Marketing Report on Idea Cellular Ltd.

A PROJECT REPORT OF MARKETING MANAGEMENT ON

Idea Cellular Limited

SUBMITTED TO: PROF. BHAVESH VANPARIA

SUBMITTED BY: AMIN PATTANI ROLL NO. 08100 SEM – II, GROUP - II

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Telecom Industry in India: The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a grow growth th rate rate of 45 45%, %, Indi Indian an tele teleco com m indu indust stry ry has has the the high highes estt growth rate in the world. Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. India‘s mobile phone subscriber base is growing at a rate of 82.2%. China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that Indi India’ a’ss shar sharee in Asia Asia Paci Pacifi ficc Mo Mobi bile le Phon Phonee mark market et is 6.4% 6.4%.. Considering the fact that India and China has almost comparable populations, India’s low mobile penetration offers huge scope for growth.

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History of Indian Telecommunications: Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone serv servic ices es were were merg merged ed with with the the po post stal al syst system em.. Indi Indian an Radi Radio o Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in tel teleco ecommun unic icaatio tions equi equipm pmen entt manuf anufac actu turi ring ng.. In 19 1985 85,, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: TOLANI TOLANI INST INSTITU ITUTE TE OF MANA MANAGEM GEMENT ENT STUD STUDIES IES Page Page

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the Videsh Videsh Sancha Sancharr Nigam Nigam Limit Limited ed (VSNL (VSNL)) for intern internati ationa onall telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a compre comprehen hensi sive ve roadma roadmap p for the Indian Indian teleco telecomm mmuni unicat cation ionss sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year. Tele Teleco comm mmun unic icat atio ion n sect sector or in Indi Indiaa can can be divi divide ded d into into two two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, highend services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two two cate catego gori ries es:: Glob Global al Syst System em for for Mo Mobi bile le Comm Commun unic icat atio ions ns (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, whil whilee the the CDMA CDMA sect sector or is do domi mina nate ted d by Reli Relian ance ce and and Tata Tata Indicom.


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Opening up of international and domestic long distance telephony serv servic ices es are are the the majo majorr grow growth th driv driver erss for for cell cellul ular ar indu indust stry ry.. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. 

Introduction of Idea Cellular Limited: Idea Cellular is a part of the US $24 billion Aditya Birla Group and a leading GSM mobile services operator with licenses to operate in 13 telecom service areas in India. The company has operations in Delhi, Himachal Pradesh, Rajasthan, Haryana, Uttar Pradesh (W) & Uttaranchal, Uttar Pradesh (E), Madhya Pradesh & Chattisgarh, Gujarat, Maharashtra & Goa, Andhra Pradesh and Kera Kerala la with with the the plan planne ned d expa expans nsio ion n into into Mu Mumb mbai ai,, Biha Biharr & Jharkhand. Idea’s footprint will cover nearly 70 percent of India’s telephony potential. Idea Cellular Cellular had 16.13 Million subscribers subscribers as on June 30, 2007, and had a market share of 15.4 percent as on June 30, 2007 in its 11 service areas of operation.

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History of Idea Cellular Limited: Idea Cellular's history dates back to the year 1995, when it was incorporated as Birla Communications Services The following year year,, the the comp compan any y ente entere red d into into a join jointt vent ventur uree with with Gras Grasim im Industries and the global telecom giant AT&T. The same year, its name was changed to Birla AT&T Communications Limited. A merger with Tata Cellular Limited took place in 2000. In 2002, the company created the brand ‘Idea' and changed its name to Idea Cellular Limited. The same year it launched operations in Delhi and crossed the one million subscriber base; in 2005, it crossed the subscriber base of five million. In 2006, the Tata Group transferred all its shares to the Aditya Birla Group and the group became the largest shareholder in the company. In 2007, Idea came with an IPO and got listed on the TOLANI TOLANI INST INSTITU ITUTE TE OF MANA MANAGEM GEMENT ENT STUD STUDIES IES Page Page

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bourses - the same year it reached the subscriber base of 20 million.

