Table of Contents

Chapter 1
1.1 Executive Summary...........................................................................5
1.2 Introduction.......................................................................................7
1.3 Objective...........................................................................................8
1.4 Research Methodology .....................................................................9
1.5 Limitations of the project.................................................................10

Chapter 2
2.1 Telecom Industry in India.................................................................11
2.2 Evolution Of Indian
Economy……………………………………………………………………………………….14

2.3 Company Profile..............................................................................18

2.4 Organization Structure.....................................................................28
2.5 Market Scenario ..............................................................................32

Chapter 3
3.1 Theoretical Background....................................................................36
3.2 Data Analysis & Interpretation.........................................................39
Chapter 4
4.1 Findings............................................................................................45
4.2 Recommendations............................................................................47
4.3 Conclusion........................................................................................48
Bibliography.........................................................................................49
Annexure .............................................................................................50

1
1.1 Executive Summary

This project is about new product development by Matrix Cellular International Services
Pvt. Ltd. Matrix Cellular offers complete telecommunication solutions for Indian
travellers going abroad. Services include international SIM card and 3G data cards.
Matrix introduced the concept of local connectivity in India, by offering country-specific
international SIM cards.

The International SIM cards offered by Matrix Cellular are basically a post paid
connection i.e. you can use the card now but make the payment for it once you are back
from the trip; now Matrix Cellular is in the process of launching a new product in the
market which is a ‘Prepaid International SIM Card’.

For this purpose we first had conducted SWOT analysis of the company to find out about
its Strength, Weakness, Opportunities and Threats. Then we explained the purpose,
benefits and objectives of the product. After getting a good understanding about the
company a market survey was conducted to find out whether this new product would be a
success or a failure. The respondents for the survey were shortlisted depending on the
requirement of the company.

After completing the data collection from the survey it was analysed and it showed that
the product would work in the market. There is a lot of potential channel partners to be
tapped on, which would not only help in selling pre-paid cards but also post-paid which is
beneficial for the company in the long run.

For creating awareness in the market Matrix Cellular International Services should do
advertisement in print and electronic media. It should also provide banners and posters to
its prospective channel partners.

Now about the distribution system, it should first launch in cities like Ahmadabad, Orissa
where there are not much sales because even if it gets a poor response because it does not
affect its brand name in the major cities. In a particular city there should be four main
2
distributors who should supply the cards to the retailers and also care should be taken that
in a particular area there should not be many retailers selling the pre-paid card as they
might cut their commission to generate more sales which might have a negative impact
on the company.

3
Introduction To The Project

Matrix Cellular Services International Pvt. Ltd. introduced the concept of local
connectivity in India, by offering country-specific international SIM cards. The
international SIM cards given to the customers are post-paid cards in which they need to
pay a security deposit of Rs.5000 and they are charged the bill amount once they are
back from the trip. Now the company is planning to launch a pre-paid SIM card in
which there would be no security deposit. Documentation required for a post paid card
is a passport copy, visa copy, credit card copy and a photograph but in the case of pre-
paid card the customer just needs to provide a copy of passport. SIM cards offered to
customers are country-specific international cards but the pre-paid cards would be a
global SIM card with incoming free in about 50% of the country.

The main objective of the project is to find out that if such kind of a pre-paid product
would be launched in the market what would be the market response and whether it
would be a success or failure. For that purpose a market survey was conducted with a
sample size of 75 respondents. After the data collection findings were made and
recommendations were given.

4
Objectives

Matrix Cellular Services is into the business of country specific international post-paid
SIM cards. Now the company is planning to launch a global pre-paid card so the primary
objective of the project was to find out the potential about this new product. The
company is interested in knowing what would be the response of the market if such a
card would be launched i.e. whether the card would be a success or a failure.

There are also many other secondary objectives like:

• To design a distribution strategy for the product i.e. in which areas should
the product be launched
• What advertising should be done to create awareness?
• What would be the reaction of the telecom retailers?
• Would they be interested in stocking in such kind of a product and in
what quantity?
• What kind of promotional materials should be provided to the distributors
who are stocking the SIM cards?

5
Methodology

The objective of this project was to understand the potential of a Prepaid International
SIM card if it were to be launched in the market. Along with that I was also interested in
getting a response from our prospective sellers i.e. the Telecom partners as they are ones
who are in touch with the end users.

