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BRAND MANAGEMENT PROJECT
Category Attractiveness & Product Opportunity
Phase- I Submitted to: Prof Saju Epean Thomas
Submitted by: ANINDYA SANKAR KUNDU 08PMP00418 08/12/2009
BRAND MANAGEMENT PROJECT 201 0
The fast track growth of the Indian telecom industry has made it a key contributor to India’s progress. India adopted a phased approach for reforming the telecom sector right from the beginning. Privatisation was gradually introduced, first in valueadded services, followed by cellular and basic services. An independent regulatory body, Telecom Regulatory Authority of India (TRAI), was established to deal with competition in a balanced manner. This gradual and thoughtful reform process in India has favoured industry growth. Today, there are more than 225 million telecom subscribers in India. Every month, 6-7 million new subscribers are added. Upcoming services such as 3G and WiMax will help to further augment the growth rate. Furthermore, the Indian economy is slated to sustain its 7-9 per cent growth rate in the near future. This is supported by the political stability that the country is experiencing currently. India’s demographic outlook makes it one of the largest markets in the world. A conducive business environment is also created by a favourable regulatory regime. There exists enormous business potential for telecom companies on account of the country’s low teledensity,
The report below contains the Category attractiveness and product opportunity for the brand management project submitted in partial fulfillment of the requirements of MBA Program. 2
BRAND MANAGEMENT PROJECT 201 0
which is close to 19 per cent presently. The Indian telecom industry is growing at the fastest pace in the world and India is projected to be the second largest telecom market globally by 2010.
1TELECOM SECTOR: A GLOBAL SCENARIO The Indian telecom market has been displaying sustained high growth rates.2 INDIAN TELECOM SECTOR 4 . For the first time in India.1. the growth of cellular subscriber base has exceeded the fixed line subscriber base. The expansion of the telecom industry in India has been fuelled by a massive growth in mobile phone users. which has reached a level of 10 million users in December 2002. The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. Riding on expectations of overall high economic growth and consequent rising income levels. A combination of factors is driving growth in the telecom market. it offers an unprecedented opportunity for foreign investment. This exponential growth of mobile telephony can be attributed to the introduction of digital cellular technology and decrease in tariffs due to competitive pressures. India is the fourth largest telecom market in Asia after China. Japan and South Korea. However. promising rich returns on investments. an increase of nearly 100 per cent in 2002.1. 1. cellular penetration is still 1 per cent as compared to world average of around 16 per cent.BRAND MANAGEMENT PROJECT 201 0 1. The Indian telecom market size of over US $ 8 billion is expected to increase three fold by 2012.
the field of telephonic communication has now expanded to make use of advanced technologies like GSM. both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers. with the provision of broadband services in the fixed line segment and GPRS in the mobile arena. This profile of concentrated urban population will facilitate customized telecom offerings from operators. like any other industrial sector in the country. Starting from telegraphic and telephonic systems in the 19th century. has gone through many phases of growth and diversification.BRAND MANAGEMENT PROJECT 201 0 Indian Telecom sector. VSNL in the fixed line and Airtel. The Public Players and the Private Players share the fixed line and the mobile segments. Currently the Public Players have more than 60% of the market share. Idea.3 DEMOGRAPHIC CHARACTERS :-According to the Vision 2020 document of the Planning Commission of India. 1. MTNL. Day by day.1. long distance calls and the international calls.1. The major players of the telecom sector are experiencing a fierce competition in both the segments. The major players like BSNL. CDMA. Traditional telephones have been replaced by the codeless and the wireless instruments. Reliance in the mobile segment are coming up with new tariffs and discount schemes to gain the competitive advantage. 5 . Vodafone (Hutch). 1. The urban population is expected to rise from 28 per cent to 40 per cent of total population by 2020.4 MARKET-SIZE. The Indian telecom sector can be broadly classified into Fixed Line Telephony and mobile telephony. Future growth is likely to be concentrated in and around 60 to 70 large cities having a population of one million or more. PLAYERS AND TRENDS:Both fixed line and mobile segments serve the basic needs of local calls. and WLL to the great 3G Technology in mobile phones. Tata. the country will witness continued urbanization.
