Project Report

On
“Study of consumer behavior and
attitude towards the cellular services
with reference to AIRCEL

SUPERVISOR: SUBMITTED BY:

Mrs. GAYATRI CHOPRA SANDEEP SINGH
FACULTY, FMS Enrolment no:
08061237006
MBA 4th semester (Finance)

SESSION 2009-11
DIRECTORATE OF DISTANCE EDUCATION
FACULTY OF MANAGEMENT STUDIES
NEWDELHI

1
Table of Contents

Content Page
1: INTRODUCTION 1–3

2: REVIEW OF LITERATURE 4–
6

3: PROBLEM STATEMENT & OBJECTIVES 7–

9

4: NEED & SIGNIFICANCE OF STUDY 10 -

11

5: SCOPE OF STUDY 12 - 13

6: INDUSTRY PROFILE 14 –
27

6. 1. Mobile Industry in India

6. 2. Industry Analysis

6. 3. Pestle Analysis

6. 3. 1. Political

6. 3. 2. Economic

6. 3. 3. Social Culture

6. 3. 4. Technology

6. 3. 5. Environmental

7: COMPANY PROFILE 28 -
36

2
 7.1. Firms marketing efforts

7. 1. 1. Product

7. 1. 2. Price

7. 1. 3. Promotion

8: MAJOR COMPETITORS 37 – 50

8. 1. AIRTEL

8. 2. IDEA

8. 3. BSNL

8. 4. VODAFONE

8. 5. RELIANCE

9: METHODOLOGY 51 - 56

9.1. Sampling Size

9.2. Collect the Data

10 : QUESTIONNAIRE 57 - 64

10.1. Customer Questionnaire

10.2. Retailer Questionnaire

11 : Data Analysis & Interpretation

65 – 79

11.1. Customer Questionnaire

11.2. Retailer Questionnaire

12 : Recommendation 80 - 83

13 : Conclusion 84 - 85

14 : Limitation 86 -
87

3
15 : REFRENCE 88 - 89

CERTIFICATE
This is to certify that Mr. SANDEEP SINGH, Enrolment
number- 08061237006 has proceeded under by supervision
his research Project Report on “Study of Consumer
attitude and behavior towards cellular services with
Reference to Aircel in the specialization area “FINANCE”.

The work embodied in this report is original and is of the

standard expected of an MBA student and has not been
submitted in part or full to this or any other university for the
award of any degree or diploma. He has completed all
requirements of guidelines for the Research project report
and the work is fit for evaluation.

Signature of the Guide

Name: Mrs. GAYATRI CHOPRA

Designation: Lecturer

Organization: FACULTY OF MANAGEMENT STUDIES

Forwarded by head/director of study

centre (with signature name and
seal)

4
 ACKNOWLEDGEMENT
The Project report is based on my two months
training in Aircel Ltd, . In the preparation of this
report many persons have extended their valuable
time and co-operation to me, therefore I
acknowledge all those who remain anonymous.
First of all I am highly obliged to my guide Mrs
GAYATRI CHOPRA (Faculty,fMS,Delhi) whose co-
operation attitude and precious suggestion has been
a great sense of inspiration for me.
I also express my deep sense of gratitude to Prof. S.S
(Director, fMS, newdelhi) and other teachers & staff
members who extended their guidance & support
from time to time.
It is my duty to express gratitude to the
management of Aircel Ltd. Aircel has given me the
opportunity to complete two months summer training
–cum project work in the organization.
I am sincerely thankful to Mr .Amit Kumar Singh
(Asst.Manager-finance) at Aircel, for his consistent
support, guidance, motivation and providing me with
necessary input & valuable suggestions from time to
time.

5
 SANDEEP SINGH
Enrolment No -
08061237006

6
INTRODUCTION

7
1 : INTRODUCTION

The deregulation in the INDIAN telecommunication markets since

the beginning of the 1997s has brought about significant changes
in the communication industry. The mobile telephone market has
changed dramatically over the past 5-6 years in INDIA.

Mobiles have become so popular that many people use their

handset as their only phone and rarely use a landline.

“The study of consumer behaviour focuses on how individuals

make decisions to spend their available resources (time, money,
efforts) on consumption related items. That includes what they
buy, why they buy it, when they buy it, where they buy it, how
often they buy it, and how often they use it”.

There are a number of reasons for researching for consumer

behaviour like segmentation, target market selection, positioning,
and product/service decision, pricing decision, distribution and
promotion decision.

Model of consumer decision making process is helpful to

understand the consumer behaviour. It shows how the external
and internal factors influence the consumer attitude formation
and attitude change. The model reflects cognitive (or problem
solving) consumer and, to some degree emotional consumer.

8
“An attitude is a learned predisposition to behave in a
consistently favourable or unfavourable way with respect to a
given object.

This study will identify the gap between consumer attitude and
behaviour towards the cellular services in INDIA.

9
 REVIEW OF
LITERATURE

10
2 : REVIEW OF LITERATURE

Source 1: CELLULAR NEWS:

Aircel signs tower sharing dear with BSNL:

Aircel has always emphasized upon building its brand satisfactory

and reliable among customer. Therefore, India's Aircel has
announced a 10-year passive infrastructure sharing agreement
with state owned operator, Bharat Sanchar Nigam Ltd (BSNL).
Aircel, which already has around 32,000 base stations, says that
it will now have access to approximately 45,000 BSNL towers
across all its licensed circles. The financial terms of the
agreement were not disclosed.

"Aircel will now have access to strategically located sites across

BSNL's 21 circles (excluding Mumbai and Delhi). Leveraging
BSNL's passive infrastructure will help Aircel meet its aggressive
network roll out plans in addition to reducing operational cost,"
Aircel Chief Operating Officer Gurdeep Singh said in a statement.

Kuldeep Goyal, CMD, BSNL added, "We are happy to partner with
Aircel. BSNL has a strong nationwide coverage and offers the best
value proposition in the Indian telecom market. Our objective is
to provide quality and reliable service and thereby increase our
partner's confidence".

Source 2: MOBILE WORLD

Aircel expanding its market base:

Figures from the Mobile World analysts report that Aircel had just
under 22 million active subscribers at the end of June.

11
Aircel is a joint venture between Malaysia's Maxis
Communications (74%) and India's Apollo Hospital Enterprise
(26%).

Source 3: INDIA INFOLINE

Aircel Leader of tomorrow:

Aircel, the market leader in Chennai, Tamil Nadu, North East and
Assam Telecom Circles, with more than 4.2mn customers. Aircel
has announced the launch of its GSM services in Bihar. This is the
ninth circle across India in which Aircel will be providing their
mobile services and the seventh in North & East India.

This raises the competition for the existing companies. Aircel has
decided to launch about 10,000 retail outlets all over Bihar to
provide better service to its customers. Now, whether this
succeeds or not in its aim, will be said only by time.

"Aircel has obtained 14 new licenses to roll out its GSM cellular
services besides getting the license to provide International Long
Distance (ILD) and National Long Distance (NLD) telephony
services" said Jagdish Kini, Group Chief Executive Officer, Aircel.
He further added, "With these new licenses, Aircel is poised to
transform itself into a pan-India operator". Commenting on Bihar
launch Kini said, "Bihar Telecom Circle with 5 % penetration it
offers Aircel an excellent opportunity to launch its growth plans in
India."

12
PROBLEM STATEMENT
&
OBJECTIVES

13
3 : PROBLEM STATEMENT

The company has more opportunity to capture the market. The

cellular service industry is more competitive then ever before.

There is a need to identify the gap between consumer behavior,

attitude and company practice. The findings of this study will be
important to understand the consumer attitude, habits, opinion
and their beliefs towards the product, and the attitude towards
the company marketing efforts.

The result of the study will help to make a suitable

recommendation for cover the gap between consumer behavior
and the company marketing efforts.

OBJECTIVES OF THE PROPOSED STUDY

Objective is to study the consumer attitude & behavior towards

cellular service. This project report has been formulated with
specialty of behavioral analysis of consumer. By throwing light on
their need for communication, effort has been put on deriving
there response towards communication and its various standards.
The aim of project has been to sort out basic things that
consumer seeks while asking new Telecom connection and
promising things of Telecom that makes them reliable consumer.

