SEMINAR REPORT

AREA OF STUDY:
"To study the factors that enhance a dealer to gain a competitive advantage over other dealers in cellular industry"..

SUBMITTED BY Jaspreet Kaur Bisla MBA 2nd SEM Roll no: 2012.MGB.1084

SUNMITTED TO: DR.RAGHBIR SINGH

ACKNOWLEDGEMENT

I sincerely thank Dr.RAGHBIR SINGH for giving me an opportunity to take up this seminar. I thank him for being a constant source of inspiration and encouragement. I would like to express my gratitude to him for providing me support to conduct this research. Without his continuous help, suggestions and encouragement it would not have been possible for me to complete the project effectively. I would also express my deep gratitude to my family, friends without whose cooperation this project would not have been possible.

CONTENTS

Serial no.

Topics

Page no.

1. 2. 3. 4.

Acknowledgement Executive summary Competitive Advantage Resources & Abilities

2 4 7 9

5. 6. 7. 8. 9.

Capability of Competitors Research Design Sample Design Profile of Industry Profile of Organizations Profile of Sample Unit Introduction to Analysis Data Analysis & Tools Summary of Findings Recommendations Questionnaire Bibliography

12 13 16 19 21 29 30 31 59 61 64 69

10.
11.

12. 13. 14.

15. 16.

Executive Summary
This dissertation report deals with the study on the factors that enhance a dealer to gain a competitive advantage over other dealers in cellular industry. The study was carried out within the Amritsar city amongst a sample size of 30 dealers appointed as franchisees ha the four cellular service providers i.e., Airtel, Spice, Hutch, BSNL. The sample has been chosen on convenience basis. The report has taken into consideration the contribution of attributes such as price, quality, catchy advertising, public relation, reliability and ready availability of the product concerned at a favorable product price, good distribution network at the concerned dealers. The major findings of the report are that the general conversion rate of cold calls into productive call ranges from 50% to 60% and the conversion rate of a direct enquiry received by the company which is passed on to the dealer ranges between 60% to 70%. Customers are taking more time to place an order due to the competition in market and the confusion 5

prevailing in the minds of the customers either to opt for a GSM based service or CDMA based operators of which pricing being the single largest factor. This report gave me an insight into the market dynamics of the cellular industry. Especially the players operating in the market and the nature of competition prevailing in the market. The analysis of market opportunities for cellular industry is of great importance where marketing and distribution channel comes into the forefront. Marketing is a comprehensive term; it concludes a group of basic activities in order to create and promote customers demand and to direct the flow of services from the original producer to the final consumer in the process of distribution In the past, more emphasis was laid on production concept and easy availability of goods at cheaper prices and no efforts were made to look into the needs and wants of the consumer, this was where the use of Marketing concepts appeared which was then used as an instrument to look into every matter beginning from the existing market to the satisfaction of the consumers. Now in buyers market, marketing is such an important and basic concept that now the companies have it as a separate functional departments all together, where the whole business is seen from the point of view of its final results because today market consists of all potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. Marketing Management is to analyze the long run opportunities in the market for improving its performance and also to get more new opportunities. A marketing opportunity is an area of need in which a company can perform profitability. Opportunities can be tested and classified according to their attractiveness and success probability. The company's success probability depends on where its business strength lies as well as its key success requirements for the target market so as to exceed those of its competitors. The

best performing company will be the one that can generate greater value and sustain it overtime.

With reference to the Indian population, rising literacy levels and knowledge the deserving consumer has been found to prefer only the best available product in the market and also that is wallet friendly. With liberalization the Indian Economy has thrown to foreign investors since 1991 The market and the marketing concepts in India today are going through a great change and competition. With the opening up of the Indian Economy to the western and multinational companies, it has led to rapid westernization of the Indian Consumer and due to this many competitors are offering the same product and service at competitive prices. The market and the marketing concepts in India today are going through a great change and competition. With the opening up of the Indian Economy to the western and multinational companies, it has led to rapid westernization of the Indian Consumer and due to this many competitors are offering the same product and service at competitive prices. The consumers in recent days have become more conscious about their needs and wants and they expect the very best product for their hard earned money. The companies thus must enter into the consumer market with strategic marketing to win the hearts and minds of the consumer. In India with the rise in purchasing power of people at large, they have a tendency to spend money on luxurious items, which are good in quality and are reasonably priced. Today a large number of companies are going into the number game where they are concentrating on the volume of sales keeping in mind the price, quality, profits and the taste and satisfaction of the consumer.

People satisfy their needs and wants with product. Product is anything that can be offered to a market for attention, acquisition, used as consumption that might satisfy needs and wants. Smart marketers try to build up long term relationship with valued customers, distributed, dealers and suppliers. In this project we therefore take a look at the cellular industry which has become more competitive in the past 2 years because of more purchasing power of the people, emergence of a large middle and upper middle class people and also most importantly because of the recent changes in the telecom policies and the recent recommendations of Telecom Regulatory Authority of India which has made cellular connections feasible even to the middle class customers.

COMPETITIVE ADVANTAGE EFFICIENCY A Company is a device for transforming inputs into outputs. Inputs are basic factors of production such as labour, land, capital, management, technological know-how and so on. Outputs are the goods and services that a company produces. Efficiency is measured by the cost of inputs required to produce a given output. The more efficient a company, the lower is the cost of inputs required to produce the given output. Thus efficiency helps a company attain a low-cost competitive advantage. One of the keys for achieving high efficiency is to utilize inputs in the most productive way possible. The most important component of efficiency for most companies is employee productivity, which is usually measured by output per employee. Holding all else constant, the company with the highest employee productivity in an industry will typically have the lowest cost of production. In other words that company will have a cost-based competitive advantage.