Internet surfing. too. 6 . Camera's. has recently taken some bold initiatives to retain its market share and. Radio services have also been incorporated in the mobile handsets. CDMA. This is likely to lead to even more people going for cellular services and more and more use of the value added services. manufacturers and associated services companies. if possible. both local and long distance. etc. A host of factors are contributing to enlarged opportunities for growth and investment in telecom: an expanding Indian economy with increased focus on the services sector population mix moving favourably towards a younger age profile urbanization with increasing incomes Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside developed economies that are marked by saturated telecom markets and lower GDP growth rates. in the foreseeable future. expand it. The value added services provided by the mobile service operators contribute more than 10% of the total revenue.1. 1.enabled multimedia messaging. infrastructure vendors. MP3 Players. landline telephony is likely to remain popular. and with slashing down the roaming rentals. MTNL. the largest landline service provider. However. multimedia applications. video generators.5 OPPORTUNITIES:India offers an unprecedented opportunity for telecom service operators.BRAND MANAGEMENT PROJECT 201 0 Mobile phone providers have also come up with GPRS. and mobilecommerce The much-awaited 3G mobile technology has entered in the Indian telecom market. The GSM. WLL service providers are all upgrading them to provide 3G mobile services. along with other applications like high storage memory. The 2009 budget has brought further relief to the customers with the reduction in the tariffs. multimedia games.
.BRAND MANAGEMENT PROJECT 201 0 1. Smaller companies can compete effectively only in small markets or by providing specialty services 1.doc 7 .6 COMPETITIVE LANDSCAPE:Demand is driven by technological innovation and by growth in business activity. and have the financial resources required to build and maintain a large network.gov. Large companies have big economies of scale in providing a highly automated service to large numbers of customers.in/reports/genrep/..1./1_bg2020. The profitability of individual companies depends on efficient operations and good marketing.7 RESEARCH INDUSTRY GROWTH RATING:The First Research Industry Growth Rating reflects the expected industry growth relative to other industries:- Ref:-planningcommission.1.
The first operational land lines were laid by the British Government in Calcutta in the year 1881 that was first time Telecom sector introduce and 1985 department of Telecommunication was established.in/reports/genrep/..doc 1.8 Product‘s Stage in PLC:- As we can see above the mobile industry graph shows that telecom industry is still at growing phase in the product life cycle.BRAND MANAGEMENT PROJECT 201 0 Ref:-planningcommission.gov.1. In the year 1997 telecom regulatory authorities of India was created then in 1999 mobile services were launched in India and national new telecom policy is 8 ./2_bg2020..
1. Phase III (2005-2007) Every year industry should grow at pace of grater than 4. According to a release by TRAI by June 2006 the total subscriber base has reached 153. Phase II (2003-2005) This phase marked a sustained increase in tele-density each year which can me been in the Graph in chapter 1.92% in the 50 year.95%.1 PEST Analysis:Political – As markets are deregulated.1. a percentage which was greater than the total growth of 1. both operators and manufacturers are free to act independently of government 9 . Phase I (1998-2003) Actual growth started from this phase. 1. After that telecom industry has been growing like cats and dogs.9 Seasonality in sales and sales cyclicity :In the Telecom sector seasonality in sales (mobile subscriber) doesn’t play much role because we have found out since 1998 to 2007 mostly each and every quarter growing and the growth in succeeding quarter is more than its preceding one. TRAI was set up in 1997 and the first tariff order was issued in 1998.BRAND MANAGEMENT PROJECT 201 0 adopted and in the year 2000 DOT becomes a corporation BSNL.37 million and teledensity has reached to a level of 13. The reforms becomes effective from 1998.2. the growth in tele-density in 2003-2004 was approximately 2%.5% in the tele-density to achieve the target of 250 million subscriber by December 2007. The mobile industry can be reforms into three phases.