Since, I have done my internship in chapra (Bihar). I have given

my best in analysis and interpretation to study chronological

14
order working pattern of Telecom industry by working with
ZONAL and AREA sales manager, super-distributor, and retailer.
The project title, which I have taken, is “Study of Consumer
behavior and attitude towards cellular services with reference to
AIRCEL (chapra,Bihar), the objectives of study are:-

PRIMARY OBJECTIVE

To understand the consumer behavior and attitude regarding

cellular market.

Identify the Potential customer in the corporate sector.

SECONDARY OBJECTIVE

To identify the action of the competition in the market

Explore and crack new accounts

15
NEED & SIGNIFICANCE
OF STUDY

16
4 : NEED AND SIGNIFICANCE OF
STUDY

Understanding consumer behavior and “knowing customers” is

never simple. Customers may say one thing but do another. They
may not be in touch with their deeper motivations.

“Consumers have more power then ever before”.

“Consumers have access more information than ever before”.

There are a number of reasons for researching of consumer

behaviour like segmentation, target market selection, positioning,
and product/service decision, pricing decision, distribution and
promotion decision.

The main significance and need of this research is to identify the

consumers’ attitude & behaviour towards Cellular services and
analysis. The findings of this study will be helpful to understand
the consumer attitude and behaviour. According to the consumer
attitude and their behaviour company can make marketing
strategy for attracting the larger customers for future.

17
SCOPE OF STUDY

18
5 : Scope of study

In recent year, adoption of mobile phone has been exceptionally

rapid in many part of the world and especially in INDIA; mobile
phones are almost as common as wrist watch. The INDIAN
telecommunications market is characterized by a small number
of large players and a much more sizeable number of small
companies. The mobile industry has become more competitive.

It is necessary to identify the consumer attitude & behavior

towards product and what do they want or needed.

The study will be focused on the consumer attitude & behavior

towards cellular services. The findings of the research will be
helpful to identifying the consumer attitude, behavior, habits to
buy a mobile phone and company practicing. This will be vital to
identify the gap between consumer attitude and company
practicing. The result of the study will be important to make a
marketing strategy for the future customers to fulfill the company
objective.

19
INDUSTRY PROFILE

20
6 : INDUSTRY PROFILE

6.1 : MOBILE INDUSTRY IN INDIA

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by
the government near Calcutta (seat of British power). Telephone
services were introduced in India in 1881. In 1883 telephone
services were merged with the postal system. Indian Radio
Telegraph Company (IRT) was formed in 1923. After
independence in 1947, all the foreign telecommunication
companies were nationalized to form the Posts, Telephone and
Telegraph (PTT), a monopoly run by the government's Ministry of
Communications. Telecom sector was considered as a strategic
service and the government considered it best to bring under
state's control.

The first wind of reforms in telecommunications sector began to

flow in 1980s when the private sector was allowed in
telecommunications equipment manufacturing. In 1985,
Department of Telecommunications (DOT) was established. It was
an exclusive provider of domestic and long-distance service that
would be its own regulator (separate from the postal system). In
1986, two wholly government-owned companies were created:
the Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited
(MTNL) for service in metropolitan areas.

21
In 1990s, telecommunications sector benefited from the general
opening up of the economy. Also, examples of telecom revolution
in many other countries, which resulted in better quality of
service and lower tariffs, led Indian policy makers to initiate a
change process finally resulting in opening up of telecom services
sector for the private sector. National Telecom Policy (NTP) 1994
was the first attempt to give a comprehensive roadmap for the
Indian telecommunications sector. In 1997, Telecom Regulatory
Authority of India (TRAI) was created. TRAI was formed to act as a
regulator to facilitate the growth of the telecom sector. New
National Telecom Policy was adopted in 1999 and cellular
services were also launched in the same year.

Telecommunication sector in India can be divided into two

segments: Fixed Service Provider (FSPs), and Cellular Services.
Fixed line services consist of basic services, national or domestic
long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of
revenues from basic services. Private sector services are
presently available in selective urban areas, and collectively
account for less than 5 per cent of subscriptions. However,
private services focus on the business/corporate sector, and offer
reliable, high- end services, such as leased lines, ISDN, closed
user group and videoconferencing.

Cellular services can be further divided into two categories:

Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). The GSM sector is dominated by

22
Airtel, Vodfone-Hutch, Idea Cellular and Aircel, while the CDMA
sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are
the major growth drivers for cellular industry. Cellular operators
get substantial revenue from these services, and compensate
them for reduction in tariffs on airtime, which along with rental
was the main source of revenue. The reduction in tariffs for
airtime, national long distance, international long distance, and
handset prices has driven demand.

Issues and Challenges of telecom industry

There are various issues surrounding the telecom Industry which

pose challenges for the Industry. These issues arise out of various
policy announcements by the regulator which has resulted in
increased competition between the players? If we take a closer
look at the issues and challenges , a majority of them
revolve around the most important resource in the telecom
Industry- “SPECTRUM”. Spectrum is a range of electromagnetic
radio frequencies used for transmission of voice, data and
images.

Telecom operators send and receive frequencies to enable

communication between two phones. Enhancement of subscriber
criteria for allocation of additional 2G spectrum the controversy
began when TRAI and DOT’s technical advisory board rose the
bar on the minimum subscriber norms for operators to qualify for
additional spectrum. The new subscriber norms were around

23
three times higher than the existing ones. This move was
challenged by GSM operators in the telecom tribunal. DoT then
referred the matter to its technical arm, Telecom Engineering
Centre (TEC), which in its report recommended that the allocation
norms should be hiked between 2-15 times depending on the
circle. The Cellular Operators Association Of India, the body
representing all GSM players, said that it would fle yet another
petition with the telecom tribunal challenging the TEC report.
Access licence made technology neutral the Govt also permitted
existing universal access service licencees to offer wireless
services using either GSM or CDMA technology. This decision
paved way for existing CDMA operators to provide GSM-based
services and vice-versa, subject to the availability of spectrum
and payment of the prescribed fees. 3G spectrum auction to be
open to all in another move, the government announced that 3G
spectrum would be auctioned, which would be open to all. This
means that both existing operators and new entrants, whether
owned by domestic entrepreneurs or foreign companies such as
AT&T and Deutsche Telekom, who currently do not have
presence in India, would be eligible to bid for 3G spectrum. This
view is in contradiction with the Bharti Airtel Ltd and others we
expect the mobile subscriber base for the industry to reach 366
mn by 2012 from 166 mn as on 2007 Telecom Regulatory
Authority of India’s (TRAI) recommendation of allocating 3G
spectrum only to existing service licencees. Mobile Number
Portability (MNP) from last quarter of 2008 furthermore, to reduce
entry barriers and increase competition, the Govt. has decided to
implement Mobile Number Portability (MNP) in a phased manner.

24
MNP would give subscribers the freedom to change their existing
wireless operator while retaining the same number. To begin
with, MNP would be implemented in the four metros of Mumbai,
Chennai, Delhi, and Kolkatta during the last quarter of 2008.

Threat from satellite telephony:

A satellite telephone is a mobile phone that communicates

directly with orbiting communications satellites. Depending on
the architecture of a particular system, coverage may include the
entire Earth, or only specifc regions. These satellite phones
provide worldwide connectivity on a single number. The largest
users of satellite phones in India as well as worldwide, till date,
are the government and defense forces. However these phones
can be used only after the No Objection Certifcate (NOC) is issued
by DOT. If cost of these handsets reduces, then they may pose a
threat.

