Professional Documents
Culture Documents
Project Report of Extramarks
Project Report of Extramarks
Project Report of Extramarks
Project Report
On
“EXTRAMARKS EDUCATION PRIVATE
LIMITED”
By
VIBHOR KUMAR
Division- A
Roll No. - 1st Year A57
Course- PGP + SMU
BATCH- 2010-2012
MAJOR: MARKETING, MINOR: I.B
Contact No. - 08871709674
Email- vibhorkumar87@gmail.com,
vibhor.kumar@indiraiscs.in
SUBMITTED To
Declaration
I, Vibhor Kumar, session 2010-2012, do hereby declare that this project report has
been submitted by me in partial fulfilment of the requirement of Post Graduate
Program in Management (DUAL-Marketing & IB) of Indira School of Career
Studies (ISCS), Pune. I also declare that this report is my own and has not been
previously submitted by anyone for the award of any degree or diploma to any
other institution.
Page | 2
ACKNOWLEDGEMENT
The culmination of a project is not an act of chance but a deliberate and
persistent pursuing of seemingly evasive goals and the will to make them
happen. And its only appropriate that the ones who really made a difference
during those arduous moments find a mention of appreciation at the end of
the day.
The success of this project would have remained distant and elusive
without Mr. Amitesh Shukla, State Head of M.P & C.G – EXTRAMARKS
EDUCATION PVT. LTD. Who not only acted as my guide but also
encouraged and challenged me throughout the project period. His priceless
insights, expertise, emphasis on fundamentals and out of the box thinking
along with his strength of character have left a deep imprint not just on this
project but on my personal outlook as well. He proved loyal to his
unblemished reputation of being hands on manager and a typical specimen
of exemplary leader.
I gratefully recall the contributions made by all my colleagues and seniors
at EXTRAMARKS EDUCATION. Their admirable work ethics, camaraderie,
team work and wonderful ways of sharing knowledge have gone a long in
cementing my beliefs in corporate values. It was first class learning on the
Page | 3
floor that was offered to me. Finally, without their enormous support this
project would not have materialized.
Table of Content
Sr. no
Contents
Page no
Company Profile
Product Profile
12
SWOT Analysis
17
Positioning
20
Job Profile
22
Performance Management
System
25
27
Transaction Processing
28
9
Performance Tracking
29
10
30
11
Learning Experience
32
12
Bibliography
34
Page | 4
ABOUT THE COMPANY
Introduction
The After School Study Programme of Extramarks is used by about 7,00,000 lakh
students. These services are offered through internet, which enable students to
study anywhere-any time. Extramarks has also created a community of Students,
Page | 5
Teachers and Parents which has become very popular with the internet users in a
short period.
Presence
With the Registered Office in Delhi and Corporate Office in Noida, Extramarks has
a total of 8 offices in India with a total employee strength (including that of
employed on contractual obligations) of 2600 persons. The company's products
are used in 250 cities all across India. Presence all across India.
Running 6000+ Extramarks Smart Learn Classrooms in over 1300 schools
including leading institutions like Mayo Ajmer, Sophia, Father Agnel, Airforce
School. 350+ team of dedicated academicians - with vast experience in school
management & teaching processes. All learning tools created in-house. Over 7.5
Page | 6
lakhs students studying through Extramarks site. Government Projects like KVs,
JNVs, state government implementing ICT program in over 2500 schools.
Mission
Extramarks aims to provide new age Digital Education Solutions that…
Provide the best learning and teaching tools so that the schools are at par
with the latest developments in education.
Ensure overall development of the child and bring the World into the
classroom- always connected, always updated!
Values
Page | 7
Extramarks believes that the educational aspirations are simplicity in learning and
continuous child engagement. The values that drive us underscore our
commitment are ‘SPICE’.
Page | 8
Management Team
Experienced professionals of respective fields have joined hands to provide
exceptional quality services in the field of school education.
Page | 9
Poonam Jamwal, CMO.
Alumnus of University of Bradford, UK, TSM and Amity University, having over 21
years of experience in education and media marketing. She is Masters in
Education and Business Management. Chevening Scholar with a successful stint
as Director Communications at Amity University and Times Internet Limited, she is
best known for The Times of India NIE's success story.
Page | 10
that of Principal and Director. She was associated with G.D. Goenka Schools as
Director (Academics).
She has conceptualized various innovative learning-teaching methods and has
introduced many rewarding ideas for students.
Page | 11
PRODUCT PROFILE
SMART LEARN CLASS:
Extramarks Smart Learn Classes are taking the schools to 21st century
learningteaching environment. In today's world, when children are technology savvy
from a
young age, the classrooms are remaining in the same traditional state. The
pedagogy used by Extramarks by implementing a layered content structure in the
technology-enabled classrooms using latest technology allows complete freedom
to the teachers to use the technology as per their own choice. Professionals
having years of experience in teaching have developed these teaching modules
which present every subject in a manner which makes the teaching-learning
process very interesting in the classrooms. As the modules are mapped to the
curriculum followed by the school, they not only provide ease of use but also
standardise the education process. By amalgamating state-of-the-art infrastructure
and professionally developed content, Extramarks Smart Learn Classes transform
the conventional classrooms to an advanced student-centric learning environment.
Page | 12
These Technology Enabled Class Rooms use State of the Art Hardware
Infrastructure which include Regular / Short-throw Projector, Interactive Board and
White Board, Server, Computer, UPS, Podium and other installation and net-work
hardware.
To bring forth and nurture the individuality of every child, Extramarks has
especially developed a Continuous and Comprehensive Evaluation (CCE) Report
Card.
CCE includes Formative (FA) and Summative (SA) Assessments. As per the
CBSE guidelines, every SA consists of one test per term and FA includes a
minimum of six tests every term, hence increasing the number of tests three folds
for both teachers and students, as well as making the the task of collecting and
collating data tedious for teachers. This complex task is made easy by Extramarks
CCE Report Card, which has become an imperative tool for the teachers. This
intelligent software, after entering the marks, collates the data automatically and
generates the report card without involving any manual work, in just 3 minutes!
Features
Page | 13
Provides ease and freedom of use to teachers to evaluate each child continuously
and comprehensively.
Intelligent Time Saver: There is no need to collate data in the end. Just by
the entry of marks, the data is automatically collated and generated in the
format of record.
Page | 14
SCHOOL LABS:
It is said that “we learn things the best way when we experience them ourselves”
With the help of demonstration models, list of experiments, detailed manuals and
learning objectives, Extramarks School Labs help students in understanding the
concepts in a better way by letting them experience the theory themselves and
connecting them to the day-to-day life. These experiments inculcate scientific
temperament and logical thinking in them from an early age, thus shaping up their
minds for lifelong learning.
Assessment Centre
Page | 15
This automated module allows teachers to assess the overall performance of the
student. Assessment Center maps the student’s and teacher’s ID and cuts down
the lengthy test preparations, manual checking, result preparations and filing of
documents, giving instantaneous results with a detailed analytical sheet indicating
the weak areas.
Test Centre
Test Center provides automated CCE mapped MCQs testing modules for self
review and improvement with instant results. These can be conducted as per the
flexibility of subject, time, and difficulty level with automated and tabulated
results.
With a data bank of over 250000 questions, Summative Assessments, Chapterwise Q&A,
CCE-based Short / Long Answer tests, CCE-based MCQs, Practice
papers, Model papers and Board exam papers, it helps in identifying Student’s
Improvement Zone as teachers come to know if a student is lacking in
understanding the basic fundamentals of the concept or its application.
