CRM PROJECT

ON
Idea Cellular

P
resented by:
Amit
kumar-1117
Ankit
Sharma-0229
Nishan
t dubey
 Jaiveer
singh
Harish
vats

Outline of the project:

1.Table of Contents
2.Executive Summary
3.Objective
4.Industry overview
5.Company overview
6.Methodology
7.CRM @ Idea Cellular
8. Findings & Conclusion
9.Exhibits
10.References

Executive Summary

As a part of the study we have tried to understand how Customer

Relationship Management allows Idea Cellular identify the most
valuable customers over time, and increase customers’ loyalty &
satisfaction by providing customized products and services. We
have also identified the various CRM initiatives successfully
executed by marketing team of Idea Cellular.

We have studied current challenges faced by Idea and observed

that Idea is facing stiff competition from other players in the
industry. It has become challenging for them to retain the existing
customer base and increase the consumer loyalty. Idea has
initiated various loyalty programs to manage the customer churn.
They are focusing on innovative VAS offering to increase the
overall average revenue per user. But over the last few years Idea
has faced decline in ARPU, so now the challenge before Idea is
increase its market share with the application of unique CRM
initiatives.

We have observed that there are lot of successful & unique

initiatives at Idea Cellular which are focused on both B2B and B2C
markets. Idea has been focusing on emerging markets within
India and is ranked high in existing area of operations.
Objective
Idea cellular is a part of Aditya Birla Group, a multinational having
operations in 25 countries. The reputation of being the first Indian
multinational and part of 100 fortune companies carries a lot of
strength which Idea cellular enjoys being the part of prestigious
group. However due to the recent trends of high growth in the
telecom sector most of the offering innovative Value Added
Services to acquire and retain the subscribers. Customer base is
growing rapidly but operators are facing the challenges of falling
ARPU and increasing churn rate. It has become a challenge for
them to differentiate from each other and maintain consumer
loyalty.

The objective of the report is to study and understand the various

CRM initiatives of IDEA and overall satisfaction and loyalty of the
consumers for various players in the industry through:

1. A customer satisfaction survey of the consumers to

understand their satisfaction levels with various telecom
operators including Idea.

2. The survey intends to analyze satisfaction levels of

consumers on different parameters like customer service,
availability of various channels, issue resolution etc.

3. Secondary research on how Idea is trying to differentiate

itself from the competition by applying CRM to their
strategy.

4. Important challenges faced by Idea in the wake of Mobile

Number Portability and increasing churn rate of Prepaid
customers

5. Various initiatives by Idea in B2B and B2C market to increase

market share
Industry overview

Background
The Indian Telecommunications network with 203 million connections is the
third largest in the world and the second largest among the emerging
economies of Asia.
Today, it is the fastest growing market in the world. The telecommunication
sector continued to register significant success during the year and has
emerged as one of the key sectors responsible for India’s resurgent India’s
economic growth.
• Telecom sector accounts for 1 percent of India’s GDP. Likely to
double in 2-3 years
• Telecom services contribute 30 percent to India’s total service tax
revenue
• The Indian telecom sector gives direct employment to more than
4,00,000 people, compared to about 6,00,000 people in China
• Not just the enabler of software, BPO and ITeS companies, it is also
the lifeline of a fast growing E-commerce space
• State-of-the-art telecom infrastructure has led to the rise of cities like
Mysore, Mangalore , Jaipur , Ahmadabad, Kochi on the software
services map
• This has helped spread the benefits of a booming Indian economy to
beyond metros and large cities, and wealth creation is happening in
tier-2 cities
Industry Performance
Indian telecom industry’s key highlights in year 2010 were as follow:

• Industry is facing declining ARPU, almost all service provider’s ARPU

is falling, as tariffs are falling. It declined to 48% in wireless segment
in June, 2010.

• Subscriber base has grown up like anything as compared to previous

year. Market players are trying to enter more and more into rural
markets, as to achieve the cost economies and create entry barrier
for others. It has grown by 48% as compared to previous year, in the
June, 2010.
• Overall Tele-Density has also grown as compared to previous year. It
rose to 46.73% from last year.
Industry Challenges

• Industry is facing the falling tariffs and declining ARPU. Challenge for
players is to sustain the profitability by increasing the consumer base.
• Rural market are required to be penetrated, still there is scope to
serve this segment.
• Challenge for service provider to provide innovative VAS services to
various consumer segments to sustain the profitability.
• With the launch of MNP, it is important for service provider to focus
on customer satisfaction and increasing loyalty to retain the customer
base.
• How to use 3G effectively to penetrate rural markets, for providing
mobile internet services.

Industry Trends
• Market players have found that due to slashing prices, they have to
think innovatively and need to re-visit the business models to
maintain the profitability and growth. They are trying to differentiate
from each other by offering innovative VAS to subscribers.
• Some of the players like Idea Cellular is all set to launch its m-
banking solution in association with Axis Bank.
• Many service providers have started offering m-entertainment and m-
commerce solutions as part of VAS offering.
• Service provider has launched the 3G services and offering high
speed data access on mobile. Mobile broadband is expected to grow
tremendously in the near future because of greater market
penetration of mobile as compared to PC in India.
• Service provider has started facing stiff competition from each other
as due to launch of MNP, any subscriber can easily switch to other
operator while retaining his/her mobile number. Service providers are
constantly trying to find ways to better manage this churn and
increase customer satisfaction and loyalty to retain the customers.
Company overview
IDEA Cellular is an Aditya Birla Group Company, India's first truly
multinational corporation. The group operates in 26 countries, and is
anchored by over 130,600 employees belonging to 40 nationalities. The
Group has been adjudged the '6th Top Company for Leaders in Asia
Pacific Region' in 2009, in a survey conducted by Hewitt Associates, in
partnership with The RBL Group, and Fortune. The Group has also been
rated 'The Best Employer in India and among the Top 20 in Asia' by the
Hewitt-Economic Times and Wall Street Journal Study 2007.