government intervention does take place.BRAND MANAGEMENT PROJECT 201 0 intervention. GPRS. Players are now allowed to offer both mobile and fixed-line services under a single license after paying an additional entry fee. GSM. Important regulations and their impact on the Indian telecom industry Unified Access Service License Regime (UASL) Unified licensing marked the end of the license regime in the Indian telecom industry. Technological – There have been many global advancements in technology such as UMTS. WAP. Economic – With incomes rising. people have more disposable income. looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor. In Countries like India and China where Partial regulations exist.4G etc. Users are more aware of mobile phone handset choice and advancements due to increased information availability. 3G. It helped in aligning convergent technologies and services.WIMAX. which enables consumers to be more selective with their choice of mobile phone. The establishment of the Unified Access Licensing Regime (2003) eliminated the need for different licenses for different services. Social – The rise of the so-called information society has made telecommunications increasingly more important to consumers. both in terms of work and leisure. This does not take into account 10 .
USO helps in building the telecommunication infrastructure in the rural areas.BRAND MANAGEMENT PROJECT 201 0 national and international long-distance services and Internet access services. TRAI has phased out access deficit charges from this year. bringing it down from the current 31 percent. only basic service providers were under the purview of USO. Access Deficit Charges (ADC) ADC makes it mandatory for a service provider at the caller’s end to share a percent of the revenue earned with the service provider at the receiver’s end in long-distance telephony. This subsidises the infrastructure costs of the service provider enabling access at receiver’s end. This system was put in place to bridge the wide gap between urban and rural teledensity. Revision in the ADC regime is expected to be followed by further tariff reduction in telecom services. Initially. Although it increases the cost burden for the telecom companies. especially because rental for fixed-line services is low. 11 . All telecom operators are bound to contribute 5 percent of their revenues to this fund. Universal Service Obligation (USO) The USO policy was laid along with NTP ’99 to widen the reach of telephony services in rural India. Later. In a move to bring down telecom tariffs drastically. its scope was expanded to include mobile services also.
BRAND MANAGEMENT PROJECT 201 0 CHAPTERII COMPETITOR ANALYSIS 2.1.1 PORTER’S FIVE FORCES 12 .
BRAND MANAGEMENT PROJECT 201 0 The nature of competition in an industry is strongly affected by suggested five forces. The stronger the power of buyers and suppliers. organizations would be expected to compete less fiercely. In concentrated industries. as proposed by Porter. the more intense competition is likely to be within the industry. identified five forces which would impact on an organization’s behaviour in a competitive market. than in fragmented ones. These include the following: • • • • • The rivalry between existing sellers in the market The power exerted by the customers in the market The impact of the suppliers on the sellers The potential threat of new sellers entering the market The threat of substitute products becoming available in the market Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate 13 . and make higher profits. Main Aspects of Porter’s Five Forces Analysis The original competitive forces model. according to this model. and the stronger the threats of entry and substitution.
helps determine the extent to which the value created by an industry will be dissipated through head-tohead competition. if the exit barrier is high it increases the difficulty of any organization to leave the industry sector. and their swift obsolescence makes liquidation pretty difficult. 1998). The most valuable contribution of Porter's “five forces” framework in this issue may be its suggestion that rivalry. When financing opportunities are less readily 14 . while important. When capital markets are generous. The dimensions of this parameter are determined by: High Exit Barriers: In any industry. the threat of competitive entrants escalates. which is the most obvious of the five forces in an industry. Force 1: The Degree of Rivalry The intensity of rivalry. is only one of several forces that determine industry attractiveness. • This force is located at the centre of the diagram • Is most likely to be high in those industries where there is a threat of substitute products. So it makes any difficult to any willing to leave company to leave the industry. To cover high fixed costs.BRAND MANAGEMENT PROJECT 201 0 the appropriate strategies to be successful in their market (Thurlby. High Fixed Cost: The industry also suffers from high fixed cost which makes the entry barrier also very high for the industry. The telecom industry suffers from high exit barriers. and existing power of suppliers and buyers in the market Now let us understand the implication of degree of revelry in Indian telecom sector. Networks and billing systems cannot really be used for much else. We will examine these concepts as described by Porter’s 5 force model and as applied to Indian telecom industry simultaneously. mainly due to its specialized equipment. It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. serious contenders typically require a lot of cash.