Page | 16
SWOT ANALYSIS
STRENGTHS:
Company has both in-school & after school study support programs to help
Students to gain in depth knowledge.
Page | 17
WEAKNESS:
Page | 18
30 billion annually in the sector. Other countries like Malaysia,
Singapore, People s Republic of China
and
United
States
of
Page | 19
92.5% participation with regards to schools and by the private sector with
around 74% participation with regards to colleges. This leaves out ample
market to capture especially in case of schools for the private sector. Also,
many foreign institutions are setting up in the country in collaboration with
Indian institutions thereby increasing competition for the Company.
POSITIONING
Unique Competitive Positioning
Extramarks enjoys a unique competitive position and early-mover advantage in the
Indian education industry, which we believe is capable of rapid and sustainable
long-term growth. We forecast by FY15, a 6x increase in Smart Learn Class
installations, driven by product superiority and peer pressure among schools, and
a significant ramp-up in K-12 schools (225schools). Key risks include excessive
acceleration at the expense of execution and service quality. We initiate with a
BUY and a 12-month DCF-based target price of Rs865.Indian education ± a large
opportunity in the making: A large ‘under-24’ population of ~500m, one of the
world’s lowest GERs (17%), low literacy rates and number of schooling years (5.1)
in the world, promise long-term growth. According to CBSE (Central Board of
Secondary Education), by FY12 India will need ~150,000 more private schools
Page | 20
twice as many as it has at present. Various education services, including more
schools, smart learn classrooms, faculty training, and vocational training²all of
which face serious shortagestoday²will be needed. Upsides for Extramarks from
early start in Smart Class and K-12 businesses: We believe that Smart learn Class
(and similar products) will increasingly be adopted by schools, fuelled by product
superiority (over traditional methods) and peer pressure among schools.
Extramarks product, currently in 2,154 schools (forecast to exceed 14,000 schools
by FY16) is the clear class leader and we foresee a widening lead over
competition. Extramarks is also increasing focus on the K-12 business at the right
time, and we forecast it will be in use in 200+ schools by FY15 (currently 36).
Securitization of Smart learn Class receivables and K-12 execution through the
‘dry management’ models are important steps towards accelerating execution,
which is vital to capturing this opportunity. BUY with DCF TP of Rs865: We believe
that acceleration will gain visibility in the coming quarters (management has
guided for 2500 Smart Class schools in FY11, compared to 355added in 3QFY10).
Longer-term triggers may include Extramarks’s banks foregoing recourse to
Extramarks for securitized receivables. Key risks are Extramarks’s accelerating too
fast for its execution capability to keep pace, as well as increased involvement in
government business purred by the Right to Education Act. BUY with DCF TP of
Rs865 with 11.5% WACC and4% TGR.
Company
Page | 21
1
Educom
Next Education
Extramarks
HCL
Edurite
Class Teacher
Mexus
NIIT
10
Everron
JOB PROFILE
Approaching schools.
Making the proposition to the management/concerned department.
Arranging the demo.
Handling all the documentation work until completion (signing up the
contracts).
Maintaining and reporting the school.
Pre and Post visit reporting to the lined manager.
Assigned School’s data collation.
Page | 22
Maintain strong After Sale Relations with the customers.
School's profiling (All pertinent information about the school).
Generating Leads.
Giving Demo/conducting Workshops.
Giving Demo/conducting Workshops.
Strategizing
various
In-School/After-School
activities
for
revenue
generation.
Work Process
Page | 23
Give the school the vision by pitch LARGE number of classes (with or
Discuss price only after demo – (for most of the accounts, not where you
can close without a demo).
Third Stage
Ensure Post dated cheques
Every page of the contract to be signed and stamped
Make two copies of contract
Servicing Cues
1.
Page | 24
2.
Don’t be tentative / hold back - if you have doubts, unresolved issues, scale
up – ESCALATE as per hierarchy but JUDICIOUSLY.
Page | 25
decide employee’s promotion or transfer, salary determination. But the recent
developments in HRD indicate that Performance Appraisal is the basis for
employee development. Performance Appraisal indicates the level of desired
performance level and actual performance and the gape between these two. This
gap should be bridged through training, counseling and motivation etc.
In Extramarks, the process of HRD helps the employee’s to acquire
and development technical, managerial and behavioral knowledge, skill, and
abilities, belief and attitudes necessary exists to achieve goals; the degree of
success obtained by the individual employee in achieving individuals goals directly
determines to the Extramarks effectiveness. The assessment of the degree of
success of an individual employee is an important part of HRM that leads to the
Performance Appraisal
The Performance Appraisal system undergone in Extramarks helps
the employees of the Organization to improve their abilities so as to meet both the
personal and organizational present and future requirements. Whether the
organization is reaching its standards by Performance Appraisal resulting in
increase in quality and productivity of the employees observed.
The overriding purpose of Performance Appraisal is to help
Extramarks
employees
to
improve
and
thus
to
improve
organizational
Page | 26
The performance appraisal is done in Extramarks by calculating over
all business given by employees. Various contests were organized by the sales
manager and certificates were issued.
IT USE IN ORGANIZATION
As extramarks itself an I.T company who makes educational software for schools,
Provides lots of I.T support to its employees and customer.
For its Sales department extramarks gives SMS (Sales Management System)
which helps sales person to do daily reporting of his daily work, he can also fill
his
conveyance details in this for reimbursement purpose & he can also do the Price
calculation of Smart learn classes.
For Consumers Extramarks provide Online tutoring program for after school
support.
Page | 27
TRANSACTION PROCESSING
Page | 28
PERFORMANCE TRACKING
Page | 29
CONCLUSIONS AND RECOMMENDATIONS
Observation:
Page | 30
Company has not wide range of product portfolio in its basket in
comparison to its competitors.
There is lack of technical support staff.
The Company reach is diverse, but in some areas the reach is good while
in some other areas it is not up to the mark.
Also Company should work towards improvement of its after sale service.
Main complain of schools towards EXTRAMARKS is service problem.
There is a lack of animations in the content part.
Customers were complaining about the communication support.
Recommendation:
Company can have separate Technical Support team to serve customers
for after sales services activity.
Page | 31
Though databases are there they are not used properly. The sales person
should have to understand customer relationship management concept &
not just sell but maintain good long-term sustainable relations with Schools
because in future if they become loyal to us then they will differentiate us
from the competition & they have to visit each Schools at least twice a
week.
Company should also increase the product portfolio in its basket to attract
customer, so sales executives can cross sell company’s product to existing
client.
Complaint handling should be better & effective.
Extramarks should concentrate on customers’ needs and start doing mass
customization of its product.
LEARNING EXPERIENCE
PERSONAL EXPERIENCE:
My personal work experience altogether was good because I develop myself
professionally and learn a lot of things about life. It makes me more alive
Page | 32
practically and changes my perspective to see life. It helps me to sync my
professional life with personal. It groomed me a lot. The hectic work schedule
helps me to manage my time effectively. My job KRA’s helps me to nourish certain
skills, which are as follows: SPEAKING skills.
CO-OPERATING skills.
ADAPTABILITY.
SELF RELIANCE.
LISTENING skills.
PLANNING and ORGANISING skills.
INITIATIVE.
PERSUADING skills.
