Consumer Perception Towards Telecom Services In Ahmedabad
SYNOPSIS
Aim: The aim of this study is to analyze critically the Ahmedabad’s customer preference and their satisfaction in Telecom Sector.
Objective of the Study: 1) To determine the technical factors which influence the purchasing behavior of mobile connection. 2) To determine the marketing process elements which influence the purchasing behavior of mobile connection.
Commerercial Viability of Study: In today’s scenario communication has become much faster day by day by telephone, internet, media etc. One of them is growth of Telecom sector. Today many organizations provide services for telecom purpose. This study will help to understand customer preferences and their satisfaction by the service provided by different organizations in this sector. It will also help these organizations to form various strategies and getting the results from marketing efforts.
Research Methodology: This research consists of primary and secondary research. Primary Sources 1) Interaction with customers by filling up of questionnaires. Secondary Sources Books Internet Articles Magazines Project reports News papers
Acknowledgement
The success of this project depends upon the contributions of many people, especially those who shared their precious and valuable time in giving thoughtful suggestions to improve our work. We would like to extend our sincere feelings towards our project guide Prof. KAVITA SHARMA whose continuance guidance made this project a great success. We especially thank our institute called IBMR which gave us this golden opportunity to prove ourselves by doing something which is blend of both practical and theory. A very special thanks to our Honorable Dean R.K. BALYAN and some students & people who shared their opinion with us.
UTKARSH SINGH
YOGENDRA PRATAP SINGH BADORIYA
EXECUTIVE SUMMARY
The development of telecom sector has experienced a major process of transformation in terms of growth, technology content and market structure in the last decade through policy reforms introduced by government. The impetus of these changes expected to continue, and at a much faster pace. The study aims to analyze that with the increase in competition in telecom services, higher level of consumer satisfaction with affordable prizes and better quality of services achieving or not. Wireless telephone and internet are expected to be the preferred means of communication as convergence of telecommunications, broadcasting and information technology progresses. Liberalization of telecom sector of Indian economy aims at improving accessibility, availability, reliability and connectivity through private sector participation and to bring about much needed improvement in the quality of Services. Through increased competition, the service providers expected to become more sensitive and responsive to the customers needs and choices and endeavor to give him great satisfaction. TRAI has the mandate to safe the customer’s interest and to set the standards of quality of service. The rapid technological advances which have taken place in the telecom sector have brought about significant improvements in the quality of service provided to customers. With the digitization of exchanges and up gradation of external network the fault rate has come down.
INDEX
1. Introduction 1.1 History 1.2 Quick Facts 2. Evolution of the industry-Important Milestones 3. Journey of telecom sector after 1991’s liberalization policy 4. Government Policies 4.1 The specific targets mentioned in the NTP 1999 4.2 Rural Telecom Network 4.3 Expansion of Telephone network 4.4 Entry of private sector in both basic and VAS 4.5 VAS challenges 5. TRAI 5.1 Functions of TRAI 6. Major Players in different segments of Indian telecom industry 6.1 Airtel 6.2 Idea 6.3 Vodafone 6.4 BSNL 6.5 Reliance 6.6 Tata Teleservices 6.7 New entries 7. Research objective 7.1 Approach to problem 7.2 Theory development
7.3 Model development 8. Research Design 8.1 Types of Research to be undertaken 8.2 Survey method 8.3 Scaling methods 8.4 Questionnaires development 8.5 Sampling technique 8.6 Field work 8.7 Limitation of study 8.8 Sample size 8.9 Assumptions 9. Data analysis 9.1 Sampling 9.2 Observations 10. Findings 10.1 Total Analysis 10.2 Company wise Analysis 11. Conclusions and Recommendations 12. List of figures 13. Questionnaire 14. Bibliography 15. List of Abbreviations used
The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP.
Introduction The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
HISTORY 1851
Introduction of Telegraph services
1947
Foreign Telecom Companies nationalized to form PTT
1980’s: The Beginning Early to Mid 90’s: A Messy Affair Late 90’s 2000+
2007-2009
-Tele-density in 1980-81: 0.3% -Introduction of public pay phones -Private Sector allowed -DoT, MTNL and VSNL formed -Telecom policy 1994 - Basic telephony service to private operators - 49% FDI - 8 licensees began operations in Aug 1995 - Birth of a regulator: TRAI - NTP 1999 - (New Telecom Policy) -CAGR of around 85% since 1999 - FDI: 74% (2005) -Having the world's lowest call rates the fastest growth in the number of subscribers (45 million in 4 months), - The fastest sale of million mobile phones (in a week), - The world's cheapest mobile handset - The world's most affordable colour phone
Quick Facts Total telecom subscribers :
429.72 million (March 2009)
Wireless subscribers :
391.76 million
Wire line subscribers :
37.94 million
Tele density :
36.98 per cent
India’s service providers revenue in Q1 (2009)
$8.2 billion
India’s Rural Mobile Phone Users :
100 Million
Evolution of the industry-Important Milestones History of Indian Telecommunications Year 1851
First operational land lines were laid by the government near Calcutta (seat of British power)
1881
Telephone service introduced in India
1883
Merger with the postal system
1923
Formation of Indian Radio Telegraph Company (IRT)
1932
Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC)
1947
Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications
1985
Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system)
1986
Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in Metropolitan areas.
1997
Telecom Regulatory Authority of India created.
2000
DoT becomes a corporation, BSNL
2008
3-G Service is launched
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Journey of telecom sector after 1991’s liberalization policy
Three forces--Telecommunication, Information and Globalization--are restructuring
every aspect of business and society. Telecom professionals are the key players in this transformation. They play a crucial role as leaders in the changing dynamics of global 11
communications, internetworking, the Internet, e-commerce, mobile and wireless communications strategy. Modern age is the age of convergence and fusion for telecommunications. This fusion of telecommunications, broadcasting and information technologies has resulted in amazing discoveries. Voice over IP, television web casting over Internet and video on demand is a
reality.
Telecommunications
is
a
key
to
modern
economy
infrastructure.
