LAL BAHADUR SHASTRI INSTITUE OF MANAGEMENT NEW DELHI
“CUSTOMER RELATIONSHIP MANAGEMENT AND SERVICE DELIVERY AND QUALITY IN TELECOM SECTOR i.e. IDEA CELLULAR LTD (GSM)” Presented in partial fulfillment for the award of the Post Graduate Diploma in Management -VI Trimester By Abhishek Mitra(25/2008) PGDM Evening
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CERTIFICATE This is to certify that the Summer Project work on “CUSTOMER RELATIONSHIP MANAGEMENT AT IDEA CELLULAR LTD.”, is an original work and this work has not been submitted to SriSIM or elsewhere in any form. My Indebtedness to other works/publications has been duly acknowledged at the relevant places. The Project work was carried during 14/05/2007 to 29/06/2007 in IDEA CELLULAR Ltd. (ADITYA BIRLA GROUP).
Date:
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PREFACE When CHARLES DARWIN spoke of “the survival of fittest”, he could have been speaking of the cut throat competition of today’s market and Corporate ambition. Such is the rat race that PROFIT is becoming an Obsession.
I got an opportunity to do my project, in “IDEA CELLULAR Ltd.” where I was allotted the project entitled “CUSTOMER RELATIONSHIP MANAGEMENT”.
The work was carried out over a span of 52 days. The first part of the project was to understand the concept of TELECOM INDUSTRY, (GSM) and conduct a survey, in order to trace out the prospective competitors in this business.
The second part of the project was carried out by meeting Channel partners and corporate customers (COCP) and direct walk in customers who use to come with their queries at the customer care center located at the circle office by handling their problems and understanding their customer type and give them a quality service. Each chapter in this report is organized to provide clarity and continuity.
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ACKNOWLEDGEMENT Here I have an opportunity to thank all those in “IDEA CELLULAR Ltd.” with whose direct or indirect help and cooperation my project has become “A Great Success”.I would like to place on records my sincere thanks to Mr. Abhishek Gupta, Zonal Office Head of U.P (W) zone at IDEA CELLULAR Ltd. for giving me an opportunity to work under his supervision as a summer trainee in the company. My sincere gratitude to Mrs. ANUBHUTI, CUSTOMER RELATIONSHIP MANAGER and Mr. MOHIT GUPTA, CORPORATE SALES
MANAGER
for
their
constant
support,
guidance
and
encouragement, With their unrestricted bank of Knowledge, all through successful Completion of my Project. I would also like to thank Dr. C.V.Ramanan, Director of Srisim for his unrestricted help and guidance all through the duration of my Project. This project report could not have been completed without the Guidance of our Programmer Coordinator, Mr.RITESH KUMAR and My faculty guide Ms. CHANDRASENA MUKHERJEE and Ms. PRATIMA SHARMA. Last but not the least I would like to thank all those who have directly or indirectly helped me in the successful completion of my project.
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TABLE OF CONTENTS PAGE 1. PREFACE 2. ACKNOWLEDGEMENT 3. EXECUTIVE SUMMARY 4. OBJECTIVE 5. RESEARCH METHODOLOGY 6. OVERVIEW OF TELECOM INDUSTRY 7. COMPANY PROFILE 8. TARIFF PLANS 9. OVERVIEW ON CUSTOMER RELATIONSHIP AND SERVICE DELIVERY 10. COMPETITIORS ANALYSIS 11 PROBLEMS FACED BY CUSTOMERS AND THEIR REDRESSAL 11. SWOT ANALYSIS 12. RECOMMENDATIONS 13. CONCLUSION 14. BIBLIOGRAPHY
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Executive Summary
Globalization is the crux reality of 21st century. We are in an Era of innovations, fast changing technology, good customer service and proactive smart marketing. All this and more pave an organization’s way to global success in this highly competitive world economy. Marketing is indeed one of the most important aspects of organizational success.
As a young aspiring marketer I undertook a project, which was all about understanding customers and how to maintain good and healthy relations with them by delivering quality service in telecom industry (GSM). This is through telecom industry only we have come so close to each other, wherever we are we can share all are joys and sorrows within no time. As IDEA CAN CHANGE YOUR LIFE. CUSTOMER HANDLING is one of the most complex, difficult and at the same time one of the most valuable business as the market place in which we operate is becoming more demanding and competitive day by day. In order to have a good market share in telecom industry provided with the following assignments: -
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To conduct meetings with customers to analyze their problems and assure them for their resolutions by forwarding their requests. To conduct a survey to know different competitors available in telecom market. To know WHAT’S IN in telecom industry and WHAT’S OUT by conducting a survey to understand customer’s aspirations for future. To understand why customers leave the network by analyzing problems faced by them through personal meetings and trying to retain them. In the span of 45 days I have done two projects. One main on customer relationship management and it comprises of above assignments. The subsidiary project was regarding service delivery and quality, how it works, different stages, SDQ staff recruited by idea cellular. I learned about different competitors of Idea Cellular Ltd. and their competitive advantage over each other’s. In what ways their offerings are converting into customer delight in turn leading to customer loyalty. Swot analysis of idea cellular helped me in analyzing the areas where idea cellular needs to focus
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proactively for customer retention. Beside reasons for customer loyalty I also got an understanding of brand switching behavior in this industry. Interaction with channel partners helped me in understanding customer expectations. Customer preferences, distributors as company member in building customer loyalty. It helped in drawing a conclusion the future trend of this industry from customer relationship management prospective. .
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OBJECTIVES
MAIN OBJECTIVES: To make a comparative study of IDEA CELLULUR Ltd. against it’s competitors.
To make the corporate customer aware about the product portfolio offered by IDEA CELLULAR Ltd.
To recommend respective improvement and particularly focus on those problems, which need immediate attention.
To understand future trend of this industry from Customer Relationship Prospective.
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SECONDARY OBJECTIVES:
To understand the concept of customers.
To determine why is customer care important.
To understand different types of customers.
To analyze how to handle different customers.
To analyze the concept of Service Delivery and Quality.
To make a SWOT analysis so that internal strength and weakness can be understood from point of view of cellular industry and also understand the opportunities that can be earned and threats that affects the business.
To understand the importance of Call Center.
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To understand different stages of cellular industry i.e. Activation Retention Revenue Enhancement and Communication. To analyze Complaint Resolution Cell.
To understand the concept of HNI Customers.
To analyze mantras for Successful Customer Care. To determine why customers leave the network.
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RESEARCH METHODOLOGY
The perspective of the research is to understand customer relations And service delivery and quality in telecom sector i.e. IDEA CELLULAR LTD. (GSM) potential its future spare. The focus was concentrated in Uttar Pradesh (w). The study is based upon exploratory research. To fulfill the objective certain information was gathered by. 1. Primary source. 2. Secondary source. Research Approach 1. Observational. 2. Exploratory. Research Instrument 1. Direct Interviews. 2. Personal Meetings. As I have used primary data by using Direct Personal Investigation Method. In this method the data is personally collected by investigator from informants. Accordingly I had meetings with customers and give resolutions for their
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problems. And secondary data has been collected from various internet sites as mentioned in Bibliography.