Professional Experience:
My professional experience helps me groomed professionally. It helps me to
develop inter-personal skills and it also teaches me how to deal with colleagues,
subordinates and boss. From my work I learn how to complete tasks in more
Page | 33
perfectionist way. From this, I also learn key account management. From my work
I develop certain professional skills which are: Key Account Management.
New Business Development.
Negotiation Skills.
ANALYSING skills.
Critical thinking.
Able to work as part of a team.
NETWORKING.
DECISION-MAKING skills.
COMMERCIAL AWARENESS.
Bibliography
The Content has been collected from the following sites and webpage:
Page | 34
www.extramarks.com
www.wikipedia.com
www.google.com
www.justdial.com
www.managementparadise.com
www.knowyourcity.com
Page | 35
Favorably positioned to leverage this first-mover advantage. With 3G, Tata
DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT
DOCOMO is one of the world's leading mobile operators—in Japan, the company
is the clear market leader, used by nearly 55 per cent of the country's mobile
phone users.
Tata Teleservices Limited also has a significant presence in the GSM space,
through its joint venture with NTT DOCOMO of Japan, and offers differentiated
products and services under the Tata DOCOMO brand name. Tata DOCOMO
arises out of the Tata Group's strategic alliance with Japanese telecom major NTT
DOCOMO in November 2008. Tata DOCOMO has received a pan-India license to
operate GSM telecom services—and has also been allotted spectrum in 18
telecom Circles. The company has rolled out GSM services in all of these 18
telecom Circles in the quick span of just over a year.
Page | 36
Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and
has already redefined the very face of telecoms in India, being the first to
pioneer
the per-second tariff option—part of its 'Pay for What You Use' pricing paradigm.
Tokyo-based NTT DOCOMO is one of the world's leading mobile operators—in the
Japanese market, the company is the clear market leader, used by over 50 per
cent of the country's mobile phone users.
The Tata Teleservices Limited bouquet comprises four other brands as well—
Virgin Mobile, Walky (which is the brand for fixed wireless phones), the Photon
family (the company's brand that provides a variety of options for wireless mobile
broadband access, and T24. TTSL recently entered into a strategic partnership
agreement with Indian retail giant Future Group to offer mobile telephony services
under a new brand name—T24—on the GSM platform. The exciting new brand
was unveiled in February and the company announced the commercial launch of
GSM operations under the brand name T24 in June, starting with the city of
Hyderabad. It has now launched T24 GSM services in Kolkata, Bhubaneswar,
Lucknow and Ahmedabad.
Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd,
serves over 85 million customers in more than 450,000 towns and villages across
the country, with a bouquet of telephony services encompassing Mobile Services,
Wireless Desktop Phones, Public Booth Telephony and Wireline Services.
In December 2008, Tata Teleservices announced a unique reverse equity swap
strategic agreement between its telecom tower subsidiary, Wireless TT Info-
Page | 37
Services Limited, and Quippo Telecom Infrastructure Limited—with the combined
entity kicking off operations with 18,000 towers, thereby becoming the largest
independent entity in this space—and with the highest tenancy ratios in the
industry. Today, the combined entity—which has been re-christened as VIOM
Networks—has a portfolio of nearly 45,000 towers.
TTSL's bouquet of telephony services includes mobile services, wireless desktop
phones, public booth telephony, wireline services and enterprise solutions.
Areas of business
TTSL became the first Indian private telecom operator to launch 3G services in
India under the brand name Tata DOCOMO, with its recent launch in all the nine
telecom circles where it bagged the 3G license. Through its association with NTT
DOCOMO — one of the world’s leading mobile operators — the company finds
itself favourably positioned to leverage this first-mover advantage. TTSL's joint
venture with NTT DOCOMO has also earned it a significant presence in the GSM
space. Tata DOCOMO has received a pan-India license to operate GSM telecom
services, and has been allotted spectrum in 18 telecom circles, in which it has
rolled out GSM services.
The TTSL bouquet comprises four other brands as well — Virgin Mobile, Walky
(for fixed wireless phones), the Photon family (that provides a variety of options
for
wireless mobile broadband access), and T24. Of these, T24 was formed of a
Strategic partnership with Future Group to offer mobile telephony services on the
Page | 38
GSM platform.
In December 2008, TTSL announced a unique reverse equity swap strategic
agreement between its telecom tower subsidiary, Wireless TT Info-Services and
Quippo Telecom Infrastructure. The combined entity, later named Viom Networks,
kicked off operations with 18,000 towers, thereby becoming the largest
independent entity in this space. Viom Networks now has a portfolio of close to
45,000 towers and has the highest tenancy ratios in the industry.
Today, TTSL, along with TTSL (Maharashtra), serves over 84 million customers in
more than 450,000 towns and villages across the country, with a bouquet of
telephony services encompassing mobile services, wireless desktop phones,
public booth telephony, wireline services and enterprise solutions.
Joint ventures, subsidiaries, associates
Virgin Mobile India: a brand franchise arrangement with the Virgin Mobile
group.
Page | 39
Location
The company is headquartered in Mumbai, India.
Page | 40
Tata Teleservices will encourage development of business entrepreneurship from
members of the socially disadvantaged communities through their participation in
the company’s Distribution Channels and other business arenas on the basis of
equal merit.
Tata Teleservices will undertake to provide scholarship and help materially and
through various other initiatives like voluntary coaching / mentoring of
meritorious /
deserving students across the country.
Affirmative action initiatives will conform to the Corporate Sustainability
objectives
of Tata Teleservices and will aim at developing the disadvantaged sections of the
society.
Tata Teleservices will report progress on Affirmative Actions in its Annual Report.
Governing Council
Page | 41
Broad Categories under Affirmative Action
Page | 42
Employability: Make the people from SC/ST people more employable in the job
market by providing them training on academics as well as attitudinal for
confidence
building,
counseling,
on-job
learning
thru’
guided
projects,
Page | 43
Initiatives
Initiatives taken to provide Employment:
Total SC/ST Trainees hired from 2008 Batch till date : 72 / 710 (10%)
79 / 1735 (4.5% Employees both in FTC & pbpc rolls in COCO stores are
from SC/ST Category.
10% (16 out of 60) Candidates trained thru’ STRIVE & employed as DST in
rural areas of TN.
Page | 44
27% (29 out of 104) Youth from socially backward segment trained on cust
service, selling skills & computers for 90 days in association with Dr.
Reddy’s ASHA Lab & employed in pbpc & offroll in TTSL.
30 Merit Scholarship (10 per year) given for students selected thru' FAEA
(Foundation for academic Excellence and Access) @ 70,000/- per
scholarship.
Sponsored hostel fees for SC/ST girl child (Rachna) who joined National
Law college towards hostel fee reimbursement (Rs. 30,000/- given each
year for last 3 years).
Page | 45
1. Distribution of Books & other school support facilities to the students
of Nesvad Village Primary School.
2. Providing Exam pads, books, pens and pencils provided to 150
students from Govt Hostel for SC/ST Children at Warangal.
3. 30 SC/ST meritorious students given the pullovers (School Uniform)
from S D Girls College, Meerut.
4. Distribution of book & library infrastructure to SC/ST children from
‘Primary Pathshala School in village Paitepur in UP - East.