Telecommunications when linked with computer becomes Information Technology, which is the most dominating technology of today as it influences the entire spectrum of the economy. IT practically covers all aspects of business, technology, manufacturing and other services. Today the networks and companies will no longer be categorized on the basis of only voice, data or video services they provide. They have to become info-communications companies providing a bundle of services. Telecommunication has now become the backbone of any modern economy due to its all-pervasive nature of running through almost every human transaction - commercial, digital or even personal. The emerging new economy, powered by technology and dictated by the digital revolution is incredibly forcing the telecom industry to grow more than ever before. The changing lifestyle of human beings enhanced by Internet, facilitated by mobile communications and enriched by e-commerce would give a real boost to this industry. As trade and industry grows, telecom services also have to expand commensurately because it is one of the greatest infrastructure and life-blood for the modern trade and commerce. Telecommunications services are used for a variety of purposes. Modern communities and businesses have come to rely on these services for: •
Social contact such as keeping in touch with friends and relatives and for organising social activities;
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•
Business purposes which cover a wide range of uses from customer contact and business transactions to inter-company communications;
•
Emergency use for summoning police, ambulance and fire brigades;
•
Cultural and entertainment use;
•
Educational use where telecommunications services or applications replace or augment traditional delivery of education; and
•
On-line business transactions, education and entertainment using Internet access. In this report Internet access is considered as a separate telecommunications service.
Government Policies
The main guiding policy for the telecom sector is the New Telecom Policy (“NTP”) 1999. The objectives of the policy are as follows:-
1. Access to telecommunications is of utmost importance for achievement of the country’s social and economic goals. 2. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy. 3. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country’s economy, 4. Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country.
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5.
Create a modern and efficient telecommunications infrastructure taking into
account the convergence of IT, media, telecom and consumer electronics and assist emergence of India as an IT superpower, 6.
Convert PCOs, wherever justified, into Public Tele-info Centres having
multimedia capability like ISDN services, remote database access, and assist emergence of community information systems etc., 7. Transform the telecommunications sector in a time bound manner to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players, 8.
Strengthen research and development efforts in the country and provide an
impetus to build worldclass manufacturing capabilities,
Achieve efficiency and
transparency in spectrum management, 9. Protect defence and security interests of the country, 10.Enable Indian Telecom Companies to become truly global players.
The specific targets mentioned in the NTP 1999 are: 1.
Make telephone available on demand by the year 2002 and sustain the position thereafter so as to achieve a tele-density of 7 by the year 2005 and 15 by the year 2010,
2.
Encourage development of telecom in rural areas making it more affordable by modifying the tariff structure suitably and making rural communication obligatory for all fixed service providers,
3. Increase rural tele-density from the current level of 0.4 to 4 by the year 2010 and provide reliable transmission media in all rural areas, 4. Achieve telecom coverage of all villages in the country and provide reliable media to all exchanges by the year 2002, 5. Provide internet access to all district headquarters by the year 2000, 14
6.
Provide high speed data and multimedia capability using technologies including ISDN to all towns with a population greater than 2 lakhs by the year 2002.
RURAL TELEPHONE NETWORK The objectives and targets of NTP 1999 for rural telephone network are as follows: 1.
Encourage development of telecom in rural areas by making it more affordable through tariff restructure and making rural communication obligatory for all fixed service providers,
2. Rural tele-density to be raised to 4 per hundred by the year 2010, 3.
Achieve 100% telecom coverage of villages by the year 2002 and provide reliable transmission media in all rural areas. Out of the 5,93, 485 villages in the country, 5,59,503 villages have been
provided with Village Public Telephone (VPT). 33,982 villages are yet to be connected with a VPT. In percentage terms 94% villages have been covered by VPTs and 6% villages are yet to be covered. There was a decrease of 4572 VPTs during the financial year. The private operators share in these VPTs is very negligible and almost the entire VPTs have been installed by BSNL. The total no. of VPTs of BSNL was recorded at 5,19,616 in March 2008 as compared to 39,887 VPTs of private operators as on March 2007. Out of total 39.42 million subscriber base of wireline, the Rural Subscriber base was 11.64 million on 31st March 2008. The Rural teledensity as on 31st March 2008 was 9.20.
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EXPANSION OF TELEPHONE NETWORK The main objectives and targets of NTP 1999 with respect to expansion of telephone network, other than rural network, which has been discussed above, are as follows: 1. make telephone available on demand by year 2002 and achieve tele-density of 7 percent by the year 2005 and 15 percent by the year 2010, 2. Provide internet access to all Districts Headquarters by the year 2000, 3.
Provide high speed data and multimedia capability using technologies including ISDN to all towns with population greater than 2 lakhs
by the year 2002, 4.
Conversion of PCOs wherever justified, into Public Tele-Information Centres having multimedia capabilities like ISDN services, remote database access and information systems etc The subscriber base of basic services (Wireline) recorded marginal
decrease by 3.28% in 2007-08 over the previous year. The mobile industry has witnessed annual growth rate of 58.12%. The growth in absolute numbers in mobile subscribers during 2007-08 was 95.96 million a compared to 66.34 million in 200607. The total number of subscriber crossed 26149 million mark by the end of 16
financial year 2007-08. The total subscribers comprises of 192.7 million GSM and 68.37 million CDMA subscribers. Another service within the telecom sector, which recorded substantial growth, was Internet and Broadband services. While the total number of subscribers of Internet services increased from 9.27 million in March 2007 to 11.09 million at the end of March 2008 recording a growth rate of about 19.63%, the subscriber base of Broadband increased from 2.34 million in March 2007 to 3.87 million at the end of March, 2008. There has been significant expansion of the telecom network in the country as may be seen from the growth of various kinds of services mentioned above. The overall tele-density during the year rose to 26.22 on 31st March 2008 as compared to 18.23 on 31st March 2007.
ENTRY OF PRIVATE SECTOR IN BOTH BASIC AND VALUE ADDED SERVICE Basic Service After the announcement of the NTP-94, in September, 1994, the Department of Telecommunications issued Guidelines for private sector entry into basic telecom service. In early 1995, bids were called for basic service and were received in August, 1995. By March, 1996, the successful bidders were short-listed for providing basic services and in 1997, license agreements with private basic service operators were signed for six circles. However, unlike other services, the Basic Service did not take off soon after the licenses were awarded. Subsequent to the announcement of the NTP 1999, TRAI’ recommendations were sought for grant of fresh licenses for basic telecom service in the 15 vacant telecom Circles and for additional licenses in six Circles where licenses had already been issued. TRAI had given its Recommendations to the Government on 31st August 2000. In line with the TRAI’s Recommendations, the Government issued the Guidelines for issue of Licence for Basic Service on 25th January, 2001. These Guidelines provided for opening the Basic Telephone Service without any restriction on the number of operators.
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By the end of March 2008, 5 private BSO Groups namely, M/s Reliance Infocom Ltd. (21 circles), M/s Tata Teleservices Ltd. (20 circles), M/s Tata Teleservices (Maharashtra) Limited (2 circles), M/s Bharti Airtel Ltd. (17 circles), M/s Shyam Telelink Ltd. (Rajasthan circle) and M/s HFCL Infotel Ltd. (Punjab circle) are licensed operators providing wireline service. All the five private operators had migrated to Unified Access Service Regime during 2003-04.
