2010

VIVEK SHUKLA, RAHUL MAKHIJA,

AARTI SINGH

4/11/2010

Marketing Strategies And Services Of Mts Mobile India(Sstl)

CONTENT

OBJECTIVE ......................................................................................................................................... 5

METHODOLOGY ................................................................................................................................ 5

Primary data source ................................................................................................................5

Secondary data source ............................................................................................................5

VISION, MISION AND AMBITION ................................................................................................... 6

INTRODUCTION TO THE COMPANY ............................................................................................. 7

HISTORY ............................................................................................................................................... 8

SWOT ANALYSIS ................................................................................................................................ 9

Strengths of the company .......................................................................................................9

Experience in Russia: .................................................................................................................... 9

Pan india footprint: ....................................................................................................................... 9

Low tariff plan: .............................................................................................................................. 9

Innovative schemes: ....................................................................................................................... 9

Weaknesses of the company .................................................................................................. 10

New entrant in Indian Telecom market: ..................................................................................... 10

Price competition from TATA docomo and AIRCELL: ............................................................ 10

Least Brand Recall in Customer’s mind in India: ...................................................................... 10

Less Network coverage across telecom circles of India. ............................................................ 10

Threats for the company ....................................................................................................... 11

Competition from other cellular’s:.............................................................................................. 11

BCG MATRIX FOR MTS ................................................................................................................. 12

ANSOFF MATRIX ............................................................................................................................. 13

Market penetration: .............................................................................................................. 13

Market development.............................................................................................................. 14

Product development ............................................................................................................ 14

Diversification ...................................................................................................................... 14

PORTERS MODEL ............................................................................................................................ 15

PORTERS ANALYSIS ....................................................................................................................... 16

Threat from competitors (High ) .......................................................................... 16

Customer bargaining power (High) .......................................................................... 16

Suppliers bargaining power (Low) ......................................................................... 16

Threat of substitutes (High) ........................................................................ 16

Threat of new entrant (High) ............................................................................. 16

PEST ANALYSIS ................................................................................................................................ 17

Political factor ...................................................................................................................... 18

Economical factor: ............................................................................................................... 18

Social factors ........................................................................................................................ 18

Technological factor; ............................................................................................................ 19

COMPETATIVE TACTICS OF MTS ................................................................................................... 20

COMPETITOR ANALYSIS ............................................................................................................... 21

MARKETING STRATEGY ............................................................................................................... 22

CORPORATE STRATEGY ............................................................................................................... 23

Integration ............................................................................................................................ 23

Internet ................................................................................................................................. 23

Innovation ............................................................................................................................ 23

7P’S OF SERVICE MARKETING .................................................................................................... 24

Product: ................................................................................................................................ 24

Price: .................................................................................................................................... 24

Place: .................................................................................................................................................... 25

People: .................................................................................................................................. 25

Process: ................................................................................................................................ 25

Physical evidence : ................................................................................................................ 25

SERVICE GAP MODEL .................................................................................................................... 26

SERVOQUAL ..................................................................................................................................... 28

1. Reliability: ..................................................................................................................... 28

2. Assurance: ..................................................................................................................... 28

3. Tangibles: ...................................................................................................................... 28

4. Empathy: ....................................................................................................................... 28

5. Responsiveness: ............................................................................................................. 28

SERVICE TRIANGLE OF MTS ........................................................................................................ 29

External marketing : ............................................................................................................. 29

Internal marketing : ............................................................................................................ 29

Interactive marketing : ........................................................................................................ 29

RECOMMENDATION S .................................................................................................................... 30

OBJECTIVE

OBJECTIVE The Indian communications scenario has transformed into a multiplayer, multi product market

with varied market size and segments. Within the basic phone service the value chain has split

into domestic/local calls, long distance players,and international long distance players. Apart

from having to cope with the change in structure and culture (government to corporate), MTS

has to gear itself to meet competition in various segments – basic services, long distance(LD),

International Long Distance (ILD), and Internet Service Provision(ISP).It has forayed into

mobile service provision as well.

Objective of study are:

To find out the vision, mission and ambition of the MTS.

What marketing strategies MTS is implementing to increase the market share?

To find competitors to MTS and the market shares of the

Competitors and what strategies MTS is implementing to beat its competitors.

To find out how MTS react to the technology changes in the communications sector.

