SUMMER TRAINING / PROJECT REPORT POST GRADUATE PROGRAMME IN BUSINESS MANAGEMENT (PGPBM PROGRAMME) 2011-2013
PRESENT BY: SOUMYA CHOPRA ROLL NO: V3134,
BATCH: 2011-2013
INTERNATIONAL SCHOOL OF BUSINESS & MEDIA
Performed At: Tikona Digital Network
Acknowledgement I take this opportunity to express my gratitude to the people who have been instrumental in successful completion of this project. I express my sincere gratitude gr atitude to my mentor and guide Mr. Rudra Sengupta, city sales head Tikona Digital Network and Suparna Pal for their able guidance, motivation, and continuous support throughout my project, without which the present work would not have been possible. I am grateful to my college director professor Shiv Kumar Srivastava for providing me with this opportunity. I am also thankful to my college, seniors s eniors and friends for their constant help and support. I am also grateful to the faculties of International School of Business and Media for their encouragement and guidance.
Certificate
Student Declaration I hereby declare that I have completed the project “Use of IT and internet in small and medium enterprise” and all other assignments as part of summer internship project in Tikona Digital Network from 9 th April 2012 to 8 th June 2012 and have handed over all reports, material to the satisfaction of my project guide and mentor Mr. Rudra Sengupta. The information and data given in the report is authentic and best to my knowledge. I have also discussed and submitted my final summer project to the company. The results embodied in this thesis have not been submitted s ubmitted to any other University or Institute for the award of any degree or diploma.
Soumya Chopra
Executive Summary A small enterprise is one where the investment in plant and machinery is more than Rs.25 lakh but does not exceed Rs.5 crore. A medium enterprise is one where the investment in plant and machinery is more than Rs.5 crore, but does not exceed Rs.10 crore. The Indian small and enterprises sector plays a pivotal role in the country's industrial economy. It is estimated that in value, the sector accounts for about 39 percent of manufacturing output and about 33 percent of total exports. In recent years, the SME sector has consistently registered a higher growth rate than the overall industrial sector. Internet in today’s modern world comprises of many components right from online surfing the use of internet to the extreme. In SME’s also it retain the competitive advantage and to remain in the market it is important to incorporate Internet marketing, web presence, e-mail, and other forms of e- commerce to drive the marketing and sales campaign.
I did my internship at Tikona digital Network .Very new in the market, formed in March 2009; Tikona Digital Digital Network offers Wireless Broadband Broadband services. The project assigned was “Use of IT and internet in small and medium enterprise” in which I have to conduct a survey for 2 months and find out the market potential for the data products which include Internet Leased Line and Lease Line. Through this information I analyzed the market potential of the product. On the basis of this analysis I have prepared a report and used pie chart, bar diagrams and tables for better explanation. Through the survey I visited 408 companies and had the information regarding the project. The objective of this study is to find out the market potential for the internet usage which includes Internet Leased Line, Wi-Fi, broadband within SME companies and what all benefits people look in an Internet service provider and the factors influencing the buying decision of Data Product.
Table of Contents Acknowledgment ……………………………………………………………….2 Certificate……………………………………………………………………….3 Declaration……………………………………………………………………...4 Executive Summary…………………………………………………………....5 Introduction ………………………………………………………………….…8 Introduction about TIKONA………………………………………………....11
Value for the company …………………….…………12 Products and services………………………………...13 Tariff plans of Tikona…………………….………….14 Theoretical background of the topic………………………………………….18
Internet service provider………………………….....18 provider………………………….....18
Stages in Product life cycle ……………………….....18 Broadband Internet users…………………………....19 Leased line…………………………………………..22 Internet Leased Port…………………………………23 Objectives Of The Study………………………………………………………24 Scope Of The Project…………………………………………………………..25
.................................................................................. ..................................26 26 Limitation Of The Project................................................