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Overview of Telecom Industry(gsm)
What is GSM: GSM stands for Global System for Mobile Communications. Developed in the 1980s, GSM was first deployed in 7 European countries in 1992. Operating in the 900MHz & 1.8GHz bands in Europe and the 1.9GHz PCS band in the U.S.A., GSM defines the entire cellular system, not just the air interface (TDMA, CDMA, etc.). By the year 2000, there were over 250 million GSM users, which is more than half of the world's mobile phone population.
GSM technology provides a short messaging service (SMS), which enables text messages up to 160 characters in length to be sent to and from a GSM phone. GSM phones also supports data transfer at 9.6 Kbps to packet networks, ISDN & POTS users. GSM is a circuit-switched system that divides each 200 kHz channel into eight 25 kHz time slots. Today's second-generation GSM networks deliver high quality and secure mobile voice and data services (such as SMS/Text Messaging) with full roaming capabilities across the world.
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Today's GSM platform is a hugely successful wireless technology and an unprecedented story of global achievement. In less than ten years since the first GSM network was commercially launched, it became the world's leading and fastest growing mobile standard, spanning over 200 countries. Today, GSM technology is in use by more than one in six of the world's population and it is estimated that at the end of Jan 2004 there were over 1 billion GSM subscribers across more than 200 countries of the world. The growth of GSM continues unabated with more than 160 million new customers in the last 12 months. Since 1997, the number of GSM subscribers has increased by a staggering 10 fold. The progress hasn't stopped there. Today's GSM platform is living, growing and evolving and already offers an expanded and feature-rich 'family' of voice and data enabling services. Nevertheless, it was clear there would be an escalating demand for a technology that facilitated flexible and reliable mobile communications. As far as GSM is concerned, it's always been a risky business getting into the prediction game. Growth has invariably outstripped even the most incautious speculation. However, it's safe to assume that by the end of the century GSM will
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have over 150 million customers and be a major influence across every continent on the planet. The future of GSM technology is happening all around us. As the technology advances, it is essential that user demand for applications plays as significant role in determining development as does technological potential. Just because it can be done does not necessary mean that it should be done. Equally important is that, in the near future, one of the keys to ensuring GSM maintains its market position lies in the provision of advanced customer care. It's not simply a case of attracting new customers, but holding on to them. Already significant steps have been taken to establish consistent standards across the networks. The aim should now be to engender a culture of customer care rather than simply the means of responding to customer complaints. For example, it's easy to envisage a future in which if a GSM phone is not performing, as it should, the network's care center contacts the user and offers to replace the faulty device. Global roaming has always been the cornerstone of GSM's success. Users are coming to demand ubiquitous coverage and seamless mobility. For this reason, work is already well advanced on the development of multi-band terminals. These products will enable the user to roam freely between two, and ultimately all three, of the 900/1800/ 1900MHz GSM-related frequencies. Genuinely global coverage is next. A number of satellite network operators already have rapport their
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membership of the MoU, and development is under way of terminals that integrate both GSM and satellite networks. Such phones will operate as ordinary GSM mobiles at their usual tariffs when the user is within a GSM coverage area. When they move out of coverage, their calls will travel by satellite. "The advent of GSM is not seen as so significant a factor that the traditional cellular market growth trends will alter dramatically."
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GSM MARKET IN INDIA: ~
GSM India was the first regional interest group to be formed for a single country. Umang
Das,
Spice
Communications,
and
India
currently
chair
it.
With a population of around 1 billion growing at roughly 1.7 per cent a year, India is potentially one of the most exciting GSM markets in the world. After two rather difficult years, the past 12 months have seen the region's promise beginning to come to fruition. Much of this success can be attributed to the stabilization of the licensing and regulatory environment. India's telecommunications have undergone a steady liberalization since 1994 when the Indian government first sought private investment in the sector. More significant liberalization followed in 1996 with the licensing of that has had the most radical impact on the development of GSM services. 'The policy's mission statement is 'affordable communications for all', There is a genuine commitment to creating a modern and efficient communications infrastructure that takes account of the convergence of telecom, IT and media. In addition, the policy places significant emphasis on greater competition for both fixed and mobile services. Competition in the mobile sector has already had a visible impact on prices with calls currently costing less than 9 cents per minute. This means that service
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costs have fallen by 60 per cent since the first GSM networks became live in 1995. It also helps explain why a recent Telecom Asia survey revealed that more than 70 per cent of Indian mobile subscribers felt that prices were now at a reasonable level. One of the challenges facing GSM operators in India is the diversity of the coverage regions -from remote rural regions to some of the most densely populated metropolitan areas in the world. India has more than 40 networks, which cover the seven largest cities, over 600 towns and several thousand villages. Such depth of coverage has required enormous investment from India's operators. It is estimated that more than Rs150 billion had been invested in India's GSM industry by mid2000, a figure that is set to be supplemented by a further Rs200 billion over the next five years. The good news is that subscriber growth is beginning to look healthy. With India's low PC penetration and high average Internet usage -at 14-20 hours a month per user it is comparable to the US -the market for mobile data and m-commerce looks extremely promising. WAP services have already been launched in the subcontinent and the first GPRS networks are in the process of being rolled out. In the year ahead, GSM India will work with its members to realize the potential of early packet services in anticipation of the award of 3GSM licenses in 2003/04.
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COMPARISON BETWEEN GSM AND CDMA:~
Cellular is one of the fastest growing and most demanding telecommunications applications. And the continuous advancement in this technology has provided many options to a consumer. Today, the two alternatives that face the mobile world are - GSM and CDMA technology. First of all, let’s comprehend the meaning and functionality aspects of these technologies.
Global Service for Mobile Communications (GSM):~ During the 80s, when the cellular system was introduced, each nation had its own system. As a result, a couple of problems arose. Firstly, the equipment was limited to operate only within the boundaries of a country and secondly, the market for mobile equipment was also limited. In order to overcome these problems, the conference of European Posts and Telecommunications (CEPT) formed the Group Special Mobile (GSM) to create a common European mobile telephone standard. The GSM later came to be known as Global Service for Mobile communications (GSM). At the end of 1997, GSM was made available in more than 100 countries. Today it has Become the global standard in Europe and Asia. GSM operates in 900-MHz – 1800MHz. If one has to connect to the specific
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service provider in different countries, GSM-users simply need to switch Subscriber Identification Module (SIM) cards. As per GSM technology, a mobile unit logs on to the network after being switched on. The mobile unit tries to contact a nearby BTS, which then transmits all the frequencies of the neighboring BTS’ to the mobile unit, which identifies the frequency on which the reception is the best and passes on the information to the BTS. The BTS then transmits the information to the BSC which has the deciding power as to which BTS should the mobile unit be assigned.
