Presented By Group 9

Rajeev R Srivastav Sushmita Gupta Tanuj Tandon Tripti Tiwari Vijay Devre Y Rahul

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Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Philip Kotler The systematic gathering, recording and analyzing of all data about problems relating to the marketing of goods and services. The American Marketing Association

Types of Marketing Research

Applied Research Basic Research

Purpose of Marketing Research

Identify and define marketing problems Understanding market and customers Develop marketing strategies Facilitate efficient expenditure of funds Improve the understanding of marketing as a process

The Marketing Research Process

Define the problem and research objectives

Define the Problem

VAS Penetration In India: Current Scenario & Opportunities.

 Research

Objectives

To analyze consumption pattern of usage of

Value Added Services among students and corporate professionals. To explore new methods of increasing VAS penetration in India.

Why it is to be researched?

What is VAS?
In mobile telecommunication industry, VAS is defined as services that are: not part of the basic voice offer allow the mobile operators to develop another stream of revenue

VAS Categories

Indian Telecom Industry

Total Telephone subscriber base reaches 638.05 Million Wireless subscription reaches 601.22 Million Overall Tele-density reaches 54.10

Source: http://www.telecomindiaonline.com

Indian Telecom (contd..)

ARPU (Rs/sub/month)
250 200 150 100 50

GSM

0
May-09 Mar-09 Apr-09 Oct-09 Nov-09 Aug-09 Dec-09

Source: http://www.trai.gov.in

Sep-09

Feb-10

Mar-10

Jun-09

Jul-09

Jan-10

VAS An Indian Perspective

Indian telecommunications industry offers one of the lowest tariffs in the world It's imperative to focus on alternate revenue streams Currently, only 9-12% of a telecom operator's revenues come from VAS The scope is huge

Source: http://teleguru.in/2010/03/vas-revenue-to-touch-rs-200-bn-by-2015/

Revenue from different VAS

Other value added services 1% Mobile music, Mobile Internet games, 21% images, TV & video 29%
Mobile messaging 49%

Source: http://www.tmcnet.com/usubmit/2010/08/05/4941469.htm

Develop the Research Plan

Data Sources o Primary Data o Secondary Data o Both Research Approaches o Observational Research o Focus Group Research o Survey Research o Behavioral Data o Experimental Research

Research Design

Research Design step involves the development of a research plan for carrying out the study. There are a number of alternative research designs. The choice will largely depend on the research purpose.

Sources of Data

Primary Data freshly gathered data for a specific purpose or research project. Ex : Survey on VAS Penetration in India Secondary Data Information that has been collected for some other purpose other than the research at hand. Ex : Internal sources such as profit and loss statements, balance sheets, sales figures

Market Research Classification

MARKETING RESEARCH

QUALITATIVE RESEARCH

QUANTITATIVE RESEARCH

EXPLORATORY Focus Group; Observation; Others.

DESCRIPTIVE Survey research

CAUSAL Laboratory Experiment Field Experiment

Quantitative Research

Quantitative approaches deal with numerical measurements (i.e. quantities).

Quantitative approaches aim to test hypotheses, and usually to identify numerical differences between groups.

Quantitative Research

Qualitative Research

Qualitative approaches deal with how people understand their experiences (i.e. qualities). Qualitative methods in psychology aim to explore meaning, and might well be chosen for the investigation of issues which, for ethical, practical reasons, are difficult to 'measure.'

Qualitative Research

Primary data can be collected in mainly 5 ways

Observational research

Observational research is closely related to tracking and is used in qualitative research projects. A researcher will observe consumers while they carry out regular activities in a setting that they feel comfortable in.

Ex: Videotaping of shoppers in shops

Focus Group Research

A focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service ,concept,advertisement idea or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members.

Survey Research
Market surveys can help your organization develop accurate forecasts by: Gathering market intelligence regarding opinions, trends, and competitors Gauging interest in new products and service offerings Generating a targeted list of potential new customers

Behavioral Data

Customers actual purchases reflect preferences and are normally more reliable than memory based statements in the survey.

