A PROJECT REPORT ON
“A STUDY ON THE CHAN GE IN BUYING
BEHAVIOR & CUSTOMER PERCEPTION TOWARDS AIRTEL VS.VODAFONE”
SUBMITTED TO
Dr. MEENAL PANDEY
SUBMITTED BY
ZAKIR MBA-I SEC-B
Galgotias Institute Of Management And Technology
DECLARATION
I, ZAKIR , ZAKIR , student of M.B.A at GIMT; hereby declare that I have completed my research report on the topic titled “A STUDY ON THE CHANGE IN BUYING BEHAVIOR & CUSTOMER PERCEPTION TOWARDS AIRTEL VS.VODAFONE”
ZAKIR
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ACKNOWLEDGEMENT It gives me immense pleasure in acknowledging the valuable assistance
and cooperation which we received from the people
around us for the successful completion of this project. At the very honest I would like to thank all respected faculty members of our MBA Department.
ZAKIR
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List of contents
1. Company Profile...............……………………………… 2. Introduction…………………………………………………. 3. Objective of Study…………………………………………. 4. Research Methodology......……………………… Methodology......……………………………… ……… 5. Analysis & Interpretation…… Interpretation………………………… ………………………….. …….. 6. Conclusion…………………………………………………….. 7. RECOMMENDATION
8. Questionnaire Questionnaire
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Company Profile
Airtel & Vodafone
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Company Prof ile of Ai r tel
3.1
AIRTEL
Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 23 states covering all four metros and more than 8 million satisfied customers.
Airtel & Visual Identity
For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself in a cluttered market. Airtel's visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it.
The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are:
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The Airtel Logo
The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn world mark.
The Airtel Image style
It incorporates two solid, red rectangular forms whose counter form creates an open doorway.
The Airtel Typographical style
The title case lettering with its capital 'A' was deliberately chosen to reinforce the brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on innovation.. The words 'Express Yourself' are very much part of the brand identity.
The Airtel Colour Palette
The lettering is grey so that the pure black of Airtel is visually unharmed.
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BHARTI TELE-VENTURES
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti TeleVentures is India's leading private sector
provider of telecommunications services based on a strong customer base consisting of approximately 11.84 million total customers which constitute, approximately 10.98 million mobile and approximately 857,000 fixed line customers, as of March 31 , 2005
Corporate Structure
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9
Organisational Structure
Mobile Division
Overview
Bharti Tele-Ventures vision for its mobile business is “To make mobile communications a way of life and be the customers first choice”.
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The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Company‟s strategic
objective is to consolidate its leadership position amongst the mobile service providers in India.
The Indian mobile market, according to the COAI, has increased from approximately 3.6 million subscribers as of March 31, 2005 to approximately 51.03 million subscribers as of March 31, 2008.
Despite this rapid growth, the mobile penetration rate in India, at approximately 6.9% as of March 31, 2008, is significantly lower than the average mobile penetration rate in other Asian and international markets.
The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2012 it is projected at 60 million by COAI and 52 million by Gartner.
Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors:
Lower tariffs and handset prices over time;
Growth in pre-paid customer category;
Greater economic growth & continued development of India's
economy;
Higher quality mobile networks and services; and
Greater variety and usage of value added services.
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Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited.
As of March 31, 2008, 100% of India's total mobile subscriber market resided in the Company's twenty three mobile circles, which collectively 100% of India's land mass.
This customer base was achieved in just over 10 years, making Bharti Airtel one of the youngest companies in the category, the company claimed. Mr Manoj Kohli, President, Bharti Airtel said, "It is indeed a remarkable achievement not only for us at Airtel, but also for the country as it clearly underlines the coming of age of the Indian telecom sector. Bharti Airtel's exponential growth highlights the undisputed position of India as the telecom hotspot of the world as the economic development of a country is very clearly linked with telecom penetration."
Strong focus on external as well as internal customers, strategic business alliances and a scalable business model have together helped Bharti Airtel to achieve leadership position, he added. The achievement comes shortly after Bharti Airtel was ranked among the top 10 best performing companies in the world in the globally renowned Business Week IT 100 list.
