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The company would launch GSM in 11,000 towns in the first phase
and in the next few months it would be available in 24,000 towns. The company would
also be participating in the proposed 3G auction next year and is planning an investment
of Rs2,000 crore-Rs4,000 crore on 3G network. RCOM was the first company which was
awarded dual spectrum and it has invested over Rs10, 000 crore in the last 15 months to
roll out the GSM network.
Telecom Industry-1.2
India has become one of the fastest-growing mobile markets in the
world. The mobile services were commercially launched in August 1995 in India.
Although mobile telephones followed the New Telecom Policy 1994, growth was tardy
in the early years because of the high price of handsets as well as the high tariff structure
of mobile telephones. The Telecom Policy in 1999, the industry heralded several pro
consumer initiatives, mobile subscriber additions started picking up. The number of
mobile phones added throughout the country in 2003 was 16 million, followed by 22
million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more
mobile phones than India with 246 million mobile phones is China – 408 million.
India has opted for the use of both the GSM (global system for
mobile communications) and CDMA (code-division multiple access) technologies in the
mobile sector. In addition to landline and mobile phones, some of the companies also
provide the WLL service.
In the year 2008 the total GSM and CDMA mobile subscriber base
in the country was 375 million, which represented a nearly 50% growth when compared
with previous year.
1.Aircel 35.41%
2.Airtel 28.40%
3.Vodafon 22.85%
e
4.BSNL 13.32%
TRENDS-1.3
1. Subscriber growth in India will continue, driven by rural expansion, entry of newer
operators, 3G and cheaper handsets.
2. Incumbent operators will face challenges (and opportunities) on four fronts: new
operators, mobile number portability, 3G and MVNOs.
3. Focus on Value-added Services and Data will increase in saturated, urban markets.
4. Mobile VAS operators which build direct-to-consumer relationships will start
emerging.
5. Flat-rate Data Plans will accelerate the use of the Mobile Internet, Social Media and
Rich Media.
6. Operators and/or handset players will launch AppStores to drive usage, innovation
and revenues.
7. Mobile Payments and Commerce will come into vogue for micro transactions.
9. The Mobile will emerge as the next advertising and marketing medium - and be seen
as capable of not just mass reach but also allow a high degree of targeting.
PRICING - 1.4
Pricing plays an important role in the launch of a new product. Various steps in setting
pricing policy are:
➢ Step1: Selecting the Pricing objective.
Below the Line uses less conventional methods than the usual
specific channels of advertising to promote products, services, etc. than Above the Line
strategies. These may include activities such as direct mail, public relations and sales
promotions for which a fee is agreed upon and charged up front. Below the line
advertising typically focuses on direct means of communication, most commonly direct
mail and e-mail, often using highly targeted lists of names to maximize response rates.
Another interesting and very effective BTL is Ssop Intercept. Trained sales personnel,
often young women, are deployed at Retail Stores, near the shelves of targeted products.
These young women convince customers visiting these shelves about the better aspects of
their brand compared with others. This is ideal for new launches as it generates trials,
which if successful result in repeat sales. In addition, above the line is much more
effective when the target group is very large and difficult to define. But if the target
group is limited and specific, it is always advisable to use BTL promotions for efficiency
and cost-effectiveness.
➢ Price promotion
Price promotions are also commonly known as" price discounting". These can be
done in two ways:
Price promotions however can also have a negative effect by spoiling the brand
reputation or just a temporary sales boost (during the discounts) followed by a lull
when the discount would be called off.
➢ Coupons
➢ Gift with purchases, also gifts certificates
➢ Competitions and prizes
➢ Money refunds
GSM in Chennai.
OBJECTIVES - 2.1
➢ Primary
✔ To analyze the various tariff plans available in the market
✔ To study the pricing patterns of reliance and other service providers
✔ To learn about the promotions of reliance and other service
providers.
➢ Secondary
✔ To check the level of awareness of VAS among the retailers and the
customers.
✔ To check the response of customers on different offers and tariffs.
✔ To learn about the distribution network for the BTL marketing.
SCOPE
The project will help the company to develop effective pricing &
promotions to target the customer. It also help the company to know their brand value form the
point of the retail & customer. The findings from the project could help the company to find a
relation between the sales & promotion
METHODOLOGY -2.2
Exploratory studies: It helps in understanding and assessing the critical issues of various
situations. It is not used in cases where a definite result is desired. The study results are
used for subsequent research to attain conclusive results for a particular situation.
Exploratory studies are conducted for three main reasons to analyze a situation, to
evaluate alternatives and to discover new ideas.. A combination of these techniques gives
rise to important exploratory techniques that are Secondary data analysis, Experience
surveys, and Focus groups.
➢ Procedure – 2.3
The project is divided into two parts one is to analyze the pricing strategies for the
launch of GSM. In this part, secondary data analysis would be done and comparison
would be made with the other market players .It would also include collection of primary
data by administrating the questionnaire to the cluster of customers.