I decided to get some internal secondary data as it might aid the project and also I wanted
to get complete understanding of the business. I also searched the internet to get external
secondary data to check if any of the competitors has already launched a similar kind of a
product.

After gathering the required secondary information the next step was to finalise the way
in which primary data had to be collected. While there are many ways to perform market
research, most businesses use one or more of five basic methods: surveys, focus groups,
personal interviews, observation, and field trials. The type of data you need and how
much money you’re willing to spend will determine which techniques you choose for
your business.

I decided to use the Survey method for my research purpose. With concise and
straightforward questionnaires, you can analyze a sample group that represents your
target market. The larger the sample, the more reliable your results will be.

Once the survey method was selected the next logical step was to prepare a questionnaire.
I was instructed by my industrial guide to keep the questionnaire short, simple and
concise as most of the respondents might not be so fluent with the language and they

6
might misinterpret. Most of the question was open ended ones as it makes it easier to get
the response. The target respondents were broadly classified into four groups: telecom
retailers, travel agents, forex agents and others.

I then started with my fieldwork to collect the data from the target respondents. I had a
sample size of around 50 so had to shortlist the respondents accordingly. Once I was done
with the fieldwork the next step was data analysis. Data analysis is needed to give the raw
data a meaning. The first step in analyzing the data is cleaning the data. This is the
process of checking the raw data to verify that the data has been correctly entered into the
files from the data collection form.

After analyzing the data I made my findings based on this data. The findings about the
target market, competition and environment. The findings were then presented in an
organized manner to the decision makers of the business. In summary, the resulting data
was created to help guide the business decisions, so it is readily accessible to the decision
makers.

Sample Size

A in person market survey with a sample size of 75. The respondent included telecom
retailers, travel agents and department stores because these are the retailers who are in
direct contact with the customers.

Limitation Of The Report

This report is based on the two months work done at Time Matrix Cellular Services
Pvt. Ltd. The period in consideration is less. The sample size in consideration for the
analysis is also less.

More work needs to be carried in this field on a regular basis to get accurate results.

7
Introduction To The Industry

.Telecom Industry In India

The Indian telecommunications market has been displaying sustained high growth rates.
Riding on expectations of overall high economic growth and consequent rising income
levels, it offers an unprecedented opportunity for foreign investment. A combination of
factors is driving growth in the telecom market, promising rich returns on investments.

Over the past 10 years, India has registered the fastest growth among major democracies,
having grown at over 7 per cent in four years during the 1990s. It represents the fourth
largest economy in terms of Purchasing Power Parity. According to a recent Goldman
Sachs report, over the next fifty years, Brazil, Russia, India and China - the BRIC
economies- could become a much larger force in the world economy. It reports, “India
could emerge as the world’s third largest economy and of these four countries; India has
the potential to show the fastest growth over the next 30 to 50 years”. The report also
states that, “Rising incomes may also see these economies move through the ‘sweet spot’
of growth for different kinds of products, as local spending patterns change. This could
be an important determinant of demand and pricing patterns for a range of commodities”.
The share of the services sector as a percentage of total GDP is also predicted to rise from
the current 46 per cent to about 60 per cent by 2020. The boom in the services sector is
slated to come from India, emerging as a chosen destination for software and other IT
enabled services, tourism etc. According to a Nasscom- McKinsey & Co. Study, by 2008,
the Indian IT software and services sector will account for US$ 70-80 billion in revenues;
it’ll employ 4 million people, and account for 7 per cent of India’s GDP and 30 per cent
of India’s foreign exchange inflows.

8
Population projections from the Planning Commission of India suggest that the share of
the working age population (15-64 years) in total population will grow from the current
59 per cent to about 65 per cent, translating into 882 million by year 2020.According to
the Vision 2020 document for the Planning Commission of India, the country will
witness continued urbanisation. The urban population is expected to rise from 28 per cent
to 40 per cent of total population by 2020.Future growth is likely to be concentrated in
and around 60 to 70 large cities, each having a population of one million or more. This
profile of concentrated urban population will facilitate customised telecom offerings from
operators. Over the years, spending power has steadily increased in India. Between 1995
and 2002, nearly 100 million people became part of the consuming and rich classes. Over
the next five years, 180 million people are expected to move into the consuming and very
rich classes.