Value Added Services Telecommunications had traditionally been a voice communication service. The services today have moved beyond their fundamental role of voice communications to a spectrum of non-core services, which in telecommunication parlance is called Value Added Service (VAS). VAS are provided either directly by the telecom operators themselves or by a third party Value Added Service Provider (VASP). VASP connects to the core equipment of telecom operators through interworking units using protocols like short message peer-to-peer protocol (SMPP), connecting either directly to the short message service centre (SMSC) or to a messaging gateway that allows the telecom operators to have control of the content. Unlike the core or basic services, the VAS have unique characteristics and they relate to other services in different ways. They also provide benefits which the core services cannot provide. Basically, there are two types of Value Added Services – (i) Value Added Services that stand alone from operational perspective and (ii) Value Added Services provided as an optional service along with voice service.
Non-Voice services like SMS are examples of stand alone value added services. The Value Added Services presently being provided by the telecom operators are in the following areas:
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Sl. No.
Type of Value
1.
Added Service News
2. 3. 4. 5. 6. 7. 8.
Finance Entertainment Travel Downloads Astrology service Cricket Missed call alters
Description National, International, Business, Entertainment , Sports News Stocks (NSE, BSE, NASDAQ), Forex Games, Mobile TV and Jokes Railways, Airlines Logos, Ringtones, Caller tones etc. Personal Horoscope / Personalized prediction Cricket scores, Match clippings, cricket commentary Subscriber to get a SMS alert of incoming calls when the subscriber’s mobile phone is switched off / not
9. 10. 11. 12. 13. 14. 15.
E-mail Music on demand Contest GPRS / WAP MMS Health M-commerce
reachable and busy E-mail through SMS Dial a song Reality shows Mobile Internet, Mobile Chat, Mobile TV Picture messages, picture clippings Health tips, Beauty tips Transactions based services with multiple payment modes and support in multiple domains like WAP, GPRS, SMS,
16.
Miscellaneous
IVR and Web Devotional, Movies & Music, Fun, Navigation etc.
VAS challenges……
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Operator Challenge •
•
User Challenge
Operators focusing on subscriber acquisition with no incentives to push VAS in light of current spectrum allocation criteria Spectrum constraints and delay in 3G roll-out has substantially limited high-end VAS take-off
•
Operators not driving users awareness to promote various VAS offerings
•
Ease of use, user interface and familiarity with medium of access such as GPRS, IVR etc.
Value Adde d Servi ces
Revenue Challenge •
Content Localization Challenge • •
Operators haven’t done much to customize content according to consumer behaviour • Limited availability of local web content and WAP versions of whatever is available
•
Ongoing tussle between operators and VAS companies for revenue share continues Since alternative models haven't evolved yet, this has hampered VAS innovation
Device Challenge •
•
Providing feature-rich handsets at low cost is a big challenge with GPRS enabled handsets still around INR 2,599 (USD 63) Pre-loading of applications by handset OEMs has not really caught on yet
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TRAI TELECOM REGULATORY AUTHORITY OF INDIA
Telecom Regulatory Authority Of India, a statutory and quasi-judicial body was formed by an Act in Indian Parliament to regulate the vast telecom sector. The necessity to form such a regulatory body in line with SEBI, IRDA etc. was felt when the telecom sector was open to private sector. Plainly speaking it’s job could be comparable to an umpires’ of a game field. It has been given the liberty to act without the intervention of bureaucracy or some self-serving politicians, The skirmishes encompassing TRAI came to limelight due to conflict among various telecom operators. That’s exactly the duty of this regulatory body, as has been entrusted with the statutory power, umpiring on behalf of the public for smooth telecom service. If one reviews the sequence of it’s orders/regulations, chronologically, to various telecom operators and the crucial policy changes with regards to service changes, the monopolistic and arbitrary attitude is clearly visible. Unfortunately, It’s a matter of concern that INTER CONNECT USAGE REGIME ordered by the same agency is being reviewed again by itself within two month’s of it’s enforcement. It could have been reviewed before it has been implemented or could have been kept for public perception or operator’s opinion. If an telecom regulator of a country having almost 7 crores telephone connections could act in such a haste manner without taking into consideration of aspects of technical feasibility, accounting, public psyche etc. into oblivion. Though operators have the requisite expertise technically and financially to provide cheaper telecom service, TRAI is there only to make it costlier. e.g. BSNL and RELIANCE . If they could offer cheaper telecom services them, TRAI should not prevent them in the name of ’PREDATORY PRICING ’. It’s appropriate time to review the role of TRAI and other Statutory Regulatory bodies by the public forum and parliament as well, rather than giving it a free reign to act on this way to the tune of certain players. 22
On April 25, 1997, the recently constituted Telecom Regulatory Authority of India (TRAI) gave its first judgment -- a landmark one, delivered with speed and style. This judgment and its no-nonsense approach could well set the stage for things to come. TRAI quashed DoT’s (Department of Technology) order of January 29, which had sought to hike rather steeply, the price of calls made by users of ordinary fixed line phones to cellular subscribers in the non-metro areas. Even the cellular operators, whose stand was accepted by the TRAI, would accept privately that the respondent DoT was poorly served by many of its officers and lawyers who were entrusted with the task of representing DoT’s case. They seemed to have cut a very sorry figure before TRAI, ignoring or not being prepared by reading pertinent papers, such as tender documents, the clarifications offered to would-be bidders, or the correspondence that DoT was having with the operators later. Since the tender documents mentioned that tariffs would be the same for circles and metros, it would have made sense for DoT to seek legal advice on how to correct a mistake, if that is what it was. An appeal to TRAI could perhaps have been recourse, as the body is in charge of tariffs. Fixed line users pay local call rates when they dial a cellular number in the four metros (Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically the same as states) would be charged Rs10 per call for the same facility, if the DoT order in question had not been quashed. DoT had raised current rates on grounds that such charges were low and allowed users in the circles which are much larger than metros, to make long distance calls without paying STD charges. On the face of it, DoT is entitled to want to change this state of affairs. But in trying to correct one injustice to itself, it managed to inflict several on the users and other service providers. The cellular operators lost no time in going to the courts, since TRAI did not then exist. The courts in turn took an enlightened decision to pass the matter on to TRAI on March 3, as the body had been formally constituted by then.