House wives.
Businessmen.
Employees.
College students.
Auto drivers.
Effectiveness of the promotions would be concluded by primary data survey of the retailers
and the customers.
➢ Limitations -2.4
1. Sample size is small.
2. Every promotional activity cannot be tracked down.
3. The study was carried within a short span of time from the launch of
GSM.
4. Major proportion of respondents was unaware of value added
services.
➢ DISCUSSION -2.5
Before the launch of GSM
A) A survey was done to check the level of awareness among the reliance
retailers and another survey was done to know the type of VAS customers.
It was a pilot study which was done on the 30 customer .the purpose of the
the survey was to find the various value added services used by the
B) A survey was done to check the level of awareness among the Reliance’s
retailers. A visit was made to the 19 Reliance’s web worlds in order to check the
awareness among the employee of the R-world. The result helped us to know
C) Another survey was conducted to find out the retailers response regarding
the various GSM operators in Chennai. The main focus of the survey was
to find out the market the leader, important features of the different services
company, most saleable pack & visibility of the various brand are
calculated.
D) A survey was conducted to know the retailer feedback regarding Reliance‘s
landline – HELLO. To find out the whether the customer are using it for
this survey
1. To find the response of the customer to the 3 pricing scenario which are
Caller tunes
Cricket score
Wap services.
Ring tunes
Stock portfolio
certain parameter
DATA ANALYSIS - 3.1
After inspecting these 259 retailers what have found on analysis average score
was between 50- 70 which represented 70% of the population and 14% fall in the
category of 0-30 and remaining 16% fall in the above 100 category.
RESULTS OF THE CUSTOMER SURVEY
➢ EXISTING CONNECTIONS
Interpretation:
Out of the 100 customers who participated in survey 43% were Airtel users , 25 %
were Vodafone users ,22% Aircel users, 6% were Reliance users and 4% were BSNL
users. Reason for Reliance’s low count is because the survey was conducted only after 1
week of the launch of GSM
In this question the participants were asked to select one tariff plan out of the
three plans. These plans were decided after the retailer’s feedback. On analysis it was
found that 66% chose plan 45-50, 24% chose plan 75-80, 10% chose plan 95-99.
Interpretation:
Scenario 1: If local call rate is decreased by .25 Rs & STD is increased by .25 Rs.
Scenario 2: If local call rate is decreased by .25 Rs & STD is increased by .25 Rs.
Scenario 3: No change in the call rates but sms is decreased by.5 Rs.
On analysis it was found 54% said yes to the scenario one ,46% agreed on the scenario 2
and rest 10 % agreed on the scenario three.
Interpretation:
In order to check the responses of the customers regarding the booster pack , it
was foind that 62% uses booster for rate cutters and 46% donot use booster pack .
On the basis of the previous surveys, certain Value added services were mostly
known to the customers.
Again what we found that 46% are interested in using ringtones, 30% are using
and some would like to use caller tunes. And 12 % are wap services.
Interpretation:
From the point of view of customers 40% thinks Airtel is the number one player in
the market, 30% thinks Aircel is the number one player. And there perception was based
on the network connectivity and offers .
➢ VISIBILITY OF THE BRAND
Interpretation:
According to the customers the most visible brand is Airtel with a score of 43%
then closely followed by the Vodafone. And represents little share of 5%.
➢ SOURCE OF INFORMATION
Interpretation:
Customers were asked about the source of information for offers. And it was
found that retailers are the main source of information for customers and 28% informed
that their source of information is word of mouth.
Interpretation:
A question was asked to check the awareness among the customers about the
launch of GSM in Chennai .It was found that 67% of people knew about the launch of
Reliances GSM in Chennai.
➢ SOURCE OF INFORMATION ABOUT THE VAS SERVICES
Interpretation:
It was found that the customers come to know about the VAS mainly from SMS
and television.
Since, Value added service contribute around 5-10 % of the revenue for the
reliance’s CDMA. An analysis of the VAS services of all the operators was done and it
was concluded that the Vodafone is the number one player as far as value added services
are concerned. A short survey was done to know the response of the customers who uses
VAS.
A questionnaire was administered on 30 customers out of which 54.5% uses caller
tunes,13.64 uses ringtones, 18.18 downloads wall papers,4.54 love messages,4.54
finance,13.64 wap services. This data helped us to frame a questionnaire in order to
check the awareness among the reliance retailers. Again, questionnaire was
administered, the results are as under:
AWARENESS SURVEY
On a visit to 19 R world stores and retail outlets which were allocated to us,
summary of the same is as under:
This question was based on subscription of caller tunes, price of caller tunes,
and unsubscription of caller tunes. Out of 19 outlets 7 fully informed us about
activation,6 partially informed,6 couldn’t inform.
Out of 19 retailers 2 said that leaflet is available and rest 18 said that leaflet are
not available.