Environmental Environmental Scanning The marketing environment within which a company operates is dynamic. There are two types of environment. 1. Micro environment 2. Macro environment 1. Micro Micro enviro environm nment ent::

The micro environment is “the forces close to the company that affects its ability to serve its customers.” 2. Macro Macro enviro environm nment ent::

The macro macro environme environment nt is “the larger societal forces that affects affects the whole macro environment.” environment.” The macro macro environment environment consist consist of six type typess of forces ces Demo emograp graph hic, ic, Econ conomi omic, Nat Natural ural,, Tech Techno nolo logi gica cal, l, Poli Politi tica call and and Cult Cultur ural al forc forces es.. A comp compan any’ y’ss marketing strategy must take into account changes and trends in this environment that can present opportunities or pose threats. A successful firm in one that regularly modifies it marketing mix and strategies to adapt to these changes. 

Political Factors: Neg Negle lect cted ed area area has has been been no nonn-ex exis iste tenc ncee of any any gu guid idel elin ines es for for installation of towers in every nook and corner of the country. In ourr ende ou endeav avor or to grow grow,, prop proper er atte attent ntio ion n is miss missin ing g for for safe safety ty asso associ ciat ated ed with with towe towers rs.. Lots ots of towe towers rs in Indi Indiaa have have been been inst instal alle led d on roof roof tops tops of weak weak and and un unsa safe fe bu buil ildi ding ngs. s. Duri During ng construction, hardly anybody has planned for towers on roof tops. It is unexpected that the structure feasibility of all buildings is undertaken before towers are installed. There are cases where more than two or even three towers have been installed at a single location. TOLANI TOLANI INST INSTITU ITUTE TE OF MANA MANAGEM GEMENT ENT STUD STUDIES IES Page Page

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Economic Factors: 1. Inco Income me grou group: p:

Now a day, lower class people also use mobile phones. And idea simcard is affordable by any class. 2. price price elasti elasticit city: y:

Demand of idea simcard is increasing day by day so the price of idea simcard is decreasing.

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Social Factors: 

Espe Especi cial ally ly idea idea cell cellul ular ar prov provid ides es many many offe offers rs whic which h attracts customer of all age groups. For example, sms offers can easily attract youngsters. And people who are using idea simcard, can talk at very less call rate. So most of people use this product.

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Idea cellular limited has many big names and good brand image so bulk of the people use idea simcards.

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Good Good adve advert rtis isem emen entt alwa always ys attr attrac acts ts peop people le & idea idea cellular limited introduces new and attractive advertisement regularly and have celebrity as their brand ambassador like Abhishek Bachchan, so it is a big factor.

Technological Factors: 

Initially the memory of sim card for contact saving was less, but now a days we can get more memory in that.

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Now there is facilities of GPRS is also available in Idea simcard.

Demographic Factors: 1.

Gender: This is used by both males and females.

2.

Age group: mostly we see that mobiles are used by all age group from teenagers to older ones.


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3.

Population: we kno now w that that if the the pop opul ulat atiion onss increase, the use of cell phone will also increase.

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Occupation: This is used by the entire person. So occupation is not affecting on it.

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Income: Now a day’s income factor is not affecting to this. Because it is available at very cheap price now.

Marketing Research Process

1. Define the problem, the decision alternatives, and the research objectives.

2. Develop the Research plan

6. Make the Decision Market Research Process

5. Present the Findings

3. Collect the Information 4. Analyze the Information


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Step – 1: Define the problem, the decision alternatives, alternatives, and the the research objectives

There are many brands available in market like Airtel, Vodafone, Tata, Reliance and Virgin. So, if any of these mobile operators give new schemes in less price then customers easily get attract from the scheme and switch over from our brand. Step – 2: Develop the research Plan

The second second stage stage of market marketing ing resear research ch requir requires es develo developin ping g the most most effici efficient ent plan plan for for gather gathering ing the requir required ed inform informati ation. on. This This involves decision on the data sources, research approaches, research instruments, sampling plan and contact methods. So the research we will select questioner method i.e. we will prepare questioner and do the research. Sampling Sampling plan: plan: Afte Afterr deci decidi ding ng on the the rese resear arch ch appr approa oach ch and and instruments, the marketing researcher must design sampling plan. These call for 3 decisions. 1. Sampling Sampling Unit: Unit: Who Who should should we survey? survey?