QUALITY Quality products are goods and services that are reliable in the sense that they do the job they were designed for and do it well. The impact of high product quality on competitive advantage is two fold: Providing high quality products creates a brand name reputation for a companys product. In turn, this enhanced reputation allows a company to charge a higher price for its products. Greater efficiency and hence lower unit cost brought about by higher product quality. The major effect here is through the impact of quality on productivity. Higher product quality means that less employee time is wasted making defective products or providing substandard services and less time has to be spent fixing mistakes. This translates into higher employee productivity and lower unit costs. Thus high product quality not only lets a company charge higher prices for its products, it also lowers cost. The importance of quality in building competitive advantage has increased dramatically in recent years. Indeed, so crucial is the emphasis placed on quality by many companies that achieving high product quality could no longer be viewed as just one way of gaining a competitive advantage. In many industries it has become an absolute imperative for survival. INNOVATION: Innovation can be defined as anything new or novel about the way a company operates or the products it produces. Thus innovation includes advances in the kinds of products, production processes, management systems, organizational structures and strategies developed by a company Innovation is perhaps the single most important building block of competitive advantage. Competition can be viewed as a process driven by innovation. Although not all innovation succeeds, those that do can be a major source of competitive advantage. The reason is that by definition, successful innovation gives a company something unique something that its

competitors lack (until they imitate the innovation). This uniqueness may allow a company to differentiate itself from its rivals and charge a premium price for its product. Alternatively it may allow a company to reduce its unit costs far below those of competitors CUSTOMER RESPONSIVENESS: To achieve customer responsiveness, a company must give its customers exactly what they want when they want it. Consequently, a firm must do everything possible to identify customer needs and to satisfy them. Among other things, achieving superior customer responsiveness involves giving customers value for money. In addition satisfying customer needs may require the development of new products with features that existing products lack. Another factor that stands out in any discussion of customer responsiveness is the need to customize goods & services to the unique demand of the customers. Besides quality, customization, & response time, other sources of enhanced customer responsiveness are superior design, superior service & superior after sales service & support. All these factors enhance customer responsiveness & allow a Company to differentiate itself from its less responsive competitors. In turn, differentiation enables a Company to build brand loyalty and to charge a premium price for its products.

RESOURCES AND CAPABILITIES: The distinctive competencies of an organization arise from two complementary sources: Resources Capabilities

Resources refer to the financial, physical, human, technological and organizational resources of the Company. These can be divided into tangible resources (land, building, plant and equipment) and intangible resources (brand names, reputation, patents and technological or marketing know-how). To give rise to distinctive competency the Companys resources must be both unique and valuable. A unique resource is one that no other 10

Company has. A resource is valuable if it is in some way helps create strong demand for the Companys product. Capabilities refer to a Companys skills at co-coordinating its resources and putting them to productive use. These skills reside in an organizations routine, that is, in the way a Company makes decisions and manages its internal processes in order to achieve organizational objectives. These specify how and where decisions are made within a Company, the kind of behaviors the Company rewards, and the Companys cultural norms and values. It is important to keep in mind that capabilities are, by definition, intangible. They reside not so much in individuals as in the way individuals interact, cooperate, and make decisions within the context of an organization. A Company may have unique and valuable resources, but unless it has the capabilities to use those resources effectively it may not be able to create or sustain distinctive competency. It is important to recognize that a Company may not need unique and valuable resources to establish a distinctive competency so long as it has capabilities that no competitor possesses. STRATEGY AND COMPETITIVE ADVANTAGE: A company needs to pursue strategies that build on its existing resources and capabilities (its competencies), as well as strategies that build additional resources and capabilities and thus enhance the companys long-run competitive position. BARRIERS TO IMITATION Barriers to imitation are factors that make it difficult for a competitor to copy a companys distinctive competencies. Since distinctive competencies allow companies to earn superior profits, competitors want to imitate them. However, the greater the barriers to such imitation, the more sustainable are a companys competitive advantage. It is important to note at the outset that a competitor can imitate ultimately almost any distinctive competency. The critical issue time. The longer it takes competitors to imitate a distinctive competency,

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the greater the opportunity that the company has to build a strong marker position and reputation with consumers, which is then difficult for competitors to attack. Moreover, the longer it takes to achieve an imitation, the greater is the opportunity for the imitated company to improve on its competency, or build other competencies, thereby staying one step ahead of the competition.

Imitating Resources The easiest distinctive competencies for prospective rivals to imitate tend to be those based on possession of unique and valuable tangible resources, such as buildings, plant and equipment. Such resources are visible to competitors and can often be purchased on the open market.

Intangible resources can be more difficult to imitate. This is particularly true of brand names. Brand names are important because they symbolize a companys reputation. Customers will often display a preference for the products of such companies because the brand name is an important guarantee of high quality. Although competitors might like to imitate well-established brand names, the law prohibits them from doing so. Marketing and technological know-how are also important intangible resources. Unlike brand names, however, company-specific marketing and technological know-how can be relatively easy to imitate. In the case of marketing may facilitate the general dissemination of know-how. More generally, successful marketing strategies are relatively easy to imitate because they are so visible to competitors. With regard to technological know-how, in theory, the patent system should make technological know-how relatively immune to imitation. Patents give the inventor of a new product a seventeen-year exclusive production agreement. In general, distinctive competencies based on technological know-how can be relatively short-lived. Imitating capabilities: Imitating a companys capabilities tends to be more difficult than imitating its tangible and intangible resources, chiefly because a companys capabilities are often invisible to outsiders. Since capabilities are based on the way in which decisions are

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made and processes managed deep within a company, by definition, it is hard for outsiders to discern the nature of a companys internal operations. The visible nature of capabilities would not be enough to halt imitation. However, a companys capabilities rarely reside in a single individual. Rather, they are the product of how numerous individuals interact within a unique organizational setting. It is possible that no one individual within a company may be familiar with totality of a companys internal operations routines and procedures.

To summarize, since resources are easier to imitate than capabilities, a distinctive competency based on a companys unique capabilities is probably more durable than one based on its resources. It is likely to form the foundation for a long-run competitive advantage.