Code Division Multiple Access (CDMA):~ Developed by Qualcomm for the US Military, Code Division Multiple Access is a system that enables many users to share the same frequency band at the same time. CDMA is a spread spectrum technology whereby multiple users share the same time and frequency allocation in a given band. Each speech signal is modulated (spread) across an entire band. The respective receiver demodulates and interprets the signal using relevant code that is embedded in the signal. The final signal contains only the relevant conversation. The CDMA based mobile technology was introduced in India to provide WLL services, as the GSM was the choice for full mobility. CDMA based WLL
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operators were given license of operation as fixed line operators. As CDMA can very well connect large geographical area, WLL operators were given the rights to provide "limited mobility" whereby a WLL operator could allow network coverage to the boundary of a Short Distance Charging Area (SDCA).
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Differences:~
While TDMA and FDMA are the types of multiplexing in GSM, CDMA works on spread spectrum. However the bandwidth available is same for both the technologies, which is 800, 1800 and 1900 MHz. While GSM cannot add more than a fixed number of subscribers in a cell, the capacity of the system is not rigid in CDMA. The biggest advantage with GSM is its widespread network in Europe and Asia, whereas CDMA is predominant in US and South Korea. The user of GSM is enabled an easy international roaming. As far as SMS, gaming and Internet are concerned, both GSM and CDMA score an equal point. GSM has already set a standard in India. Being a patented technology, all CDMA equipment’s and handsets require a royalty to be paid. The Choice: is determined by the service used by those whom you call most frequently. When mobile telephony was introduced in India, CDMA was an emerging technology. Hence GSM was the only choice. But today’s scenario calls for an evaluation of the alternatives.
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COMPANY’S PROFILE
ADITYA BIRLA GROUP The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.
A US$ 6.7 billion conglomerate, with a market capitalization of US$ 7 billion, it is anchored by an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30 percent of its revenues flow from its operations across the world. A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Such as viscose staple fiber, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial services.
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The Group has also made successful forays into the IT and BPO sectors. Currently around 57 percent of our Equity Shares are held by our Promoters who are companies belonging to the Aditya Birla Group.
Our Promoters are –
1. Aditya Birla Nuvo Limited 2. Grasim Industries Limited 3. Hindalco Industries Limited and 4. Birla TMT Holdings Private Limited.
The Aditya Birla Group is a dominant player in all of the sectors in which it operates? Among these is viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators,
financial
services,
telecom,
BPO
and
IT
services.
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Following table lists the major Indian companies of the Aditya Birla Group and the products and services they offer: Company - Grasim - UltraTech Cement Limited - Shree Digvijay Cement - Hindalco - Indian Aluminums Company Limited - Bihar Caustic and Chemicals Limited - ABNL - Idea Cellular Limited - Birla NGK Insulators* - Birla Sun Life Insurance Company Limited* - Birla Sun Life Asset Management Company Limited* - Birla Sun Life Distribution Company Limited* - PSI Data Systems - TransWorks - Birla Global Finance Limited
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- Tanfac Industries Limited* fluorine chemicals
Idea cellular Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group and AT&T (through Birla AT&T- Maharashtra, Gujarat) and the Tata Group (through Tata Cellular-Andhra Pradesh) came together to set up cellular networks.
In 2000, the historic path-breaking merger and the subsequent acquisition of RPG Cellular - (Madhya Pradesh circle) helped take their aims even further and led to the formation of Birla Tata AT&T Limited. Since then, there has been no looking back for Birla Tata AT&T (Idea Cellular). In its very first financial year, Idea Cellular recorded the fastest growth among all cellular operators at a 135% increase in subscriber base. The company BTAL (now Idea Cellular) also ranked No. 1 in customer satisfaction among all operators (as per the NFO MBL survey), a testimony to the quality of the company's services and subscribers. As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11 circles.
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With a customer base of over 10 million, IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and over 50% of the potential telecom-market.
As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is the first cellular company to launch music messaging with 'Cellular Jockey' , 'Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and A complete suite of Mobile Email Services. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India, with 'Super Power', 2 Minutes Outgoing Free, Lifelong offer and other segmented offerings like Women's Card. 'Lifetime Idea' is the first and only loyalty program, for pre paid customers, introduced by a Cellular brand.
Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRS and EDGE in the country.
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The latest feather in the IDEA cap is the GSM Association Award for Bill Flash, it has recently won making it the first cellular operator in India to win an award on this platform. Idea Cellular is part of the Aditya Birla Group, which is India's first truly multinational corporation. Global in vision, rooted in Indian values, the group is driven by a performance ethic pegged on value creation for its multiple stakeholders.
The combined holding of the Aditya Birla Group companies in Idea stands at 98.3 per cent.
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Vision: To become most profitable Cellular company
Strengthen Channels
Reduce cost per minute
Protect Current ARPUs
Improve Profitability
Capture additional subscribers
Retain existing subscribers
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Companies Mission
“We will Delight our customers While meeting their Individual communication needs anytime anywhere”
We survive because of our customers.
Delight: Positively surprise customers with every interaction. Customer: Whole universe of current and potential users who have communication needs. Individual Communication Needs: Specific communication needs of individual consumers. Communication: All voice and non-voice services that are permitted under the license.
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Values
CUSTOMERS Our customers are our most valued assets. We will strive to exceed their expectations at all times by providing them with superior services that embody value, innovation, quality and care.
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Some of our Technology and Content Partners
Onmobile Asia Pacific Ltd Cellebrum India Ltd Siddhivinayak Astro Services Ltd. Kodiak Ltd Mauj Net4nuts India Ltd Yahoo Rediff India times Mobile2win Sify NDTV ROAMING Roamware.inc Starhome Bharti Telesoft
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MARKETING COMMUNICATIONS Lowe India Pvt Ltd Insight Media Ltd PUBLIC RELATIONS Clea PR NETWORK Nokia Ericsson Siemens BILLING Atos Origin
COVERAGE
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Idea Cellular Ltd has seen phenomenal growth since its inception. Idea Cellular's footprint idea is to first achieve critical mass, then drill deep instead of spreading thin. In keeping with this, the company has been providing excellent service to its subscribers in various states. It controls a portfolio of India's most attractive and contiguous telecom geographies, Including the circles of Andhra Pradesh & Delhi (inclusive of NCR), Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh & Chattisgarh, Maharashtra & Goa (excluding Mumbai), Rajasthan, Uttar Pradesh (W), Uttar Pradesh (E). With a footprint dominating the map of India, Idea Cellular accesses over 60% of India's total telephony potential. The company is now poised to launch its services in new circles - namely Mumbai and Bihar. Idea Cellular Ltd, however, does not believe only in increasing geographic footprint - it also drills deep and successfully attempts to provide excellent network coverage in all its circles of operations
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The brand Idea It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are the company values and vise versa. Brand Vision: It goes without saying that the brand vision of idea mirrors The company’s vision. The brand mission statement is...... To be the most customer-focused mobile service brand, Continuously innovating to help liberate our customers from the shackles of time & space.