On an average, 30-40 million people are joining the middle class every year,
representing huge consumption spending in terms of the demand for mobile phones,
televisions, scooters, cars, credit goods and a consumption pattern associated with rising
incomes.

9
Evolution of the Indian telecom industry

Until the 1980s, the Department of Posts and Telegraphs (under the Ministry of the same
name) had the mandate of regulating and offering telecommunications services. It was
governed by the Indian Telegraph Act 1885 and the Wireless Act of 1933. In 1985, the
Department of Posts and Telegraph was split up into the Department of
Telecommunications (DoT) and the Department of Posts. The DoT was established as the
state operator, regulator and licensor. It was only in October 1999 that the activities of the
operator and licensor were somewhat separated, by the creation of the Department of
Telecommunications Services (DTS). This separation, however, was a largely artificial
one.

Although the DoT had been charged with operating telecommunications services, its
efforts were seen as insufficient. Initial steps towards corporatisation saw the creation of
Mahanagar Telephone Nigam Limited (MTNL), which started offering basic fixed
services in Mumbai and Delhi in 1987. MTNL still holds a monopoly in those cities,
where DoT/DTS is not present at the local level. MTNL is wholly owned by the
Government of India and the DoT. Videsh Sanchar Nigam Limited (VSNL) was set up in
1986 as the monopoly operator for international gateway services.

On May 13, 1994, the government opened local basic and value-added
telecommunications services to competition.

Mobile services were introduced on a commercial basis in November 1994. India was
thus divided into 21 "Telecom Circles". Circles correspond approximately to

10
states and are categorized as either "A", "B" or "C" according to size and importance.
Category A includes the heaviest volume areas such as Delhi, Uttar Pradesh,
Maharashtra, Gujarat, Andhra, Karnataka and Tamil Nadu. Licenses for mobile services
were also issued for the four metros (Delhi, Mumbai, Chennai, Calcutta). As part of the
license conditions, traffic could be routed to VSNL's international gateway only by
passing through DoT/DTS's network. In 1986, the Telecom Commission was set up with
the mandate to accelerate the deployment of telecommunications services and to
implement new telecommunication policy.

A bill passed in 1995 envisaged the creation of an independent and autonomous agency
for the regulation of telecommunications, the Telecommunications Regulatory Authority
of India (TRAI). Set up in 1997, the TRAI is responsible facilitating interconnection and
technical interconnectivity between operators, regulating revenue sharing, ensuring
compliance with license conditions, facilitating competition and settling disputes between
service providers. The TRAI cannot grant or renew licenses and this remains the DoT's
responsibility. The TRAI may also set the rates for telecommunications services. Its
decisions can only be challenged by the High Courts or Supreme Courts of India.

11
INDIAN ECONOMY AN OVERVIEW

INTRODUCTION

India has been one of the best performers in the world economy in recent years, but
rapidly rising inflation and the complexities of running the world’s biggest Challenge.

12
India’s economy has been one of the stars of global economics in recent years, growing
9.2% in 2007 and 9.6% in 2006. Growth had been supported by markets reforms, huge
inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a
flourishing capital market.

Like most of the world, however, India is facing testing economic times in 2008. The
Reserve Bank of India had set an inflation target of 4%, but by the middle of the year it
was running at 11%, the highest level seen for a decade. The rising costs of oil, food and
the resources needed for India’s construction boom are all playing part.

India has to compete ever harder in the energy market place in particular and has not been
as adept at securing new fossil fuel sources as the Chinese. The Indian Government is
looking at alternatives, and has signed a wide-ranging nuclear treaty with the US, in part
to gain access to nuclear power plant technology that can reduce its oil thirst. This has
proved contentious though, leading to leftist members of the ruling coalition. .

As part of the fight against inflation a tighter monetary policy is expected, but this will
help slow the growth of the Indian economy still further, as domestic demand will be
dampened. External demand is also slowing, further adding to the downside risks.

The Indian stock market has fallen more than 40% in six months from its January 2008
high. $6b of foreign funds have flowed out of the country in that period, reacting both to
slowing economic growth and perceptions that the market was over-valued.