METHODOLOGY

METHODOLOGY Primary data source

Observation method, and

Experiment

Secondary data source

Internet

Newspaper

Magazines

VISION, MISION AND AMBITION

Vision

Booming and prosperous India driven by hundreds of millions success

Stories

MTS will be the driving force for bringing New India into the fold of

Opportunities. This drive for progress arises from our deep urge–to explore,

to create, to achieve, to change, to improve.

Mission

Enable New India’s continuous renewal

We believe the power of connectivity will provide New India with a new

sense of identity and opportunity. We will provide this connectivity in a

simple, effective and affordable manner.

Ambition

Outdo Yourself

We will encourage the use of connectivity to rise above social, cultural,

occupational and economic challenges, thus becoming the undisputed

champion of those who have the courage to go against all odds.

INTRODUCTION TO THE COMPANY

Sistema Shyam TeleServices (SSTL), a joint venture between Russian conglomerate Sistema and India‟s Shyam group, expects the user base of its MTS brand to reach 10 million with the launch of services in 11

new circles by the year-end.

“Right now, they are operating in 11 circles and hope for pan-India expansion by this year-end,”

SSTL, which is completing a year in India, has licences to launch mobile services in all the 22 circles

across the country. Its subscriber base now stands at four million.

“company is planning to launch the services in all the 22 circles, double from present 11, they are also

expecting the subscriber number to be more than double by year-end.

MTS services will available by June in Andhra Pradesh. “In other circles, company will roll out services

in the third and fourth quarters of the year.

The telecom company is present in CDMA space and has no plans to enter the GSM market. But it is

planning to expand its broadband wireless services in 100 cities across India by the year-end from present

48.

Recently, on his visit to India, Russian Prime Minister Vladimir Putin had said his country will provide

financial aid worth $676 million to help SSTL expand.

“Company hopes to receive the $676 million aid between July and September after regulatory clearances.

Company will use part of the amount this year for India expansion and the remaining next year.

To fund its expansion, the company is also planning to hit the capital market.

“The IPO launch is likely to happen next year. By this year-end, company will file the draft red herring

prospectus with securities and exchange board of India.

The company expects to receive a $100 million loan from an Indian bank .

Sistema is the majority shareholder in SSTL with a 73.71 percent equity stake.

HISTORY

MTS was established in October 1993 by Moscow City Telephone Network (MGTS), T-Mobile

Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens) and

several other shareholders. In late 1996, Sistema JSFC acquired a majority stake in MTS and has

remained the primary owner ever since.

MTS was the first company to launch GSM services in the Moscow region in 1994. In subsequent years,

MTS has expanded rapidly in Russia largely through the acquisition of smaller independent players and

became the leading national mobile operator.

MTS initiated its international expansion in 2002 through the establishment of Mobile TeleSystems LLC,

a joint venture with Beltelecom, the national fixed line operator in Belarus.

In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in Ukraine, the

biggest CIS market outside of Russia.

MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator in

Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash Communications Technologies,

Inc., the number one operator in Turkmenistan.

In September 2007, MTS continued its international expansion through the acquisition of the leading

mobile operator in Armenia, K-Telecom.

In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink Limited,

JSFC Sistema's telecommunications subsidiary in India, announced the agreement to allow Shyam

Telelink to use MTS brand in India.

The decision to introduce the brand to India is reflective of the brand‟s success in the Company‟s markets

of operation since its launch in May 2006. In April 2008, MTS brand was recognized as one of the

BRANDZ™ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward

Brown, a leading global market research and consulting firm.

Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a

multinational corporation of a new type, based in a high-growth emerging market and simultaneously

entering other developing markets with a unified brand. Having been recognized internationally for

corporate governance and transparency, MTS is not only a leading Russian blue-chip company, but a

truly global organization.

SWOT ANALYSIS

Strengths of the company

Experience in Russia: MTS is having a huge experience in this field of business as they have been showing their presence since

1993 and a great customer experience in Russia and in other countries. Experience of MTS will help

them to plan their strategy for Indian market accordingly .

Pan india footprint: MTS is going to offer the most expansive roaming network. Letting you roam anywhere in India with its

Pan-India presence, and trot across the globe with International Roaming spread in over the networks.

The mobile services group provides CDMA mobile services across India in 11 telecom circles.

Low tariff plan:

MTS is coming with one of most cheapest tariffs in telecom sector by providing ½ paisa second

call and in some region plan gets even cheaper ½ paisa 2 seconds.MTS is also launching a very

different and attractive scheme i.e..100000 minute free talk time with every new connection.