IDEA - Brand Values Innovate. Stimulate. Liberate.... It is these brand values, which have made us a formidable player in the telecom industry. Innovations that stimulate the customer and liberate him from the shackles of time and space are the core of our brand. This is what we strive for. Nothing more, nothing less, nothing else.
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IDEA - Brand Mission The India footprint Idea Anywhere connectivity bringing India closer.
The Technology Advantage Idea Tomorrow's technology to enrich today.
The Customer Focus Idea Make a single interaction a lasting relationship. The Employee Focus Idea Nurture the roots that nurture our ideas.
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Available wherever you want • New Innovative channels •
Brand Perception
Best Distribution Network
Product Innovation
Prepaid • Ecotalk • Lifetime Idea • Super Power Postpaid • Good Bye Landline • Dual IMSI Solution VAS • Cellular Jockey • Global SMS • Idea Mail
Best Service Delivery
Innovative Affordable Caring Honest
•
Positively surprise during all customer interactions
Sum total of customer experience with our service creates a perception in the mind of Consumer
What Idea Brand stands for? - Four planks of competitive edge
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What business are we in?
Infrastructure? Total investments: Rs 67 bn Number of Towns covered:~2000 Highway coverage: ~20,000km Average monthly Calls on network: 1.25 bn Average monthly SMS: 200 mn Service? Manpower for customer service: ~3,000 Daily relationship calls made: 65,000 Bills delivered every month: 1.3 mn FMCG? Total Consumers: 7.3 mn Number of Retailers: 125 k Average monthly gross adds: ~650,000 BPO? Call Center agents: ~1,000+ Daily Calls received at call center: 500 k
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Financing? Short term debt: Rs 14 bn Average monthly debt rollover: Rs 1 bn
Industry Scenario
•Growth phase for 2-4 years to continue. •Commoditised market. •Highly competitive. •Tariffs dangerously low. •Number portability will come. •New Business Model required. •Numbers game will change. •Need to look at your niche. •Create customer relationships.
Customer Service is the only long-term differentiator.
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Sellers’ to buyers’ market…
What’s out
What’s in
Product centered
Market centered
Pure acquisition mode
Profitable growth
Faster than competition Different than competition Internal focus
External focus
Operations driven
Service driven
Innovative products
Meet changing needs of customer
Economical products
Unique value to customer
Expand distribution
Differentiate service delivery
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Either you change yourself, or customer will change to another operator.
Focus Areas
•Empowerment: Four Levels of Mgt. Push decisions to lowest level. •Partnership: Develop outsourcing partners, SLA management skills. •Measurement and Reporting: Leverage IT for BI & MIS. •Quality & Processes: Enterprise Process Mgt and Six Sigma. •Communication: Continuous Corporate Communications. •Innovation: Do it differently. •Technology: Stay ahead of curve. •Regulation: Be prepared to exploit opportunities. •Segmentation: Mass customization.
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TYPES OF PRODUCT OFFERED BY IDEA CELLULAR Post-paid subscription
A post-paid subscription is also called a billing connection. In this type of a connection, you can avail of the cellular connection first and pay for the usage at the end of the month. To avail this type of connection, you will be required to submit a signed Customer Service Agreement (CSA) form along with certain specified documents. Your connection will be activated post the payment of the one-time charge or activation fee, a refundable deposit and verification of the requisite documents. On consistent and regular payment and high usage patterns, you could win yourself the opportunity to enjoy exclusive loyalty and frequent user facilities provided by Idea Cellular.
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Prepaid subscription A prepaid subscription is like a ‘cash & carry’ subscription, designed for quick convenience and ease of mobility. To subscribe, do ask for the ‘IDEA Chitchat’ brand at our outlets. Under this subscription, you can pay in advance for using the services and your credit balance on the subscription keeps reducing in real time against usage.
NEW PLAINS OF IDEA CELLULAR Plan Details Charges
Easy 149
Easy 199
Easy 249
1 Onetime Charges (a) Sec Deposit (b) Activation
500 200
500 200
500 200
2 Recurring Charges (a) Monthly Rent (b) CLI
149 Nil
199 Nil
249 Nil
0.75 0.75 1.50 1
0.50 0.50 1.00 1
0.25 0.50 0.75 0.50
2.40 2.40 2.40
2.00 2.00 2.00
1.50 1.50 1.50
3 Call Charges (a) Intra-circle i2i i2M i2L SMS (b) Inter-circle i2i i2M i2L
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SMS (c) ISD Country – I Country – II Others SMS UDP (local idea to idea calls 4 only)
2
2
0.50
7.20 9.99 50.00 5.00
7.20 9.99 50.00 5.00
7.20 9.99 50.00 5.00
Rs. 149 Rs. 199
Tariff matrix New Easy 500 Bill Plan Telephony MMF CLI charges VAS Fee Total UDP/Free Minutes (Intracircle calls +STD calls) Outgoing Band Intra Circle (Distance Taken From Routing POI CUG *** M2M Idea M1 M2M Competitor M2 M2M - UPEAST M3 M2M - Reliance & Tata C0 M2F & M2WL 0-50Km C1 M2F&M2WL above 50- 200 Km Non-POPs C2 M2F&M2WL above 200 Km Non-POPs
Rs. 249
TMCODE: New Easy 500 99 401 0 0 500 500 minutes
0.10 0.30 0.50 0.50 0.50 1.00 1.00 1.00
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E1 E2 E3 P1 P2 P3
Inter Circle (Distance Taken From Agra Level one TAX) M2M 50 to 200 km M2M 200 to 500km M2M >500 km M2F & M2WL <200 M2F & M2WL 200-500 M2F & M2WL >500 Pulse SMS (P to P Only) Local SMS National SMS International SMS
ISD USA, Canada, Europe (F), Singapore & Hong Kong Other Countries (Except ROW-II) ROW-II
1.00 1.00 1.00 1.00 1.00 1.00 60 sec
0.25 0.25 5.00
6.40/ min 9.19/ min 49.20/ min
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Tariff matrix Happy Hour Plan Bill Plan Telephony MMF CLI charges VAS Fee Total
TMCODE: Happy Hour Plan 99 76 0 0 175
Outgoing Intra Circle (Distance Taken From Routing POI CUG M2M Idea - 10 AM to 6 PM M2M Idea - 6 PM to 10 AM M2M Competitor M2M - UPEAST M2M - Reliance & Tata M2F & M2WL 0-50Km M2F&M2WL above 50- 200 Km Non-POPs M2F&M2WL above 200 Km Non-POPs
0.10 0.10 0.25 0.50 0.50 0.50 1.00 1.00 1.00
Inter Circle (Distance Taken From Agra Level one TAX) M2M 50 to 200 km M2M 200 to 500km M2M >500 km M2F & M2WL <200 M2F & M2WL 200-500 M2F & M2WL >500
2.65 2.65 2.65 2.65 2.65 2.65
Pulse SMS (P to P Only) Local SMS
60 sec
1.00
49
National SMS International SMS
ISD USA, Canada, Europe (F), Singapore & Hong Kong Other Countries (Except ROW-II) ROW-II
2.00 5.00
6.4/ min 9.19/ min 49.20/ min
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"Attracting and nurturing talent has become the single most dominant force in business." Idea cellular recognizes human resources as a backbone for its long-term success. We aim to be the best employer, attracting and retaining the best employees. Our people are our greatest resource as they are our biggest differentiator. We therefore hire the best professionals brimming with ideas and develop them for future leadership positions. Idea is all about participation and involvement - seek opportunities, give opinions and always speak your mind. And finally make a difference within the company. We have focussed on conserving the best aspects of our unique culture and on perpetuating what attracts people to join, and remain, at Idea. Idea invites you to join a journey of excellence.