Strong Signs of growth
The set target of reaching around half a billion customers by 2010 and a teledensity of around 45% seems achievable. What gives the industry the confidence of achieving these numbers is the investor-friendly government policies, a consistently strong GDP growth, the exploding young population and the Indian business model of being profitable despite having the lowest tariff in the world.
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Services
Airtel Prepaid
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life. With a host of great features, also simple to use, Airtel Prepaid makes everything that you dreamt and believed, possible.
Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way.
Airtel Roaming
Airtel's Roaming service allows you to use your mobile phone to make or receive calls from almost anywhere in India and abroad.
Airtel Roaming gives you two great options:
Airtel National - Enjoy roaming in India across 42 partners networks and over 750 cities.
Airtel International - Roam across international destinations, in nearly 119 countries
including USA, Canada, UK etc. with 284 partner networks.
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GPRS / MOBILE OFFICE
Mobile Office provides you with access to e-mail and Internet any time and anywhere, even while on the move. It is an indispensable asset for traveling executives, as it enables you to be in touch
when at airports, hotels etc. So whether you're in Mumbai or not, you'll be never be short of Internet access. Now you can access official mail, refer to sites for information and do everything that you would, on the Internet. This new-age product is made possible through Airtel's GPRS (General Packet Radio Services) technology.
GPRS Mobile Office service has the following features:
a) Access the Internet anytime, anywhere (across all Airtel circles in India) b) No airtime charges c) Cheaper than connecting through land line e) A minimal monthly subscription fee
VOICE MAIL SERVICES
Voice Mail allows you to receive messages even when your handset is switched off or when you are outside coverage area. You can then retrieve these messages at your own convenience.
CALL CONFERENCING
With Airtel call conferencing, teleconference with 6 people simultaneously. You can also have the liberty of setting up a conference even when the other five individuals are using a landline.
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Ai rtel Presents... HE L L O TUNE S
With
Hello
Tunes
when
you
dial
an
Airtel
Subscriber‟s
mobile,
you will hear the song that he/she has selected for you!!
FEATURES
„Song of the Day' at the top of the menu to make first time selection easy
Various language options : Select from English to Kannada (over 5 different languages)
Content represents all major languages
Everyone-tune: one song for all callers
Special tune: personalized song for specified caller
Easy Billing
Now enjoy the luxury of viewing details of your last 3 billing cycles and the convenience of paying your Airtel bill online! Experience complete freedom with Airtel!
Subscripti on Ser vices
With Airtel's Subscription Services, you can subscribe for cool alerts at the click of a button! What's better is that you can receive updates automatically on your Airtel phone without requesting everyday.
Daily News Alerts
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With Airtel News Alerts, be in touch with the latest happenings around the world, all the time. Get 2 news bulletins sent to your Airtel phone, courtesy AajTak, the 24-hour news channel from India Today Group.
Daily Astrology Alerts
Your future lies in your Airtel phone. Literally! Get daily forecasts of each sun sign from renowned astrologer Ma Prem Usha.
Daily Joke Alerts
Crack up with laughter with Airtel's daily joke alert. Get the funniest jokes that you can forward to your friends to brighten up their day too.
Daily Business Alerts
For the latest buzz on the business scenario, now you never have to look very much further than the palm of your hand. Airtel brings you the daily business news and stock alerts, courtesy Business Today, the leading publication on business news & stories.
Daily Filmi Gossip
Want the latest khabar on Lara, Salman, Cameron and Toby? Tune into Airtel's Filmi Gossip, with the latest buzz about your favourite Hollywood and Bollywood stars.
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3. 2 Company Profile Of Vodafone Today, in India, becomes Vodafone. Now, the pink color logo of
will be replaced by
Vodafone Essar’s corporate red colored one.
In 2005-06, the Orange brand in Mumbai was phased out to introduce (now Vodafone). The company also changed the colors of its logo from orange to pink last year.
After acquiring 67 per cent of stake (around Rs. 250 crores) in ison Essar from Hong Kong-based ison Whampoa, Vodafone Essar is expecting to touch over 35 million customers across 400,000 shops and thousands of ‟s own employees along with employees of its business associates.
