Telecom industry in india survey

TeleIN 2013

Marketing Management

VISVESVARAYA TECHNOLOGICAL UNIVERSITY

BELGUM – 590010

MBA Programme

Bapuji Institute of Engineering & Technology

Lake View Campus

S.S. Layout

Davangere-577004

Subject:

MARKETING MANAGEMENT

“INDIAN TELECOM SECTOR”

Second Semester

Subject Code:12MBA24

SUBMITED TO:

PROF. SATISH RAIKAR

SUBMITTED BY:

(Sec “A”) ASHOK KALAKOND

ASHWINI UMACHAGI

BHUVANESH SHETTY

SOUNDARYA MM

RABIN BHANDARI

TeleIN 2013


Content:

Topic Page Number

Overview 3

Environmental Scanning 3

SWOT analysis 4

Trend and Megatrend 4

Questionnaire 5

Analysis 7

Product gap 12

New product design: TeleIN 12

STP 13

Product differentiation 15

Packaging: TeleIN 16

Pricing 17

Distribution 19

Promotion 20

TeleIN 2013


Telecom industry in India

1. Overview

India is the booming market for telecom sector. It is ranked second in telecom

network provider all around the world. This industry has witnessed significant growth

in subscriber base over the last decade, with better network coverage and competition

induced decline in tariffs. This attracted various foreign companies to invest in this

sector.

2. Environmental scanning

2. a. External environment

Demographic forces: Variation in age group( teen, youth, old )

Economic forces: Economic growth, purchasing power of existing customers and potential customers, per capita income

Environment factors: Radiation hazards, health issue( radiation and excessive use of phones ), e-waste

Technological forces : Availability of different range of handsets( inexpensive to smartphones), online recharge, CDMA and GSM, mobile banking, R & D Political forces : Government regulations and legal issues, tax policy, employment laws, political stability, licensing policies,

Cultural forces: High revenue during festivals( via Phone call, MMS, SMS etc), behavior, tastes and lifestyle patterns of population, go local strategies

2. b. Internal environment Different mobile companies: Government, private & foreign companies with tough competition Suppliers: Major suppliers from foreign country eg. Huawei, ZTE from china , hardware’s etc , and also internally Intermediaries: More dependent on intermediaries on sales and marketing eg. Retailor, wholesalers etc Customers: End user customer, government customer and corporate customer Competitors: Tough competition between different companies in terms of price, advertising, Value added service and better service Publics: Government, Media, Financial, General, Internal, citizen actions

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Public

3. SWOT analysis of Indian Telecom sector

Strength

1. High growth rate

2. Low call rate and data usage rate

3. Unlimited value added service like free

SMS, cricket update, news update,

daily horoscope etc.

4. High return of investment ( ROI )

5. Brand value

Weakness 1. Poor infrastructure, network coverage,

low broadcast frequencies

2. Late adopters of new technology

3. Poor customer service

4. Difficult to enter because of huge

financial requirements (eg. 3G

licensing)

Opportunity 1. Increasing market potential with high

revenue

2. Decrease in the cost of broadcast signals

due to technological advances

3. Skilled and competitive labor force

4. Low cost labor

Threats 1. Threat of entry of new competitors,

FDI

2. Strict government rules and regulations

( eg. License renewal )

3. Declining average revenue per user

(ARPU)

4. Telecommunication policies by TRAI

5. Internet phone call

4 Trend in telecom industry: a. Mobile Number portability

b. Aggressive advertising and low cost SIM card

c. Data card, 3G

5 Megatrend in telecom industry: a. Horizontal integrity ( eg. Airtel TV, Airtel broadband, Bharti Airtel )

b. 3G & 4G licensing, mobile banking

c. Research and development, free roaming services, infrastructure sharing

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6. Questionnaire to the customers :

Questionnaire for the valuable customer of telecommunication industry

Name:

Gender: Male ( ) Female ( )

Age: Below 20 ( ) 21-40 years ( ) 41-60 years ( )

60+years ( )

Occupation: Businessman ( ) Government Employee ( ) Farmer ( )

Student ( ) Others ( )..............