CAPABILITY OF COMPETITORS By strategic commitment, it means a companys commitment to a particular way of doing business that is, to developing a particular set of resources and capabilities. When competitors already have long-established commitments to a particular way of do9ing business, they may be slow to imitate an innovating companys competitive advantage. Its competitive advantage will thus be relatively durable.

INDUSTRY DYNAMISM: A dynamic industry environment is one that is changing rapidly. What needs noting is that the most dynamic industries tend to be those with a very high rate of product innovation. In dynamic industries, the rapid rate of innovation means that product life cycles are

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shortening and that competitive advantage can be very transitory. A company that has a competitive advantage may find its market position outflanked by a rivals innovation.

RESEARCH DESIGN 2.1 STATEMENT OF THE PROBLEM: The main purpose of this study is to analyze as to why some dealers in the cellular industry are not doing as well compared to other dealers who are performing extremely well when all of them are selling similar products and services at similar prices and similar market conditions with very few or no differentiation of the product or service at all This problem is analyzed by gaining some very intricate information through various dealers of various operators like Airtel, Spice, Hutch and BSNL 2.2 SCOPE OF THE STUDY: The study is exclusively conducted on the cellular industry operating on the GSM platform. To analyze the operations of its various dealers and to get an insight to the various factors that help a dealer gain a competitive edge over that of its rivals. The study was carried for the dealers located with in Bangalore City only, for a period of 3 weeks. As both personal and organizational customers use the product, their needs, preference, usage, habits, post purchase action vary widely which in turn gave a wide and large scope for analysis. 2.3 NEED FOR THE STUDY: 14

The need of the study is to find out the existing market opportunities in today's highly competitive consumer market for cellular services. This study apart from market opportunities also includes a study on the profile of the various organization, where topics such as origin of the organizations, future prospects of the organizations, functional departments of the organizations, capability and organizations structure is covered

2.4 OBJECTIVES OF THE STUDY: The main objectives of the study cannot be minimized to one or two points because one point leaves one with another question to be answered. The main objectives are as listed as follows: 1. The study helps to appreciate the factors leading to customer satisfaction. 2. The study helps to understand how to gain a competitive edge over other players in the market. 3. To understand various factors that play a major role in marketing GSM based cellular services 4. To find out the effectiveness of customer support provided by the organizations. 5. To find out the dealers satisfaction with their parent company. 2.5 REVIEW OF LITERATURE: Available literature relating to the problem must be reviewed before definitions of the research problem are given. A detailed review is necessary of existing and available literature that has already been published in some form or other. This is done to find out what data and other material if any is available for operational purposes. Any published articles that relate to the topic of study also give an accurate direction to the study. It can also help in overcoming analytical

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shortcomings. The researcher has taken material from the following material published and the concepts defined are as per the material that was available. Company manuals and other Annual Reports, Pamphlets and Brochures Information from websites www.airtelworld.com www.spicetele.com www.hutch.co.in www.bsnl.co.in 2.6 RESEARCH DESIGN: A central part of the research design is to develop an effective research strategy of the design. A research design is a logical and systematic plan prepared for directing a research study. It specifies the objectives of the study, the methodology of the study, techniques to be adapted for achieving the objectives. It constituted the blue print for the collection measurement and analysis of data. Research designs can be classified in various ways. EXPLORATORY DESIGNS: Exploratory designs are concerned with identifying the real nature of research problems and perhaps of formulating relevant hypothesis for later test. Exploratory design is necessary as it gives valuable insight, results in a firm grape of the essential character and purpose of specific research surveys and encourages the development of creative alternative research strategies. DESCRIPTIVE STUDIES Descriptive studies start from substantial prior knowledge of marketing variables for this type of research to be productive, questions should be designed to secure specific kinds of information related, perhaps, to product performance, market share, competitive strategies distribution etc.

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2.7 SAMPLE DESIGN: A sample design is a total structure and plan of the sampling exercise. It will have details of the sampling techniques used, the size of the sample, the type of the sample and any other relevant details. 2.7.2 SAMPLE SIZE: The sample size chosen was 30 main dealers of the four cellular service providers i.e., Airtel, Spice, Hutch, BSNL within Bangalore city.

2.7.3 SAMPLING TECHNIQUE ADOPTED

Convenience sampling: In this method of sampling selection, the sampler chooses the sampling units on the basis of "convenience" or "accessibility". This type of sampling is most recommended with exploratory research designs when all that is needed is an approximation of the desired phenomena, and there is the constraint of obtaining this approximate quickly and inexpensively. 2.8 SOURCES OF DATA: Data collection is the most important step in the research work. The researcher has to look for source of data, which can be collected and analyzed to achieve results as per the set of objectives. In this study primary as well as secondary data is being used.

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Primary data is mainly collected through the use of Questionnaires and also through personal interviews. Secondary data has been procured from reference books and information available on the website and other studies conducted on related topics. All these have been used to provide a valuable and vital input to the study and also give authenticity to the findings. 2.8.1 SECONDARY METHOD Secondary data is a data, which is available from the post studies and records. The secondary data is collected from the respective service providers , from their manuals, website of the same organizations, from magazines and journals. It is more advantageous in that it is cheaper and more readily available than primary data. But it has certain disadvantages that it may be outdated and not collected for the purpose at hand. Data Collection Instruments: For collecting good information, the researcher should use effective data collection instruments. The data collection instrument used in the study is the questionnaire. The questionnaires are distributed directly to the respondents by the researcher. As far as possible the researcher has tried to see that the answers were given immediately on order to minimize the influence of any third party opinions. The questions asked are both open-ended as well closed questions. 2.8.2 PRIMARY DATA: The research work is mainly dependent on primary data. It involves data, which has been directly obtained form the respondents through the Questionnaires as well as opinions expressed by the respondents. This is up to date data as the analysis is done immediately after obtaining the data through the two methods. Two methods used for collecting primary data are:

Personal interview method

It has been helpful in that the researcher has been able to clarify any doubts and misunderstanding that the respondent may have had. However there has also been a

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serious drawback in that there is the likelihood of bias in answers from the obtrusion of the interviewer. Survey method In this case self-administered responses of the normal question and answer method were handed out to respondents where they met. Clear instructions were given along with questionnaires. 2.9 FIELD WORK: The study involved a field work where the respondents are contacted individually and are persuaded to answer questions through questionnaire and also a few direct questions, which lasted from any where between 10 minutes to more than one hour depending upon the person and the situation. As far as possible the respondents are encouraged to fill up the questionnaire in front of the researcher so that any third party influence could be avoided. The respondents are directly contacted in their offices with prior appointment. The fieldwork helped immensely in giving accurate information and first hand views regarding the opinions of the respondents. Overall the fieldwork provided critical and vital information such as knowledge, intentions, activities, and opinions and so forth of the respondents regarding the problem under investigation.