In Idea Cellular the target consumer is the consumer of age between 15 to 60 years. 2. Sample Sample Size: Size: How many many people people should should we survey? survey?

In this step marketer decides from which area and number of sample they take for research. For e.g. the researcher decides to take the sample of 200 respondents from the society. 3. Sampling Sampling procedur procedure: e: how should should we choose the respond respondents? ents?

After the researcher has decided the sample unit and sample size they should decide how should be choose the respondents. There are two sampling procedure. •

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Probability sample: it means he gives equal chance to all the respondents. Non probability sample: it means unequal chance to the respondent.


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And for the researcher non probability sample is easy to reach to the respondents for his research process. Research will choose non no n prob probab abil ilit ity y samp sample le and and in this this proc proces esss he will will choo choose se convenient sample i.e. the researcher select the most assessable population members. Step – 3: Collect the information

The data The data coll collec ecti tion on ph phas asee of mark market etin ing g rese resear arch ch is the the most most expensive and the most prostrate to error. Today is the era of computer technology and so the researcher will use computer technologies i.e. new researcher software, internet etc. and face to face face metho ethods ds for fill up the qu ques esti tion onna naiire and and gat gather her the the information. Step – 4: Analyze the information

The next step in the process is to extract findings by analyzing the info inforrmatio ation n and and dev develop elopiing frequ equenc ency dist istribu buti tion on.. The researchers now compute averages and measures of dispersion for the major variables and apply statistical techniques and decision models in the hope of discovering additional findings. Step – 5: Present the findings

As the last step, the researcher presents findings relevant to the majo majorr mark market etin ing g deci decisi sion onss faci facing ng mana manage geme ment nt.. Rese Resear arch cher erss incr increa eassingl ingly y are bein eing aske asked d to play play a con consult sultiing role role in translating data and information into recommendations. They are als also cons consiider dering way ways to pres presen entt rese esearch arch find findin ings gs in as understandable and compelling a fashion as possible. Step – 6: Make the decision

The study conducted is a conclusive descriptive statistical study; the researcher comes to the decision which is precise and rational. Thee stud Th study y is conc conclu lusi sive ve beca becaus usee afte afterr do doin ing g the the stud study y the the researcher comes to a conclusion regarding the position of the brand in the minds of respondents of different firms groups. The study is statistical because throughout the study all the similar


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samples are selected and group together. All the similar responses are taken together as one and their percentages are calculated. Thus, this conclusive descriptive statistical study is the best study for this purpose as it provides the necessary information which is utilize to arrive at a concrete decision

Questionnaires 1)

Are you fond of mobile phones?

Yes No 2)

Do you use any mobile phones?

Yes No 3)

Which company’s simcard do you prefer to use?

Idea Airtel Vodafone BSNL Reliance 4)

From which so sources di did yo you ge get information ab about these simcards?

Newspapers Television Friends TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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Others 5)

Are you aware of Idea simcard?

Yes No 6)

Have you seen any advertisement of idea cellular limited?

Yes No 7)

Do you use Idea simcards?

Yes No 8)

Do you want to buy Idea sim card?

Yes No Cant say now 9)

Which factor do you considered while buying Idea Cellular Limited?

Network Schemes Brand image Call Charges If other than please specify………………. specify……………….

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10)

From how long do you use Idea simcard?

less than a year 1 to 3 year More than 3 years 11)

Have you seen any advertisement of Idea Cellular Limited?

Yes No 12)

Do you face network problem any time?

Sometime Never Often 13)

In wh which ar area of se service in in id idea si simcard do do yo you want to to improve?

Network Quality Schemes Call Charges. 14)

Do you satisfied wi with the service of of Idea Cellular Limited?

Yes TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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No.

15)

If no not than gi give th the su suggestions fo for im improvement.

…………………………………………………………………… …………………………………………………………………… Name: ……………………………………………. Sex: ……………….

Age: ……………………..