Location: …………………………………….

Marital status: Single ( ) Married ( ) Others ( ) …………………

Monthly Income: less than 10000 per month ( ) 10000-20000 per month ( )

20000-30000 per month ( ) 30000-40000 per month ( )

More than 40000 per month ( )

Service Provider: Airtel ( ) Vodafone ( ) Idea ( )

Docomo ( ) BSNL( ) Reliance ( )

Others ( ) (if yes, specify the service provider)…………

Service type:

Prepaid ( ) Postpaid ( )

How long have you been using this SIM ?

Less than 6 months ( ) 6 months to less than 1 year ( )

1 year to less than 3 years ( )

3 years to less than 5 years ( ) More than 5 years ( )

You have ………. SIM card?

One ( ) Two ( ) Three ( ) More than three ( )

Reason for selection of particular service provider:

Low cost ( ) Better network ( ) Better Value Added Services ( )

Friend/ Family circle ( ) Advertisement Influenced ( ) Retailer Influenced ( )

Others ( ) ……………………………………..

Use mobile for : Only Phone calls ( )

Both for phone calls and internet usage ( )

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Satisfaction from the services: ( 5 for high and 1 for low )

1. Very dissatisfied 2. Dissatisfied 3. Neither satisfied nor dissatisfied

4. Dissatisfied 5. Very Dissatisfied

Call rate: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )

Network: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )

Internet: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )

Internet cost: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )

VAS : 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )

(VAS= Value added services eg. SMS, MMS, cricket update etc.)

How much do you spend on recharge monthly?

Less than Rs. 200 ( ) Rs. 200-500 ( ) Rs. 500-1000 ( ) More than 1000 ( )

Have you ever done online recharge?

Yes ( ) No ( )

Do you know about your mobile service provider? Very well ( ) Little ( ) Not at all interested ( )

Have you ever visited your service provider official website?

Yes frequently ( ) Yes but occasionally ( ) Yes only once ( ) No ( )

If you are 2G internet user, do you want to shift to 3G service?

I am happy with 2G internet service ( ) I am ready to shift to 3G internet service ( )

I am ready to shift only after cost of 3G is reduced ( ) Others( )………………………

If you are the internet user , how much do you spend in internet per month ?

Less than 100 ( ) Rs. 100-200 ( ) More than 200 ( )

Are you satisfied with the customer support provided by your mobile operator?

Very satisfied ( ) Somewhat satisfied ( ) Neutral ( )

Somewhat dissatisfied ( ) Very dissatisfied ( )

How many times did you contact customer support before your problem was resolved?

Once ( ) Twice ( ) Three times ( )

More than three times ( ) Problem is still unresolved ( )

Approximately how much do you spend to wish your friends and family in festivals/special

occasions?

Rs. 0 ( ) Rs. 25 ( ) Rs. 50 ( ) Rs. 100 ( ) Rs. 200 ( ) more than 50 ( )

What do you prefer the most, top up recharge or easy recharge?

Easy recharge ( ) Top up recharge ( )

Are you loyal to your current brand of mobile service provider?

Continue with the same company ( )

Discourage using cell phone altogether ( )

Continue with the same company even if you are dissatisfied ( )

Switch to the other company ( )

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7. Analysis:

Survey was done in Davangere, Karnataka. 100 samples were taken and were given

questionnaire. Findings from the questionnaire are as follows.

Facts:

a. Most of the samples were from the age between 18-30.

b. Most of them were students.

Findings:

a. Most of them are using Vodafone SIM card followed by Airtel and Idea.

b. Customer gives preference to better call rate, better internet service,

reasonable internet cost, and better network coverage.

Even in entire country, Vodafone is the leader mobile service provider

amongst students. Same statistics is reflected from the sample collected in

Davangere.