2.11 LIMITATIONS OF THE STUDY: The study for the research work is conducted in Amritsar City and there are certain limitations in carrying on the study. Some of the limitations are as follows. 1. The survey is limited to areas in and around Amritsar City only. 2. In view of parity of time and resources, the study is limited to in and around Amritsar city only.

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3.1 PROFILE OF THE INDUSTRY: History of Cellular Telephony in India

Cellular Telephony The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications.

The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Groupe Speciale Mobile as it was then called, soon came to represent the Global System for Mobile Communications

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as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their services. Cellular Industry in India The Government of India recognizes that the provision of a world-class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry. New Telecom Policy 1999 Telecommunications is now universally recognized as one of the prime movers of the modern economy; hence it's vital importance for a developing country like India. The availability of adequate infrastructure facilities is critical for acceleration of the economic development of any country. In fact international studies have established that for every 1% increase in tele-density, there is a 3% increase in the growth of GDP. Accordingly, the Government of India has accorded the highest priority to investment and development of the telecommunications sector. Telecom requires very heavy investment and it was not possible for the Indian Government to organize public funding of this sector on such a massive scale. In fact the

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national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the telecom targets of the eighth five-year plan of the Government of India (1992-97). It was for this reason to bridge the resource gap between government funding and the total projected funds requirement and to provide the additional resources to achieve the nation's telecom targets that the telecommunications sector was liberalized in 1992 and the Government invited private sector participation in telecommunications. Cellular mobile services were one of the first areas to be opened up to private competition. The whole country was divided into the 4 metropolitan cities of and 19 telecom circles, which were roughly analogous with the States of India. Cellular Licenses were awarded to the private sector - first in the metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995. The first metro cellular network started operating in August 1995 in Calcutta. 3.2 PROFILE OF THE ORAGANISATIONS:

Spice Communications Limited Address: Hemkunt Towers, 98, Nehru Place, New Delhi-110019 INDIA Service Area: Brand Name: Website: www.spicetele.com Spice Communications Limited is presently operating Cellular Phone Services in the states of Punjab and Karnataka. Promoters Spice Communications is a 51:49 joint venture between Spicecorp (India)- the flagship company of Dr. B.K. Modi group that first introduced India to mobile phone services Karnataka, Punjab Spice

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and has interests in the field of telecommunications, office automation and information technology and DISTACOM (Hong Kong)-a company with over 20 years of experience in mobile communication which was responsible for bringing mobile telephony to Hong Kong along with Hutchison Telecom. Foreign Partners The Foreign partners for Spice Communications Karnataka are Distyacom, AIG and Prudential. Infrastructure Vendors The infrastructure vendors are Siemens and Motorola. Launch of Service Launched over four years ago under the memorable brand name of "Spice", the Company offers cellular services in Punjab and Karnataka. Spice Karnataka launched its services in April 1997. Pre-paid Service The pre-paid service in Karnataka operates under the brand name "Simple"

Bharti Mobile Limited Address: 47, Millers Tank Bund Road Bangalore 560052 INDIA Phone: Fax: Contact: Service Area: Brand Name: + 91 80 228 2211 + 91 80 228 2200 Mr. Jagdish Kini AP, Karnataka, Punjab AirTel

Website: www.airtelworld.com Bharti Mobile Limited offers services in Andhra Pradesh, Karnataka and Punjab under the brand name "Airtel" 23

Promoters: Bharti Mobile Limited, a joint venture of Bharti Enterprises and Telia. Technology Partners: AirTel comes to you from Bharti Mobile Ltd. A consortium of giants in the telecommunication business - British Telecom UK, Tecc3300 Italy, and Bharti Enterprises India.

The Bharti Enterprises, established in 1976, is today a multifaceted organization and a leading group involved in the manufacturing and the services sector. its key focus is on the marketing and operations of a comprehensive range of telecom services in addition to the Healthcare sector. Launch of Services: Karnataka: AirTel launched it's services in Karnataka on May 13,2000. The services in Punjab started in February 2002. AirTel is brought by Bharti Enterprises, India's leading telecom conglomerate, through its company, Bharti Mobile Limited. Bharti Enterprises has revolutionized Indian telecommunications with its world-class products and services. Pre-paid Card: The pre-paid card "Magic" is a nation wide brand. Management Structure The group has been structured to create functional and operational specialization with a linear vision of business lines and functional areas. The Company is headed by Chairman and Group Managing Director- Sunil Bharti Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and Rajan Bharti Mittal. The Company also has two Presidents- President Mobile Services and President Infotel Services, this responsibility includes Fixed-line, Long Distance and

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Broadband Services. The Presidents report to the Group Chairman and Managing Director. The head of units and SBUs report to the respective business's President. An apex team of Corporate Directors has been constituted. The corporate directors have supervisory and strategic responsibilities for functional areas across business lines. The directors oversee functional areas including Business Development, Human Resources, Marketing, Corporate Communication, IT & Technology, Finance, Legal, Corporate Affairs, Corporate Strategy & Planning and Supervisory Director cum Chief Mentor - mobility.