Innovative schemes:

Sistema Shyam Teleservices have launched a special offer in Rajasthan, wherein a MTS mobile customer

can make unlimited out going calls to any MTS mobile within the state for 999 days just by paying 999

rupees,

Weaknesses of the company

New entrant in Indian Telecom market:

As MTS is a new entrant in the Indian telecom sector, not having a good customer base ,it will face a cut

throat competition from its competitors.

Price competition from TATA docomo and AIRCELL:

MTS will face competition from TATA Docomo and AIRCELL because they are also having some better

scheme than MTS .

Docomo is providing ½ paisa second to almost all the circles by just getting a voucher.

And Aircell is also coming up with very attracting packages with low tariffs.

Least Brand Recall in Customer’s mind in India:

As the company is a new entrant in the Indian cellular market customer will have a perception of bad network and not a good customer service .

Less Network coverage across telecom circles of India.

As MTS is spreading its network coverage very fastly amongst all the circles where they operate but still

it is facing a bad network coverage problem.

Opportunities for the company

Latest technology and low cost advantage:

MTS can enjoy its latest technology and low cost advantage. The number of cities, towns and villages it

has covered already works to its advantage as putting more base stations for cellular coverage in these

areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology.

Huge market:

The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for MTS to enter /expand in this market. Besides there is a vast rural segment

where the cellular services have not made much headway and many customers are looking towards MTS

for providing the service to

them. With its presence even in the remotest areas,MTS can gain a big market share in this segment.

Other opportunities:

India is the second-largest telecommunications market in terms of sheer numbers of potential

subscribers, and one of the fastest growing in the world .

An expanding Indian economy with increased focus on the services sector.

Population mix moving favourably towards a younger age profile.

Urbanization with increasing incomes.

MTS can cover all the 22 telecom circles of India through its adequate strategies n Investment in

network Coverage.

Creating Customer Awareness of its products through advertising.

Threats for the company

Competition from other cellular’s:

It is time for MTS to improve/expand its cellular services. Fierce and cut-throat

competition is already in place with the markets ever abuzz with several tariff reductions

an announcement of attractive packages, trying to grab most of the „mind share‟ of the

„king‟ - „the consumer‟, whose benefits are increasing with passing of everyday.

If MTS will not be innovative and agile, its cellular service will be a flop. It needs to be

proactive with attractive packaging, pricing and marketing policies lest its presence in the

market be treated with disdain by the private cellular companies. The launch of WLL

services by Reliance communication has aggravated the situation.

Other threats

A new entrant in the market.

Less product awareness in the market.

Brand perception.

BCG MATRIX FOR MTS

BCG Matrix is used to find out the relative growth prospects of the product line.

MTS lies in “Question marks “category because its market growth is high but its current

market share is low. Company has to decide whether to move to “cash cows “category or

to “stars “category with high market growth and high market share.

MTS

ANSOFF MATRIX

To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the

firm‟s present and potential products and markets /customers. He called the four product-market strategic

alternatives.

market penetration (existing market + existing product),

market development (existing product + new market),

product development (existing market + new product), and

Diversification (new product + new market).

The company should follow all four strategies depending on the demand and

Product as indicated in the matrix. The company perhaps needs to focus more on the comparatively neglected area of diversification

Market penetration:

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.

As it is been clear from the above definition that market penetration is the strategy were company try to maintain there share in the existing market with there existing products .

As MTS is a new entrant in the Indian cellular market, SO they are not into the market penetration

strategy.

Market development

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. As MTS has target a new market for its product so they are following the

market development strategy in which they have exported there product to India.

Company has already make its presence in Uzbekistan, Belarus, Russia, Ukrain, Armenia,

Turkmenistan and now in India.

Product development

Product development is the name given to a growth strategy where a business aims to introduce new

products into existing markets. About product development we are not sure whether they follow the

product development strategy or not.

Diversification

Diversification is the name given to the growth strategy where a business markets new products in new markets.

MTS‟s move in Indian market.

INDUST

PORTERS MODEL

The industry structure has become relatively unfavorable compared to earlier monopolistic times in Russia and other countries where MTS operates.

The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment.

There are companies that provide local connectivity, those that function as long distance carriers, and

those that provide only gateway links. Some integrated players operate in all segments. The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer.The value chain for cellular mobile service and Internet

Service Providers (other than cable based net connections) are similar in as much as the calls reach the

destination through similar local loop, long distance and international gateway.

