a
conversation. You may either discontinue the first call and take the waiting one or put
the first call on hold or take the second one.
Call Hold
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An outgoing call presently engaged can be put-on hold status while another fresh call
can be initiated .You may switch over between the two calls alternatively.
Call Diversion or Call Forwarding:
You may divert all the incoming calls to your mobile number to another mobile number
or a PSTN number. This is called call Diversion un-conditionally. As an alternate you
may divert all incoming calls to your Voice Mail Box by programming the destination
as 17000. Also call diversion can be achieved when the number is either busy or no-
answer or when you are out of reach.
Calling Line Identification
The identification of the calling number (CLIP) is presented on your telephone to
enable you to recall at a later time, besides knowing your Caller
Calling Line Identification Restriction (CLIR)
If you do not want your number to be presented to the called party always, then the
same can be activated upon request.
Barring Outgoing Calls
All out going calls or outgoing International Calls can be barred at the request.
Besides if inter circle calls (Outside Karnataka) need to be barred, this also can be
done at your request. (STD/ISD- facility)
All these services need to be activated by the Service Providers. Besides selective
activation at the Customer, Mobile Handset is also needed to support these services.
Unified Messaging System (UMS)
The objective of UMS is to allow subscribers to send, retrieve & manage messages in
a uniform way, regardless of whether the message is a Voice Mail, a Fax Mail or an e-
mail. Each UMS -subscriber is assigned a unified message mail box number, which is
usually the mobile number itself and e-mail address.
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UMS mailbox can be accessed either by invoking call-forwarding feature or by directly
dialing Unified Message Mail Box Number. It shall also be accessed from web-
browsers, a standard e-mail clients and WAP- terminals.
Features:
1. Call answering
2. FAX answering
3. Message Deposit Services
4. Message Retrieval Services
5. Message Delivery Services
6. Call Return
7. Message Management (New/Listened Message, Urgent delivery, Replay etc.)
8. Mail Box Management (Tutorial, system generated or customized greeting,
password, user language etc)
E-mail:
Your e-mail account will be @bsnlums.com. From any account like
Yahoo, Hotmail, rediffmail etc you can receive mail to above account from any Internet
connected Desktop Besides through a WAP enabled phone you can log-in to
www.bsnlums.com and compose mail and send to any e-mail destination address
including UMS e-mail address. Also one can view body , Header of e-mail using WAP
phone on e-mail Inbox. By dialing your voice mailbox, you can hear the e-mail to
speech conversion of the e-mail messages on your e-mail account.
A salient feature is that all mails coming to other accounts can be seen from one
account only i.e. bsnlums.com
Short Message Services (SMS)A service widely offered by us at an competitive rate.
WAP services (Wireless application protocol)
Free roaming within Karnataka & National roaming.
Call Conferencing.m. Multi-Mobile number.n.
Regional / National roaming.o.
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Itemized Billing / Detailed billing.
Mobile Hunting.
Supplementary services activated for Prepaid Excel cards.1. CLIP (Calling Line Identification Presentation)
2. Call waiting
3. Call Hold
4. Call forwarding -Unconditional / Busy / No reply / Out of reach
5. Multiparty Conferencing
6. STD & ISD
7. Unlimited SMS & E-Mail
8. Voice Mail
9. Call barring (Out going & In coming)
Supplementary services activated upon request by Subscriber.
1. Call waiting
2. Call forward - Unconditional / Busy / No reply/Out of reach
3. CLIP
4. CLIR ( Calling line identification restriction ) on request.
5. Call barring ( Outgoing & incoming )
6. Detailed billing-on request.
7. STD / ISD
8. Call Hold
9. Voice Mail
10. UMS(Unified messaging system) comprising voicemail, email & FAX mail.
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3.3 PROFILE OF THE SAMPLE UNIT:
The research is an effort to study the factors that enhance a dealer to gain a competitive
advantage over other dealers in cellular industry in Bangalore city" A survey of 30 dealers is
conducted in general to derive at the conclusion. The channel partners of Airtel, Spice
Telecom, Hutch were interviewed in most of the cases since they had in depth knowledge
both with respect to the consumers as well as the parent company. In few cases, where the
channel partners were not actively involved managers of the showrooms were interviewed.