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Bharat Sanchar Nigam Limited

BSNL's mobile service has been launched in Karnataka by Chief Minister Sri S M Krishna on 21st October. Cellone is the brand name for BSNL's mobile service and Excel is the Brand name for pre-paid mobile card offered by us. Excellent Cellular Communication by way of reliable services using our backbone network is our goal to achieve the number 1 position in Cellular Communication. Our aim is to build the Nation by way of providing a reliable communication network across the country so as to ensure an overall Growth of India. "Service is our Motto" Salient Features Offered 1. Prepaid services 2. Postpaid services 3. Supplementary services Call waiting or Call Alert. This facility alerts you to an incoming call while you are already engaged in a conversation. You may either discontinue the first call and take the waiting one or put the first call on hold or take the second one. Call Hold 26

An outgoing call presently engaged can be put-on hold status while another fresh call can be initiated .You may switch over between the two calls alternatively. Call Diversion or Call Forwarding: You may divert all the incoming calls to your mobile number to another mobile number or a PSTN number. This is called call Diversion un-conditionally. As an alternate you may divert all incoming calls to your Voice Mail Box by programming the destination as 17000. Also call diversion can be achieved when the number is either busy or noanswer or when you are out of reach. Calling Line Identification The identification of the calling number (CLIP) is presented on your telephone to enable you to recall at a later time, besides knowing your Caller Calling Line Identification Restriction (CLIR) If you do not want your number to be presented to the called party always, then the same can be activated upon request. Barring Outgoing Calls All out going calls or outgoing International Calls can be barred at the request. Besides if inter circle calls (Outside Karnataka) need to be barred, this also can be done at your request. (STD/ISD- facility) All these services need to be activated by the Service Providers. Besides selective activation at the Customer, Mobile Handset is also needed to support these services. Unified Messaging System (UMS) The objective of UMS is to allow subscribers to send, retrieve & manage messages in a uniform way, regardless of whether the message is a Voice Mail, a Fax Mail or an email. Each UMS -subscriber is assigned a unified message mail box number, which is usually the mobile number itself and e-mail address.

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UMS mailbox can be accessed either by invoking call-forwarding feature or by directly dialing Unified Message Mail Box Number. It shall also be accessed from webbrowsers, a standard e-mail clients and WAP- terminals. Features: 1. Call answering 2. FAX answering 3. Message Deposit Services 4. Message Retrieval Services 5. Message Delivery Services 6. Call Return 7. Message Management (New/Listened Message, Urgent delivery, Replay etc.) 8. Mail Box Management (Tutorial, system generated or customized greeting, password, user language etc) E-mail: Your e-mail account will be <mobile number>@bsnlums.com. From any account like Yahoo, Hotmail, rediffmail etc you can receive mail to above account from any Internet connected Desktop Besides through a WAP enabled phone you can log-in to www.bsnlums.com and compose mail and send to any e-mail destination address including UMS e-mail address. Also one can view body , Header of e-mail using WAP phone on e-mail Inbox. By dialing your voice mailbox, you can hear the e-mail to speech conversion of the e-mail messages on your e-mail account. A salient feature is that all mails coming to other accounts can be seen from one account only i.e. bsnlums.com Short Message Services (SMS) A service widely offered by us at an competitive rate. WAP services (Wireless application protocol) Free roaming within Karnataka & National roaming. Call Conferencing.m. Multi-Mobile number.n. Regional / National roaming.o. 28

Itemized Billing / Detailed billing. Mobile Hunting.

Supplementary services activated for Prepaid Excel cards. 1. CLIP (Calling Line Identification Presentation) 2. Call waiting 3. Call Hold 4. Call forwarding -Unconditional / Busy / No reply / Out of reach 5. Multiparty Conferencing 6. STD & ISD 7. Unlimited SMS & E-Mail 8. Voice Mail 9. Call barring (Out going & In coming) Supplementary services activated upon request by Subscriber. 1. Call waiting 2. Call forward - Unconditional / Busy / No reply/Out of reach 3. CLIP 4. CLIR ( Calling line identification restriction ) on request. 5. Call barring ( Outgoing & incoming ) 6. Detailed billing-on request. 7. STD / ISD 8. Call Hold 9. Voice Mail 10. UMS(Unified messaging system) comprising voicemail, email & FAX mail.

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3.3 PROFILE OF THE SAMPLE UNIT: The research is an effort to study the factors that enhance a dealer to gain a competitive advantage over other dealers in cellular industry in Bangalore city" A survey of 30 dealers is conducted in general to derive at the conclusion. The channel partners of Airtel, Spice Telecom, Hutch were interviewed in most of the cases since they had in depth knowledge both with respect to the consumers as well as the parent company. In few cases, where the channel partners were not actively involved managers of the showrooms were interviewed.

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4.1 INTRODUCION TO ANALYSIS: CLASSIFICATION AND TABULATION OF DATA Once the data has been collected, the process of analysis begins. Almost invariably the data must be first translated into a form appropriate for analysis. This chapter concerns the process of taking completed questionnaires and preparing them for analysis. The research steps following the gathering of data related to this process of data preparation is presented below. Validate data Edit acceptable Questionnaire Code the Questionnaire Key punch the data Clean the data set Store the data set for analysis 31

Analyze the data

The conclusions about these preparatory steps are based on assumptions involving general logic about the interpretative process and about the supposed nature of the data relative to the appropriate analysis. The transformation of raw data into useful information requires that the data be validated, edited, coded, so that it can be stored for further analysis. The classified data are then analyzed using statistical tools. The data has first been shown in a tabular form and a brief explanation is given following that. Each table is followed by graphs, which provides for easy visual interpretation of the data.

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4.2 DATA ANALYSIS AND TOOLS

Location of dealer offices in Amritsar city.

Table-4.2.1

Location North East West South Total Source: Survey Data

Respondents 12 3 3 12 30

Percentage (%) 40 10 10 40 100

Inference : In the above table it has been observed that 40% of the dealers are located in the Northern part of Amritsar, 10% are located in the Eastern part of Amritsar, 10% are located in the Western part of Amritsar, and the remaining 40% are located in the Southern part of Amritsar.

33

Location of dealer offices in Amritsar city.