Behavioral Data

Experimental Research

It required selecting matched groups of subjects and subjecting them to different treatments, controlling extraneous variables and checking whether observed response differences are statistically significant.
It captures cause and effect.

We hypothesize that the Independent Variable caused the changes in the Dependent Variable.

A Classic example is of Forecast prediction using Time Series Analysis.

Research Instruments
Questionnaires
Close ended questions

1. Dichotomous
Eq. Are you satisfied with the VAS services provided by your service provider? Yes No

2. Multiple Choice
Eq. How much are you willing to pay for the VAS services on a monthly basis?

less than Rs.10 Rs.10 to Rs.100 Rs.100 to Rs.200 More than Rs.200

Research Instruments (cont.)

Close ended questions (cont.)
3. Likert scale Eq. VAS services need more technological advancements
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

4. Semantic differential
Eq. How often do you use VAS services? Very frequently-------------------------------------Never

Research Instruments (cont.)

Close ended questions (cont.)

Importance scale How much important is IM messaging in your daily life? Extremely important 1___ Very important 2___ Somewhat important 3___ Not very important 4___ Not at all important 5___ Rating scale How do you rate your current service provider in terms of VAS services? Excellent 1___ Good 2___ Fair 3___ Poor 4___

Research Instruments (cont.)

Close ended questions (cont.)

Intention to buy- scale After the launch of 3G services, would you like to buy VAS services? Definitely buy 1___ Probably buy 2___ Not sure 3___ Probably not buy 4___ Definitely not buy 5___

Research Instruments (cont.)

Open Ended questions

1.

Completely structured
Eq. What is your opinion about the current telecom industry?

2.

Word Association
Eq. What is the first word that comes in your mind when you hear the following:

IM messaging ______________________ Music station ______________________ CRBT ______________________

3. Sentence completion Eq. When I choose a service provider, the most important consideration in my decision is ________________________________________

Research Instruments (cont.)

Open ended questions (cont.)

4. Story Completion 5. Picture

6. Thematic Apperception test

Qualitative Measures

Word associations Projective techniques Visualization Brand personification Laddering

Thematic Apperception test

Questionnaire

1. Which is your mobile service provider?

2. Which of the following VAS services do you use?

Music station Voice mail services Instant messaging/chat Dating/Friendship Job Search Cricket updates News mBanking/mPayments Videos Others None

3. How often do you use VAS services?

How often do you use VAS services? Very frequently (everyday on regular basis) Occasionally when needed Rarely Never

Questionnaire (contd.)

How much are you willing to pay for the VAS services on a monthly basis?

less than Rs.10 Rs.10 to Rs.100 Rs.100 to Rs.200 More than Rs.200

5. With the upcoming 3G services, what will be the changes in your usage of the VAS services?

No change I will increase my usage Not sure

6. Are you satisfied with the VAS services provided by your service provider?

Yes No

7. If no, do you intend to switch for better VAS services? Which service provider would you like choose?

Research Instruments (cont.)

Technological Devices

Skin sensors Galvanometers Grocery scanners

 Sampling Plan
o Sampling unit o Who is to be surveyed? Students and corporate professionals o Sample size o How many people should be surveyed?
120 samples

o Sampling procedure o How should the respondents be chosen? Targeting youth

Sampling Techniques

Probability Sample
Simple Random sample
Stratified Random sample Cluster (area) sample

Non-probability Sample
Convenience sample

Judgment sample
Quota sample

Data Collection

Research carried out by Telephone research firm. Questionnaires ,survey , checklist. Case study. Focus Groups.

CONTACT METHODS:
Mail Questionnaire Telephone Interview Personal Interview Online Interview

Collect The Information

Data collection methods are broadly classified into two categories:

Primary Data Secondary Data

Primary Data

There are various ways in which a market research can be conducted like:

1.Interview Method: Depth Interview Mail interview Telephone Interview

2.Delphi Technique
3.Projective Technique

Primary Data (Contd.)