Next part was to know the number one brand in terms of the retailers, why it was
chosen as number, important features of the particular brand, what type of customers uses
which connection, profitable brand of customers and most visible brand. Some of the
findings are:
RANK OPERATORS
1. Airtel
2. Aircel
3. Vodafone
4. Reliance
5. BSNL
This table briefs us about the type of operators and the type of customers using them
The most visible brand is in this order:
1. Airtel
2. Vodafone
AIRTEL 3. ALLAircel
TYPES OF CUSTOMERS
VODAFONE 4. STUDENTS
Reliance
AIRCEL 5. YOUNGTERS
BSNL
RELIANCE EMPLOYERS, BUSINESSMEN.
BSNL LOW INCOME GROUP
Out of the survey the most popular and sellable plans are:
Customers who actually buy per month: 54% retailers said 0 to 3 customers buy Reliance Hello
everyday.
About 70% retailers said yes while about 30% retailers said no.
Do you convey information about plans and tariffs?
About 91% retailers said yes while about 9% retailers said no.
Models available
67% retailers said they have normal model available, 25% said they have both data
and normal model.
Stock available
48% retailers said they always keep 3 to 5 sets in their shop, 39% retailers said they always keep
3 to 5 sets in their shop.
79% retailers said customers buy Hello to use it for incoming only, 13% retailers said customers
buy for both incoming and outgoing.
Technical problems
52% retailers said there are no issues in the set, 30% retailers said there is battery problem in the
set.
SUGGESTIONS-3.2
1. The company should promote their Value added services not only the customers
2. Brand value of the reliance is low among retailers. To improve that heavy
3. Relations with the retailers have to be improved, which will help the company
4. Visibility of the brand is still not up to the mark when compared with the
5. Customers are price sensitive especially about local calls. So, in order to the
of the display contest or they have not received the necessary material like
banners, posters.
7. The company should improve their network connectivity as it is the most
CONCLUSION-3.3
Reliance provides best life time offer when compared to other offers
available in the market. Visibility of the reliance is still less when compared to other
players like Airtel and Vodafone. It is also concluded that the promotion for the
launch of GSM is a success as majority of the customers knew about it. Training of
the staff is very necessary as it would help n generating more revenue for the
Reliance.
TAKE AWAYS
If local call rate is increased by 25 p & STD is decreased by 25p but sms is decreased
by 50p.
No change in the call rates but sms is decreased by 50paisa
4. Out of the following value added services which you use or would like to use
Stock portfolio
5. How much you would like to pay if average rate for VAS is Rs30/month
Vodafone Bsnl
VALIDITY NIL.LIFETIME
VALIDITY
VALIDITY 10
TALKTIME 20
TALKTIME 0
TALKTIME 30 days
LOCAL CALLS CHARGES
LOCAL CALLS CHARGES
LOCAL CALLS CHARGES
QUESTIONNAIRE FOR RETAILER’S RESPONSE
SAME .30Rs/min
.JODINETWORK
NO. .10Rs/min
.
PROVIDER
TO OTHERS .99Rs/min
ALL .99Rs/min
TO OTHERS .60Rs/min 1. Which plan of the brand do you recommend? And why?
STD CALL CHARGES
STD CALL CHARGES
STD CALL CHARGES 2. Rank the following brands on Overall performance.
TO SAME 1 Rs/min Airtel Vodafone
TO SAME
TO SAME
NETWORK 1.5 1
NETWORK
NETWORK
PROVIDER Rs/min
Rs/min Aircel BSNL
PROVIDER
PROVIDER
TO OTHER 1.5 Rs/min Reliance
TO OTHER
TO OTHER 1.5 Rs/min
1 Rs/min
3. Why you have chosen this as a number one brand?
OPERATORS
OPERATORS
OPERATORS 4. What are important features of the above brands?
SMS CHARGES
SMS SMS CHARGES
CHARGES 5. Which service provider has cheapest call rates?
6. Which brand is profitable for you?
JODISAME
NUMBER
NETWORK.10 1
SAME NETWORK .50Rs/sms
Rs/sms 7. Do you have any issue with the above brands? If Yes, what
PROVIDER Rs/min
PROVIDER
OTHER LOCAL
OTHER LOCAL .25 1 are they?
OTHER LOCAL .50Rs/sms
Rs/sms
Rs/min 8. Which brand gives best value pack for customers? And
NATIOANL
NATIOANL .50Rs/sms
1 which pack?
Rs/min
9. Which plan is most saleable?
INTERNATIONAL
INTERNATIONAL5Rs/sms
5Rs/sms
10. What type of customers choose the following brands
Airtel Vodafone
Aircel BSNL
Aircel
11. Rank the Visible brands (Total score) No. of signage boards , Posters, Leaflets
Airtel Vodafone
Aircel BSNL
Reliance
12. Any display contest organized for retailers by any of the brands?
13. Any special offers provided by the companies for the retailers?
*signage boards =20 points
Posters =10 points
Leaflets =5 points (Total score=35)
BIBLIOGRAPHY