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4.1 INTRODUCION TO ANALYSIS:
CLASSIFICATION AND TABULATION OF DATA
Once the data has been collected, the process of analysis begins. Almost invariably the
data must be first translated into a form appropriate for analysis. This chapter
concerns the process of taking completed questionnaires and preparing them for analysis.
The research steps following the gathering of data related to this process of data preparation
is presented below.
Validate data
Edit acceptable Questionnaire
Code the Questionnaire
Key punch the data
Clean the data set
Store the data set for analysis
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Analyze the data
The conclusions about these preparatory steps are based on assumptions involving general
logic about the interpretative process and about the supposed nature of the data relative to
the appropriate analysis. The transformation of raw data into useful information requires that
the data be validated, edited, coded, so that it can be stored for further analysis. The
classified data are then analyzed using statistical tools. The data has first been shown in a
tabular form and a brief explanation is given following that. Each table is followed by graphs,
which provides for easy visual interpretation of the data.
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4.2 DATA ANALYSIS AND TOOLS
Location of dealer offices in Amritsar city.
Table-4.2.1
Location Respondents Percentage
(%)North 12 40
East 3 10
West 3 10
South 12 40
Total 30 100
Source: Survey Data
Inference : In the above table it has been observed that 40% of the dealers are located in
the Northern part of Amritsar, 10% are located in the Eastern part of Amritsar, 10% are
located in the Western part of Amritsar, and the remaining 40% are located in the Southern
part of Amritsar.
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Location of dealer offices in Amritsar city.
Graph-4.2.1
40
10 10
40
0
5
10
15
20
25
30
35
40
45
North East West South
Directions
Percentag
e(%
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Duration for which the dealers have been in cellular market
Table-4.2.2
Duration Respondents Percentage
(%)
Less than one year 8 27
1-3 years 10 33
3-6 years 6 20
More than six
years
6 20
Total 30 100
Source: Survey Data
Inference : In the above table it has been observed that 27% of the dealers
have been in the market for less than a year , 33% of the dealers between 1 to 3
years, 20% between 3 to 6 years and 20% of the dealers have been in the
market for more than 6 years.
Duration for which the dealers have been in cellular market
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Graph-4.2.2
The average number of sales calls made per week per person.
27
20
33
20
0
5
10
15
20
25
30
35
Less than 1 year 1-3 years 3-6 years More than 6
years
No. of years
Perce
ntage(%
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Table-4.2.3
No. of sales
calls
Respondents Percentage
(%)
5-10 12 4010-20 10 33
20-30 4 13.5
30 and above 4 13.5Total 20 100
Source: Survey Data
Inference : In the above graph it has been seen 40% of dealers have their
sales persons making 5 to 10 sales calls per week per person, 33% of dealers
have their sales persons making 10 to 20 sales calls per week per person, 13.5%
of dealers have their sales persons making 20 to 30 sales calls per week per
person and the remaining 13.5% of dealers have their sales persons making
more than 30 sales calls per week per person.
The average number of sales calls made per week per person.
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Graph-4.2.3
The average number of productive sales calls made per week per
person
13.513.5
33
40
0
5
10
15
20
25
30
35
40
45
5-10 calls 10-20 calls 20-30 calls 30 and above
No. of calls
P
ercentage(%
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Table-4.2.4
No. of
productive
calls
Respondents Percentage
(%)
1-5 12 40
5-10 10 33
10-20 6 20
20 and above 2 7
Total 30 100
Source: Survey Data
Inference : In the above table it has been seen 40% of dealers have their sales
persons making 1 to 5 productive sales calls per week per person, 33% of
dealers have their sales persons making 5 to 10 productive sales calls per week
per person, 20% of their dealers have their sales persons making 10 to 20
productive sales calls per week per person and the remaining 7% of dealers
have their sales persons making more than 20 productive sales calls per person.
