Project Report

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

On

SUPERVISOR:
Mrs. GAYATRI CHOPRA

SUBMITTED BY:
Enrolment no:
SANDEEP SINGH

FACULTY, FMS 08061237006

MBA 4th semester (Finance)

SESSION 2009-11 DIRECTORATE OF DISTANCE EDUCATION

FACULTY OF MANAGEMENT STUDIES NEWDELHI

Table of Contents
Content
1: 2: 6 3: 9 4: 11 5: 6: 27 INTRODUCTION REVIEW OF LITERATURE PROBLEM STATEMENT & OBJECTIVES NEED & SIGNIFICANCE OF STUDY SCOPE OF STUDY INDUSTRY PROFILE 6. 1. Mobile Industry in India 6. 2. Industry Analysis 6. 3. Pestle Analysis 6. 3. 1. 6. 3. 2. 6. 3. 3. 6. 3. 4. 6. 3. 5. 7: 36 Political Economic Social Culture Technology Environmental 28 -

Page
13 4 7 10 12 - 13 14

COMPANY PROFILE

7.1. Firms marketing efforts 7. 1. 1. 7. 1. 2. 7. 1. 3. 8: Product Price Promotion 37 50

MAJOR COMPETITORS 8. 1. AIRTEL 8. 2. IDEA 8. 3. BSNL 8. 4. VODAFONE 8. 5. RELIANCE

9:

METHODOLOGY 9.1. Sampling Size 9.2. Collect the Data

51 - 56

10 : QUESTIONNAIRE 10.1. Customer Questionnaire 10.2. Retailer Questionnaire 11 : Data Analysis & Interpretation 65 79 11.1. Customer Questionnaire 11.2. Retailer Questionnaire 12 : Recommendation 13 : Conclusion 14 : Limitation 87
3

57 - 64

80 - 83 84 - 85 86 -

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)

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 cooperation 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.
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SANDEEP SINGH Enrolment No 08061237006

INTRODUCTION

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.

An attitude is a learned given object.

predisposition to behave in a

consistently favourable or unfavourable way with respect to a

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

REVIEW OF LITERATURE

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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.

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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."

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PROBLEM STATEMENT & OBJECTIVES

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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

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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

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NEED & SIGNIFICANCE OF STUDY

16

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.

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SCOPE OF STUDY

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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.

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INDUSTRY PROFILE

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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 in (IRT) all was the formed foreign in 1923. After independence 1947, 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 in telecommunications equipment manufacturing. 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.
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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

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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 revolve around and challenges , a majority of them 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 DOTs technical advisory board rose the bar on the minimum subscriber norms for operators to qualify for additional spectrum. The new subscriber norms were around

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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 Indias (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.

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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

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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

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6.2 : INDUSTRY ANALYSIS

Mobile operators with subscribers wise & market share wise of India July 2009 S.N o.
1 2 3 4 5 6 7 8 9 10

Service Providers
Bharti Airtel Reliance Comm Vodafone BSNL Idea Cellular Tata Teleservices Aircel MTNL Spice Telecom BPL

Subscribers(M Market n.) (%)

82.92 59.57 58.76 45.28 32.81 31.02 15.38 4.1 3.71 1.88 24.67 17.72 17.49 13.47 9.76 9.23 4.57 1.22 1.1 0.56

Share

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Subscribers(Million) 90 80 70 60 50 40 30 20 10 0
A ia ir t nc el e C om m V od af on e B S Id N ea L Ta C ta el T lu el la es r er vi ce s A ir c el M S pi T N ce L T el ec om B PL

Subscribers(Million)

Total Subscriber base in August 2009:

R el

ha r ti

Indian Telecom Statistics

Total telephone subscriber base Over all Tele-density Fixed-line user base Wireless user base (GSM+CDMA+WLL(F)) GSM Subscribers CDMA Subscribers Monthly additions (Wireline + Wireless) Monthly additions (Wireline) Monthly additions (Wireless) Broadband subscribers
(Subscriber numbers in million)

(Aug 2009)
452.91 38.88% 37.66 415.25 298.15 105.51 11.44 -0.15 11.59 6.4

Top 10 mobile Countries:

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Ran k 1 2 3 4 6 5 8 7 9 10

Operato r China India US Russia Indonesi a Brazil Japan German y Italy Pakistan

Subscribers million 650 392 278.99 189.61 154.757 153.7 112.05 106 92.8 91.44

in

Data Date 9-Jan 9-Mar 8-Dec 9-Feb 8-Dec 9-Mar 8-Mar 8-Sep 8-Oct 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

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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%

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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.