PORTERS ANALYSIS

Threat from competitors (High ) As there is a huge competition in the market, MTS will face a cut throat competition from its well stabled competitors, As reliance is already there in the CDMA market with more than 3.95 % of market share.

Customer bargaining power (High)

Lack of differentiation amongst the service providers:

Mts provides the same service what others provide this lack of differentiation gives customer a edge to bargain with service providers ,they can switch to any other provider any time they want .

Cut throat competition also offers a great deal to bargain.

And the switching cost is also very low ,all these situations are creating problems in the growth of

company.

Suppliers bargaining power (Low) Bargaining power is the ability to influence the setting of prices. The more concentrated and controlled

the supply, the more power it wields against the market.MTS will have a variety of suppliers to choose

from ,because most of the suppliers would be eying to get the contract to be the suppler of the company.

Branded suppliers are having a bargaining power because their products have captured the vast market,As

the switching cost is very high in this field which gives company a strong point.

Threat of substitutes (High)

The threat of the substitutes for MTS is very high in Indian market for MTS,Because there are already

players exist with a huge market share with better brand perception ,it will take time for MTS to win the

trust of its customer and gain market share.

Buyers willingness is very low about the company , substitutes are their and they are very strong in the

market.

Performance of the substitute is very in the market so MTS will have to prove themselves a strong

competitor to survive in the market.

Threat of new entrant (High)

Threat of new entrant is always there for any company as MTS is itself a new entrant in the cellular

market,if any other provider enters the market with a new strategy that will effect the overall strategy of

the company ,cost of infrastructure cost will go up ,and other cost will also go up with this.

PEST ANALYSIS

It is a systematic examination of all 4 levels of the environment with at least three purposes:

Detecting important economic, social, cultural, environmental, health, technological, and political

trends, situations, and events.

Identifying the potential opportunities and threats for the institution implied by these trends,

situations, and events.

Gaining an accurate understanding of your organization‟s strength and limitations.

A PEST analysis of the macro environment indicates that economic (a phone call being a cheaper way to

stay in touch than outstation travel for example) and social factors (working outside the home town) have

forced the pace of utilization of technology (Public Call Offices, mobile phones, networked companies).

Increasing customer awareness has raised expectations and vocal demands are being articulated for

consumer rights; such political factors have in turn impacted the competitive environment by way of entry

of private players, independent regulation, and a policy framework tilted towards a „level playing field‟

for new entrants.

A near environment analysis indicates that the competitors are becoming active resource rivals (political

and financial) apart from applying.pressures as customer rivals. The customer has, needless to say,

benefited from increased choice from within the communications services basket itself.

Political factor

High entrant fees in 3G market

In India legal obligations are there regarding 3G auction and bidding which limits it to the existing

players and not available to the new entrants this political factor forbids the MTS entry in to 3G services.

Reduction in tariff plan

Earlier the tariff rates were higher due to high taxes, but now it has become lowest in the world by tax

reforms.

Extention of licence period

Government has replaced the license fees with revenue sharing scheme and extended the licence period

from 10 year to 20 years.A company can merge with another operator only after 3 years of receiving

license. This rule can be eased to help MTS merge with established players.

Economical factor:

India has a very high potential in all areas of its economy, it is one of the most vibrant and fastest growing

telecome market in the world enjoys the sturdy growth rate of 10 million mobile users every month .India

has a moderate but still a healthy growth rate which will provide a good base for MTS to grow with

growing economy.

The Gross Domestic Product (GDP) in India expanded at an annual rate of 7.20 percent in the last quarter.

Inflation rate is also a key factor for MTS as inflation rate is 16.22% in India, company is keeping this

factor into the consideration to get the most of the benefits.

Another economic factor for MTS will be the cost of 3G license, as in india the cost of getting a 3G

license is very high.

Social factors

Perception of new entrant in the market:

As MTS is a new brand in the Indian market it will be facing problems regarding the perception of a

new entrant ,this image will adversely affect the buying capacity of customers ,they will think about the

network ,and the kind of service they will get after sale.

Social status:

Any thing customers buy that reflects their social status ,as MTS doesn‟t have a reputation in this market

although it has a strong customer base in Russia and a great image of its products ,people will be

conscious about their social status this will affect company‟s growth adversely.