Research Methodology Methodology………………………………………………………..27
................................................................................... ............................................29 ..........29 DATA ANALYSIS................................................. Location of headquarter …………………………....29 USE of Internet…………………………………….30 Service Provider …………………………………....31 Companies using Airtel …………………………….32 Companies using BSNL ……………………………33 Monthly expenses spend on internet ……………….34 Satisfaction Level …………………………………..35 Looking for change provider ……………………….36 Observation……………………………………………………………………..37 Conclusion………………………………………………………………………39 SWOT Analysis………………………………………………………………...40 Recommendations ……………………………………………………………...41
............................................................................. ..............................................................42 .................................42 Annexure................................................ Bibliography Bibliography and References................................................ ............................................................................. .............................43 43
Introduction Type Industry
Broadband Service Provider Internet Service Provider
Founded
2008
Headquarter
Mumbai, India
Key People
Prakash Bajpai
Product
Wireless Broadband
Website
www.tikona.in
This report has been prepared as a part of the Summer Internship program at Tikona Digital Networks. Very new in the market, formed in March 2009, Tikona Digital Network offers Wireless Broadband services. Right now they operate in two areas, i.e. home segment and corporate segment. Their primary target audiences for home segment are the authorized person of the buildings and complexes who give permission to put Tikona Digital Network access point (A.P) on the terrace of their buildings. Subscribers who have opted for Home Solution can use the service on Wi-Fi enabled devices such as Smart phones, tablets, and touch pads after this the secondary target audiences are the people living in those complexes who use the broadband services. For corporate segment they offer services like Direct to Office Leased Line, Differential Access, Secured Office Wi-Fi, Secured Boardroom Internet, and Video Conferencing Traffic Offload. Currently Tikona Digital Digital Network is operating operating in 38 cities and it has plans to expand its services in other cities also.
According to the 'Internet Economy’ in the G-20 report by the Boston Consulting Group, SMEs constitute 17 percent of India's GDP they are responsible for 25 percent of private-sector employment but the report finds that a surprising number of SMEs have not grasped the power of the Internet to build their businesses or have ventured only to a very limited extent. Half of Small and medium enterprise in India cited local business culture, a significant barrier keeping SMEs from engaging more broadly or deeply online
The most powerful advantage of the Internet for the SMEs is an improved level of customer interaction which is achieved by exploiting the participatory nature of today’s internet , hence there is a huge untapped market for tikona and this survey will help the company to know the preferences and benefit people look in their service provider. The project given to me here was: 1) To do a market survey in Kolkata and to know the use of IT & INTERNET in small & medium enterprises with the help of a questionnaire. I did this survey not as TIKONA representative but as a M.B.A. college student as a live project. 2) If some prospective customer are looking for a change in there Internet Service Provider then my work was to provide those leads to the company and there Sales representative will look after to convert those leads as Tikona Digital Customers. 3) To know exactly what all benefits people look in an ISP I SP i.e. speed, rentals etc. The project assigned to me was “Use of IT and internet in small and medium businesses in India” in which I have to conduct a survey and find out the market potential for the internet usage which include Internet Leased Line, Wi-Fi, broadband within SME companies.
I did my project in the following steps:
collection of basic information
target market segmantation
survey
data collection
analyzing the data
preparing the report
First I collected the basic information about the product and then I decided on target market segment then I prepared the questionnaire after that I did the market survey and then I collected the data and analyzed the data and then prepared the report using used pie chart, bar diagrams and tables for better explanation. For the survey I visited 408 small and medium companies I got information about these enterprises from books like yellow book, magazines and internet. These entire task involved field work. Through this internship programmer I got opportunities to meet and talk with corporate and got ample field experience. It has been a great learning experience working with TIKONA DIGITAL NETWORKS.