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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 match32

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.

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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

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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

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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 worlds 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,

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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. Aircels 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.

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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. Aircels 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 Aircels current and proposed footprint is illustrated below. MISSION STATEMENT : We are conditionally committed to exceeding our customers 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

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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 (May2009)

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Service Provider Reliance Telecom AIRCEL Bharti Airtel Dishnet Wireless ABTL (IDEA) Vodafone Essar BSNL

Suscriber 2931877 2877220 8159469 1502738 1201417 1251331 2772670

7. 1. : Firms marketing efforts

The firms marketing activities are a direct attempt to reach, inform, and persuade These consumers activities to are buy and use its products/services. 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 consumers 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
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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 consumers 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 payas-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.

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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

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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 companys image or its individual product. The main tools of PR are publications, events, news, speeches, publicservices 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.

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MAJOR COMPETITOR

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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-toend 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 Consulting and for Enterprise corporates). Services Leading (Telecommunications

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 entered

46

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

47

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 Bhartis existing and proposed mobile circles, according to COAI reports. Bharti TeleVentures was the first private sector operator to provide fixedline 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 mobile circles, VSATs, ISP and international bandwidth access through our gateways and landing station. AirTel, Indias premier mobile service today created history by becoming the first service provider in the country to reach the

48

coveted 1 million-customer mark in one mobile circle. AirTels operations in Delhi, is thus the largest mobile operation in the country and it has more than 50% market share in Indias largest mobile territory. Taking forward AirTels 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 AirTels 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

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

49

8. 2. : IDEA

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;

50

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 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.

51

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 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.

52

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, webinfotainment, high-speed video downloads, java game downloads and other Internet-based multi-media experiences on their EDGEenabled 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 recognized platform. as the The GSM Association of the Awards GSM are Oscars mobile

industry. Idea is the only Indian operator to have won an award at

53

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 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
54

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.

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 Northeastern 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
55

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 certified integration and Maintenance Training of Switching & Transmission Networks and also has a world class ISO 9000 Telecom 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

56

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. the worlds leading international Vodafone Group is communications mobile

corporation. It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 303 million proportionate customers worldwide. The Essar Group is Vodafones 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

57

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 singlehandedly built Indias 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. 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 Dhirubhais 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.

58

METHODOLOGY

59

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.

60

9.1. : Sampling size :

For the Customer:Control Characteristic Sex: Male Female Age: 15-25 25-35 35-45 45 and above Population Composition 67 33

25 25 25 25

Note: Sample unit have been taking into confederation the people who are using pre paid service only.

For the Retailer:Control Characteristic Sex: Male Female Age: 15-25 25-35 35-45 45 and above Population Composition 90 10

15 40 30 15

61

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 firms sales or credit department. The secondary data has been already collected from annual reports. Primary sources Qualitative research

62

 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 consumers mind. It is done to access and also get a rough idea about the persons 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.

63

By qualitative research consumers 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 cumulativeall resulting in knowledge useful for explaining, predicting, and controlling the effects of teaching on student outcomes .

64

QUESTIONNAIRE

Customer Questionnaire Retailer Questionnaire

65

10.1. : Customer Questionnaire:

Section A (Personal Details)
Gender : Male Age 15-20 31-35 Qualification : Secondary school Post Graduate Profession : Professional Self Employed Students Unemployed Business Class Official Others University Graduate 36-45 46 and above 21-25 26-30 Female

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using? (a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom (b) Airtel (e) MTS (c) BSNL (f) Reliance

66

Q.2.Would you like to change your service provider? (a) Yes (b) No

67

Q.3.