Page | 46
Initiatives taken to provide Entrepreneurship
Page | 47
TBEM Criteria is designed to help organizations use an integrated approach
to organisational performance management that results in
Delivery
of
ever-improving
value
to
customers
and
stakeholders,
The Criteria are built on the following set of 11 Interrelated Core Values and
Concepts:
Visionary Leadership
Customer-driven Excellence
Agility
Management by Fact
Social Responsibility
Page | 48
Systems Perspective
Leadership
Strategic Planning
Process Management
Business Results
The TBEM criteria are the operational details of the Core Values, applied to the
different facets of a Business organisation.
The 7 Criteria Categories are divided into 18 items and 32 Areas to Address
The TBEM framework has the following characteristics
Page | 49
TBEM instills a process centric approach in an organisation as a means to achieve
the chosen Business Goals
Tata Teleservices Limited as a part of the TATA Group has adopted the TATA
Business Excellence model as an intricate part of its operation structure and uses
it to grow from strength to strength, keeping Operational excellence and Business
results in focus.
Corporate Sustainability
Working for the disadvantaged sections of the society is a way of life at the Tata
Group. As Mr JRD Tata believed, "society is an important stakeholder in the
development of any organization". Social Responsibility has been central to the
core values of the Tata Group for over a century now—and Tata companies have
not only been proactive on compliance with regulatory requirements, but have also
had a farsighted vision in ensuring sustainability of business processes,
restoration of biodiversity, and conserving wildlife where possible.
Keeping in tune with the changing business, environmental and social scenarios
the Tata Group has adopted the term 'Corporate Sustainability’ instead of
Page | 50
Corporate Social Responsibility. Sustainable livelihoods are the demand of all
social initiatives in the Group. Tata Teleservices Limited is a responsible
corporate
citizen, and strives to give back to the community it operates in.
The main objective behind the CS initiatives of TTL is to use telecom to impact the
life of the underprivileged sections of society. The company endeavours to make a
positive contribution to the community by supporting a wide range of socioeconomic,
educational and health initiatives. Keeping in mind the Tata Group
guidelines and the objective mentioned above, we have identified and
implemented many CS initiatives since 2006-end.
Toward the end of 2008, with the then new TTL Corporate Sustainability team
having come on board, Tata Teleservices Limited began the process of joining the
select few Tata Group companies that, under the guidance of the Tata Council for
Community Initiatives, had put together their CS Big Picture. Education and
Environment were identified as the two primary pillars for CS at TTL, with all
projects and activities stemming from there.
That having been said, it was also decided that rather than put a stop to all the
good work that many of TTL’s 22 Circle offices were doing (but which were not
aligned to the Big Picture), the CS team would let these carry on for the cause of
continuity in the target communities, slowly bringing them under the pillars
identified—the process of Big Picture Alignment at TTL, thus, began.
Page | 51
Board of Directors
Mr. K. A. Chaukar
Page | 52
Designation : Managing Director
Company : Tata Industries Ltd.
Mr. I. Hussain
Designation: Director
Company: Tata Sons Ltd.
Mr. N. S. Ramachandran
Page | 53
Designation: Director,
Company : Tata Teleservices Ltd.
Page | 54
Mr. Kazuto Tsubouchi
Designation : Executive Vice President
Chief Financial Officer
Company : NTT Docomo, INC.
Mr. N Chandra
Designation : Chief Executive Officer
Managing Director
Company : Tata Consultancy Services Limited (TCS).
Page | 55
TATA TELESERVICES MAHARASHTRA LIMITED (TTML)
Page | 56
The company also has a significant presence in the GSM space, through its joint
venture with NTT DOCOMO of Japan, and offers differentiated products and
services under the TATA DOCOMO brand name. Tata DOCOMO arises out of the
Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO in
November 2008. The Company rolled out its GSM services under the brand name
TATA DOCOMO in Mumbai, Maharashtra and Goa.
Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and
has already redefined the very face of telecoms in India, being the first to
pioneer
the per-second tariff option—part of its ‘Pay for What You Use’ pricing paradigm.
Tokyo-based NTT DOCOMO is one of the world’s leading mobile operators—in
the Japanese market, the company is the clear market leader, used by over 50 per
cent of the country’s mobile phone users.
With a full portfolio of products and services for different categories of retail
and
enterprise consumers, and an excellent network backed by good customer care,
TTML is well positioned to lead the market. The company has been rated as the
no. 1 wireless operator in terms of overall customer satisfaction across
Maharashtra (including Mumbai) and Goa, in surveys commissioned by the
Telecom Regulatory Authority of India (TRAI). The company is listed on the
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), and has
over 500,000 shareholders. Its revenue for the fiscal 2009-10 was Rs.2277.81
crores with an EBIDTA of around 24%.
Page | 57
Tata Teleservices (Maharashtra) is India's premier telecommunication service
provider. It offers telephony and ISP services in Maharashtra (including Mumbai)
and Goa. Formerly Hughes Tele.com (India), the company was taken over by Tata
Teleservices in 2002. It is the market leader in fixed wireless phones in
Maharashtra.
Areas of business
The company’s bouquet of telephony services includes mobile, fixed wireless
phones, public telephone booths and wireline services. Its suite of broadband data
network and application services includes leased lines, DSL, WiFi, ethernet,
managed gateway services and web conferencing services.
Location
The Company is registered in Mumbai and has operations all over the state,
including Navi Mumbai and Pune.
Page | 58
TATA DOCOMO
Page | 59
Bengal, Jharkhand, Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and
Rajasthan.
Tata DOCOMO has also become the first Indian private operator to launch 3G
services in India, with its recent launch in all the nine telecom Circles where it
bagged the 3G license. In association with its partner NTT DOCOMO, the
Company finds itself suitably positioned to leverage this first-mover advantage.
With 3G, Tata DOCOMO stands to redefine the very face of telecoms in India.
Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in
Japan, the company is the clear market leader, used by nearly 55 per cent of the
country's mobile phone users.
Page | 60
DOCOMO is a global leader in the VAS space, both in terms of services and
handset designs, particularly integrating services at the platform stage. The Tata
Group-NTT DOCOMO partnership will see offerings such as these being
introduced in the Indian market through the Tata DOCOMO brand.
Tata DOCOMO has also set up a ‘Business and Technology Coordination Council',
comprising of senior personnel from both companies. The council is responsible
for the identification of key areas where the two companies will work together.
DOCOMO, the world's leading mobile operator, will work closely with the Tata
Teleservices Limited management and provide know-how to help the company
develop its GSM business.
On the CDMA platform, despite being the latest entrant, Tata Indicom has already
established its presence and is the fastest-growing pan-India operator.
Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology
platform in India. Today, Tata Teleservices Ltd, along with Tata Teleservices
(Maharashtra) Ltd, serves over 84 million customers in more than 450,000 towns
and villages across the country, with a bouquet of telephony services
encompassing Mobile Services, Wireless Desktop Phones, Public Booth
Telephony and Wire line Services.
HISTORY
Page | 61
NTT Docomo holds 26% share in the jointly formed company. It has also emerged
as the first mobile operator in India to have re-introduced ‘per second’ pulse,
after
Loop Mobile (formerly BPL Mobile) discontinued their 'pay per second' service
which was introduced in 2004.From October 2009 TRAI announced that TATA
teleservice is India's no.1 tele service brand Tata Teleservices Limited spearheads
the Tata Group’s presence in the telecom sector. The Tata Group had revenues of
around US $75 billion in financial year 2008-09, and includes over 90 companies,
over 350,000 employees worldwide and more than3.5million shareholders.
Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x
technology platform in India. It has embarked on a growth path since the
acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices
(Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations in
January 2005 under the brand Tata
Indicom and today enjoys a pan-India presence through existing operations in all
of India’s 22 telecom Circles. The company is also the market leader in the fixed
wireless telephony market with its brand Walky. The company has recently
introduced the brand Photon to provide a variety of options for wireless mobile
broadband access. The company’s network has been rated as the ‘Least
Congested’ in India for last five consecutive quarters by the Telecom Regulatory
Authority of India through independent surveys.
Tata Teleservices Limited now also has a presence in the GSM space, through its
joint venture with NTT DOCOMO of Japan, and offers differentiated products and
Page | 62
services under the TATA DOCOMO brand name. TATA DOCOMO arises out of the
Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO in
November 2008. TATA DOCOMO has received a pan-India license to operate
GSM telecom services—and has also been allotted spectrum in 18 telecom
Circles. The company has rolled out GSM services in 14 of India’s 22 telecom
Circles in a quick span of under six months. The company plans to launch panIndia
operations by the end of FY 2009-10.
TATA DOCOMO marks a significant milestone in the Indian telecom landscape,
and has already redefined the very face of telecoms in India, being the first to
pioneer the per- second tariff option-part of its ‘Pay for What You Use’ pricing
paradigm. Tokyo-based NTT DOCOMO is one of the world’s leading mobile
operators-in the Japanese market, the company is the clear market leader, used
by over 50 per cent of the Country’s mobile phone users.
Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra)
Limited, serves over 58 million customers in more than 410,000 towns and villages
across the country, with a bouquet of telephony services encompassing mobile
services, wireless desktop phones, public booth telephony, wire line services and
enterprise solutions.
In December 2008, Tata Teleservices Limited announced a unique reverse equity
swap strategic agreement between its telecom tower subsidiary, Wireless TT
InfoServices Limited, and Quippo Telecom Infrastructure Limited-with the combined
entity kicking off operations in early 2009 with 18,000 towers, thereby becoming
Page | 63
the largest entity in this space-and with the highest tenancy ratios in the
industry.
The WTTIL-Quippo combine is targeting over 50,000 towers by the end of FY
2010-11.
SMS offers
AP - Pay for the First 3 Local SMS everyday and get the next 150 Local
SMS free for the day
KK - Pay for the First Local/ National SMS everyday and get the next 100
Local/ National SMS free for the day
TN - Pay for the First 3 Local SMS everyday and get the next 750 Local
SMS Free for day Pre-STD, ISD and National Roaming without rental.
Automatic alerts when your Balance is Low.
VISION
We will leverage our strength in executing complex global- scale projects to make
leading edge information and communication servies affordable by all individual
consumers and business in india. We will offer unparalleled valu to create
customer delight and enhance business productivity. We will also generate value
for our capabilities beyond indian borders while enabling millions of India’s
knowledge workers to deliver their services globally.
Page | 64
Market Competitors of Tata Docomo: Airtel
Reliance Communication
BSNL
Idea
Aircel
Vodafone
SERVICES & NETWORK AVAILABLE:
Currently, Tata Docomo mobile services available in these following circles:
Bihar & Jharkhand
Tamil Nadu
Orissa
Andhra Pradesh
Karnataka
Kerala
Kolkata
Maharashtra & Goa
Madhya Pradesh
Chhattisgarh
Haryana
Page | 65
Chennai
Eastern Uttar Pradesh
Western Uttar Pradesh
Punjab
Rajasthan ,Recently Launched
Rest of West Bengal, Recently Launched.
MARKETING STRATEGY
Tata Docomo appears to be banking heavily on its tariff plans – the company is
offering a 1 second pulse instead of the usual 1 minute pulse that other telecom
operators are offering. This means that consumers are charged on a per second
basis, instead of a per minute basis, and end up saving money on unused
seconds. A nifty little application “How much can you really save” on Docomo’s
website explains how this works. Rs. 0.01/second is a marked change from the Rs
1/min and Rs. 0.49/min charges that usually applies.
MARKETING MIX
4P’S OF MARKETING MIX :
Product
Price
Place
Promotion.
Page | 66
PRODUCT:
TATA DOCOMO having good range of services. Tata Docomo provides both post
paid and prepaid services. Tata Docomo having good quality network which
provides clarity in voice.
PRICE:
It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable
for both prepaid and postpaid.
PLACE:
It having good range of channels of distribution: As Tata already exist in this
field of
telecommunications as Tata Indicom. It has wide range of channels of distribution
to sell TATA DOCOMO services.
PROMOTION:
Advertising: TATA DOCOMO following different style of advertising pattern in TV’s
and newspapers. Due to that reason it was reaching public very fast.
Disruptive Innovation in the Indian Telecom Industry by Tata DoCoMo
Page | 67
We’ve earlier seen how Reliance India Mobile changed the mobile industry by
coming up with the lowest tariff in the beginning of this decade. The call charges
were around Rs 2-3 per minute and because of Reliance this was brought down to
around Re 1 per minute.
Tata DoCoMo was the next one to employ disruptive innovation in the Indian
mobile industry. Currently the game is not played on the price front but Value
added services front, which is evident from the advertisements of Airtel (Madhavan
and Vidya Balan) and Vodafone (Zoozoos) in the past.
If Aircel is redefining how telecom operators approach value added services and
GPRS in India, Tata DoCoMo is doing its bit to change billing practices.
The joint venture between Tata Teleservices and Japanese telecom major NTT
DoCoMo officially began rollouts with a plan to invest $2 billion for its pan-India
GSM services.
Tata DoCoMo appears to be banking heavily on its tariff plans – the company
offers a 1 second pulse instead of the usual 1 minute pulse that other telecom
operators were offering. This means that consumers are charged on a per second
basis, instead of a per minute basis, and end up saving money on unused
Page | 68
seconds. A nifty little application “How much can you really save” on DoCoMo’s
website explains how this works. Rs. 0.01/second is a marked change from the Rs
1/min and Rs. 0.49/min charges that usually apply.
Now while this plan might sound unique, it isn’t that it hasn’t been tried before:
back in 2004, Tata Indicom had launched 1 second pulse plans, which going by
their current plans, appears to have been shelved.
At present, Tata DoCoMo has launched voice portals, 24-hour music, cricket
commentary and voice chat, apart from offering free Missed Call Alerts and
VoiceMail.
Interestingly, voice based services are also being priced with a per-second-pulse:
24 hour music and voice chat are priced at Rs. 0.02/second. Caller Tune search
service ‘Genie’ is also being priced at Rs. 0.02/second. This is a marked change,
again, from the per minute pricing, and can offer consumers cheaper options.
Page | 69
Vodafone. Tata-DoCoMo also launched its first mobile handset in September
2010.
Mobile pricing innovation – Tata DoCoMo now charges per website for Mobile
Browsing!
This is surely a first world over – Tata DoCoMo have gone ahead and launched an
innovative mobile Internet offering which allows users unlimited usage of their
favourite websites on mobile for a fixed cost.
Tata DoCoMo has been forefront in coming up with various attractive pricing
schemes, especially, in the pay-per-use paradigm. They were first to introduce pay
per second billing on calls, which now is followed by every mobile service
provider.
They followed it with pay-per-minute and pay-per-call pricing plans as well which
has made them one of the fastest growing Mobile companies in India.