Qualification: ……………………………………. Contact No.: ………………………………………


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Forecasting and Estimating Demand One main reason for undertaking marketing research is to identify mark market et op oppo port rtun unit itie iess for for ou ourr prod produc uct. t. Once Once the the rese resear arch ch is completed, company must forecast size, growth and profit for market opportunities. opportunities. 1.

Measure of Market Demand:

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Potential Market:

Pote Potent ntia iall mark market et is the the set set of cons consum umer erss who who ackn acknow owle ledg dgee a suff suffic icie ient nt leve levell of inte intere rest st in a mark market et.. So many many peop people le use use mobile phones and have interest in purchase of new simcard for new mobile phones as well as old mobile phones for experience a new new serv servic ices es and and sche scheme mes. s. So the the po pote tent ntia iall mark market et of idea idea cellular is large. •

Available Market:

Avai Availa labl blee mark market et is the the set set of cons consum umer erss who who have have inte intere rest st,, income, and access to particular offer. The price of idea simcard is reasonable with lower call rates and new schemes. So that customers attract from idea simcard and so the available marker of idea simcard is large. •

Qualified Available Market:

Qual Qualif ifie ied d avai availa labl blee mark market et is the the set set of cons consum umer er who who have have inte intere rest st,, inco income me,, acce access ss and and qu qual alif ific icat atio ion n for for the the part partic icul ular ar product. As the idea simcard does not require any such qualification so there is no need for the idea simcard for this market. •

Target Market:

Targ Target et mark market et is the the set set of qu qual alif ifie ied d avai availa labl blee mark market et the the company decides to pursue. The Idea Cellular Services might decide decide to concen concentra trate te its market marketing ing and distri distribut bution ion effor effortt on particular area or particular villages where the network of idea cellular is not available. So the Idea Cellular decides to put its effort for Idea Cellular Services in particular areas or villages.


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Now a day Idea Cellular has started to give a new network towers in small villages for choosing their target market. •

Penetrated Market:

Pene Penetr trat ated ed mark market et is set set of cons consum umer erss who who are are bu buyi ying ng the the company’s product. product. As the Idea Cellular made its its effort on small villages and some particular areas and in India most of the people especially young generation wants new schemes and less call rates and also new sms schemes and Idea Cellular provides all these facilities in lower cost as compare to other one. So the penetrated market of the Idea Cellular is also large. 2. Estimatin Estimating g Curren Currentt Deman Demand: d:

Rese Resear arch cher er is no now w read ready y to exam examin inee some some of meth method odss for for estimating current market demand. Marketing executives want to estimate total market potential, area market potential and total industry sales and market share. •

Total Market Potential:

Totall Mark Tota Market et Pote Potent ntia iall is the the maxi maximu mum m amou amount nt of sale saless that that might be available to all the firms in an industry during a given per perio iod, d, un unde derr a give given n leve levell of indu indust stry ry mark market etin ing g effo effort rt and and environment conditions. A common way to estimate total market potential is as follows:Tota Totall Mark Market et Pote Potent ntiial = Pote Potent ntia iall No. of Buyer uyerss X Average Quantity Purchased By a Buyer X Price

For e.g.: Total Market Potential = 20000 buyers X 1 simcard X Rs. 30 = Rs. 6,00,000 Total Market Potential


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Area Market Potential: Potential:

Companies face the problem of selecting the best territories and allo alloca cati ting ng thei theirr mark market etin ing g bu budg dget et op opti tima mall lly y amon among g thes thesee territories. Therefore, they need to estimate the market potential of different districts, towns, cities, states, and nations. Two major method methodss of asses assessin sing g area area market market potent potential ial are availa available ble:: the market builds up method, which is used primarily by business marketers, and the multiple-factor index method, which is used primarily by consumer marketers. The marketer has decided decided to use Market-Build Market-Buildup up Method Method as this method gives accurate result.