Word of mouth advertising:

Company will have a threat of mouth advertisement in which people will get to know about the

company‟s performance it can effect the growth of the company.

Other social factors:

MTS is employing young and dynamic professionals to attract young generation .MTS are focusing on

the neglected segments of the society, providing mobile PCO (chalta phirta PCO) to physically

challenged individuals.Connect A-school A, Hospitals coin collection boxes and information kiosks at

airports and bus stands.

MTS is focusing its attention on society such as family, friends, colleagues, neighbors and the media by

providing attractive schemes.MTS is targeting the young generation in the country.

Technological factor;

The business in a country is greatly influenced by the technological development. The technology

adopted by the industries determines the type and quality of goods and services to be produced and the

type and quality of plant and equipment to be used.

As MTS has seen its competitors and the kind of technology being used by them,so company is aiming to

come up with something new that is not been available to its competitors.MTS use its technology in many

ways, they have

1. MTS is the only company with CDMA technology based services. Other CDMA players in the country

also have GSM spectrum.

2. 3G Technology:MTS is all set to launch third generation (3G) technology-based mobile TV services in the country over the next few weeks.Though other cellular providers have also launched mobile TV

services, the uptake has not been great since most of the existing offerings are based on a 2G platform.

3. GPRS /WAP:MTS Connect” service provides a simple and convenient access to the Internet

through the technology of data transfer GPRS/EDGE.

MTS are developing cost effective sensor solutions that meet the demanding environment of mobile

hydraulic applications. the adoption of this new technology include productivity gains, improved safety,

lower operator skill requirements.

COMPETATIVE TACTICS OF MTS

• MTS is providing “A cheaper Tariff “plan to attract huge customers in the market and to increase

its Market share.

• MTS is also offering internet based services like “Mblaze”i.e wireless internet services to its

customers to have a firm grip in broadband market too.

• MTS is also offering 10,00,000 free MTS minutes to its new subscribers in order to gain

customer‟s attention in the market and to make their presence felt in the market.

• MTS is offering all these services at cheap and affordable prices as compared to its competitors in order to

break through the telecom market captured by its competitors.

COMPETITOR ANALYSIS

Service providers

Subscribers market share in percentage

Revenue market share in

percentage 1 BSNL 12% 9%

2 Reliance 17.90% 15.20%

3 Bharti 22.60% 29.10%

4 Vodafone 17.4% 20.8%

5 Idea 11% 12.7%

6 MTNL 0.10% 2.80%

7 TATA 9.3% 7.2%

8 Aircell 5.90% 4%

9 MTS 0.02% 0.03

10 Spice 2.49%

N.A 11 HFCL 0.10% N.A

As it is clear from above data that MTS has to go a long way because players already exist in the market having strong and huge market share with latest technology and with better customer services ,As MTS‟s

close competitors are Tata docomo , Aircell and spice with a strong customer base and a better market

share of 9.3% , 5.90% and 2.49% where MTS‟s market share is only .02% .

Close competitors are having similarities in their services as Tata docomo provides the same call rate to

its subscribers as MTS provides and aircell also have some innovative schemes like pocket internet and targeting the young generation of the market as MTS has done,MTS is planning its strategies

accordingly.MTS is coming up with more creative ideas by providing services at low tariffs and

innovative schemes like 1000000 minutes on every new connection to capture the market. Currently

MTS‟s revenue share & market share is .02% & .03%.

To outflank the competitors, MTS is trying to be as faster as they can in terms of covering the market by

entering all the circles , currently they are present in 11 circles of india and expanding very fast .

MARKETING STRATEGY

The brand was developed to attract customers in variety of cultural, socio-geographic and income

segments with a consistent message of quality and leadership.

To facilitate the further growth and recognition of the brand, MTS recently adopted new brand

standards to communicate the brand consistently in all massaging and reinforce its perception as a strong

trustworthy and quality focused company.

MTS developed its products to meet the customers‟ needs beyond the cultural, socio-geographic

and income constraints.

MTS studied the current market scenario in Telecom market and designed its strategies and

product development according to the prevalent conditions in the market.

MTS created its brand awareness among customers by large scale promotions in forms of

advertisements on TV‟s, newspapers and hoardings across cities.

MTS is trying to create a good image in customers mind as a strong, trustworthy and quality

focused company.

MTS braked through the fierce competition in telecom market as it says “Badlo life ka plan”.