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c. Age group Vs. Monthly recharge

Customers who are above 20 and below 30 years spend in between Rs.

100 to Rs. 200 in internet recharge, whereas customers below 20 years

spend less than Rs. 100 in internet recharge.

d. Festival recharge and occupation:

Most of the customers spend on an average Rs. 50 during festival time to

call and send SMS.

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e. Student customers are not less loyal to the mobile service provider, they shift

from one service provider to another frequently and possess more than one

SIM cards.

f. Monthly recharge and occupation

Student’s average monthly recharge is in less than Rs.500(Rs. 250 per

month ). Businessmen average monthly recharge is in between Rs. 200 to

Rs. 500.

g. 2G to 3G shift:

Most of the customers are happy with current 2G service. Some of them are ready

to shift to 3G only after cost of 3G is reduced.

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h. Mobile application usage

Age Vs Mobile application usage

i. Facebook is widely used application among all age group.

TeleIN 2013


ii. Customers of age group between 21 to 30 years prefer using WhatsApp,

Youtube, Banking applications and news applications besides facebook

application.

I Satisfaction from customer service:

Most of the people, who have called once to customer care and problem is solved, are

highly satisfied by customer care service whereas the customers who have called

more than three times to the customer care hare dissatisfied from the customer care

service.

i. Outlet visit by the customer

Most of the customers have never visited service provider outlet in the city.

Whenever they get SIM card related issue, they directly call to customer care instead

of going to the outlet.

0

20

40

60

80

Yes, several times Yes, occationally Never

Outlet visit

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j. Website visit by the customers

Most of the customers have not visited their mobile service provider official

website even once.

8. Product gap: • Satisfaction from internet service and internet cost: Most of the customers are not

satisfied from the internet facilities.

• 2G and 3G services gap: Customers complaint about the large gap existing in between

the cost of 2G internet service and 3G internet service.

• Festival offer : There is no any festival offer in any mobile service in the market.

• Internet package ( limited) : Internet package is not widely customized

• Customer care services( poor )

• Web presence( ineffective) : Customers are not attracted towards towards the web

presence of mobile companies.

• Outlets in the city: There are more outlet in the city but less customers prefer to go to

the outlet.

9. New product:

We have come up with the new telecom industry name TeleIN, (meaning Telecommunication

India. Two types of SIM are introduced namely, Student SIM and Business SIM. Various features

are added in both of the SIM cards. The others features are as follows:

• Better network

• Festival offers

• Online recharge offer( Full talk time on every recharge )

• Better customer care experience ( Missed call to customer care, Mobile Helpline )

• Customized ( High & Low end ) mobile + SIM card offer with collective features

• Older the SIM, more the benefit offer

Company Name: TeleIN

Tagline: Be different, feel the difference

Website Visit Yes, frequently

Yes, but occassionally

Yes, only once

No

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10. Segmentation, Targeting and positioning

(STP) a. Segmentation:

Following segmentation areas are identified from the sample

survey. Demographic factor:

Age group ( 18-30 years )

Occupation: Students, Businessman

Income

Family

Geographical factor:

Metro City

Tier I city

Tier II city

Tier III city

Behavioral factor:

Occasion, festivals

Usage (internet, VAS)

Benefits

Loyalty towards the product

b. Targeting: Target Age group

(years)

Offer

Students 18- 30 Internet, SMS, Call rate,

balance transfer

Businessmen 21-40 Postpaid service, VAS,

Better Network,

Internet

Income

group : Less

than 10000

Less than

20000

------------ Call rate

Network connectivity,

Internet service

Product/Market specialization, full market coverage in small cities and metro respectively

Internet user Vs. non-internet user

Rural telephony

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c. Positioning Strategies:

• Better network coverage:

Claim of full network coverage in entire Karnataka

(also in Internet connectivity )

• Customer Service ( Customer intimation ) :

1. Mobile customer care concept: Customer care service will not be located in a

fixed location. They will be mobilized throughout the city.

