Scope & Significance of Airtel Money in Kerala
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Scope & Significance of AirtelMoney in Kerala Market
JITHESH J
211062
FMG21-B
2/4/2014 1FORE School of Management
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Introduction Airtel money launched in late February 2012.
It can be considered as a mobile wallet where we canstore money and can be used for utility services
Airtel money recharges are available in the retailer shopsand can do online recharging.
Could not capitalise the even in the absence of any directcompetition from other network providers.
First of this kind was launched by Nokia as Nokia Money,
but failed due to lack of network. No direct competition from other networks as of now.
A project on the significance of Airtel money in Keralamarket.
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Product Features
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Objectives
The primary objective of this project is to findout the scope and significance of Airtel money inKerala market.
The secondary objectives are:
To get feedback from the customers as well asretailers
To study and understand the market conditions
for m-commerce in Kerala market. To understand the reasons for the low
penetration of Airtel money in rural areas.
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Literature Review
Mobile operators and banks are co-operating fora mobile handset based financial service.
In an interview with the CEO of Airtel Manoj
Kohli, according to him next 100 millioncustomers will be from rural and semi-urbanareas. He observes a great future for airtel moneyin these areas.
Airtel in association with Infosys technologieslaunched the mobile wallet service using themobile commerce platform WalletEdge
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Methodology
Research Design: Descriptive research was conducted tocollect data and analysis in this project. A questionnairesurvey was conducted among customers as well as retailers.
Data collection methods:
Primary source: structured questionnaire survey wasconducted to get response from customers and retailers
Secondary source: Secondary data was collected fromarticles, journals and internet, mainly company website.
Sampling:
25 samples of retailers and customers from each of urban,suburban and rural areas were taken for sampling.
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Methodology cont. Rural: Rural areas of Pathanamthitta and Alappuzha
district Semi-urban: Calicut market
Urban: Eranakulam market
Field work:
Field work was done in 3 phases in 3 markets.
During the field work, questionnaire was filled by thecustomers as well as retailers and customer
interaction activity for giving awareness about airtelmoney was done.
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Analysis
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Customer variables
Product awareness
Level of satisfaction with the product
Satisfaction with the network coverage
User friendliness
Offers in Airtel money
Retailer variables
Product awareness
Level of satisfaction with the margin
User friendliness
Distribution efficiency
Other benefits and support
0.4
0.2
0.1
0.050.15
Weightage given for customer
variablesProduct awareness
Level of satisfaction with the
product
Level of satisfaction with the
network coverage
User friendliness
Offers throgh airtel money
0.2
0.5
0.1
0.05 0.15
Weightage given for Retailer
VariablesProduct awareness
Level of satisfaction with
the margin
Distribution efficiency
User friendliness
Other benefits and support
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Analysis of retailer variables
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7
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0
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10
3
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0
2
5
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0
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4
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1 2 3 4 5
No
.ofrespondents
Level of awareness
Rural
Semi-urban
Urban
Rate of awareness Rural Semi-urban Urban
Total respondents 25 25 25
Weighted average score 2.72 3.84 4.08
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Analysis of retailer variables cont.
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2 1
15
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00
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1 2 3 4 5
No.
ofrespondents
Level of satisfaction with the margin
Rural
Semi-urban
Urban
Rate of satisfaction with the
margin
Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 2.96 2.12 1.64
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Analysis of retailer variables cont.
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1
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0
3
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1
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1 2 3 4 5
No.
ofrespondents
Distribution efficiency
Rural
Semi-urban
Urban
Distribution efficiency Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 3.2 3.68 4.04
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Analysis of retailer variables cont.
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1
2
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2 2
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1 2 3 4 5
No.
ofrespondents
Usability
Rural
Semi-urban
Urban
Usability Rural Semi-urban Urban
Total no. Of respondents 25 25 25
Weighted average score 2.52 3.96 4.2
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Analysis of retailer variables cont.
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15
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1 2 3 4 5
No
ofrespondents
Other benefits and support
Rural
Semi-urban
Urban
Other benefits and support Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 2.96 3.36 2.92
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Analysis of customer variables
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1
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1 2 3 4 5
No.
ofrespondents
Level of awareness
Rural
Semi-urban
Urban
Rate of awareness Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 2.68 3.88 4.2
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Analysis of customer variables cont.
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1 2 3 4 5
No.
ofrespondents
Level of satisfaction with the product
Rural
Semi-urban
Urban
Level of satisfaction Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 2.96 2.84 2.24
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Analysis of customer variables cont.
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1 2 3 4 5
No.
ofrespondents
Level of satisfaction with the network coverage
Rural
Semi-urban
Urban
Network coverage Rural Semi-urba Urban
Total no. of respondents 25 25 25
Weighted average score 2.50 3.68 4.12
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Analysis of customer variables cont.
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1 2 3 4 5
No.
ofrespondents
Level of satisfaction with the user interface
Rural
Semi-urban
Urban
Usability Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 3.08 3.56 3.84
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Analysis of customer variables cont.