Introduction About TIKONA: Tikona Digital Networks (TDN) is an Indian Internet service provider founded in the year 2008 by Prakash Bajpai it is engaged in building the next generation wireless broadband services for home and enterprise customers. Its head office is in Mumbai. It provides fourth generation or 4G wireless broadband internet OFDM (Orthogonal frequency-division multiplexing) multiplexing) and MIMO ( multiple out multiple input) wireless technology to provide broadband services. TDN has an all India Class-A ISP license granted by the Ministry of Communications, Communications, Govt. of India. It would also be building building a comprehensive services framework that can deliver leading edge voice, video, IT applications and multimedia content services over any broadband or IP-centric network. Such a framework can be outsourced by service providers globally, who desire to offer next generation services to their customers. TDN has engaged the best-in-class technology partners to build the required r equired capability frameworks. The companies most of the investment from private equity companies Goldman Sachs Investment Partners (22.8 percent stake), in division India Partners (13.46% stake), Oak India Investments (23.55% stake) and Green Lotus Investments (10.09% stake). No of Employees are 251-500 and the Turnover in Crs – 10-100 Crs.
Values for company: 1) Customer First
The core business strategy is guided by customer value, customer sensitivity and customer convenience. 2) Respect for Talent Talent
They create and maintain a transparent and respectful work environment that helps in attracting, retaining and nurturing the best talent. They encourage an open work culture that is conducive to making work joyful. 3) Innovation Innovation is driving force and they create environment for our people to conceive and incubate new ideas in order to develop and deliver useful services and solutions for their customers, thereby sustaining their competitive advantages. 4) Win Win for all It works for the success of their customers, investors, employees and ecosystem partners. It believes in empowering, motivating, appreciating and inculcating a sense of ownership among the members of TDN eco-system. eco -system. 5) Integrity They are accountable to all their stakeholders, regulators, government and customers and believe in adopting a culture of ethical business practices, transparency and highest standards of corporate governance 6) Corporate Social Responsibi Responsibility lity
Tikona imbibe in high standards of social and civic responsibility, as they firmly believe that they should contribute to the society in which they operate. It aims at providing the community technologies and solutions to support them in their growth and development. TDN is deeply committed to the cause of reducing the digital divide that exists in the country across geographies and different socio-economic segments. In this regard, TDN plans to extend Broadband and IT services at marginal costs to schools, healthcare institutes and government or non-government establishments engaged in providing services to masses that do not have access to such services.
Three prolonged strategy:
True to its name, which means triangle, company has been following a threepronged strategy to capture capture the broadband market. The strategy is to create: •
1) A coverage leadership (presence across India)
•
2) A cost leadership (low tariff plans)
•
3) A capacity leadership (to serve a large number of customers)
Products and services: Currently Tikona Tikona digital network services are available in 38 cities across India. It offers varied services to home and enterprise users. •
FOR BUSINESS:
Tikona Enterprise Solutions offers the following products and services to business: •
•
•
•
•
Direct to Office Leased Line: For near 100% Internet uptime with link load balancing and failover routing. Differential Access: For customized bandwidth per user group. Secured Office Wi-Fi: Allows employees to work from anywhere in the office using devices such as tablets, notebooks, smart phones. Secured Boardroom Internet: For easy and secure guest Internet access. Video Conferencing Traffic Offload: For simplifying and optimizing your MPLS VPN bandwidth.
FOR HOME:
Tikona Enterprise Solutions offers the following products and services to houses: Subscribers who have opted for Home Solution can use the service on Wi-Fi enabled devices such as Smart phones, tablets, touch pads it off ers services like: •
Speed up to 4 Mbps
•
On call tech support
•
Complementary anti-virus
•
Bill limit guarantee.
Tariff Plans of Tikona Digital Network:
Customer has a wide choice of tariff plans depending on their needs of speed, consumption (usage) and budget. Customer Service Experience is based on Tariff Plan selected.
Circuit Breaker Plans :
Provide up to 2Mbps speed within specific Download Limit. After the Download Limit, connection connection speed reduces up to 64 kbps. Customer has a choice to restore speed back to 2Mbps by paying additional amount.
Unlimited Plans:
Provide unlimited usage with download speeds up to Plan Specific Bandwidth (300 Kbps/ 600 Kbps/ 750 Kbps/ 1Mbps/ 2Mbps). These are peak Speeds and actual Usage speeds may be lower.
Fixed Monthly Charge Plans:
Provides speeds up to 2 Mbps as Bonus Bandwidth and afterwards speeds256kbps, 512kbps, 1Mbps and 2Mbps.