Asim Ghosh, MD, Vodafone Essar , said “We‟ve had a good innings as in India and today marks
a new beginning for us, not as a departure from the fundamentals that created , but an acceleration into the future with Vodafone‟s global expertise.”
Vodafone CEO and Vice-Chairman Arun Sarin of the joint venture Vodafone Essar will be
landing in India for the meeting that would discuss branding exercise, expansion plans, spectrum requirements for its expanding subscriber base and future plans.
Vodafone offers a host of premier value added services (VAS) including national and international roaming in over 70 countries in over 160 networks, Wireless Application Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket updates, M-banking, general information, tarot line, etc. The company launched WAP in Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in December 2000. The company has been a prime mover in introducing these value-added services in the Delhi circle.
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The values are stated simply. To be fair and transparent in what they do and how they do it. To provide the quality services with more customer friendly practices. To make one‟s
communications experience simple, pleasurable and fun. Where he doesn't simply get technology but technology that is relevant. Where solutions are not just promised in the future - but delivered in the present. CORE VALUES
We shall uphold the dignity of the individual
We shall honor all commitments
We shall be committed to Quality, Innovation and Growth in every endeavor
We shall be responsible corporate citizens
Vodafone Logo
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Services Staying connected becomes a lot easier with Vodafone. We have a wide range of services you can access right from your Vodafone phone. From cell banking to flight updates to call management services, get all that you want, instantly.
Dial 600 to activate
To activate these values added services on your Vodafone phone simply dial 600 and access our Interactive Voice Response system.
SM S Message your family and friends through Vodafone SMS Services. It's convenient and affordable. Communicate with cell phone users in over 100 countries and anywhere in India - by sending and receiving
text
messages.
Pay just Rs. 1.50 per message for sending SMS anywhere across the country.
SM S Chat
Now, you can chat on your Vodafone phone with as many people as you want. Its fun and as simple as sending an SMS. Your identity will remain anonymous as your phone number is never displayed during the chat. You can have your own profile and chat name. You can also create your own chat rooms or chat in the different rooms that already exist including: Teens, 20s, 30s, Office, Bollywood, Delhi.
All you have to do is type in your messages and send them to 2428. You will be charged Rs. 2 per outgoing message. Incoming messages are free.
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Vodafone Onl in e Get all the useful information you need directly on your Vodafone phone - with Vodafone Online. Including cricket, finance, entertainment, weather, astrology and more.
If you do not see the Vodafone Online menu on your phone, send HELP to 123. We will send you the list of keywords.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
M TNL D ir ectoy
With this facility you can get to know the address and telephone no. of MTNL users.you will be charged Rs.2 per outgoing message.
STD / I SD Codes
You don't need to look up your diary or a phone directory to find out STD and ISD codes. You can find it directly through your Vodafone phone.
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Rin gtones & L ogos Now you can change the ringtone on your Vodafone phone according to your moods. You can download logos as well. With the Vodafone and Yahoo! tieup you have hundreds of tunes and logos to choose from.
For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS sent). For every logo/picture message downloaded, you will charged Rs. 3.00 (including the cost of SMS sent).
Fl ash & Blink
Vodafone now offers you two exciting ways to send messages. You can make your message flash directly on your recipient‟s screen instead of the inbox. You can also highlight the important parts
of your message through blinks. So your text messages become not only more visible, but more effective too. You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Di al-i n Ser vices
Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to check cricket scores, horoscope, up-to-the minute news and other relevant information on services that touch your everyday life.
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INTRODUCTION
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INTRODUCTION 1. INTRODUCTION "Telecommunications is the backbone of our future economy. International competitiveness increasingly depends on the development of a telecommunications infrastructure that is compatible with international standards"
The cellular industry all over the world has been witnessing very high growth rates in subscriber base in recent years. For developing countries in particular, cellular services are becoming a very significant proportion of the overall telecom infrastructure. The mechanics of competition within this market involve complex feedback effects between individual service providers and with their operating environment, and these forces play an important role in governing the growth of this industry.