Meanwhile. are as follows: • Economies of scale: In telecom industry the economies of scale exists from the supplier side. • 6-7 players in each region • 3 out of 4 BIG-Four present in each region Very less time to gain advantage by an innovation: Every company in this industrial sector in investing a huge amount in research and development and marketing strategy. adjusted for the cost of capital. Eg. The threat of new entrants is usually based on the market entry barriers. In contrast.BRAND MANAGEMENT PROJECT 201 0 available. entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position. Price war in telecom industry has commoditized the market that branding has taken a backseat. except intrinsic physical or legal obstacles. the pace of entry slows. Caller tunes. ownership of a telecom license can represent a huge barrier to entry. That is why 15 . The most common forms of entry barriers. This makes the industry rivalry most prominent. life time card Price wars: The price war is really very fierce in this industry. That is why we see any offer launched by any company is counter attacked by other companies very soon. rise above zero. Force 2: The Threat of New Entrants Both potential and existing competitors influence average industry profitability. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits.
is based on the substitution of need.) Online Chat . • Generic substitution (Video suppliers compete with travel companies). • Distribution channels: Distribution channels are also providing a major determining factor. And new connection offers more benefits to the customers. retooling and redesigning that are incurred when a customer switches to a different type of product or service. fax).BRAND MANAGEMENT PROJECT 201 0 companies try to increase their subscriber base at drastic rate. as cost of new connection is really low. the costs in areas such as retraining. Now let us discuss this concept for telecom industry. It also involves: • Product-for-product substitution (email for mail. These channels are not loyal to any company and competitors can easily access them and make out work for them. Force 3: The Threat of Substitutes The threat that substitute products pose to an industry's profitability depends on the relative price-to-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. • Substitution that relates to something that people can do without (cigarettes. • Customer Switching Costs: Customer switching cost is very low. alcohol). Messenger etc. The threat of substitution is also affected by switching costs – that is. The potential major substitutes for telecom industry are as follows: 16 VOIP (Skype.
The most important determinants of buyer power are the size and the concentration of customers. In the context of Indian telecom industry we can say that the following points influence the buyer power: 17 Lack of differentiation among the service provider Cut throat competition Customer is price sensitive Low switching costs . small suppliers. as it is the case with retailers a grocery stores. such as small farming businesses supplying large grocery companies. • Low cost of switching between suppliers. • Present where there is a large number of undifferentiated. Kippenberger (1998) states that it is often useful to distinguish potential buyer power from the buyer's willingness or incentive to use that power. Force 4: Buyer Power Buyer power is one of forces that influence the appropriation of the value created by an industry. willingness that derives mainly from the “risk of failure” associated with a product's use. though none of the above a major threat in current scenario. large players in the market. • This force is relatively high where there a few. Other factors are the extent to which the buyers are informed and the concentration or differentiation of the competitors. So the telecom industry has to keep a close look on these substitutes. such as from one fleet supplier of trucks to another.BRAND MANAGEMENT PROJECT 201 0 Email Satellite phones All of these technologies have a huge potential.
In the drawback of Indian telecom industry the following should be kept in mind: Large number of suppliers: The industry basically has a large number of suppliers. Limited pool of skilled managers and engineers especially those well versed in the latest. 18 . which helps them to choose from a lot of options. So they try to select the best option to deliver the value to the customers and to have a competitive advantage from their competitor. the analysis of supplier power typically focuses first on the relative size and concentration of suppliers relative to industry participants and second on the degree of differentiation in the inputs supplied. As a result.BRAND MANAGEMENT PROJECT 201 0 Number portability to have negative impact Force 5: Supplier Power Supplier power is a mirror image of the buyer power. Overall influence on the industry – medium. This basically helps them to reduce the initial investment a lot. Medium cost of switching since changing their hardware would lead to additional cost in modifying the architecture. Shared tower infrastructure: Technology has helped them to share the tower infrastructure. The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power.