Classification of Telecommunication services:

• Basic services

• Cellular services

• Internet Service Provider (ISP)

The telecom commission was set up by the government of

INDIA& notification dated 11 Apirl 1989 with admistrative &
financial power of government deal with various aspect of

25
telecommunication. The entry of private sector in the provision of
telecom service a need was full to have an independent
regulatory body the above requirement was indicated in the
guideline issue for entry of private sector in basic telecom
service. In 1997 telecom regulation act India was established in
pursuance which was act of parliaments to regulate the service or
it amended by act 2000. Mobiles have become so popular that
many people use their handset as their only phone and rarely use
a landline. The de regulation in the INDIA telecommunication
markets since the beginning of the 1997s has brought about
significant changes in the communication industry. Price
competition and newly created services the telecommunication
industry has become the largest industry. In recent year,
adoption of mobile phone has been exceptionally rapid in many
part of the world and especially in INDIA; mobile phones are
Almost as common as wrist watch

26
6.2 : INDUSTRY ANALYSIS

Mobile operators with subscribers wise & market

share wise of India July 2009

S.N Service Subscribers(M Market Share

o. Providers n.) (%)
1 Bharti Airtel 82.92 24.67
2 Reliance Comm 59.57 17.72
3 Vodafone 58.76 17.49
4 BSNL 45.28 13.47
5 Idea Cellular 32.81 9.76
Tata
6 Teleservices 31.02 9.23
7 Aircel 15.38 4.57
8 MTNL 4.1 1.22
9 Spice Telecom 3.71 1.1
10 BPL 1.88 0.56

27
 Subscribers      (Million)

90
80
70
60
50
Subscribers      (Million)
40
30
20
10
0

 
  

r   

s 
e 
 

om
 
m

L 
el

L 
ce

el
la

PL
on
ir t

om

SN

TN
ir c

ec
lu

vi
 A

B
af

el

er

 A
B
C

el
M
od
r ti

 C
e 

es

 T
ha

ea
nc

ce
el
B

 T
Id
ia

pi
el

ta

S
R

Ta

Total Subscriber base in August 2009:

(Aug
Indian Telecom Statistics 2009)
Total telephone subscriber base 452.91
Over all Tele-density 38.88%
Fixed-line user base 37.66
Wireless user base (GSM+CDMA+WLL(F)) 415.25
GSM Subscribers 298.15
CDMA Subscribers 105.51
Monthly additions (Wireline +
Wireless) 11.44
Monthly additions (Wireline) -0.15
Monthly additions (Wireless) 11.59
Broadband subscribers 6.4

(Subscriber numbers in million)

Top 10 mobile Countries:

28
Ran Operato Subscribers in
k r million Data Date
1 China 650 9-Jan
2 India 392 9-Mar
3 US 278.99 8-Dec
4 Russia 189.61 9-Feb
Indonesi
6 a 154.757 8-Dec
5 Brazil 153.7 9-Mar
8 Japan 112.05 8-Mar
German
7 y 106 8-Sep
9 Italy 92.8 8-Oct
10 Pakistan 91.44 9-Mar

Online Retailers

There is a correlation between high spending mobile phone users

and Internet users, making the Internet a natural sales channel
for mobile phones. Almost every retailer of mobile phones now
has a fully interactive website, often mirroring the choice in the
shops, and sometimes offering special Internet-only deals. For the

29
major retail chains and the networks, the Internet creates a
showcase as well as giving consumers flexibility about where to
buy a mobile phone. It also gives them a means of competing for
the Internet consumer, against a rising tide of other specialists.
Many of the small independent mobile phone shops have
established websites and there are some that have opted to
major on Internet selling.

There is little doubt that Internet retailing has increased share of

the mobile phone market in recent years. There are often price
advantages for consumers, and accreditation by The Consumer's
Association for good quality outlets helps to give first time buyers
confidence about where to shop. Price comparisons may be made
via search engines on the Internet, cutting the search time that
consumers spend looking for what they want. This tends to make
the Internet especially price-aggressive.

6.3. : Pestle Analysis

6. 3. 1. : Political /legal

In January 2005 the competition commission ruled that mobile

phone companies termination (the prices they charge for
access to their network from other network & landlines) are too
high .it recommended an immediate one off prices reduction
around 14.41%

30
New regulation published by the five mobile phone operator in
India Bharti Airtel, Vodafone, Bsnl, Reliance, Idea will stop
children from entering immoderate chartroom, porn sites and
Grambling. Regulatory restriction on termination charges and
calls to landlines are forcing prices down

6. 3. 2. : Economic

Population

India population growth is high . As the mobile phone market is

already nearing growth point, this means that the total no. of
subscriber is to grow.

GDP

The India gross domestic product is increasing, which is a positive

sign for the mobile phone market. The contribution of the Indian
telecom sector to the nation's GDP is expected to increase from 2
per cent in 2006 to an estimated 3.6 per cent in 2010.

Disposable Income

Household disposable income is on the increase. This may be

positive for retailers’ hopes of increasing ARPU and no. services
users take up through their phones.

31
Unemployment

The India unemployment rate is high, which is a negative sign for

mobile retailer, because there is a large proportions of the
population earning low and therefore with lower disposable
income to spend on mobile phones

6. 3. 3. : Social Culture

Mobile has become fashion necessary and social indicator.Using

text, photo messaging, games and location based information,
downloading ring tones, mobile internet access, replacement
trend and customer wants pick and mix tariffs.

• More trend of replacement.

• Increasing rural subscribers

• Increased in pay as you go instead of monthly tariff

Changing life style has impact on their buying behavior; customer

wants new technology new different tariffs and new mobile sets
etc. These changes are directly impact on the sale of mobile
phones. 78% sales in north India.

Consumers are far more interested in how handsets fit in with

their lifestyle than they are in screen size, onboard memory or
the chip inside, shows an in-depth study by telecommunications
company Ericsson. Dating services and other more adult match-

32
making services are proving to be a strong stream of revenue
worth millions for mobile companies. There are currently about
18 million video phones in use in the India. With more people
buying video mobiles, 3G dating could be the basis for a
successful and safe way to meet people.

Lots of people find it easier to be honest writing e-mail or text

than face-to-face. Lots people are quite shy and they feel
vulnerable."

6. 3. 4. : Technological

High speed of technology transfer ( New function sets, 3G, 4G,

Photo messaging, MMS). Replacement market is highly increasing
of mobile phones due to new technological changes .Mobile
phone firms and manufacturers, including Nokia, LG, Samsung
and Motorola, have joined forces to develop the next generation
of high-speed networks. The technology will be more than 10
times quicker than current 3G services.

Mobile phone firms and manufacturers have joined forces to

develop the next generation of high-speed networks. The
technology will be more than 10 times quicker than current 3G
services.

As technology continues to develop, it is bringing about real

changes in people's lifestyles, making them more dependent on
information and communication technologies.

33
6. 3. 5. : Environmental

In India has million of handset & sim cadres are discarded every
year. These phones represent a serious environmental problem
as they contain a number of hazardous materials. The cadmium
from one battery is enough to pollute 600,000 liters of water.
The directive waste will require mobile phones to be recycled or
disposed of in an environmentally responsible manner at the end
of their lives. There will be obligations on all sectors of the
telecommunications industry to play a responsible role in handset
waste management

34
 COMPANY PROFILE

7. : COMPANY PROFILE

On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon

Seluler. Maxis is currently in the middle of rolling out a Java wide
network to establish the company as a national operator. The
initial launch phase encompasses 1,300 BTS, providing both 2G

35
and 3G services. NTS expects to have up to 480 employees by
launch date and to increase significantly upon launching. Maxis
in India Maxis completed the acquisition of a 74% stake in Aircel
on March 21, 2006. Currently, Aircel has operations in 9 of the
23-telecom circles of India - Chennai, Tamil Nadu, West Bengal,
Orissa, Assam, North East, Jammu and Kashmir, Himachal
Pradesh and Bihar. Aircel launched its services in Bihar and
Himachal Pradesh in December 2006 and also recently received
the licenses to operate in the remaining 14- telecom circles of
India giving it the ability to become a pan-India player. Maxis’
expansion into Indonesia and India is another milestone in our
aspiration to be the regional communications leader of choice.
The acquisition of a 51% stake in PT Natrindo Telepon Seluler
(NTS), Indonesia and a 74% equity interest in Aircel, India
provides new growth opportunities for Maxis. These acquisitions
give Maxis a strong foothold in two of the world’s most attractive
high-growth, low-penetration markets. This marks the beginning
of the new world of Maxis – a world beyond voice, and beyond
borders. MAP Maxis in Indonesia On 29th April 2005, Maxis
acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in
the middle of rolling out a Java wide network to establish the
company as a national operator. The initial launch phase
encompasses 1,300 BTS, providing both 2G and 3G services. NTS
expects to have up to 480 employees by launch date and to
increase significantly upon launching. Maxis in India Maxis
completed the acquisition of a 74% stake in Aircel on March 21,
2006. Currently, Aircel has operations in 9 of the 23 telecom
circles of India - Chennai, Tamil Nadu, West Bengal, Orissa,