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TRAI took a few weeks to give its judgment and ruled against the Department of Telecom. The body was not persuaded about the justness of DoT’s order. Nor was TRAI particularly impressed by the operator’s contention that DoT was not authorized to raise these tariffs. The judgment clearly says that the order of DoT to raise the tariff was passed before the TRAI was formally constituted and during the said period in question, the DoT was the sole body with the power to amend tariffs.
Mission To ensure that the interests of consumers are protected and at the same time to nurture conditions for growth of telecommunications, broadcasting and cable services in a manner and at a pace which will enable India to play a leading role in the emerging global information society. Function of Telecom Regulatory Authority of India
Functions of TRAI 1. Recommendatory Functions Need and timing for introduction of new service provider Terms and conditions of licence to a service provider Revocation of license for non-compliance of terms and conditions of license Measures to facilitate competition and promote efficiency in the operation to facilitate growth in industry Technological improvement in services by service providers Inspection of type of equipment used by service provider Efficient Management of available spectrum 2. Mandatory Functions
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Ensure compliance of terms and conditions of license Fix the terms and conditions of their inter connectivity between service providers Ensure Technical compatibility and effective inter-connection between different service providers. Regulate arrangements for sharing of revenues amongst service providers Lay-down the standards of QoS to be provided by service provider,ensure this by periodical survey Lay-down and ensure time period for providing local and long-distance circuits of telecommunication between different service providers
3. Other functions Levy fees and other charges as determined by regulations Perform administrative functions as entrusted to it by Central government or as per TRAI act Notify in Official Gazette the service rates and message rates within and outside India
Major Players in different segments of Indian telecom industry
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Basic Services Operators
GSM Services Operators
BSNL
Airtel
MTNL Vodafone Reliance Idea
TTSL
Reliance
BSNL
Internet Services Operators
CDMA Services Operators
BSNL Reliance
MTNL TTS Reliance
TTSL
Airtel
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Airtel
Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest and world's third largest cellular service provider with more than 82 million subscribers as of December 2008. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. SingTel owns over 30% of the Bharti Telecom. Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister company of the brand. Airtel is a brand of telecommunication services in India and Sri Lanka owned and operated by Bharti Airtel. It is the largest cellular service provider in India in terms of number of subscribers. Services are offered under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise
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Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population.
VISION AND MISSION OF THE COMPANY
-:Vision:• First private telecommunications company to launch long distance services. • Benchmarked by more business • Targeted by top talent • Loved by more customers • By 2010 Airtel will be the most admired brand in India
-: Mission:• We will meet the mobile communication needs of our customers through Error- free service delivery • Innovative products and services • Cost efficiency • Unified Messaging Solutions
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Idea
Idea Cellular Limited (“Idea”) is a leading mobile services operator in India. Idea has a subscriber market share of 19.3 % in its 8 established service areas, and 12.9 % in its 15 operating service areas. After inclusion of Spice Communications, brand !dea has 47.1 mn subscribers, corresponding to a 11.0% national subscriber market share as on June’09. A. Promoter Group Idea is part of the Aditya Birla Group, India's first truly multinational group. The Group has businesses in sectors ranging from metals, garments, cement, fertilisers, life insurance and financial services among others. Over half of the Group’s revenues are derived from overseas operations. The group operates in 25 countries, and is anchored by an extraordinary force of over 130,000 employees belonging to 30 nationalities. The current Group holding of 49.13% in Idea is made up of; Aditya Birla Nuvo Ltd. Birla TMT Holdings Pvt. Ltd. Hindalco Industries Ltd. Grasim Industries Ltd. IGH Holdings Pvt. Ltd. Total
27.02% 9.15% 7.37% 5.52% 0.08% 49.13%
B. Key Shareholders 29
AXIATA Group Berhad (previously TM International Berhad), through its affiliates, has 14.99% shareholding in Idea Cellular, and a 49.0% holding in Spice Communications. With the proposed merger of Spice Communications into Idea Cellular, the Axiata Group holding in Idea Cellular would increase to around 20%. AXIATA has controlling stakes in its affiliates in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, and significant stakes in India and Singapore. India and Indonesia are among the fastest growing markets in the world. As of March 2009, the Group has close to 94 million mobile subscribers in Asia, and provides employment to over 25,000 people in 10 countries. Providence Equity Partners, through its affiliates has a 10.6% shareholding in Idea, and has also invested INR 20982 mn in ABTL through Compulsorily Convertible Preference Shares. C. Mobile Coverage Area Brand !dea covers 17 telecom service areas, viz, Maharashtra & Goa, Gujarat, Andhra Pradesh, Madhya Pradesh & Chhattisgarh, Delhi, Kerala, Haryana, Uttar Pradesh West & Uttaranchal, Uttar Pradesh East, Rajasthan, Himachal Pradesh, Mumbai, Bihar & Jharkhand, Orissa, Tamil Nadu, Punjab and Karnataka, covering ~ 90% of the all India subscriber base Of these, the 3 service areas of UP East, Rajasthan and Himachal Pradesh were rolled out during Sep-Nov’06, while the 2 service areas of Mumbai and Bihar became operational during Aug-Oct‘08. The service areas of Punjab and Karnataka were added through Spice w.e.f October 16, 2008. Brand !dea has extended it coverage to Orissa service area in April’09 and the Tamil Nadu service area (excl. Chennai) in May’09. Services in Chennai were launched in July’09.
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Vodafone
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 20 circles with over 54.63 million customers. Vodafone is the world’s leading international mobile communications company. It now has operations in 25 countries across 5 continents and 40 partner networks with over 269 million customers worldwide. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market.
Market Strategy of Vodafone •
Our strategic objective is - Innovate and deliver on customer’s total communications needs.
•
Vodafone too, needed to educate consumers about cellular telephony:- Can I call std? - Can I use my phone in a lift? - what is airtime?
Commercial Strategy of Vodafone 31
•
Rebranding - Stores - Mass media coverage
•
Innovative distribution to reach the customer - Exclusive shops - Hub and spoke - Associate distributions
•
Customer service - Shops and call centers - Vans - Help desks
BSNL 32
(BHARAT SANCHAR NIGAM LIMITED)
BHARAT SANCHAR NIGAM LIMITED (BSNL) was formed on October 1, 2000 by corporatisation of the erstwhile Department of Telecom operation & Department Telecom Services. The company has taken over the erstwhile functions of the Department of Telecom in respect of provision of telecom services across the length and breadth of the country excluding Delhi and Mumbai. BSNL has one of large base of skilled work force of around 3.0 lakh as on March 31, 2008. BSNL is a 100% Govt. of India owned Public Sector Undertaking. BSNL is a technology-oriented company and provides all types of telecom services namely telephone services on landline, WLL and mobile, Broadband, Internet, leased circuits and long distance telecom Service. The company has also been in the forefront of technology with 100% digital new technology switching network. BSNL nation-wide telecom network covers all District headquarters, Sub-Divisional headquarters, Tehsil headquarters and almost all the Block Headquarters. Telecommunications is a basic infrastructure along with power and transportation and is thus recognized as the means for accelerating the economic growth in all the regions including remote and inaccessible areas in the country. Telecom in the modern world is expected to usher a concept of global economy and single world market place. BSNL telecom network, therefore, is part of modern global network, providing access to countries around the world for transporting information in the form of voice and data.