1.BRAND MANAGEMENT PROJECT 201 0 2.0 3.31 9.56 17.7 10. No.2 8.9 9.5 20.5 1 2 3 4 5 6 7 8 19 .93 8.55 13.96 4.99 Revenues Million 36962 12501 21742 10873 96752 97616 3804 2717 Revenue % of total market revenue 34 11.73 2.97 18.2 Major Players S. Wireless Group Bharti Reliance Vodafone BSNL Tata IDEA Aircel Miscellaneo us Market share (%) 23.5 2.
The savings through the setting of tower companies will partly go towards the higher capex and opex costs from more stringent spectrum allocation norms for the incumbents. The Telecommunications sector has been consistently adding more than 10 million subscribers every month. The Department of Telecommunication (DoT) is has very aggressive plans to increase the pace of growth. targeting 500 million by 2010.com/2009/07/15/top-12-wireless-operators-in-india-bysubscribers/ Review of Wireless (GSM and CDMA) Services The Wireless Industry crossed 452.51 million CDMA subscribers.indianomics.91 million-subscribers mark as by end of May 2009. The addition of players like Aircel. Virgin Mobile and a few more yet to roll out their services like Swan Telecom.00% as compared to 58. All the private operators GSM as well as the CDMA operators have been very consistent in their performance. The subscriber addition rate has been strong in the last 12 months but the regulatory developments will increase competition and thus curtail the long-term growth rates of individual companies. India’s rural telephone density has been languishing at around 16.12% growth during the year 2007-08.15 million GSM and 105. Loop Telecom (formerly BPL). and Unitech Telecom the pressure on 20 .91 million comprise of 298. However the recent regulatory developments have been negative for the telecom companies as it has increased the number operators per circle which intensified the competition. Most of the expansion in subscribers is set to occur in Rural India. This total subscribers base of 452.67million subscribers were added with a growth rate of 50. Tata Docomo. During the financial year 2008-09 around 130.BRAND MANAGEMENT PROJECT 201 0 http://www.54.
com/. GS and C MA Mark Occupancy M D et CDMA 26% GSM 74% www..BRAND MANAGEMENT PROJECT 201 0 established players is set to increase./mobile-services-to-mobilise-the-indiantelecom-sector The market share of different GSM operators as on May 2009 is displayed below: 21 ..reportbuyer. So also with the implementation of MNP and 3G spectrum allocation the Service providers have to be the best service caterers to hold on to their market shares.
the latest entrant into the GSM market had to get some innovative and low priced packs to attract customers to switch to Tata Docomo even before the actual implementation of MNP.. The state owned BSNL is third in the competition with 16% of the share in the GSM market. and can be a potential threat to Airtel and Vodafone.reportbuyer.D. Tata Docomo: Tata Docomo.of Docomo their target is to achieve 100million customers in the next three years. The market share of different CDMA operators as on May 2009 is displayed below: 22 .com/./mobile-services-to-mobilise-the-indian-telecomsector The Market leader in GSM sector being Bharti Airtel with 32% of Market share followed by Vodafone at 24%. As Toshinari Kuneida.M. and “pay for only what you have used”. Thus they are trying to attract customers even before the implementation of MNP. The success for Tata Docomo lies in winning third generation(3G) airwaves in as many circles as possible and bringing their internationally famed expertise into the domain.. So is the case for Tata Indicom which recently launched its GSM services by the name Tata Docomo in 18 circles in India. The innovativeness here is they are branding their service on the basis of “value for each second”.BRAND MANAGEMENT PROJECT 201 0 www. As a part of this they are offering 1paise calling per second for local( and STD calls as a limited period offer). CDMA market majors Reliance has got licence to operate(in 14 circles and 4 metro cities) in the GSM band and they have launched their services in the market. The existing players face a tough competition as Reliance and Tata (with Docomo) have existing distribution channels and brand name.
82% of the total CDMA market.67%..BRAND MANAGEMENT PROJECT 201 0 www.8 billion in India.2 billion while mobile revenues will reach US$ 39. Virgin Mobile : Virgin Mobile as it says is “India’s ‘first’ national youthfocused mobile service”. followed by Tata Teleservices(Tata Indicom and Virgin together) which has a share of 33..reportbuyer./mobile-services-to-mobilise-the-indian-telecomsector Coming to the CDMA market. by 2012. Reliance Communication is a tough market player to challenge with around 59. Virgin Mobile branded services are being offered to the Indian consumers by Tata Teleservices through a brand franchise with Virgin Mobile. They are targeting the Youth segment by offering schemes like get paid for incoming calls.com/. Industry Revenue (2002-2010) According to a Frost & Sullivan industry analyst. marketing and servicing of “Virgin Mobile” branded products for the youth segment. India has 23 . pay for the first message and get 100 messages free for that day. fixed line revenues are expected to touch US$ 12. Virgin Mobile India will provide Tata Teleservices with experience and expertise in designing.
taking the total user base to 297 million. Bharti televentures have positioned themselves as intergrated players with desire to have a presence in basic (wire line and wireless) as well as national and international long distance. tapping category a cities. They have followed a top down approach. Vodafone/ BSNL (market challengers) Vodafone with a 24% market share has followed a differentiations strategy by offering its customers value added services (VAS).php 2. Year 2002-03 2003-04 2004-05 2005-06 2006-07 2008-09 200910(forecasted) a.cellular-news. a growth of 3.11 per cent over the additions made the previous month.BRAND MANAGEMENT PROJECT 201 0 become the second country in the world to have more than 100 million CDMA-based (code division multiple access) mobile phone subscribers after the US. do not include the GSM subscriber additions made by Reliance Telecom. however. Revenue(US$ billion) 9 10 11 15 20 32 43 http://www. The figures. Airtel has emerged as a market leader.3 Strategy Competition:Airtel (market leader) With a 32% market share. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding nearly 9 million new subscribers in April 2009. which has 157 million CDMA users.com/story/37761. BSNL is a state owned 24 .1.
Reliance/TaTa/ Aircel/Shyam Telecom/ Spice/TaTa DO CO MO/ (market Nichers) They are the niche players who cater to very small niche markets. The most important factors are: 25 . 2. The following diagram shows how a SWOT analysis fits into an environmental scan: SWOT Analysis Framework Environmental Scan / Internal Analysis /\ Strengths Weakne sses | SWOT Matrix \ External Analysis /\ Opportunities Th reats Strengths Here we will analyze the strengths of the telecom industry as a whole. As such. It simply follows the leader and the challenger after the technology becomes successful. it is instrumental in strategy formulation and selection.4 SWOT ANALYSIS The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. which are not served by the big players.BRAND MANAGEMENT PROJECT 201 0 player with market share of 16% and has been able to leverage its low cost position in small towns and B and C category cities.1. IDEA (market follower) With a 15% market share it has positioned itself as a ‘value for money’ brand.
Previously telecom service 26 . The industry has to target India’s huge population to grow. • Low customer retention power: The customer retention power for telecom industry is really low and the customer changes their service provider company very soon. Thank goes to the IITs which produce world class engineers. • High Cost of Infrastructure: The infrastructure cost of telecom industry is very high. as the number of population without telecom service is also very high. Opportunity • Population: The population of India is really an opportunity of telecom service providers. So Indian telecom sector has abundance of technological knowhow.BRAND MANAGEMENT PROJECT 201 0 • Technology is advanced and easy to implement: For telecom industry the technology is really advanced and more and more investment is done on technology to get world class infrastructure and knowhow to put in this field. • Changing Population psychograph: Population psychograph is also changing. Recently the telecom sector is going to add 3G spectrum as its latest up-gradation. • Management Team has prior experience: The management team controlling Indian telecom sector in really efficient. Weakness The weaknesses of the Indian telecom sector are as follows.
Countries like Europe. • Increased Penetration Level: All the organizations of the industry are trying to increase their penetration level. Messenger etc. • New Technology can change the market dynamics: A lot of new technologies are coming. Some of the examples are follows: VOIP (Skype.BRAND MANAGEMENT PROJECT 201 0 was thought as an emergency service. The urban Indian population gives a real growth prospect to the industry. now it has become an essential part of life in our country. FDI inflow by 2004 was 9950.94 cores in telecom. as it requires investments of Rs 700 –900 million over the next 5 years. which may already have pose a threat for the existing players in the industry.) Online Chat Email 27 . Korea. as India is seen as fastest growing telecom market in world. Then even have the potential of changing the entire industry dynamics or even create substitute of the telecom services existing. and Japan telecom are likely to enter India. This move is positive for the sector. Threats The treats to the industry are the following: • Government Policies – Government may provide licenses to many foreign operators. • FDI: The foreign direct investment in telecom has been hiked up from 49% to 74%. in other word to increase the tele-density of the country.
BRAND MANAGEMENT PROJECT 201 0 Satellite phones To summarize the SW0T analysis we can draw the following framework for telecom industry: CHAPTERIII Customer Analysis 28 .
They pay premium for it. Their major focus for telephone is just to communicate. They want customized features and services. o Segment 2: Particular customer segment wants value for money in terms of effective call rates. 3. o Segment 3: This customer segment telecom product is luxury. Customer Analysis: • We can divide customers into various segments based on their needs. Effective call rates and customized plan can work well.1. For them it is their status symbol. o Segment 1: this segment of customer wants latest innovations in their mobile phone. They utilize some value added services. We can term it as BOP. It is a large segment. They know almost all the latest thing in telecom industry. Description of customer Problem: 29 . o Business segment: This segment’s needs are distinctly different from other segments. This group is interested in experimenting.1. Need-gap Analysis: 188.8.131.52.BRAND MANAGEMENT PROJECT 201 0 3.
3. • Another profile which we want to target is business class. Profiling of new customers for a new product: • Our customers are first movers in technology. They are innovators and early adopters.1. Our customer belongs to cadre. We provide high end service to industry for networking. • We target youth customers those want to obtain every advanced technology available into the market.BRAND MANAGEMENT PROJECT 201 0 • o o o o o o o o o o o Major problems of customer Hiding of information (regarding charges) Lack of advance technology Value proposition is less Promotional calls Expensive Value added services Offerings are not communicated properly Poor after sales services for major players Network jam Call getting disconnected Varying schemes and amount of schemes available Lack of personalized product 3. 30 . life style and quality of life. who spend more money on gadgets. We provide business solutions with technology.
with about 464. and to transform it into a country of technologically aware people.08% (July 2009) Projected teledensity: 626 million.3 Basic/ Product Idea • 31 Superior technological service to customers . According to survey conducted by Nokia. telecom sector is expected to emerge as single largest component of Country’s GDP with 15.38 million (July 2009) 612 million mobile subscribers. Sales Potential: Indian Telecommunication industry. is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections. • • • • • • • Teledensity: 41.4% contribution by 2014. The idea is to help modern telecommunication technologies to serve all segments of India’s culturally diverse society. accounting for a teledensity of around 51 per cent by 2012. Yearly Cell phone Addition: 113.2. 46% of population by 2010. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure.BRAND MANAGEMENT PROJECT 201 0 3.82 million mobile phone connections (June 2009). telecommunication activities have gained momentum in India. 3. For the past decade or so.26 million (2007) Monthly Cell phone Addition: 14.
BRAND MANAGEMENT PROJECT 201 0 • • • • • • Broad band facility Television facility Advanced gaming facility No network jam No call getting disconnected Personalized Services for premium class customers. 32 .
BRAND MANAGEMENT PROJECT 201 0 CHAPTERIV General Comments 33 .
26 million new customers in 2008. with an average 9. 34 . approximately 14. India added 113. It is estimated that by mid 2012. According to Business Monitor International.1. were added during July 2009. General Comments Description of the opportunity The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010.07 million from 464. accounting for a tele-density of around 51 per cent by 2012. This would translate into 612 million mobile subscribers. taking the total number of telecom subscriber base at the end of July 2009 to 479.25 million telephone connections. According to the Telecom Regulatory Authority of India (TRAI). India is currently adding 8-10 million mobile subscribers every month. including wireline and wireless.BRAND MANAGEMENT PROJECT 201 0 4. around half the country's population will own a mobile phone. The country’s cellular base witnessed close to 50 per cent growth in 2008. the largest globally.82 million a month before.5 million customers added every month.
02% in 1948.5% and the subscriber base has crossed 250 million mark. 4. Fixed line services.density has reached by 22. And almost 70% of our population living in rural and semi-urban areas.Global system for mobile (GSM) and code division multiple access(CDMA).2 Feasibility:The telecom sector is one of the fastest growing sectors. now in the year 2007 the tele. It offers three categories of services.3 Possible Hurdles:Regulatory uncertainty surrounding limited mobility and unified licensing casts doubt on the future direction of the India 35 . Huge untapped market is available so there is great scope of improvement.1. New Technology for Indian market. the cellular services is called as mobile service because of its nature of usage . We have an opportunity because still rural and semi rural is covered only 15%-20% by the Telecom companies. Focusing on future market. According to available data the tele-density was only 0. wireless services and cellular services. This is very significant indicator. None of the existing player is providing 3G facilities. there are two types of mobile services networks.1. No additional advantage for the existing player.BRAND MANAGEMENT PROJECT 201 0 It is projected that the industry will generate revenues worth US$ 43 billion in 2009-2010. Bidding process is likely to start soon. 4.
loud speaker phone for illiterates and so on. Airtel. often with tariffs significantly lower than that offered by the cellular operators.Idia and Vodafone have taken up initiatives to provide customized connections to Rural customers like Motor pumps control system. more over huge initial cost to take the telephony in rural and semi-rural market impede the telecom service providers to tap the huge rural market. The service providers have to be different and have to stick to strict service norms and provide excellent customer service in order to hold on to the market share. basic fixed-line operators can use limited mobility to broaden their service portfolio.BRAND MANAGEMENT PROJECT 201 0 telecom industry Regulatory battles are not new to India and the latest one to grab the headlines surrounds 'limited mobility'.88% there is still unexplored market. limited spectrum availability. Lack of infrastructure in semirural and rural areas. Thus there is intense competition in the market but at the same time scope for development in rural areas. The telecom sector is also afflicted by a number of restraints such as sluggish pace of reform process. 36 . Through the use of WLL (wireless local loop) technology. Conclusion Telecom industry is seeing a rise as the trend goes and has potential for growth. Taking into account the tele-density of 38. The competition is fierce with around 10 Service providers in most of the 18 circles and also the implementation of MNP. In a few words Telecom sector has a lot of scope for growth and the customers at the same time have the benefit to choose from a wide range of service providers offering various plans targeted to specific customers.
php d. tutor2u.htm i. http://www.net/goel. www.reportbuyer. http://www. http://www./1_bg2020.in/ 37 . http://www.com/doc/15684486/Marketing-Report-on-Bharti-Airtel g.bharatbook. www.bharatbook.asp?edid=30375 e. j. http://www.efytimes.com/. planningcommission..cellular-news.com/2009/07/15/top-12-wireless-operators-inindia-by-subscribers/ c.com. www.BRAND MANAGEMENT PROJECT 201 0 Annexure:REFERENCES:b. www.icmrindia.gov.net/business/strategy/competitor_analysis.org/casestudies/catalogue/Business%20Strategy/Bharti %20Airtel%20Limited%20and%20the%20Indian%20Telecom%20Sector.ficci.gauravgoel/study-of-telecom-sector h.in/reports/genrep/...com/telecom.htm m.com/efytimes/fullnews.indianomics. http://www.com/productdetail.asp?id=82391 f.doc k..htm n. http://www.scribd.airtel.com/story/37761./mobile-services-to-mobilise-the-indian-telecom-sector-infuture/ l.slideshare.
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