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CELLULAR MARKET IN TERMS OF CUSTOMERS AND SERVICE DELIVERY
Customers •Where are they………….everywhere! •Who are they…………..everyone! •When will they come…...any minute! Who is a Customer •Some one who buys regularly. •In USA and UK, a customer is GOD . •In Japan, the customer is the KING. •And in India the customer is the BOSS!
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Why a Boss?
•Because a boss can fire you when he is unhappy with you or your work. The Modern Customer •He is innovative in nature and will always go for the best. •He is fussy, choosy, ambitious, proud, sophisticated and global in nature.
What is CARE? •Care means ---To have regard or liking for. •To look after.
Why is customer care important? •It costs 5 times more to acquire a new customer than to retain an existing one. •One unhappy customer tells 10 other people. •64% of customers change suppliers because of poor service. •Out of 100 customers only 6 will complaint.
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Building the relationship: Key concepts. Each interaction, However Miniscule, can begin or build a long term Relationship. The customer isn’t always right, But the customer is always the customer! The problem isn't the problem, But how you handle the problem. Give customer A little something extra.
Must Remember… •If you will not take care of your customers… some one else will…
Three dimension of Service
•A attitudes. •S Skill. •K Knowledge. • •ASK----attitudes skill and knowledge.
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Customers are NOT… •Just buyers. •Just numbers. •They are whole persons having individual differences.
Customers vary… •In age. •In income. •Education levels. •Taste.
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Different Customer Types
•The Business Like Customer. The customer is no nonsense type. His mail objective is to spend only as much time with an executive as is strictly necessary.
•The Knowledgeable Customer. This customer is technically very aware of what he is buying. He knows the right question to ask and it is very difficult to evade the Issue raised by him.
•The friendly customer. A very common type. Loves to talk-about the weather, about the Indian hockey team, about politics… In short, about everything except business.
•The egoistic customer.
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The man who feels nothing can happen without him. And that he is solely responsible for everything that goes right. •The timid customer. This type is probably the most difficult to handle. Because he does not take decisions. He is usually insecure and needs a lot of reassurance. And that is precisely we need to give him. Reassurance.
•Other customer types. Confused customer, frustrated customer…
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Handling difficult customers Don’t take it personally – remember when a customer complains they are unhappy with the product or your company – not you. Remember you are good at your job – remind yourself of the skills you have and why you are working there. Don’t allow customers to make you feel inadequate. Write down their complaint or concern – show the customer you are listening by recording their problem and if you are on the phone, tell the customer you are writing down all the details.
Ask a supervisor to join you and be part of the transaction – if the customer is becoming more difficult, invite a supervisor to join you and the customer will notice you are treating them as important by seeking additional help. Debrief the situation with someone else when the customer leaves –
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Sometimes you may need to talk to someone about your difficult customer to debrief and get rid of any negative thoughts and emotions you may have – this is a very important step.
Learn stress management techniques – this may help you stay calm if a customer raises their voice or becomes emotional. By learning to breath deeply, focus on the positives and also ensure your body doesn’t carry stress you will be able To handle these difficult customers easily.
Recognize and accept you will work with customers who have bad days – understand when you are working with the public some people take their bad days out on you – it is not personal. Consider what you could do differently next time – if the customer is complaining about a company system or process, take some time to review this and determine if this might need to be changed. Think about the way you handled the customer and note anything you would do differently next time.
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FIVE MUST OF GOOD CUSTOMER SERVICE
Have you ever seen one of the signs regarding customer services that many places of business have hanging up? They say, "Rule Number 1: The customer is always right," and below that, "Rule Number 2: Refer back to rule number 1."
Although that's a pointed oversimplification, the statement makes a valid point, and that is the customer is the reason for the business, whatever that business might be. The customer is what keeps the business fueled and running. Without the customer, there would be no business, and keeping customer happy and coming back is of the utmost importance.
Though customer service truly can't be simplified into a one-rule overview and the truth is that customers aren't always right, there are some universal rules governing good customer service.
60 1. Listen: When dealing with a customer, the first rule is to listen to what
they're saying rather than anticipating what they want. Customers appreciate being heard, and if you take the few moments to really, really listen to their request, complaint or statements, you're increasing the odds that you'll be able to help them in an efficient, direct manner. 2. Acknowledge: People appreciate being acknowledged. Whether they're
waiting on a long, slow-moving line or being put on hold, customers are more apt to remain patient if they feel like they're not being ignored. For customers at the back of a long line, often a simple smile and statement of "I'll be with you soon" will increase their patience manifold. For customers waiting on hold, it's a good idea to pick up the phone every now and again, just to let them know they haven't been forgotten about and that you'll be with them as soon as it's possible. 3. Be courteous and respectful: Even the most difficult customers often
respond to courtesy and respect, and maintaining that standard is professional and should be adhered to at all costs. 4. Devote your full attention to the customer: There's nothing ruder than a
cashier that's chatting about her plans for the night with the cashier at the next register while she's ringing up your purchases. In addition, paying attention to something else while assisting a customer opens the door for
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mistakes, particular when at the register or when working with money and figures. Personal business is for your own time. 5. Know when to ask for help: There are times when you just don't have the
wherewithal to help the customer, and there are difficult customers who just refuse to be reasonable. Don't hesitate to find a supervisor or manager to help when you find yourself in a position that you can't resolve on your own. That's what they're there for.