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INTELLIGENT NETWORK With the commissioning of 5 new technology IN Platforms (4 r General-Purpose and 1 Mass Calling), IN Services are available throughout the country. Various IN services being offered by BSNL are ITC & Call Now (Prepaid Calling Cards), ACC (Account Card Calling), FPH (Free Phone), UAN (Universal Access Number), PRC (Premium Rate Calling), Voice VPN (Virtual Private Network), UPN (Universal Personal Number) & Tele-voting & Fixed line Pre-Paid (FLPP) Service. Tele-voting service is provided by BSNL's Mass Calling IN platform at Hyderabad to programs such as 'Indian Idol', "Kaun Banega Crorepati" (KBC)", "Sa re gama" etc. Fixed Line Pre-Paid (FLPP) telephony service for PCOs is available. FLPP Pre-paid over Post- paid service is available on telephone connections. Combined Voice VPN including BSNL landline, BSNL CellOne & MTNL landline is available. BSNL has signed an interoperability agreement for making available BSNL's Toll and UAN service through network of almost all the private operators. Online sale of Pre-paid cards of IN services is available.
Achievements during 2008-09 Sl.
Parameter No.
Unit Nos.
Achievement during 2008-09 22,05,865
Status as on March 31, 2009 2,93,46,431
1
Wire line Connections
2 3 4 5
WLL connections Mobile Connections Broadband Connections Internet connections
Nos. Nos. Nos. Nos.
8,55,306 1,05,02,156 15,35,035 1,31,091
54,33,038 4,67,11,196 35,57,471 36,93,423
34
Reliance Communication
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was permitted to provide only “limited mobility” services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator. It now wants to increase its market share and has
35
recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market.
Tata Teleservices
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as well. The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new licenses, coupled with the six circles in which it already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm. The company hopes to start off services in these 11 new circles by August 2004. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.
36
List of Related figures Market Share of GSM & CDMA
Market Share of GSM Players
37
Market Share of CDMA Players
Market Share of All Players (Over all and Rural)
38
Subscriber Growth
Tele Density
Year
Urban Tele Density
Rural Tele Density
1999
2.33
0.58
39
2000
2.86
0.68
2001
3.58
0.93
2002
4.29
1.21
2003
5.11
1.49
2004
7.02
1.55
2005
8.95
1.73
2006
12.74
2.34
2007
18.22
5.89
2008
26.22
9.46
2009
36.98
15.11
RESEARCH OBJECTIVES
Research objectives include the objective of research of the researcher before starting any research. The researcher should determine the objective or the goal of the research for the smooth functioning of study. Predetermine objective should be of such that researcher fulfils in the certain period of time at minimum cost.
Following are the research objectives, which we have developed…
To determine the factors which influence the purchasing behavior of mobile connection. To determine the marketing process elements which influence the purchasing
behavior of mobile connection. To understand the improvement and customer preference in telecom services.
40
To study customer satisfaction and understand the current market scenario in telecom sector.
Approach to the Problem
Theory Development:
To identify the determinant factors regarding purchasing behaviors of mobile connection that could improve the efficiency to get the customers or make the customers switch from the competitors’ products, I have initially identified some variables, which are significantly correlated with the purchase of mobile connections. When a customer decides to purchase a mobile connection, he normally considers tariffs, promotional activities, celebrity involvement, brand image, value added services, network, switching cost, after sales services, word of mouth, availability of complementary products and marketing mix. So buying a mobile connection is based on the simultaneous activation of these variables. These variables are to be described under the descriptive research. Non probability sampling technique (convenience sampling technique) has to be used. Then I will use T test, frequency distribution, graph and cross tabulation methods to analyze the data and then finding will be interpreting with the existing body of knowledge. When a customer decides to purchase a mobile connection, he normally Considers 1. Technology 2. Tariffs 3. Promotional activities 4. Celebrity involvement 5. Brand image
41
6. Value added services 7. Network 8. After sales services 9. Availability of complementary products
Model Development:
Need for communication with relatives/people
Status Factor in Society
Drive for immediate solution. Drive for immediate solution leads to immediate purchase of mobile connection
Purchasing decision making based on some determinant factors
42
Specific mobile connection has been purchased and met the satisfaction
Research Design
Types of Research to be undertaken: Among the different types of researches I have chosen Descriptive research for this project. I have gone to conduct this project base on Descriptive research technique because I want to test the significant level of the particular factors. Among two types of Descriptive research techniques I have gone for Cross-Sectional design because I have wanted to collect data from the sample of population element only for one time. From Cross-Sectional designs I have taken Single cross-sectional design to carry out my research. (a) Primary Data Collection Method: Survey method was used for primary data collection. We used questionnaire as an instrument for survey method. Structured questionnaire. (b) Secondary Data Collection method: 43
Information from Related Peoples. Information gathered from Different Sites of the companies. Information gathered from TRAI Website. The nature of the research is basically of two types. • Basic Research • Applied Research “Basic Research is that intended to expand the body of knowledge in a field or to provide knowledge for the others.” “Applied Research is carried out for solving of a particular problem or for guiding a specific decision, and usually its results are private.” “Basic Research is generally for common purpose and Applied research is for specific purpose.” Here the nature of the research is basic. The sources for data collection are both primary and secondary data sources.
Survey method: Among four types of survey methods I have chosen the appropriate one that suited my research objectives. I have chosen the personal survey techniques. From the personal techniques I have selected mall intercept technique. According to this technique I have needed to go directly to my sample unit and got the questionnaires filled. I have chosen Mall intercept survey technique because it has higher Flexibility for data collection, Diversity of questions, Response rate, and Social desirability. And also it is higher in Control of data collection environment and moderate Use of physical stimuli.
44
Scaling Method: Since I have conducted descriptive research, I have chosen non-comparative scaling technique because I have wanted to measure the influence of each and every factor on the purchasing behaviors of the target market separately. Only by Non-comparative scaling technique it can be done. And among two types non-comparative technique I have used itemize technique and from three itemize techniques I have taken Likert scaling which range from 1 to 5 point scale. Because I have wanted to do my research based on five dimensions which have been strongly disagree, disagree, neutral, agree and strongly agree.