The average number of productive sales calls made per week per person
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Graph-4.2.4
33
40
7
20
0
5
10
15
20
25
30
35
4045
1-5 calls 5-10 calls 10-20 calls 20 and
above
No. of calls
Perc
entage(%)
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The average number of visits by a sales person to a potential customer
to close an order as a result of increase in competition.
Table-4.2.5
No. of visits to close an
order
Respondents Percentage
(%)
One time 0 0
2-4 times 22 734-8 times 6 20
More than 8 times 2 7Total 30 100
Source: Survey Data
Inference : From the above table 73% of the dealers have their sales personnel
making 2 to 4 visits to a potential customer to close an order, another 20% of the
dealers have their sales personnel making 4 to 8 visits to a potential customer
and the remaining 7% of the dealers have their sales person making more than 8
visits to close an order.
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The average number of visits by a sales person to a potential customer
to close an order as a result of increase in competition.
Graph-4.2.5
07
20
73
0
10
20
30
40
50
60
70
80
One time 2-4 times 4-8 times More than
8 times
No. of times
Percentage(%
)
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Frequency of review meeting regarding sales and collection with the
parent company
Table-4.2.6
Frequency Respondents Percentage
(%)
Daily once 6 20
Monthly 6 20
Weekly once 3 10
Fortnightly 2 7
Quarterly 13 43
Total 30 100
Source: Survey Data
Inference : From the above table it is seen that 20% of the dealers have their
review meeting once in a day, another 20% of the people have their review
meeting once in a month, about 10% of the dealers have their review meeting
every week 7% 0f the dealers have their review meeting every fortnight and the
remaining 43% of the dealers have their review meeting quarterly.
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The average number of visits by a sales person to a potential customer
to close an order as a result of increase in competition.
Graph-4.2.6
10
7
43
2020
0
5
10
15
20
25
30
35
40
45
50
Daily once Monthly Weekly Fortnightly Quarterly
Frequency of meetings
Percentage(%
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Feedback about the nature of complaints received from the customers
to the dealers.
Table-4.2.7
Nature of
complaint
Respondents Percentage
(%)
Poor network 6 20
Late bill 6 20
Value additions 3 10Bill
discrepancies
15 50
Total 30 100
Source: Survey Data
Inference : As seen from the above table ,20% of the customers have
complaints about poor network, 6% of the customers have complaints about late
bill ,10% about value additions and a majority of 50% of the customers have
complaints with respect to the discrepancies found in their monthly bills.
Feedback about the nature of complaints received from the customers
to the dealers.
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Graph-4.2.7
Feedback about the nature of complaints to the parent company
10
50
2020
0
10
20
30
40
50
60
Poor
netwo
rk
latebi
ll
valu
ead
ditions
BillDiscrep
ancies
Nature of complaints
Percent
age(%
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Table 4.2.8
Feedback of
dealers to the
company
Respondents Percentage
(%)
Yes 30 100
No 0 0
Total 30 100
Source: Survey Data
INFERENCE:
As seen from the above table all the dealers do give feedback about the
nature of complaints from the customers to the their respective parent
companies on a regular basis.
Feedback about the nature of complaints to the parent company
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Graph-4.2.8
Response of the dealers as to whether the parent company takes the
complaints into consideration to improve the quality of the product
30
0
5
10
15
20
25
30
35
Yes No
Feedback about complaints
Percentage(%)
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Table-4.2.9
Response of
company to
complaints
Respondents Percentage
(%)
Yes 24 80
No 06 20Total 30 100
Source: Survey Data
Inference : From the above table it is seen that about 80% of the dealers feel
that that the company takes the complaints into consideration to improve the
quality of the product and the remaining 20% of the dealers do not feel that the
company takes the complaints into consideration to improve the quality of the
service.