There are many other Do's and Don'ts in the world of customer service, but these are a great starting point for providing service that will keep customers coming back to your business.
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TOP TEN TIPS OF OUTSTANDING CUSTOMERS
Remember the 80:20 rule? You may not get everything perfectly right, but getting most right will be much, much better than the majority of your competition. These Top Ten Tips for Customer Service will get you well on the way. 1. Be Your Customer Live the life of your customer and experience what they do. Stand in line, call your call-centre, soak up feedback. 2. Give Memorable Service Make the life's mission of everyone (yes, everyone!) to be customer focused – even those seemingly out of direct line of fire. 3. Have Product Available Generally, you can't sell it if you haven't got it. Work your systems hard and focused to get product there on time. 4. Listen Hard to Complaints Complaints are a wonderful gift - it is feedback of the highest order. Enjoy them and learn fast.
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5. Enable Your People Enable and encourage your people to give an immediate and generous customer response. 6. React Fast Make sure that you and your people work with pace and immediacy with customer issues. 7. Be Systems Focused Ask, 'What would my customer think of this - would it give brilliant service?' If not, reshape the system fast. 8. Be Curious Encourage everyone in your team to overhear, be nosy, ask questions and feed back information from your customers. 9. Research the Marketplace Do more in your own business from what you experience as a customer elsewhere. Encourage your people to do this too.
10.Have Fun Have fun with your customers. It builds relationships. Relationships are business.
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SDQ IDEA’S Service Delivery &QualityAn Overview What is Customer Care?
Cellular business requires :
• Customer Interaction as transactions between Customer & Organization. • It presents an opportunity to practice Customer Relationship Management. •
Holds responsibility to efficiently service the customers at each point.
GOAL Holds responsibility to Convert all “Customer Interaction Moments” into “Moment of Delight” for our customers by providing excellent services and creating a strong positive Brand Image for Organization as an institution rendering unparalleled World Class Service.
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Service Delivery and Quality Creating Competitive edge by achieving:
• Customer Delight At “Moments of Truth” interactions. • Trained & motivated employees. • Well defined processes. • Strong systems. • Advance technologies at the Call Center, Front Desk & Back-end Operations.
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SERVICE DELIVERY AND QUALITY
Collections & Credit
Retention Service Delivery and Quality (SDQ)
Customer Care
PnT (Provisioning) Idea Royale
Call Center
Field Staff
CRC
Training & Quality
Document Center
External & Internal Customer s
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SDQ-Field Staff • 25 Customer Care Officers at 8 DO locations. • Specialized in Front-desk, Retention & Back-end operations. • Customer A/c activation & Service Change Mgmt. • Channel Operations review & Training. • Customer retention & CRE support. • Customer walk-in & on-line channel query support. • Stock Maintenance. • Adjustments & Waivers. • High User Relationship Building.
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CALL CENTER SDQ-Call Center • 101 Call-center officers. • 3 Supervisors & 1 Manager. • Four teams with individual leaders. • 5 Lac Plus customers: More than 4 Lac calls per month. • High degree of Standardization. • Internal Customer Unit (ICU) for Internal Customers. • Information Updates. • 24*7 operational help line for any kind of Assistance. • Not only a complaint resolution cell. We are looking at call center as a tool for building a long-term relationship with the customer. • A differentiating factor which could help us give the competitive advantage.
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There are three skill sets: • Common (Prepaid, Land line calls, In roamers) • Postpaid No.12345 • ICU (Club royal, channels) No.321
No. 347
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PRODUCT AND TECHNOLOGY (P N T)
SDQ-Product and Technology
• 8 Customer Care Officers. • Product Specialization: Pre-paid & Post-Paid. • System support: BSCS - Postpaid; INSS - Pre-paid. • Audits, bulk actions, Automation, DO-Backend support. • Special Activities requiring Expertise, Control & Cross-function Coordination. • Centralized activities, viz.. RUG, EPN, No. management, Market Move, Audits, DP5 uploading, etc.
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Retention, Revenue Enhancement & Communication ( RRC) Retention • Retaining the customer who is about to leave the network. They Can be of two types: 1. Voluntary. 2. Involuntary. Activities undertaken to retain customers. • Churn Projection. • Take steps to reduce churn. • Schemes to reduce churn.
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Why Customers Leave?
•1% die. •3% move away. •4% are natural floaters. •5% move on recommendation. •9% finds somewhere economical. •10% are chronic complainers. •14% are dissatisfied. •68% go somewhere else because the people who serve them are indifferent to their needs; they just don’t ‘care’. 9 out of 10 service specs are defined not by the customer but by the service provider. Average company has to spend six times more to attract new sale than to get a sale from an existing client.
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Revenue Enhancement • Bill message on every Bill cycle. • Upselling and cross selling by the out calling department. • Revenue enhancement through Value Added Services.
Communication • Information to customers through SMS and Mailer. • Communication To channels and Field for clarity. • 15 days satisfaction call to the customer.
Complaint Resolution Cell ( CRC) • Back end operation. • Coordinates with other departments. • Fulfilling customer requests. • Resolving complaints in coordination with other departments. • Report generation from I - Care (an indigenously designed CRM software)
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• Based upon the type of the call for that particular number action is taken.
Types of Complaints
Post Paid
• Activation/De-activation. • Service Changes. • Billing. • Delay/Wrong Payment postings. • Refunds. • Adjustments.
Pre Paid • Validity Issues. • Recharge Issues. • Top-ups.
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Technical • Network Related. • Signals/Quality. • Auto roaming.
Others • VMS. • SMS. • Other Value Added Services.
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Sources of Complaints • Call Center/ICU. • Customers. • Channels. • Dos (District Offices).
Club Roy ale SDQ-Idea Roy ale • One Customer Care officer. • Daily monitoring of Barring & Temporary Disconnection. • Regular analysis of Churn. • Management of Idea Care gift Scheme & its distribution. • Monthly evaluation of Customer base to review categorization. • Quality control of service delivery & Communication to Idea Care. • Cost-benefit analysis of loyalty Schemes.
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CREDIT AND COLLECTIONS Credit • Customer Profiling. • Customer categorization. • Limit enhancement and Down gradation. • Deposit Restructuring. • Deposit refund. • Exposure Management. • Refund balance Closure. • Configuration Testing of new Products. • Pre Bill Testing. • Market Move adjustments. • BSCS v/s Switch reconciliation. • IN v/s Switch reconciliation.
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Our Idea of Customer………
Technology Support to SDQ Some areas where Technology has benefited • Call Center - IVR, CTI, CRM. • PnT - IN, Billing, DP5, ICFS, Pre Paid Upload Utilities & Mediation frontends. • CRC - Database support, Bulk SMS. • RRC - Huge System capabilities, Billing Reports. • Document Center - Barring/Unbarring utility, Hyperlinks, Pre Paid Upload Utilities.