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0
2
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1 2 3 4 5
No.
ofrespondents
Level of satisfaction with the offers through airtel money
Rural
Semi-urban
Urban
Level of satisfaction with
the offers through airtel
money
Rural Semi-urban Urban
Total no. of respondents 25 25 25
Weighted average score 3.72 3.28 2.88
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Calculations
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For retailers:
1) Rural region:Percentage score
= (0.20*2.72)+(0.5*2.96)+(0.1*3.2)+(0.05*2.52)+(0.15*2.96)
= 2.914
Converting this into percentage score = 58.28%
2) Suburban Region:Percentage score
= (0.20*3.84)+(0.5*2.12)+(0.1*3.68)+(0.05*3.96)+(0.15*3.36)
= 2.98
Converting this into percentage score = 57.96%
3) Urban region:Percentage score
= (0.20*4.08)+(0.5*1.64)+(0.1*4.04)+(0.05*4.2)+(0.15*2.92)
= 2.688
Converting this into percentage score = 53.76%
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Calculations cont.
For customers:1) Rural region:
Percentage score
= (0.4*2.68)+(0.2*2.96)+(0.1*2.5)+(0.15*3.08)+(0.15*3.72)
= 2.934
Converting this into percentage score = 59.34%
2) Suburban Region:Percentage score
= (0.4*3.88)+(0.2*2.84)+(0.1*3.68)+(0.15*3.56)+(0.15*3.28)
= 3.514
Converting this into percentage score = 70.28%
3) Urban region:Percentage score
= (0.4*4.2)+(0.2*2.24)+(0.1*4.12)+(0.15*3.84)+(0.15*2.88)
= 3.548
Converting this into percentage score = 70.96%
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RESULTS & DISCUSSION
The percentage scores signifies the scope of Airtel money in
Kerala market.
Score of retailers in all the regions are less than 60%
Score of customers in rural area is slightly less than 60% while inboth urban and suburban region, its slightly above 70%
Suggestions and feedbacks from both retailers and customers
were taken for improvement of the product.
Lot of scope for improvement in rural areas as customersreacted very positively to survey taken .
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CONCLUSIONS
Airtel money is a third generation
product and people like to do mobilecommerce without the use of internet.
The product was launched withoutproper market research.
Lack of proper awareness campaignsamong customers as well as retailers.
Retailers are largely dissatisfied withthe way, the product is being carried
out in all regions.
Retailers want better margin if they areexpected to promote Airtel money.
Customers ready to switch from thetraditional method to Airtel money, if itoffers better options than the existing
ones.
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Recommendations
To advertise it more effectively through TV ads, radio ads for rural customers and
increase the visibility by putting flex boards and in retail shops.
Increase the margin for retailers by about 1% at least from 0.5%.
Cut the transaction cost of banking through airtel money to 0.5% from 1%.
Do some promotional activities for airtel money that will encourage retailers topromote airtel money.
Do some promotional activities for airtel money that will encourage retailers topromote airtel money.
Give on the spot commission to retailers and make them clear about the commissionstructure.
Do some promotional activities based on some shopping malls and make tie ups withthe retail shops in those malls, for airtel money shopping.
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Recommendations cont.
Improve the usability of airtel money so that everyone can use it.
Improve the network coverage, especially in rural areas.
Make it available, the options available in airtel money atleast in urban areas, ifoffered.
Make tie ups with PVR and other film distribution networks to supply their movietickets through airtel money. In rural areas, in most of the theatres, online
booking of tickets is not available; airtel money can take advantage of thisopportunity.
Give offers for shopping through airtel money so that, customers who are lookingfor discounts will prefer switching to airtel if not, and start using airtel money.
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Recommendations cont.Give free credits to people who are doing airtel money shopping on the basis of the amount ofmoney spent on airtel money recharge.
Settle the claims of retailers in time, which will make the relationships with the retailersstronger.
Start airtel money counters in major shopping centres throughout and do heavy promotionbefore the competition catches on from Vodafone and Idea Cellular ltd.
Make the options available in local languages of all areas so that those who cant follow Englishalso can use it conveniently.
Take regular feedbacks from retailers, customers, FSEs and airtel money promoters forcontinuous improvement.
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LIMITATIONS
The major limitation was the
time. The area of research wasthe entire Kerala market and
research was conducted one ofeach rural, suburban and urban
area because of the time
limitation.
The second limitation was thecredibility of the data given by
the retailers.
Inherent limitation of the
secondary data; this study istotally based on the current
market situation and using littleprimary data.
The sample size taken was only25 from each region because of
the time limitation
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REFERENCES 2012, T. E. (2012). Banks go mobile. Business Asia.
Bharti Airtel Limited. (31 Jul 2012). Marketline.
Telecom to Lifestyle. (2012). bt current.
http://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=
Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyaccessed on April 12th
http://trai.gov.in/accessed on may 20th
http://www.businessreviewindia.in/technology/softwar
e/-telecom-industry--indias-success-storyaccessed onmay 23rd
http://en.wikipedia.org/wiki/Bharti_Airtelaccessed onApril 11
2/4/2014 FORE School of Management 27
http://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://trai.gov.in/http://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://trai.gov.in/http://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Money -
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TH NK YOU2/4/2014 FORE School of Management 28