36
Assam, North East, Jammu and Kashmir, Himachal Pradesh and
Bihar. Aircel launched its services in Bihar and Himachal Pradesh
in December 2006 and also recently received the licenses to
operate in the remaining 14 telecom circles of India giving it the
ability to become a pan- India player. Aircel expects to
aggressively grow its subscriber base in India and is developing a
broad range of new propositions for its customers - from
branding, to increased network coverage, to innovative product
and service offerings, to refreshing customer experience. As of
31st December 2006, Aircel serves more than 4.5 million
subscribers with a network comprising of almost 4,000 BTS. Aircel
continues to be the market leader in Tamil Nadu and Chennai
circle. Aircel’s network provides 2G and GPRS services, and is
EDGE capable. Aircel is also currently in the process of
conducting 3G Trials across different cities in India. In addition,
Aircel is the first cellular operator in India to launch wireless
Internet services using WiMAX technology. It aims to immediately
extend its WiMax coverage to over 20 cities to serve enterprise
broadband customers. Over the next few quarters, India is
expected to add new subscribers at the rate of 5 to 6 million per
month. India offers huge opportunities for Aircel given the current
low mobile penetrations levels as well as challenges in terms of
its geographic spread and low ARPU levels. Aircel expects to
aggressively grow its subscriber base in India and is developing a
broad range of new propositions for its customers - from
branding, to increased network coverage, to innovative product
and service offerings, to refreshing customer experience.

37
As of 31st December 2006, Aircel serves more than 4.5 million
subscribers with a network comprising of almost 4,000 BTS. Aircel
continues to be the market leader in Tamil Nadu and Chennai
circle. Aircel’s network provides 2G and GPRS services, and is
EDGE capable. Aircel is also currently in the process of
conducting 3G Trials across different cities in India. In addition,
Aircel is the first cellular operator in India to launch wireless
Internet services using WiMAX technology. It aims to immediately
extend its WiMax coverage to over 20 cities to serve enterprise
broadband customers. Over the next few quarters, India is
expected to add new subscribers at the rate of 5 to 6 million per
month. India offers huge opportunities for Aircel given the current
low mobile penetrations levels as well as challenges in terms of
its geographic spread and low ARPU levels Aircel’s current and
proposed footprint is illustrated below.

MISSION STATEMENT : We are conditionally committed to

exceeding our customer’s expectations. We will provide network
and services that are innovative and reliable, allowing our
customers any time anywhere communications. We will attract,
develop and retain an exceptional team of people. We are
committed to enhancing the quality of real life in the community
in which we operate. We will meet the financial expectation of
our shareholders. OUR GOALS AND VALUES

CUSTOMERS : our customers are our most valued assets. We

will strive to exceed their expectations at all time by providing

38
them with superior services that embody value, innovation,
quality and care.

PEOPLE : our people are our greatest resources. We will attract,

train and retain the best. We will challenge them to develop their
full potential in the context of our company goals.

INTEGRITY : We will maintain and strive for the highest levels of

personal and professional integrity and honesty in all ours
dealings. We will keep our promises.

RESPECT : We will treat with respect & dignity all people we deal
with.

EXCELLENCE : We are committed to excellence in all what we

do. There will be no place for mediocrity.

WORK : We will promote a work environment that embraces

creativity, promotes empowerment, and encourages team work,
innovation, prudent risk taking, honest and open communication
and respectful iconoclasm

QUALITY : the hallmark of our internal and external outputs and

processes will be quality. this will pervade every aspect of our
functioning.

Subscription Base Of Different Service Provider in Bihar (May-

2009)

39
Service Provider Suscriber
Reliance Telecom 2931877
AIRCEL 2877220
Bharti Airtel 8159469
Dishnet Wireless 1502738
ABTL (IDEA) 1201417
Vodafone Essar 1251331
BSNL 2772670

7. 1. : Firms marketing efforts

The firm’s marketing activities are a direct attempt to reach,

inform, and persuade consumers to buy and use its
products/services. These activities are product related,
promotion, price and channel of distribution.

7. 1 .1. : Product

Product related activities include new technology, brand name,

features, design and packaging. Brand name effect is the
consumer’s perception of the role that brand name plays in the
decision making process of choosing the most preferred
product/services.

According to information integration theory proposed by Bettman

et al. (1975) in the context of product evaluations, consumers
assign importance weights and scale values (utilities) to product
attributes for which information is available at the time of

40
decision making, and then combine these weights and values
according to some rule(e.g. adding, averaging) to come up with
an evaluation.

Consumer with low product knowledge might not be able to

perform trade off contrasts among brands because these
comparisons are likely to require some minimal level of
knowledge and familiarity about brands .In contrast, consumers
with high product category knowledge might have sufficient
familiarity and expertise with the product category to perform
inference and interpretation on brands as an “enriched” quality
cue in implementing customization process.

In the mobile phone market product plays an important role to

purchasing the particular mobile phone. This is actually due to
new innovation. So consumer’s behaviour influenced toward
mobile phone products. Services are also important part for the
mobile industry. Services include price promise, Insurance,
exchange offers, and other services like work mobile abroad.
There is also a range of fixed line telephones and other fixed line
equipment such as fax machines. The consumers can opt for pay-
as-you-go or contract payments, as well as wide choice of 'value
packs' which offer bundles of text messages, picture messaging
services or airtime. The company claims that its expert sales staff
can help you to select the best value package depending on how
much you use the phone, and how you prefer to pay.

41
7. 1. 2. : Price

Prices efforts include promotional prices, discount, reduce the

price of product/services and competitor pricing. Commodity
prices in the market play a relevant role in consumer decision
making; they influence what, when, where and how much
consumer buy. Price promotion by a retailer for a particular brand
might adversely affect the sales level of competing retailer if
consumer actively switch store to take advantage of the deal.
Consumer who perceive prices more accurately are the ones who
place a higher degree of importance on them its investigate two
potential subscribers decision, using the graphic device of a
price/acceptance and a charge/acceptance function towards
mobile.

The study identified that most customers, who are willing to swap
providers, will make their decision on price first. Consumer
knowledge of price plays an important role in pricing
management since it not only determines how prices are
perceived and valued but also influenced consumers purchase
decision. Price is important factor which influence the customer
attitude towards mobile phone. At the point in time of purchase
the customer faces, first of all, initial financial, the purchase price
for the set and the fixed charges for the connection to the
network.

Another aspect at the time of purchase is the consideration of the

use charges, such as the price per call minute.There are very

42
competitive price in the market. Most of the mobile phone
companies are offering different network.

7. 1. 3. : Promotion

Advertisement, sales promotion, public relations and direct

marketing are the promotional tools.

Sales promotion consists of a wide variety of short term tactical

promotional tools aimed at generating a desired response from
customers. Sales promotion includes tools for consumer
promotion (sample, coupons, cash refund, offers, prices off,
premium, prizes, patronage rewards free trials, warranty, tie in
promotions, cross promotions, point of purchase displays and
demonstration); trade promotion ( price off, advertising and
display allowance, and free goods).

Public relation involves a variety of programs designed to

promote a company’s image or its individual product. The main
tools of PR are publications, events, news, speeches, public-
services activities, and identity media.

Direct marketing is an interactive marketing system that uses

one or more media to affect a measurable response or
transaction at any location. Electronic marketing is a part of
direct marketing. Its media include television, press and radio
advertisements.

43
MAJOR COMPETITOR

44
8. : MAJOR COMPETITOR

8. 1. : AIRTEL

“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited

(BTVL) is among India's largest mobile phone and Fixed Network
operators. With more than 60 million subscriptions as of 13th
February 2008. It offers its mobile services under the Airtel brand
and is headed by Sunil Mittal. The company also provides
telephone services and Internet access over DSL in 14 circles.

The company complements its mobile, broadband & telephone

services with national and international long distance services.
The company also has a submarine cable landing station at
Chennai, which connects the submarine cable connecting
Chennai and Singapore. The company provides reliable end-to-
end data and enterprise services to the corporate customers by
leveraging its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing
station.