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WAY TO DELIGHT CUSTOMERS
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4 R Mantra for Successful Customer Care
•Record. •Resolve. •Rever. •Relationship. and no end to servicing…
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COMPETITIOR ANALYSIS
1. Range of network: Airtel, Idea and BSNL service providers have been into this cellular industry from a very long time and have developed a complete and vast network in Delhi and around the remote areas. All the operators have vast no. of towers to cover in Moradabad, Amroha, Gajrola, Rampur, Chandausi, Sambhal. While BSNL has less number of towers as compared to Idea with a radius of 1012 km and not being able to provide proper service in other remote areas.
2. Number of subscribers: All the Players Idea, Airtel, and BSNL have a cutthroat competition in U.P(w). Trying to add more customers to its service with IDEA has maximum subscribers base in U.P(W) in which 40% is of CHIT CHAT cards. While Airtel, as compared to Airtel has only less number of subscribers and 35% of them are cash card subscribers. Whereas, Hutch has lowest no. of conections.
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Value Added Services (VAS): Let me first take up the common value added services, which all the player offers:
Call Line Identification: Presentation (CLIP): Clip gives you the power to know the phone number of the calling party even before you answer the call. This gives you the flexibility to either reject the call or answer the call. Also, the name of the calling party will flash on the handset screen if the same is available in the Handset Phone Book.
Call Waiting: This feature helps the second sender to wait for the call if the receiver is busy with the first call.
Call Hold: This feature helps the receiver to put on hold the first call to enable him to listen to second call.
Call Divert forward the call to: This feature helps the sender to receive his calls on other number even landline if his mobile is busy.
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Call Roaming: The user can roam anywhere in the country where the roaming facility is available.
Easy Mail: Easy Mail for IDEA is the most advanced voice mail service. It keeps you in touch with your caller’s even when you are busy or outside the coverage area of IDEA or your cellular phone is switched off. Your calls are diverted to your Easy Mail box. You can retrieve the messages left for you, at your convenience.
Call Conference: Idea Call Conference service enables you to carry out a Teleconference with 6 different people simultaneously. Infact you can set up a conference, even if the other five are using the PSTN land- line.
Cell Surf: The easy way to access the Internet. You can now get the latest information, direct on your handset from the web.
Remised billing: Keep track of your calls through a detailed account at the end of each month.
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Whether one is on prepaid or postpaid, one can enjoy a wide range of affordable value added services. From getting flight updates to mobile banking to sending voice messages and more, one can access all that he wants, right from the gsm phone. (Hutch airtel and idea) (Gsm network)one also enjoys a host of benefits including free incoming calls from anywhere in the network. All the more useful because the Hutchison network covers places that one is most likely to get his calls from, more frequently. Including all the four metros.
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MARKET SEGMENTATION CAPTURED BY EACH PLAYER :` STATE U.P(W
OPERATOR MAY'07
JUNE'07
JULY'07
Idea Mobile 1609504 Comm.
1663414
1752840
Bharti Airtel
1054042
1139342
1219294
BSNL
1394226
1418663
1542414
Vodafone Essar
1774251
1865574
1970110
2500000 2000000 Series1 Series2 Series3
1500000 1000000 500000 0 Ideal Mobile Comm
Bharti Airtel
BSNL
Vodafone Essar
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Growth path of only GSM Services provider
Operators Dec'01 Dec '02 Bharti 484850 834269 Cellular Hutchison 343241 580328 Essar
Dec '03
March '04 April '05 Mar '06 -
1331003
1366113
1390201
1405334
1026077
1202345
1217407
1223510
BSNL
45408
129809
156501
170089
174423
182053
IDEA
NIL
128306
420828
501693
508254
514271
873499 1672712
2934409
3240240
3290285
3325168
-
Market Share of Cellular Players in India :~ Group Company Wise Cumulative S. No. Name of Company Total Sub Figures 1 Bharti 6504314 2 BSNL 5229145 3 Hutch 5148048
% Market Share 24.89% 20.01% 19.70%
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4 5 6 7 8 9 10 11
IDEA BPL Spice Escotel Aircel Reliance MTNL Hexacom All India
2732689 1882754 1208890 989084 1026377 790529 360550 257053 26129433
10.46% 7.21% 4.63% 3.79% 3.93% 3.03% 1.38% 0.98% 100.00%
GSM operators in India added a record 5.39m subscribers in June compared to 5.04m subscribers in May, 4.13m in April, 5.9m in March, 4.64m in February and 4.76m in January 2007 (all numbers are excluding RCOM GSM for comparison).
The total GSM subscriber base in India now stands at 135.5m (4.1% MoM growth). June 2007 was one of the strongest months for GSM operators, with second highest monthly net additions ever recorded. Assuming same net adds run rate as last month for CDMA operators, we should see total monthly net adds of 7.2m, a record in Indian wireless history, in line with our theory of accelerating subs addition.
Bharti Airtel continued its impressive run with record net adds of 1.96m subs in June 2007, compared to 1.85m in the previous month. Bharti’s total subscriber
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base now stands at 42.7m subscribers (up 4.8% MoM and 85.1% YoY). We have modelled in 1.92m subscribers per month for the remaining nine months of FY08E in our earnings model. A stronger performance by Bharti would provide further upside to our estimates.
Idea Cellular saw a good month, with net adds of 0.86m in June 2007. Improved performance in Delhi, Rajasthan and UP (West) circles led to strong overall subscriber growth for Idea. Idea’s subscriber base now stands at 16.1m (up 5.6% MoM and 88.9% YoY).
Vodafone Essar (erstwhile Hutchison Essar) (Not listed) also reported record numbers, with monthly net additions of 1.54m in June 2007. Vodafone’s subscriber base currently stands at 30.8m (up 5.3% MoM and 75.3% YoY).
BSNL (Not listed) again saw a poor month with monthly net adds of 0.42m, taking its subscriber base to 28.4m (up 1.5% MoM and 55.4% YoY). Severe capacity constraints continued to choke the growth of BSNL and we think this will continue until its new capacity comes onstream.
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IDEA’S PERFORMANCE IN TELECOM INDUSTRY:Idea Cellular Limited has delivered a robust performance during the year. The Company has over 14 million subscribers as on March 31, 2007. Total subscribe base increased by 90% over the corresponding period last year. The All India market share has improved from 7.7% to 8.6% between March 31, 2006 and March 31,2007. The company’s gross revenues have risen significantly by 47% to Rs. 4366.4 Crores from Rs. 2965.5 Crores in the previous year. The Company’s net profit soared to Rs. 503.3 Crores, from Rs. 211.8 Crores, an increase of 138%.
The company rolled out operations in three new circles viz. Himachal Pradesh, Rajasthan and U.P (E), thus expanding its network across 11 circles. The initial launch expenses in these circles created some pressure on margins. The operating margins of the Company declined to 34% vis-à-vis 37% in FY ’06.