Response of the dealers as to whether the parent company takes the
complaints into consideration to improve the quality of the product
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Graph-4.2.9
Growth rate of the dealers in terms of quantity sold in the last one year
Table-4.2.10
20
80
0
10
20
30
40
50
60
70
80
90
Yes No
Percentage(%
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Growth rate Respondents Percentage
(%)
-20 to 0% 0 0No Change 1 3
0 to 10% 7 24
10% to 20% 10 33
More than 20% 12 40
Total 30 100
Source: Survey Data
Inference : From the above chart none of the dealers contacted had a negative
growth rate, 3% had no changes in their growth rare ,24% of the dealers had a
growth rate between 0 to 10%, about 33% of the dealers had a growth rate
between 10% to 20% and the remaining 40% had a growth rate more than 20%.
Growth rate of the dealers in terms of quantity sold in the last one year
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Graph-4.2.10
Intentions of the dealers to shift to other goods for agency in future
(other than cellular service)
3
40
33
24
0
0
5
10
15
20
25
30
35
40
45
,-20 to 0% No Change 0 to 10% 10 to 20% More than
20%
Percentage change in Quantity
Percentage(%)
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Table-4.2.11
Intentions to
shift
Respondents Percentage
(%)
Yes 6 20
No 24 80Total 30 100
Source: Survey Data
Inference : From the above table we can see that on 20% of the dealers have
the intentions to shift to any other product or service for agency in future .The
other 80% of the respondents have no intentions to shift
Intentions of the dealers to shift to other goods for agency in future (other
than cellular service)
Graph-4.2.11
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Awareness of the dealers about their competitors sales network
Table-4.2.12
Awareness Respondents Percentage
(%)
Good 12 40
Average 18 60
80
20
0
10
20
30
40
50
60
70
80
90
Yes No
Percentage(%
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Nil 0 0Total 30 100
Source: Survey Data
Inference : From the above table it is seen that 40% of the dealers believe that
they have a good awareness about their competitors sales network and the
remaining 60% of the dealers believe that their awareness about their
competitors sales network is average.
Awareness of the dealers about their competitors sales network
Graph-4.2.12
0
60
40
0
10
20
30
40
50
60
70
Good Average Nil
Percentage(%)
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Response of the dealers as to whether their sales force is stronger than
their competitors sales force
Table-4.2.13
Stronger sales
force than the
competitors
Respondents Percentage
(%)
Yes 18 60
No 12 40Total 30 100
Source: Survey Data
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Inference : From the above table 60% of the dealers feel that their sales force
is stronger than their competitors while the remaining 40% of the dealers feel that
their sales force is not as strong as their competitors.
Response of the dealers as to whether their sales force is stronger than
their competitors sales force
Graph-4.2.13
30
70
0
1020
30
40
50
60
70
80
Yes No
Percentage
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Effect of time-factor pricing on the sales of cellular services
Table-4.2.14
Effect of time
factor pricing
Respondent
s
Percentage (%)
Increase in sales 15 50
No Change 4 13
Decrease in sales 0 0
Initially increases
and then decreases
11 27
Total 30 100
Source: Personal Survey
Inference : From the above graph it is seen that 50% of the dealers feel that
there is an increase in sales, about 13% of the dealers feel that there is no
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change in sales and the remaining 27% of the dealers feel that the sales initially
increases and then decreases
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Effect of time-factor pricing on the sales of cellular services
Graph-4.2.14
- 65 -
0
27
13
50
0
10
20
30
40
50
60
Incerase in
sales
Decrease in
sales
No Change Initially
increases and
then decreases
Percentage(%
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5.1 SUMMARY OF FINDINGS:
The focus of the project was to study the various factors that enhance a
cellular service dealer to gain a competitive advantage over competitor's dealer
in Bangalore City. The various factors that can have an effect are listed below.
Brand Image
Pricing policy
Promotional policy
Sales force motivation levels/ Incentives
After sales service
Dealers investment/Infrastructure
Number of dealers
Delivery times
According to the survey the experience of the respondents in the industry
varied from a short period of less than a year to more than six years and the
people who managed these dealers were with immense cellular service
background.
Most of them believed that a highly motivated sales force along with good
after sales service was very important to generate new business and retain them.