Questionnaire development: First of all I have given the introduction. I have just introduced myself and the reasons why I am collecting data. Then I have given assurance that your information will be kept confidential. I have gone for screening and then I have prepared the body of the questionnaire. Lastly I make respondents profiles. Questionnaires have been structured questionnaires based on non comparative scales techniques.
Sampling Technique: In case of my research my target population has been the students and the general people of the Ahmedabad city. The students and general people who are using the mobile connection or intended to purchase the mobile connection have been sample unit. I have conducted my research through non-probability sampling techniques and among non-probability sampling techniques I have gone for convenience sampling technique. Most importantly as it is an academic research it lacks money and time. That’s why for administering this research, the sample size has been 50. Then I have 45
carried out the research by myself very efficiently and accurately to come to an end with a solution of the marketing research problem statement.
Field work: Field work is a general descriptive term for the collection of raw data. In the professional research, research firm use its own people or external people to collect data for the sample. Since it is an academic and individual research I myself have to go and collect the data from the respondents. I have gone to the people in the Ahmedabad city and get the questionnaires filled.
Limitations Of The Study: Reluctance on the part of the respondents to provide exact details. Sample size may not sufficient.
Chance of sampling mistake.
Sample size: During the project study we attached to near about 400 people of Ahmedabad. These people belongs to the different parts of the city.
Assumptions: 1) The area selected is assumed to represent whole universe of Indian rural telecom market.
46
2) Data collected are assumed to be bias free from side of respondents, interviewer or any other mediaries. 3) Whole research and analysis part based on data collected is carried out under
unbiased environment and without any influence of any factor which can lead to deviation in result.
Data Analysis (Methodology)
Sampling Sample Size
: 200 47
Sample Frame
: Ahmedabad City
Sampling Method : Simple Random Sampling Constraints
: Time, No. of respondent, Biased opinion
Sampling Error
: Response - 172 Non-response - 28
Survey
: Questionnaire
Observations
1. Age and Gender : Normally consumers’ needs and wants change with age. There are certain types of mobile connection which attract different types of aged people as well as different sex. There some mobile connection (packages) which adopted by male people and there are some mobile connection (packages) which get adopted by female people.
10-20 21-40 More than
36 106 30
48
40 1: Total samples (Age group)
17 %
21 %
62 %
According to the above bar diagram, among 100% respondents, These respondents have informed their choosing factor for purchasing mobile connection. Form their responses I will be able to understand the various aspects of my research topic.
Male
102
Female
70
2: Total samples (Gender Wise)
49
According to Graph-2 the majority of the respondents are male. Among 100% respondents, male is % and female is %.
2. Marital Status: Consumption and expectations on mobile from consumers changes according to the marital status. The consumption tactics of consumer depends on how they handling their relations. Single & married perceptions are different from each other.
Single Married
110 72
3: Total samples (Marital Status) 50
3. Working Status:The purchasing behaviors depend on the occupation of the individuals. For My research I am simply interested about public service, private service, student, Housewife and for making my questionnaire non force I have kept an option blank. Student House Wife Public service Private service Businessman
80 13 8 19 52
4: Total samples according to working status
51
30.5 %
46
11
7.5 5%
Among 100% respondents, % students, % are private service holders, % are public service holders, % is housewife and % businessman. 4. Educational Qualification:
Under Graduate Graduate Post Graduate Others
55 48 69 0
5: Total samples according to educational status
52
5. Service Provider
BSNL Airtel Vodafone Idea Reliance Tata Indicom Others
27 24 46 33 34 6 2
6: Total Service Provider (% wise) 53
3.5 %
1.2 %
15.6 %
20
14
19 %
26.7 %
6. Time spend : Time spend with mobile connection shows how much customer is satisfied with their connection. This shows the level of post purchase services of telecom giants. 0 – 3 Months
0
4 – 6 Months
5
7 – 12 Months
18
1 – 2 Year
24
2 – 3 Year
69
More than 3 Years
56
54
7: Total time spend by subscribers
3 %
10.5 %
32.5
14 %
40 %
7. Who influences most, the decision to purchase a telecommunication service in your family? This particular question helps companies to identify their current marketing strategies position. According to the answers companies can identify the segments whom they have for purchase intent. Self Spouse Parents Children Friends Salesman
72 9 27 13 45 6
8: Purchase influence factors of subscriber
55
8. What advertising media has influenced you in choosing a telecom operator? This particular question targets the medium of advertisement. Shows which medium stands where according to awareness towards consumers. Print Media Radio Television Road side
28 13 80 7
Advertisement Word-of-Mouth
44
9: Affect of Advertisement on Telecom Purchase
56
Print Media
9. How much you invest monthly on your phone? Up to Rs.500 Rs.501 – Rs.1000 Rs. 1001 – Rs.1500 More than 1500
76 54 30
12
10: Monthly investment on phone
57
10.
Do you prefer online payment through your mobile service
provider?
Yes No
37 135
11: Chart showing Online payment statics
58
11. What do you think about the competition in the market?
No Choice Some Choice Enough
29 40 87
Choice Can’t Say
16
12: Chart showing market competition state according to customers
59
12. Given a choice with same number which service provider will you select? Airtel Reliance Vodafone BSNL Idea Tata No change
8 18 8 1 6 3 128 13: Preference to alternatives
60
Near about 75% of customers not interested in changing their service providers. This is a positive sign for companies. More the consumer satisfied more they became loyal to company. Reliance has other positive signs as most want to switch over to it. So this may increase it’s market share in near future.