In a country like India which is not yet telephone-saturated and the ongoing changes in related areas are resulting in a rapidly changing profile of users, providers and their respective needs, continuous revision of the telecom policy is imperative. Given the emerging new technologies and the integrating economies there must be fairness among competitors.
1.1
History of Cellular Telephony in India:
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
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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.
1.2
Cell ular I ndustry in I ndia
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 enabling framework for development of this industry. The entry and license fees varied according to the service area, highest for metros and lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and their licenses were revoked leading to a monopoly situation in certain areas. Apart from these charges, each CMSP has to share the revenue with the long distance operators for carrying inter-service area calls.
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CONSUMER BUYING BEHAVIOR
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CONSUMER BUYING BEHAVIOR 2. Consumer Buying Behaviour
Buying Behavior is the decision processes and acts of people involved in buying and using products.
Need to understand:
Why consumers make the purchases that they make?
What factors influence consumer purchases?
The changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.
2.1
Marketers can better predict how consumers will respond to marketing strategies.
STAGES OF THE CONSUMER BUYING PROCESS
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next.
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THE 6 STAGES ARE:
1. Problem Recognition (awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.
2. Information search-o
Internal search, memory.
o
External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set .
Hungry, want to go out and eat, evoked set is
o
chinese food
o
indian food
o
burger king
o
klondike kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another
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restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase--May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.
, have you made the right decision. This can be reduced by warranties, Cogni ti ve Di ssonance after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.
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OBJECTIVE The research is a cross sectional analysis between two cellular service of Delhi namely AIRTEL and VODAFONE. This research is done to find the following objectives: 1) What is the consumer satisfaction level by the services offered from the service provider (Airtel and Vodafone) 2) What are the expectations of the consumers from the service providers. (Airtel and Vodafone)
The given project is to analyze the overall satisfaction of subscribers with their mobile service provider. The scope for the research is not very big. The area of study of the researcher was Delhi region. Marketing is innovative field. Here nothing can be assumed. Whatever ideas we generate, we have to test them and they must be supported by proved results. For this, marketing research is very important. Comparative study is one such aspect that is very difficult to measure by guesswork. Anything you say about it, it must be based on reliable research. I am going to do a
“ASSESSMENT AND COMPARISON OF CUSTOMER SATISFACTION L EVEL BETWEEN A I RTEL and Vodafone ”.
To justify the customer satisfaction level by services from service providers I have undertaken small survey. This survey throws light on many things like what are the various services with which they are satisfied and dissatisfied, what are the expectations of customers from service provider. To facilitate our purpose, I have formed a questionnaire and asked 200 respondents (100 Airtel and 100 Vodafone users) to fill it.
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Research Methodology
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5.1. INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results.
5.2. RESEARCH DESIGN
The researchers propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which the researchers feel remain unanswered or liable to change , this shall be further taken up in the next stage of exploratory research. This stage shall help the researchers to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. These set of questions are then proposed to be studied under a descriptive research setting finally leading to formation of hypotheses and testing under causal research.A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The sur vey resear ch was used in this project, because consumer‟s feedback was necessary for obtaining the data. 5.3.
Data Sources
New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research. Consists of original information that comes from people and includes information gathered from surveys, independent observations and test results.. Data gathered by the researcher in the act of conducting research.
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This is contrasted to secondary data which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation.
Pri mary data was collected by the questionnaire based market survey. In this survey 100 AIRTEL
and 100 VODAFONE mobile users were surveyed.
Secondar y data was obtained from journals, magazines, newspapers, books and of course the
Internet. Information that already exists somewhere, having been collected for another purpose. Sources include magazines, various web sites, and subscription services. Data that have already been collected and published for another research project (other than the one at hand). There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organisation for some purpose other than the current investigation. Data that have already been collected for some purpose other than the current study. Researching information which has already been published. Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company.
Secondary source of data used consists of books and websites
5.4.Research Instrument For doing the survey research, stru ctured questionn air e with both open-ended and closedended questions was used.
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Mode of Survey The mode of survey was per sonal in ter view with the respondents during the filling up of the questionnaires.