Consumer Buying Behaviour Factor Affecting To Product Consumer behavior is the study of how individuals, groups, and organization select, buy, use and dispose of goods, services, ideas or experience to satisfy their needs and wants. A consumer’s buying behavior is affected by cultural and social factors. •

Cultural Factors:

Culture: As in Idea Prepaid Simcards, the cultural factor is not affecting much. Social class: Social class includes lower class, middle class and uppe up perr clas class. s. Th This is some someti time mess affe affect ctss the the dema demand nd of the the Idea Idea Prep Prepai aid d Simc Simcar ard, d, beca becaus usee thes thesee all all cate catego gori ries es peop people le most mostly ly pre prefe ferr Idea Idea Prep Prepai aid d Simc Simcar ard d beca becaus usee of lowe lowerr call call rate rate in reas reason onab able le char charge ges. s. So it affe affect ctss to the the dema demand nd of the the Idea Idea Prepaid Simcard.


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Social Factors:

Social factors such as reference groups, family, and social roles and statuses affect consumer buying behavior. Reference group: The reference group is that who connected or dai daily comm ommun unic icat atee wit with each each othe otherr like ike famil amily, y, frien iends, ds, neighborhood, relatives etc. So because of this reference group they they prov provid idee the the info inform rmat atio ion n of Idea Idea Prep Prepai aid d Simc Simcar ard d like like serv servic ices es and and othe otherr faci facili liti ties es,, by kn know owin ing g some some of the the go good od features and services by reference group of this product person can easily influenced by them and so that the demand of the product also increase. Family: Th Thee fami family ly is the the most most impo import rtan antt cons consum umer er bu buyi ying ng organization in society, and family members constitute the most influential primary reference group. In family if some one using the service of Idea Prepaid Simcard than the other members is influenced by the family members and also use the service of Idea Prepaid Simcard. Status: One of the advertisement campaign is “Aaj Se Koi Bi Apne Nam Se Nahi Jana Jayega” . From this campaign many high level people and also politicians using Idea Prepaid Simcard because of adding value in their status. So status also affect in increasing in demand. •

Personal Factors:

Age Age and and stag stagee in th thee life life cycl cycle: e: This affects much when a student’s in their schooling they don’t want much services and schemes in prepaid simcards, but after passing their schooling they entered in college and so that at that time they wants more servic services es and scheme schemess in reason reasonabl ablee price price for connec connectin ting g with with friends and relatives or increase their contacts. So this factor is much affects on demand of Idea Prepaid Simcard.


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Occupation and economic circumstances: This also affects the dem demand and beca becaus usee in any any occu occupa pattion ion com company pany hav have a more ore cont contac acts ts with with cust custom omer ers, s, supp suppli lier erss etc. etc. so that that they they want wantss to connected with their suppliers and customers and so that they want want less less call call rate rate in reas reason onab able le pric price. e. So occu occupa pati tion on and and economic circumstances are also affects the demand of the Idea Prepaid Simcard. Personality and self concept: This has also affect on the demand of the Idea Prepaid Simcard because a person has its own view point of selecting the product and if does not like the Idea Prepaid Service he may switch over to the other prepaid simcard. Lifestyle Lifestyle and values: values: It also affects the demand of the Idea Prepaid Simcards because person’s lifestyle and its value play a great role in choosing any product.

Identify Market Segment of the Product We can segmen segmentt any produc productt into into Geogra Geographi phic, c, Demogr Demograph aphic, ic, Psychographic and Behavioral. So the market segment of Idea Prepaid Simcard is as below.

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Geographic:

Region: Idea GSM services are licensed in 13 circles of India, so that these services are used by people in different circles and also used by different region people. City: Idea Prepaid Simcard is used in metro city, mega city and also also in smal smalll vill villag ages es beca becaus usee of reas reason onab able le pric prices es and and also also offered many schemes for people in less monthly rental.

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Demographic:

Age: Idea Prepaid Simcard is used by age group of 15 to 55 years. Now-a-days this prepaid service is also used by below this age group. TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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Family size: We can also segment our product based on family size because if the family size is large and if they are using more mobile phones in family for connected with each other then they also using prepaid services. Income: Income is not much affects in segmenting the market because price of Idea Prepaid is reasonable and the lower class people also afford it. Occupation: Occupation also affect in segmenting the market because Idea Prepaid simcard is only not used by lower class and middle class people but also used by higher class people who have their own business. Education: Education does not affect the segment of the Idea Prepaid Simcard because Idea Prepaid Simcard has been used by educated people as well as uneducated people.