Graph-4.2.1

45 40 35 Percentage(%) 30 25 20 15 10 5 0
North East West South

40

40

10

10

Directions

34

Duration for which the dealers have been in cellular market

Table-4.2.2
Duration Less than one year 1-3 years 3-6 years More than six years Total Respondents 8 10 6 6 30 Percentage (%) 27 33 20 20 100

Source: Survey Data

Inference : In the above table it has been observed that 27% of the dealers have been in the market for less than a year , 33% of the dealers between 1 to 3 years, 20% between 3 to 6 years and 20% of the dealers have been in the market for more than 6 years.

Duration for which the dealers have been in cellular market 35

Graph-4.2.2

35 30 20 25 Percentage (%) 33 20 15 10 5 0 Less than 1 year 1-3 years 3-6 years More than 6 years

27 20

No. of years

The average number of sales calls made per week per person.

36

Table-4.2.3 No. of sales calls 5-10 10-20 20-30 30 and above Total Source: Survey Data Inference : In the above graph it has been seen 40% of dealers have their Respondents 12 10 4 4 20 Percentage (%) 40 33 13.5 13.5 100

sales persons making 5 to 10 sales calls per week per person, 33% of dealers have their sales persons making 10 to 20 sales calls per week per person, 13.5% of dealers have their sales persons making 20 to 30 sales calls per week per person and the remaining 13.5% of dealers have their sales persons making more than 30 sales calls per week per person.

The average number of sales calls made per week per person.

37

Graph-4.2.3

45 40 35 Percentage (%) 30 25 20 15 10 5 0 5-10 calls 10-20 calls 20-30 calls 30 and above No. of calls 13.5 13.5 40 33

The average number of productive sales calls made per week per person

38

Table-4.2.4 No. of productive calls 1-5 5-10 10-20 20 and above Total Source: Survey Data 12 10 6 2 30 Respondents Percentage (%) 40 33 20 7 100

Inference : In the above table it has been seen 40% of dealers have their sales persons making 1 to 5 productive sales calls per week per person, 33% of dealers have their sales persons making 5 to 10 productive sales calls per week per person, 20% of their dealers have their sales persons making 10 to 20 productive sales calls per week per person and the remaining 7% of dealers have their sales persons making more than 20 productive sales calls per person.

The average number of productive sales calls made per week per person

39

Graph-4.2.4

45 40 35 Percentage (%) 30 25 20 15 10 5 0 1-5 calls 5-10 calls 10-20 calls No. of calls 20 and above 20 7 40 33

40

The average number of visits by a sales person to a potential customer to close an order as a result of increase in competition.

Table-4.2.5

No. of visits to close an order One time 2-4 times 4-8 times More than 8 times Total Source: Survey Data

Respondents Percentage (%) 0 22 6 2 30 0 73 20 7 100

Inference : From the above table 73% of the dealers have their sales personnel making 2 to 4 visits to a potential customer to close an order, another 20% of the dealers have their sales personnel making 4 to 8 visits to a potential customer and the remaining 7% of the dealers have their sales person making more than 8 visits to close an order.

41

The average number of visits by a sales person to a potential customer to close an order as a result of increase in competition.

Graph-4.2.5

80 70 Percentage (%) 60 50 40 30 20 10 0 0 One time

73

20 7 2-4 times 4-8 times More than 8 times

No. of times

42

Frequency of review meeting regarding sales and collection with the parent company Table-4.2.6 Frequency Daily once Monthly Weekly once Fortnightly Quarterly Total Respondents 6 6 3 2 13 30 Percentage (%) 20 20 10 7 43 100

Source: Survey Data Inference : From the above table it is seen that 20% of the dealers have their

review meeting once in a day, another 20% of the people have their review meeting once in a month, about 10% of the dealers have their review meeting every week 7% 0f the dealers have their review meeting every fortnight and the remaining 43% of the dealers have their review meeting quarterly.

43

The average number of visits by a sales person to a potential customer to close an order as a result of increase in competition.

Graph-4.2.6

50 45 40 35 Percentage (%) 30 25 20 15 10 5 0 Daily once Monthly Weekly Fortnightly Quarterly Frequency of meetings 7 20 20 10 43

44

45

Feedback about the nature of complaints received from the customers to the dealers.

Table-4.2.7
Nature of complaint Poor network Late bill Value additions Bill discrepancies Total Respondents 6 6 3 15 30 Percentage (%) 20 20 10 50 100

Source: Survey Data Inference : As seen from the above table ,20% of the customers have complaints about poor network, 6% of the customers have complaints about late bill ,10% about value additions and a majority of 50% of the customers have complaints with respect to the discrepancies found in their monthly bills.

Feedback about the nature of complaints received from the customers to the dealers. 46

Graph-4.2.7

60 50 40 10 30 20 20 10 0
k on s w or bi ll ad di ti ep an ci D is cr ne t te es

Percentage (%)

50

20

la

Po o

va

lu e

Nature of complaints

Feedback about the nature of complaints to the parent company

47

Bi ll

Table 4.2.8

Feedback of dealers to the company Yes No Total Source: Survey Data INFERENCE:

Respondents

Percentage (%)

30 0 30

100 0 100

As seen from the above table all the dealers do give feedback about the nature of complaints from the customers to the their respective parent companies on a regular basis.

Feedback about the nature of complaints to the parent company

48

Graph-4.2.8

35 30 Percentage (%) 25 20 15 10 5 0 Yes No Feedback about complaints 30

Response of the dealers as to whether the parent company takes the complaints into consideration to improve the quality of the product

49

Table-4.2.9

Response of company to complaints Yes No Total

Respondents

Percentage (%)

24 06 30

80 20 100

Source: Survey Data

Inference :

From the above table it is seen that about 80% of the dealers feel

that that the company takes the complaints into consideration to improve the quality of the product and the remaining 20% of the dealers do not feel that the company takes the complaints into consideration to improve the quality of the service.