To break through heavy competition in telecom market by launching its cheap calling plans and

affordable internet connection services.

MTS is adopting various effective promotional schemes like Advertising on TV‟s, Newspapers

and hoardings on Metro stations and highways to attract customer‟s attention.

.

CORPORATE STRATEGY

MTS‟ primary goal is to be the leading communication operator in india, providing its customers with

mobile and high internet access at home and on the move. For this company is trying to move beyond the

mobile access.

The development of MTS beyond mobile access is part of our strategic initiative “3i”.

Company‟s direction is basically based on three main principles:

Integration

Internet

Innovation

Integration

In integration company is basically trying to develop new pipeline‟s and customer touch points.company

aims to provide comprehensive integrated service portfolio for all of their customers.communication

needs ,through both fixed line and wireless access.the networks and platforms company is developing

will create a seamless and unsurpassed –user experience.

Internet

For internet facilities company is trying to offer universal connectivity to its customers because customer

increasingly expects faster and broader connectivity. company is trying to create smarter pipelines so the

customers can realize full benefits of today‟s technology and to compete with other brands.

Innovation

Differentiating MTS from its competitors by offering a unique mix of products and services,MTS will

offer exclusive devices ,distinct packages and services.

7P’S OF SERVICE MARKETING

Product:

Product of a company includes its finished product readily available in the market for customers

purchases.MTS has launched its various products in the market like its connection kits, wireless USB

Modem i.e. Mblaze and mobile handsets, MTS is offering these product to provide services, as per now

company has recorded a good response from its customers and continually coming up with different

schemes to attract more customers.

As MTS says that their product is strong as compare to its competitors but they need some time to grab

the audience, as company has shown strong presence wherever they have started their operations.

Their product is strong because of their low tariffs and innovative schemes like get unlimited MTS to

MTS minutes free for 999 days by just investing 999, and 1000000 minutes free on every new

connection.

Company will offer their products and services in future as well.

Price:

As per the examination done by the MTS before pricing its product, earlier company was planning to

come up with an idea of 1 paisa a second call with a slogan of pay for seconds you talk but they rejected

this scheme when they saw Aircell and other service provider coming with the same the company decided

to offer ½ a paisa second call, which no one else is providing except Tata docomo, docomo is also having

some obligations to get the calls at ½ a paisa second.

Company has also priced its internet data card, as the MTS is providing two data cards one as they call it

standard data card priced for Rs 1999 and other premium data card priced for Rs2299.

As of now company is not focusing much on its profitability as they want to build a strong customer base

in india as they have built in other countries, company is sticking with their pricing strategy and not

planning to raise the prices of their products.

Promotion:

Promotion is the life of any company and same for the MTS,company is trying to grab the market by their

promotion of 10,00,000 minutes free to new subscribers of MTS and this strategy seems working for

them,apart from this strategy company is planning to sign a celebrity to creat a image in the mind of the

target audience,company is also targeting the road side hoardings and advertisement in television and on

radios.

Place: Place is also a major determinant for a product‟s success or failure.MTS is now setting up in India and

targeting the Indian youth by providing low tariff plans and various internet services. MTS has launched

its various products in Major metro cities like Delhi, NCR, Kolkata, Mumbai and so other. Company has

also targeted the rural area of the country like bihar. Distribution part of MTS comprises of a chain of

distribution i.e Manufacturer-distributor-retailer-consumer.MTS connections are available in most of

telecom retail shops in various major cities like Delhi and mumbai.

People:

People refers to the individuals associated with the company and who are affected with the decisions of

the company.MTS‟s people includes its employees ,its stakeholders ,its loyal customers.MTS is trying to

retain its talented and skilled employees and motivate them by incentives and making them comfortable

in professional environment.MTS is attracting new customers by providing luring schemes and low tariffs

and seeking forward to retain them by their excellent services and schemes.

Process:

In case of MTS, the process includes bringing its products i.e. Connection kits and wireless broadband

USB modem in the market for customers.

Company uses the model

Manufacturer ►distributor►retailer►consumer

This model is being used by the company to serve its customer.company is trying to make the functioning

of their system as smoth as they can to deliver best services .

Physical evidence :

In case of MTS physical evidence includes tangible products that reach the hands of final customer, i.e

sim cards, modems, cell phones etc. these products are the first and the most important evidence of

company‟s service and commitment to the customers.