13. How long do you have to wait in customer care?
Up to 1 Minute 2 Minutes 3-5 Minutes
83 34 30 61
6-10 Minutes 11 Minutes or
23 2
more
14: Performance of customer care in eyes of customers
14. What kind of expectations do you have with your service provider?
Price Voice Clearity Network Good Services
42 9 58 63
62
15: Expectations from service providers
15. What is your purchase intent for news alerts on mobile phone?
Astrology Sports Business General News Entertainment
2 42 40 23 132
63
16: Purchase intent from mobile phone
16. Are you aware of the role of the telecom services in providing broadband without using cable network? Yes No
130 42
64
18. Are you aware of 3-G technology? Yes No
105 67
65
Hypothesis 66
1. Customers are self driven while purchasing a mobile connection.
2. Print media is the most effective advertisement medium which influence the customer to purchase a mobile connection.
3. Television is the most effective advertisement medium which influence the customer to purchase a mobile connection.
4. There is some choice in the market for telecom service providers.
T – Test
H0 : Null Hypothesis H1 : Alternative Hypothesis S : Standard Deviation
α : Significance level df : Degree of freedom a)
H0 : Customers are self driven while purchasing a mobile connection. H1 : Other factors drive customers to purchase a mobile connection. The significance level is alpha=0.05 Using the data in our database, calculate the test statistic. 67
Using excel, we get Sample size Sample mean S Standard error Null hypothesis
172 28.66 1.76 0.13 72 0.05 171 -3.23 1.65 Accept H0
α df t test statics lower value Decision
Since the null hypothesis is accepted so we can say that costomers are self driven while deciding the purchase of mobile connection.
b)
H0 : Print media is the most effective advertisement medium which influence the customer to purchase a mobile connection. H1 : Print media is not the most effective advertisement medium which influence the customer to purchase a mobile connection. The significance level is alpha=0.05 Using the data in our database, calculate the test statistic. Using excel, we get
68
Sample size Sample mean S standard error null hypothesis
172 34.4 1.78 0.14 28 0.05 171 0.47 -1.65 Reject H0
α df t test statics lower value Decision
Since the null hypothesis is rejected so we can say Print Media is not the perfect communication medium between customers and mobile service providers.
c)
H0 : Television is the most effective advertisement medium which influence the customer to purchase a mobile connection. H1 : Telivision is not the most effective advertisement medium which influence the customer to purchase a mobile connection. The significance level is alpha=0.05
Using the data in our database, calculate the test statistic. Using excel, we get
69
Sample size Sample mean S standard error null hypothesis
172 34.4 1.78 0.13 80 0.05 171 -3.36 -1.65 Reject H0
α df t test statics lower value Decision
Since the null hypothesis is rejected so we can say Television is not the perfect communication medium between customers and mobile service providers but it the best way one can attract the customer (According the data collected).
d)
H0 : There is some choice in the market for telecom service providers. H1 : There is no choice in the market for telecom service providers. There is enough choice in the market for telecom service providers. The significance level is alpha=0.10 Using the data in our database, calculate the test statistic. Using excel, we get
70
Sample size Sample mean S standard error null hypothesis
α Df t test statics lower value Upper value Decision
172 43 0.87 0.06 40 0.1 171 .45 -1.65 1.65 Reject H0
The null hypothesis is rejected. It is a two tailed taste. So according to customers in the market there is enough choice in the market for telecom service providers.
Table : Null Hypothesis and their acceptance level
S.N0.
1. 2.
3. 4.
Null Hypothesis
Customers are self driven while purchasing a mobile connection Print media is the most effective advertisement medium which influence the customer to purchase a mobile connection Television is the most effective advertisement medium which influence the customer to purchase a mobile connection There is some choice in the market for telecom service providers
Findings: 71
Acceptance level
Accept H0 Reject H0
Reject H0 Reject H0
Total Analysis:
Nowadays telecommunication sector is very competitive. Here every telecom company has to strive to get the prospects as many as possible. Every company uses different tools to persuade the target markets to buy the products. They conduct market research very often to know about the choices of the target markets. I also come up with important findings after conducting a research. The target markets are influenced by Promotional activities for purchasing behaviors of mobile connection. But target markets are not basically concerned about Celebrities for buying the mobile connection. They do not get influenced by promotional activities which include classical conditioning rather they get influenced by the promotion which include operant conditioning. They give less importance on promotional activities than other marketing mix such as products, distribution, price, process etc. The target markets of the telecom industry seriously think of the tariff and put more importance on the tariff than any other factors. They can even tolerate interrupted network service to some extent as they put more importance on the tariff than network. They have chosen tariff as a most important factor to by mobile connection than brand image. Target markets do value complementary products’ availability. Target markets have chosen availability of complementary product over network. It means that the target markets go for that product which complementary are widely available regardless the network condition. According to target markets network is important factor to purchase the mobile connection but not as important as tariff. But target market put importance on network than brand image. Customers seriously consider the word of mouth. They rather prefer it than any promotional activities. After sale Services and value added services are the important factor to target market for purchasing the mobile connection. Target markets generally think of switching cost before purchasing a particular mobile connection. One interesting finding is that target markets do not generally concerned about Brand image. 72
After relating occupation with other important marketing research question the following findings has been found-
1. Among respondents Public service holders are the most sensitive towards to tariff price 2. Student and Housewife value the celebrities for purchasing the mobile connection. 3. Students and private service holders are concerned and value the brand image
for purchasing the mobile connection. 4. In case of word of mouth, Students, housewives, private service holders value it
for purchasing the mobile connection. 5. Public service holders, Students and housewives are highly influence by any discount, free sampling, rebate for purchasing the mobile connection. 6. Private Service holders are most concern about network for purchasing the
mobile connection.
Company wise Analysis: 73
a)
Airtel-:
1. Most of the company’s customers are driven through the ads on Television and Print Media. So more focus on these medium will beneficial. 2. 3 out of 24 customers want to switch to other operators and 8 want to join it. So good positive signs to company. 3. Customer wants affordable price, good services and network availability. 4. Company should focus on news alerts related to Sports, Entertainment and Business. 5. Fair chances in Broadband Services.
b)BSNL 1. Not popular in the age group of 10-20. Most popular in higher age group. 2. Brand endorsement is working for company (Most influenced by television ads). 3. Mostly used for Broadband Services. 4. Voice clarity in between the calls is a issue company should focus. 5. Need to enhance VAS. 6. Switch over to other operators is a threat to company.
74
c) Reliance 1. One of the fast growing service operators. As most want to switchover to it. So a bright future is waiting. 2. Television and word of mouth working to boost sale. 3. Entertainment as a VAS generating good revenue. 4. Customers are price conscious so there should be a tight eye on it. This the feature attracting most of the customers.
d)
Idea
1. In the city it is the most loved GSM operator. Popular in each age group and in
every working status sample. 2. Customer wants better services from the company as 20 out of 33 has expectations of Good Services. 3. Some times Customer care may frustrate customers. 4. Sports and Entertainment as VAS generating high revenue.
e)
Vodafone 75
1. Most trusted Mobile brand in city. As 27% customers trust the brand. 2. Most popular in Age group of 21-40. 3. Zoo Zoo magic works in city. Satisfaction of customers is strength to the company. 4. Customers have expectations in price, network and good services are coming as a priority and can be a major factor in near future. 5. Reliance communication is a big threat to company as it growing fast in price war period. 6. Like others Entertainment is a most revenue generating VAS.
f) Others
1. Not a good presence in the city. But arrival of new service operators may change the current scenario. 2. Television, Print media and Radio should be focused as advertisement medium. 3. As low prices boost Reliance Communication market in the city TATA Teleservices should catch this opportunity as they are the initiator of the price war in the country.