Future Plan:
Tikona digital network would also be building a comprehensive services framework that can deliver leading edge voice, video, IT applications and multimedia content services over any broadband or IP-centric network. Such a framework can be outsourced by service providers globally, who desire to offer next generation services to their customers. Tikona plans to launch TD-LTEbased 4G wireless broadband broadband services in Gujarat, Himachal Pradesh, Pradesh, Rajasthan, Uttar Pradesh (East) and Uttar Pradesh (West) in October 2012. Malaysia's mobile operator Axiata has been holding discussions with Tikona and may pick up a stake in the company. Currently Tikona’s postpaid services are available in these cities and the company has plans to extend its services in other cities also.
Agra
Ahmedabad
Allahabad
Bengaluru
Bhopal
Bhubaneswar
Chennai
Coimbatore
Delhi
Guntur
Hubli
Hyderabad
Indore
Jabalpur
Jaipur
Kanpur
Kochi
Kolkata
Kota
Lucknow
Madurai
Mangalore
Meerut
Mumbai
Mysore
Nagpur
Nasik
Pondicherry
Pune
Raipur
Rajkot
Solapur
Surat
Trichy
Vadodara
Varanasi
Vijayawada
Vizag
In the 4G auction state BSNL and reliance infotel were the pan India spectrum winner other winners were Bharati airtel (4) aircel (8) Tikona (5) with Gujarat being the key circle, MTNL (2) , Qualcomm (4)
Theoretical background of the topic Internet country code: .in Internet Service Providers (ISPs): 180 in the year 2010 Internet hosts: 4,536,000; Internet users: users: 121 million Internet service provider:
An Internet service s ervice provider pr ovider (ISP) is an organization that provides access to the internet. Internet service providers can be either community-owned and nonprofit, or privately owned and for-profit. Access ISPs directly connect clients to the Internet using copper wires, wireless or fiber-optic connections. In last several years, India has seen the number of internet users in the country, increasing by leaps and bounds. Today almost every house, every individual and every office has an internet connection. Several public and private sector telecom giants have come up in India, offering customized internet solutions. The internet service providers in India are long in the process of offering quality internet services suiting the need and pocket of the users. users .
Stages in Product life cycle:
It can be asserted that the Internet service is very much in its initial stages in India. It is still in earlier stages of its growth phase as shown in Figure:
Stage of Internet Service in India in the Product life cycle.
List of internet service providers in India: 1. State owned:
BSNL - servicing all of India except Mumbai and Delhi. Triple-play Broadband Services provided by ADSL and VDSL. Also providing internet services over GPRS, 3G, as well as WiMax MTNL - servicing Mumbai and Delhi. Triple-play Broadband Services provided by ADSL under the "Tri-Band" brand. Also providing GPRS and 3G internet services.
2. Privately owned, nationwide:
Airtel - ADSL, GPRS & 3G Aircel - GPRS & 3G Idea - GPRS & 3G MTS India - CDMA/EV-DO Reliance Communications - ADSL, GPRS & 3G, Metro-Ethernet, CDMA/EV-DO, Wimax Tata DoCoMo - GPRS & 3G Tata Indicom - ADSL, CDMA/EV-DO, Metro-Ethernet, WiMax
Tikona Digital Networks - Wireless 4G Broadband
3. Privately owned, regional:
Asianet Data Line - Broadband over Cable, Kerala Beam Telecom - FTTB, Hyderabad Fivenet - Broadband over Cable (Mumbai, currently expanding to Pune, Haryana and other regions) Honesty Net Solutions - Broadband over Cable, Mumbai IOL Netcom Alliance Broadband Pvt. Ltd. - Broadband Over cable, Kolkata
Private operators hold 88.56% of the wireless market share where as BSNL and MTNL, two PSU operators hold only 11.44% market share .