The new pay-per-website offering however, takes it to a complete different level
and unheard of pricing strategy. This is a very thoughtful strategy and something
which has potential to growth rapidly.
Page | 70
Those with multiple site browsing needs can opt for a combo pack at just Rs 25
per month.
Customers have a bundle of options within various categories of social networking
sites (Facebook, Twitter, Linked-In, Orkut), mail options (Gmail, Yahoo, Rediff)
and
chat messengers (GTalk, Yahoo! Messenger, Nimbuzz).
Having said this, there is also a caveat – If you thought it was valid for
unlimited
use…it is not.
Tata DoCoMo pay per site plan categorizes each service under 2 different genres
– Social Networking Site and Emailing & Instant Messaging. Each site under this
genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30 days,
post which customers will be charged at 1p/kb. There are also 2 Combo options –
SNS Combo Pack and Emailing Combo Pack and each Combo Pack is priced at
Rs. 25/- bundled with 500 MB free data usage post which the customers will be
charged 1p/kb.
We have been quite impressed the way Tata DoCoMo have gone about their
innovative pricing models as well as marketing strategies.
Page | 71
On 8th September 2009, the GSM branch of the Indian carrier Tata introduced a
novel pricing strategy for text messaging. Under the brand “Diet-SMS“, TataDOCOMO
bills its customers “by-the-character”, rather than on a per message
basis.
It is a very attractive marketing scheme, since many wireless subscribers, almost
by habit, tend to pepper their text messages with abbreviations and acronyms.
Under the new plan, Tata-DoCoMo charges “one paisa per character”. For
example, a text which reads “tnx” (for “thank-you”) is charged at 3paise instead of
the normal sms charge.
The Impact
Tata DoCoMo has gathered significant market share, owing to its pricing
strategies.
Existing mobile operators are matching the price and the clear winners are the
subscribers since all the competition is sending the prices downhill.
Competitor Analysis
Page | 72
The competition has intensified the past few months with new players and
schemes coming in. There has never been a better time for the customer to get a
mobile phone connection
There are at least six if not more operators to choose from in ever circle. In June
09, TATA DOCOMO broke the old system of tariff by introducing per second billing
system. As soon as they did this, the other followed suit with price cuts
everywhere. Suddenly the idea of calls being free was not so outrageous. The
prices were reduced to such an extent that the viability of the business was in
questions. The competitive environment of TATA DOCOMO can be looked at from
the following perspectives
Market share
Page | 73
The government issued fresh licenses in 2008.As a result of this the market gets
crowded though incumbents‟ still hold larger market shares are shown above.
However a point to note is that the new players have lower entry costs with very
deep pockets. They also have no legacy issues like the older players and hence
are more adept to changes market situations. The cost of infrastructure has
reduced dramatically due to the market growth and DOCOMO had an advantage
here.
Page | 74
MARKET CAPITALISATION:
As profits margins are becoming thin, the market capitalization of listed telecom
companies has fallen. Though there have been some signs of recovery
ADVERTISING MEDIA CHANNELS:
Page | 75
India - Tata Docomo, the youngest among telecom players in India to offer GSM, is
presently banking on its services to garner visibility and a share in the telecom
pie.
The launch of Tata Docomo also announced the intention of the brand to associate
with the thought 'do'. Tata Docomo, for the first time in the country, offered pay-
persecond billing; though other telecom providers have followed suit since. The
company has carried out a few adverts that highlight the brand's unique features
and some other topical advertising during Ganesh Chaturthi and Diwali. The latest
from the GSM provider is the 'Friendship Express' TVC. The ad opens inside train,
where everyone is doing their own thing. A couple of the travelers don't like the
solemn mood and start humming the Docomo tune. Slowly and steadily, others
pitch in and soon most of the train is singing along. The ad ends with the super,
'Why walk alone when we can dance together'.
TataDoCoMo launched ‘ Keep it Simple’ campaign with Rabir Kapoor!
Cutting through the clutter that the Indian telecom landscape finds itself in—with
customers forced to jostle with confusing and complicated products, services and
tariff plans—Tata DOCOMO is ‘Doing the New’ again, with the launch of its new
brand campaign, aptly titled ‘Keep It Simple’. Tata DOCOMO’s unique Keep It
Simple Campaign is in a form of a stand-up comedy show with many episodes,
which will be aired during the course of this IPL season. It focuses largely on how
Tata DOCOMO simplifies the telecom experience, and hence the consumer’s life,
by providing differentiated products and services. Each individual advertisement
starts by illustrating a complexity in the category, and presents the Tata DOCOMO
Page | 76
product and/or service as a means of simplifying things. This campaign is simple,
captures the various moods of Ranbir—depicting those of Tata DOCOMO.
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITIES
THREATS
Page | 77
TYPE :
Pulse rate
1 sec
Price pack
Rs.49
Validity
life long
CALL RATES:
Local rates
paisa/sec
Tata Docomo
Tata CDMA
Other GSM
Landline/CDMA
STD rates
Tata Docomo
Tata CDMA
Other GSM
Page | 78
OPPORTUNITIES: Have a great opportunity to expand its services.
To introduce any new plans for internet users.
Introduce 3G compatible services.
To introduce new combined plans like, SMS, Internet, Calling integrated
offers.
THREATS: If signal strength is not increased it may lead to change in the network
service by the customers.
Tata has to clarify whether this 1ps/sec will continue till its lifecycle.
Heavy competition from all other network providers.
Page | 79
Introduction to Tata DOCOMO's 3G HSUPA e-stick
Pack hi-speed internet on the go with Tata DOCOMO's 3G HSUPA e-stick for your
laptops & desktops. Now set yourself free from the hassle of wires & installations
and experience superfast internet where even the fixed mobile broadband signals
fail. Pick this to keep pace with your need for speed.
Features:
Powered with blazing speeds, it enables huge data exchange in seconds and also
doubles up as a Flash Drive with upto 32GB of data storage. Enjoy the following
features:
USB 2.0 High Speed : Rated 40 times faster than its predecessor interface,
USB 1.1
Page | 80
Cool Features
Speed
downlink
up
to
7.2Mbps
Cool Applications
Mobile TV
Videos
Catch-up
Let's Play
Specification
General
Size
Memory
Networks
Interface
Type
71×26×12.5 mm
Support upto 32GB microSD card
HSUPA / HSDPA / WCDMA / EDGE / GPRS / GSM
USB 2.0 high speed
Page | 81
System
support
OS supported
From factor
Rx diversity
Prepay Offer:
Wireless Broadband Device
Price (Rs.)
1999
Speed (Mbps)
7.2
Device
HSUPA
Data
1000
1250
1275
1500
Unlimited
Unlimited
Unlimited
Unlimited
Peak
Data at peak
speed(Mbps)
3.6
3.6
7.2
7.2
Speed validity
5 GB
10 GB
5 GB
10 GB
Validity(Days)
30
30
30
30
Speed (Mbps)
3.6
3.6
3.6
3.6
3.6
Data
2 GB
3 GB
650 MB
2 GB
3 GB
Validity (Days)
30
90
30
30
90
Page | 82
Post pay offer:
Wireless Broadband Device
Price (Rs.)
1999
Speed (Mbps)
7.2
Device
HSUPA
Monthly Rental
(Rs.)
Data
Peak Speed
Data at peak
(Mbps)
speed
1000
Unlimited
3.6
5 GB
1250
Unlimited
3.6
10 GB
1275
Unlimited
7.2
5 GB
1500
Unlimited
7.2
10 GB
2000
Unlimited
7.2
15 GB
Plan
3G 21 Mbps Don
15 GB @ 2000
Plan
Page | 83
Details
Advance Rental**
Inbuilt Data per month
Advance Rental period
Speed up-to
months Rental
5000
6 GB
5 months
3.6 Mbps
months Rental
5100
6 GB
4 months
7.2 Mbps
Speed (Mbps)
3.6
3.6
3.6
7.2
7.2
Data
650 MB
1 GB
2GB
1.5 GB
3 GB
Page | 84
SWOT ANALYSIS
1.
STRENGTH
2.
WEAKNESS
3.
OPPORTUNITIES
4.
THREATS
STRENGTHS:•
•
•
•
WEAKNESS:•
•
•
•
Signal strength.
Customer service.
Expensive.
Service support for retailers.
OPPORTUNITIES:-
•
•
THREATS:-
Page | 85
•
If the signal strength is not increased it may lead to change in the network
service
by the customers.
Heavy competition from all other network providers.
Page | 86
TATA DOCOMO Quality network: Tata DOCOMO having good quality network
which provide clarity in voice
Place:
It having good range of channels of distribution: As Tata already exist in this
field of telecommunications as Tata Indicom. It has wide range of channels of
distribution to sell TATA DOCOMO services
Price:
Tata Docomo has several attractive affordable price both for prepaid & post-paid.
Promotion:
Data card is a specialty product .That is why promotional activities are mainly
focused around in store promotional activity as well as other medium like print
media, hoarding and posters and they are also having brand zone (Dive In
store). And also TATA DOCOMO following different style of advertising
patterns. Due to that reason it was reaching public very fast.
Page | 87
The Internet is a worldwide, publicly accessible series of interconnected computer
networks that transmit data by packet switching using the standard Internet
Protocol (IP). It is a "network of networks" that consists of millions of smaller
domestic, academic, business, and government networks, which together carry
various information and services, such as electronic mail, online chat, file
transfer,
and the interlinked web pages and other resources of the World Wide Web
(WWW).
Page | 88
while on the move are some drivers increasing the demand for data card usage.
Apart from these factors, as the name of Tata Indicom's data card, 'Plug 2 Surf',
suggests, ease of use with plug and play factor is also a driver for growth.
SP Shukla, president, Personal Business, Reliance Communications, says that
faster surfing and higher download speeds, convenience of surfing the Internet
while on the move, simple to use, and affordable tariffs are among the key reasons
for the data card growth, in both the laptop and desktop segments.
Wire line broadband connections are yet to penetrate the vast semi-urban and
rural parts of the country where entrepreneurs, officials, students, etc have the
need to surf the Internet for various purposes. Though the laptop penetration in
these areas has not made a significant mark, desktop penetration is comparatively
more.
With data cards offering convenient access to the Internet, a number of companies
have started to tie up with service providers to avail bulk network connections for
their employees on the go and allow them to utilize their time during business
travels. Since data cards can be used with desktop also, it cuts down the office
infrastructure costs as well. With the data card segment witnessing steady growth,
affordability will go up, which, in turn, will drive growth. “As the data card
growth
increases, speed evolves and prices come down, affordability will go up and more
users can begin to think of data card as an affordable solution,” says an Airtel
spokesperson. And growth of mobile telephony in India has created users with
specific needs like m-commerce that require wireless Internet, driving the wireless
data card growth. Once the concept of mobile wallet and its applications hit the
Page | 89
market in India in the near future, the wireless data card segment is also expected
to witness an exponential growth.
Apart from this, Internet charges in costly hotels are very high. With the
availability
of data cards and USB modems, frequent business travellers who stay in costly
star hotels can access the Internet and corporate applications on their laptops and
avoid using the Internet facility at hotels, saving on high Internet charges.
The tie-up with the telcos has proven to be the biggest factor that has been
responsible for the growth of the services and have acted as a catalyst for vendors
in boosting their equipment sales. Indian operators have learnt from the
developments in other countries. The rates of data usage have been kept low and
users are encouraged to try out this connectivity medium.
Huawei has tied up with Tata Indiacom, Reliance, MTS, and BSNL for supply of
data cards in India. ZTE provided its CDMA EVDO and 1X data cards to MTS and
Reliance, and 3G data cards to Reliance and Tata. The third ranker of last
fiscalMicromax-has tie-ups with Airtel, BSNL, MTNL, Reliance, and Aircel. Olive
also
provides its data cards to Tata Indicom.
The data card market in India, which has been registering a growth of about 100%
on a year-on-year basis, is set to get hotter with the onset of 3G.
This segment, till now dominated by players
like Tata and Reliance, will see GSM players
like Bharti Airtel, Vodafone Essar and Idea
Page | 90
Cellular looking at a bigger pie, since with 3G, they get extra bandwidth to offer
internet on-the-go. As voice tariffs have bottomed out, market analysts feel that
growth in data cards usage will not only get telcos additional moolah but also
cushion the drop in average revenue per user (ARPU).
Deepak Gulati, president mobility, Tata Teleservices, said, “Our revenues on data
card contributes approximately 15% of the overall revenues and we expect this
number to gradually increase as the demand for data cards continue to surge
amongst mobile executives, growth in the penetration of laptops and the increased
need for connectivity.”
While CDMA players like Reliance Communications and Tata Teleservices control
a majority of this market, with a share of 50% and 30% respectively, new entrant
Sistema Shyam Teleservices (SSTL) is an emerging player on this turf. Estimates
suggest that about 2.5 lakh data cards are sold every month. By the end of this
year, data card shipments in India are expected to touch about four million units.
“So far, the data card market was dominated by CDMA players, but with 3G, both
GSM and CDMA providers would be on a par in providing data services on the
move,” said Anshul Gupta, principal analyst at Gartner.
However, penetration of 3G data cards will be gradual as operators are still
rolling
out their services in a phased manner. Also, all operators do not have pan India
license, which limits the possibility of selling data cards. “Once we see some sort
of stability in roll out of 3G services and seamless connectivity, this business
will
Page | 91
reach its peak, since it has the ability to offer high speed data services,” added
Gulati.
The industry is of the firm belief that affordable tariff plans, prices of data
cards,
the convenience data cards offer in accessing the internet, and the growing needs
to use data cards by business and personal travelers, will drive the future growth
of the data card segment in India.
Recently, RCom has slashed its data card prices from R1,499 to R1,099 and offers
unlimited data usage at affordable tariff at R169 across the country except the top
1,000 towns. Tata also has two variants costing R1,799 and R999.
“ARPU in data card varies anywhere between R600-800. With increased
competition, data card tariffs and prices will go down. Innovating and
differentiating
these services would be a key for operators. 3G data cards will demand a
premium. However, due to spectrum constrains on 3G, the quality of service on 3G
data cards will be hampered,” Abhishek Chauhan, senior consultant, ICT Practice,
Frost & Sullivan, South Asia & Middle East.
Vodafone Essar and Idea have already launched 3G ready USB modem. “We are
determined to provide superior mobile internet experience. We are the only
operator in GSM space which is aggressively expanding data card market and
currently largest importer of data card in GSM space,” said an Idea Cellular
spokesperson.