The Company has successfully completed its Initial Public Offering and raised Rs. 2819 Crores.
The Company is focusing on building, strengthening and expanding network and related services
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In the new circles and as planned roll out of services in Mumbai and Bihar circles. National Long Distance roll out is being worked on.
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Idea – A growth story
Idea strengthened its balance sheet by raising Rs. 2819 Cr through IPO & Pre-IPOPlacement. Nuvo’s stake in Idea came down to 31.78% after IPO. Aggressive Capex planned for both capacity and coverage. Roll out of services in Mumbai & Bihar expected by January’08. Licenses for remaining circles being pursued.
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Problems faced by the customers and their Redressal
The most widely faced problem by the customer is of poor network. Redressal: In some areas the idea’s network is not up to the mark and in order to overcome this the company is now providing a Patch Panel Antenna which when attached to the Fixed Wireless Terminal strengthens the weak signals, whenever any customers complained to us about weak signals it was duly noted down and forwarded to higher authorities so that the customer could attain a Patch Panel Antenna and his problem gets rectified.
Problem of unclear sound and echo effect. Redressal: Due to some weather problems and exchange faults these problems arises and on the other side these problems were passed on to the technical staff.
Customers also face problems in connecting the ISD calls. Redressal: This problem has been conveyed to the technical department and will be taken care of for its rectification.
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Many idea connection owners face a problem of bill jumping. Redressal: This problem arises due to wrong plan opted by customer, so customers are told plains which are suitable to them according to their usage and their request is forwarded through customer care.
Problem of communication gap. Redessal: This problem arises when customer does not get proper response about the queries and complaints through customer care or channel ends.
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SWOT ANALYSIS Strength The Brand Name “IDEA” (Aditya Birla Group). A 24 hours dedicated customer care services. Oldest channel network in U.P (w) area. Oldest operator in U.P (w) as far as GSM is conserned. Loyal Customer Base identified as Roy ale customers. Idea Cellular company is the first company to launch Music Messaging with Cellular Jockey, Back Ground Tones, Group Talks, a Voice Portal with say IDEA and complete suite of Mobile E-mail services.
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WEAKNESS
Network problem, mostly in congested areas.
CUG is not free while other CDMA operators are this facility to their customers. New roll out is very slow as per as network is concerned. Sales process is Good but lengthy to go. GSM operators use copper while reliance uses fiber for network connectivity. So reliance has a advantage over GSM operators because their network is never busy.
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OPPUTUNITIES
IDEA Cellular considers rural market as an opportunity for them. They are providing bundle offers i.e. sim cards with handsets to cover large market share.
Slums and camp areas where wire lines cannot reach.
To increase their Prepaid customer base.
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THREATS
All GSM operators considers THIRD Generation Mobiles as a threat for them because in next few years customers can make calls from whichever network they want i.e. they can dial the code of that network and make a call to enjoy economy calling.
GSM operators need to revise their Revenue Enhancement Process when third generation mobiles will be launched. Huge capital investment will be required.
Authority of Negotiation, competitors have but Idea does not have.
Aggressive marketing strategies, competitors have over us.
Competitors have lucrative plans and policies.
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Recommendations and suggestions
Idea cellular should update its network more aggressively, to reduce Conjunction in network and call drop.
Idea cellular should launch competitive offers more aggressively on regular intervals to make customer feel delighted.
Idea cellular customer care should take proper feedback from customers and their suggestions should be implemented and feedback is provided to them which can be in terms of rewards like free airtime.
Idea cellular should work up on payment posting so that it can be flashed with in half an hour on customers mobile after payment so that they can be updated.
Idea cellular should try and make their process as short and simple as possible specially in case of barring.
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Idea cellular must make a provision to make additional services automated so that services could be available at earliest.
Idea cellular should cut down the time period of activation. It is hampering on their sales and their image in the market.
A major complaint by the customer was that grievance handling takes a lot of time. According to me, complaint handling should be faster to gain an edge over the competitors to the customer care department needs to be strengthened so the customer can directly contact the company.
The customer should be updated with all the latest schemes, offers and tariff plans of the company, as this is a constant cause of complaint.
This can be done with the help of mailer along with the call statement which should be send and by enabling auto caller system which call the number from the database by themselves and play the recorded message. This will go a long way in
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putting up a smile on the customers face and they will feel associated with idea cellular.
Idea cellular should provide authority of negotiations to its employees. So that they can negotiate with corporate customers and fulfill their requirements and retain them for long.
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Conclusion
After completion of this project at idea cellular I came to certain conclusions about the growth and future prospects of idea cellular. Their was a rapid growth, If we talk about the total base of idea prepaid as well as postpaid connections.
This proves that it is readily accepted among the customers. As India will continue to be the fastest growing country in the Asia-Pacific region next to China, with cellular services expected to contribute approx 26 billion by 2011. So Idea Cellular has a very bright future in GSM industry and it can capture maximum market share by exploiting rural market.
According to my point of view, telecom industry is likely to register 18.4 per cent growth per annum during the 2007-2011 and around 58 per cent of the rural population and 95 per cent of the urban population would get mobile connections.
The cellular market penetration will also get triple. The overall penetration would be driven mainly by an increased focus on rural market, huge promotions by Idea cellular and handset bundling schemes can help them in building strong and
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healthy relations with its customers. This can only happen when Idea Cellular will try and further keep their employees motivated. If they will be satisfied then they will build good customer relations.
The next step, which idea cellular should concentrate on maintaining its Existing customer base. For this they need to take quick actions for the redressal of customers grievances. Idea should maintain good customer relations by taking regular feedbacks from them.
These steps would ensure definite success and would help idea cellular to sustain as a leader in GSM market.
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Bibliography
www.ideacellular.com
www.telcomindustry.com
www.bhartiinfotel.com.com
www.ideamobile.com
www.adityabirlagroup.com
Google search engine Interacting with local business associates. Direct interactions with customers.
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Questionnaire (To be filled by Idea Customers) This questionnaire is solely for academic purpose. Kindly indicate your choice by placing a tick on the appropriate option.
Strongly Disagree
Disagree Can’t Say Agree Strongly Agree
Q1. Idea gives you prompt services.
Q2. Employees at Idea are always willing to help you.
Q3. Your queries and complaints are handled immediately by the Customer Care Department..
Q4. Idea provides it’s services at the time it promises to do so.
Q5. Idea keeps its customers informed about all its services and how they will be delivered.
Q6. When you have a problem, the company shows a sincere interest in solving it.
Q7. Idea gives you individual attention.
Q8. The employees at Idea understand your individual needs and offer flexibility in their services as per your requirements.
Q9. The Web-Site of Idea is interactive and user-friendly.
Q10. Idea uses the latest technology in its services.
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