Broadband Internet users:
Internet access in India is largely provided by the private sector and two state-run companies and is available in a variety of forms, using a variety of technologies, at a wide range of speeds and costs. The country has the world's third largest Internet users with over 121 million users (of whom 59% who only access the internet via mobile devices) as of December 2011. However, the Internet penetration in India is one of the lowest in the world and only accounts for 8.4% of the population compared to OECD counties where average penetration rate is over 50%. The number of broadband Internet subscribers in India has started to become more significant, having more than doubled in the two-year period to end-2009. DSL, whilst holding slightly more than 75% of the local broadband market, was steadily losing market share to other non-DSL broadband platforms, especially to wireless broadband platforms. The 3G auction was followed by an equally high profile auction of 4G spectrum that set the scene for a competitive and invigorated wireless broadband market. The growth in number of broadband connections in India has accelerated since 2006. As of December 2011, total Internet connections stood at 22.39 million, while the broadband Internet connections in India had reached 13.35 million constituting 1.0% of the population. India has one of the lowest penetrations of broadband connectivity in the world. A number of private Internet Service Providers (ISPs) offer services in India, many with their own local loop and gateway infrastructures. BSNL and MTNL have continued to dominate the ISP market because of their existing massive copper infrastructure in the last-mile across the nation. An estimated 60% of Internet users were still regularly accessing the Internet via the country's more than 10,000 cyber cafes. According to International Telecommunication Union, the international average broadband speed is at 5.6 Mbps, whereas in India the average speed hovers at 256 kbit/s which is the minimum speed set by TRAI. The government declared 2007 to be "the year of broadband." Four years later, Indian broadband failed to deliver download speeds of which other developed nations delivers. South Korea led the list with an average of 43 Mbit/s, followed by Japan (10.6 Mbit/s) and United States (4.6 Mbit/s).
India broadband growth is hampered by various challenges, including a complicated tariff structure, metered billing, higher charges for right of way and absence of local-loop of local-loop unbundling. Average Internet speed in India is as low as 0.8Mbit/s. Out of the total Internet population 35% is still below 256kbit/s. To compete with international standards of defining broadband speed the Indian Government has taken aggressive step of proposing the $13 billion national broadband network to connect all cities, towns and villages with a population of more than 500 in two phases targeted for completion by 2012 and 2013.The network will be capable of handling speed up to 10Mbit/s in 63 metropolitan areas and 4Mbit/s in additional 352 cities. Leased line:
A leased line is a service contract between a provider and a customer, whereby the provider agrees to deliver a symmetric telecommunications line connecting two or more locations in exchange for a monthly rent (hence the term lease. Leased lines can be used for telephone, data or Internet service. Typically, leased lines are used by businesses to connect geographically distant offices. Unlike dial-up connections, a leased line is always active. The fee for the connection is a fixed monthly rate. The primary factors affecting the monthly fee are distance between end points and the speed of the circuit. Because the connection does not carry anybody else's communications, the carrier can assure a given level of quality. An internet leased line is a premium internet connectivity product, delivered over fiber normally, which is dedicated and provides uncontended, symmetrical speeds, Full Duplex. In India, leased lines are available at speeds of 64 kbit/s, 128 kbit/s, 256 kbit/s, 512 kbit/s, 1 Mbit/s, 2 Mbit/s, 4 Mbit/s, 8 Mbit/s, 16 Mbit/s Customers are connected either through OFC, telephone lines ADSL, or through Wifi. Customers would have to manage their own network termination equipment, namely the Channel service unit and Data service unit. Most service providers give 99% uptime guarantee.
Internet Leased Port:
ILP stands for Internet Leased Port. This is a number that indicates what kind of protocol a server on the Internet is using It is a high speed, dedicated premium bandwidth designed to specifically meet the corporate user’s requirement. Internet leased port bandwidth bandwidth is delivered delivered to the customers customers with assured SLA parameters and service commitment on critical network performance metrics like latency, packet drop, and network availability etc. Internet leased port services are designed to ensure allow the corporate users to run their web based mission critical applications on Internet with reliable network performance at all times. Internet bandwidth is delivered to the customers through wired/wireless last mile access.
Objectives Of The Study Primary Objectives:
To find out the market potential for the internet usage which include Internet Leased Line, Wi-Fi, broadband within SME companies.