Sample Size A sample size of 200 respondents is used for the study.100 AIRTEL and 100 VODAFONE customers were contacted and interviewed.
Sample Unit This study was basically an opinion survey of the residents of Delhi – who are cell-phone users – regarding their views on the cellular service providers.
Place of Study Delhi region.
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Analysis and Interpretation
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An alysi s andI nter pretation A sample size of 200 respondents (100 Air Tel and 100 Vodafone Users) was used for obtaining the information for this study.
5.5.The Br eak U p: The break up of the respondents is shown as follows on the basis of Age, Sex, Education Level & Occupation:
Age
Upto 25 Yrs.
66
33%
26-35
82
41%
36-45
40
20%
46 and above
12
6%
AGE
6%
33%
20%
Upto 25 Yrs. 26-35 36-45 46 and above
41%
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Interpretation Out of the total respondents 66(33%) are of the age of below 25 years Out of the total respondents 82(41%) are of the age of below 2 6-35 years Out of the total respondents 40(20%) are of the age of below 36-45 years Out of the total respondents 12(6%) are of the age of below 46 & above years
SEX
MALE
136
68%
FEMALE
64
32%
SEX
32% MALE FEMALE
68%
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The breakup of the respondents on the basis of Sex is Males 136(68 %) and Females 64( 32 %). Education Level
High School
56
28%
Under Graduate
24
12%
Graduate and above
116
58%
Others
04
2%
EDUCATION
1.2
1.4
1st Qtr 2nd Qtr 3rd Qtr 8.2
3.2
37
4th Qtr
Interpretation Out of the total respondents 56(28%) are have passed high school, 24(12%) are under graduate, 116(58%) are graduates and above qualified and 04(2%) belong to other categories Occupation
Student
84
42%
Service Man
70
35%
Businessman
28
14%
Others
18
9%
OCCUPATION
STUDENT SERVICE MAN BUSINESS MAN OTHER
Interpretation Out of the total respondents 60(30%) are students Out of the total respondents 58(29%) are Service Man Out of the total respondents 42(21%) are Professionals
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Out of the total respondents 22(11%) are businessman Out of the total respondents 18(9%) belong to other catogories
5.6.Cell phon e Ser vice subscri bed by user s Airtel
100
Vodafone
100
users
airtel 100
100
Category of ser vice subscri bed
Overall the results show:
Prepaid: 62% subscribers
Postpaid: 38% subscribers
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vodafone
38% PREPAID POSTPAID
62%
5.7.Br eak up in term s of Ai r tel and Vodafone
Air Tel
Post paid
30%
Pre paid
70%
40
AIRTEL
30%
POSTPAID PREPAID
70%
Interpretation
70% of Airtel users prefer the prepaid segment while 30% prefer the postpaid segment.
Vodafone
Post paid
46%
Pre paid
54%
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VODAFONE
46% 54%
POST PAID PRE PAID
Interpretation
54%of Vodafone users prefer the prepaid segment while46%prefer the postpaid segment.The results clearly show that there is a larger subscriber base in the pre-paid segment, which is in consonance with the industry figures.
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Conclusion
With the steep fall in the cost of providing cellular services, and increasing deregulation and competition, developing countries are witnessing rapid growth in cellular subscriber base. Indian cellular industry has been witnessing a Compounded Annual Growth Rate of about 105.2%. It is a $5 billion industry today, and the cellular subscriber base in the country has increased to 6.4 million from a mere 28,550 in 2004. According to reports, Indian mobile subscriber base is expected to grow to 19.48 million in the current year, i.e.; 2008. However, the penetration rate of cellular services is very poor in developing countries. In India, the cellular density is 0.56 per 100 population compared to 77.84 in Finland.
Economic conditions, market structure, policies regarding tariffs and interconnect agreements, and customer characteristics are some of the significant forces affecting the growth of cellular services. Since it takes about 3-4 years for cellular operators to attain financial payback on their projects, estimates of market size can be useful for network and investment planning. Qualitative narratives and descriptive
statistics of the cellular sector for many countries are available from a variety of industry sources. However, rigorous empirically based studies of cellular market growth are much more limited in number.