It was also found during the study that the general conversion rate of cold
calls into productive call range from 50% to 60% and the conversion rate of a
direct enquiry received by the company which is passed on to the dealer range
between 60% to 70%.
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Another important finding was, as to why customers are taking more time to
place an order is because of competition in market , confusion prevailing in the
minds of the customers either to opt for a GSM based service or CDMA based
operators of which pricing being the single largest factor.
Most of the dealers had a average awareness about their competitors sales
network and felt that their sales force was stronger than their competitors
because of their technical competence, good marketing skills and good training
imparted to their sales force.
Another important finding was that the top three companies for post paid
cellular service were
1. Airtel
2. BSNL
3. Hutch
The top three companies in the market for prepaid services were
1. Airtel Magic
2. Spice Simple
3. Hutch
The study also revealed that most of the companies/dealer undertake ,
Customers meet ,road shows ,paper inserts etc on a regular basis.
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5.1 RECOMMENDATIONS;
The factors that are responsible for a dealer to gain a competitive edge
over their rivals are is quite simple and straight foreword as described below.
If a dealer is associated with an organization, which already has, a good
brand image in the market, there is no shortage of direct enquiries received by
the company or the dealers. But having received an enquiry and to convert it into
business is the main task here.
In this busy world the customers or potential customers have very little
time to decide on products. They expect that the company/dealer who
approaches them are trustworthy and provide good value for their money. It is
here that the human relationship or human skills come into play. Once a
company or its sales person enjoys a good rapport with his customers then he is
more likely to pick the order. Once this trust is gained the customer would be
more comfortable to deal with that particular individual than any other individual
of the company/dealer as such.
Efficient service and proper pricing are also very important in this industry.
The trust gained by an individual from his customer can be retained by efficient
and reliable service. Thus the service department of the company also plays an
important role in this regard. When we talk about human skills, then in this
context we mean that the customer is more comfortable with a particular
individual of the company/dealer and would always approach him for his
services.
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Since the customer is more comfortable with a particular individual of a company,
there is a negative aspect to this i.e., what happens if the individual leaves the
company and goes over to a competitor, then along with him goes the customer
also. Thus, it is very important for the dealer to retain their employees. In order to
over come such eventuality, the senior executives of the dealers also need to
maintain a good rapport with the customers.
Retention of performing employees is a major task of all organizations in
any industry. This can be done by employing good HR policies and treating the
employees as very much as a part of the organization providing them all benefits
so as to keep them motivated.
It is often said that 80% of your business always comes from 20% of your
existing clients. Thus the company-customer relationship is to be kept going on
for a long period of time.
As mentioned earlier that the factors responsible for a dealer to gain a
competitive edge over its rivals appears to be quite simple and straight foreword,
but it is not the case always.
This can happen only by recruiting and retaining the right persons for the right
job. In the cellular service industry, the sales force must be a good blend or
good combination of technical as well as human skills, which would be very
beneficial.
In a highly competitive market situation prevailing as of now , it becomes
very important for the organizations to provide with a proper after sale service
and appropriate customer support .
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It is also evident from the research that many customers have a complaint
with respect to the network coverage of the operators. Therefore enough support
needs to be provided by the parent organizations to the dealers by setting up
latest infrastructure and updating their technologies as and when needed which
increases the overall quality of the service which helps the dealer to have an
edge over the dealers of the competitive network.
It also becomes the responsibility of the organizations to satisfy the
current customers by keeping them updated with the normal changes in their rate
plans and also the kinds of services introduced by them from time to time. This is
because word of mouth communication by the existing customers plays a vital
role in influencing the purchasing decision of new customers. It was also found in
the research that any new offers introduced by the organizations are generally
available for the new customers only , which results in customer dissatisfaction,
therefore organizations need to spread the offers to the existing customers also
which would prevent them from switching to different operators.
More emphasis also needs to be given to promotions of their respective
organizations which would eventually help their dealers overall. Road shows in
different areas help the dealers of that particular area to gain a competitive edge
over their competitors.