Conclusions and Recommendations: 76
After talking to decision makers, taking interview of experts I have developed a management decision problem statement. Then I have developed Marketing research Problem. And from the marketing research problem I have identified some factors that influence the behaviors of mobile connection. The specific components have beenMarketing process, Technology, service ability switching cost etc. I have developed the research questions and finally I have developed the Hypotheses from the research question. Then I have gone for Descriptive research and among different descriptive researches I have taken single cross-sectional design. And among deferent methods I have chosen in-home survey method. My target population has been the citizen of the Dhaka city who are a customer or future prospects of mobile connection. The sampling technique I have used has been convenience sampling technique. I have used Likert scaling technique and finally I have analyzed one sample t test and cross tabulation to relate two variables. Then I have carried out the research. After analyzing the hypotheses I would like to offer some recommendation to influence the decision of mobile purchasing of the target market.
1) The operator should focus on the tariff because target markets are still concerned about tariff than any other factors for purchasing mobile phone. Tariff is still the most dominant factor for purchasing the mobile connection. 2)
Among different types of promotional techniques, target markets value the promotions those contain operant conditioning. Target markets put more
importance
on
promotional
activities
that
contain
operant
conditioning than those contain classical conditioning such as celebrities. So mobile operator must keep on providing rebates, discounts, free offer etc.
77
3) The brand image is still less important to target markets than tariffs. So the mobile operator must build strong brand image so that target markets do not think much about tariff. 4) The complementary products must be available. 5) Network is also concern of the target markets. But target market can consider some disruption for the lower tariff. 6) Word of mouth influence the purchasing behavior of the target market so mobile operator should adopt some tactic to promote word of mouth promotion. 7) Mobile phone operators should launch multiple promotional activities to attract or meet different needs of different segment. They can go for promotion with operant conditioning for students or housewives segment to force them to buy the products. 8) Mobile operator can highlight the brand image for its products to students and private service holders as students and private service holders value brand image for purchasing the mobile phone.
Companies should be careful while selling product to the segment of public service holder because they are most price sensitive customer among the target markets.
78
List of figures S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Title Journey of telecom sector……......... Subscriber In different areas VAS Challenge Major Players…………………….. Market Share of GSM and CDMA Market Share of GSM Players Market Share of CDMA Players Market Share of All Players Subscriber Growth Model Development Total samples (Age group) Total samples (Gender Wise) Total samples (Marital Status) Total samples according to working status Total samples according to educational status Total Service Provider (% wise) Total time spend by subscribers Purchase influence factors of subscriber Affect of Advertisement on Telecom Purchase Monthly investment on phone Chart showing Online payment statics Chart showing market competition state according to customers Preference to alternatives Performance of customer care in eyes of customers Expectations from service providers Purchase intent from mobile phone
Questionnaire 1. Respondent Name:
Mr
Ms
Full Name ______________________________________ 2. Age Group 1
10-20 79
Page No. 11 16 20 25 36 36 37 37 38 40 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62
. 2
21-40
. 3
More than 40
. 3. Marital Status:
Single
4. Working Status:
Married
Student;
House-Wife;
Public service;
Businessman;
Private service; 5. Educational Qualification: Under Graduate
Graduate
Post Graduate
Professional Others: ____________ 6. Presently you are availing services from which operator (Tick more than one, if applicable): BSNL
Airtel
Idea
Virgin
Vodafone
Reliance
Tata Indicom
g) Time you spend with your current connection (Approx)
1.
0 – 3 Months
2.
4 – 6 Months
80
3.
7 – 12 Months
4.
1 – 2 Year
5.
2 – 3 Year
6.
More than 3 Years
8. Who influences most, the decision to purchase a telecommunication service in your family? Self
Spouse
Parents
Children
Friends
Salesman 9. What advertising media has influenced you in choosing a telecom operator? Print Media;
Radio
Road side Advertisement
Television Word-of-Mouth
10. How much you invest monthly on your phone? Up to Rs.500
Rs.501 – Rs.1000
Rs. 1001 – Rs.1500
More than 1500 11. Do you prefer online payment through your mobile service provider? Yes
No
12. What do you think about the competition in the market? No Choice
Some Choice
Enough Choice
Can’t Say
13. Given a choice with same number which service provider will you select? Airtel
Reliance
Idea
Tata
Vodafone
BSNL
Vergin 14. How long do you have to wait in customer care? Up to 1 Minute
2 Minutes
3-5 Minutes
6-10
Minutes 11 Minutes or more 15. What kind of expectations do you have with your service provider? 81
Price
Voice Clearity
Network
Good Services
16. What is your purchase intent for news alerts on mobile phone? Astrology
Sports
Business
Entertainment
General News 17. Are you aware of the role of the telecom services in providing broadband without using cable network? Yes
No
18. Are you aware of 3-G technology? Yes
No
19. Rank the following attributes in the order you service providerAvailabili ty
Networ
Voice
Talk
Call
SMS
Billing
Schem
Value
k
clearity
time
charge
servic
syste
e
Added
e
m
and Validity
(In the analysis part we didn’t include the Q. 19 because it became tough for respondents to answer it.)
82
Services
BIBILOGRAPHY 1)
Reports a. TRAI 2008-09 b. Telecom Sector annual report 2008-09 c. Idea Unaudited results Q1 FY 10 d. Department of telecommunication Govt. of India Annual Report 2008-09
2)
Articles a. Business Standard b. Times of India c. Idea press release d. Airtel press release e. RCom press release f. The Economic Times
3)
Websites a. www.trai.gov.in b. www.dot.gov.in c. www.coai.com d. www. Ideacellular.com
e. www.airtel.in f. www.vodafone.in g. www.rcom.co.in h. www.teleservices.com
83
List of Abbreviations used
3G
Third Generation
ARPU
Average Revenue Per User
BSN
Bharat Sanchar Nigam Limited
CDMA
Code Division Multiple Assay
COAI
Cellular Operators Association of India
DoT
Department of Telecommunication
GPRS
General Packet Radio Service
GSM
Global System of Mobiles
MTNL
Mahanagar Telephone Nigam Limited
NGN
Next Generation Network
QoS
Quality of Service
SMS
Short Messaging Service
TRAI
Telecom Regulatory Authority of India
VAS
Value Added Services
84