It is not all doom and gloom, however. A growing number of investors feel that the
market may now be undervalued and are seeing this as a buying opportunity. If their
optimism about the long term health of the Indian economy is correct, then this will be a
needed correction rather than a downtrend.

The Indian government certainly hopes that is the case. It views investment in the
creaking infrastructure of the country as being a key requirement, and has ear-marked
23.8 trillion rupees, approximately $559 billion, for infrastructure upgrades during the
11th five year plan. It expects to fund 70% of project costs, with the other 30% being
supplied by the private sector. Ports, airports, roads and railways are all seen as vital for
the Indian Economy and have been targeted for investment.

Further hope comes from the confidence of India’s home bred companies. As well as
taking over the domestic reins, where they now account for most of the economic

13
activity, they are also increasingly expanding abroad. India has contributed more new
members to the Forbes Global 2000 than any other country in the last four years.

ECONOMIC GROWTH

GDP growth rate from 1998 to 2008

India’s Economy has grown by more than 9% for three years running, and has seen a
decade of 7%+ growth. This has reduced poverty by 10%, but with 60% of India’s 1.1
billion population living off agriculture and with droughts and floods increasing, poverty.

14
The structural transformation that has been adopted by the national government in recent
times has reduced growth constraints and contributed greatly to the overall growth and
prosperity of the country. However there are still major issues around federal vs state
bureaucracy, corruption and tariffs that require addressing. India’s public debt is 58% of
GDP according to the CIA World Fact book.

During this period of stable growth, the performance of the Indian service sector has been
particularly significant. The growth rate of the service sector was 11.18% in 2007 and
now contributes 53% of GDP. The industrial sector grew 10.63% in the same period and
is now 29% of GDP. Agriculture is 17% of the Indian economy.

Growth in the manufacturing sector has also complemented the country’s excellent
growth momentum. The growth rate of the manufacturing sector rose steadily from
8.98% in 2005, to 12% in 2006. The storage and communication sector also registered a
significant growth rate of 16.64% in the same year.

Additional factors that have contributed to this robust environment are sustained in
investment and high savings rates. As far as the percentage of gross capital formation in
GDP is concerned, there has been a significant rise from 22.8% in the fiscal year 2001, to
35.9% in the fiscal year 2006. Further, the gross rate of savings as a proportion to GDP
registered solid growth from 23.5% to 34.8% for the same period.

15
Introduction To The Company

Matrix Cellular International Services Pvt. Ltd.

Started in 1995, Matrix Cellular Services is a Delhi-based company providing complete

telecommunication solutions for Indian travellers going abroad. Our services include
international SIM cards, 3G data cards and wireless communication for use in India and
abroad. Our vision and effort to connect the Indian outbound traveller – individuals,
students and corporate - with a convenient, cost-effective mobile and data service have
enabled us to become the undisputed market leader.

Matrix introduced the concept of local connectivity in India, by offering country-specific

international SIM cards. We ensure that you stay in touch without paying huge mobile
bills. Moreover, since the cellular phone/data connections are local to the country you are
travelling to, you enjoy better coverage and connectivity.

We offer destination-specific SIM cards for Argentina, Australia, Austria, Belgium,

Brazil, Canada, China, France, Germany, Greece, Hong Kong, Holland, Italy, Japan,
Malaysia, Mauritius, Mexico, New Zealand, Singapore, South Africa, South Korea,
Spain, Switzerland, Sri Lanka, Taiwan, Thailand, U.A.E., U.S.A. and U.K.

Since inception, we have aimed to be the best in service, quality, innovation and choice.
Even today, we are dedicated to the same. We are also constantly increasing our portfolio
of countries and focusing on unique communication solutions. This way you stay

16
 connected wherever you are and that too, without being concerned by exorbitant
international roaming expenses.

Corporate Overview

• By 2008, pan-India presence – we became one of the largest telecom service

providers
• 24 offices (19 India & 5 overseas) and growing exponentially
• Worldwide telecommunication solutions - mobile & wireless services;
national/international clients, individuals and corporate
• Nationwide network, over 1000 professionals in all areas of sales, marketing,
customer service, operations and logistics
EMPLOYEES
• 2007 – Turnover Rs 100 crores
GUIDING PRINCIPLES
CUSTOMERS We will strive to hire and
• Partnerships
To attain leadership in with over 34 country specific international service
retain providers
the most qualified
developing, adopting and To focus on customer delight people available and
• 1,25,000 customers and corporate houses
assimilating latest through value of products and maximize their opportunities
communications•technology
Mission And Values
services, and cost reduction. for success through training
for a competitive advantage. and development.
We anticipate change and
respond with creative Success depends on our
solutions. ability to consistently satisfy We are committed to open
ever-changing customer communication, trust and fair
preferences. treatment.

To cultivate high standards of We encourage collaboration

business ethics, organizational
values and total quality
management for a strong
corporate identity and brand
equity.
with leading companies and
build and nurture long-
standing, mutually beneficial
relationships.
We shall make people a
source of our improvement.
17
Our “can do” spirit delivers
top performance.
Matrix Mission

• To attain leadership in developing, adopting & assimilating latest communications

technology for a competitive advantage. We anticipate change & respond with
creative solutions.
• To cultivate high standard of business ethics, organizational values & TQM for a
strong corporate identity & brand equity

Company background

The company started its operations in the year 1995 by offering short term mobile phone
service across New Delhi. With the experience of these past several years, the company
has emerged to become the market leader in cellular phone rentals in India enabling
individuals, corporate and foreign clients of all sizes to communicate wherever there is
cellular phone network. Today, it proudly claims to offer the best in mobile services in
India as well as overseas.

Since inception, the company aimed to be the best in service, quality, innovation and
choice. Matrix was the first to introduce the concept of local connectivity by offering
country specific mobile connections.

Customers gain a lot by using Matrix sim cards primarily because:

• Global roaming charges are exorbitant

• Customer has to bear the ISD charges for all the calls that they receive

18
 • It may not be possible for the customers to inform their contact persons that they
are traveling out of country. In effect, they end up receiving many unwanted
chargeable calls.

Matrix provides country specific mobile connections that help save almost 60% of the
international roaming charges at the same time providing all the services of the network
of that country. The company also gives the facility of paying in Indian rupees. This
helps in saving the hassle of procuring a mobile connection on arrival in that country and
spending valuable foreign exchange while clearing the mobile bills.

Domestic Mobile Solutions:

• SIM cards and telecom solutions in association with Vodafone

• 24×7 accessible customer care

• Sound Backend Operation Support

19
Radiocom (wireless) power through Matrix: Walkie-talkie sets for Delhi and NCR

YBO: Established in 2004 with offices in UK and US. A specialist offshore company,
providing a full range of financial accounting services.

Tamarinde: We deliver the most exceptional Indian Holiday Experience.

U Kaur: Established in 1999, with a vision of creating unique designs in ethnic wear and
home furnishing and supply the same to leading fashion stores.

Signature talent: Recruitment Consultancy established in 2007.

Alliance Partner

• SOTC

• JET AIRWAYS

• BRITISH AIRWAYS

Matrix has alliance relationships with leading companies like SOTC, Jet Airways,
British Airways, Qantas, Citibank, American Express, Deutsche Bank, StanChart Bank,
DHL amongst others. Some of the special offers are:

 Deutsche Bank Platinum credit card

20
  HDFC Titanium credit cards
 Jet Airways
 British Airways
 Citibank Ultima credit card
 Citibank Platinum credit card
 Stan Chart Platinum card

Matrix has student offers too:

 Qantas Airways

 Amex Travelers Cheques

 DHL

 Centurion bank of Punjab

Esteemed Clients of Matrix

Embassies and High Commissions:

• US Embassy

• British High Commission

• German Embassy, etc.

21
 Banks:

• American Express

• Citibank, etc.

Media:

• BBC

• CNN

• NDTV

• Times of India, etc.

Corporate Houses:

• Reliance Industries

• Hero Honda

• Ranbaxy

• TATA Motors, etc.

Celebrities:

• Shahrukh Khan

22
 • Amir khan

• Hrithik Roshan & Family

• Bachchan Family, etc.

Travel Fraternity:

• British Airways

• Jet Airways

The Matrix Advantage

A customer-oriented company understanding problems faced by international travelers

• Upto 70% saving on International Roaming Bills:

A country specific mobile number from Matrix is chargeable at applicable local

rates, free incoming calls in most countries, free minutes of talk time, without any
connection charges.

• Technologically superior company

Matrix connects with the biggest international networks – AT&T, NTT,

DOCOMO, Vodafone, etc.

• Seamless connectivity, including Japan and South Korea

International roaming numbers do not work in all countries. Patchy coverage and
call drops are complaints. Using local cellular numbers means seamless
connectivity and no patchy coverage.

23
• Instant Activation and delivery anywhere in India

The mobile phone is activated even before the traveller leaves India and the SIM
delivered at the office or home of the customer.

• Billing in Indian Rupees

 Saves foreign exchange

 Payment through credit card

 Itemized bills given

• Separate International number

The customer has the freedom of giving the number to a few important people and
screening unwanted calls, thereby considerable saving on phone bills.

24
Organization Structure at Matrix

25
Matrix Cellular at Mumbai

The Mumbai branch is one of the highly active and productive branches of Matrix
Cellular. Though the company is around 13 years old, the Mumbai branch was set up
only in the year 2004 making it the youngest branch. The young and enthusiastic staff
force makes it all the more vibrant.

Situated in the heart of Mumbai, Matrix Mumbai has the advantage of acquiring a wide
talent pool. Students from the adjoining areas aspiring to make a career in the dream city
find a good opportunity with a company like Matrix Cellular.

Working with Matrix Cellular is an experience one would not like to miss. The work
culture is friendly, welcoming and encourages innovations. Employees can explore their
capabilities, be creative, and think out of the box. Since the company itself is in a
tremendous growth stage, it provides the employees with a challenging, exciting and fast
moving atmosphere.

The 100 odd staff strength includes mainly sales executives, sales co-ordination
executives, accounts department and other office staff. Though the HR department
constitutes a very small percentage of the total employee strength, it serves as a
tremendous force in the overall administrative efficiency.

26
27
28
29
MARKET SCENARIO
MAJOR PLAYER

MATRIX:

• March 1995, Matrix came into existence.

• India’s 1st company to venture into such a niche segment “Country specific Sim
card”.

• By 2007 Pan India presence.

UNICONNECT:

• Started in October 1996

• 2nd company to venture in this market segment.

• UNICONNECT was established in 1983 as an investment vehicle, however, it

eventually moved into the emerging telecom sector

CLAY TELECOM:

• 1st April 2000 Clay telecom was setup.

• Incepted nearly a decade ago, Clay Telecom is a dynamic global provider of

wireless telecom solutions - catering to both B2B and B2C market segments

RELIANCE COMMUNICATIONS:

• 27 December 2002, Reliance infocomm inaugurated.

• June 2008 Reliance touched 50 million mark.

• Launched its Country specific sim cards business a year ago in the name of
“RELIANCE PASSPORT SERVICE “

30
BHARTI AIRTEL LTD:
• Ranked number#1 today in Indian mobile market.

• April 2006 Bharti global limited was awarded a telecommunications license in

Jersey in the channel Island.

• Launched its Country specific sim cards business a year ago in the name of
“AIRTEL WORLD “

• Started only in Delhi & NCR regions.

MARKET SHARES OF COUNTRY SPECIFIC SIM CARDS

MATRIX limited leads the Indian telecom space for country specific sim
cards. The nationwide network of Matrix currently spreads across 24 offices
(19 India & 5 overseas) and growing exponentially, with a present turnover of
100 crores.We leverage our physical network to add value to our portfolio of
partnerships with various country specific international service providers of
more than 32 countries across the world and this is further enhanced by a
virtual network – due to our database of more than 1,25,000 customers and
corporate houses. The organization has inherent knowledge pertaining to
telecommunication business in India. This we consider as our prime
competitive advantage.

Matrix has been successful in retaining its position of leadership. It has the
largest market share in the Country Specific Sim Cards segment.

31
Market Share in country specific sim cards

Source – Telecom Watch – Jan 2010 edition

SWOT Analysis:

SWOT Analysis for my company is as follows:

Strengths:

1. Our company is 15 year old in this field, it means 15 year of excellence.

2. Company has more than 15 branches in 15 different cities means more reach to its
clients.
3. First company to launch Country specific Sim cards and data cards and pioneer in
International Sim cards business.