Airtel is the largest cellular service provider in India in terms of

number of subscribers. Bharti Airtel owns the Airtel brand and
provides the following services under the brand name Airtel:
Mobile Services (using GSM Technology), Broadband & Telephone

45
Services (Fixed line, Internet Connectivity (DSL) and Leased Line),
Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporates). Leading
international telecommunication companies such as Vodafone
and SingTel held partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a

telecommunications license in Jersey in the Channel Islands by
the local telecommunications regulator the JCRA. In September
2006 the Office of Utility Regulation in Guernsey awarded
Guernsey Airtel with a mobile telecommunications license. In May
2007 Jersey Airtel and Guernsey Airtel announced the launch of a
relationship with Vodafone for island mobile subscribers. In July
2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900
million dollar expansion of its mobile and fixed network.[3] In
August 2007, the company announced it will be launching a
customized version of Google search engine that will provide an
'array of services' to its broadband customers.

Bharti Enterprises is a pioneer in telecom sector and the group is

widening its horizons by entering new business areas such as
insurance and retail. Bharti Enterprises has created a vantage
position for itself in the global telecommunications sector. Bharti
Airtel Limited occupies numero uno status in mobile telephony in
India while its brand 'Beetel' is the largest manufacturer and
exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal

46
entered into an agreement with Germany's Siemens to
manufacture the company's push-button telephone models for
the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti
Telecom Limited (BTL) and his company became the first in India
to offer push-button telephones, establishing the basis of Bharti
Enterprises. This first-mover advantage allowed Sunil Mittal to
expand his manufacturing capacity elsewhere in the
telecommunications market. By the early 1990s, Sunil Mittal had
also launched the country's first fax machines and its first
cordless telephones. In 1992, Sunil Mittal won a bid to build a
cellular phone network in Delhi.

In 1995, Sunil Mittal incorporated the cellular operations as Bharti

Tele-Ventures and launched service in Delhi. In 1996, cellular
service was extended to Himachal Pradesh. In 1999, Bharti
Enterprises acquired control of JT Holdings, and extended cellular
operations to Karnataka and Andhra Pradesh. In 2000, Bharti
acquired control of Skycell Communications, in Chennai. In 2001,
the company acquired control of Spice Cell in Calcutta. Bharti
Enterprises went public in 2002, and the company was listed on
Mumbai Stock Exchange and National Stock Exchange of India. In
2003, the cellular phone operations were rebranded under the
single AirTel brand. In 2004, Bharti acquired control of Hexacom
and entered Rajasthan. In 2005, Bharti extended its network to
Andaman and Nicobar. Today, Airtel is the laegest cellular service
provider in India.

47
The Company today offers mobile services in Fifteen out of 22
circles in India. As of April 30, 2003, approximately 91% of India’s
total number of mobile subscribers resided Karnataka circles.

The company provides reliable end-to-end data & enterprise

services to the corporate customers by leveraging its nationwide
fiber optic backbone, last mile connectivity in fixed-line and
mobile circles, VSATs, ISP and international bandwidth access
through our gateways and landing station.in Bharti’s existing and
proposed mobile circles, according to COAI reports. Bharti Tele-
Ventures was the first private sector operator to provide fixed-
line services in India when it commenced providing services in
the Madhya Pradesh & Chhattisgarh circle in June 1998. BTVL
also provides fixed-line services in Haryana, Delhi, Tamil Nadu
and Karnataka circles.

The company complements its mobile and fixed-line services

with national and international long distance services. The
company also has a submarine cable landing station at Chennai,
which connects the submarine cable connecting Chennai and
Singapore. The long distance and data enterprise services has
enormous support from this connectivity and facilitates us in
offering best value to our customers.

The company provides reliable end-to-end data & enterprise

services to the corporate customers by leveraging its nationwide
fiber optic backbone, last mile connectivity in fixed-line and

48
mobile circles, VSATs, ISP and international bandwidth access
through our gateways and landing station.

AirTel, India’s premier mobile service today created history by

becoming the first service provider in the country to reach the
coveted 1 million-customer mark in one mobile circle. AirTel’s
operations in Delhi, is thus the largest mobile operation in the
country and it has more than 50% market share in India’s largest
mobile territory. Taking forward AirTel’s strategic roadmap for
enhancing the service delivery experience, AirTel announced an
investment of more than Rs. 175 crore in the current financial
year. This will take AirTel’s cumulative investment in the circle to
more than Rs. 1950 crores by the end of the current financial
year. AirTel will also be implementing six sigma for superior
service deliveries.

Business and Financial Metrics

49
Total Revenue and Profit after Tax from 2003 to 2008 for
Bharti Airtel

8. 2. : IDEA

50
Idea Cellular is a part of Aditya Birla Nuvo, a flagship company of
the Aditya Birla Group. It is a wireless telephony company
operating in various states in India. It initially started in 1995 as a
joint venture among the Tatas, Aditya Birla Group and AT&T by
merging "'Wings Cellular'" operating in Madhya Pradesh, UP
West, Rajasthan and Tata Cellular as well as Birla AT&T
Communications.Idea is a leading cellular operator, with a
subscriber base of over seven million across the country in its
eight circle operation. It controls a portfolio of India's most
attractive and mainly contiguous properties including the 11
states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra
Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (West),
Uttaranchal, Haryana, Kerala and Delhi (inclusive of NCR).

Having operations in four of the five largest cellular circles in

India, Idea is the market leader in the Maharashtra and Goa;
Uttar Pradesh (West) and Madhya Pradesh and Chattisgarh circles
in terms of number of subscribers. Idea's Delhi circle is also the
fastest-growing fourth operator in the country, which is an
achievement in itself and showcases customer confidence of a
high degree. Idea's footprint currently covers approximately 45
per cent of India's population and over 50 per cent of the
potential telecom market. Idea covers over 1000 towns along
with a total highway connectivity of over 10,000 kilometres.
Today, there are over 350 direct customer service outlets and a
well-entrenched network of over 48,000 retailers and dealers
across the country. Each circle with its own dedicated call centre

51
and a single call resolution approach towards the customer is a
unique effort provided by any operator.

Idea offers roaming across 560 operators in India and across the
world. With a clear focus on providing unique, distinct innovative
and tremendously valuable services to the subscribers, Idea
embarked upon an initiative to set up a VAS (value-added
services) factory within the company, which conceptualizes and
provides tailor-made value-added services. As a leader in value
added services, innovation is central to the VAS factory. Idea was
the first and only company to launch music messaging with
'Cellular Jockey' to all its subscribers. Idea has launched a voice
portal with 'Say IDEA'. Idea also launched Global SMS for the first
time in the country, which allows the users to send and receive
SMS from over 540 networks and 170 countries across
technology platforms like GSM, CDMA, TDMA and satellite
phones.

A frontrunner in introducing revolutionary tariff plans, Idea has

the distinction of offering the most customer friendly and
competitive pre-paid offerings, for the first time in India, with 'Eco
Talk', 'Flexi-charge', 'Super Power' and other segmented
offerings. 'Lifetime Idea' is the first and only loyalty program, for
pre- paid customers, introduced by a cellular brand. 'Pay Easy' is
bill payment through the effective use of the pre-paid channel.
Idea is the only operator in the world to launch this service. It is
also the only cellular operator which has launched a complete
suite of mobile e-mail services. Idea offers a wide range of

52
cellular services and products. Its post-paid and pre-paid services
are supported by a variety of package plans to suit the needs of
different customers:

M-coupon — Electronic discount coupons that customers can

get on their mobiles while they shop
Voice courier — Idea subscribers can send messages in their
own voice to select GSM subscribers all across the country and
to any land line or cellular subscriber in the US and Canada at a
fraction of STD and ISD rates.
M-chat — An instant-messaging service that enables
subscribers to chat with their friends in MSN, Yahoo and ICQ
from Idea mobile (using the SMS feature). Idea's M-chat enables
subscribers to chat with all the three chat rooms, MSN, Yahoo
and ICQ, without having to tag along a laptop or computer with
net connection.
SMS in nine vernacular languages — Hindi, Gujarati,
Marathi, Bengali, Telugu, Tamil, Malayalam, Kannada and
Punjabi, in addition to English.
GPRS / MMS — Idea Delhi was the first mobile phone operator
to launch GPRS services in Delhi. It's 3G-compatible network
supports General Packet Radio Service (GPRS), which allows
subscribers to access Internet websites and information portals
on Idea mobile.