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Psychographic:-

Lifestyle: Lifestyle also affects in segmenting the market. So the marketer while segmenting the market of Idea Prepaid should keep this in his mind, because high class people also using this service. Personality: Personality does not affect the Idea Prepaid Service in segmenting his market.

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Behaviour:

Behviour does not affect in segmenting the market.

Select Brand Element for Product There are six main criteria for choosing brand elements. The first three-Memorable, Meaningful, and likeable are “brand building”. The latter three are Transferable, Adaptable, and Protectable are “defensive”. Memorable: How How easi easily ly is the the bran brand d elem elemen entt reca recall lled ed and and recognized? Idea Cellular is having a reputed telecommunication TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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service, and having a good logo. Idea Cellular Service has a good punch line “An Idea Can Change Your Life” and “For the People, By the People” which is very easy in recall it. Meaningful: Is the brand element credible and suggestive of the corresponding category? Idea Cellular Service is having a punch line “An Idea Can Change Your Life” means new ideas gives you new life for enjoyment and success. Likable: Idea Prepared simcard liked by most of the people and most of the people wants to use it because of good service provide by them in affordable price. Adaptable: Idea Cellular Service is providing two services i.e. prepaid and postpaid. So when people can here these two services of Idea Cellular then they easily recall the name of Idea Cellular Service.

Develop Product Life Cycle

Introduction: In the initial stage Idea Cellular was introduced in all the major cities of India. There were many competitors in the tele-c tele-com ommun munica icatio tion n busine business ss,, which which provi provided ded the line-b line-base ased d TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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conn connec ecti tion on and and wire wirele less ss conn connec ecti tion on wher wherea eass Idea Idea Cell Cellul ular ar provided the wireless connections to the customers. So profits are nonexistent because of the heavy expenses on giving schemes of service introduction. In the case of Idea Prepaid Service as it was introduced in the year 1995 so it was the introduction stage. Growth: In the the grow growth th stag stage, e, the the Idea Idea Cell Cellul ular ar sale saless star starte ted d growing. And the profits also started rising. Idea Prepaid Service growth stage was year 2002 because by the 2002’s, Idea Prepaid got the 1 million subscribers, and in 2005 it crossed 5 million subscribers. Maturity: Idea Idea Cell Cellul ular ar is righ rightt no now w in the the matu maturi rity ty stag stage, e, because they have got most of the market share. There has also been an increase in competition; new companies like Reliance GSM, Aircel etc. also enter into the market. The Idea Cellular had made not only the service modification, but also extend their market.

So, we can say that Idea Cellular is today on its maturity stage of its product life cycle.

Differentiate your Product from Competitors in the market Differentiation is actually differentiating the market offering to create superior customer value, once a company has chosen a des desired po possitio tion it must ust take ake strong rong stri trips to del deliver ver and and commun communica icate te that that posit position ion to target target consum consumers ers.. The compan company y entire marketing program should support the chosen positioning strategy. Idea Cellular has differentiation its products by doing different activities as follows: • Price affordability affordability • Hire famous personalities personalities • Only company offers package for ladies • Roaming facilities in affordable charges • Idea Cellular PCO TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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Now we can differentiate Idea Cellular from competitors in the market as below. Brand Name: As compared with its competitors Idea Cellular is having good brand name in the market and they can easily attract their target customers by their name and which is most important for differentiate brand from competitors. Preferences: As prepaid simcard users uses the simcards as per their convenient. Most of the people want more schemes and less call call rate ratess in reas reason onab able le pric prices es.. So that that cust custom omer er can can choo choose se services as per their choice and preference. Promotion: Idea cellular Ltd. is using promotion strategy for increase the sales and demand of the product. They are giving schemes like free sms services, GPRS service, less call rates etc. in reasonable monthly rental so that customer can easily attract from this promotional schemes.