4. Questionnaire Method:
Structured Semi-Structured Unstructured

5. Case study. 6. Focus Groups. Advantages of Interview Method:

Accurate Information Ease in communication Additional Information, if needed

Disadvantages:

Cost Difficulty in Sample control

Primary Data (Contd.)

Advantages of Focus Group Interview It provides complex and varied data It saves time and cost

Disadvantages: Difficulty in sample selection Samples are necessarily very small Responses may be inferred by what others have to say.

Problems

Respondent not available for survey.

Refusal to cooperate by the respondent. Biased or dishonest respondent. Finally ,some interviewers may be biased or dishonest. One of the major obstacles in collecting information globally is to achieve consistency in information collected.

Secondary Data

Types of Secondary Data:

Internal Sources External Sources

Advantages of Secondary Data:

Economical Can be used for comparison with Primary Data

Disadvantages:
Time consuming Process Accuracy and reliability depends on the source It might not be updated data.

Major problems

Respondents not available for survey.

Refusal to cooperate by the respondents.

Biased or dishonest respondents. Some interviewers may be biased or dishonest.

Analyze the information

Test of significance Objective The three step process to determine which method to be chosen Methods Four step general procedures followed when applying statistical tests of significance

Analyze the information (contd.)

Explaining observed differences Objectives methods

Analyze the information(contd)

Identifying interdependencies Objective methods

Respondents by their profession

Mobile Service Provider Break-up

3 9 6 31 airtel vodafone aircel idea 22 4 7 reliance BSNL others

VAS Services break-up

Frequency of usage of VAS Services

Willingness in terms of expenditure on monthly basis

2.40% 8.50% 23.20%

less than Rs.10

Rs.10 to Rs.100 Rs.100 to Rs.200 More than Rs.200 65.90%

Change in response due to 3G services

Satisfaction level with the current provider

PLOT OF THE PENETRATION (%) VS CATEGORY WISE SERVICES

ANNUAL VAS REVENUES (Rs. Cr.) BY CATEGORY OF VAS SERVICES(2008)

400 350 300 250 200 150 100 50 0

ANALYSIS KEY POINTS

Idea and Airtel are the most popular service providers among the respondents. News and IM chat services are popular, but other VAS services are less popular. The survey clearly indicates that 10% of the sample doesn't use vas services at all, and 36%rarely use vas services With the advent of 3g the sample population clearly shows an affinity to increase their vas usage. The secondary source shows that sms in all its forms (p2psms,a2p sms,p2a sms is the biggest revenue generator after VAS.

ANALYSIS KEY POINTS

Idea and Airtel are the most popular service providers among the respondents. Music (CRBT, Ringtones) is the bedrock of the VAS Industry accounting for over 50% of non-Voice/SMS revenues but have a very low penetration rate . Voice Portals are the other big revenue generator, as they are the gateway to a wide variety of content

Present the Findings

Present the research findings in understandable and compelling fashion Present findings relevant to the major marketing decisions facing management

Make the Decision

Seven Characteristics of Good Marketing Research
Scientific method Research creativity

Multiple methods
Interdependence of models and data Value and Cost of Information Healthy skepticism Ethical marketing

Focus on movies & music SMS contests Focus on youth and entertainment Enhance WAP market Exploring the rural telecom opportunity Rural Sector : Tapping Farmers Acquiring new subscribers by expanding in Semi Urban and Rural India Selling more services to existing subscribers Discovering/innovating killer applications like CRBT (Caller Ring Back Tone) at regular intervals Pre-loading of applications by handset OEMs VAS branding , advertising and marketing

3D mobile games Improved technology Rural segment : Agriculture-related information Deploy content in local language Reducing cost of VAS Low cost handsets

A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences