“A PROJECT REPORT ON”

VALUE ADDED SERVICES PENETRATION IN

A report submitted to Delhi Business School, New Delhi

Dissertation submitted in partial fulfillment Master of Business Administration
BY RAJIV RANJAN Roll No.: : DBS/W09-11/074 Batch Jan 2009-2011 Under the Guidance of Mrs. KIRAN MALHOTRA (Faculty of Marketing)

Delhi Business School B-II/M.C.I.E.,Mathura Road , New Delhi Website-www.dbs.edu.in

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ACKNOWLEDGMENT
I am happy to disclose the individuals who have spent their valuable time from their busy schedule for encouraging me in the completion of the project. I express my respect and gratitude to all of them, their fruitful guidance, encouragement, support and supervision had given us a positive dimension for Initiation and completion of this project successfully.

I wish to express our most sincere appreciation and deep sense of gratitude to Mr. RAMESH BAGLA, for their inspiring guidance, encouragement and invaluable help. Their sustained interest, patience, sound counsel and innovative ideas have largely contributed to bring this work into its present form. I am highly indebted to them in this regard and submit my sincere thanks for making their guidance a pleasant experience.

I am also grateful to all those people of sales working in AIRCEL, who directly or indirectly helped me in accomplishing this project.

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Last but not the least I am also thankful to my faculty Mrs. Kiran Malhotra Faculty of Marketing, in Delhi Business School, my honorable internal project guide who has been a constant source of inspiration to me.

(RAJIV RANJAN) 4th Sem. Delhi business School New Delhi.

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PREFACE

The aim of management course is not to produce readymade managers but rather to develop a habit of thinking rationally based upon the scientific principles of management. The post contents and theory of management endeavors to the scientific in nature while its application and presentation in the real business would remain a target to be developed by the individual.

The purpose of introducing the student of management to the business world is to help the student to correlate and integrate the theory practice. The practical training too is essential part of the management course.

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CANDIDATE’S DECLARATION

I here by declare that the work presented in this project report entitled, “VALUE ADDED SERVICES PENETRATION”, in partial fulfillment of the requirements for the award of the degree of DBS in marketing management, submitted in the department of marketing management, in Delhi Business School,New Delhi, under the guidance of Mrs. KIRAN MALHOTRA Faculty of Marketing, in Delhi Business School (NewDelhi).

RAJIV RANJAN

Place

Date
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TABLE OF CONTENTS

Title No

Page

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Introduction…………………………………………...……6 Executive Summary………………………………….… …7 The Role of VAS……………………………………..……8 The future of VAS in India………………………...… …...9 Indian Telecommunication Industry……………...… …….14 About Aircel……………………………………..…… …..18 Latest Services provided by Aircel……………..………….21 Value Added Services…………………………………......22 VAS characteristics…………………………………......…23 Relationship to other services………………………......….24 VAS examples………………………………………….….27 VAS provided by Aircel………………...……………...….37 Product Details……………………………………………..39
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14. 15. 16. 17. 18. 19. 20. 21.

The present study………………………………………..…41 Self Analysis…………………………………………….…42 Observations……………………………………………….43 SWOT Analysis …………………………………………...46 Questionnaires……………………………………….…….53 Sample Questionnaire Form..………………………….…..55 Suggestions………………………………………….……..56 Bibliography……………………………………………….57

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INTRODUCTION

Mobile phones today have moved beyond their fundamental role of communications and have graduated to become an extension of the persona of the user. We are witnessing an era when users buy mobile phones not just to be in touch, but to expert, Thus, there exists a vast world beyond voice that needs to be explored and tapped and the entire cellular industry is heading towards it to provide innovative options to their customers. Spoilt by choice, the mobile phone subscribers are beginning to choose their operators on the basis of the value added services they offer. ess themselves, their attitude, feelings & interests. Customers continuously want more from their phone. They use their cellular phones to play games, read news headlines, surf the Internet, keep a tab on astrology, and listen to music, make others listen to their music, or check their bank balance. The increased importance of VAS has also made content developers burn the midnight oil to come up with better and newer concepts and services. To understand that where this industry is at present and where it is headed,

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IAMAI and IMRB International have jointly prepared the Mobile VAS Report to focus back stage and uncover the trends in the cellular industry, current market status, value chain, competition, market dynamics & expected roadblocks. This is the first publicly available study on Mobile VAS in India and the insights provided herein can be used by both the mobile operators and the content providers to better address the needs of their customers. A timely and strategic action would help nurture the mobile VAS market in India.

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EXECUTIVE SUMMARY
Need for the study
The mobile subscriber base is growing at a scorching pace in India, India is now the 5th country in the world to have crossed the 100 million mark in subscriber base and has in the last two months become the fastest growing mobile market in the world. As average revenue per user decrease from voice drops, and voice becomes commoditized, Telcos are increasingly looking at data as an additional revenue stream. The end users have also embraced VAS and it contributes between 5-10% of the revenues of different Telcos. Thus Mobile VAS has become an important element in the growth of mobile telephony in India. Yet it is also equally true that there is little clarity on business issues and growth seems to be driven by more by inherent market momentum than a concentrated effort on the part of the stakeholders; differences exist even on basic issues like definition for Mobile VAS.

Thus an understanding into the VAS space is needed to help stakeholders give a direction to this wave of growth.

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The Road Ahead

We believe that while the mobile VAS space is all set to grow rapidly, all the stakeholders will have to work together and create a self-sustaining ecosystem for this growth to sustain. Similarly it would take a joint effort of all concerned to address the significant roadblocks and thus unlock the true potential of Mobile VAS in India. The key addressable barriers would be to ensure greater rationality in revenue sharing between Telcos & content developers; ensure copyright protection, develop higher quality content which goes beyond Bollywood and cricket and also to have a focused WAP strategy. We also believe that while pure entertainment service would continue to appeal to the younger consumers, the overall focus for Mobile VAS would shift to utility based services like location information & mobile transactions; as security concerns are addressed mobile transactions will also have a good potential in India.

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THE ROLE OF VAS
This is where the role of VAS (Value Added Services) comes into focus. Operators are facing cutthroat competition and with the call rates in India being one of the cheapest in the world, the margins are very low. Therefore they are looking at VAS as the next wave for growth. It has become the flywheel of telecom growth and a large chunk of revenue for operators is likely to come from VAS services in the years to come. But it is not only effort from operators which is driving the growth of VAS, there are other factors contributing to it. The growth of VAS in India has been helped both by macro level environmental factors and specific market initiatives to develop this category.

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THE FUTURE OF VAS IN INDIA

In India, VAS will see a lot of structural changes, consolidation and emergence of cutting edge services:

 Mobile operators will lose prominence in the value chain as the market

for Content Aggregators will consolidate and with their better bargaining power, this will ensure a revenue shift from Operators to Aggregators in the value chain. The VAS market will reflect revenue sharing arrangement in markets like China more closely.

 In VAS content, we will see revenue from entertainment VAS come

down from the levels. End users want control and interactivity and therefore the applications to look out for in future will be user generated content and mCommerce. However mobile gaming will continue to grow and will contribute a higher share to the VAS pie.

 Regional content is giving a significant boost to the content market

especially in the entertainment category. Regional content is getting popular both in voice and non- voice services. Players have anticipated
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the trend and this is leading to regional content development. With increasing mobility penetration into the heartland of India, significant VAS revenues will be driven by regional content from B & C class towns.

 Internet on mobile will become a more feasible option as leading players

in the internet content space especially configure their sites for access through mobiles; this would be further strengthened by the new trend of mobile domain being set up. Thus GPRS usage should pick up significantly

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INDIAN TELECOMMUNICATION INDUSTRY

The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth.

India has surpassed US to become the second largest wireless network in the world with a subscriber base of over 300 million in April, according to the Telecom Regulatory Authority of India (TRAI).

The year 2008 saw India achieving significant distinctions:

1 2 3 4 5 6

Having the world's lowest call rates 2-3 US cents The fastest growth in the number of 15.31 million subscribers The fastest sale of million mobile phones The world's cheapest mobile handset The world's most affordable color phone Largest sale of mobile handsets

in

4

months in a week US$ 17.2 US$ 27.42 in the third quarter

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SEGMENT-WISE GROWTH

Wireless segment has emerged as the preferred mode of telephone service by the consumers, reflected in the rising share of mobile phone connections to total connections. 1. The share of mobile phones has increased from 71.69 per cent at the end of March 2006 to 87.68 per cent at the end of May 2008.

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2. While total mobile subscriber base was 277.92 million, wire line subscriber base was 39.05 million. 3. Consequently, overall tele-density has increased to 27.59 per cent at the end of May 2008.

India is likely to be second largest mobile market in the BRIC (Brazil, Russia, India and China) nations, with mobile 560 million users

representing the next great growth curve for both mobile and interactive marketing industries, according to a report by

eMarketers.

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INVESTMENT

The booming domestic telecom market has been attracting accelerating amount of investment. During April 2000 to March 2008, cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 3.84 billion, accounting for 6.81 per cent of the total FDI inflows into the country. In fact, the surge in mobile services market is likely to see huge amount of investment implying a mobile in the hands of every second person in the country.

Buyed by the rapid surge in the subscriber base, huge investments are being made into this industry by companies like • • • Maxis Communications-owned mobile service provider Aircel Srei Group's Quippo Telecom Infrastructure Ltd (QTIL) The Central public sector enterprises (CPSEs) have lined up investments for infrastructure sectors like telecom energy and power for 2008-09.

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Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million.

GOVERNMENT INITIATIVES

Government has taken many proactive initiatives which have provided a

framework for the rapid growth of the telecom industry. • • Opening the industry for private sector participation. 100 per cent FDI is permitted in telecom equipment manufacturing through the automatic route. • FDI ceiling in telecom services has been raised to 74 per cent.

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Establishment of an independent regulator - the Telecom Regulatory Authority of India (TRAI)-for the telecom sector.

Introduction of a Unified access licensing regime for telecom services on a pan-India basis.

• •

Implementation of New Telecom Policy (NTP'99). Introduction of Calling Party Pay (CPP) regime and lowering of access deficit coupled with introduction of revenue share regime in ADC.

Introduction of Mobile Number Portability in a phased manner, starting with the fourth quarter of 2008.

Allowing service providers to share active infrastructure.

ROAD AHEAD

• According to a report by Boston Consulting Group, while only one in 20 of the world's first two billion mobile subscribers live in India, as many as one in every four of the next billion subscribers will be an Indian.

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The department of telecommunication estimates the total subscriber base to total 500 million by 2010, out of which 80 million are expected to be from rural areas.

• The Indian telecom industry's revenue, likewise, is estimated to increase, which according to Ernst & Young is expected to total US$ 35 billion, accounting for 3.6 per cent of the total GDP of the country. With such growth projection, this industry is likely to see increased investments. In fact, total investment is projected at US$ 76.6 billion during the eleventh plan period (2007-12). Private sector is estimated to continue its dominant share, accounting for 67 per cent of the total projected investment while public sector accounts for the rest.

TOP PLAYERS
Cellular services can be divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Aircel, Airtel, Vodafone-Hutch, BSNL and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom.
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Surprisingly, CDMA market has increased its market share up to 30% thanks to Reliance Communication. However, across the globe, CDMA has been losing out numbers to popular GSM technology, contrary to the scenario in India

REASONS FOR GROWTH
The two major reasons that have fuelled this growth are: 2. Low tariffs, 1. Falling handset prices regularly.

PROBLEMS FACED
The bottlenecks for ' Indian Telecom Industry ' are: • Slow reform process. • Low penetration. • Service providers’ bears huge initial cost to make inroads and achieving break-even is difficult.

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• Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost. • Huge initial investments. • Limited spectrum availability and interconnection charges between the private and state operators.

ABOUT AIRCEL

Head Office of Aircel Ltd.
International Private company 769, 5th Fl., Spencer Plz., Anna Salai, Chennai, 600002, India ()4428490849, 4428496769 fax, http://www.aircel.com Primary SIC: Radiotelephone Communications, Primary NAICS: Cellular and Other 23

Wireless Telecommunications Description: Communications: Provider of radiotelephone communications service.

LATEST SERVICES PROVIDED BY AIRCEL
Aircel brings unlimited GPRS at Rs.14

To attract youngsters to encash their interest in social networking sites like Face Book Orkut etc, Aircel today announced the launch of Unlimited Mobile Internet Recharge at Rs.14. Earlier Aircel launched Unlimited Mobile GPRS at Rs.98 in Mumbai and in various other circles. If GPRS connection cost is burning a hole in your pocket than one can heave a sigh of relief as Aircel has launched cheapest unlimited GPRS connection for Rs.14 for 3 Days and Rs.98 per month for prepaid customers.

Aircel launches free talk time offer with Nokia phone

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Aircel Mumbai today launched an innovative offer wherein subscribers will have an opportunity to get monthly FREE TALK TIME worth Rs.50 for 6 month and 100 Local & National SMS FREE every month up for 12 Months. Aircel has teamed up with the world’s largest handset maker Nokia the two have entered into a commercial partnership to provide prepaid bundled offers to customers across the Mumbai Telecom Circle.

Aircel brings online cricket game to ENCASH IPL Fever

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After the launch of Virgin Mobile’s Indian Hatke League another telecom service provider Aircel launched the same as Indian Fantasy League(IFL) in association with TIMES group’s. It is a Fantasy Online Cricket game conducting along with IPL matches any one can select players for his/her team and win prizes. Whenever your selected players play well in real IPL, your fantasy team get points. It is completely free and fun. The registration of teams starts from Apr 18, 2009 To May 24, 2009

Now send voice SMS thorough face book

Social

networking sites are lucrative medium for corporate or Brand owner to get people talking about products and generate interest. As a result India’s fastest growing telecom operator Aircel join hands with Face Book and has launched a Voice Message Application for Face Book users. The ‘Aircel
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Voice SMS Face Book Application’ allows networking site user’s to leave each other voice messages instead of plain text posts on the social networking website. So no need to pay for Voice SMS sending to your friend if they are on Face Book!

However, before you jump with joy, let me clarify it again – it’s Web Application for web to web usage. Within 10 days, Aircel has managed to get 190 users to sign up for voice-SMS application.

VALUE-ADDED SERVICES
INTRODUCTION
Value-added services (VAS) are unlike core services. They have unique characteristics and they relate to other services in a completely different way. They also provide benefits that core services can not. A value-added service (VAS) is popular as a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions but, it can be used in ANY service industry (e.g. Web 2.0) for the services providers provide for no cost to promote their main service business. In telecommunication industry on a conceptual level,
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value-added services add value to the standard service offering, spurring the subscriber to use their phone more and allowing the operator to drive up their ARPU. For mobile phones, while technologies

like SMS, MMS and GPRS are usually considered value-added services, a distinction may also be made between standard (peer-to-peer) content and premium-charged content. Value-added services are supplied either in-house by the mobile network operator themselves or by a third-party value-added service

provider (VASP), also known as a content provider (CP). VASPs typically connect to the operator using protocols like Short message peerto-peer protocol (SMPP), connecting either directly to the short message service centre (SMSC) or, increasingly, to a messaging gateway that allows the operator to control and charge of the content better.

VALUE-ADDED SERVICE CHARACTERISTICS
All VAS share the same characteristics: 1. Not a form of basic service but rather adds value total service offering

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2. Stands alone in terms of profitability and/or stimulates incremental demand for core service(s) 3. Can sometimes stand alone operationally 4. Does not cannibalize basic service unless clearly favorable 5. Can be an add-on to basic service, and as such, may be sold at a premium price 6. May provide operational and/or administrative synergy between or among other services – not merely for diversification Every VAS will demonstrate one or more of the above characteristics. Furthermore, a value-added service will never stand in stark contrast to any of the above characteristics. VAS also has a certain time dimension associated with them. Subjectively speaking, a value-added service today becomes a basic service when it becomes sufficiently common place and widely deployed to no longer provide substantive differentiation on a relative basis.

RELATIONSHIP TO OTHER SERVICES

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There are two types of VAS. The first service types are those value-added services that stand alone from an operational perspective. These types of services need not be coupled with other services, but they can be. Many nonvoice services fall into this category. They are often provided as an optional service along with voice services, but they could be offered and used by themselves without the voice service. For example, SMS could be offered and used as a service without voice calling. The second, and arguably more numerous and important type of VAS, are those services that do not stand-alone. Instead, this category adds value to existing services. While it seems implicit in the definition of value-added, this is an important principle that makes value-added services stand apart from other services.

VAS EXAMPLES
There are many services that could be considered "value-added". For discussion purposes, we will a few of these services below.

Push-to-Talk
Push-to-Talk (PTT) is a VAS because it:

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Drives additional revenue to the wireless carrier, but doe not cannibalize existing revenues

• •

Provides differentiated service offerings May be packaged with various other VAS such as MIM to provide even greater value

Call Management Services
This type of service can not stand alone as a service. Instead, it adds value to a core service by allowing the subscriber to manage incoming and/or outgoing calls. For example, value-added service interactions occur when the subscriber receives a call. Many call management services allow the subscriber to establish when, where, and under what circumstances they may be reached by calling parties. This provides value to the core service - voice communications - by way of increased control and flexibility. Depending on the specific commercial situation, this value-added service could be offered as either a premium service (at a premium price) or be bundled with other the core service offering. The benefit of bundling would be to provide a differentiated core service and/or to increase the use of the core service.

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Location Sensitive Billing
This is another example of a service that can not stand-alone. Instead, location sensitive billing (LSB) adds value to the core service by location enabling the core service. Location sensitive billing can be used in conjunction with post-paid, prepaid, and/or VPN based mobile

communications services to establish zones for which differentiated billing treatment may be applied. For example, a "home zone", "work zone", and "premium price zone" could be established to allow an operator to offer differentiated service to its customers. This is viewed as a value-added service to both the customer and the mobile operator. The customer benefits from LSB through his ability to use the mobile phone at preferred rates based on location. The wireless carrier benefits from incremental revenues derived from additional usage and from premium charge zones where there is already high demand and perhaps overly taxed system capacity. While the issue of potential cannibalization of existing service arises, customer behavior and studies indicate a net benefit derived from overall increased usage and revenues. Taken together, call management services and LSB also depict characteristic number six, operational synergy. Call management services add value in
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terms of providing the user options depending on location. For example, the user may want to receive certain calls at the home zone, but not at work, and perhaps receive only urgent calls when traveling or on vacation. LSB provides the additional synergistic benefit of location based billing when the user is in those various locations.

Mobile Data Services
This is an example of a value-added service that does stand-alone. Mobile data services are considered value-added because they depict many of the characteristics discussed earlier.
• • • •

Does not cannibalize existing services Can be offered at a premium price Provides differentiation Can provide synergy with basic service

Largely due to the current state of mobile communications evolution, many non-voice services can be considered to be value-added. However, the extent to which additional value-added services can be layered on top of mobile data services will determine the limit of their value. For example, many non-voice services will have even greater value through
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personalization. Two of the most significant ways to personalize wireless services are through location enabling them and making them personal profile driven.
Mobile data services are utilized to obtain information, content, and to perform transactions. All of these activities are more meaningful if they are tailored to the individual. Location based services add value by way of putting the data into a location context for the user. Personal profiles further enhance the value through Personalization.

VALUE ADDED SERVICES PROVIDED BY AIRCEL
Pocket Internet.

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Non-stop downloads of your favorite stars' Wallpaper, latest Polyphonic Ringtones, MP3 tones, True tones, Music Videos, Movie videos, Themes, Movie Themes and Mobile games only on Aircel pocket internet.

What’s more, activating this service is free and browsing the portal is charged just @10p/10Kb. Please do check your handset compatibility for downloads.

GPRS PLAN OF OUR COMPTITORS

Airtel

Vodafone

Idea

BSNL

Unlimited internet (unlimited surfing, uploading & downloading) in

Rs 499 monthly rental for first 500 MB usage and 5p / 10KB usage charges after that Rs 199

Zero Rental plan2p/KB for WAP(wireless application protocol) & Internet .

Unlimited internet (unlimited surfing, uploading & downloading) in
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Rs 450

monthly rental and 5p / 10KB usage charges

Rs. 1 Daily Rental1 p/KB for Internet . Rs. 20 Daily Rental Unlimited Internet

Rs 230

MISSED CALL ALERT

Want to know who called you when your mobile was switched off or out of coverage area? After subscribing to the monthly service, you will receive alerts on your mobile for all the missed calls at no extra cost. Subscription Charge: Rs. 15/month.

DIALER TONES
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• Caller Ring Back Tone (CRBT) • Aircel introduces Dialer Tunes! Get rid of boring tring tring and make your callers listen to latest tunes. Dial 56500, Registration Rs.30/month, call Rs.6/min & Rs.15/song.. Song validity is for a period of 90 days.

LIVE ASTROLOGY

Astrology service is a voice based LIVE SERVICE, where AIRCEL customers can call at Rs. 9/min and talk to formally trained & experienced ASTROLOGERS.

MUSIC ON CALL

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• Now listen to music of your choice from the list of hit numbers without any interruption with Aircel’s new "Music on Call". • Just pay & use by dialing IVR 54321 @ Rs.2 / minute Subscription pack through IVR 543213 (Toll Free) where in you can subscribe to monthly pack @ Rs. 30 with 30 minutes free usages.

DOCTOR ON CALL

• ‘Doctor-on-call' provides access to quality medical advice from the comfort of your home/ office. Gets instant advice on medical/ health

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and wellness queries from a panel of doctors specializing in various fields. Doctor on Call service on 54887 – Rs. 9/min (60 second pulse).

VOICE STATION

• Aircel 55500 service offers you a host of never before services - from music on your mobile to tit-bits about celebrities. All you need to do is call 55500 from your Aircel mobile and follow the simple instructions to enter a world of information and entertainment. • Music Messaging and Ringtones • Prayers • Astrology Service • News • Sports • Jokes

Call rates Rs. 6/min.
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MULTIMEDIA MESSAGING SERVICE

• Multimedia Messaging Service (MMS) is a store and forward messaging service that allows mobile subscriber to exchange multimedia messages with other mobile subscriber. With this facility now start sending picture (images), audio & video clips with MMS. • MMS charges at Rs.3/MMS,

SUBCRIPTION SERVICES

Subscription Send Service Keyword News Headline + SUB NEWS Charges To 58000 Rs 7/week Alerts Time

Twice a day10:30 &

40

Breaking News Cricket NEWS & SUB CRI SCORES Jokes Alert Astro Pack 58000 Rs 7/week

16:40 Ball by Ball 9:00 update Once a Day 13:30 Once a Day 13:00 10:15 & Thrice a

SUB JOKES 58000 Rs 7/week SUB ASTRO 58000 Rs 7/week <SUNSIGN>

Stock Alert

SUB STOCK 58000 Rs 7/week Day

13:00 & 17:00

Though of the SUB THO Day Alerts Mehfil-ESUB 58000 Rs 7/week Timepass/Shayari SHAYARI Love Express Beauty Tips SUB BTIP Alerts Health Tips SUB HTIP Alerts Receipe Tips SUB RTIP Alerts Fun Unlimited SUB FUN Alerts Regional News SUB RNEWS 58000 Rs 7/week Alerts
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58000 Rs 7/week

Once a Day 9:30 Twice A day 13:00 & 14:55 11:15 & 14:00

SUB LOVE

58000 Rs 7/week

Once a Day

58000 Rs 7/week

Once a Day 13:45

58000 Rs 7/week

Once a Day 17:30

58000 Rs 7/week

Once a Day 15:20 10:00 &

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Once a Day 14:45 Once a Day 14:50

Ayurvedic Tips SUB ATIP Alerts Amazing Facts SUB AF Alerts Numerlogy Alerts Guru Granth SUM NUM1 58000 Rs 7/week TO NUM9 SUB GURU 58000 Rs 7/week Rs 7/week Rs 7/week Rs 7/week Rs 7/week Once a Day 7:00 Once a Day 6:40 Once a Day 6:40 Once a Day 8:45 Once a Day 8:45 Once a Day 13:45 58000 Rs 7/week Once a Day 12:30 58000 Rs 7/week Once a Day 7:30

Sahib Alerts Geeta Shloakas SUB Geeta 58000 Holy Bible Alerts SUB BIBLE 58000 Quran Alerts SUB QUR 58000 Ram Charit SUB RAM 58000 Manas Alerts Friendship SUB 58000 Messages Alerts FRIENDS Career Guru Pack SUB CG

Rs 7/week

Once a Day 14:00 10:00 &

58000 Rs 7/week

Twice a day 14:00 11:00 &

Fundoo Pack Super Sports

SUB FNP

58000 Rs.30/month Twice a day 16:00 10:00 &

SUB SSP Pack Word-a-Day Bihar News

58000 Rs.30/month Twice a day 15:00 Once a Day 9:35 Once a Day 11:40

News - Bengal

SUB WORD 58000 Rs 7/week SUB 58000 Rs 7/week NEWSBH SUB 58000 Rs 7/week NEWSBN

Once a Day 11:40
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SUB News - Kerela News – Kernataka News Maharashtra News - NCR News - North East News - Punjab NEWSPUN SUB News - Rajasthan NEWSRAJ SUB News - TN NEWSTN SUB News - UP NEWSUP SUB News - Gujrat NEWSGJ SUB News - AP NEWSAP SUB News - J&K Aduilt Jokes NEWSJK SUB AJ 58000 Rs 7/week 58000 Rs 7/week Once a Day 12:40 Once a Day 10:00
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58000 Rs 7/week NEWSKER SUB 58000 Rs 7/week NEWSKK SUB 58000 Rs 7/week NEWSMAH SUB 58000 Rs 7/week NEWSNCR SUB 58000 Rs 7/week NEWSNE SUB 58000 Rs 7/week

Once a Day 11:40

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58000 Rs 7/week

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58000 Rs 7/week

Once a Day 11:40

SMS Charges: Rs.3/SMS

Voice Station

» Voice Station (Call 55500) Aircel 55500 service offers you a host of never before services - from music on your mobile to tit-bits about celebrities. All you need to do is call 55500 from your Aircel mobile and follow the simple instructions to enter a world of information and entertainment. The service recognises your voice and gives information based on the command given by you. Music Messaging and Ringtones Browse through the rich selection of music across the various categories and languages and listen to your favorites while on the go, also you can dedicate songs with a personal message to any Aircel number. You can download ringtones of these
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songs. We have wide collection of music based on occasions like birthdays, valentines, Rakhi, Diwali, Holi, New Year and song collections on Latest hits, Classic, Romantic Hits Prayers Perform pooja from your Aircel mobile. Listen to an exhaustive collection of devotional songs like Supbrapatham, Bhajans, Amman Songs, Gayathri & Gurbani. Astrology Service You can check your horoscope for the day, by entering your birth date. Astro info is updated every day.

News Get the latest news updates. Information is available across Regional, State, National and International categories. Calls to 55500 services will be charged at Rs.6/min. Conditions Apply.

Sports Get the latest news and information about the happening in the sports world, like live commentary, scores, schedules etc.

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Jokes Smile with us by listening to the jokes. We have exhaustive collection which will make you burst in laughter for sure. Call rates Rs. 6/min.

PRODUCT DETAILS
Local Rate Cutters
1. Rs. 19- Aircel to Aircel call charges in night (11pm to 6 am) is Rs.

0.10/min.

2. Rs. 29- All local calls charges is Rs. 0.50/min.

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3. Rs. 49- All local calls charges is Rs. 0.50/min and Aircel to Aircel

call charges in night(11pm to 6 am) is Rs. 0.10/min. Aircel to Aircel call charges in day is Rs. 0.25/min.

STD Rate Cutters

1. Rs.15- STD call rates to Bihar, Punjab and Delhi are Rs. 1/min.

2. Rs. 18- STD call rates to Maharashtra, Goa and Mumbai are Rs.

1/min.

3. Rs. 30- All STD call rates are Rs. 1/min.

ISD Rate Cutters

Rs.70- ISD call rates are as followMalaysia & Singapore: 3.00 Saudi Arabia, Bahrain & Qatar: 7.00 Oman-8.20, Sri Lanka: 5.50 China & South Korea: 4.00
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US/CAN (except Alaska, Hawaii & Guam): 2.00 US (Others): 5.00 UK (Fixed): 3.75

SMS Pack
1. Rs. 27- 300 Local and National SMS free. 2. Rs 60- 2000 Local SMS free. 3.

Minute Packs

1. Rs.11- 25 Local Aircel to Aircel minutes free. 2. Rs.31- 100 Local Aircel to Aircel minutes free. 3. Rs.45- 200 Local Aircel to Aircel minutes free. 4. Rs.55- 100 local minutes free for all network. 5. Rs.65- 65 STD minutes free. 6. Rs.79- 100 Local Aircel to Aircel minutes and 100 local minutes for

all networks.

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THE PRESENT STUDY

Market for the Project
The activity has been carried out under AIRCEL. I carried out my project within AGRA CITY of UTTAR PRADESH state where target segments are working people and new generation boys and girls.

Significance/Needs of the Project
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This project was undertaken as a part of organization learning for MBA students to understand assigned in order to analyze the, market scenario of AIRCEL with special reference to AGRA city. This project also helps Aircel in taking their corporate decision. This project would also help AIRCEL to recognize the main strength and weaknesses and would also help to increase its customer’s base by adopting a better marketing strategy. The findings and recommendation of the project would prove to be very vital from the point of AIRCEL and would help them to increase their sales and better role in their services.

Scope of the Project

Through the project work AIRCEL can take a better knowledge about the market scenario regarding people perception and preference towards communication sector as compared to other brands.

Research Methodology
In order to know the market scenario of AGRA City regarding to AIRCEL one set of Questionnaires were administered at the canopies which were organized at different locations.

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Research Design
In order to understand the likings of the people which are the most important to study the communication market scenario a (survey research) is carried on.

Exploration of Document
Exploration of documents or survey of documents will be made from various sources like Magazines and journals.

Data Collection through Questionnaire
Primary data have been collected personally from the runners and feeders through questionnaire. The respondents have been asked to fill up the questionnaire and more over data collection process also includes oral interview.

Sampling Design & Sampling Size
The elements of research of population or universe of interest are the people choice about the communication market scenario.

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SELF ANALYSIS

1. I promoted the Value Added Services of Aircel by visiting retailers

shop with Distributor Sales Manager (DSM) at different places of Agra.

2. Tried to understand and analyze the problems of Retailers and

Customers related to Value Added Services.

3. Educated the Retailers and Customers about Value Added

Services.

4. Sold new connections and promote the Value Added Services like

Pocket Internet, Rate Cutters and SMS packs through Canopy.

5. Tackled the customer’s problems related to the Pocket Internet

during canopy activity.

6. Started new outlets of aircel at different locations of Agra hence

generating revenues for the company.
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7. Participated in telecalling to customers and convinced them to use

our value added services.

8. Took feedback by filling questionnaire and feedback form by

customers in Aircel stores.

OBSERVATIONS

1. The service provided by the AIRCEL related to internet which is

available in Recharge of Rs. 98 is very acceptable by customers.

2. Most of the GPRS users use this plan to use internet in their mobile.

3. Customers query related to Pocket Internet were that they have

problem in GPRS settings installation in their handsets.

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4. Most of the customers are not able to use Internet service with their

PC or Laptop. It creates dissatisfaction to customers.

5. The disconnection of the call between callings creates a negative

impact on the customers mind; most of customers are facing this problem.

6. Many times it happens when customer calls to Customer Care for

solving their problems the phone is not received by any executive.
7. Aircel provides STD Rate Cutter at Rs. 30 which reduces the STD

calls at Rs 1/min. But our competitor like Idea provides the STD Rate Cutter at Rs. 54 in which reduces the STD call rate to Rs. 0.75/min.

SWOT ANALYSIS
Strength

Aircel provides Low call rates like Re.1 for first minute, 60p. for next another minute and 40p. for rest of the call duration in a continue call.

Low rate of Rate Cutters vouchers like Rs.29 and Rs. 49.

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All the rate cutters vouchers works in UP WEST as well as in UP EAST also where our competitors does not gives this facility.

• Free Roaming service in Delhi for first 3 months.

300 local and national SMS at just Rs.27 only where other competitors provides only local SMS at this price. Moreover 2000 local SMS at just Rs. 60 only.

Minimum Rate of Internet GPRS service at only Rs.98 (POCKET INTERNET) for 30 days.

Aircel provides voucher of Rs.14 of internet voucher for the validity of 3 days in which the customers can access the internet in their handsets and PC and check the service of Aircel.

• Unlimited surfing and Downloading are free with PC.

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Aircel provide unlimited calling and sms on the same network with the recharge of Rs 225 only and also the customer’s get local calls at 50 paisa only and STD in just 1 Rupee only.

Aircel give 100 local minutes only at Rs. 55 and can use to all network but our other competitors give these minutes to only own network.

• Aircel provides 65 minutes in just 65 Rs. Only.

Weakness

Network problem in main city Agra.

There is no network coverage in rural areas.

• Problem in internet speed on computer.

Service problem like some customers complained that they already recharged with Rs 98 and received GPRS settings but they are not able to access internet.
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Opportunity

Indian market is too vast that we can grab this opportunity and we can spread our services to maximum customers.

Can cover the rural area to mature potential from that area.

• There are so many opportunities in value added services.

If Aircel provide a proper service and speed of GPRS internet for our customers then it will be very beneficial for our good sales.

There are so many opportunities in value added services like 98 and 14.

At this time limited numbers of people are using internet services and we are providing this service at a very low cost in order to increase our customer base we need to improve the quality of the service.
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Threats

Customers are facing many problems with the network and unsatisfied with services which could lead to drawbacks of connections.

STD rates are high. We have to reduce STD rates or reduce the rate of STD rate cutter because other competitors like idea are providing STD rate cutter in just Rs 54 and the STD rates is 75 paisa/min.

Customers are facing low speed of internet service of our pocket internet.

• Some customers are access the pocket internet with mobile but they are unable to connect it with PC.

Aircel is providing our services at very low cost which could be a threat for us if any competitor took advantage and start giving these

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services at same or low cost then we can loose our present and future customers.

QUESTIONNAIRES

1.

Which Mobile service you use?

Company Name Aircel Airtel Idea

In Number 14 58 42

Percentage 7% 29% 21%
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BSNL Vodafone Reliance Gsm Total
60 50 40 30 20 10 0 Aircel 14 58

33 27 26 200

16.5% 13.5% 13% 100%

42 33 27 26

Idea

Vodafone

In Number

Percentage

2. Are you aware of our Pocket Internet?

Yes

No

60

7

93

Yes
3. Are you using our Pocket Internet?

No

Yes

No

41

59

Yes

No

4. Are you satisfied with the speed of our Pocket Internet?

Yes

No

61

36

64

Yes

No

5. Are you getting information about schemes/offers given by company?

Mostly

Sometimes

Never

9 24

67

Mostly

Sometimes

Never

6.

What is your opinion about call charge of Aircel?

62

Satisfied

highly satisfied

Dissatisfied

16

21

63

Satisfied

Highly satisfied

Dissatisfied

7.

How do you feel about the schemes offered in Aircel? Satisfied Highly satisfied Dissatisfied

63

20

54 26

Satisfied

Highly Satisfied

Dissatisfied

8. Do you find mode of recharge easily available?

Yes

No

7

93

Yes

No

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9. Which features of your service provider you use most?

Voice calls

Text Messages

GPRS

Others

100 80 60 40 20 0

100

76

68 14
Gprs Others

Voice calls

Text messages

10.Are you updated with latest offers & schemes by your service provider? Yes No

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11.Are you satisfied with the amount of information provided by your service provider? Satisfied Highly satisfied Dissatisfied

12

26 62

Satisfied

Highly Satisfied

Dissatisfied

12.How is the customer service of call center in terms of response time and hold time? Excellent Good Average Poor

66

11 18 43

22

Excellent

Good

Average

Poor

13.Any improvement suggestions regarding Aircel.

SAMPLE QUESTIONNAIRE FORM

1.

Which Mobile service you use?

Aircel Vodafone

Airtel BSNL

Idea Reliance GSM

2. Are you aware of our Pocket Internet?

Yes

No

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3. Are you using our Pocket Internet? Yes No

4. Are you satisfied with the speed of our Pocket Internet.

Yes

No

5. Are you getting information about schemes/offers given by company?

Mostly

Sometimes

Never

6.

What is your opinion about call charge of Aircel ?

Satisfied

highly satisfied

Dissatisfied

7.

How do you feel about the schemes offered in Aircel?

Satisfied

Highly satisfied

Dissatisfied

8.

How do you feel about the schemes offered in Aircel?
68

Satisfied

Highly satisfied

Dissatisfied

9. Which features of your service provider you use most?

Voice calls GPRS

Text Messages Others

10.Are you updated with latest offers & schemes by your service provider?

Yes

No

11.Are you satisfied with the amount of information provided by your service provider?

Satisfied

Highly satisfied

Dissatisfied
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12.How is the customer service of call center in terms of response time and hold time? Excellent Good Average Poor

13.Any improvement suggestions regarding Aircel.

(Thank you for filling out the form)

SUGGESTIONS
1. We should cover the rural areas through better network coverage because it has more future customers.

2. We should promote the Rs. 29 of Rate Cutter because other service providers give local rate cutter is more than Rs.29 and call rates are Rs.60/min.
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3. We give free local Aircel to Aircel calling and SMS in Rs.225 but our competitor gives this service in just Rs. 199, so we should give some extra talk time with this pack.

4. Aircel is mind only Pocket Internet but we also promote other Value Added Services like our local rate cutters.

5. Complaint should be directly registered by sending SMS to a toll free number provided by the company.

BIBLIOGRAPHY

www.aircel.in

www.wikipedia.com

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www.mobileindia.info

www.mobigyaan.com

www.telecomtalk.info

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