Response of the dealers as to whether the parent company takes the complaints into consideration to improve the quality of the product

50

Graph-4.2.9

90 80 70 Percentage (%) 60 50 40 30 20 10 0 Yes No 20 80

Growth rate of the dealers in terms of quantity sold in the last one year

Table-4.2.10

51

Growth rate -20 to 0% No Change 0 to 10% 10% to 20% More than 20% Total

Respondents 0 1 7 10 12 30

Percentage (%) 0 3 24 33 40 100

Source: Survey Data

Inference : From the above chart none of the dealers contacted had a negative growth rate, 3% had no changes in their growth rare ,24% of the dealers had a growth rate between 0 to 10%, about 33% of the dealers had a growth rate between 10% to 20% and the remaining 40% had a growth rate more than 20%.

Growth rate of the dealers in terms of quantity sold in the last one year

52

Graph-4.2.10

45 40 35 Percentage(%) 30 25 20 15 10 5 0 0 3 ,-20 to 0% No Change 0 to 10% 10 to 20% More than 20% 24 33 40

Percentage change in Quantity

Intentions of the dealers to shift to other goods for agency in future (other than cellular service)

53

Table-4.2.11

Intentions to shift Yes No Total

Respondents 6 24 30

Percentage (%) 20 80 100

Source: Survey Data

Inference : From the above table we can see that on 20% of the dealers have the intentions to shift to any other product or service for agency in future .The other 80% of the respondents have no intentions to shift

Intentions of the dealers to shift to other goods for agency in future (other than cellular service)

Graph-4.2.11

54

90 80 70 Percentage (% ) 60 50 40 30 20 10 0 Yes No 20 80

Awareness of the dealers about their competitors sales network

Table-4.2.12

Awareness Good Average

Respondents 12 18 55

Percentage (%) 40 60

Nil Total

0 30

0 100

Source: Survey Data

Inference : From the above table it is seen that 40% of the dealers believe that they have a good awareness about their competitors sales network and the remaining 60% of the dealers believe that their awareness about their competitors sales network is average.

Awareness of the dealers about their competitors sales network

Graph-4.2.12

70 60 Percentage(%) 50 40 30 20 10 0 Good
56

40 60

0 Average Nil

Response of the dealers as to whether their sales force is stronger than their competitors sales force Table-4.2.13

Stronger sales force than the competitors Yes No Total

Respondents

Percentage (%)

18 12 30

60 40 100

Source: Survey Data

57

Inference : From the above table 60% of the dealers feel that their sales force is stronger than their competitors while the remaining 40% of the dealers feel that their sales force is not as strong as their competitors.

Response of the dealers as to whether their sales force is stronger than their competitors sales force

Graph-4.2.13

80 70 60 50 40 30 20 10 0

70

Percentage

30

Yes

No

58

Effect of time-factor pricing on the sales of cellular services

Table-4.2.14

Effect of time factor pricing Increase in sales No Change Decrease in sales Initially increases and then decreases Total

Respondent s 15 4 0 11 30

Percentage (%) 50 13 0 27 100

Source: Personal Survey Inference : From the above graph it is seen that 50% of the dealers feel that

there is an increase in sales, about 13% of the dealers feel that there is no 59

change in sales and the remaining 27% of the dealers feel that the sales initially increases and then decreases

60

Effect of time-factor pricing on the sales of cellular services

Graph-4.2.14 60 50 50 27 Percentage (%) 40 30 20 10 0 Incerase in sales Decrease in sales 0 No Change Initially increases and then decreases 13

- 65 -

5.1 SUMMARY OF FINDINGS: The focus of the project was to study the various factors that enhance a cellular service dealer to gain a competitive advantage over competitor's dealer in Bangalore City. The various factors that can have an effect are listed below. Brand Image Pricing policy Promotional policy Sales force motivation levels/ Incentives After sales service Dealers investment/Infrastructure Number of dealers Delivery times According to the survey the experience of the respondents in the industry varied from a short period of less than a year to more than six years and the people who managed these dealers were with immense cellular service background. Most of them believed that a highly motivated sales force along with good after sales service was very important to generate new business and retain them. It was also found during the study that the general conversion rate of cold calls into productive call range from 50% to 60% and the conversion rate of a direct enquiry received by the company which is passed on to the dealer range between 60% to 70%. - 66 -

Another important finding was, as to why customers are taking more time to place an order is because of competition in market , confusion prevailing in the minds of the customers either to opt for a GSM based service or CDMA based operators of which pricing being the single largest factor.

Most of the dealers had a average awareness about their competitors sales network and felt that their sales force was stronger than their competitors because of their technical competence, good marketing skills and good training imparted to their sales force. Another important finding was that the top three companies for post paid cellular service were 1. Airtel 2. BSNL 3. Hutch The top three companies in the market for prepaid services were 1. Airtel Magic 2. Spice Simple 3. Hutch The study also revealed that most of the companies/dealer undertake , Customers meet ,road shows ,paper inserts etc on a regular basis.

- 67 -

5.1 RECOMMENDATIONS; The factors that are responsible for a dealer to gain a competitive edge over their rivals are is quite simple and straight foreword as described below. If a dealer is associated with an organization, which already has, a good brand image in the market, there is no shortage of direct enquiries received by the company or the dealers. But having received an enquiry and to convert it into business is the main task here. In this busy world the customers or potential customers have very little time to decide on products. They expect that the company/dealer who approaches them are trustworthy and provide good value for their money. It is here that the human relationship or human skills come into play. Once a company or its sales person enjoys a good rapport with his customers then he is more likely to pick the order. Once this trust is gained the customer would be more comfortable to deal with that particular individual than any other individual of the company/dealer as such. Efficient service and proper pricing are also very important in this industry. The trust gained by an individual from his customer can be retained by efficient and reliable service. Thus the service department of the company also plays an important role in this regard. When we talk about human skills, then in this context we mean that the customer is more comfortable with a particular individual of the company/dealer and would always approach him for his services.