To find out the factors influencing the buying decision of internet services.
Secondary Objectives:
To know exactly what all benefits people look in an Internet service provider.
To find about the prospective customers of the company
To find out the brand switch over ratio among unsatisfied customers of Wire-less internet services.
Scope Of The Project
The company wanted to know what other value added services does their clients expect from other than existing ones in order to improve customer satisfaction and customer loyalty.
The study helps to understand whether the enterprises are satisfied with their current internet service provider.
The study helps to identify the potential market customers for tikona digital network.
To find the various factors that cause the dissatisfaction to the customer and take steps to overcome it . The study help find about the benefits which an enterprise expects from its ISP.
LIMITATION OF THE PROJECT
Research Research was done only in few areas of Kolkata Kolkata hence hence the ap pl icab ic abil ilit it y of the study in different region is restricted.
It was difficult getting time and access to senior level managers due to their busy schedules and prior commitments.
Few questions majority of respondent were not able to answer: 1) If looking for change in service provider 2) Reason for change in service provider 3) Monthly expense for internet usage
If the interviewee misunderstood the question, it may lead wrong data collection
Time was not sufficient to conduct a detailed study.
In some cases where the head office was the main decision maker there actual decision maker could not be contacted.
Research Methodology Research methodology is a way to systematically do the job. It may be understood as a science of studying how research is done scientifically. The most desirable approach with regards to the selection of the research methodology depends on the nature of particular work, time and resources available along with the desire level of accuracy. The Indian communications scenario has transformed into a multiplayer, multi product market with varied market size and segments.
Research Design: This research design is exploratory as we need to find out the scope of IT and internet for SME segment in Kolkata. The method of data collection is qualitative and descriptive in nature i.e. survey and observation based research. The study is done in steps stated below.
1) Understanding the difference between Broadband and Data Products i.e. Lease Line, Internet Lease Line. 2) Understanding the structure of small and medium businesses
Collection of data: Primary data- primary data was collected through questionnaire and personal interview of different companies in different parts of Kolkata. Kolkata. Secondary data - secondary data was was collected collected through through internal internal system system Internet, magazines and newspaper etc.
Sample Design: The sample was drawn by using Judgmental Sampling Techniques, as we need to do fill the questionnaire from someone who deals in internet connection of his organization. Apart from that, Judgmental Sampling Techniques are more economical than any other.
Target Population: Occupation – Professional working in small and medium enterprise like Software companies, Colleges, Apparels retailer, Manufacturers, and other companies. Age – 22-60 years Location – Kolkata Gender- Male/ Female
Sample size: A sample size of 408 was taken. The samples were randomly selected from the population to gather their feedbacks
Sampling Process: Sampling universe: Kolkata‡ Sampling technique: Random sampling Sample size: 408 respondents Research instrument : Personal interview with structured questionnaire questionnaire
DATA ANALYSIS Location of headquarter headquarter Question. Is the headquarter of the company located in Kolkata or outside
Kolkata? Headquarter in Kolkata
Headquarter outside Kolkata
262
145
Ho in kolkata
Ho not in kolkata
36%
64%
In the survey it was found that majority of the small and medium industries have their headquarters’ in Kolkata. Out of the 407 surveys 262 companies have their headquarters in Kolkata and 145 companies have their headquarters outside Kolkata i.e. 64% companies have their headquarter in Kolkata and 36% companies do not have their headquarters in Kolkata.
USE of Internet Question . What do you use internet for messaging , net banking , online sales or
online purchase.
Messaging
Net banking
Online sales
Online purchase
312
303
297
276
320 310 300 290 280 270 260 250 Messaging
Net banking
Online sales
Online purchase
It was found that 312 enterprises use internet for messaging, 303 use internet for net working , 297 use use internet for online sales sales and 276 use it for online online purchases.
Service Provider
Question: Name of internet service provider of the organization?
This question was asked to know which service provider is preferred by the organizations. Airtel
Reliance
BSNL
Tata
More than one
Any other
164
61
131
33
11
8
180 160 140 120 100 Series1
80 60 40 20 0 airtel
reliance
bsnl
tata
more than 1
any other
It was found that airtel is the most preferred service provider followed by bsnl and reliance. Their were 11 companies which use more than one service s ervice provider and 8 used other providers.