2. Miscall- call back customer care approach: Customers can give a miscall for

Service provider and according to the priority, customer care representative

will revert back to the customer.

3. Less number of outlet but better customer service experience:

Since customers are less attracted towards the customer care outlet, it is

better to give quality of service from less number of outlet rather than

opening number of outlets in the city.

• Advertising:

1. Website advertising: Let the customer be aware about the service provider

official website. Print media, Television advertising should focus on website

promotion.

2. Online recharge: Customers are encouraged to do online recharge, by

providing special offers such as full talk time in online recharge for first 2

months

3. Go local: Local advertising strategies. Local issues, festivals are taken into

priority and act accordingly.

• Student exclusive SIM: Internet + Call rate + Internet (Social Network)

• Businessmen exclusive: VAS( news, stock info, current trend in the business,

opportunities), Internet( apps )

• Low income ( budget) group : Phone + SIM at reasonable price, both high end and low

end mobile phone

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Differentiation: Service differentiation

• In terms of Product and service

- Customer Service: Prompt and distinctive customer service.

- Network: Better network coverage

• Rural telephony:

Service targeted to the rural unoccupied areas.

• Student brand ambassador concept: One student from each college can be selected as a brand ambassador for the

service provider and various activities can be conducted in a campus.

• Festival recharge voucher : Special tariff for festival day/ special occasion

• Application packages : Customized internet application packages

• Mobile helpline facilities:

Mobile service will be provided in a crowed city so that the customer can

get the solution of their queries from their own place by the group of experts.

• Sponsorship

• CSR

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11. Packaging : TeleIN

MRP:20(inclusive of all taxes)

To activate the

connection, complete and submit the prepaid CAF along

with photograph, proof of identity and proof of address

TeleIN GSM prepaid SIM. Expiry date:5 months from date of

packaging

Manufactured and packaged by:

TeleIN communications Ltd.

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12. Pricing:

a. TeleIN new SIM card price

STUDENT PLAN BUSINESS PLAN

Rs. 30 Rs. 50

Talk time Rs. 10 each alternative months for another 3 months

and 10000 sec TeleIN to TeleIN local free call for each

alternative months.

( Rs.10 + 10,000 sec + Rs. 10 + 10,000 sec +Rs. 10 + 10,000 sec )

Offer validity: 6 months

Talk time Rs. 35

Offer validity: 3 months

Call rate: First minute charge: 60 paisa

After that 30 paisa/min( Local + National )

Call rate: First minute charge:

60 paisa

After that 30 paisa/min

( Local + National)

b. TeleIN SMS offer

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c. TeleIN recharge offer:

d. TeleIN other features:

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13. Distribution: Both direct distribution and indirect distribution strategies is adopted.

Direct distribution: Direct distribution is done through official website www.telein.in

Number of outlets will be opened throughout the country in major areas.

Online recharge and online document submission and verification process is

encourages.

Marketing pull strategies is adopted for direct distribution.

Indirect distribution:

4.5% is given to the distributors whereas 3% is for the retailers. i.e finally distributors

will get 1.5% income from each sales.

http://www.telein.in/

TeleIN 2013


14. Promotion: Bollywood actor Ranbir Kapoor is selected as the brand ambassador of TeleIN.

Advertisement of TeleIN is as follows.

This advertisement was uploaded in Facebook on 16th

June 2013 at 10 AM and as of 17th

June 2013, 10 AM, this advertisement got total 204 likes and 111 shares. ( 315 likes and

shares in total )

(link:

https://www.facebook.com/photo.php?fbid=10201224150355564&set=a.1213028295592

.84617.1525322579&type=1&theater )

(Note: for further details, please contact: [email protected] )

Thank you

https://www.facebook.com/photo.php?fbid=10201224150355564&set=a.1213028295592.84617.1525322579&type=1&theater

https://www.facebook.com/photo.php?fbid=10201224150355564&set=a.1213028295592.84617.1525322579&type=1&theater

mailto:[email protected]

Telecom industry in india survey

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