Why

do

you

want

to

change

your

Mobile

product/service? (a)New technology (c) Change network (b) Change Tariff (d) Lost

(e) Others (please specify) Q.4. To which Prepaid Cellular services you want to move on? (a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom (b) Airtel (e) MTS (c) BSNL (f) Reliance

Q.5.Which of the following do you use other then calling? (a) SMS (d) Games (g) Others (e) Wall Paper (f) Downloading (b) MMS (c) Internet

Q.6. From where you Get your recharge done or buy recharge coupons. (a) Retailer Q.7. you prefer to have easy recharge or buy recharge coupons? (a) Easy recharge
68

(b) Online

(b) Recharge coupon

Q.8. where did you get information about the Retailer? (a) News paper (d) Friends (g) Leaflet (b) Magazine (e) Colleagues (h) Phone (c) TV Ad (f) Online (i) Others

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

Q.10.Why has you chosen your service provider? (a) Reference (c) Network (e) Excellent service (g) Availability (f) Price promise (h) others (b) Prior experience (d) Provide clear voice

Q.11. which cellular network service is best? (a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom (b) Airtel (e) MTS (c) BSNL (f) Reliance

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

69

(a) Aircel (d) Idea (g) Vodafone

(b) Airtel (e) MTS

(c) BSNL (f) Reliance

(h) Tata Indicom

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

70

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

(a) Aircel (d) Idea (g) Vodafone

(b) Airtel (e) MTS

(c) BSNL (f) Reliance

(h) Tata Indicom

71

10.2. : Retailer Questionnaire:

Section A (Personal Details)
Gender : Male Age : 15-20 31-35 above 36-45 46 and 21-25 26-30 Female

Qualification: Secondary school Post Graduate Others University Graduate

Section B (Retailer View about the cellular services) Q1 which prepaid cellular service you offers? (a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom (b) Airtel (e) MTS (c) BSNL (f) Reliance

Q2 which company is giving best performance? (a) Aircel (b) Airtel (c) BSNL

72

(d) Idea (g) Vodafone

(e) MTS

(f) Reliance

(h) Tata Indicom

73

Q3

Which

service

provider

advertisement

is

more

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

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

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

74

(d) Idea (g) Vodafone

(e) MTS

(f) Reliance

(h) Tata Indicom

75

Q.9. How many times FOs visits you in a week? (a) 1 - 2 times (d) 7 times (b) 2 - 4 times (e) never visit (c) 4 - 6 times

Q.10. Does FOs come and arrange the promotion material such as posters, banner leaflets etc. on their own? (a) Yes (b) No

76

DATA ANALYSIS & INTERPRETATION

77

11. : DATA ANALYSIS & INTERPRETATION

11.1. Consumer Questionnaire: Section A (Personal Details)
Gender:
Male Female

Female, 33

Male, 67

Age
15-20 31-35 36-45
Age
25 20 15 10 5 0 No. of people 15-25 25 25-35 25 35-45 25 45 and ab ove 25 \

21-25

26-30 46 and above

78

Qualification :
Secondary school Post Graduate Others University Graduate

Qualification:
40 30 20 10 0 No. of people Secondary 25 University 35 Post Graduate 25 Others 15 \

Profession :
Professional Business Class Students Official Self Employed

79

Unemployed

Profession:
35 30 25 20 15 10 5 0 Profession Business al Class 20 35 Official 15 Self Students Employed 7 15 Unemploy ed 8 \

No. of people

80

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?
(a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom (b) Airtel (e) MTS (c) BSNL (f) Reliance

Which Prepaid Cellular services you are using?

30 25 20 15 10 5 0
Aircel Respondent 20 Airtel 27 BSNL 4 Idea 6 MTS 3 Relianc Tata Vodafo e Indicom ne 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

81

Q.3.

Why

do

you

want

to

change

your

Mobile

product/service?
(a) New technology (c) Change network (e) Others (d) Lost (b) Change Tariff

Why do you want to change your Mobile product/service?

12 10 8 6 4 2 0 New Technolog 5 Change Tariff 10 Change Network 12 Lost 4 Others 4

Respondent

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

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

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

82

(a) SMS (d) Games (g) Others

(b) MMS (e) Wall Paper

(c) Internet (f) Downloading

83

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 (d) Friends (g) Leaflet (b) Magazine (e) Colleagues (h) Phone (c) TV Ad (f) Online (i) Others

84

Sourcesofgatheringinformationofdistributionchannel
New sPaper f riendandtv 5.4% Others 7.5% retailer 19.4% Leaf let 2.2% Online 9.7% Colleagues 3.2% Friends 31.2% 8.6% Magazines 3.2% TVAdvertisement 9.7%

85

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

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

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

Q.11. which cellular network service is best?

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

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

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

86

Q.13. which cellular service offers you cheapest call charge?

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

87

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

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

88

11.2. : Retailer Questionnaire:

Section A (Personal Details)
Gender :
Male
Female, 10

Female

Male, 90

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

Age
40 30 20 10 0 No. of people 15-25 15 25-35 40 35-45 30 45 and ab ove 15 \

89

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

Section B (Retailer View about the cellular services)

Q1 which prepaid cellular service you offers?
(a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom
Percentag e

(b) Airtel (e) MTS

(c) BSNL (f) Reliance

Brands
Aircel Airtel BSNL Idea MTS Reliance Smart Tata Indicom Vodafone All Total

Status

100 100

100% 100%

90

Inference: providers.

I found that retailers deals with all the service

Q2 which company is giving best performance? (a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom
Best Performance
25 20 15 10 5 0 Aircel Respondent 17 Airtel 24 BSNL 4 Idea 10 MTS 4 Relianc e 16 Tata Vodafon Indicom e 15 10 \

(b) Airtel (e) MTS

(c) BSNL (f) Reliance

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

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Advertisement Attractiveness:
30 25 20 15 10 5 0 Aircel Respondent 15 Airtel 30 BSNL 4 Idea 10 MTS 12 Relianc e 7 Tata Vodafon Indicom e 5 17 \

Inference:

In term of visibility Aircel is in 3 rd position which

should be taken care of.

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Q.4. Which brand offers best sell margin?

(a) Aircel (d) Idea (g) Vodafone (h) Tata Indicom
Maximum Margin
25 20 15 10 5 0 Aircel Respondent 22 Airtel 15 BSNL 4 Idea 15 MTS 12 Relianc Tata Vodafon e Indicom e 9 8 15 \

(b) Airtel (e) MTS

(c) BSNL (f) Reliance

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

Ye s, 82

Inference: Retailers are satisfied with our cooperative FOs.

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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: information.

The information level is not yet reached to the

maximum level only 65% of the retailers are getting current

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

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(a) Satisfied

(b) No Satisfied

Satisfied with "Aircel" service

Not Satisfie d, 15

Satisfie d, 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 (d) Idea (g) Vodafone (h) Tata Indicom (b) Airtel (e) MTS (c) BSNL (f) Reliance

Highest Selling Cellular Service Provider

20 15 10 \ 5 0 Aircel Respondent 20 Airtel 18 BSNL 4 Idea 15 MTS 12

Relianc e 8

Tata Vodafon Indicom e 8 15

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Inference: among all.

Aircel is converting the maximum Activations

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

(a) 1 - 2 times (d) 7 times (b) 2 - 4 times (e) never visit (c) 4 - 6 times

FOs Visits Per Week

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

2 - 4 Visits 30

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

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

Yes, 40

No, 60

Inference: In 60% of retail outlets FOs dont arrange the Visibility material.

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RECOMMENDATION

12. : RECOMMENDATION

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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 on most high potential street. strength is strong is distribution channel Rural subscription

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 4Ps 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.

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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.

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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.

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CONCLUSION

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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.

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LIMITATION

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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.

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REFERENCES

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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

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