Companies using Airtel
This analysis is done to find out the total percentage of companies using airtel. Out of 408 companies were using airtel was 162. Total surveys 408
Airel 162
Chart Title total
airtel
29%
71%
It was found that out of the total survey of 408 companies using airtel is 162 that is 29% of the sample population use Airtel as their service provider.
Companies using BSNL
This analysis is done to find out the total percentage of companies using bsnl Total surveys
bsnl
408
131
total
bsnl
24%
76%
It was found that out of the total survey of 408 companies using bsnl is 131 that is 24% of the sample population use bsnl as their service provider.
Monthly expenses spend on internet.
Question: this question was asked to find out how much does an enterprise spend on internet monthly. >500
500-1000
1000-2000
2000-3000
3000-5000
<5000
5%
9%
11%
27%
21%
18%
35% 30% 25% 20% 15% Series1
10% 5% 0% >500
500-1000
1000-2000
2000-3000
3000-5000
<5000
monthly expense spend on internet
In the survey it was found that 5% of the enterprises spend less than 500 Rs , 9% enterprises spend from Rs 500 to 1000 , 11% of the enterprises spend sp end from Rs 1000- 2000 , 27% spend spend from Rs 2000-3000 , 21% spend from Rs3000-5000 , and 18% of the enterprises spend more than 5000. 5 000.
Satisfaction Level
Question : this question was asked to find out how satisfied are the customers with their current internet service provider . Not satisfied
Somewhat not satisfied
Somewhat satisfied
satisfied
Very much satisfied
0
53
122
131
102
Chart Title Not Satisfied 0%
some what not satisfied 13%
very much satisfied 25%
some what satisfied 30% satisfied 32%
In the survey it was found that 13% people were somewhat not satisfied with the performance of their their internet service provider, provider, 30% of people people were somewhat somewhat satisfied, 32% people were satisfied and 25% people were very much satisfied.
Looking for change provider
Question: this question was asked to find out if enterprises want to change their
internet service provider Yes
No
Maybe
49
270
89
Chart Title yes
no
maybe
12% 22%
66%
It was found that 66% people do not want to change their service provider , 12% enterprise want to change their ISP while 22% are not sure.
Observation
In most of the small and medium enterprise , internet play an important role in day to day activities
A large number of SMEs have not grasped the power of the Internet to build their businesses- or have ventured only to a very limited extent.
In the survey it was found that majority of the small and medium industries have their headquarters in Kolkata. Kolkata. Out of the 408 surveys surveys 262 companies have their headquarters in Kolkata and 145 companies have their headquarters outside Kolkata i.e. 64% companies have their headquarter in Kolkata and 36% companies do not have their headquarters in Kolkata.
When asked for what purpose does small and medium enterprises use internet, it was found that majority of enterprises use internet for messaging, the second most important usage for internet was for networking.
It was found that 312 enterprises use internet for messaging, 303 use internets for networking, 297 use internets for online sales and 276 use it for online purchases.
Quality of service plays an important role in retaining the old customers and making new customers that’s why a large majority of population prefer airtel over any other inter service provider because of the quality of service it provide.
Out of 408 survey done 164 enterprises use airtel as their service provider, 131 enterprises use Bsnl, 61 use Reliance, 33 use Tata, Their were 11
Companies which use more than one service provider and 8 used other providers.
As it is newly launched it has to face tough competition from other service providers which are already well established in the market for example: Airtel, Bsnl, Tata etc.
In the survey it was found that 5% of the enterprises spend less than 500 Rs , 9% enterprises spend from Rs 500 to 1000 , 11% of the enterprises spend from Rs 10001000- 2000 , 27% spend spend from Rs 2000-3000 , 21% spend from Rs 3000-5000 , and 18% of the enterprises spend more than 5000.
It was found that 13% people were somewhat not satisfied with the performance of their internet service provider, 30% of people were somewhat satisfied, 32% people were satisfied and 25% people were very much satisfied.