SERVICE GAP MODEL

Gap 1:

As the company has the perception that their customer expects the services of the product to be better then

the players already exist.

SERVOQUAL

1. Reliability:

A customer expects mts to provide a product on which he can rely and when he has any

problem with the product, his problem is addressed properly on time. MTS is seeking to provide

quality products and services to win customer reliability.as company planning to setup a huge

customer care to solve this issue.

2. Assurance:

Customer expects complete assurance from the company regarding quality of products, effective

service and grievance handling.MTS is assuring quality products and excellent customer care

service.but still company has not managed to provide the desired services by customers, as their

expectation is to get service which offers a clear but the best service but as per the current data

costumers are not satisfied with service of the company .

3. Tangibles:

Tangibles refer to the products which have a physical appearance which one can touch and see. A

customer rely more on tangibles i.e. products in hand rather than services which are intangibles.

Company is providing mobile handsets and its high speed internet data card and showing its

physical presence, but the physical presence is not that effective as per the costumer‟s

expectation.

4. Empathy:

As MTS trying to be more empathetically by understanding the fact that consumers of today

wants calls at low prices and company is promising that they are providing their services at the

best possible price. A customer always expects that the company should understand his view

points and needs and provide him products according to his needs.MTS is high on empathy

because it has designed its products with keeping customer‟s needs in mind.

5. Responsiveness:

Company promises that they are 100 % with their responsiveness by saying the company is

offering a 24*7 services, company says they stand when their costumer wants them to stand for

them but the reality is far from what company says ,as their costumer service base is not strong in

india because still costumers facing a bad connectivity problem and a bad costumer care problem

.

SERVICE TRIANGLE OF MTS

Firm

Internal marketing e External marketing

Employees Interactive costumer

Marketing

External marketing :

MTS is coming up with variety of schemes to come in relation with its costumers, schemes like

10,00,000 minutes free to the new subscribers. As the company‟s pricing strategy that to offer

law tarrifs to creat a customer base because once the costumer base will get crated then it will be

easier for them to expand. Their promotional activities say badlo life ka plan and use a

congestion free network and this is their communication strategy as well. MTS has done external

marketing by setting a promise to customers for providing quality products and services and is doing

large scale promotions by medium of mass media like TV‟s,newspapers,hoardings etc.

Internal marketing :

MTS involves training its employees to meet the benchmarks of the customer service and is following

various motivational techniques to motivate its employees so that they give their best and provide the

quality service promised to its customers. Company is employing young and dynamic people within their organization to feed the target audience and to encourage the participation of their employees company

isoffering them very attractive salary packages and incentive schemes.

Interactive marketing :

Interactive marketing is the moment of truth where things get clear about what company offers and upto

what extend they deliver these services, with MTS they said they will deliver the best services what they

serve in Russia and in other countries but when we spoke to some of the costumers of MTS they said

services are good they always have the problem of voice breaking and call disconnection,company replies

to this by saying they are setting up latest technology to o vercome these issue it will take some time and

problem will be ractified.

RECOMMENDATION S

MTS should do its product promotion on a very large to make people aware of MTS existence in

Indian Telecom Market.

Company should offer such a strong costumer service that when a customer uses should be able

realize the service is going to be the best ,as such there is no such services being provided by the

company.

Company should ask for suggestion from people by various promotion strategy‟s ,they can do one

thing that when people call to costumer care they should add another feature of press this button

to provide suggestion.

Although company has started its operations in the various rural sector but not putting more

emphasis to those areas ,they should do more promotional strategy in those area because their

tariffs are very low and can play a major role to win customer s .

As the product has proven a strong product in the Rajasthan region ,they should use this win and

should tell the target audience about their customer base and customer experience.

More live promotions like bringing its costumers into their promotion that will create a sense of

trust amongst the users of the service.

As the company has no costumer base in india but is a successful brand in Russia they should also

bring this fact in the mind of people by the way promotion.

They should also categories‟s their product by serving different scheme according to the sector

,as in india children below 16 and people above the age of 50 don‟t call frequently ,company can

give them such a different product ,by saying product according to the people .

Company should do its promotion on a large scale to show their presence in the market as done

by Vodafone .

And last but not the least company should always looking for something different then what is

available today, as of now can do one thing that when people buy recharge coupons they can

provide then double messages free with the talk time ,lets say for example ,if I get a coupon of 25

with talktime of 20 company can offer them 40 messages free along with coupon‟s this is just an

advise from our side .