Classify the Product Marketers have traditionally classified products on the basis of durabi durabilit lity, y, tangib tangibili ility ty and use (consu (consumer mer or indus industri trial) al).. Each Each product type has appropriate marketing-mix marketing-mix strategy. Durable and tangibility: tangibility: Durability: Idea Prepaid Simcard is durable goods because it is not purchased by the buyers on regular basis. Services: Serv Servic ices es are are inta intang ngib ible le,, insp inspir irab able le,, vari variab able le and and peri perisha shable ble produc products ts.. As a result result they they norma normally lly requir required ed more more quality control, supplier credibility and adaptability. As in Idea Prep Prepai aid d Serv Servic icee they they prov provid ides es VAS VAS (Val (Value ue Adde Added d Serv Servic ice) e),, Roaming facilities etc.

Consumer Goods Classification: Classification:


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We classify the vast array of goods consumers buy on the basis of shopping habits. We distinguish among convenience, shopping, specialty and unsought goods. Convenien Convenience ce goods: goods: In convenience goods the Idea Prepaid Simcard is impulse goods because it is purchased without any planning and such efforts.

Long Term Pricing Strategy a) At what stage in the the life cycle is the the product?

Idea Cellular is right now in the maturity stage, because there has also also been been an incr increa ease se in comp compet etit itio ion; n; new new comp compan anie iess like like Reliance GSM, Aircel etc. also enter into the market. b) What is is its current current price? price?

The current price of Idea Prepaid Simcard is Rs. 30. In this price they gave Rs. 10 talk time and life time validity because of more competition in market. c) What price price do its its competit competitors ors charge? charge?

The competitors of Idea Prepaid are also giving this all facilities in same price of Rs. 30. Competitor like Vodafone is giving free prepaid simcards with Rs. 10 talk time and lifetime validity for increasing in users of their services. d) What What prices prices will you charge charge in the remainin remaining g stages stages of the product life cycle?

Right now Idea Cellular is in the stage of maturity, but if this fall into decline stage than I have also reduce the price as per the competitor’s price and give more schemes. Because of this price I will increase my sales and users of our product.

e) What objecti objectives ves will be accomplish accomplished ed this way? How? How? TOLANI INSTITUTE INSTITUTE OF MANAGEMENT STUDIES STUDIES Page

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To increase the market share

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To achieve high return on capital

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To increase awareness of the product in market

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To fight with competitors

Marketing Channel The marketing channel of Idea Cellular is as below.

In this channel first manufacture produce the simcards and then they sent to the wholesaler as per the order. Wholesalers send to the the reta retail iler erss and and shop shopke keep eper erss and and then then last lastly ly reta retail iler er sale saless to customer.


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PULL Strategy is develop by the Idea Cellular. As Idea Cellular is very known brand and is punch line is “For the People, By the People” and “An Idea Can Change Your Life” which is very good that’s why Penetrated Market consumer know about that and they ask about Idea Prepaid Simcards.

Distribution Strategy There are three types of distribution strategies. 1. 2. 3.

Exclusive distribution Selective distribution Intensive distribution

Exclusive Distribution: Distribution: Exclusive distribution means severely limiting the number of intermediaries. It is appropriate when the pro produ duce cerr want wantss to main mainta tain in cont contro roll ov over er the the serv servic icee leve levell & output outputss offer offered ed by the resell resellers ers & it often often includ includes es exclus exclusive ive deali dealings ngs arrang arrangeme ement nt by granti granting ng exclus exclusive ive distr distribu ibuti tion, on, the producer hope to obtain more dedicated & knowledgeable.

Selective Distribution: Distribution: Selective distribution relies on more than a few but less than all of the intermediaries willing to carry a part particu icular lar produc product. t. It makes makes sense sense for establ establis ished hed compan companies ies seeking distributors. distributors. Inte Intens nsiv ivee Dist Distri ribu buti tion on:: In intensive distribution the manufacturer places the goods or services in as many outlets as possible. This strategy is used for items such as snack foods, soft drinks, newspapers, candies etc.


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Distribution Strategy for Idea Cellular: We will use selective distribution. It involves the use of less intermediaries who are will willin ing g to carr carry y the the part partic icul ular ar prod produc uct. t. It can can gain gain adeq adequa uate te market coverage with more control and less cost.

Advertisement Advertisement of Idea Cellular Ltd.


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Marketing Report on Idea Cellular Ltd.

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