With the current TRAI recommendations in place , it is not only necessary
to indulge in competitive pricing , but also enough thought needs to promote their
services by differentiating from that of the competitors which would help to
enhance the sales of the dealers.
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. QUESTIONNAIRE
Dear Sir/Madam
As a part of MBA curriculum I am doing a seminar titled -"To study the
factors that enhance a dealer to gain a competitive advantage over other dealers
in cellular industry". I request you to kindly co-operate in answering this
questionnaire honestly. The information will be kept confidential and used for
academic purpose only.
PART A
Name :Address :
Name of the parent company :
Airtel Spice Hutch BSNL
1. In which part of the Bangalore City is your office located?
North East West South
2. Since how long are you dealing in sim cards?
Less than one year 3-6 years
1-3 years more than six years
3. Number of Sales persons in your company?Less than five 5-10
10-20 20 and above
4. Were you a dealer of some other cellular company before?
Airtel Spice Hutch BSNL No
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PART B
5. Number of contacts (sales calls) made per week on an average per sales
person.
5-10 10-20 20-30 30 and above
6. Number of productive contacts made per week on an average (per
person).
1-5 5-10 10-20 20 and
above
7. Your first communication to a new consumer will be mainly
Through sales person visit Telephone Mail
References
8. The competition has increased several folds in the last year. Thus how
many visits on an average would your sales person requires to make to
complete a sale?
One time only 2-4 times 4-8 timesMore than 8 times
9. Compared to last year, why are customers taking more time to decide on
the service provider (Rank accordingly)
Financial constraints Competition in Market
Others(please specify)
10. What is the frequency of your review meeting regarding sales and
collection with the parent company?
Daily Weekly Fortnightly
Monthly Quarterly
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PART C
11. Your feedback to the Branch office is
Personally Telephone Reports (mailing)
12. The general nature of the complaint by the customer is regarding
Poor network Late bill Value additions Bill
discrepancies
13. Do you give feedback about the nature of complaints from the customers
to the branch office on a regular basis (monthly)?
Yes No
12. Do you feel that the company takes the complaints into consideration to
improve the quality of the service?
Yes No
13. How long it takes the company to attend a complaint of a customer ?
0-2 hrs 2-4 hrs 4-8 hrs More than eight
hours
16. What has been your growth rate in the last one year (% in Qty)?
-20 to 0% No change 0 to 10% 10 to 20%
More than 20%
17. Have you any intentions to shift to other industry or product for agency in
future? (Other than cellular industry)
Yes No
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If yes, please specify the industry or product______________
PART D
14. What is your awareness about your competitors sales network?
Good Average Nil
15. Do you feel your sales force is stronger than that of your competitors?
Yes No
If yes, How?
____________________________________________________
If No, why?
_____________________________________________________
16. How many times did the Company undertake the following promotional
activities? Customers meet
Road shows
Demos for specific target customers
Demos in apartments
Others(if any)
17. Who are the competitors you generally come across in the process ofsales? Rank them.
1.
2.
3.
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18. How has Time-Factor pricing affected you (compared to previous year)?
Increase in Sales (in %) No Change
Decrease in Sales (in %) Initially increases and then
decreases
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BIBLIOGRAPHY
Philip Kotler Marketing Management;
Tenth Edition.
David. S. Luck
Ronald. S. Robin Marketing Research;
Prentice Hall India;
Seventh Edition.
Harper. W. Boyd, Jr.
Ralph Westfall.
Stanley.F. Stasch Marketing Research (Text & Cases);
Richard. D. Irwin Inc, Home Wood,
Illinois; Seventh Edition.
Gilbert. A. Churchill, Jr.
Basic Marketing Research;
Drydess Press, Orlands, Florida
Charles. W. L. Hill
Gareth. R. Jones Strategic Management Theory
Houghton Mifflin ; Third Edition
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Valarie. A. Zeithaml
Mary Jo Bitner Services Marketing:
McGraw Hill International Editions
Information from website of the company and product brochures
www.airtelworld .com
www.hutch.co.in
www.spicetele.com
www.bsnl.co.in
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5.2 CONCLUSION
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