Customer service and innovation are the drivers of this cellular

brand. Idea was the first company in the country to launch GPRS
in November 2002. It showcased EDGE (Enhanced Data Rates for
GSM Evolution) in Delhi, in July 2004. With EDGE (a 3G
technology), subscribers can enjoy live television with a data
download rate of over 160 kbps. GPRS is available on all its
networks, for both pre-paid and post-paid customers. Idea
subscribers also have a richer experience while watching movie
previews, multimedia messages with video attachments, web-
infotainment, high-speed video downloads, java game downloads

53
and other Internet-based multi-media experiences on their EDGE-
enabled mobile phones.

In keeping with the promise of providing world class products and

services to its customers, Idea has added another first to its list
by announcing the launch of its new VAS innovation —
Background Tones.
Idea has also introduced a convenient ambulance service for its
customers of Indore. In another revolutionary and unprecedented
move, Idea has announced the, "Idea Girls' Best Friend Offer", a
once-in-a-lifetime opportunity to own a free dazzling real
diamond pendant with every new postpaid connection on a plan
of Rs. 150 and above. The latest feather in the Idea cap is
winning the GSM Association Award for Bill Flash. Idea thus
became the first cellular operator in India to win an award on an
international platform. The GSM Association Awards are
recognized as the Oscars of the GSM mobile
industry. Idea is the only Indian operator to have won an award at
this
forum since the inception. The award was presented for Idea's
unique "Bill Flash" service in the "Best Billing or Customer Care
Solution". It is indeed with pleasure that we proudly announce
that Bill Flash has been created by our in-house R&D Team.

Every company needs to analyse the products that are major

contributors of revenue and profits. While most manufacturing
companies look for the contribution from each product segment,
the service providing telecom companies search for the same

54
nuance in the average revenue per user (ARPU), which is
indicative of the revenues that these companies generate from
each of its service offering like cellular mobile services, dialup or
broadband services (of course, the measure for broadband is
average revenue per line). In this article, we do a brief study on
ARPUs as also analyse the real performance of Idea Cellular on
this front.

8. 3. : BSNL (Bharat
Sanchar Nigam Ltd)

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's

7th largest Telecommunications Company providing
comprehensive range of telecom services in India: Wireline,
CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of
five years it has become one of the largest public sector unit in
India. BSNL has installed Quality Telecom Network in the country
and now focusing on improving it, expanding the network,
introducing new telecom services with ICT applications in villages
and wining customer's confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL
capacity, 20.1 Million GSM Capacity, more than 37382
fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave
Network connecting 602 Districts, 7330 cities/towns and
5.5 Lakhs villages.

55
BSNL is the only service provider, making focused efforts and
planned initiatives to bridge the Rural-Urban Digital Divide ICT
sector. In fact there is no telecom operator in the country to beat its
reach with its wide network giving services in every nook & corner
of country and operates across India except Delhi & Mumbai.
Whether it is inaccessible areas of Siachen glacier and North-
eastern region of the country. BSNL serves its customers with its
wide bouquet of telecom services. BSNL is numero uno operator of
India in all services in its license area. The company offers vide
ranging & most transparent tariff schemes designed to suite every
customer.

BSNL cellular service, CellOne, has more than 17.8 million cellular
customers, garnering 24 percent of all mobile users as its
subscribers. That means that almost every fourth mobile user in
the country has a BSNL connection. In basic services, BSNL is
miles ahead of its rivals, with 35.1 million Basic Phone
subscribers i.e. 85 per cent share of the subscriber base and 92
percent share in revenue terms.BSNL has more than 2.5 million
WLL subscribers and 2.5 million Internet Customers who access
Internet through various modes viz. Dial-up, Leased Line, DIAS,
Account Less Internet(CLI). BSNL has been adjudged as the
NUMBER ONE ISP in the country. BSNL has set up a world class
multi-gigabit, multi-protocol convergent IP infrastructure that
provides convergent services like voice, data and video through
the same Backbone and Broadband Access Network. At present
there are 0.6 million Data Onebroadband customers.
The company has vast experience in Planning, Installation,
network integration and Maintenance of Switching &

56
Transmission Networks and also has a world class ISO 9000
certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL

is more than Rs.351,820 million (US $ 8 billion) with net
profit to the tune of Rs.99,390 million (US $ 2.26 billion)
for last financial year. The infrastructure asset on telephone
alone is worth about Rs.630,000 million (US $ 14.37 billion). BSNL
plans to expand its customer base from present 47 millions lines
to 125 million lines by December 2007 and infrastructure
investment plan to the tune of Rs. 733 crores (US$ 16.67 million)
in the next three years. The turnover, nationwide coverage,
reach, comprehensive range of telecom services and the desire
to excel has made BSNL the No. 1 Telecom Company of India.

8. 4. : VODAFONE

Vodafone Essar is the Indian subsidiary of Vodafone Group and

commenced operations in 1994 when its predecessor Hutchison
Telecom acquired the cellular license for Mumbai. The company
now has operations across the country with over 74.08 million
customers**. Over the years, Vodafone Essar, under the Hutch
brand, has been named the ‘Most Respected Telecom Company’,
the ‘Best Mobile Service in the country’ and the ‘Most Creative
and Most Effective Advertiser of the Year’. Vodafone Group is
the world’s leading international mobile communications
corporation. It currently has equity interests in 27 countries

57
across 5 continents and 40 partner networks with over 303
million proportionate customers worldwide. The Essar Group is
Vodafone’s principal partner in India. The Essar Group is a
diversified business corporation with a balanced portfolio of
assets in the manufacturing and services sectors of Steel, Energy,
Power, Communications, Shipping Ports & Logistics, and Projects.
Essar employs more than 50,000 people across offices in Asia,
Africa, Europe and the Americas.

8. 5. : RELIANCE

The Late Dhirubhai Ambani dreamt of a digital India — an India

where the common man would have access to affordable means
of information and communication. Dhirubhai, who single-
handedly built India’s largest private sector company virtually
from scratch, had stated as early as 1999: “Make the tools of
information and communication available to people at an
affordable cost. They will overcome the handicaps of illiteracy
and lack of mobility.”

58
It was with this belief in mind that Reliance Communications
(formerly Reliance Infocomm) started laying 60,000 route
kilometres of a pan-India fibre optic backbone. This backbone was
commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected
demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity,

integrated (both wireless and wireline) and convergent (voice,
data and video) digital network. It is capable of delivering a range
of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services
— for enterprises as well as individuals, applications, and
consulting.

Today, Reliance Communications is revolutionising the way India

communicates and networks, truly bringing about a new way of
life.

59
METHODOLOGY

60
9. : METHODOLOGY

“Marketing research is the systematic and objective identification

collection, analysis, dissemination and use of information for the
purpose of improving, recognizing and reacting to marketing
opportunities and problem”

During the course of conducting the study the information were

gathered mainly through the primary sources.

Conducting field survey by talking to consumer and also to

retailer who is dealing with SIM cards and recharge voucher and
the methodology used in the survey was personal observation ,
experimentation and interview with the retailer with the help of
schedule.

Simple random Sampling

To consider the research aim the Simple Random is used to

research the consumer attitude & behaviour towards cellular
services .

Simple random sampling is an approach in which each population

member, and thus each possible sample, has an equal probability
of being selected.

61
9.1. : Sampling size :

For the Customer:-

Control Population
Characteristic Composition
Sex:
Male 67
Female 33
 

Age:
15-25 25
25-35 25
35-45 25
45 and above 25

Note: Sample unit have been taking into confederation the

people who are using pre paid service only.

For the Retailer:-

Control Population
Characteristic Composition
Sex:
Male 90
Female 10
 

Age:
15-25 15
25-35 40
35-45 30
45 and above 15

62
9.2. : Collect the data :

The research designer has a wide variety of methods to consider,

either singly or in combination.