- 68 -

Since the customer is more comfortable with a particular individual of a company, there is a negative aspect to this i.e., what happens if the individual leaves the company and goes over to a competitor, then along with him goes the customer also. Thus, it is very important for the dealer to retain their employees. In order to over come such eventuality, the senior executives of the dealers also need to maintain a good rapport with the customers. Retention of performing employees is a major task of all organizations in any industry. This can be done by employing good HR policies and treating the employees as very much as a part of the organization providing them all benefits so as to keep them motivated. It is often said that 80% of your business always comes from 20% of your existing clients. Thus the company-customer relationship is to be kept going on for a long period of time. As mentioned earlier that the factors responsible for a dealer to gain a competitive edge over its rivals appears to be quite simple and straight foreword, but it is not the case always. This can happen only by recruiting and retaining the right persons for the right job. In the cellular service industry, the sales force must be a good blend or good combination of technical as well as human skills, which would be very beneficial. In a highly competitive market situation prevailing as of now , it becomes very important for the organizations to provide with a proper after sale service and appropriate customer support . - 69 -

It is also evident from the research that many customers have a complaint with respect to the network coverage of the operators. Therefore enough support needs to be provided by the parent organizations to the dealers by setting up latest infrastructure and updating their technologies as and when needed which increases the overall quality of the service which helps the dealer to have an edge over the dealers of the competitive network. It also becomes the responsibility of the organizations to satisfy the current customers by keeping them updated with the normal changes in their rate plans and also the kinds of services introduced by them from time to time. This is because word of mouth communication by the existing customers plays a vital role in influencing the purchasing decision of new customers. It was also found in the research that any new offers introduced by the organizations are generally available for the new customers only , which results in customer dissatisfaction, therefore organizations need to spread the offers to the existing customers also which would prevent them from switching to different operators. More emphasis also needs to be given to promotions of their respective organizations which would eventually help their dealers overall. Road shows in different areas help the dealers of that particular area to gain a competitive edge over their competitors. With the current TRAI recommendations in place , it is not only necessary to indulge in competitive pricing , but also enough thought needs to promote their services by differentiating from that of the competitors which would help to enhance the sales of the dealers.

- 70 -

. QUESTIONNAIRE

Dear Sir/Madam As a part of MBA curriculum I am doing a seminar titled -"To study the factors that enhance a dealer to gain a competitive advantage over other dealers in cellular industry". I request you to kindly co-operate in answering this questionnaire honestly. The information will be kept confidential and used for academic purpose only.

PART A
Name Address : : : BSNL

Name of the parent company Airtel 1. Spice Hutch

In which part of the Bangalore City is your office located? North East West South

2.

Since how long are you dealing in sim cards? Less than one year 1-3 years 3-6 years more than six years

3.

Number of Sales persons in your company? Less than five 10-20 5-10 20 and above Spice Hutch BSNL No

4.

Were you a dealer of some other cellular company before? Airtel

- 71 -

PART B 5. Number of contacts (sales calls) made per week on an average per sales person. 5-10 6. 10-20 20-30 30 and above

Number of productive contacts made per week on an average (per person). 1-5 above 5-10 10-20 20 and

7.

Your first communication to a new consumer will be mainly Through sales person visit References Telephone Mail

8.

The competition has increased several folds in the last year. Thus how many visits on an average would your sales person requires to make to complete a sale? One time only More than 8 times 2-4 times 4-8 times

9.

Compared to last year, why are customers taking more time to decide on the service provider (Rank accordingly) Financial constraints Others(please specify) Competition in Market

10.

What is the frequency of your review meeting regarding sales and collection with the parent company? Daily Monthly Weekly Quarterly Fortnightly

- 72 -

PART C 11. Your feedback to the Branch office is Personally 12. Telephone Reports (mailing)

The general nature of the complaint by the customer is regarding Poor network discrepancies Late bill Value additions Bill

13.

Do you give feedback about the nature of complaints from the customers to the branch office on a regular basis (monthly)? Yes No

12.

Do you feel that the company takes the complaints into consideration to improve the quality of the service? Yes No

13.

How long it takes the company to attend a complaint of a customer ? 0-2 hrs hours 2-4 hrs 4-8 hrs More than eight

16.

What has been your growth rate in the last one year (% in Qty)? -20 to 0% More than 20% No change 0 to 10% 10 to 20%

17.

Have you any intentions to shift to other industry or product for agency in future? (Other than cellular industry) Yes No - 73 -

If yes, please specify the industry or product______________

PART D 14. What is your awareness about your competitors sales network? Good 15. Average Nil

Do you feel your sales force is stronger than that of your competitors? Yes If yes, How? ____________________________________________________ If No, why? _____________________________________________________ No

16. 17.

How many times did the Company undertake the following promotional activities? Customers meet Road shows Demos for specific target customers Demos in apartments Others(if any) Who are the competitors you generally come across in the process of sales? Rank them. 1. 2. 3.

- 74 -

18.

How has Time-Factor pricing affected you (compared to previous year)? Increase in Sales (in %) Decrease in Sales (in %) No Change Initially increases and then

decreases

- 75 -

BIBLIOGRAPHY

Philip Kotler

Marketing Management; Tenth Edition.

David. S. Luck Ronald. S. Robin Marketing Research; Prentice Hall India; Seventh Edition.

Harper. W. Boyd, Jr. Ralph Westfall. Stanley.F. Stasch Marketing Research (Text & Cases); Richard. D. Irwin Inc, Home Wood, Illinois; Seventh Edition.

Gilbert. A. Churchill, Jr. Basic Marketing Research; Drydess Press, Orlands, Florida

Charles. W. L. Hill Gareth. R. Jones Strategic Management Theory Houghton Mifflin ; Third Edition

- 76 -

Valarie. A. Zeithaml Mary Jo Bitner Services Marketing: McGraw Hill International Editions

Information from website of the company and product brochures www.airtelworld .com www.hutch.co.in www.spicetele.com www.bsnl.co.in

- 77 -

5.2 CONCLUSION

- 78 -

- 79 -