32
 4. Company has 95 % market share in this business in other words they are the
market leader.
5. Company deals in the specific segments of business(based on HNI clients
handling)

Weaknesses:

1. Future market is unpredictable.

2. High volatility in market so fast changes are requires.
3. Lack of corporate Governance
4. Lack of proper media Plan for spreading Awareness in the company.

Opportunities:

1. More liberalization is in govt. pipeline so better chances to grow.

2. Mergers and Acquisition is possible as Indian telecom market is moving.
3. Proper catering the telecom Requirement for every segment in the market.
4. Doing business with the students segment who is going abroad for higher studies
with proper discounts and facilities.
5. Mobilize work force in different dimension to excel.

Threats:

1. Market is Unpredictable.
2. Upcoming companies like UNI connect, WOW, Relaince Passport.
3. Changes in Government Policy.
4. Bad impact on Airlines business due to volatile market condition.

33
Introduction to the Subject

Marketing Research

Marketing research is the systematic gathering, recording, and analysis of data about
issues relating to marketing products and services. The term is commonly interchanged
with market research; however, expert practitioners may wish to draw a distinction, in
that market research is concerned specifically with markets, while marketing research is
concerned specifically about marketing processes.

Marketing research is often partitioned into two sets of categorical pairs, either by target
market:

• Consumer marketing research, and

34
 • Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

• Qualitative marketing research, and

• Quantitative marketing research

Consumer marketing research is a form of applied sociology that concentrates on

understanding the preferences, attitudes, and behaviours of consumers in a market-based
economy, and it aims to understand the effects and comparative success of marketing
campaigns. The field of consumer marketing research as a statistical science was
pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.

Thus, marketing research may also be described as the systematic and objective
identification, collection, analysis, and dissemination of information for the purpose of
assisting management in decision making related to the identification and solution of
problems and opportunities in marketing.[3] The goal of marketing research is to identify
and assess how changing elements of the marketing mix impacts customer behaviour

Marketing research methods

Methodologically, marketing research uses the following types of research designs:

Based on questioning:

• Qualitative marketing research - generally used for exploratory purposes -

small number of respondents - not generalizable to the whole population -
statistical significance and confidence not calculated - examples include focus
groups, in-depth interviews, and projective techniques
• Quantitative marketing research - generally used to draw conclusions - tests a
specific hypothesis - uses random sampling techniques so as to infer from the
sample to the population - involves a large number of respondents - examples

35
 include surveys and questionnaires. Techniques include choice modelling,
maximum difference preference scaling, and covariance analysis.

Based on observations:

• Ethnographic studies -, by nature qualitative, the researcher observes social

phenomena in their natural setting - observations can occur cross-sectionally
(observations made at one time) or longitudinally (observations occur over
several time-periods) - examples include product-use analysis and computer
cookie traces. See also Ethnography and Observational techniques.
• Experimental techniques -, by nature quantitative, the researcher creates a quasi-
artificial environment to try to control spurious factors, then manipulates at least
one of the variables - examples include purchase laboratories and test markets

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3.2) ANALYSIS

1) Type of outlet

a) Telecom c) Departmental

b) Travel Agents d) Others

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Total number of respondents were 75 from that a very high proportion of the about 70%
were telecom retailers as they are the primary channel partners who stock SIM cards.
About 15% were travel agents as they are in close contact with the people going abroad,
around 10% is others who include mobile handsets dealers etc and finally the a very
small portion of 5% were departmental stores who also stock SIM cards.

2) Do you currently sell any kind of international SIM card ?

a ) Yes b) No

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A very high percentage of the respondents about 85-90% did not sell any international
SIM card; this shows that Matrix Cellular International Services has a very high number
of prospective channel partners to target who would be selling their pre-paid SIM card.
The few who were selling International SIM cards were the ones who used to provide
leads to Matrix for conversion so with the launch of the cards they can directly sell the
cards and earn.

3) Do customers ask for any specific company international SIM card?

This was an open ended to check if customers were interested in any particular
company SIM cards but since most of the respondents did not stock any international
SIM cards because they did not get much enquiry about the same I did not get many
response for the question however if anyone asked for a specific card it was of Matrix
which shows that the company had good top of the mind awareness.