Data collection methods

Secondary sources

• Information system

• Databanks of other organisation

• Syndicate services

A search for secondary data generally follows the statement of

objectives. Secondary information is any data originally
generated for some purpose other than the present research
objective. It includes findings based on research done by outside
organisation; data generated in-house for earlier study, and even
customer information collected by the firm’s sales or credit
department.

The secondary data has been already collected from annual

reports.

Primary sources

• Qualitative research

63
 • Quantitative research

The primary research consists of quantitative and qualitative

research. Both of these have various techniques to collect the
data for research. It is the nature of the research that determines
what method should be adopted.

Research findings and conclusion can be a valuable sources of

information that can enhance the decision making process. While
research studies do not actually solve the problems or make
decision, they can guide information that can guide the decision
and action of management.

Quantitative have universal applicability, but qualitative methods

can be used to determine the plausibility of quantitative
research.

Qualitative Data

The purpose of qualitative research is to find out what is in a

consumer’s mind. It is done to access and also get a rough idea
about the person’s perspective. Feelings thoughts, intentions and
behavior that can be trace through this research.

Qualitative methodology provides powerful tools for research in

management and business administration.

64
By qualitative research consumer’s feeling and attitude can be
examined through interview by face to face, over the phone, mail
or via e-mail. Qualitative research however is the method by
which an individual will attempt to gather data to quantify a
situation or topic that may exist; it seeks to gain an insight rather
than a statistical analysis. The methods of qualitative research
include open/semi structured interviews, focus groups and
general observation.

Quantitative Data

The ideals of quantitative research call for procedures that are

public, that use precise definitions, that use objectivity-seeking
methods for data collection and analysis, that are replicable so
that findings can be confirmed or disconfirmed, and that are
systematic and cumulative—all resulting in knowledge useful for
explaining, predicting, and controlling the effects of teaching on
student outcomes .

65
 QUESTIONNAIRE

Customer Questionnaire

Retailer Questionnaire

66
10.1. : Customer Questionnaire:

Section A (Personal Details)

Gender :

Male □ Female □

Age

15-20 □ 21-25 □ 26-30

□
31-35 □ 36-45 □ 46 and above □

Qualification :

Secondary school □ University Graduate

□
Post Graduate □ Others □

Profession :

Professional □ Business Class □ Official

□
Self Employed □ Students □ Unemployed □

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

67
Q.2.Would you like to change your service provider?

(a) Yes □ (b) No □

68
Q.3. Why do you want to change your Mobile
product/service?
(a)New technology □ (b) Change Tariff □
(c) Change network □ (d) Lost □
(e) Others (please specify)…………

Q.4. To which Prepaid Cellular services you want to move

on?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.5.Which of the following do you use other then calling?

(a) SMS □ (b) MMS □ (c) Internet

□
(d) Games □ (e) Wall Paper □ (f) Downloading □
(g) Others □

Q.6. From where you Get your recharge done or buy

recharge coupons.

(a) Retailer □ (b) Online

□

Q.7. you prefer to have easy recharge or buy recharge

coupons?

(a) Easy recharge □ (b) Recharge coupon

□

69
Q.8. where did you get information about the Retailer?

(a) News paper □ (b) Magazine □ (c) TV Ad □

(d) Friends □ (e) Colleagues □ (f) Online □
(g) Leaflet □ (h) Phone □ (i) Others □

Q.9. Where did you get the information about the

product/service?

(a) News paper □ (b) Magazine □ (c) TV Ad

□
(d) Friend’s □ (e) Colleagues □ (f) online
□
(g) Leaflet □ (h) Retailer □ (i) others

Q.10.Why has you chosen your service provider?

(a) Reference □ (b) Prior experience □

(c) Network □ (d) Provide clear voice
□
(e) Excellent service □ (f) Price promise □
(g) Availability □ (h) others □

Q.11. which cellular network service is best?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.12. which cellular service has best voice clarity?

70
(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.13. which cellular service offers you cheapest call

charge?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

71
Q.14. which cellular service offers you best customer support?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

72
10.2. : Retailer Questionnaire:
Section A (Personal Details)

Gender :

Male □ Female □

Age :

15-20 □ 21-25 □ 26-30

□
31-35 □ 36-45 □ 46 and
above □

Qualification:

Secondary school □ University Graduate

□
Post Graduate □ Others □

Section B (Retailer View about the cellular services)

Q1 which prepaid cellular service you offers?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q2 which company is giving best performance?

(a) Aircel □ (b) Airtel □ (c) BSNL □

73
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

74
Q3 Which service provider advertisement is more
attractive?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.4. Which brand offers best sell margin?

(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.5. Are FOs cooperative with you?

(a) Yes □ (b) No □

Q.6. Are you getting current information regarding the

brand Aircel properly?

(a) Yes □ (b) No □

Q.7. How much you are satisfied with our service?

(a) Satisfied □ (b) No Satisfied □

Q.8.Which cellular service provider is getting the highest

convergence in term of activation?

(a) Aircel □ (b) Airtel □ (c) BSNL □

75
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

76
Q.9. How many times FOs visits you in a week?

(a) 1 - 2 times □ (b) 2 - 4 times □ (c) 4 - 6 times □

(d) 7 times □ (e) never visit □

Q.10. Does FOs come and arrange the promotion material

such as posters, banner leaflets etc. on their own?

(a) Yes □ (b) No □

77
 DATA ANALYSIS
&
INTERPRETATION

78
11. : DATA ANALYSIS &
INTERPRETATION

11.1. Consumer Questionnaire: Section A

(Personal Details)
Gender:

Male □ Female □

Female, 33

Male, 67

Age
15-20 □ 21-25 □ 26-30
□
31-35 □ 36-45 □ 46 and above □

Age

25
20
15
10 \
5

0
15-25 25-35 35-45 45 and above
No. of people 25 25 25 25

79
Qualification :
Secondary school □ University Graduate
□
Post Graduate □ Others □

Q ualification:

40

30

20
\
10

0
Se co n d a ry U nive rsity Post Gra du a te Oth ers
N o . o f pe o p le 25 35 25 15

Profession :
Professional □ Business Class □ Official
□ Self Employed □ Students □

80
Unemployed □

Profession:

35
30
25
20
15
\
10
5
0
P rofession B us iness Self Unem ploy
Offic ial S tudents
al Clas s E m ployed ed
No. of people 20 35 15 7 15 8

81
Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?

(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Which Prepaid Cellular services you are using?

30
25
20
15
10
5
0
Relianc Tata Vodafo
Aircel Airtel BSNL Idea MTS
e Indicom ne
Respondent 20 27 4 6 3 18 16 6
Inference: In term of performance Aritel is leading but Aircel
has hit the 2nd place followed by Reliance & Tata Indicom.

Q.2.Would you like to change your service provider?

(a) Yes □ (b) No □

Would you like to change your service provider?

No, 35

Yes, 65

82
Q.3. Why do you want to change your Mobile
product/service?
(a) New technology □ (b) Change Tariff
□
(c) Change network □ (d) Lost □
(e) Others □

W h y d o y o u w a n t to c h a n g e y o u r M o b ile p ro d u c t/s e rv ic e ?

12
10
8
6
4
2
0
N ew Change Ch ang e
L o st O th e rs
T e c h n o l o g T a riff N e tw o rk
R e sp o n d e n t 5 10 12 4 4

Q.4. To which Prepaid Cellular services you want to

move on?
(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.5.Which of the following do you use other then

calling?

83
(a) SMS □ (b) MMS □ (c) Internet
□
(d) Games □ (e) Wall Paper □ (f) Downloading □
(g) Others □

84
Q.6. From where you Get your recharge done or buy
recharge coupons.
(a) Retailer □ (b) Online
□

Q.7. you prefer to have easy recharge or buy recharge

coupons?

(a) Easy recharge □ (b) Recharge coupon

□

Q.8. where did you get information about the

Retailer?
(a) News paper □ (b) Magazine □ (c) TV Ad □
(d) Friends □ (e) Colleagues □ (f) Online □
(g) Leaflet □ (h) Phone □ (i) Others □

85
Sources of gathering information of distribution channel
New s Paper
friend and tv
8.6%
5.4%
Magazines
Others
3.2%
7.5%
TV Advertisement
9.7%
retailer
19.4%

Leaflet
2.2% Friends

Online 31.2%

9.7%
Colleagues

3.2%

86
Q.9. Where did you get the information about the
product/service?
(a)News paper □ (b) Magazine □ (c) TV Ad □
(d) Friend’s □ (e) Colleagues □ (f) online
□
(g) Leaflet □ (h) Retailer □ (i) others

Q.10.Why has you chosen your service provider?