49 of the small and medium enterprises were looking for changing their internet service provider while 89 enterprises were not sure and 270 were happy with their current ISP. Thus 66% people do not want to change their service provider, 12% enterprise want to change their ISP while 22% are not sure.
After sales services plays an important role in customer satisfaction hence after sales services of a company must be very good.
Conclusion
In last several years, the numbers of internet users have increased by leaps and bounds.
Many of the Small and medium enterprise in India cited local business culture, a significant barrier that is keeping them from engaging more broadly or deeply online. Hence there is a huge untapped market for tikona.
For SME’s to have a competitive advantage and to remain in the market it is important to incorporate Internet marketing, web presence, e-mail, and other forms of e- commerce to drive the marketing and sales campaign.
Tikona was targeting those companies whose head offices are in Kolkata as in most of the cases the head office decide which internet service provider the company will use.
The company has different strategy of marketing, TDN’s strategy is acquiring maximum buildings, so that company can push its product in market .TDN is successful in their strategy because slowly but steady it is capturing more & more market share of wireless broadband.
13% SMEs who were somewhat not satisfied with the performance of their internet service provider and 30% of the SMEs who somewhat satisfied with the performance of their internet service provider could be the prospective customer of the company.
People today don’t have time to wait for anything, so increased internet speed is making them more inclined towards it.
Some customers plan to disconnect their service provider as billing is very high and after sale service is not good. Most preferable speed among the SME clients is 2 Mbps, 1Mbps and 512Kbps so there is more prospects for tikona to provide them better speed against what they are using.
SWOT Analysis Strengths
Weakness
1. Founded Founded by veterans veterans of telecom telecom industry i.e. Mr. Prakash Bajpai. 2. Have latest latest 4th generat generation ion OFDM OFDM and MIMO technology
1. Newly Newly launc launched, hed, have to face face tough tough competition 2. Lower Lower level level of afte afterr sales sales serv service ices. s.
Opportunities
Threats
1. Huge Huge Unt Untap appe ped d Mark Market et 2. Increa Increased sed usage usage of E-gover E-governan nance, ce, E-banking and E-commerce 3. Increasing number of dissatisfied customers of existing broadband providers
1. Cut throat throat competi competitio tion n which which will will make it difficult to penetrate into the market
Recommendations
I came across many small and medium enterprises that weren’t aware about Tikona so there is a need to build brand awareness. It can be done by sponsoring some public event, use of radio, TV & newspapers.
Tikona should introduce celebrity endorsement so that the awareness about tikona can be introduced.
I suggest company to print leaflets and pamphlets in local languages and regional newspapers as well as it will increase the reachability to the customers.
Tikona may also introduce some sales promotion such as cash discounts such promotional activities would further strengthen the market share of the Company.
The customer care center should pay more attention in receiving r eceiving and solving customers complaints.
It was observed that many of the potential customers are already satisfied with their current brand. So the company will have to go an extra mile to convert them into Tikona Digital users. Following measures can be taken: Introductory offer of complimentary 3 GB for a selection of plan more than 25 GB. Give a trial period of 1 week to the prospective customers as it will increase their trust and reliability.
ANNEXURE
Company Info Name Nature of Business HO Location
Website CTO/ CIO
Name Designation Mobile No. E-mail ID Factory
Branch Office
Warehouse
C&F
No. of Units People Strength Use of IT Systems Currently in Use No. of Users (PCs) Name of Package (or inhouse dev.) Satisfaction Level (1 to 5) Future Plan Internet Use
Accounts
Messaging
Finance
Stock Mgmt.
Net Banking
HR
Online Sales
CRM
Online Purchase
Bibliography and References Books:
Kothari C.R. (2008) Research Methodology: Methods and Techniques.
Philip Kotler and Kevin Lane Keller (2005), Marketing Management Twelfth edition.
Newspaper:
The Telegraph
The Economic Times
Magazine:
Business Today
Websites:
www.tikona.in
www.managementstudyguide.com
www.fundoodata.com