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4) Would you stock anew prepaid product with MRP of 1600 Rs, talk time of 600
Rs inbuilt and a retail margin of 350 Rs?

Around 70-75% of the respondents were interested in stocking the card as the
commission offered was good and also most of them were happy with the features of the
product. I had also covered few mobile handsets retailers who did not stock any SIM
cards but after understanding about the product even they were interested in stocking the
card which is a very good sign for the product.

5) How many would you stock and how many would you sell?

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Most of respondents who wanted to stock this new product were interested in going with
a smaller numbers as they were not sure about the kind of demand which would be
created with its launch. This also gives us information about how should the company go
on with the distribution.

6) What kind of promotional activity should the company do before launching the
card?

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This was also an open ended question in which no option were given to check what the
retailers would suggest. Most them said about advertisement in electronic and print media
with some very interesting answers

Also I asked them about “what kind of promotional material should be provided to them”
so that customers would know that they offered such cards. For this most of them said
that they should be provided with banners, posters, hoardings, standings.

Apart from these questions I also asked them whether this product would be a success in
the market if it were to be launched irrespective of them stocking it or not.

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Most of the reply where positive as they felt that such a product would work in the
market which is a good sign for the company.

4.1) FINDING FROM THE SURVEY

 Telecom retailers should be the primary target for channel partners as these
people are already know about the industry and so would be in a better position to
sell.
 Travel agents should be targeted as they would prove beneficial in the long run
not only for pre-paid product but also the post paid card which generates better
revenue.
 Most of the respondents don’t actually sell any international SIM cards which
show that there is lot of prospective channel partners.
 Very few customers are asking for specific company cards which shows that there
is a lack brand awareness.

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  Retailers seem quite satisfied with the pricing and the commission so the card can
be launched with that cost.
 Most of the retailers are quite sceptical about this new product so don’t want to
stock in large numbers initially.
 The company should do advertisement in electronic and print media to create
awareness about the product.
 The market is quite favourable for such kind of a card.

4.2)CONCLUSION

Matrix Cellular International Services Pvt. Ltd is a market leader and if it were to launch
a pre-paid SIM card then as the findings suggest it has lot of potential and would be
successful in the market. The most standout feature of the product is its incoming free
facility in around 50% of the coverage country and should be positioned on it. There is
also a great potential of getting many channel partners who would help the company to
grow not only with the prepaid card but also with its post paid connection. The pre-paid
card also has less documentation and no security deposit which also help to attract those
clients who don’t want to spend on security deposit and also the concept of having the
personal number creates a sense of security for the customers. So basically this pre-paid
card is for the masses and post paid is for the classes.

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4.3)RECOMMENDATIONS

 Try and make more and more channel partners as they would increase the sales.

 Concentrate more on the Telecom retailers as they understand the industry.

 Travel agents should not the neglected as they also offer huge potential for not
only pre-paid but also post paid. They should be encouraged the sell the pre-paid
cards bundled with other products like insurance etc.

 Advertisement should be done on consistent basis to create more awareness in the

market.

 To keep in regular touch with existing customers.

 Update existing customers with our progress and new products.

 Matrix is a market leader and so it should do a frontal attack on the existing

markets.

 Pre-paid SIM cards should

 Pre-paid card would also eat up on the market share of post-paid connection so
care should be taken that it does not become cause of concern.

 The card should be launched in smaller cities like Orissa etc so that if the product
does not fair well it does not affect its brand name in bigger cities.

 Every city must have four main distributors who should be able to take care of the
needs of the retailers.

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BIBLIOGRAPHY

1. Marketing Management – Philip Kotler

2. Competitive Strategy – Michael Porter

3.Research Methodology- kothari

3. Company Website (www.matrix.in)

4. www.google.com

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Survey On Communication Usage Of Out Bound Travellers

1) Type of outlet

a) Telecom c) Departmental

b) Travel Agents d) Others

2) Do you currently sell any kind of international sim card ?

a ) Yes b) No

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3) Do customers ask for any specific company international SIM card?

4) Would you stock anew prepaid product with MRP of 1600 Rs, talk time of 600 Rs
inbuilt and a retail margin of 350 Rs?

5) How many would you stock and how many would you sell?

6) What kind of promotional activity should the company do before launching the card?

Retailer/Agent Name:

Contact Number:

Location:

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