Growth Factors
Page | 92
Multiple factors worked in favor of the data card industry in India in FY 2011 that
led to momentum in the sale of data cards all across the verticals.
Anytime, anywhere accessibility is the driving force for the data card market
growth. With rise in the sales of netbooks and laptops, portability is of prime
importance and that is being guaranteed by a seamless internet connection by
data cards. Mobility can be easily said to be the USP that has been driving this
segment.
Page | 93
Affordability is also a major push factor as the prices have gone down heavily
which has led to an uptake even by mid level consumers.The growth has been
such that the fixed broadband is also facing tough competition from the mobile
broadband.
Greener Pastures
Consumers have started looking beyond the connectivity pipe now, and have
become deeply interested in getting access to key applications. Obviously key
entertainment applications like song/video download as well as live TV have been
the most popular and downloaded applications in tune with the global trend.
The number of mobile broadband subscribers surpassed DSL subscribers for the
first time in 2009 and since then every fiscal has clearly seen the tilt of the
consumers adopting mobile broadband. With this market dynamics, the future for
data cards is positively on the brighter side.
Though some argue that when mobile phones could be used as modems to
access internet, why spend more on another card? Well, with data cards you don't
have to worry about the battery or carrying another cable to connect. Above all,
the
access rate is cheaper for the cards.
The broadband wireless proposition is driving exponential growth in internet usage
by providing affordable always-on services and allowing the flexibility of mobile
internet access through data cards.
Page | 94
The Deterrents
All players are competing with each other to give affordable tariff rates for their
data cards. But still the rates are very high when compared to countries like the
UK. In the UK, wireless broadband connection through 3G technology costs about
£10 per month and that too with a data download speed faster than 256 Kbps.
International travelers who have used data cards with faster speed are not
satisfied with data cards and USB modems services offered in India. So, in India,
data cards mean accessing a bare minimum net connectivity only for a sizable
population. That is why it is said that data cards have not exactly taken off in
India.
To get the feedback of retailers regarding the products & services of the
company.
To identify company’s position among competitors.
To know the competitors product & policies from retailers.
To find out customer buying behaviour.
SUBOBJECTIVES
card.
To find out what influence customer when he is purchasing data card.
To find out the consumer preference of Data card among various data card
manufacturers.
Research Methodology
Research methodology is a way to systematically do the job. It may be understood
as a science of studying how research is done scientifically. The most desirable
approach with regards to the selection of the research methodology depends on
Page | 96
the nature of particular work, time and resources available along with the desire
level of accuracy.
Research Type
Descriptive Research
Data Source
Primary Data
Research Instrument
Questionnaires
Type of Questionnaire
Structured
Sample Universe
Retailer
Sampling Method
Judgmental
Contact Method
Personal Interview
Page | 97
DATA ANALYSIS & INTERPRETATION
(a) Up to 10
(b) 10 to 20
(c) More than 20
No. Of Data Card
(a) Up to 10
(b) 10-20
(c) More than 20
No. of Retailers
30
32
38
Page | 98
No. of Data Cards
Interpretation: 38% of the retailers responded that they sell more than 20 DATA
CARDS per month, whereas 32% of them said that they sell 10-20 DATA CARDS
RETAILERS
per month, and rest 30% responded that they sell up to 10 data cards per
month.
2) Which one is the Top selling data card?
Position
I
II
III
IV
V
VI
VII
Brands
Tata Photon
Idea
Tata Docomo
Reliance
MTS
BSNL
Vodafone
No. of Retailers
63
15
8
7
5
1
0
Page | 99
RETAILERS
BRANDS
No. of Retailers
32
20
10
6
32
Page | 100
RETAILERS
No. of Retailers
92
6
Page | 101
2
RETAILERS
Page | 102
Interpretation: 92% of the retailers responded that they sell up to 10 DOCOMO
DATA CARDS per month, whereas 6% of them said that they sell 10-20 DOCOMO
DATA CARDS per month, and rest 2% responded that they sell more than 10
DOCOMO data cards per month.
5) Which Brand of data card do you suggest to customers & why?
a) BSNL
e) Tata Docomo
b) Reliance
f) Vodafone
c) Idea
g) MTS
d) Tata Photon
Brands
(a) BSNL
No. of Retailers
1
(b) Reliance
(c) Idea
13
63
13
(f) Vodafone
(g) MTS
Page | 103
Interpretation: According to the responses given by the
retailers surveyed, most retailers suggest TATA PHOTON,
followed by TATA DOCOMO as well as IDEA.
WHY
Page | 104
Interpretation: Retailers said that they prefer promoting the
BRAND which provides maximum PROFIT MARGIN, after
which they promote the BRAND which is having better service
quality.
Options
No. of Retailers
(a) Yes
82
(b) No
18
Page | 105
Interpretation: Major part of the respondents, i.e. 82% says that
they get POP & information of new schemes on time. It can be
interpreted that there is proper flow of information & also on time ,but
we still need to improve in areas like Swargate, Karve nagar, warje,
Chandan nagar & Kothrud etc because some retailer of these areas
come to know about new schemes from Customers.
7) How do you come to know about new schemes & plan?
(a) SMS
(c) Posters
(b) DSE
(d) Calls
Options
No. Of Retailers
(a) SMS
26
(b) Calls
20
(c) DSE
48
Page | 106
(d) Posters
(d) Daily
b) Twice a week
(e)None
Options
No. Of Retailers
Page | 107
(a) Once a week
19
21
51
(d) Daily
(e) None
b) TATA PHOTON
Page | 108
c) IDEA
f) VODAFONE
d) RELIANCE
g) MTS
e) BSNL
Brands
No. of retailers
14
71
(c) Idea
14
(d) Reliance
(e) BSNL
(f) Vodafone
(g) MTS
Page | 109
10) Which one is the most important factor for customer which
affects their
Purchasing decision?
(a) Price
No. Of Retailers
12
15
58
1
11
3
Page | 110
CONCLUSIONS AND RECOMMENDATIONS.
Observation:
•
•
•
nagar).
The margin given to Retailers by DOCOMO is less
than the other competitors. So retailers try to convince
customer to buy competitors product. (Like photon give
50% & Idea gives on every 4 activation rs. 400 +
available.
Also it should work towards improvement of its after
sale service. Main complain of retailers towards
Page | 111
Recommendation:
•
Page | 112
•
Additional Suggestions:
•
&
karvenagar
where
connections
are
Page | 113
Bibliography
Page | 114
The Content has been collected from the following sites
and webpage:
www.punediary.com
www.google.com
www.classifields.com
www.sulekha.com
www.justdial.com
www.managementparadise.com
www.knowyourcity.com
www.tatadocomo.com
www.scribd.com
Page | 115
ANNEXURE
Page | 116
QUESTIONNAIRE
Respondent’s Details
Name:
Name:
Store
Address:
code:
Pin
Mode of Business:
Signature:
Contact Number:
Page | 117
1) What are your Monthly sales of data card:
a) 0-10
b) 10-20
c) More Than 20
a) 0-10
b) 10-20
c) More Than 20
Page | 118
………………………………………………………………
…
(a) YES
(b) NO
(a) SMS
(b) DSE
(c) Posters
(d) Calls
Page | 119
9) In your opinion which brand do customers generally ask
for:
d) TATA DOCOMO
e) TATA PHOTON
f) IDEA
g) AIRTEL
e) RELIANCE
f) BSNL
g) VODAFONE
h) MTS
Page | 120