Moreover, these studies do not provide much insight into the mechanics of growth in cellular markets. Such insights can inform policymakers about the process by which growth occurs and help develop policies that can improve cellular penetration in developing countries. They are also
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useful to service providers in planning their network rollouts and services in the face of market competition.
With the introduction of new providers, the incumbents face erosion of their subscriber base. They can take preemptive measures to improve the quality of their services offerings, reduce prices and increase the breadth of their service offerings. The new operators have to battle against the advantages of the incumbents such as existing subscriber base, economies of network operations, network infrastructure and their financial strength.
There are other idiosyncrasies that may also need to be considered. In case of India for instance, some of the entities that have received licenses to operate as the fourth operator in metro areas, have prior cellular network provisioning experience in selected parts of the country. They can reduce the roaming charges when the subscriber roams in the operator's other areas. Further, the government owned third operator, was erstwhile monopoly operator in basic and domestic long distance services. This operator has extensive long distance network and a sound financial base that will enable them to cross-subsidize the cellular service and reduce prices.
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RECOMMENDATIONS
45
6.
Recommendations
Sim card activation should not take more than 24 hrs.
More talktime should be given on recharge coupon.
Rent should be brought down to minimum Rs.100 to attract students who forms majority of mobile phone users.
Calling line(CLIP) charges should be abolished as this is the necessity of mobile users to know the number of calling party.
Satisfaction levels of Vodafone customers are comparatively lower than Airtel customers. They should introduce reward-based schemes for its customers.
Network signal should reach underground basement with voice clarity. Vodafone need to focus on it.
Local SMS charges should brought down to less than 50 paisa as compared to Rs.1.50. SMS is the need of students and easy way to stay in touch and have fun.
Roaming charges should be minimized.
Airtel must provide GPRS facility on prepaid as Vodafone does. This service is now in very much demand as accessing e-mail,
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internet becomes easier by GPRS. Vodafone is a winner in this.
MMS is now in demand having sound and video messages. This should be provided at low cost.
Billing complaints should be resolved within 24 hrs. Airtel should look into this matter as they have more billing related issues.
Customer care should not take so long to provide feedback to customers.
Call pulse rate should be reduced to 15 seconds as most call end up less than this time. This will save money of customers.
Customers should be given rewards or discounts for showing loyalty to service.
Rewards to customers recommending others.
Free unlimited call to 1 or 2 nos. on same network without any charges.(A tribute to LOVEBIRDS)
Free calling within the group at low monthly rental.
Internet access on PC/LAPTOP through mobile be made
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BIBLIOGRAPHY
48
7.
Bibliography Boyd, Westfall, Starch: Marketing Research.
( Seventh Edition)
Research Methodology: C.R.Kothari.
(Second Edition)
Philip Kotler: Marketing Management. (
Eleventh Edition)
Company brochure of Airtel and Vodafone. www.airtelworld.com www.Vodafoneworld.com
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Questionnaire
1.
NAME:
2.
AGE:
3.
_________________________
(a ) upto 25 Yrs.
(b ) 26-35 Yrs.
(c ) 36-45 Yrs.
(d) 46 Yrs. & above
SEX:
(a) Male
4.
5.
(b) Female
EDUCATION LEVEL:
(a) High School
(b) Undergraduate
(c) Graduate & above
(d) Others___________
OCCUPATION:
(a ) Student
(b) Service Man
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(c) Professional
(d) Businessman
(e ) Other ____________
6.
Which cell phone service you are using:
(a ) AIR TEL
7.
(b ) VODAFONE
Which category of service you are using:
(a) Prepaid
8.
What is your spending per month:
(a) Upto 500
(c) Rs.1001-2000
9.
(b) Rs.501-1000
(d) Above Rs.2000
How much time taken by your service provider to activate sim :
(a ) Same day
(c) 2-3 days
10.
(b) Postpaid
(b) Next day
(d ) More than 3 days
To what extent you are satisfied with Current Tariff of your cell operator:
(a) Very Satisfied
(b) Satisfied
(c) Satisfied to an extent
(d) Dissatisfied
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