(a) Reference □ (b) Prior experience □
(c) Network □ (d) Provide clear voice
□
(e) Excellent service □ (f) Price promise □
(g) Availability □ (h)others □

Q.11. which cellular network service is best?

(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Q.12. which cellular service has best voice clarity?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

87
Q.13. which cellular service offers you cheapest call
charge?
(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

88
Q.14. which cellular service offers you best customer
support?
(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

89
11.2. : Retailer Questionnaire:
Section A (Personal Details)
Gender :

Male □ Female □

Female, 10

Male, 90

Age :

15-20 □ 21-25 □ 26-30

□
31-35 □ 36-45 □ 46 and above □

Age

40

30

20
\
10

0
15-25 25-35 35-45 45 and ab ove

No. of people 15 40 30 15

90
Qualification:

Secondary school □ University Graduate □

Post Graduate □ Others □

Qualification:

50
40
30
20 \
10
0
Secondary University Post Graduate Others
No. of people 20 45 10 25

Section B (Retailer View about the cellular

services)

Q1 which prepaid cellular service you offers?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Percentag
Brands Status e
Aircel
Airtel
BSNL
Idea
MTS
Reliance
Smart
Tata Indicom
Vodafone
All 100 100%
Total 100 100%

91
Inference: I found that retailers deals with all the service
providers.

Q2 which company is giving best performance?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Best Performance

25

20

15

10
\

0
Relianc Tata Vodafon
Aircel Airtel BSNL Idea MTS
e Indicom e
Respondent 17 24 4 10 4 16 15 10

Inference: In term of performance Aritel is leading but Aircel

has hit the 2nd place followed by Reliance & Tata Indicom.

Q3 Which service provider advertisement is more

attractive?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

92
 Advertisement Attractiveness:

30

25

20

15

10 \

0
Relianc Tata Vodafon
Aircel Airtel BSNL Idea MTS
e Indicom e
Respondent 15 30 4 10 12 7 5 17
Inference: In term of visibility Aircel is in 3rd position which
should be taken care of.

93
Q.4. Which brand offers best sell margin?
(a) Aircel □ (b) Airtel □ (c) BSNL □
(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Maximum Margin

25

20

15

10
\

0
Relianc Tata Vodafon
Aircel Airtel BSNL Idea MTS
e Indicom e
Respondent 22 15 4 15 12 9 8 15
Inference: In term of giving maximum margin or value to the
retailers Aircel is at 1st place.

Q.5. Are FOs cooperative with you?

(a) Yes □ (b) No □

Cooperative FOs
N0, 18

Yes, 82

Inference: Retailers are satisfied with our cooperative FOs.

94
Q.6. Are you getting current information regarding
the brand Aircel properly?

(a) Yes □ (b) No □

Proper Information about "Aircel"

N0, 35

Yes, 65

Inference: The information level is not yet reached to the

maximum level only 65% of the retailers are getting current
information.

Q.7. How much you are satisfied with our service?

95
(a) Satisfied □ (b) No Satisfied □

Satisfied with "Aircel" service

Not Satisfied, 15

Satisfied, 85
Inference: Satisfaction level with the Retailers are quite good,
as 85 out of 100 retailers said that service is satisfactory.

Q.8.Which cellular service provider is getting the

highest convergence in term of activation?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance
□
(g) Vodafone □ (h) Tata Indicom□

Highest Selling Cellular Service Provider

20

15

10

\
5

0
Relianc Tata Vodafon
Aircel Airtel BSNL Idea MTS
e Indicom e
Respondent 20 18 4 15 12 8 8 15

96
Inference: Aircel is converting the maximum Activation’s
among all.

Q.9. How many times FOs visits you in a week?

(a) 1 - 2 times □ (b) 2 - 4 times □ (c) 4 - 6 times □

(d) 7 times □ (e) never visit □

FOs Visits Per Week

7 times and above

4 - 6 Visits

2 - 4 Visits \
1 - 2 Visits

No Visit

0 5 10 15 20 25 30 35 40 45
No Visit 1 - 2 Visits 2 - 4 Visits 4 - 6 Visits 7 times and above

Respondent 0 20 30 40 10

Inference: 40 % retail outlets has been visited by FOs 4-6 times

every week.

Q.10. Does FOs come and arrange the promotion

material such as posters, banner leaflets etc. on their
own?

(a) Yes □ (b) No □

97
 Arrangement of Promotion Material (posters, banner leaflets) by FOs

Yes, 40

No, 60

Inference: In 60% of retail outlets FOs don’t arrange the

Visibility material.

98
 RECOMMENDATION

12. : RECOMMENDATION

99
After analyzing the current practices of the company, consumer
response from the survey and interview with company staff the
following recommendation is the best to change attitude of
customers and attract larger number of customers

Increase retailer store in rural area

The Company has large number of strengths as discussed in

industry analysis. The most potential strength is strong
distribution channel on high street. Rural subscription is
increasing in last few years. The company is already planning to
improve this strength; this will be the best idea for making the
positive belief to the customers and help to increase the existing
strength. The company can capture more new customers by
opening retail stores in small places and advertise in the
adjoining area.

Attract through promotion

TV, news paper, magazines ads are more effective then others as
identified from the consumer and company response That
companies make their 4P’s strategy according to consumer
attitude towards product, promotion, price and placement. The
company should spend more on these media instead of leaflets
and radio ads because consumers attitude towards these are
positive then others. Company can also promote the business
through changing brand belief & offering price promise.

100
Educate customers

After analyzing the customer response and company practices, it

is identified that consumers are changing mobile sets very often
due to high speed of technology innovation. The company should
encourage the existing customers and others to adopt the new
technology and educate them for Product features and benefits.
It has been identified that some of the customers do not know
about the attribute. Demonstration and trial is the effective
source to educate about the new technology. This will directly
influence the consumer attitude towards company.

Training to retailer staff

It has been identified that some of the customers are not

satisfied with the staff help to choose the right product and
services. Company should give the required training to retail staff
about product knowledge and competitor offerings. Make sure
the staff is advising right product and services at the first time
according to consumer requirement. This will help the customers
to evaluate the purchase information.

Obtain customers feedback

Customers are influenced by reference group as discussed in

analysis and it is also identified by the primary research.
Moreover “customer have more power then ever before”.
“Consumers have access more information than ever before”.

101
Company should take a feedback from the existing customers
after a regular interval and resolve the problem if any. To retain
customers it is necessary to obtain consumer feedback and
offered the product and services according to their feedback.

If they will be satisfied then they come to repeat purchase and

moreover they will give the reference to others for buying
product from the company. This would be also help to make
brand loyalty of the company.

102
CONCLUSION

103
13. : CONCLUSION

To consider the research aim and objectives, researcher

identified that random sampling strategy will be the best for
research for collecting the primary data collection.

The research will be surveyed among 100 mobile phone users

living in chapra area.

The secondary data has been collected from the text books,
electronic journals and company annual reports.

The value of information would be importance of the decision

making in development for making marketing strategy for to
increase number of customers.

104
LIMITATION

105
14. : LIMITATION

Due to financial situation of the research, the time frame for

completion and the sampling constraints the following are
identified:

Financial constraints:

Financial constraints meant that the study could not be

conducted on a State scale.

Time constraints:

The study has strict deadline which had to be met in order to fulfil
the completion requirement. If there were no time limit and
financial constraints, or time frame in which to complete the
study, the researcher would done a national level survey in order
to get a more effective sample of the population.

106
REFERENCES

107
15. : REFERENCES

For the completion of the project report references are being

made mostly from the corporate office and from books and
different websites:

BOOKS:

1. Philip Kotler , Marketing Management

2. Marketing Research, Grun & Tull

3. Marketing Research, Aaker Kumar Day

4. Marketing Research, Seymor

5. Business India, Business World Etc

INTERNET SITES:

1. www.aircel.co.in

108