IDEA Cellular is a publicly listed company, having listed on the Bombay

Stock Exchange (BSE) and the National Stock Exchange (NSE) in March
2007.
Idea is the 3rd largest mobile services operator in India, in revenue terms,
and recorded a subscriber base of over 78 million as on end November
'10. It became a pan-India integrated GSM operator covering the entire
telephony landscape of the country, and expanded its NLD and ILD
operations in FY 2010. During the year, Idea increased its revenue market
share by over 1%, despite stiff tariff war in the market.

The company has won license to offer 3G services in 11 service areas,

which generate over 81% of the company's total revenue. Idea's 3G
services will be launched in the year 2011.
Idea's strong growth in the Indian telephony market comes from its deep
penetration in the non-urban and rural markets. Idea has the highest
share of rural subscribers as a percentage of total subscribers, amongst
other GSM players. In fact, two out of every three new subscribers now
come from non-urban market.
IDEA is profitably placed due to some of the inherent strengths:
a. Brand reputation: Idea cellular is a part of Aditya Birla Group, a
multinational having operations in 25 countries. The reputation of
being the first Indian multinational and part of 100 fortune companies
carries a lot of strength which Idea cellular enjoys being the part of
prestigious group.
 b. Market share: The overall market share of Idea cellular is increasing
at a healthy rate, refer exhibit 2.
c. Technology innovation: Being the first player in the telecom
industry to start GPRS services in India, and even starting unique
products, such as ‘My gang’ and ‘Idea radio’, the technological
innovation of the organization can act as strength to the company in
the long run.

d. Strong advertising and promotion: Idea cellular is known in the

industry for its aggressive promotional and advertising techniques,
such as having Abhishek Bachan, a famous Bollywood star as part of
its advertising punch line ‘What an idea Sir Ji’ proved effective in
carrying out the promotional campaigns throughout the country.
e. Strategic alliance: Idea cellular has strategic alliance with IBM and
Oracle. Both have a unique brand image for providing best in class
software solutions like CRM (Customer Relationship Management)
and OLAP (Online Analytical Processing). It has also tie ups with
leading mobile producers like Nokia.

f. Financial strength: Idea is operating with lower debt and huge cash
bases. The revenue is consistently on a growth path, refer exhibit 1.

Product Offerings:

• Voice services
• Business Applications
• GPRS Applications
• Customized Solutions
• Corporate connections
Questionnaire on Mobile Services
usage
Top of Form

1.Please choose your Operator

Airtel

Vodafone

Idea

MTNL

Reliance

Aircel

MTS

Tata Indicom

BSNL

2.Please choose type of your connection

Prepaid

Postpaid
3.Time taken by the operator to activate new connection Please
rate on the satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied
4.Time taken by the operator to activate connection if it was
suspended earlier due to non-payment of bills Please rate on the
satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

5.Reporting of billing information Please rate on the satisfaction

level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

6.Accuracy in billing Please rate on the satisfaction level

achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

7.Process of resolution of billing complaints Please rate on the

satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

8.Handling of complaints Please rate on the satisfaction level

achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied
9.Ease in accessing the call center or customer care Please rate
on the satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

10.Response time in answering of call while you are calling

customer care Please rate on the satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

11.Problem solving ability of customer care executive Please rate

on the satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

12.Time taken to resolve the complaints .Please rate on the

satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

13.Network coverage in your locality .Please rate on the

satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

14.Signal quality in general Please rate on the satisfaction level

achieved
 1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

15.Ability to make or receive calls Please rate on the satisfaction

level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

16.Voice quality Please rate on the satisfaction level achieved

1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

17.Attitude of retail executive selling mobile connection Please

rate on the satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

18.Understanding of Tariff Plans Please rate on the satisfaction

level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

19.Quality of Value added services ( e.g. caller tunes, GPRS etc.)

Please rate on the satisfaction level achieved
1 2 3 4 5
 Highly Highly
Dissatisfied Satisfied

20.Overall quality of service of your operator Please rate on the

satisfaction level achieved
1 2 3 4 5
Highly Highly
Dissatisfied Satisfied

21.Would you recommend your present operator to others Please

rate on level of agreement
1 2 3 4 5
Highly Highly
Disagree Agree

22.Would you complaint about the problems faced to others

Please rate on level of agreement
1 2 3 4 5
Highly Highly
Disagree Agree

23.Would you switch the service provider if other operators lower

the tariff Please rate on level of agreement
1 2 3 4 5
Highly Highly
Disagree Agree

24.You feel proud to be associated with your operator Please rate

on level of agreement
1 2 3 4 5
Highly Highly
 Disagree Agree

25.Your Name

26.Your E-mail ID

27.Choose following

Male

Female
28.Your Age

15-25

25-35

35-45

Above 45
29.Your Occupation

Student

Service

Home-maker

Professional

Retired
30.Your Income Monthly..

None
Rs 10000-20000

Rs. 20000-35000

Rs. 35000-50000

More than 50000